Rio Tinto is seeking to develop the $US2.4 billion ($3.3 billion) Jadar mine in western Serbia as part of its foray into lithium, a sought-after battery raw material that will be needed in increasingly vast quantities as carmakers roll out millions of electric vehicles in coming years.
A man holds a banner that reads: “Rio Tinto go away!” during a protest against the company’s plans to build a lithium mine in the Jadar Valley.Credit: AP/Darko Vojinovic
However, the project has been facing intensifying local opposition in Serbia and large-scale protests in recent months, with campaigners calling on the government to cancel the project amid concerns about the potentially harmful environmental impact of mining in the agricultural region.
The decision to revoke Rio Tinto’s licences comes with the Serbian government under significant public pressure ahead of a general election in April.Relations between Serbia and Australia have also deteriorated since the deportation of unvaccinated tennis star Novak Djokovic .
“We are listening to our people and it is our job to protect their interests even when we think differently,” Ms Brnabic told reporters.
Loading “All decisions [linked to the lithium project] have been annulled.As far as project Jadar as concerned, this is an end.”
Rio Tinto on Friday said it was “extremely concerned” by Ms Brnabic’s statements about cancelling the spatial plan and revoking its licences.The company said it was reviewing the legal basis of the Prime Minister’s decision.
“Throughout our work on the Jadar project we have always operated in compliance with the laws of the Republic of Serbia,” a company spokesman said.
Advertisement “Rio Tinto is reviewing the legal basis of this decision and the implications for our activities and our people in Serbia.”
A Serbian protest group posted on social media on Friday calling for Rio Tinto to be given a “one-way ticket back to Australia”.“Serbia is not for sale!” it said.
“We are listening to our people and it is our job to protect their interests even when we think differently,” Serbian PM Ana Brnabic says.
Credit: AP
A spokesperson for the federal government said: “The Australian government regrets the decision to revoke Rio Tinto’s licences to explore and mine lithium in Serbia.
“We note the strong economic benefits of the significant investment by Rio Tinto in Serbia.Australian resources companies have an outstanding reputation around the world, particularly when it comes to their expertise.”
Rio Tinto, Australia’s second-largest miner, last year allocated $US2.4 billion to construct the proposed Jadar mine, which would be able to produce enough lithium to power more than 1 million electric vehicles a year.
Carmakers across the world are racing to lock in supplies of electric-battery raw materials including lithium, nickel and copper, which are failing to keep pace with ballooning demand.Top Australian miners BHP, Rio Tinto and Fortescue are all looking to tap into the electric vehicle mega-trend by expanding into the so-called “future-facing” minerals.
Loading In October, Rio Tinto unveiled a major strategic shift including spending $US7.5 billion to halve its carbon footprint by 2030 and earmarking $US3 billion for new investments in minerals considered vital to driving the global shift towards carbon neutrality.
While natural resources are urgently needed to fuel the global switch from combustion-engine cars to electric vehicles, new mining projects are coming up against heightened scrutiny around the world and are struggling to secure community support.Uncertainty is also surrounding BHP and Rio Tinto’s joint proposal to build a huge new copper mine in the US state of Arizona amid objections by the San Carlos Apache tribe which fears it will impact sacred and actively utilised religious land.
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