01 Jul The Real Cost of Lithium: What is Fueling the Widespread Resistance to Rio Tinto Mines in Serbia?

Milica Blagojević

IE School of Economics, Politics and Global Affairs

IE University, Madrid, Spain

E-mail: mblagojevic.ieu2023@student.ie.edu

Abstract

This paper examines the polarising Jadar lithium mining project in W estern Serbia, proposed by the multinational company Rio Tinto. Three main pain points of the project are explored: the environmental, economic and social aspects. In order to find the balance between company statements and environmental activist’s claims, the paper synthesises findings from both sides of the disagreement. Environmental assessment showed clear discrepancies between Rio Tinto reports and Đorđević et al. (2024) research regarding the risks to water quality, agricultural soil pollution and even air pollution. Economic projections also revealed stark differences between the statements by the Ministry of Finance, Rio Tinto reports and expert opinions, concluding that at best, the company could create an indirect 4% increase in the country’s GDP, while at worst, the project could cost the local population billions over the following decades. The social aspect, outlined through widespread public opposition, presents a strong argument for the discontinuation of the project. The paper concludes with a proposal to reevaluate the project’s cost-benefit analysis, focusing on Serbian national interests.

READ THE ENTIRE ARTICLE HERE (Page 54-72)

Keywords: Lithium, Rio Tinto, Project Jadar, Environmental Economics, Green T ransition