Serbia cancels Rio Tinto鈥檚 lithium mining project

January 28, 2022
Issue 
Rio Tinto proposed mine in Serbia
Environmentalists say the Jadar lithium mine would have endangered one of Serbia鈥檚 most important archaeological sites and several protected species. Image: riotintoserbia.com

On the face of it, there seems to be little in the way of connection between the treatment of Novak Djokovic by Australian authorities and the cooling of the Serbian government towards Anglo-Australian mining company Rio Tinto. The mining giant was confident that it would, at least eventually, win out in gaining the permissions to commence work on its US$2.4 billion lithium-borates mine in the Jadar Valley.

Last year, Rio Tinto the project would 鈥渟cale up [the company鈥檚] exposure to battery materials, and demonstrate the company鈥檚 commitment to investing capital in a disciplined manner to further strengthen its portfolio for the global energy transition.鈥

The road had been a bit bumpy, including a growing environmental movement determined to scuttle the project. But the ruling coalition, led by the Serbian Progressive Party, had resisted going wobbly on the issue.

Then came the maligning of the world number one tennis player in Australia. Djokovic had been tormented by a brief spell of confinement in quarters normally reserved for refugees kept in indefinite detention, and was eventually defeated in the Federal Court and deported. During the course of events, his visa was cancelled twice, first by a member of the Australian Border Force, the next time by immigration minister Alex Hawke. Lynch mobs were thrilled that 鈥淣ovaxx鈥 Djokovic, that great threat to Australia鈥檚 vaccinated innocence, was finally on a flight home.

The Serbian government attempted to intervene. President Aleksander Vu膷i膰 made a plea to Scott Morrison鈥檚 government to resist cancelling Djokovic鈥檚 visa; the Australian Open was the Serbian tennis player鈥檚 favourite tournament, one he had won numerous times.

A diplomatic incident, more murmur than bark, was sparked. 鈥淚n line with all standards of international public law, Serbia will fight for Novak Djokovic,鈥 the Serbian president. But for an Australian government that has flouted international law and fetishised border control, the call mattered little.

In Serbia, Rio Tinto then faced a rude shock. The Vu膷i膰 government, having praised the potential of the Jadar project for some years, abruptly abandoned it. 鈥淎ll decisions (connected to the lithium project) and all licenses have been annulled,鈥 Serbian prime minister Ana Brnabi膰 flatly on January 20. 鈥淎s far as project Jadar is concerned, this is an end.鈥

Brnabi膰 insisted, somewhat disingenuously, that this decision merely acknowledged the will of voters. 鈥淲e are listening to our people and it is our job to protect their interests even when we think differently.鈥

This is a bit rich coming from a government hostile to industry accountability and investment transparency. The same government also infrastructure works on the jadarite mine before the granting of an exploitation permit.聽 Such behaviour has left anti-mining advocates such as Savo Manojlovi膰 of the NGO Kreni-Promeni why Rio Tinto was singled out over, for instance, Eurolithium, which was permitted to dig in the environs of Valjevo in western Serbia.

Zorana Mihajlovi膰, Serbia鈥檚 mining and energy minister, the environmental movement, accusing them of injecting politics into environmental issues and having no concern for people鈥檚 livelihoods or industrial development.

Rio Tinto had been facing an impressive grass roots militia, mobilised to remind Serbians about the devastating implications of proposed lithium mining operations. The Ne damo Jadar (We won鈥檛 let anyone take Jadar) group has unerringly focused attention on the secret agreements reached between the mining company and Belgrade.聽 Zlatko Kokanovi膰, vice president of the group, that the mine would 鈥渢hreaten one of Serbia鈥檚 oldest and most important archaeological sites鈥 and 鈥渆ndanger several protected bird species, pond terrapins, and fire salamander, which would otherwise be protected by [European Union] directives鈥.

Taking issue with Rio Tinto鈥檚 unflattering environmental record, numerous protests were organised and petitions launched, that has received 292,571 signatures. Last month, activists organised gatherings and marches across the country, including road blockades.

Djokovic has not been immune to the growing green movement, if only to lend a few words of support. In a December Instagram post featuring a picture of anti-mining protests, he : 鈥淐lean air, water and food are the keys to health.聽 Without [them], every word about health is redundant.鈥

Rio Tinto鈥檚 response to its critics was that of a seductive guest keen to impress: Give us permission to dig, and we will make you the envy of Europe, green and environmentally sound ambassadors of the electric battery and car revolution.

The European Battery Alliance, a group of electric vehicle supply chain companies, that the Jadar project 鈥渃onstituted an important share of potential European domestic supply鈥. The mine would have 鈥渃ontributed to support the growth of a nascent industrial battery-related ecosystem in Serbia, contributing a substantial amount to Serbia鈥檚 annual GDP鈥. Assiduously selective, the group preferred to ignore the thorny environmental implications of the venture.

The options facing the mining giant vary, none of which would appeal to its board. The company in a statement that it was 鈥渞eviewing the legal basis of this decision and the implications for our activities and our people in Serbia鈥. It may seek to bully Belgrade with a legal suit, a move that is unlikely to improve its already worn reputation. 鈥淔or a major mining company to sue a state is very unusual,鈥 Peter Leon of law firm Herbert Smith Freehills. 鈥淎 claim under the bilateral treaty is always a last resort, but not a first resort.鈥

Another option for the company will be a political gamble: hoping that April鈥檚 parliamentary elections in Serbia will usher in a bevy of pro-mining representatives. By then, public antagonism against Australia will have dimmed. The Serbian ecological movement, however, is unlikely to ease their campaign. The age of mining impunity in the face of popular protest has come to an end.

[Dr Binoy Kampmark was a Commonwealth Scholar at SelwynCollege, Cambridge.聽 He lectures at RMITUniversity, Melbourne.聽 Email: bkampmark@gmail.com]

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