Rio Tinto’s $2.55 billion lithium project remains in the balance

A massive early-stage lithium mining project in Serbia faces huge and spirited public oppositioncasting some doubt on the viability of a key component of Western Europe’s push for a “green transition” away from fossil fuels. Opposition to the Rio Tinto Group project is fueled by a hybrid engine powered by environmentalism and nationalism.

The size and intensity of the opposition was on full display earlier this month, as expected 24,000 to 27,000 protesters filled wide boulevards in Belgrade, singing “Rio Tinto exits Serbia” and “thou shalt not dig” and carrying signs saying “We do not give Serbia”. Others disrupted train travel by filling two of the city’s stations, some blocking the tracks.

For the past few years, the mining project has been a stop-and-go business. After Rio Tinto’s license got the green light 2019it was revoked in 2022, during the final period of general elections in Serbia — following months of massive protests like the one seen a few weeks ago. Then-Prime Minister Ana Brnabic said the decision was made out of respect for the protesters and stated: “We put an end to the Tinto rebellion in Serbia.”

In July, however, a court ruled the revocation unconstitutionaland the license was reinstated shortly after. Pressure from the European Union was likely to change course — Serbia wants to join the EU.

If it goes into production, Rio Tinto’s $2.55 billion The Jadar Valley mine in the western part of the country it would be the largest lithium mine in Europe, with filling potential 90% of Europe’s current lithium demand. It would also secure Rio Tinto a place among the world leaders in the mineral that is a critical ingredient in lithium-ion batteries.

“There is no green transition in Europe without this lithium”, Rio Tinto’s top dog in Serbia, Chad Blewitt, said New York Times. His company has already spent more than half a billion on land acquisitions and exploration, and it could be another two years before production begins. Rio Tinto (RIO) shares closed Friday at $61.28 and have traded between $59 and $75 over the past 52 weeks.

Opposition groups want a permanent, nationwide ban on lithium and boron mining. “We will not give up. The mine cannot be built on agricultural land“, said protester Mica Miliovanovic, 63 years old Reuters. “This has nothing to do with politics.” Separately, 25-year-old Angela Rojovic told Times, “I don’t need green cars. I need green apples and green grass.”

In a promotion video seeking to reassure Serbs of the mine’s economic benefits and minimal environmental impact, Rio Tinto says that “critical minerals are found below the surface, separated from water sources. About 200 kilometers of tunnels will link underground mining operations… while farming continues above the mine.”

However, some Serbs say their land is being exploited and their health is being put at risk to advance the goals of people outside the country. “(We) are afraid Serbia will be sacrificed to provide lithium for electric vehicles that almost nobody in Serbia can afford.” Co-director of the Green-Left Movement, Biljana Djordjevic, said BBC.

There is also a geopolitical element: For some, the mine is a litmus test separating those who want to align the country with the United States and Western Europe from those who want to maintain a relationship with Russia.. When the latest round of protests broke out, officials said the real goal was to topple the government of President Aleksandar Vucic — who himself said intelligence from the Russian Federation indicated a coup was in the works.

In addition to environmentalists, members of the ultranationalist, Russia-friendly People’s Patrol also have JOINED in the anti-mine protests. When Vucic decided to support the mine in July at the urging of the EU, it was seen as an indication of his intention to disengage from Russia.

German officials have pushed for the project, with Chancellor Olaf Scholz and Mercedes Benz executives visiting Belgrade last month. However, the German element is ruffling some feathers in Serbia. Dragan Karajcic, a politician who leads the villages in the vicinity of the mine, told for Times it was bubbling when the Germans assured the Serbs that the mine would be safe. He pointed to Nazi atrocities that took place near Draginac in 1941, with thousands of civilian executions following similar assurances of the safety of local residents.

Nebojsa Petkovic, a villager who traveled to Belgrade to lead the August 10 protests, told Times, “Let the Germans save the planet. We have to save ourselves.”

By Zerohedge.com

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