The Government decided to proceed with financial support of 110 million euros to the British company Savannah Resources for the lithium exploration project in the municipality of Boticas, in Trás-os-Montes. The measure is non-refundable and generated political, social and environmental controversy, with criticism from mayors and environmental associations.
According to the newspaper Diário do Distrito, the financing will be delivered in two phases: around 82.2 million euros correspond to the initial expenses of the project and the remaining 27.4 million depend on the achievement of performance targets during the operational phase.
Reaction from the local authority
The president of Boticas City Council, Guilherme Pires, stated that there was no prior clarification to the population or local entities, considering the measure institutional disrespect.
The mayor also highlights to the same publication that the project is presented as a given, despite the fact that there is still no definitive approval, generating uncertainty among the community.
Environmental concerns
According to the same source, the environmental association Zero warned of what it considers to be a transfer of risks and costs to taxpayers, designating the situation as a “triple bill”: the direct subsidy to the company, the risk of project failure and the potentially irreversible environmental, social and economic impacts.
The newspaper writes that the criticism also includes the threat to the region’s World Agricultural Heritage status, which, according to the mayor, could be compromised by mining exploration.
Public fears
Among the local population, discontent is growing over the use of public money to support a private project, with fears of destruction of natural and agricultural heritage. According to the same source, many inhabitants question the real benefits for the community and express doubts about the effectiveness of an investment of this type, given the high environmental risk associated.
According to , the 110 million euros will be distributed in phases, with 75% of the amount allocated to the initial phases of the project’s development and 25% conditional on meeting targets during exploration.
The publication adds that the Government’s decision does not provide for reimbursement, which means that the costs assumed by taxpayers are not guaranteed to be returned, even if the project does not materialize or generates negative impacts.
The measure is part of a broader framework of incentives for mineral resource exploration projects, but the lack of prior communication with the municipality and the population increased local protest. The newspaper explains that this decision highlights the conflict between the national economic development strategy and the preservation of the agricultural and environmental heritage of the municipality of Boticas.
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