MINEX Forum

Month: July 2024

  • Serbia to Restart Disputed Lithium Mining Project After Court Ruling

    Serbia to Restart Disputed Lithium Mining Project After Court Ruling

    In a significant turn of events, the Serbian government announced on Tuesday that operations at the controversial lithium mining project near Loznica can resume. This decision comes after the country’s top court overturned a 2022 cancellation of the mining permits. The vast mineral deposits, set to be mined by Rio Tinto, have been a contentious political issue, with billions of euros at stake. Rio Tinto claims the mine will create thousands of jobs and secure Serbia’s position in emerging energy markets.

    “The government… takes measures to restore the legal order to the state that existed before the adoption of the regulation that was declared unconstitutional,” a government statement declared. This follows a constitutional court ruling deeming the 2022 revocation of Rio Tinto’s permits unconstitutional.

    The project has sparked widespread protests in Serbia, reflecting public distrust in the government amid environmental and health concerns. However, President Aleksandar Vucic suggested that mining operations could commence by 2028, contingent on new guarantees from Rio Tinto. Vucic emphasized the need for assurances that the environment and public health would not be compromised.

    Rio Tinto has expressed approval of the decision, with project director Chad Blewitt stating, “The Jadar Project will be subject to stringent environmental requirements in compliance with Serbia and EU regulations.” He highlighted that the project would generate thousands of high-paid, high-skilled jobs.

    The Jadar mine could produce 58,000 tonnes of lithium annually, supporting the production of 1.1 million electric vehicles. Despite this, protest leaders like Savo Manojlovic have criticized the government’s decision, predicting social unrest. Activist Zlatko Kokanovic echoed these sentiments, accusing the government of political maneuvering.

  • Protests Erupt in Serbia After Court Reinstates Rio Tinto’s Lithium Mine Permit

    Protests Erupt in Serbia After Court Reinstates Rio Tinto’s Lithium Mine Permit

    Protests erupted in Serbia following a ruling by the constitutional court that overturned a 2022 government decision to revoke Rio Tinto’s permit for a $2.4 billion lithium mine, deeming the annulment unconstitutional and unlawful. This decision aligns with the government’s preparation to grant Rio Tinto new approval to develop Europe’s largest lithium mine, a project previously halted due to extensive environmental protests.

    The court found that the government decree terminating the spatial plan for Rio Tinto’s Jadar lithium mine and processing plant in Loznica was inconsistent with the constitution and the law. This ruling, issued on July 11, permits Rio Tinto to continue with its controversial project pending government approval. Rio Tinto has welcomed the decision, expressing optimism about advancing the Jadar lithium project, which is expected to become a significant source of lithium carbonate—vital for batteries used in mobile phones and electric vehicles.

    Serbia’s finance minister, Sinisa Mali, highlighted lithium’s potential economic impact, suggesting it could contribute up to 16% of the GDP and create approximately 20,000 jobs, comparing it to the significance of oil. However, opposition figure Dragan Djilas criticized this comparison, pointing out that countries with oil typically extract it in remote areas, with the state often owning the resources, unlike the situation with Rio Tinto.

    The court’s decision has led to widespread discontent, with over a thousand protestors gathering outside the court on July 11, blocking a major street in central Belgrade despite extreme heat. Savo Manojlovic from Kreni-promeni, a key figure in the 2021 and 2022 protests, accused the court of timing its decision to align with authorities’ renewed support for the project. Serbia’s President Aleksandar Vucic denied any coordination or political interference with the court.

    Earlier this year, opponents submitted a petition with over 38,000 signatures seeking a nationwide ban on lithium and boron mining, but the National Assembly of Serbia did not address it. The government has indicated its intention to proceed with the project, risking further protests and potential political instability reminiscent of the mass protests in 2021.

    Kreni-promeni, which recently gained seats in municipal parliaments, continues to advocate against the Jadar project. Svetlana Ceca Bojkovic, an actress and activist, expressed her dissatisfaction, stating that the court’s decision was expected but emphasized the ongoing fight against the project.

    The Constitutional Court clarified that its ruling does not reinstate the 2020 spatial plan, leaving the final decision on the project’s future to the Serbian government under constitutional and legal guidelines.

  • EBRD and Serbia Sign Major Grant Agreement to Boost Energy Efficiency

    EBRD and Serbia Sign Major Grant Agreement to Boost Energy Efficiency

    The European Bank for Reconstruction and Development (EBRD) has entered into a significant grant agreement with Serbia’s Ministry of Mining and Energy. Funded by the European Union (EU), this initiative aims to bolster the administration responsible for financing and promoting energy efficiency across Serbia.

