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Rio Tinto halts lithium mining project Jadar in Serbia

Rio Tinto has suspended its lithium mining project Jadar in Serbia, Bloomberg learned from the company’s internal documents.

The suspension of the Jadar project, valued at USD 2.95 billion, is among the first decisions of Rio Tinto’s new CEO Simon Trott.

Bloomberg wrote that it saw an internal company memo revealing that the investment in Serbia would be switched to a care and maintenance regime, making it dormant.

“Given the lack of progress in permitting, we are not in a position to sustain the same level of spend and resource allocation,” the document reads.

According to the same source, Rio Tinto still considers Jadar an important lithium deposit that could play a significant role in Serbia and Europe’s energy transition.

The European Union has designated the project as strategically important. The race for lithium and other rare metals is intensifying due to China’s growing dominance.

Rio Tinto confirmed the contents of the memo.

The company told Blic that it “remains in Serbia” and that the Jadar project is entering a phase involving an assessment of project costs and resources. “Our focus will be to support our employees through the transition process, and to continue fulfilling our legal obligations to the local community as responsible landowners in the Jadar valley,” it added.

New investments and company restructuring

Trott became CEO in August, and the decision to suspend the Jadar project is part of efforts to streamline the business and focus on faster growth opportunities.

He reorganized Rio Tinto by dividing it into segments for iron, aluminum and lithium, and copper.

According to the memo, the company’s current head of lithium Paul Graves will leave the company.

Last year, Rio Tinto acquired Arcadium Lithium for USD 6.7 billion, gaining access to three lithium projects in development. At the same time, it is investing heavily in the Rincon lithium project in Argentina.

Due to oversupply in the lithium market, prices remain around 85% below their 2022 peak, the article adds.

Rio Tinto is the world’s second-largest mining company by market value. The Jadar mining and processing project, based on the mineral jadarite, discovered in 2004 in the Jadar valley in western Serbia, has faced strong opposition from the country’s citizens, environmental activists, and part of the expert community for many years. Balkan Green Energy News has published a chronological overview of the key events in the development of the Jadar project since 2001, when Rio Tinto arrived in Serbia.

Trott is scheduled to deliver his first strategic presentation on the company’s further development and restructuring on December 4 in London, during Rio Tinto’s Capital Markets Day.

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Serbia plans new mining law to align legislation with EU rules on critical raw materials

Serbia’s Ministry of Mining and Energy has launched a public consultation on a preliminary framework for a new law on mining and geological exploration. One of the goals of the new law is to align national legislation with European Union regulations on critical raw materials, sustainable development, and the circular economy.

The law will be harmonized with the EU’s Critical Raw Materials Act and the European Green Deal, to gradually align Serbia’s regulatory framework with the EU’s goals for sustainable mining, climate neutrality, and secure minerals supply, according to a document outlining the basis for the draft law.

Earlier this year, the European Commission included a lithium mining project in Serbia among the EU’s strategic projects for critical raw materials. Rio Tinto’s Jadar project is the only one on the list that involves the extraction of lithium and boron.

Lithium mining in Serbia is among the EU’s strategic projects for critical raw materials

Regarding harmonization with EU regulations, Serbia intends to introduce standardized reporting systems in line with the Pan-European Reserves and Resources Reporting Committee (PERC) standards, the UN Framework Classification for Resources (UNFC), and the Petroleum Resources Management System (PRMS), as well as implement ESG principles, which integrate environmental, social, and governance requirements into all phases of geological exploration and mining.

The main objective of the new law is to establish a modern, transparent, and efficient system for managing mineral and other geological resources in line with sustainable development standards, while strengthening the role of the state as the owner and steward of the country’s natural resources, according to the document.

It further highlights the need for more clearly defined mechanisms to ensure the application of sustainable mining principles and compliance with environmental standards, in line with advanced global practices. Investors’ obligations regarding environmental protection, land reclamation, and site remediation should be more precisely regulated during exploration and mining.

Investors’ obligations concerning environmental protection need to be more clearly defined

Improving the legal framework for granting exploration and mining rights is of particular importance, the document states. This would be done through models that ensure greater legal certainty, more efficient oversight, and consistent application of environmental and social standards, in line with sustainable mining principles.

The new law will also set clear criteria for identifying and protecting strategic mineral deposits, and ensure they are included in spatial and development plans. This would enable long-term protection of national interests in the field of mineral resources.

