Name of the Project
Barroso lithium project.

Location
Near Boticas, northern Portugal.

Project Owner/s
Lithium mineral resource project developer Savannah Resources.

Project Description
The Barroso project comprises five main deposits: Grandao, Reservatorio, Pinheiro, NOA and Aldeia.

A scoping study completed in June 2023 has reconfirmed the project’s potential to be a major European producer of spodumene concentrate. It is based on a mine- and concentrator-only development for the production of spodumene concentrate.

Over the estimated 14-year life-of-mine (LoM), the project will have a throughput of about 1.5-million tonnes a year. 

The project’s flowsheet, which has been designed and tested to feasibility study requirements, combines dense-media separation (DMS) and a flotation circuit using environmentally friendly reagents to produce a 5.5% lithium oxide (Li₂O) grade spodumene concentrate. Over the LoM, the scoping study shows the processing plant producing 2.6-million tonnes of 5.5% Li₂O grade spodumene concentrate at an average production rate of about 191 000 t/y.

The processing of ore to produce concentrates will comprise crushing and reclaim, primary comminution and classification, DMS, a flotation preparation circuit, a mica flotation circuit, a spodumene flotation circuit, concentrate and tailings dewatering and storage, as well as water circuits and services.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $953-million and an internal rate of return of 77%, with a payback of 1.3 years.

Capital Expenditure
Initial capital expenditure is estimated at $236-million.

Planned Start/End Date
Commissioning and first production are expected to start in mid-2027.

Latest Developments
Savannah Resources has been awarded a nonreimbursable grant of up to about €110-million from the Portuguese State to support construction of the Barroso project, which has been designated as a strategic project under the European Critical Raw Materials Act.

The funding represents a major public contribution, which the company describes as Europe’s largest known spodumene lithium deposit, and reflects support for the development of a domestic lithium supply chain linked to the transition to a net-zero economy.

The grant will be provided under Portugal’s Investments in Strategic Sectors Incentive Scheme, within the contractual investment regime for large-scale projects considered important to carbon neutrality and economic transition. The funding is supported by national resources and the European Commission’s Temporary Crisis and Transition Framework.

The grant totals up to about €110-million and comprises two components: an estimated €82.25-million (about 75%) earmarked for the project’s initial capital expenditure (capex), and about €27.42-million (about 25%) linked to operational performance milestones. Savannah has said the funding does not need to be repaid.

The award will be formalised through an investment agreement with the Portuguese Trade and Investment Agency (AICEP), following approval by the managing authority of the Innovation and Digital Transition Programme (Compete) 2030 and the Ministry of Economy and Territorial Cohesion. The grant remains subject to certain conditions and timelines before funds are released.

Following the signature of the investment contract, Savannah has said it will work with the AICEP to integrate the grant into its broader financing plan, alongside potential future project funding. Drawdown from the first tranche is expected to coincide with the initial capital development phase.

Savannah CEO Emanuel Proenca has said the grant marks an important milestone for Savannah and will make a significant contribution towards project capex, as the company targets first production from 2028. He has indicated that the project is expected to deliver social and economic benefits, including new industry development, job creation in the Barroso region, and a domestic source of responsibly produced lithium to support Europe’s energy transition.

The grant strengthens the project’s financial position as Savannah works towards a final investment decision expected later this year. Savannah has already advanced key elements of a potential financing package and will continue work on additional components, including debt financing and partnerships.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Savannah Resources, David Archer, tel +44 20 7117 2489.