Mining 2026

PORTUGAL Trends and Developments Contributed by: Manuel Protásio and Catarina Coimbra, VdA

Introduction Portugal’s mining sector is experiencing a period of profound transformation, shaped by domestic policy changes and broader European strategic initiatives. 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. The Mina do Barroso Project Savannah’s Mina do Barroso project, located in north - ern Portugal, is a clear example of this trend. Classi - fied as a “Strategic Project” under the EU’s Critical Raw Materials Act, the Barroso deposit constitutes the largest spodumene lithium resource on the Euro - pean continent, with reserves exceeding 39 million tonnes, according to the company. With a conditional favourable Environmental Impact Declaration (EID) issued in 2023 and the investment contract now secured, the company is maintaining its timeline that points to construction starting in 2026 and production in 2028, and expects to make a final investment decision on the project later this year. Once operational, Savannah states that the project will produce enough lithium for approximately half a million vehicle battery packs annually. While the sector offers new opportunities, complex challenges remain, particularly regarding environmen - tal protection and public contestation. Popular and environmental challenges are now a central reality for the Portuguese mining sector. Across the country, communities are increasingly vocal about perceived risks, especially those confronting lithium projects. Many in the region around Mina do Barroso worry that mining will disrupt traditional ways of life. Agriculture and rural tourism are vital to the local economy, and

residents fear loss of natural landscapes, biodiversity and water quality. In Boticas and neighbouring areas, local groups, NGOs and environmental coalitions have mobilised to object to the project. This opposition has taken several forms, including public protests, media campaigns and legal actions questioning the adequa - cy of environmental studies and licensing procedures. This scenario is not unique. Similar disputes have arisen in Montalegre, where opposition has delayed projects involving tungsten and lithium, and in Covas do Barroso, where community efforts led to stricter environmental scrutiny. The lesson is clear: transpar - ent processes and tangible local benefits are vital for mining projects to advance. Key Changes As these projects are moving forward, it is expected that both national and European legislation will be adapted to address the challenges of this growing industry. Portuguese legislation for the mining sec - tor has also seen significant changes in recent years with the enactment of a new and more efficient legal and institutional framework, introducing substantial modifications to the regulation of mining rights and the extractive industry sector in general. Such changes relate to the following in particular: • the distribution of exploitation benefits (ie, royalties) between the State, municipalities and local popula - tions; • the possibility of having the relevant concession agreement imposing that minerals be processed on national territory; • more demanding environmental sustainability regulations (in compliance with “green mining” standards); • the recognition of the wider inspection powers of the regulatory agency; and • the promotion of public participation/consultation in the awarding procedures for the granting of min - ing rights. In terms of institutional support, the Portuguese gov - ernment has taken concrete steps to support the development of the lithium value chain by awarding public grants to flagship projects.

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