TIDMSAV
RNS Number : 9389T
Savannah Resources PLC
23 March 2023
23 March 2023
Savannah Resources Plc
(AIM: SAV, FWB: SAV and SWB: SAV) ('Savannah', or the
'Company')
Barroso Lithium Project EIA Update
Documentation made public & start of public consultation
period
Savannah Resources, the European lithium development company, is
pleased to report that Agência Portuguesa do Ambiente ('APA') has
now made public for consultation the revised Barroso Lithium
Project (the 'Project') Environmental Report (the 'Report'), Mine
Plan ('MP') and associated documents on its website. With the
information now public, Savannah is pleased to provide the
following summary on the Project as outlined in those documents and
highlight the elements of the optimised design and operation and
the associated socio-economic impacts and proposals, which Savannah
believes address the concerns raised by APA, other authorities
represented on the Assessment Committee, local authorities and
local communities.
Highlights:
-- The Project Environmental Report, Mine Plan and associated
documents are now publicly available on the APA website,
https://participa.pt/pt/consulta/alteracao-ao-projeto-de-ampliacao-da-mina-do-barroso.
-- Publication of the documents initiates the public
consultation period which will end on 4 April 2023
-- Project production parameters: Remain similar to the 2020
Mine Plan with an operating phase of 12 years; mineable material
17.34Mt; average ore mining and processing rate maintained at
approximately 1.5Mt/year producing approximately 200,000t/year of
spodumene concentrate; total Project duration of 17 years including
construction, rehabilitation and closure
-- Among hundreds of measures to remove, minimise or mitigate
against its impact on the environment and local communities, the
optimisations made to the Project's design address the feedback
received from stakeholders regarding management of water resources,
layout of Project-related infrastructure, ecology and landscape
impacts, and socio-economic considerations (see additional
information section for further details)
Next steps
-- The public consultation period on the submission as managed
by APA will continue until 4 April 2023
-- Submission of the documents by Savannah last week initiated
the 50-business day assessment period available to APA. The
deadline for the notice of APA's Environmental Impact Statement
('DIA') is confirmed as 31 May 2023
-- If APA reaches a positive DIA:
o Savannah expects the decision to set certain design and
operating conditions for the Project
o Savannah expects to be given 10 business days to consider the
conditions set in the proposed decision
o If Savannah accepts the conditions set in the decision, the
environmental licensing process could then continue alongside the
work on the Project's Definitive Feasibility Study. Savannah would
expect the Project to receive its Environmental License in 2024
-- Savannah will continue with its the series of in-person
Project-related meetings with local groups and the wider community
which it initiated before the submission of the EIA
-- With the documentation now published by APA, Savannah will
also be issuing further supporting materials to assist all
stakeholders to understand the key elements of the Project. This
will include:
o A summary Community Information Sheet which will be posted to
all households in the Boticas Municipality and made available at
our Information Centres and on the new 'Our Community' page on the
Company's website
o A series of Fact Sheets on the key individual elements of the
Project's design and Savannah's plans. These will be available on
the 'Our Community' page on the Company's website and in hardcopy
from the Information Centres
o New corporate videos and presentations, available on the
Company's website
-- Project Scoping Study: Assuming APA issues a favourable
Environmental Impact Statement after the current review period,
Savannah will publish a new Scoping Study based on the revised
Project design submitted to APA which incorporates current
consensus spodumene concentrate price forecasts. Savannah would
expect to publish this Study in early H2 2023.
To view the full press release including any maps, figures or
tables, please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/9389T_1-2023-3-23.pdf
Dale Ferguson, CEO of Savannah said, "Savannah welcomes APA's
decision to make publicly available for consultation the recently
submitted Barroso Lithium Project Environmental Report and Mine
Plan, and the initiation of the public consultation period.
"We believe the revisions we have made address the key points
highlighted to us about finding ways to further reduce the
Project's impact on the natural environment and the local
population, while also creating socio-economic benefits that can be
shared locally and at a national level.
"To complement the public consultation, we will be continuing to
engage directly with local stakeholders to provide further details
on the new design of the Project and to answer any questions they
may have. We are looking forward to further engagement. We have
also produced additional material in the form of Information
Sheets, Fact Sheets and videos, which are intended to further
summarise the key points about the Project. These items will be
added to our website and made available at our Information Centres
over the coming days.
"We are also announcing today our intention to publish an
updated Scoping Study on the Project early in the second half of
the year. Much has changed about the Project in the five years
since we published the initial Scoping Study and, if the Project
does benefit from a favourable Environmental Impact Statement from
APA, it would seem like an opportune moment to give fresh guidance
on the operating and economic potential of the Project in today's
lithium market."
