Parliament of Serbia rejects lithium mining ban proposal

The National Assembly of Serbia voted against the opposition’s amendments to the Law on Mining and Geological Explorations that would ban the exploration, mining and processing of lithium and boron ores. Controversies that prompted massive protests are centered on Rio Tinto’s Jadar project near the city of Loznica in the western part of the country.

For the first time, the Serbian opposition officially presented its case in parliament against mining lithium and boron. Opponents of Rio Tinto’s Jadar project for a lithium mine and processing facility, led by local activists and environmentalists, are warning of risks to the environment and people’s livelihoods and health.

The opposition also claims that the project wouldn’t be cost effective because of a low mining royalty, subsidies and the costs for the government to build the necessary infrastructure. The site is in an agricultural area on the territory of the city of Loznica.

The proposal was rejected with 127 votes against and 84 in favor

The National Assembly of Serbia rejected a bill submitted by 86 opposition lawmakers with 127 votes against and 84 in favor. The amendments to the Law on Mining and Geological Explorations envisaged a ban on exploration, mining and processing of lithium and boron ores.

Notably, more than two years ago the Association of Environmental Organizations of Serbia (SEOS), activist group Kreni-promeni (Go-Change), which this year became a political party, and other environmentalists gathered more than 38,000 signatures in the form of a so-called people’s initiative for a ban. It legally obligated the country’s parliament to discuss the proposal, but it was ignored.

Two snap general elections later, opposition lawmakers submitted their own equivalent initiative last month. At the start of the debate, the lead MP, Danijela Nestorović from the Ecological Uprising (Ekološki ustanak), clarified that the ban was only for lithium and boron. Earlier, National Assembly Speaker Ana Brnabić claimed that the proposed law would halt all projects in Serbia involving geological exploration.

Minister Đedović Handanović: Proposition counters Serbia’s strategic interests

Minister of Mining and Energy Dubravka Đedović Handanović said the MPs that sponsored the bill offered no valid argument. Among other things, most of the agricultural land that would be affected by the mining activities within the Jadar project is in low-rank categories 5 and 6, she underscored. There are eight grades in total.

The proposition counters Serbia’s strategic interests and the campaign of falsehoods is continuing, Đedović Handanović added.

The Government of Serbia will manage mineral resources rationally, with a constant and enhanced control over the environmental impact, Minister Dubravka Đedović Handanović told parliament

Demand for critical raw materials grows every day, and the countries having them are racing to achieve international competitive advantage and position themselves better in geopolitical relations in the world, the minister asserted. She stressed that the government would manage mineral resources rationally, with “a constant and enhanced control over the environmental impact” and the implementation of the highest social standards.

During the discussion, state officials said there is currently no lithium and boron exploration anywhere in Serbia and that no reserves have been confirmed other than in the Jadar area.

Ne damo Jadar: Rejection of bill to ban lithium mining is declaration of war on people

The authorities have chosen a side that is opposite to the will of their own people, local association Ne damo Jadar, part of SEOS, said after the vote. Based in the villages affected by Rio Tinto’s project, the group led the last wave of nationwide protests.

“They declared war on the people this evening and we will act in accordance with it and organize to defend the Jadar valley and the entire country from such rule,” Ne damo Jadar warned.

Of note, Balkan Green Energy News has published and is regularly updating a chronological overview of the key events in the development of the Jadar project since 2001, when Rio Tinto arrived in Serbia.

Rio Tinto estimates Serbia’s income from Jadar project at EUR 180 million per year

Rio Tinto’s Managing Director of the Jadar Project Chad Blewitt told Serbian Insajder TV that the budget income for Serbia is estimated at EUR 180 million per year. In his words, the amount includes salary tax, mining royalties and corporate tax. Blewitt added that the company wouldn’t ask the government for subsidies.

He referred to an analysis by Ergo Strategy Group. Just last week, a group of prominent domestic economists cited data from the same firm from one year ago and concluded that Serbia would have neglectable income at best. Moreover, the math excludes the hundreds of millions of euros with which the government would fund the construction of the company’s entire infrastructure, they claimed in the paper.

A group of Serbian economists estimated budget income at only EUR 2.6 per capita per year, excluding infrastructure costs and subsidies

One of the authors is Professor Dejan Šoškić from the Faculty of Economics at the University of Belgrade, a former governor of the National Bank of Serbia.

In the 40 years of the lifespan of the planned lithium complex, budget income would amount to EUR 696 million in current euros, or only EUR 2.6 per capita per year, they calculated. Upon subtracting the costs of targeted public investments in the Jadar project, on behalf of Rio Tinto, and other subsidies for the electric mobility value chain, Serbia would earn nothing from the endeavor even though it carries huge environmental and financial risks, the economists warned.

They also highlighted the fact that the government wouldn’t have any share of ownership.