    The agreement is a pivotal part of the EU-funded project “Support for the Operation of the Administration for Financing and Promoting Energy Efficiency in Serbia” (EEA) and marks the initial phase of a broader technical cooperation effort. The primary goal is to enhance the EEA’s capacity to manage energy-efficiency funding from the Serbian government, particularly focusing on building renovations.

    EBRD President Odile Renaud-Basso and Serbian Minister of Mining and Energy Dubravka Đedović Handanovićsigned the agreement, with Elvira Angulo Rodrigues, Head of Operations I of the European Union to Serbia, witnessing the ceremony.

    “I am very glad that we have signed this grant, which aims to support the decarbonisation of Serbia’s economy by enhancing institutional capacity for investments in energy efficiency and promoting the efficient use of energy. Augmenting this efficiency is not only pivotal to reducing greenhouse gas emissions and lowering energy costs but also plays a crucial role in boosting the quality of public infrastructure and services. This project and its implementation show Serbia’s commitment to sustainable development and environmental stewardship, contributing to economic resilience and long-term prosperity. Strengthening the capacity of the EEA will enable easier access to EU funds, as well as the development, implementation and promotion of support schemes for large-scale energy-efficiency investments, with a particular focus on the renovation of buildings,” said Renaud-Basso.

    Minister Đedović Handanović highlighted the impact of the EU’s €2.35 million donation, stating, “A donation of 2.35 million euros from the EU will increase the capacities of the Directorate for Financing and Encouraging Energy Efficiency, which implements Subsidy Grant Programs for energy rehabilitation of public buildings in the Republic of Serbia and also plays an important role in supporting citizens to increase energy efficiency in their households. With the support of the administration, subsidies were granted to more than 30 thousand households, 165 buildings of public importance were rehabilitated, and just last year we subsidized the rehabilitation of 21 schools, kindergartens, and cultural centers in the same number of cities and municipalities. This year, we expect a double number of applications for public facilities, since the budget of the Republic of Serbia has provided twice as many funds for these purposes.”

    Elvira Angulo Rodrigues noted the broader implications of the agreement, “The agreement signed today will improve human and technical capacities of the Energy Efficiency Administration for much wider and faster coverage of the energy efficiency needs in Serbia. By prioritising energy efficiency, we not only reduce energy consumption but also bolster the resilience of our energy systems and pave the way for a seamless transition to renewable energy sources. The partnership between the European Union and Serbia in the energy sector exemplifies our shared commitment to a future that is both prosperous and sustainable.”

    The EBRD remains a leading institutional investor in Serbia, with over €9 billion invested through 355 projects, primarily supporting the private sector. The Bank’s focus in Serbia includes promoting private-sector competitiveness, green energy transition, and sustainable infrastructure development.

  • German Chancellor Olaf Scholz to Visit Serbia for Crucial Lithium Supply Agreement

    German Chancellor Olaf Scholz to Visit Serbia for Crucial Lithium Supply Agreement

    German Chancellor Olaf Scholz is set to visit Serbia this week to negotiate a critical agreement for the supply of lithium, essential for Germany’s energy transition and auto industry. According to sources familiar with the matter, Scholz is expected to be in Belgrade on Friday to sign the agreement with Serbian President Aleksandar Vucic and other cabinet ministers. While the details of the visit remain unconfirmed, the German government and the Serbian administration have not commented on the matter.

    Serbian Infrastructure Minister Goran Vesic mentioned that Serbia intends to collaborate closely with European Unionmember states on potential lithium extraction but did not verify Scholz’s visit. Vesic emphasized Serbia’s aspirations to join the EU and its willingness to cooperate on various issues with EU partners.

    This potential deal follows a significant ruling by Serbia’s top court, which overturned a 2022 government decision to halt a $2.4 billion lithium project by Rio Tinto Group due to environmental concerns. This project, if realized, would be Europe’s largest lithium mine, with an estimated annual production of 58,000 tons of lithium. However, operations are not expected to commence before 2028, pending firm environmental protection measures.

    The European Union’s dependency on imported lithium was a major concern addressed in recent legislation aimed at securing supplies of critical minerals. Despite this, progress has been limited to general agreements with allies like Australia, and critics argue that more direct funding is necessary to support developers amid a downturn in battery-metal markets.

