UK-based Savannah Resources has temporarily suspended prospecting activities at certain sites of its Barroso Lithium Project in northern Portugal.

The decision follows a “precautionary measure” filed by three local landowners, challenging the Portuguese Ministry for the Environment & Energy's decision to grant Savannah access to land for its feasibility study and environmental licensing.

The injunction, issued by the Administrative and Fiscal Court of Mirandela, specifically targets land not owned by Savannah. It effectively reverses the government's authorisation from December, which allowed the company to access private land for further prospecting.

In response, Savannah has halted work on the affected land, securing all areas and equipment, while continuing operations on land it either owns or has the right to access.

Savannah's legal advisers are contesting the measure, which they believe is without merit, and anticipate a resumption of work soon.

The company has stated that the Barroso spodumene deposit is Europe's most “significant”, with recent findings suggesting a larger deposit than the initial 28 million tonne (mt) estimate, reported Reuters.

Commercial production is set to begin in 2027, with the project requiring approximately 840 hectares (ha) for its four-mine plan.

Private owners hold around 24% of the land needed for the project, with communal land making up the remaining 75%.

Savannah had been granted access to more than 520ha of non-owned land for a year. The Barroso Lithium Project, wholly owned by Savannah, is expected to contribute to the EU's goal of reducing reliance on imports for strategic raw materials.

AMG Critical Materials, Savannah's strategic partner and largest shareholder, supports the project's development.