PORTUGAL Law and Practice Contributed by: Manuel Protásio and Catarina Coimbra, VdA
mining sector. However, as a member state of the EU, Portugal benefits from a range of treaties and agree - ments that the EU has established with global part - ners. These agreements collectively provide a favour - able and protective environment for investments, including those in the exploration and mining sectors. 5.4 Sources of Finance for Exploration, Development and Mining In Portugal, there are no specific or distinct sources of finance exclusively dedicated to the development of mining activities. Instead, mining projects typically rely on general financial mechanisms available within Portugal and internationally. These include: • standard equity financing through stock markets and private investors; Additionally, companies may access funding from institutional investors, EU programmes and general project financing methods. 5.5 Role of Domestic and International Securities Markets in the Financing of Exploration, Development and Mining In Portugal, both domestic and international securi - ties markets play crucial roles in financing exploration, development and mining activities. • debt financing from banks and bonds; • government grants and subsidies; and • strategic partnerships or joint ventures. Domestic markets allow mining companies to raise funds through shares and bonds, offering access to local capital and ensuring compliance with national regulations. These markets enhance liquidity, broaden the investor base and provide localised expertise. International markets offer access to substantial glob - al capital, diversify investor risk, and enhance com - pany visibility and credibility. 5.6 Security Over Mining Tenements and Related Assets In accordance with the Geological Resources Law, the creation of mortgages (in rem security) is only authorised over rights arising from a concession for exploitation – and over the physical facilities created
for support of mining activities – as security of credits/ loans for the exploitation works, and must be previ - ously communicated to the DGEG. The enforcement of mortgages must follow the rules of the Code of Tax Procedure and Proceedings and of the Civil Procedure Code until the moment of auc - tion, which must be executed by the DGEG through public tender. 6. Mining: Outlook and Trends 6.1 Two-Year Forecast for the Mining Sector One of the most prominent trends in the Portuguese mining sector – which is likely to continue for the next couple of years – is the interest in lithium exploration and other activities in the lithium value chain. In fact, in addition to the projects under development for the massive exploitation of lithium reserves, several initia - tives aim to establish lithium conversion plants. The development of downstream lithium processing facili - ties is crucial for adding value to raw lithium resourc - es, and support for the EU’s goals for a sustainable battery supply chain in Europe and Portugal is making strides in this direction. Portugal’s strategic reserves of important minerals (such as lithium and tungsten) not only support its mining industry but are also increasingly important for the defence sector. This growing significance is due to the fact that both Portugal and Europe as a whole face mounting challenges regarding the supply of critical raw materials, which are essential for modern defence technologies. Recognising these challenges, the EU has highlighted the need to secure the entire value chain of vital miner - als for defence and digital industries, notably through policies such as the EU’s CRMA. To address these strategic priorities, the European Defence Fund (EDF) was established as a key EU initiative to foster inno - vation and strengthen integration within the European defence industry. In particular, one of the main goals of the EDF is to accelerate the development and deployment of criti - cal technologies necessary for Europe’s security and
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