Additional information
Key design features in relation to water resources, layout of
Project-related infrastructure, ecology and landscape impacts,
socio-economic considerations and other matters include:
-- Water:
o Supply: The Project will source all its own water onsite.
Water will be predominately collected in the mining areas as well
as from other surface sources. Water will not need to be abstracted
from the Covas River
o Water quality: The Project will have a 'closed' water system,
meaning process water will be stored, treated and recycled onsite
and not be discharged from the Project
o Water consumption: The Project's consumption will equate to
0.6% of the water present in the catchment area of the Covas River
and hence it will have a very limited impact on the local aquatic
ecosystem
-- Infrastructure:
o A new road layout avoids all Project-related traffic passing
through local villages and towns and requires just one new bridge
(onsite) to reduce impact on local rivers and riverbank ecosystems;
offsite Project-related traffic will be restricted to weekdays
only
o New roads will significantly improve public access to the
region benefiting economic growth and freedom of movement
o The revised site layout reduces environmental and visual
impact as well as noise and light emissions by moving site
infrastructure, such as the processing plant, further from
watercourses and local communities and keeping development heights
below the relevant ridge lines
-- Ecology:
o The water management plan and level of water consumption means
the impact on rivers and the aquatic ecosystem is minimised
o Iberian wolf: Independent studies show wolf packs are not
living on the Project area and mitigation measures have been put in
place to protect wildlife
o Impact on oak groves and meadows is further reduced in the
latest Project layout
o Topsoil and compost removed from working areas will be stored
and protected and used in the Project's rehabilitation phase
o Revegetation to utilise native species and other suitable
plants with good pollination characteristics
-- Landscape & Rehabilitation:
o Rehabilitation of the Project is guaranteed. It will be a
requirement of the Project's environmental licence and Savannah is
required to lodge a rehabilitation bond (cash) with the government
before any work can commence
o Less than half of the 593 hectares (5.93km(2) ) of the
expanded C-100 Mining Lease will be impacted by the Project with
'permanent impact' limited to 188 hectares (1.88km(2) ), or 21%
less than in the original project design
o Due the phased nature of the Project, rehabilitation can
commence during the operating phase including on 3 out of 4 mining
areas
o The impacted areas including all mining areas, tailings and
permanent waste rock storage facilities, and infrastructure such as
the processing plant and water storage facilities will be
comprehensively rehabilitated, landscaped and revegetated with
native species. Impacted water courses will be reinstated, as far
as practically possible, to their original locations. On closure
the land will be made available for alternative use such as
agriculture or tourism
o With reference to the Barroso region's classification as a
region with a Globally Important Agricultural Heritage System
('GIAHS') by the Food and Agriculture Organisation of the United
Nations, the concession area equates to 0.5% of the GIAHS area with
the total area permanently impacted less than 0.25% of the GIAHS.
The Project will impact 14 hectares (0.144km(2) ) of agricultural
land and pastures on the Concession, equivalent to 0.012% of the
GIAHS
-- Socio-economic factors:
o The Project will create over 200 long term direct jobs
o In the updated Economic & Social Impact study on the
Project, Professors Carballo-Cruz and João Cerejeira from NIPE -
Research Center in Economic and Business Policies of the School of
Economics and Management of the University of Minho estimate that
the Project will increase Portugal's gross value of national
production by EUR420m during the investment (construction) phase
and by EUR210m per year during the operating phase. They also
estimate that the Project's contribution to GDP is EUR173m in the
investment phase and EUR95m per year in the operating phase, and
that the Project will generate over 5,000 indirect and induced jobs
in the investment phase and over 2,500 in the operating phase
o The 'Social Issues Scoping Report', written by Community
Insights Group and incorporating the views of local people about
the project and Savannah, accompanied Savannah's revised EIA
submission to APA. Stakeholder views expressed in this report have
been used to shape the Project's revised design and will be used,
along with views expressed during Savannah's ongoing engagement
with local stakeholders as part of the overall Social Impact
Assessment, to finalise the elements to be captured in the proposed
Benefit Sharing Plan and Good Neighbour Plan. Precise details of
these Plans will be agreed with local stakeholders if the Project
progresses so that local communities benefit from the value created
by lithium production in their area in a sustainable way that is in
agreement with the needs of the community and local development
objectives. However, the Benefit Sharing Plan is likely to feature
a foundation which will invest income received from the Project in
community focused programs. The Good Neighbour Plan will be based
around the sharing of the Project's assets with the community, such
as the Project's medical clinic, and supporting local
producers.
-- Other mitigations & actions
o Noise and ground vibrations: Savannah is committed to
operating well below legal limits for noise and ground vibrations.
