MINEX Forum

Tag: Jadar project

  • Đilas claims Rio Tinto preparing €1–1.5 billion compensation claim against Serbia over Jadar lithium project

    Đilas claims Rio Tinto preparing €1–1.5 billion compensation claim against Serbia over Jadar lithium project

    Rio Tinto is preparing to file a compensation claim against the Republic of Serbia worth between €1 billion and €1.5 billion over the halted lithium mining project in the Jadar Valley, according to Dragan Đilas, president of the opposition Freedom and Justice Party.

    Speaking on the podcast Dežurni krivac, Đilas said the mining company intends to sue Serbia for costs incurred and lost profits after the government abandoned plans for lithium extraction. He argued that commitments made by senior state officials, including President Aleksandar Vučić and former Prime Minister Ana Brnabić, form the basis of the claim.

    Đilas stated that Rio Tinto allegedly received both written and verbal assurances regarding the project’s implementation, stressing that verbal agreements are legally binding in the same way as written ones. According to him, the public is still unaware of the exact guarantees provided by state leadership, which allowed the company to begin exploration, planning, and investment activities.

    He further claimed that once the lawsuit is formally announced, the authorities will shift responsibility onto citizens who protested against lithium mining. Đilas rejected this narrative, saying public opposition was clear, with more than 80% of citizens reportedly against the project.

    The opposition leader accused the country’s leadership of exceeding their authority and violating laws by promising lithium production to international partners, only to later withdraw those commitments. He warned that Serbia could ultimately bear the financial consequences, potentially amounting to hundreds of millions or even more than a billion euros.

    Đilas concluded that the situation reflects broader political risks, arguing that unfulfilled promises to foreign partners could result in additional financial claims against the state in the future.

  • Rio Tinto Mothballs Controversial $2.95bn Jadar Lithium Project in Serbia

    Rio Tinto Mothballs Controversial $2.95bn Jadar Lithium Project in Serbia

    The Rio Tinto Group has placed its contested $2.95-billion Jadar lithium project in Serbia into “care and maintenance”, according to an internal memo this week. The move, confirmed by a company spokesperson, effectively halts active development on what was slated to be Europe’s largest lithium mine, capable of supplying an estimated 90% of the continent’s current lithium demand.

    Key Takeaways and Context

    The decision is a direct consequence of a “lack of progress in permitting” and sustained fierce local opposition and political volatility in Serbia. CEO Simon Trott’s focus on simplifying the company’s sprawling portfolio and cutting spending also played a role, especially given the project’s high capital allocation with no immediate production in sight.

    What does “Care and Maintenance” mean for Jadar?

    “Care and maintenance” is a mining industry term for a temporary suspension of operations. It means that while the site is not actively being developed, it is being managed to ensure it remains in a safe, stable, and environmentally compliant condition so that operations could be recommenced at a later date if regulatory, economic, or social conditions improve.

    Rio Tinto reiterated that it “remains in Serbia” and continues to view Jadar as an “exceptional quality” deposit with the potential to play a “significant role in the energy transition” of Serbia and Europe. Their immediate focus will be on supporting employees and fulfilling legal obligations as responsible landowners in the Jadar valley.

    🇪🇺 Critical Hit to EU’s Raw Materials Strategy

    The mothballing of Jadar is a significant setback for the European Union’s ambitions for self-sufficiency in key battery metals, as outlined in the Critical Raw Materials Act (CRMA).

    • Strategic Project Loss: Jadar was designated as one of the EU’s few Strategic Projects outside of its borders, specifically for lithium. At its estimated full capacity of 58,000 tonnes of lithium carbonate annually, it was considered a cornerstone for establishing a secure, diversified, and domestic European battery supply chain, reducing reliance on dominant suppliers like China.
    • A Warning on Governance: The project’s failure underscores a critical dilemma for the EU. As Peter Tom Jones highlights, attempts to increase self-sufficiency through projects in third countries must not lead to “uncritical support for autocratic regimes”. The sustained local opposition, environmental concerns, and political instability in Serbia—an EU candidate country—demonstrate that effective governance and a democratization process are as critical as the resource itself.
    • Alternative Lithium Projects: The focus will now intensify on accelerating other European lithium projects, such as those in Portugal, France, and Finland, to meet the CRMA’s targets.

