In a strategic move, Dutch miner AMG has acquired a 15.77% stake in London-based Savannah Resources, becoming the largest shareholder in the company. Savannah Resources is known for its development of a lithium projectin northern Portugal. This acquisition, valued at £16 million, was announced on Thursday by both companies.
Emanuel Proenca, CEO of Savannah, highlighted the investment as a “huge de-risking step” for the company. He praised AMG as the “ideal partner” due to its established lithium business that caters to Europe’s battery and electric vehicle (EV) sector.
The project, however, has not been without controversy. It has encountered significant opposition from local residents and environmentalists. Despite these challenges, it is seen as a crucial test for the European Union’s strategy to reduce dependency on countries like China for essential raw materials.
Savannah plans to construct four open-pit lithium mines in the Barroso region, with an aim to produce enough lithium annually to power approximately half a million EV batteries. The company is targeting the commencement of production by 2026.
In addition to the stake acquisition, AMG and Savannah have agreed to explore the feasibility of building a refinery in Portugal or Spain. This refinery would process spodumene into lithium carbonate.
As part of the deal, AMG will gain a seat on Savannah’s board of directors and secure a five-year offtake agreement for 45,000 t/y of spodumene, with an option to extend this to 90,000 t over ten years.
