Rio Tinto Reevaluates Lithium Mining Project Costs in Serbia
The company's Jadar lithium mining project faces cost reassessment amid environmental and social scrutiny.
Rio Tinto is currently reassessing the costs associated with its lithium mining project in Serbia, as indicated by project director Chad Blewitt.
The European Commission has labeled this project as one of 13 strategic initiatives for critical raw materials outside the European Union.
As of the last market evaluation, the project's budget was reported to exceed €2.55 billion.
Blewitt pointed out that the status of the project as a strategic initiative necessitates compliance with EU environmental and human rights standards, which will consequently impact the final capital expenditure.
Blewitt did not disclose revised cost estimates or a timeline for the Jadar project, originally slated to begin production in 2027, stating that Rio Tinto has yet to obtain the necessary exploitation permit.
He remarked, "Once we have that license, we can further update our project plans and assess costs.
Therefore, I do not wish to provide a definitive date."
If realized, the Jadar project could meet 90% of Europe’s current lithium demand.
However, it faces significant opposition, with demonstrators in Serbia threatening to block roads and railway lines if the project proceeds.
The project has elicited environmental concerns from green groups and many Serbian citizens, leading to mass protests in 2022. This unrest resulted in an initial government decision to revoke Rio Tinto's exploration licenses, a move later overturned by the Constitutional Court of Serbia.
Rio Tinto remains the only major mining company significantly focused on lithium projects, which are essential for batteries used in electric vehicles.
As the lithium market currently experiences a slowdown, with supply greatly outpacing the demand for batteries, it may take years to ascertain whether Rio Tinto’s investments in these projects will prove profitable.
Market projections for lithium demand, however, have shown a more positive outlook for the coming decade.
The European Commission has labeled this project as one of 13 strategic initiatives for critical raw materials outside the European Union.
As of the last market evaluation, the project's budget was reported to exceed €2.55 billion.
Blewitt pointed out that the status of the project as a strategic initiative necessitates compliance with EU environmental and human rights standards, which will consequently impact the final capital expenditure.
Blewitt did not disclose revised cost estimates or a timeline for the Jadar project, originally slated to begin production in 2027, stating that Rio Tinto has yet to obtain the necessary exploitation permit.
He remarked, "Once we have that license, we can further update our project plans and assess costs.
Therefore, I do not wish to provide a definitive date."
If realized, the Jadar project could meet 90% of Europe’s current lithium demand.
However, it faces significant opposition, with demonstrators in Serbia threatening to block roads and railway lines if the project proceeds.
The project has elicited environmental concerns from green groups and many Serbian citizens, leading to mass protests in 2022. This unrest resulted in an initial government decision to revoke Rio Tinto's exploration licenses, a move later overturned by the Constitutional Court of Serbia.
Rio Tinto remains the only major mining company significantly focused on lithium projects, which are essential for batteries used in electric vehicles.
As the lithium market currently experiences a slowdown, with supply greatly outpacing the demand for batteries, it may take years to ascertain whether Rio Tinto’s investments in these projects will prove profitable.
Market projections for lithium demand, however, have shown a more positive outlook for the coming decade.
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