Rio Tinto has committed $2.4 billion to the Jadar
lithium-borates project in Serbia, one of the world’s largest
greenfield lithium projects. The project remains subject to
receiving all relevant approvals, permits and licences and ongoing
engagement with local communities, the Government of Serbia and
civil society.
The Jadar 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.
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.
Rio Tinto is committed to help develop local businesses so that
they can support the operation over the coming decades. It will
also be a significant employer, creating 2,100 jobs during
construction and 1,000 mining and processing jobs once in
production.
Rio Tinto Chief Executive Jakob Stausholm said “We have great
confidence in the Jadar project and are ready to invest, subject to
approvals. 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 one million electric vehicles per
year1.
“The Jadar deposit and its unique mineral, Jadarite, discovered
by Rio Tinto geologists in 2004 contains high-grade mineralisation
of boron and lithium, supporting a long-life operation in the first
quartile of the cost curve for both products.”
“We are committed to upholding the highest environmental
standards and building sustainable futures for the communities
where we operate. We recognise that in progressing this project, we
must listen to and respect the views of all stakeholders.”
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 we have finalised 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
minimise the impact to communities, it will be built to the highest
environmental standards, including utilising 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 annum over the next decade. Following ramp up to full
production in 2029, the mine will produce ~58,000 tonnes of lithium
carbonate, 160,000 tonnes of boric acid (B2O3 units) and 255,000
tonnes of sodium sulphate2 annually, making Rio Tinto one of the
top ten lithium producers in the world. Based on this annual
production of lithium carbonate, Rio Tinto aims to produce 2.3
million tonnes of lithium carbonate over the expected 40-year life
of mine.
The next steps for the project are seeking an exploitation
licence and receipt of regulatory approvals. This includes approval
of the environmental impact assessment (EIA) studies, which will
shortly be made available to the public for comment. The EIA is
required for the commencement of works, with construction targeted
to start in 2022.
1 Assuming 60kWh battery size
2 These production targets were previously reported in a release
to the Australian Securities Exchange (ASX) dated 10 December 2020,
“Rio Tinto declares maiden Ore Reserve at Jadar” (for battery-grade
lithium carbonate it was 55,000 tonnes). All material assumptions
underpinning the production targets continue to apply and have not
materially changed.
This announcement is authorised for release to the market by
Steve Allen, Rio Tinto’s Group Company Secretary.
riotinto.com
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210727005910/en/
Please direct all enquiries to
media.enquiries@riotinto.com
Media Relations, UK
Illtud Harri M +44 7920 503 600
David Outhwaite M +44 7787 597 493
Media Relations, Americas
Matthew Klar T +1 514 608 4429
Media Relations, Australia
Jonathan Rose M +61 447 028 913
Matt Chambers M +61 433 525 739
Jesse Riseborough M +61 436 653 412
Investor Relations, UK
Menno Sanderse M: +44
7825 195 178
David Ovington M +44 7920 010 978
Clare Peever M +44 7788 967 877
Investor Relations, Australia
Natalie Worley M +61 409 210 462
Amar Jambaa M +61 472 865 948
Rio Tinto plc
6 St James’s Square London SW1Y 4AD United Kingdom
T +44 20 7781 2000 Registered in England No. 719885
Rio Tinto Limited Level 7, 360 Collins Street Melbourne
3000 Australia
T +61 3 9283 3333 Registered in Australia ABN 96 004 458 404
Category: Jadar
Rio Tinto (ASX:RIO)
Historical Stock Chart
From Feb 2024 to Mar 2024
Rio Tinto (ASX:RIO)
Historical Stock Chart
From Mar 2023 to Mar 2024