    The agreement between Serbia and Germany, the EU’s largest economy, comes as Serbia continues its efforts to join the EU. The lithium supply from Serbia would significantly aid Germany’s plans to reduce reliance on gas and coal and to advance the electrification of its automotive industry. In addition to international projects, Germany is also exploring domestic lithium extraction through startups like Vulcan Energy Resources Ltd.

  • Adriatic Metals Faces Legal Hurdles Over Forest Removal Law in Bosnia & Herzegovina

    Adriatic Metals Faces Legal Hurdles Over Forest Removal Law in Bosnia & Herzegovina

    Adriatic Metals PLC, a Cheltenham-based exploration and development company, reported on Monday that the Constitutional Court of Bosnia & Herzegovina has recommended the repeal of a federal law that permits the removal of state forest for temporary use. This announcement caused a 5.6% drop in Adriatic Metals shares, closing at 186.15 pence in London.

    The court argues that the authority to permit forest removal should reside with the state rather than the federation. Adriatic Metals anticipates that the court will release its full decision shortly. This ruling is expected to delay the planned removal of trees for the company’s extended tailings storage facility at the Vares processing plant, scheduled for construction in the upcoming months.

    The potential impact of the court’s decision is significant, as Adriatic stated that every major project within the federation could be affected. In the interim, Adriatic Metals will continue utilizing its current tailings storage facility, which has the capacity to receive material until the first quarter of 2025. The company is also considering alternative tailings storage solutions within its concession area but will await the court’s full decision before proceeding.

    Chief Executive Officer Paul Cronin assured stakeholders that Adriatic Metals is cooperating with all levels of government to fully understand the implications of the court’s decision and is committed to complying with the laws of Bosnia & Herzegovina. He confirmed that operations at the Vares silver project are continuing as planned, with an update on production expected in the upcoming Q2 quarterly activity report.

  • Portugal Finalizes Strategic Plan for Green Transition Raw Materials

    Portugal Finalizes Strategic Plan for Green Transition Raw Materials

    Portugal’s government is finalizing a strategic plan to explore raw materials critical to the green transition, with a particular focus on copper, which may take precedence over lithium. On Monday, Environment and Energy Minister Maria da Graca Carvalho highlighted Portugal’s wealth of critical raw materials, including copper, essential for electric cars.

    Portugal boasts the largest copper mine in the European Union, operated by Toronto-based Lundin Mining. The country also produces lithium for the ceramics industry and is developing large deposits of battery-grade lithium. “We have great potential to explore for copper, we already have a great tradition and we will continue to invest,” Carvalho stated during a conference.

    “When looking at critical raw materials, we have to consider lithium, but it is not the only one, nor perhaps the most important,” she added. The strategic plan is set to be presented on July 22. Carvalho noted, “Based on this strategy, we will define the areas of production for the various critical raw materials,” suggesting potential new concessions.

    Europe aims to enhance security and reduce dependence on imports from countries like China for materials crucial to the green transition. The previous Portuguese government had planned to auction licenses for lithium prospecting in six regions in the north and center of the country. However, concerns from nature preservation groups and local communities about the environmental and social impact of lithium mining have caused multiple delays since the auction’s initial plan in 2018.

    When asked about the new government’s stance on the lithium auction, Carvalho emphasized the need to review the final strategic plan and make decisions based on scientific and technical data.

  • EU Urged to Establish Independent Pricing for Critical Minerals

    EU Urged to Establish Independent Pricing for Critical Minerals

    The head of an EU-funded group has called for a European system to set prices for critical minerals essential for the energy transition, independent of China’s influence. Bernd Schaefer, CEO of EIT RawMaterials, emphasized the need for a pricing mechanism that reflects the supply and demand within Europe, rather than being susceptible to China’s market decisions.

    Western start-ups are struggling with oversupply and weak prices of materials like lithium, cobalt, and rare earths, which are impacting their cash flows and ability to compete with China. “Europe should have a critical materials platform that has a price-building mechanism that reflects the supply and demand situation in Europe,” Schaefer told Reuters at the World Materials Forum in Paris.

    Schaefer also advocated for the creation of an exploration fund to enhance the mining of critical minerals in Europe, suggesting a substantial investment, “This should not be just a couple of million (euros), it should be a billion, it must be a big number.”

    EIT RawMaterials, an alliance of over 300 companies and academics, is instrumental in executing the EU plan to secure raw materials necessary to achieve net zero greenhouse gas emissions by 2050. The EU Critical Raw Materials Act, effective since May, sets ambitious targets for the mining, recycling, and processing of minerals like lithium and copper by 2030.

