Rio Tinto’s $3.6b Jadar lithium project set to be revived in Serbia

The Serbian government is set to approve Rio Tinto’s (ASX: RIO) $3.6 billion Jadar project in the west of the country, which would establish Europe’s largest lithium mine.

President Aleksandar Vucic is reportedly preparing to give the go-ahead two years after Belgrade called off the project.

The Jadar mine is forecast to produce 58,000 tonnes of lithium per year, believed to be sufficient to fuel 17% of electric vehicle (EV) production in Europe or approximately 1.1 million cars.

If completed, the project could start operating as early as 2028 and potentially supply 90% of Europe’s current lithium needs while helping elevate Rio into a leading lithium producer.

World-class asset

Rio said Jadar had the potential to become a world-class asset that could act as a catalyst for developing an EV value chain in Serbia.

“It could see the development of other industries and tens of thousands of jobs for current and future generations in Serbia,” the company said.

The Jadar deposits were discovered in 2004 and are believed to hold one of Europe’s largest reserves of lithium.

National concerns for the environment and public health that arose at the time of discovery meant it would be some years before the lithium could be mined.

Environmental petition

Serbian environmentalists collected 30,000 signatures during 2021 and 2022 in a petition demanding parliament enact legislation to halt lithium exploration in the country.

Green activists had issued repeated warnings that new mining projects would cause more pollution in Serbia, already one of Europe’s most polluted countries.

At the time, Rio denounced “a broad misinformation campaign based on defamatory elements advancing unsubstantiated claims” that the project would harm water resources, soil, biodiversity, air quality and human health.

Following massive protests, the Serbian government stopped the Jadar project for fears it would have “devastating effects” on the environment.

A string of new guarantees from Rio and the European Union looks set to address concerns over whether the necessary environmental standards would be met at the Jadar site.