    This situation calls for the EU to demand robust ecological and social standards—potentially through collaboration with third-party verification bodies like the Initiative for Responsible Mining Assurance (IRMA)—to rebuild confidence in such projects in the Western Balkans and beyond.

  • Rio Tinto to Halt Serbia’s Jadar Lithium Project as Costs Rise and Progress Stalls

    Rio Tinto to Halt Serbia’s Jadar Lithium Project as Costs Rise and Progress Stalls

    Rio Tinto will suspend development of its long-delayed Jadar lithium project in Serbia, effectively mothballing what was once slated to become Europe’s largest lithium mine. The decision, first reported by Bloomberg and later confirmed by a company spokesperson, places the nearly $3-billion project into “care and maintenance” as the miner seeks to reduce spending and refocus its lithium strategy.

    The move ends Rio’s two-decade effort to unlock the massive Jadar deposit, discovered in 2004 and estimated to produce 58,000 tonnes of battery-grade lithium carbonate annually. Despite the project’s strategic importance for Europe’s battery supply chain, Jadar has repeatedly stalled amid regulatory hurdles, political uncertainty and strong community opposition. Serbia revoked Rio’s licence in 2022 over environmental concerns and only reinstated it last year, but permitting made little progress.

    In the internal memo cited by Bloomberg, Rio said it could no longer justify the level of investment given the limited advancement of the project. Earlier this year, the company raised Jadar’s cost estimate to nearly $3 billion, citing the need to meet stringent EU environmental and human rights standards.

    The suspension is part of broader cost-cutting measures under new CEO Simon Trott, who has introduced restructuring efforts and workforce reductions across the company. With Jadar shelved, Rio is expected to concentrate its lithium ambitions on South America, including Argentina’s Rincon project and joint ventures in Chile.

    Analysts say the decision underscores Rio’s pivot away from hard-rock assets inherited through its merger with Arcadium, and some expect those projects could be sold. The halt also deals a blow to EU plans to secure domestic lithium supply, as Jadar was projected to cover nearly 90% of Europe’s current demand.

  • Rio Tinto Pushes Forward with Serbia’s Jadar Lithium Project Amid Environmental Debate

    Rio Tinto Pushes Forward with Serbia’s Jadar Lithium Project Amid Environmental Debate

    Rio Tinto is actively seeking regulatory approvals to revive its Jadar lithium project in western Serbia, a venture that could become one of the largest greenfield lithium mines globally. Speaking to SeeNews, Chad Blewitt, Managing Director of the Jadar Project, confirmed that the company is awaiting approval for a revised Environmental Impact Assessment (EIA) study and other critical permits, including an exploitation field license.

    “If we secure all necessary regulatory approvals and public consultations go smoothly, we could begin construction within the next few years,” Blewitt said. The company previously planned to start production in 2027 following the mine’s completion in 2026.

    The Serbian environmental protection ministry has yet to comment on the status of the EIA review. Once the scope is approved, Rio Tinto will have one year to complete the updated study.

    Discovered in 2004, the Jadar deposit contains jadarite, a unique lithium- and boron-rich mineral. If developed, the mine is expected to produce 58,000 tons of battery-grade lithium carbonate annually over a 40-year lifespan, potentially placing Rio Tinto among the world’s top ten lithium producers.

    However, the project has sparked significant backlash. Environmentalists, local residents, and scientists warn that mining in a fertile and densely populated valley could have catastrophic ecological consequences. Activist group Ne Damo Jadar points out that the mine’s projected footprint affects 17 villages, with five located near the planned landfill zone—home to nearly 19,500 people.

    Blewitt rejected these criticisms, calling them “reckless” and based on misinformation. “Scientific facts confirmed by independent experts show the project is safe,” he said, emphasizing that the Jadar mine has passed the most rigorous environmental studies ever conducted in Serbia.

    The European Commission recently added Jadar to its list of strategic raw materials projects outside the EU, a move Blewitt says proves the project can meet the highest environmental and human rights standards.