    Schaefer warned that political uncertainty could hinder progress towards these targets, citing recent elections in France, the European Parliament, and instability in Germany. “This discussion is in limbo. We are in a period of transition within the Commission and within Europe,” he noted. “We might be losing time, but we cannot afford to lose time.”

    As a neutral, non-political entity, EIT RawMaterials could play a pivotal role in driving the necessary changes, Schaefer added.

  • Climate Groups Challenge UK’s First Deep Coal Mine in Three Decades

    Climate Groups Challenge UK’s First Deep Coal Mine in Three Decades

    In a significant legal battle, climate groups have branded the decision to open the UK’s first deep coal mine in over thirty years as unlawful, arguing that the approval overlooked the full extent of the harmful emissions it would generate. On Tuesday, lawyers representing Friends of the Earth and South Lakes Action on Climate Change contested the planning permission granted to the Woodhouse Colliery project in Whitehaven, northwest England, at the High Court.

    The UK government had greenlit the mine’s development in 2022, with West Cumbria Mining Ltd. planning to export coal primarily for steel production overseas. However, legal representatives claimed that the developer’s climate assessment failed to account for the emissions resulting from burning the coal, erroneously labeling the mine as net zero.

    “No reputable standard-setting or governance body involved in the voluntary carbon market endorsed West Cumbria Mining’s approach,” stated the lawyers for Friends of the Earth in their hearing documents, calling the net zero claim “pure greenwashing.”

    The case gained momentum last week when the UK’s new Labour government declared it would no longer defend the mine’s approval. This decision followed a Supreme Court ruling mandating that all emissions, whether produced on site or downstream, must be fully considered when approving new fossil fuel projects.

    In response, West Cumbria Mining‘s legal team vehemently denied the accusations, asserting that the development proposals, evidence, and official appraisals were all lawful and accurately represented.

  • Polish Miner Found Alive After Being Trapped Underground for Two Days

    Polish Miner Found Alive After Being Trapped Underground for Two Days

    A Polish coal miner who had been trapped underground since Thursday was found alive by rescuers on Saturday, according to local media reports. The Rydultowy mine in southern Poland, operated by the state-controlled group PGG, experienced a tremor at around 06:00 GMT on Thursday, approximately 1,200 metres (3,960 feet) below ground.

    The tremor resulted in the death of one miner, while around 76 miners were brought to the surface alive by rescuers on Thursday, with 17 taken to hospital. The state-run news channel TVP Info reported that the miner was conscious when rescuers reached him. The private broadcaster RMF FM mentioned that a helicopter was at the mine to transport him to the hospital.

    Most of the miners who were hospitalized have since been discharged, as reported by TVP Info.

  • Serbian President Vows Environmental Protection Amid Lithium Mining Dispute

    Serbian President Vows Environmental Protection Amid Lithium Mining Dispute

    Serbian President Aleksandar Vucic reassured citizens on Friday that protecting people and the environment would remain a top priority following the constitutional court’s decision to greenlight a disputed lithium mining project. On Thursday, Serbia’s top court ruled against the 2022 government decision that halted Rio Tinto’s multibillion-dollar project, aimed at exploiting some of Europe’s largest lithium deposits, a critical mineral for electric vehicle batteries.

    The court found that revoking Rio Tinto’s permits was “not in line with the constitution and the law”, though it emphasized that the government has the final say on the project’s continuation. Vucic affirmed that the government would respect the court’s ruling, stating, “I have no intention of agreeing with the project if it endangers people and the environment.”

    Despite the 2022 halt, many opponents of the mine believe Vucic supports its progression. In a June interview with the Financial Times, Vucic hinted that the lithium mine could start as early as 2028, contingent on new assurances from Rio Tinto. This statement reignited public concern and led to a new wave of protests.

    On Friday, Vucic pledged to consult with experts before making a final decision. “From an economic point of view, there isn’t any doubt, but before economic considerations, environmental ones must be considered,” he said.

    Rio Tinto welcomed the court’s decision, with project director Chad Blewitt stating the project could become a “world-class” asset developed safely according to both Serbian and EU standards. According to Rio Tinto, the Jadar mine could produce 58,000 tonnes of lithium annually, sufficient for 1.1 million electric vehicles.

    In 2022, following massive protests, the government invalidated the project’s permits, with activists arguing it threatened the Jadar valley’s environment, an agricultural region in western Serbia.