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(Sharecast News) - Savannah Resources welcomed further details of the European Commission's RESourceEU Action Plan on Friday, saying the measures could accelerate funding, permitting and market support for critical raw materials projects such as its Barroso lithium development in Portugal.
The AIM-traded company said the plan built on the Critical Raw Materials Act and included proposals to mobilise up to 3bn over the next 12 months to support projects capable of providing alternative supplies in the near term, alongside financial de-risking tools and the removal of regulatory bottlenecks to fast-track EU-relevant strategic projects.
Savannah's Barroso project had already been designated a 'Strategic Project' under the Act, and is Europe's largest spodumene lithium deposit.
Under the Action Plan, the Commission aimed to reduce EU dependencies on critical raw materials by up to 50% by 2029, establish a European Critical Raw Material Centre in early 2026 to provide market intelligence and finance strategic projects, and create a Raw Materials Platform to help downstream companies aggregate demand, jointly purchase materials and secure offtake agreements.
The Commission was also proposing amendments to the Act to stimulate diversification in supply chains and, where necessary, make diversification mandatory for large operators.
Savannah chief executive Emanuel Proenca said the company was encouraged by the Commission's direction and believed it was well placed to contribute.
"It's good to see the further steps that the European Commission is going to take to ensure the availability of critical raw materials, such as lithium, for the region's key industries and to support its greater energy independence," he said.
"As the owner of a 'Strategic Project' within the EU, which can responsibly supply lithium raw material at scale, Savannah agrees that further action is required and stands ready to play its part in this new Action Plan."
Proenca added that Savannah would continue engaging with European institutions to ensure its role is recognised and that it benefits from available support.
"We will maintain our engagement with the key actors within the relevant European bodies to ensure that Savannah's potential to contribute is fully recognised and that all support available through this initiative is received," he said.
At 1330 GMT, shares in Savannah Resources were down 1.41% at 3.5p.
Reporting by Josh White for Sharecast.com.