Onsite truck movements will be prohibited overnight
o Air quality: Dust is identified as the highest risk impact to
air quality which will be mitigated by treating unpaved roads with
water and using fog cannons used when haul trucks tip loads at the
processing plant.
o Processing plant waste ('tailings') storage facility ('TSF'):
The plant will produce inert tailings that will be stored
separately to waste rock in a highly stable 'dry stack' structure.
The Project will not use a traditional 'wet' tailings dam. For
additional environmental protection, the TSF will be built on a
waterproof lining and located at a safe distance from the Covas
River. The TSF will be revegetated progressively over the life of
Project
o Waste rock storage facilities: The waste rock from the mining
areas (also inert material) will be stored in 1 temporary structure
and 3 permanent structures, separate to the plant tailings and away
from water courses; rock from the temporary facilities will be used
in rehabilitation and landscaping while permanent waste rock
formations will be contoured into the existing landscape and
revegetated
o Transparent environmental reporting: Multiple environmental
indicators (air quality, noise levels, ground vibrations, and water
levels and water quality) will be monitored, in real time, through
a series of sensors distributed across the Project and surrounding
area. The data collected will be publicly reported through a
planned smartphone app, Savannah's website, our local Information
Centres and in other public places in the local area.
Figure 1: Key elements of the Barroso Lithium Project during the
operating phase
Figure 2: Barroso Lithium Project - final footprint following
rehabilitation
Background information:
Before providing its final Environmental Impact Statement
('DIA') on the Project, APA proposed in July 2022 that the EIA
evaluation process for the Barroso Lithium Project should continue
under Article 16 of Decree-Law No. 151-B/2013, amended and
republished by the Decree-law 152-B/2017 of 11 December ('Article
16'), which regulates Environmental Impact Assessments in Portugal.
Under Article 16, Savannah has up to 180 business days to redesign
or revise certain physical aspects of the Project's design and
associated environment, ecology and socio-economic considerations
and resubmit them to APA for consideration.
Savannah announced on 6 July 2022 that it had agreed to the EIA
review process entering this additional phase. On 16 March 2023,
the Company announced that it had made its resubmission to APA
ahead of the required deadline.
Following resubmission, APA has a maximum of 50 business days to
review the resubmission and provide its DIA.
Receipt of a positive DIA from APA, is regarded as the key
element in the Project's overall approval, but there are two
subsequent phases in the environmental licencing process.
A positive DIA defines a set of guidelines which must be
followed during the Project's development, operation, and closure.
During the subsequent Environmental Compliance Report of the
Execution Project ('RECAPE') phase of the environmental licencing
process, the Project proposer works with the regulator to ensure
that these guidelines are followed in the final design of the
Project as it is created. If the final design is approved by the
regulator, the Project receives a positive Decision on the
Environmental Compliance of the Execution Project ('DCAPE').
Running in parallel with the RECAPE process is the licencing
award process. Once the DCAPE declaration has been made the Project
can be awarded its final Environmental Licence, 'Título Único
Ambiental'.
Regulatory Information
This Announcement contains inside information for the purposes
of the UK version of the market abuse regulation (EU No. 596/2014)
as it forms part of United Kingdom domestic law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR").
Savannah - Enabling Europe's energy transition.
**ENDS**
Follow @SavannahRes on Twitter
Follow Savannah Resources on LinkedIn
For further information please visit www.savannahresources.com
or contact:
Savannah Resources PLC Tel: +44 20 7117 2489
Dale Ferguson, CEO
SP Angel Corporate Finance LLP (Nominated Tel: +44 20 3470 0470
Advisor & Joint Broker)
David Hignell/ Charlie Bouverat (Corporate
Finance)
Grant Barker/Abigail Wayne (Sales & Broking)
RBC Capital Markets (Joint Broker) Tel: +44 (0) 20 7653 4000
Farid Dadashev/ Jamil Miah
Camarco (Financial PR) Tel: +44 20 3757 4980
Gordon Poole/ Emily Hall / Fergus Young
About Savannah
Savannah is the owner of the Barroso Lithium Project, located
close to key infrastructure in Northern Portugal which contains the
most significant spodumene lithium resource in Western Europe.
Following a positive Scoping Study which outlined a conventional
operation producing 175,000t of spodumene concentrate per annum,
Savannah is progressing the development and environmental licencing
of the Barroso Lithium Project.
The Company is listed and regulated on AIM and the Company's
ordinary shares are also available on the Quotation Board of the
Frankfurt Stock Exchange (FWB) under the symbol FWB: SAV, and the
Börse Stuttgart (SWB) under the ticker "SAV".
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END
MSCNKNBPDBKKQNB
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March 23, 2023 03:00 ET (07:00 GMT)
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