    Originally estimated at €2.55 billion, the project’s capital cost is now under review to incorporate new technical developments. Economic benefits touted by Rio Tinto include an estimated €695 million annual contribution to Serbia’s GDP and over €180 million in yearly state revenues from taxes and royalties. The operational phase is expected to create 1,300 permanent jobs, with additional economic ripple effects potentially generating over 20,000 new roles in associated sectors like battery and EV production.

    Blewitt, who returned to lead the Jadar project in 2023 after advancing Rio Tinto’s operations in Guinea and Mongolia, remains focused on finalizing the EIA and ensuring full regulatory compliance before breaking ground.

  • Europe’s Jadar Dilemma: Lithium Sovereignty or Green Colonialism?

    Europe’s Jadar Dilemma: Lithium Sovereignty or Green Colonialism?

    The European Union’s push toward a carbon-neutral future hinges heavily on securing reliable lithium supplies—now formally classified as a critical raw material under the bloc’s Critical Raw Materials Act. With global lithium demand forecasted to rise 40-fold by 2040, the EU is racing to secure domestic or allied sources to reduce dependency on China, which currently dominates the lithium-ion battery market.

    One project at the heart of this race is Rio Tinto’s Jadar lithium-boron mine in western Serbia, which boasts 118 million tonnes of ore with 1.8% lithium oxide—enough to potentially power one million electric vehicles annually and meet 90% of Europe’s lithium needs. Strategically, it’s a game-changer. But politically and environmentally, it’s a powder keg.

    Located near Loznica, Serbia’s agricultural heartland, the Jadar project faces fierce grassroots resistance. Local communities warn of severe environmental consequences, including water contamination in the Drina River basin and dangerously high boron levels in soil. The backlash has been compounded by allegations of secret tax deals struck between Rio Tinto and the Serbian government before public consultations even began.

    Despite over 60% of Serbians opposing the mine, the European Commission recognized Jadar as a strategic project on 4 June 2025, highlighting its geopolitical importance as a counterweight to growing Chinese and Russian influence in the Balkans. Serbia’s alignment with both nations—China via Belt and Road projects and Russia through cultural ties—adds urgency to Brussels’ resource diplomacy.

    Yet, critics argue that this comes at the cost of democratic accountability. The EU’s continued cooperation with Serbia—despite democratic backsliding under President Aleksandar Vučić—has drawn accusations of supporting a “stabilitocracy”: sacrificing democratic standards for geopolitical stability and mineral access.

    While the EU insists on adherence to environmental safeguards and public consultation protocols, the silence from Brussels on political repression and opaque governance in Serbia has raised eyebrows. Ursula von der Leyen has pledged to “respect and preserve the beautiful nature of Serbia,” yet local residents see the Jadar initiative as a form of “green colonialism”—where rural areas are sacrificed for Western decarbonisation agendas.

    This case lays bare the contradiction at the heart of Europe’s green ambitions: balancing climate goals with ethical governance and local consent. If not resolved with genuine transparency and accountability, the EU risks not only undermining its credibility but also fueling resentment in a region already caught in a tug-of-war between East and West.

  • Rio Tinto Reevaluates Cost of Serbian Lithium Project Amid EU Backing and Local Opposition

    Rio Tinto Reevaluates Cost of Serbian Lithium Project Amid EU Backing and Local Opposition

    Rio Tinto is revising the estimated capital cost of its contentious Jadar lithium project in Serbia after it was designated one of the European Commission’s 13 strategic critical materials projects under the Critical Raw Materials Act (CRMA). Chad Blewitt, managing director of the Jadar mine, confirmed the update in an interview with Reuters on Wednesday.

    The project, initially valued at over €2.55 billion ($2.91 billion), is being recalculated to reflect EU environmental and human rights standards tied to its strategic status. “That will be reflected in the final capital cost,” Blewitt said, noting that no revised figure or timeline would be shared until the company secures a field exploitation licence.

    The Jadar project was halted in 2022 after mass protests over environmental concerns led the Serbian government to revoke Rio Tinto’s exploration permits. However, the Constitutional Court reinstated the licences in 2023, allowing the Anglo-Australian miner to resume planning.

