Rio Tinto Commits Funding for Jadar Lithium 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. Jadar will be one of the largest industrial investments in Serbia, contributing 1% directly and 4% indirectly to GDP, with many Serbian suppliers involved in the construction of the mine. It will also be a significant employer, creating 2,100 jobs during construction and 1,000 mining and processing jobs once in production.
“We have great confidence in the Jadar project and are ready to invest, subject to approvals,” Rio Tinto Chief Executive Jakob Stausholm said. “Serbia and Rio Tinto will be well-positioned to capture the opportunity offered by rising demand for lithium, driven by the global energy transition and the project will strengthen our offering, particularly to the European market. It could supply enough lithium to power over 1 million electric vehicles per year. “The Jadar deposit and its unique mineral, Jadarite, discovered by Rio Tinto geologists in 2004 contains high-grade mineralization of boron and lithium, supporting a long-life operation in the first quartile of the cost curve for both products. Rio Tinto continues to work with a wide group of local and global experts across all aspects of the environmental, social and governance impacts and has done so for many years. For example, to date, it has finalized 12 environmental studies and more than 23,000 biological, physical and chemical analyses of air and water. This consultation is ongoing and will continue to inform our final submissions for approval.
The Jadar development will include an underground mine with associated infrastructure and equipment, including electric haul trucks, as well as a beneficiation chemical processing plant. To minimize the impact to communities, it will be built to the highest environmental standards, including utilizing dry stacking of tailings. This innovative method allows the dry tailings to be progressively reclaimed with vegetation and soil with no need for a tailings dam. Water management will be state of the art with a dedicated facility resulting in approximately 70% of raw water coming from recycled sources or treated mine water.
First saleable production is expected in 2026 at a time of strong market fundamentals with lithium demand forecast to grow 25%-35% per year over the next decade. Following ramp up to full production in 2029, the mine will produce about 58,000 mt of lithium carbonate, 160,000 mt of boric acid (B2O3 units) and 255,000 mt of sodium sulphate annually, making Rio Tinto one of the top 10 lithium producers in the world. Based on this annual production of lithium carbonate, Rio Tinto aims to produce 2.3 million mt of lithium carbonate over the expected 40-year life of mine.
The next steps for the project are seeking an exploitation license and receipt of regulatory approvals. This includes approval of the environmental impact assessment (EIA), which will be available for public for comment. The EIA is required for the commencement of works, with construction targeted to start in 2022.