Rio Tinto Commits $2.4 Billion to Lithium Project in Serbia -- Commodity Comment
July 27 2021 - 1:05PM
Dow Jones News
By Robb M. Stewart
Rio Tinto PLC has committed $2.4 billion to a large lithium
project in Serbia in a bid to beef up its exposure to battery
minerals.
On the investment
The Jadar lithium-borates project will produce battery-grade
lithium carbonate, a mineral used in large-scale batteries for
electric vehicles and storing renewable energy, as well as borates
that are used in solar panels and wind turbines.
Rio Tinto said the project would position it as the largest
source of lithium supply in Europe for at least the next 15 years,
and will be one of the largest industrial investments in Serbia as
well as a significant employer with the creation of 2,100 jobs
during construction and 1,000 mining and processing jobs once in
production.
The first saleable production is expected in 2026, which the
British-Australian mining company said would be a time of strong
market fundamentals with lithium demand forecast to grow 25%-35% a
year over the next decade. Following ramp up to full production in
2029, the mine will produce 58,000 metric tons of lithium
carbonate, 160,000 tons of boric acid and 255,000 tons of sodium
sulphate annually, it said.
The Jadar development will include an underground mine with
associated infrastructure and equipment, including electric haul
trucks, as well as a chemical processing plant.
Rio Tinto said the project remains subject to receiving all
relevant approvals, permits and licences and ongoing engagement
with local communities and the government of Serbia. The next steps
for the project are seeking an exploitation licence and receipt of
regulatory approvals, it added.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
July 27, 2021 12:53 ET (16:53 GMT)
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