Savannah Resources has completed a major programme of geotechnical and hydrogeological investigations at its Barroso lithium project in northern Portugal, advancing engineering preparations as the company moves towards environmental approval and a targeted final investment decision in early 2027.
The five-month investigation programme covered the project’s Eastern Block, where mining and processing operations are expected to be concentrated during the first eight years. A total of 276 investigation points were examined to provide geological, groundwater and foundation-design data for the proposed processing plant, water infrastructure, access roads and mine-waste facilities.
The completion of the fieldwork represents an important technical milestone as Savannah prepares to submit its RECAPE environmental compliance documentation to Portugal’s environmental regulator in early November. The submission is a key requirement for securing the remaining environmental authorisation before construction can begin.
Designated a Strategic Project under the EU Critical Raw Materials Act, Barroso also benefits from Portuguese government support of up to €110 million, highlighting its potential contribution to Europe’s domestic lithium supply chain.
Geotechnical investigations advance project engineering
The investigation programme included 189 geotechnical test pits, 32 boreholes for groundwater-monitoring piezometers and 30 geotechnical boreholes. Samples collected during the work were sent to certified laboratories for testing, with the results expected to support foundation design, earthworks planning and the assessment of construction materials.
The hydrogeological investigations will provide additional information for groundwater monitoring and water-management infrastructure. These studies are particularly important given the project’s planned open-pit mining operations, mineral-processing facilities, water-storage reservoirs and tailings infrastructure.
Geotechnical data will help determine ground-bearing capacity, slope stability, excavation conditions and the suitability of materials for civil engineering works. Groundwater assessments will support the evaluation of potential interactions between mining activities and surrounding water systems, helping inform monitoring arrangements and environmental safeguards.
The completed investigations reduce technical uncertainties ahead of detailed engineering and construction planning, although laboratory testing, design calculations and further technical reviews remain necessary before final construction documentation can be completed.
Savannah reported that approximately 30 external personnel and more than 40 company employees participated in the programme. Portuguese contractors supplied earthworks, vegetation clearance, drilling, occupational safety and security services, generating more than €500,000 in direct expenditure in the local economy.
Environmental compliance submission becomes the next priority
Savannah’s immediate priority is submitting the RECAPE documentation to the Portuguese Environment Agency (APA).
The Barroso project received a favourable but conditional Environmental Impact Statement in May 2023. The current regulatory process is intended to demonstrate that the detailed project design complies with the conditions established in that decision.
The documentation will address environmental and engineering requirements covering water management, infrastructure development and measures designed to mitigate potential impacts on nearby communities and ecosystems.
Savannah expects to submit the documentation during the first week of November. The applicable regulatory procedure provides for a 50-working-day assessment period, with the company anticipating a decision in the first quarter of 2027, depending on the progress of the review.
A favourable assessment would remove a significant regulatory obstacle, although additional permits and conditions may still need to be addressed before construction.
Environmental considerations remain particularly important because the project is located near communities in the Boticas municipality. Concerns over land use, water resources and the environmental consequences of large-scale mining have generated local opposition, with recent protests demonstrating that regulatory progress does not necessarily resolve community concerns.
Maintaining stakeholder engagement, meeting environmental requirements and securing the necessary land rights will therefore remain important factors in determining the project’s development schedule.
Sedgman progresses lithium processing plant design
Alongside permitting activities, Savannah is advancing front-end engineering and design (FEED) for the processing plant with Australian engineering contractor Sedgman, part of the CIMIC Group.
Sedgman received the engineering contract in October, building on its previous involvement in developing the project’s metallurgical flowsheet and definitive feasibility study.
The scope covers crushing, milling, dense media separation, flotation, dewatering, water systems and associated processing infrastructure. The objective is to refine the feasibility-study design and prepare engineering documentation for subsequent procurement and construction tendering.
The planned facility will process lithium-bearing pegmatite ore into spodumene concentrate, which can subsequently be converted into lithium chemicals for battery manufacturing.
According to the July 2026 definitive feasibility study, Barroso is designed to process approximately 1.5 million tonnes of ore annually, producing an average of 183,000 tonnes of spodumene concentrate per year with a minimum grade of 5.5% lithium oxide.
The development is based on a 20-million-tonne Probable Ore Reserve grading 0.99% lithium oxide, supporting an estimated mine life of 14 years.
Initial capital expenditure was estimated at approximately €375 million, including contingencies, based on the original US-dollar estimate and its late-October exchange-rate equivalent. These production and financial figures remain feasibility-study projections rather than achieved operating results.
€110 million government grant supports project financing
Portuguese government support represents an important component of Barroso’s proposed financing structure. The approved grant of up to €110 million is divided between approximately €82.5 million for initial development capital expenditure and a further €27.5 million linked to operational performance milestones.
Although the grant reduces Savannah’s external funding requirements, the company must still secure a substantial financing package before committing to construction.
Savannah has been engaging with shortlisted lenders and potential commercial partners, including discussions about a possible German government-backed loan guarantee associated with lithium offtake arrangements.
The company’s existing commercial relationship with AMG Critical Materials provides a potential route for future concentrate sales, while negotiations are continuing over an additional offtake agreement.
Financing discussions remain closely linked to environmental approval and engineering progress. Potential lenders will need greater certainty regarding capital expenditure, regulatory compliance, construction schedules, technical risks and future revenue arrangements.
The completed ground investigations strengthen this process by providing additional information for infrastructure design and cost estimates. However, neither the engineering milestone nor the government grant represents financial close or a final investment commitment.
Barroso targets a role in Europe’s lithium supply chain
The project forms part of broader European efforts to reduce dependence on imported critical raw materials and expand domestic extraction, processing and recycling capacity under the Critical Raw Materials Act.
Portugal’s hard-rock lithium resources give the country potential to become an important supplier to Europe’s developing battery-material industry. If Barroso reaches production, its spodumene concentrate could provide a significant domestic source of lithium feedstock for further chemical processing.
However, mining and concentrate production represent only the initial stages of the battery supply chain. Additional conversion capacity, commercial agreements and logistics infrastructure will be required to connect European lithium extraction with battery-material manufacturers.
The project’s long-term competitiveness will also depend on lithium prices, metallurgical recovery rates, construction expenditure and operating performance. While the definitive feasibility study indicates potentially attractive project economics, its forecasts remain exposed to market conditions and development risks.
Final investment decision targeted for early 2027
Savannah continues to target a final investment decision in early 2027, with construction planned for later that year and commissioning and first spodumene concentrate production expected in late 2028.
Achieving these milestones will depend on securing environmental authorisation, completing engineering work, finalising financing arrangements and advancing commercial agreements and construction preparations.
The completed geotechnical and hydrogeological investigations provide an important technical foundation for the next development phase. Environmental approval and financing remain the principal conditions for moving Barroso from project development into construction.
The outcome will also be significant for Europe’s wider critical minerals strategy, as the project demonstrates the challenges involved in converting strategic lithium resources, government support and feasibility-study projections into fully financed industrial production.
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