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Portugal plans to hold delayed lithium tender in 2025
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Portugal plans to hold delayed lithium tender in 2025
Dec 3, 2024 1:00 PM

LISBON, Dec 3 (Reuters) - Portugal's government plans to

launch a long-delayed tender of lithium prospecting licenses in

2025 as it seeks to make the country a top European supplier of

critical metals for the green transition, it said on Tuesday.

The center-right government, which took over in April, said

that the international tender for lithium prospecting will

target six areas in the north and center of the country.

The previous Socialist administration initially planned an

auction in 2018 but concerns about the environmental and social

impact of lithium mining have led to multiple delays to the

auction.

Environment Minister Maria da Graca Carvalho said that the

tender is part of Portugal's plans to meet Europe's goals to

ensure greater security and reduce dependence on imports of

critical materials from countries such as China.

"Our intention is to move forward with the tender in 2025,"

she told journalists, adding that the government wants to speed

up the licensing processes for projects, "but will be demanding

in assessing the environmental impacts."

With some 60,000 tonnes of known reserves, Portugal is

Europe's biggest lithium producer but its miners sell almost

exclusively to the ceramics industry and are only now preparing

to produce the higher-grade lithium for use in electric

vehicles.

Portugal's environmental agency APA has already given its

initial approval to lithium extraction at the Barroso mine,

owned by London-based company Savannah Resources, and at the

Montalegre mine of the local firm Lusorecursos, both in the

north of the country.

The start of exploration in both mines is scheduled for 2027

as they still need licensing authorizations for the concrete

projects.

Lithium miners around the globe are struggling with low

prices for this ore, which have fallen by more than 45%

so far this year, largely due to overproduction from China and a

drop in demand for EVs.

China supplies two-thirds of processed lithium globally and,

according to International Energy Agency data, it has also taken

a huge lead in powering EVs, controlling 85% of global battery

cell production.

Carvalho also said that the government intends to launch

tenders for new copper and gold prospecting licenses next year.

Portugal already has the sixth-largest copper mine in

Europe, operated by Toronto-based Lundin Mining ( LUNMF ). It had

stopped actively exploring for gold more than 30 years ago.

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