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Rio Tinto In Serbia: The Jadar Lithium Project


Tuesday, 3 August 2021, 3:44 pm Article: Binoy Kampmark

8-10 minutes

  _____  

The company has been looking forward to this for some time. For an outfit
found wanting in dealing with inhabitants of a land whose culture it
eviscerated in a matter of hours in May last year, Rio Tinto could think
grandly about another future. The Anglo-Australian mining giant could add
its name to a sounder, more environmentally sensitive programme, join the
responsible future gazers and stroke the ecological conscience. Forget the
destruction
<https://www.counterpunch.org/2020/12/15/irresponsible-happenings-juukan-gor
ge-rio-tinto-and-the-never-again-report/>  of the Juukan Gorge Caves in
Western Australia. It was time to control the narrative.

Eyes have shifted to the Balkans. The company is promising
<https://www.riotinto.com/news/releases/2021/Rio-Tinto-commits-funding-for-J
adar-lithium-project>  $2.4 billion for the Jadar lithium-borates project in
Serbia provided it gets the appropriate permits. In the coming weeks, it
will transport a pilot lithium processing plant in four 40-foot shipping
containers, suggesting a sure degree of optimism. From its science hub
located on the outer parts of Melbourne, the company's research team claim
to have identified an economically viable method of extracting lithium from
the mineral jadarite.

A statement
<https://www.riotinto.com/news/releases/2021/Rio-Tinto-commits-funding-for-J
adar-lithium-project>  from the company outlined the importance of the Jadar
project. "Jadar will produce battery-grade lithium carbonate, a critical
mineral used in large scale batteries for electric vehicles and storing
renewable energy, and position Rio Tinto as the largest source of lithium
supply in Europe for at least the next 15 years. In addition, Jadar will
produce borates, which are used in solar panels and wind turbines."

Those at the company are already anticipating a nice public relations coup.
The project "would scale up Rio Tinto's exposure to battery materials, and
demonstrate the company's commitment to investing capital in a disciplined
manner to further strengthen its portfolio for the global energy
transition."

In terms of schedule
<https://www.electrive.com/2021/08/02/rio-tinto-to-mine-lithium-in-serbia/>
, Rio Tinto hopes to start construction of the underground mine in 2022,
with saleable production commencing in 2026. Full production is anticipated
three years later. The complement will comprise 58,000 tonnes of lithium
carbonate, 160,000 tonnes of boric acid and 255,000 tonnes of sodium
sulphate.

The company hopes to win over the Serbian authorities by promising rich
additions to the local economy and stroking the ego of strategic
significance. "It's not a huge mine," Sinead Kaufman, Chief Executive of
Rio's Minerals division, told reporters
<https://www.reuters.com/business/energy/rio-tinto-readies-ship-trial-lithiu
m-plant-serbia-2021-08-01/> , "but from a lithium perspective, it's going to
be the largest producer in Europe for at least ten years and bring lithium
to the market at scale." Estimates are put at 1% of gross domestic product
coming directly from Jadar itself, with 4% being the indirect contribution
to the Serbian economy. The mine will come with incidental additions
<https://www.just-auto.com/news/rio-tinto-spends-large-on-serbia-lithium-min
ing/> : relevant infrastructure and equipment, electric haul trucks, a
beneficiation chemical processing plant dealing with dry stacking of
tailings. In all, enough lithium will be available to power a million
electric vehicles.

All this rosiness cannot detract from the issue of environmental
sustainability. Rio promises
<https://www.electrive.com/2021/08/02/rio-tinto-to-mine-lithium-in-serbia/>
that a commissioned environmental assessment impact will be made available
for comment "shortly". "We are committed to upholding the highest
environmental standards and building sustainable futures for the communities
where we operate," states
<https://www.afr.com/companies/mining/rio-tinto-dangles-us2-4b-lithium-carro
t-in-front-of-serbia-20210728-p58dj9>  the company's CEO Jakob Stausholm.
"We recognise that in progressing this project, we must listen to and
respect the views of all stakeholders."

These statements are at odds with reality, both current and historical. Rio
Tinto's Serbian subsidiary firm Rio Sava Exploration is currently facing
charges
<https://balkaninsight.com/2021/07/14/serbia-green-ngos-file-charges-against
-lithium-mining-giant/>  by two Serbian NGOs, the Coalition against
Environmental Corruption and the Podrinje Anti-Corruption Team, PAKT, citing
violations of environmental regulations since 2015.

