Rio Tinto to speed up giant Serbian lithium project

Rio Tinto to speed up giant Serbian lithium project
Checking cores at Jadar in western Serbia. / Rio Tinto
By bne IntelliNews July 24, 2017

Global mining group Rio Tinto and the Serbian government have signed a memorandum of understanding (MoU) on the implementation of the joint Jadar project. The project is intended to develop the world-class deposits of lithium-borate in Serbia’s Loznica, the government announced on July 24.

According to Rio Tinto, Serbia is the only place in the world where deposits of jadarite ore can be found. Jadarite is a new mineral discovered in Serbia in 2004 by geologists from Rio Sava, a subsidiary of Rio Tinto in Serbia, and contains lithium, which is in increasing demand for electric car batteries.

The Jadar project is a pre-feasibility stage borate and lithium project with considerable economic potential. According to Rio Tinto, if developed, the production could supply a significant proportion of global demand for lithium and borates - some estimates put its potential capacity at 10% of global demand. 

The MoU, signed by Serbia’s Minister of Mining and Energy Aleksandar Antic and executive director of Rio Tinto Simon Trot, will enable the formation of joint working groups in order to more efficiently develop the project through the study phase and the process of obtaining permits, in accordance with the law, the government said.

Rio Tinto has invested $90mn so far in the Jadar project, while the start of production is planned for 2023.

"The Jadar project is an important part of Rio Tinto’s growth portfolio," commented Rio Tinto Energy & Minerals chief executive Bold Baatar. "A project of this magnitude requires time and expertise to design and bring into operation. We can only do this with the support of the Serbian government and local community.”

According to Serbia’s Prime Minister Ana Brnabic, the Jadar project will significantly influence the further progress of Loznica and the region as a whole. Loznica is located in western Serbia, near the Bosnian border.

“Domestic and international experts are hired on the project, which, in addition to socio-economic parameters, also focuses on protecting the environment, because without it any further progress is unthinkable,” Brnabic said.

Demand for lithium is growing rapidly, in particular because of its use in the lithium batteries used to power electronic vehicles. This caused a spike in lithium prices in 2016, when the spot Chinese lithium price approached the $21,500/tonne mark, up from just $6,400/tonne in 2011. 

A report from commodities market research and consultancy company Commodity Inside forecasts demand for electric vehicles will “increase phenomenally over the next ten years, particularly in North America, Europe and North East Asia, creating a huge demand for lithium-ion batteries”, even though it also anticipates the amount of lithium metal requirement in a rechargeable battery will fall as new technologies are developed.

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