Savannah Resources has launched front-end engineering and design (FEED) work and long-lead equipment procurement for its Barroso lithium project in Portugal, advancing preparations for a potential construction decision at one of Europe’s major planned hard-rock lithium developments. Engineering group Sedgman has been appointed to lead an eight-month FEED programme covering process optimisation, detailed engineering and procurement planning. The work is intended to move the project towards construction readiness while establishing equipment requirements and delivery schedules.
A central part of the programme involves managing 13 critical long-lead equipment packages. Savannah plans to secure procurement schedules ahead of completing full project financing and obtaining construction approval.
Funding for Engineering and Equipment Orders
Initial equipment down-payments are expected to be covered by approximately US$53 million in cash and short-term treasury reserves. The available funds follow Savannah’s recent US$40 million capital raise, providing liquidity to advance engineering and procurement without an immediate return to equity markets. The company is also planning to increase its workforce by around 30 employees, representing an approximately 75% rise in staff numbers as technical work and project execution activities expand. Beginning procurement before full construction approval could shorten the eventual development schedule. It also increases capital exposure if permitting or financing is delayed.
Planned Lithium Concentrate Production and EU Status
Barroso is designed to produce approximately 183,000 tonnes of spodumene concentrate annually. The project has been designated a Strategic Project under the EU Critical Raw Materials Act and has secured potential support from the Portuguese government of up to €110 million. These measures provide a policy and potential financing framework for the development, but do not replace the need to complete permitting, secure project financing and reach a final investment decision.
Permitting and Financing Milestones
Savannah is targeting the start of construction in 2027. Before that stage, the company must advance several key workstreams, including submission of RECAPE environmental documentation, securing conditional project-finance proposals and completing a second long-term offtake agreement. The FEED programme and procurement planning are intended to establish the engineering and equipment basis for the development. The project’s progression into construction will nevertheless depend on the completion of outstanding environmental documentation, financing arrangements and the final investment decision. Barroso has a defined resource, processing concept and planned production profile. Savannah’s current programme is focused on progressing engineering, equipment procurement and the remaining project requirements ahead of its targeted construction start.
