The Portuguese Environment Agency has granted a favorable environmental impact declaration for Allied Critical Metals Inc.’s Borralha tungsten project, clearing a major regulatory barrier for the wholly owned operation in Montalegre, northern Portugal. The approval, issued on January 12, removes a significant hurdle and positions the company to advance toward subsequent permitting phases and detailed engineering, contingent on meeting all Portuguese regulatory requirements.
The environmental clearance validates the technical quality and environmental stewardship of the project. It allows Allied Critical Metals to move forward with additional permitting and engineering work while fulfilling ongoing environmental compliance obligations before entering subsequent licensing stages under Portuguese mining and environmental legislation.
The Borralha project incorporates modern underground mining operations designed to minimize surface disruption. Engineering plans include closed-loop water recycling, filtered dry-stacked tailings management, and continuous environmental monitoring. Rehabilitation of historical mine waste is a key component, aimed at protecting water resources, biological ecosystems, and cultural heritage sites. These specifications align with the European Union’s Critical Raw Materials Act, contributing to efforts to diversify supply chains for strategically vital minerals within Europe. The environmental impact assessment evaluated potential environmental, social, and cultural effects and detailed mitigation and monitoring measures across all project phases.
According to a Streetwise Reports article published on January 13, 2026, Allied Critical Metals announced that the Portuguese Environment Agency had granted a favorable environmental impact declaration for the Borralha tungsten project Streetwise Reports. This independent reporting confirms the official nature of the environmental approval.
The project’s resource estimate, updated in December 2025, details 13 million tonnes in the measured and indicated resource category with an average concentration of 0.21% tungsten trioxide (WO3). An additional 7.7 million tonnes fall within the inferred resource category, averaging 0.18% WO3. The reported tonnages and grades translate to roughly 27,300 tonnes of contained WO3 in the measured and indicated category; conversions to “metric ton units” depend on the definition used and were not consistently supported. The resource remains open in multiple directions, indicating potential for further expansion.
A Preliminary Economic Assessment, utilizing these updated resource figures, is scheduled for the first quarter of 2026. The planned mining methodology involves long-hole stoping, based on a cutoff grade of 0.09% WO3. Initial metallurgical testing suggests that low-cost processing using gravity flow methods can achieve recovery rates of 75–85%. There is also potential for the recovery of byproducts such as copper, tin, and silver, which could provide additional economic credits. The company is targeting the completion of an industrial-scale processing facility by the end of 2027.
Tungsten’s unique properties—exceptional corrosion resistance and the highest melting point of any metal—make it indispensable for critical defense applications, ranging from radiation shielding and armor-piercing ammunition to protective systems and heat management in advanced electronics. Recent geopolitical events have underscored these supply vulnerabilities. China’s imposition of export restrictions on tungsten-related products to Japan in January 2026 highlighted existing supply chain weaknesses, particularly significant given that the United States currently operates no active tungsten mines. Allied’s Borralha project is positioned to address these supply diversification needs and support the resilience of European and allied defense infrastructure.
Roy Bonnell, CEO and Director of Allied, described the environmental declaration as a crucial regulatory achievement that validates the project’s technical quality and environmental planning. He stated that the declaration permits the company to move forward with subsequent permitting and detailed engineering. Joao Barros, Allied’s President, COO, and Director, emphasized the project’s blend of Portugal’s mining legacy with modern environmental standards and community engagement. He also highlighted the project’s potential to address historical environmental issues while fostering employment and economic activity in Portugal’s interior regions.
Sources
- https://www.streetwisereports.com/article/2026/01/13/critical-metals-co-secures-environmental-approval-for-high-grade-portugal-tungsten-mine.html