    If realized, the mine could meet 90% of Europe’s current lithium demand, playing a central role in the continent’s green energy and digital transformation strategies. Despite this, local opposition remains strong, with activists threatening fresh protests and transport blockades if construction proceeds.

    “Whatever happens next will involve multiple stages of scrutiny and public consultation,” Blewitt emphasized, adding that the project could position Serbia as a pivotal supplier in Europe’s lithium supply chain.

    Rio Tinto is one of the few global mining giants heavily investing in lithium amid a market downturn. Its $6.7 billion acquisition of U.S.-based Arcadium Lithium and investments exceeding $1 billion in Chile signal a long-term bet on EV battery metals. While current lithium prices are depressed due to supply gluts, demand forecasts remain optimistic heading into the next decade.

  • Docville Cancels Lithium Mine Documentary Due to “Overestimated Sensitivity”

    Docville Cancels Lithium Mine Documentary Due to “Overestimated Sensitivity”

    The Docville documentary festival in Leuven has decided to cancel a planned screening and debate surrounding a controversial lithium mine in Serbia. The decision, described as being made “with a bit of a heavy heart,” was influenced by the subject’s sensitivity. The festival’s director, Frank Moens, confirmed to VRT NWS that this marks the first time such a cancellation has occurred at the festival.

    The cancellation applies to the debate titled “Ethical Mining: Is That Possible?” and the accompanying documentary, Not in My Country: Serbia’s Lithium Dilemma, directed by Peter Tom Jones of the KU Leuven Institute for Sustainable Metals and Minerals. The documentary explores the contentious development of a lithium mine in Serbia’s Jadar Valley.

    The European Union sees lithium mining as crucial for the green transition, especially for producing batteries for electric vehicles. However, Europe faces challenges in mining lithium domestically, with Serbia identified as a prime location. Yet, proposals to establish lithium mines have provoked significant opposition due to concerns over environmental impacts, such as polluted water, noise, and threats to biodiversity.

    Jones, who supports lithium mining as part of the green transition, highlights emotional and historical resistance within Serbia. Activists have voiced concerns about the mine’s potential to harm agriculture, water quality, and the local ecosystem, including threats to bees and other wildlife.

    Moens explained the difficulty of organising a balanced debate on the topic, as some parties refused to participate if specific individuals were included, and there were disagreements over moderators. Without a debate, the festival opted not to show the documentary. This contrasts with last year’s successful discussion about a Swedish lithium mine, which included perspectives from the indigenous Sami community. Moens admitted, “We probably underestimated it a bit.”

    Despite this setback, Docville still offers a wide range of documentaries, with the festival kicking off next Wednesday.

  • Serbia’s Environmental Ministry Sets Terms for Rio Tinto’s Jadar Mining Project Amid Criticism

    Serbia’s Environmental Ministry Sets Terms for Rio Tinto’s Jadar Mining Project Amid Criticism

    The Ministry of Environmental Protection of Serbia has defined the scope and content of the required environmental impact assessment (EIA) for the mining section of the controversial Jadar project, spearheaded by Rio Tinto. The multinational mining company is now obligated to address cumulative environmental impacts and propose mitigation measures as part of its EIA study.

    The decision has sparked backlash from environmentalist groups, including Marš sa Drine, which claim it violates public participation rules, neglects key safeguards, and prioritizes corporate interests. The group alleges that the Ministry’s approval bypassed crucial regulations, calling for a public lawsuit to challenge the legality of the move.

    Rio Tinto’s Serbian subsidiary, Rio Sava Exploration, submitted its request on September 17 to outline the EIA scope for an underground lithium and boron mining operation in western Serbia. The project encompasses several municipalities in Loznica and is part of a broader initiative to exploit the Jadarite mineral, a rare source of lithium and boron.

    Environmental watchdog RERI has criticized the fragmented approach, accusing Rio Tinto of “salami slicing” the project to sidestep a comprehensive assessment. RERI argues that dividing the project undermines transparency and diminishes adherence to European Union environmental standards.

