MINEX Forum

Tag: Rio Tinto

  • 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.

  • 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.

  • Rio Tinto Enters Negotiations to Avert Strike at Oyu Tolgoi Copper Mine

    Rio Tinto Enters Negotiations to Avert Strike at Oyu Tolgoi Copper Mine

    Rio Tinto Ltd has initiated negotiations to prevent a strike at its Oyu Tolgoi copper mine in Mongolia. The potential strike arises from a dispute over worker salaries and benefits. Union representatives and government officials are actively participating in discussions to resolve the issues.

    NGO OT Watch reported to Reuters that workers are demanding wages comparable to those paid for similar work at other Rio Tinto mines. Currently, workers earn a “miserable $1,596 per month for work far from home,” OT Watch stated.

    A Rio Tinto spokesperson emphasized the company’s commitment to finding a resolution that benefits all parties involved. Oyu Tolgoi is a significant component of Rio Tinto’s copper operations, contributing substantially to the company’s output. The mine is a crucial asset in Mongolia, with significant investments and collaborations with the local government and workforce.

  • Activists Demand Serbia Halt Rio Tinto’s Lithium Mining Project

    Activists Demand Serbia Halt Rio Tinto’s Lithium Mining Project

    In western Serbia, a strong movement against Rio Tinto’s jadarite mining project near Loznica is demanding a ban on the exploration and mining of lithium and boron. Activists warned that if the Government of Serbia does not comply, they will radicalize their resistance through railway blockades. The protests have attracted participants from Jadar, Loznica, and various cities in Serbia and Bosnia and Herzegovina, particularly those from areas with existing or planned mining projects. The event was organized by the local group Ne damo Jadar along with Marš sa Drine, Suvoborska greda, and other associations under the Association of Environmental Organizations of Serbia (SEOS).

    Marijana Petković, representing Ne damo Jadar, highlighted that activists found evidence of toxic exploration drilling fluid being disposed of at the city landfill. On July 1, the government will receive a formal demand to ban lithium and boron exploration and mining nationwide. The movement has vowed to start blockades on railroads and other key points if the demand is not met within 40 days. This follows a 2022 petition with over 38,000 signatures, which the National Assembly ignored despite being legally obliged to discuss it.

    Professor Ljiljana Tomović from the University of Belgrade emphasized that stopping the exploitation of jadarite is crucial to prevent damage to the flora, fauna, habitats, and ecosystems in the Jadar Valley. Similarly, Professor Slobodan Vukosavić from the Faculty of Electrical Engineering in Belgrade warned of the risk of wastewater contamination from the mine affecting the Mačva area. He stressed the importance of water amid climate change and suggested future conflicts would be over water, not lithium.

    Activists from Bosnia and Herzegovina, facing similar mining threats, joined the protest in Loznica. Adi Selman from Karton revolucija spoke passionately about protecting the Gornje Nedeljice, Loznica, the Drina and Sava rivers, and other threatened areas. Dragan Simović, a farmer from Srednja Dobrinja, highlighted the adverse effects of mining in other regions like Bor and Majdanpek and urged for intensified protests and a ban on mining.

  • Comparing Norway’s Oil Wealth to Serbia’s Lithium Potential

    Comparing Norway’s Oil Wealth to Serbia’s Lithium Potential

    n a recent discussion, Ana Brnabić, President of the Serbian Parliament, likened Serbia’s lithium reserves to Norway’s oil wealth, emphasizing the transformative economic potential. President Aleksandar Vučić and Mining Minister Dubravka Đedović Handanović have also supported this view, particularly focusing on the Jadar lithium project by Rio Tinto. This project, which could significantly boost Serbia’s economy, faces strong opposition from environmental groups. Critics argue that Serbia lacks the robust political and regulatory framework that enabled Norway’s successful oil industry.

    Norway discovered oil in the 1960s, leading to substantial GDP growth and the creation of a significant welfare state funded by oil revenues. Serbia aims to replicate this model through lithium mining, essential for the booming electric vehicle (EV) market. Rio Tinto projects that the Jadar mine could generate 180 million euros in annual state revenue. However, the environmental impact and public resistance present major challenges. Serbia’s political landscape and regulatory systems are not as well-established as Norway’s, complicating efforts to harness lithium’s potential sustainably.

    The Jadar project involves extracting lithium from jadarite, a unique mineral found only in Serbia. The project has the potential to make Serbia a key player in the global lithium market, essential for EV batteries. However, effective management of environmental concerns and community relations is crucial for the project’s success.

  • Serbia Set to Approve Rio Tinto’s Lithium Mine, Boosting Europe’s Electric Vehicle Industry

    Serbia Set to Approve Rio Tinto’s Lithium Mine, Boosting Europe’s Electric Vehicle Industry

    Serbia is on the verge of granting Rio Tinto permission to develop Europe’s largest lithium mine, signaling a significant advancement for the continent’s electric vehicle sector. President Aleksandar Vucic has expressed confidence in securing the necessary guarantees from both Rio Tinto and the European Union to address environmental concerns regarding the Jadar site in western Serbia. Vucic expects to make a formal announcement about the project next month, provided that the demands for the entire value chain and robust environmental protections are met. The mine, projected to open in 2028, aims to produce 58,000 tonnes of lithium per year, which would account for approximately 17% of European electric vehicle production, equivalent to around 1.1 million cars. Vucic believes this venture could be transformative for Serbia and the broader region.