The law will digitalize permitting procedures for exploration and mining

The law will envisage digitalization and electronic processing in all administrative phases through a unified information system that enables electronic application and permitting, while allowing public access to data on exploration and mining fields.

The new law is also intended to ensure gradual alignment with European policies in the fields of green and digital transition.

The public consultation will be open until November 11, during which time citizens and organizations can submit proposals, comments, and suggestions.

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Serbian organizations, academic community urge EU against declaring lithium project Jadar strategic

The National Convention on the European Union in Serbia has sent a letter to European officials, expressing concern over the potential consequences of designating Rio Tinto’s Jadar lithium project as an EU strategic project. The body warns that such a decision could further erode the support for the country’s European integration. Members of the academic community and numerous citizens also urged the administration in Brussels to reject the company’s application.

The National Convention on the European Union is a platform for cooperation and consultations between civil society and the Government of Serbia in the EU accession negotiation process. It sent the letter to European Commission President Ursula von der Leyen, High Representative of the EU for Foreign Affairs and Security Policy Kaja Kallas, Commissioner for Enlargement Marta Kos, European Commission Vice-President for Prosperity and Industrial Strategy Stéphane Séjourné, and Commissioner for Trade and Economic Security Maroš Šefčovič. The convention expresses concern over the possible consequences of including the Jadar lithium project in the EU’s list of strategic projects under the Critical Raw Materials Act (CRMA).

“Given the immense public distrust surrounding the preparation process of the Jadar project, its designation as a project of strategic importance to the European Union, especially in the current geopolitical climate and during Serbia’s institutional and societal crisis, would further undermine citizens’ confidence in the benefits of European integration. Additionally, the long-term geopolitical orientation of Serbia could be affected, potentially jeopardizing the political stability of the Western Balkans,” the letter states.

The convention added that Serbian citizens’ trust in the European Union has been eroded, pointing to the results of a recent public opinion survey. For the first time, more citizens have expressed opposition to EU membership than support for European integration, the body stressed.

EU strategic projects and reactions

The European Commission has approved the first 47 strategic projects in EU territory for important raw materials. The decision for candidate projects in third countries, including Serbia, has been postponed. Under the EU’s Critical Raw Materials Act, such strategic projects are eligible for administrative and financial support.

Shortly after the European Commission’s decision, Serbian President Aleksandar Vučić stated in Brussels that the EU would declare the Jadar project strategic “in seven or eight days.”

Together with nongovernmental organizations and community associations from Romania, Germany, Spain, and Portugal, the Marš sa Drine group from Serbia reacted to the European Commission’s decision, and later also to Vučić’s statement. They said they would legally challenge the strategic status designation for disputed mining projects.

The convention recalled that over 60% of Serbian citizens currently oppose the Jadar project, which includes technology that has never been deployed anywhere in the world.

Citizens’ opposition to the Jadar project should be understood primarily as a reflection of distrust in Serbian institutions

“This opposition primarily reflects a deep mistrust in Serbian institutions and their ability to impartially assess the public interest in such a complex project, as well as to enforce environmental and other regulatory standards should the project proceed,” the document reads.

Transparency in decision making has been lacking, and the reactions of Rio Tinto have been inadequate, it added.

“The local community was not adequately informed about earlier phases of research or the project’s potential consequences. Furthermore, the documents forming the basis of the draft environmental impact assessment study have yet to be made public, further fueling doubts about the objectivity and thoroughness of the decision-making process,” the convention said.

It warned that including projects in Serbia in the list of EU strategic projects, before the rule of law is established and before compliance with European environmental standards is ensured, could be perceived as support for maintaining the current state of affairs.

Letters to the European Commission

Environmentalist organization Eko straža previously submitted a letter to the representatives of the European Union in Belgrade, supported by 100,000 citizens with their signatures. They urged the European Commission to leave Jadar off the list of strategic projects.

In addition to the general public, the academic community has also voiced its opposition and concern. Around 2,800 of its members of Serbia’s academic community signed an initiative to reject the Jadar project.

The academic community and a group of student protesters submitted letters to the EU Delegation in Serbia, addressed to the European Commission, opposing the designation of the Jadar project as strategic.

“The right to clean water, land, nature, and health must take precedence over corporate profit,” the Serbian student blockade organization wrote on its Instagram account.

The Kreni-promeni movement also submitted a petition, signed by more than 300,000 citizens, demanding from the EU to reject the Jadar proposal.