In fact, Rio's conduct has produced something of a green awakening in
Serbia. A disparate number of environmental groups, academics and
politicians have found rare common ground. In June, the Serbian Academy of
Arts and Sciences sent a letter
<https://balkangreenenergynews.com/academician-stevanovic-sanu-rio-tintos-ja
darite-mine-could-cause-irreversible-damage/>  to Serbian Deputy Prime
Minister Zorana Mihajlović outlining the grave implications of permitting
the project to go ahead. "The mine would cause great and irreversible damage
not only to the area where it would be located, but to the entire country."
The location of the mining complex would threaten agricultural land,
forests, meadows and the water supply areas in Mačva. "Tailings with toxic
residues from ore processing would span over 160 hectares."

Last month, protesters gathered at Loznica to vent their concerns. At the
gathering, Marijana Petković of the Ne Damo Jadar initiative gave an insight
<https://balkaninsight.com/2021/07/29/rio-tintos-planned-jadarite-mine-spark
s-protest-in-western-serbia/>  into the way Rio dealt with locals. "They
came in 2004, they never answered us as people on three key things: what to
do with the noise; with the water; what is the minimum amount of pollution."

An online petition
<https://peticije.kreni-promeni.org/petitions/stop-rudniku-litijuma-rio-tint
o-mars-sa-drine>  against the mine has also attracted 125,685 signatures. It
describes the Jadar Valley as having "Serbia's fertile land" marked by
"thousands of sustainable multi-generational farms." It speaks to fears
about the imminent poisoning of water sources. "The process of separating
chemically stable lithium from jadarite ore involves the use of concentrated
sulphuric acid." The process would be undertaken some 20km from the Drina
River using 300 cubic metres of water per hour, with the chemically treated
water returned to the Jadar River. Entire basins of water, and water sources
beyond Serbia, risked being contaminated.

The petitioners also take issue with the lack of transparency on
negotiations between Rio Tinto and the Serbian government, fearing
"potential corruption on the government's behalf." Some homework of the
company's sketchy record on the environment was also recounted, including
"the destruction of a 45,000 year old sacred Australian Aboriginal cave."

Rio Tinto is a company loose with figures, selective in its consultative
process (some call it bribery) and its accounts. The London Mining Network
documents
<https://londonminingnetwork.org/2010/04/rio-tinto-a-shameful-history-of-hum
an-and-labour-rights-abuses-and-environmental-degradation-around-the-globe/>
a record replete with ruthless indifference, environmental crimes, and human
rights abuses. At the company's 1937 annual general meeting, chairman Sir
Auckland Geddes expressed
<https://londonminingnetwork.org/2010/04/rio-tinto-a-shameful-history-of-hum
an-and-labour-rights-abuses-and-environmental-degradation-around-the-globe/>
his gratitude to the fascist forces of Spain's General Francisco Franco, who
had crushed a mining revolt that threatened the smooth operations of the
company. "Miners found guilty of troublemaking are court-martialed and
shot," he noted with approval.

The company is currently the subject of an investigation
<https://www.ft.com/content/a63f4753-8bfa-4b01-81f7-dd83fd06b3ee>  by the UK
Financial Conduct Authority (FCA) on suspected breaches of disclosure rules
on the value of Mongolia's Oyu Tolgoi mine, the company's biggest copper
growth project. The expansion of the mine, coming in at $6.75 billion, is
$1.4 billion higher than Rio's own estimate in 2016.

Serbia's president Aleksandar Vučić, sufficiently troubled by the
indignation, is floating the idea of putting the project to a referendum.
This is unlikely to trouble Rio Tinto, whose promises of economic manna for
Serbia through jobs and placing it at the forefront of the lithium-electric
car revolution is bound to mask potential environmental depredations. As
with its record in other countries, this mining giant's understanding of
consultation and accountability is estranged from that of a local populace
treated as nuisances rather than citizens.

Dr. Binoy Kampmark was a Commonwealth Scholar at Selwyn College, Cambridge.
He lectures at RMIT University, Melbourne. Email: [email protected]
<mailto:[email protected]> 

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