    Following an analysis of 149 public comments, the Ministry has required Rio Tinto to explicitly list mitigation measures and adopt best available technologies in the EIA. The company has one year to submit the finalized study, which must detail all cumulative impacts, proposed solutions, and monitoring mechanisms.

    Critics remain unconvinced, warning that the decision favors Rio Tinto at the expense of public and environmental well-being. Marš sa Drine has urged citizens to mobilize against what it calls a breach of Serbian and international laws.

  • Rio Tinto Accused of Downplaying Environmental Impact of Serbia’s Jadar Lithium Project

    Rio Tinto Accused of Downplaying Environmental Impact of Serbia’s Jadar Lithium Project

    Rio Tinto is under fire for allegedly misrepresenting the environmental impacts of its Jadar project in Serbia, according to the Renewables and Environmental Regulatory Institute (RERI). The company’s environmental impact assessment request reportedly only covers the mining portion of the project, ignoring other critical elements like ore processing and waste disposal. RERI argues that this selective submission artificially reduces the perceived environmental risks of the entire project, which includes a lithium and boron ore processing plant and large-scale waste management.

    RERI claims that both Rio Tinto and Serbia’s Ministry of Environmental Protection are contradicting their own commitments to maintain high European environmental standards. By splitting the project into parts, a practice known as “salami slicing,” Rio Tinto may be attempting to secure faster permits while avoiding comprehensive environmental scrutiny.

    The current request leaves out significant details, such as the environmental impact of ore processing, waste generation, and water usage from the Drina River. RERI also highlighted the lack of information on how harmful by-products like lithium carbonate sludge would be managed. Mirko Popović, Programme Director at RERI, emphasized that by breaking up the project, Rio Tinto could reduce costs and bypass stricter environmental protection measures.

    The Environmental Protection Institute of Serbia had previously mandated that all phases of the Jadar project must be assessed together, yet this requirement appears to have been overlooked. This fragmented approach could allow Rio Tinto to proceed with mining activities without fully addressing the environmental impacts of the entire operation.

    The issue has sparked widespread concern about the protection of both human rights and the environment in Serbia, particularly given the reported irregularities in the assessment process. Opposition to the project has intensified, with 86 members of the Serbian National Assembly submitting a bill to ban lithium and boron mining, currently under debate.

  • Serbian Parliament Debates Ban on Lithium Mining Amid Rio Tinto Controversy

    Serbian Parliament Debates Ban on Lithium Mining Amid Rio Tinto Controversy

    On Monday, Serbia’s parliament began discussing an opposition-led proposal to ban lithium and borate mining, a move that would halt Rio Tinto’s contentious $2.4 billion Jadar lithium project in the western region of the country. The debate comes after Serbia reinstated Rio Tinto’s mining licence in July, two years after it was previously revoked following strong opposition from environmental groups.

    The reinstatement of the licence sparked nationwide protests, with demonstrators blocking roads and railways in protest of the potential environmental impact. If completed, the Jadar project could satisfy 90% of Europe’s lithium demand, solidifying Rio Tinto’s position as a leading global lithium producer. Lithium is an essential material in the production of batteries for electric vehicles and mobile devices.

    While the Serbian government argues that the mine will greatly benefit the country’s economy, environmental groups are concerned about the potential damage to land and water caused by industrial waste. The project, which may not begin until 2028, will undergo strict environmental reviews and public consultations, according to Rio Tinto.

    Serbia’s Minister for Mining and Energy, Dubravka Djedovic Handanovic, emphasized that the government would ensure Rio Tinto adheres to stringent international environmental standards. She warned that banning lithium mining could result in lost investments, jobs, and hinder Serbia’s plans to become a hub for electric vehicle and battery production.

    Opposing the project, Danijela Nestorovic, a member of the Ecological Uprising movement, called the proposed mining activities a grave environmental risk, asserting that Serbia’s future would not be endangered without lithium extraction.

    Despite the heated debate, the ruling coalition has a comfortable majority in parliament and has already signaled it will not support the opposition’s proposal. A vote is expected in the coming days, with environmental groups threatening further protests if the ban is blocked.