A federal court in Teófilo Otoni, Minas Gerais has ordered the immediate suspension of the environmental licensing process for Project Anitta, a lithium mining venture owned by Atlas Lithium Brasil. The ruling blocked a meeting of the state environmental council CMI/COPAM, scheduled for August 29, until further judicial notice.
The decision came in response to a lawsuit by the N’Golo Federation of Quilombola Communities of Minas Gerais, which accused the state, the federal land agency INCRA, and the company of failing to conduct the mandatory free, prior and informed consultation with the quilombola communities of Giral, Malhada Preta, Água Branca and Santa Rita do Piauí, located just 5.5 kilometers from the project site.
ILO Convention 169
Federal judge Antônio Lúcio Túlio de Oliveira Barbosa ruled that consultation is mandatory under ILO Convention 169 and Brazil’s Interministerial Ordinance No. 60/2015, which presumes impacts on communities within 8 kilometers of a licensed project. He also highlighted contradictions in the company’s Environmental Impact Study (EIA), which denied proximity to communities but included maps showing the opposite. The absence of the required Quilombola Component Study (ECQ), mandated by INCRA, was also noted.
“The purpose of consultation is to influence the decision-making process, not merely ratify a decision already taken,” the judge wrote, adding that granting a license without this process would amount to an “irreparable violation” of territorial and cultural rights.
Lithium sector under pressure
The ruling has immediate repercussions for the critical minerals sector, particularly lithium, a strategic input for batteries and the global energy transition. Brazil has sought to position itself as a key supplier at a time of booming international demand. According to mining regulator ANM, Atlas holds 14 mining permits in Araçuaí, including five within the Chapada do Lagoão Environmental Protection Area (APA) and three overlapping quilombola territories.
The judge also ordered the State Attorney’s Office, the Federal Prosecutor’s Office, INCRA and Funai to be notified.
Atlas Lithium Corporation
Atlas Lithium Corporation (NASDAQ: ATLX), which fully controls Project Anitta, is headquartered in the United States. The company operates in Brazil’s Lithium Valley, where it holds about 308 km² in mineral rights for lithium. It also owns mineral rights for other critical metals, including nickel (222 km²), rare earths (122 km²), titanium (89 km²) and graphite (56 km²).
Atlas further controls 45% of Apollo Resources Corp. (iron) and about 28% of Jupiter Gold Corp. (OTCQB: JUPGF), focused on gold and quartzite.