Savannah Resources Secures Three Community Benefit Sharing Agreements for Europe’s Largest Lithium Project
Savannah Resources Plc has announced the signing of three benefit sharing agreements with local communities for its flagship Barroso Lithium Project in northern Portugal, marking a major milestone in stakeholder engagement and regional development. These agreements formalize long-term partnerships with communal land management groups (known as “baldios”) and reinforce the project’s status as a Strategic Project under the European Critical Raw Materials Act.
Overview of the Barroso Lithium Project
Strategic Importance and Scale
The Barroso Lithium Project is Europe’s largest spodumene lithium deposit, with resources exceeding 39 million tonnes, positioning it as a cornerstone of the EU’s lithium independence strategy. Located in northern Portugal, the project has received up to €110 million in non-reimbursable state support from the Portuguese government through AICEP, underscoring its national and European strategic significance.
Project Development Status
Savannah Resources has advanced the project through multiple feasibility stages, with a Phase 1 Definitive Feasibility Study (DFS) completed in mid-2026 confirming strong economics and global competitiveness. The project is being developed on industrial pine tree and abandoned scrubland, requiring no community relocation, and is progressing through permitting and land access processes.
Details of the Three Benefit Sharing Agreements
Agreement Structure and Purpose
The three newly signed benefit sharing agreements are designed to ensure transparent and equitable distribution of socio-economic benefits from the Barroso Lithium Project to neighbouring communities. These agreements are part of Savannah’s broader Benefit Sharing Plan and Good Neighbour Plan, which aim to create lasting value for local stakeholders throughout the project’s lifecycle.
Key Provisions and Benefits
Under the terms of the agreements, Savannah Resources commits to:
- Annual Community Foundation Funding: A minimum of €500,000 per year will be allocated to the Barroso Lithium Foundation once the project enters production, supporting local development initiatives.
- Local Advisory and Monitoring Committee: Community representatives will participate in governance structures to oversee social monitoring and fund allocation.
- Preferential Local Procurement: Priority will be given to local businesses and producers for goods and services, fostering regional economic growth.
- Support for Cultural and Environmental Heritage: Initiatives will include backing for Barroso’s GIAHS (Globally Important Agricultural Heritage Systems) status, ethnographic studies, and breeding programmes for local cattle and pigs.
- Job Creation: The project is expected to create over 200 direct jobs, with preferential hiring from local communities.
Communities Involved
While Savannah has not publicly named all three baldios communities in the latest announcement, previous disclosures confirm agreements with Canedo and Dornelas baldios, with a third community now added to the framework. These communal land groups manage shared territories and play a vital role in regional land use and cultural preservation.
Broader Stakeholder Engagement Strategy
Memorandums of Understanding (MoUs)
In addition to the three benefit sharing agreements, Savannah Resources has signed ten MoUs with local stakeholder groups, including recreational, hunting, and health associations. These MoUs formalize community participation in the Local Advisory and Monitoring Committee and reflect growing local support for the project.
Land Access and Acquisition Progress
Savannah has secured temporary land access orders for geotechnical fieldwork and drilling, and continues to pursue friendly land purchase agreements with private owners. The company has already purchased over 100 plots and is initiating compulsory acquisition processes where necessary, always prioritizing negotiated settlements.
Economic and Social Impact on the Region
Long-Term Regional Development
The Benefit Sharing Plan is structured to deliver sustained socio-economic benefits, including:
- Infrastructure Improvements: Upgrades to transport, health, and educational assets shared with communities.
- Support for Traditional Livelihoods: Training and promotion of agroforestry, pastoral systems, and local craftsmanship.
- Environmental Stewardship: Funding for fire prevention, water storage facilities, and heritage conservation.
Alignment with EU Critical Minerals Strategy
As a designated Strategic Project under the European Critical Raw Materials Act, Barroso is central to reducing EU dependence on imported lithium, particularly for electric vehicle batteries and renewable energy storage. The benefit sharing model sets a benchmark for responsible mineral development in Europe.
Company Statements and Leadership Commitment
Emanuel Proença, CEO of Savannah Resources, emphasized the company’s commitment to integrity, transparency, and shared prosperity: “Our commitment to our communities and stakeholders is to act with integrity, transparency and honesty at all times, and to share with them the socio-economic benefits that responsible mineral resource production can bring.”
The signing of these three agreements demonstrates Savannah’s proactive approach to community partnership and long-term value creation, aligning commercial success with regional well-being.
Frequently Asked Questions (FAQ)
What are benefit sharing agreements?
Benefit sharing agreements are formal contracts between Savannah Resources and local communal land groups (baldios) that outline how economic, social, and environmental benefits from the Barroso Lithium Project will be distributed to communities.
How much funding will communities receive?
Once the project is operational, the Barroso Lithium Foundation will receive a minimum of €500,000 annually to fund local development projects selected by a committee including community representatives.
Which communities have signed agreements?
Savannah has confirmed agreements with Canedo and Dornelas baldios, with a third communal land group now added. The company continues to engage with additional stakeholders across the Boticas and Ribeira de Pena municipalities.
Will the project create local jobs?
Yes, the Barroso Lithium Project is expected to create over 200 direct jobs, with preferential hiring from neighbouring villages and support for local skills training.
How does this project support EU lithium independence?
Barroso is Europe’s largest spodumene lithium deposit and a designated Strategic Project under the European Critical Raw Materials Act, reducing reliance on imports from outside the EU for battery and clean energy supply chains.
What is the Good Neighbour Plan?
The Good Neighbour Plan complements the Benefit Sharing Plan by addressing local impacts, including compensation for land use, noise, and traffic, ensuring communities are fairly treated throughout construction and operation.
When will the project start production?
Savannah is advancing permitting, land access, and feasibility work, with production targeted for the late 2020s, subject to regulatory approvals and final investment decisions.
This article is based on publicly available announcements and reports from Savannah Resources Plc and related sources as of August 2026.
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