Rio Tinto has moved its Jadar lithium mining project in Serbia into a care and maintenance phase, according to internal documents obtained by Bloomberg. The move, affecting a project valued at $2.95 billion, is one of the first major decisions by the company’s new CEO, Simon Trott. In an internal memo, Rio Tinto cited delays in obtaining necessary permits as the primary reason for shifting the project to a dormant status, noting that it was no longer feasible to maintain the same level of spending and resource allocation under current conditions.
Despite the suspension, Rio Tinto continues to regard Jadar as a significant lithium deposit with the potential to support both Serbia’s and Europe’s energy transition. The European Union has designated the project as strategically important, highlighting its role in diversifying supply sources amid a global race for lithium and other critical metals, particularly as China’s influence in these markets grows.
In a statement to local media, Rio Tinto confirmed the memo’s contents and emphasized its ongoing commitment to Serbia. The company said it will conduct a thorough assessment of project costs and resource requirements, support employees through the transition, and fulfill legal obligations to the local community and landowners in the Jadar Valley.
Since assuming the CEO role in August, Trott has aimed to streamline operations and refocus investments on faster-growing segments. He reorganized the business into three divisions covering iron, aluminum and lithium, and copper. The internal memo also indicated that the head of the lithium division, Paul Graves, will be leaving the company as part of the restructuring.
Last year, Rio Tinto expanded its lithium portfolio with the $6.7 billion acquisition of Arcadium Lithium, securing stakes in three development projects, and it is advancing the Rincon lithium project in Argentina. At the same time, an oversupplied market has driven lithium prices roughly 85 percent below their 2022 peak.
Trott is scheduled to deliver his first strategic update on December 4 at Rio Tinto’s Capital Markets Day in London.
Source: Balkan Green Energy News