    The Serbian government revoked Rio Tinto’s licenses in January 2022 due to protests led by environmental groups. Concerns over water pollution, displacement of residents, and post-mining area damage prompted the demonstrations, which resulted in blocked highways and bridges across the country. However, with President Vucic’s ruling SNS party winning most of the recent municipal polls, the government perceives an opportunity to revive the project. The potential revival of the deal with Rio Tinto, coupled with EU involvement, serves as a significant indication of Serbia’s geopolitical alignment as it attracts economic and political attention from China, Russia, and Gulf nations. Serbia has been an EU candidate country for over a decade, but its accession process has faced delays due to concerns about the rule of law and corruption.

    President Vucic confirmed that the intention was never to hand over the mine to Chinese interests, as some EU officials had feared. He emphasized Serbia’s commitment to working with the European Union. Vucic also claimed that certain European states initially tried to undermine the Jadar deal but eventually changed their stance. The absence of domestic lithium production in Europe makes the Jadar mine crucial, as it could meet 13% of the continent’s projected demand by 2030. The project would significantly contribute to Serbia’s economy, potentially adding between €10 billion and €12 billion ($19.4 billion) to the annual gross domestic product.

    Despite the potential resurrection of the deal, opponents of the mine, such as the environmental group Go Change, remain determined to continue their fight. They vow to defend ecological standards and constitutional rights, expressing their commitment to organizing further protests if necessary.

    Chad Blewitt, Rio Tinto’s managing director for the Jadar project, stressed the company’s efforts to gain public support through extensive community engagement sessions. Rio Tinto released a draft environmental assessment that outlines potential impacts on water, air, and soil, emphasizing their commitment to transparency and compliance with Serbian and EU environmental standards.

  • Rio Tinto Affirms Commitment to Jadar Project Amid Environmental Concerns

    Rio Tinto Affirms Commitment to Jadar Project Amid Environmental Concerns

    Rio Tinto’s Country Head for Serbia, Marijanti Babic, expressed unwavering confidence in the Jadar project, emphasizing its potential to meet the highest environmental standards. In an interview with Novosti, she stressed the project’s significance, positioning it as one of Europe’s most promising lithium deposits, poised to elevate Serbia’s role in the global green transition. Babic underscored the necessity of adhering to Serbian laws and European Union regulations, particularly highlighting the introduction of a “battery passport” in Europe to ensure the sustainability of materials used in electric vehicle batteries. Addressing investment and job creation prospects, Babic revealed that the planned investment for the project amounts to 2.55 billion euros, with potential to create 3,500 jobs based on 2011 data. Moreover, she estimated that the state could earn approximately 180 million euros annually from taxes and mining rent, constituting about one percent of state budget revenues. While Babic clarified that no agreement on the project’s realization has been signed yet, only a memorandum of 2017 exists, outlining a framework for cooperation in its implementation.

  • Rio Tinto Secures Power Supply Agreement for Oyu Tolgoi Mine

    Rio Tinto Secures Power Supply Agreement for Oyu Tolgoi Mine

    Rio Tinto Ltd announced on Monday its agreement with Mongolia to provide power to its Oyu Tolgoi copper-gold mine using a state-owned coal-fired power plant at Tavan Tolgoi. With the Mongolian government holding a 34% stake and Rio’s Turquoise Hill Resources with a 66% stake, the collaboration involves amending the current power supply agreement by March 2021, with construction of the coal-fired power plant slated to begin by July 2021. The plant, intended to support Oyu Tolgoi’s power needs, is anticipated to be operational within the next four years. Until then, power supply to the mine and underground project will continue as per the existing terms.

  • Rio Tinto Takes Cautious Approach to Lithium Amid Price Volatility

    Rio Tinto Takes Cautious Approach to Lithium Amid Price Volatility

    Rio Tinto remains cautiously optimistic about the future of lithium, driven by increasing demand for batteries in electric vehicles, but CEO Jakob Stausholm has indicated that the company will not pursue major acquisitions in the sector. Instead, Rio Tinto plans to focus on improving lithium extraction technology, as reported by Reuters.

    While acknowledging the growth potential of lithium, Stausholm emphasized the volatile nature of the metal’s price. Despite this, Rio Tinto, known primarily as the world’s largest iron ore producer, is among the few major mining companies investing in lithium. In contrast, competitors like BHP have refrained from significant investments in the electric vehicle battery sector.

    The recent decline in demand for electric vehicles has led to a significant drop in lithium prices, with Benchmark Mineral Intelligence reporting an over 80% decrease in lithium prices over the past year. This downturn has forced many producers to halt production and cut jobs.

    Speaking at the annual Prospectors & Developers Association of Canada (PDAC) conference in Toronto, Stausholm reiterated Rio Tinto’s stance on the volatile nature of battery material prices.

    Rio Tinto’s current lithium projects include the Rincon project in Argentina, where the company plans to construct a lithium carbonate plant with an annual capacity of 3000 tons for battery production, expected to commence by the end of 2024. Additionally, Rio Tinto owns the Jadar lithium project in Serbia, although the project has faced challenges after Serbia revoked its license in 2022 due to environmental concerns.

    Stausholm also expressed optimism about decreasing inflation in Western countries, foreseeing potential cost stabilization for the company in the upcoming year.