LONDON/MELBOURNE, Oct 9 (Reuters) – Rio Tinto (RIO.AX), opens new tab, (RIO.L), opens new tab has agreed to buy U.S. based Arcadium Lithium (ALTM.N), opens new tab for $6.7 billion, it said on Wednesday, a deal that will catapult it to become the world’s third largest miner of the metal used in electric vehicle batteries.

Already the world’s largest producer of iron ore, Rio is transforming itself into a processor of high end, low carbon raw materials essential for the energy transition. The market is currently oversupplied with lithium, but CEO Jakob Stausholm said Rio is confident that long-term demand will be strong.

Rio said it would pay $5.85 per share in cash for Arcadium, an almost 90% premium to its closing price of $3.08 per share on Oct. 4, the day Reuters exclusively reported a potential deal.

Rio’s London-listed shares were down 0.4% by 1054 GMT. Shares in U.S.-listed Arcadium jumped around 40% on Monday, after the companies confirmed negotiations.

Rio would gain access to lithium mines, processing facilities and deposits in Argentina, Australia, Canada and the United States to fuel decades of growth, as well as customers that include Tesla (TSLA.O), opens new tab, BMW (BMWG.DE), opens new tab and General Motors (GM.N)

Lithium prices have floundered due to Chinese oversupply and a slowdown in electric vehicle sales, resulting in miners of the metal emerging as attractive takeover targets.

Rio’s Stausholm told investors that by the end of the decade the company expects a shortfall in supply, with a more than 10% compound annual growth rate in demand through to 2040, boosted by electric vehicles and energy storage.

The current weak market was an opportunity to pick up top quality assets at the right price, Stausholm told Reuters.

“We really want battery-grade lithium, i.e. the processing as well. And then, of course, we like to be an operator, and if you take those criteria, you very quickly come to Arcadium,” he said.

“The way you should think about it is kind of a reverse takeover. This is not a case about cutting costs. This is a case about building faster and better,” he added.

The deal won’t make a material difference to Rio’s current capex plans of up to $10 billion in 2025 and 2026, Stausholm said.

For the whole article go to Reuters.

What do the pop star, the academic and the environmentalists have in common? Like the tens of thousands of people who’ve rallied across Serbia in recent weeks, they’ve all spoken out against the Anglo Australian mining firm Rio Tinto’s $2.4 billion plan to mine and process lithium in that country’s verdant Jadar Valley, near the town of Loznica. The company has said that the site could eventually produce 58,000 tons of lithium per day—enough to meet 90 percent of European lithium demand and power some one million electric vehicles. The Serbian government has eagerly backed the project. It’s also garnered the enthusiastic support of the European Union and the United States, which on Wednesday signed an agreement with Serbia for strategic cooperation in energy. The EU, especially, hopes it can help diversify a supply chain now heavily concentrated in China and secure the bloc easier access to a mineral that’s central to its electric vehicle–centric green industrial policy goals.

Many Serbians, though—including those who’d live closest to the project—worry it will devastate the region’s agricultural production and poison the drinking water for millions. Critics argue it promises few upsides for either local residents or the majority of Serbians. Demonstrators want the project canceled. It wouldn’t be the first time that’s happened: After mass protests in 2022 shut down cities and railways, Serbia’s government revoked its approval of Rio Tinto’s plan for the Jadar Valley site in advance of federal elections that April, blocking further development. On July 11, 2024, Serbia’s Constitutional Court ruled that the decision was unconstitutional, laying the groundwork for the government to let Rio Tinto move forward.

Alongside a new wave of protests has come a new, more intensive wave of repression. Once news broke that Severina had been stopped at the border—she was eventually allowed to pass—Serbian Interior Secretary Ivica Dačić said that she and other regional celebrities would be removed from “lists” of people whose public stances the government considers problematic. People who’ve participated in protests further report being questioned by police over Instagram posts, and might face criminal charges that could mean they spend years in prison. Rio Tinto is now attempting to have peer-reviewed research on the environmental impact of the Jadar project substantially changed or redacted, insisting—alongside high-ranking members of Serbia’s ruling party—that its authors are spreading “disinformation.”

Bojan Simiśić is the founder of Eko Straža, although his home wasn’t among those searched by police in August. Members of that group are now waiting to see whether the government will build a case against them for calling for a “violent change in the constitutional order,” a felony charge. Such serious charges are a new development since the last round of protests, Simiśić says. “In 2021 there were police at my door. They came just to warn me” not to organize or participate in protests, he said. More often, demonstrators were issued tickets fining them around 50 euros for minor infractions. “Now they’re getting more aggressive,” Simiśić added. “It’s not just about the mine. We have to fight for basic liberties to protest.” In response, Simiśić helped organize a protest that drew tens of thousands of people to the grounds of state-run media outlet RTS on September 1, opposing the mine, the government’s treatment of protesters, and the silence around both from Serbia’s tightly controlled media environment. Serbian officials did not respond to multiple requests for comment on this story.

At the end of last month, a website run by an “independent citizens’” group calling itself “Kopacemo” (We Will Dig) appeared, claiming to fight “misinformation.” The page features a registry of so-called “ecological terrorists,” including Matković and Simiśić. Profiles of several dozen alleged ecoterrorists feature stylized black and white pictures set against cyberpunk-ish green and black backgrounds. Descriptions list whether they’ve been arrested and take personal pot shots. Matković’s listing starts off by saying he “has a speech impediment and tics” and “can’t pronounce his Rs and Ls properly.” A profile for another anti-mining activist states that he “wears a bandanna over his head in a militant style,” which is “actually to cover the loss of his hair.” Vladimir Štimac, a former basketball player featured on the site, has now filed a criminal complaint against its anonymous creators. Though it’s still unclear who exactly is behind the site, the group did indicate on X that it would give power of attorney to fight Štimac’s charge to Vladimir Đukanović, a lawyer and member of the Serbian National Assembly with Serbian President Aleksandar Vučić’s’s ruling Serbian Progressive Party, or SNS.

The powerful governments backing the Jadar Valley project have been relatively quiet about the protests against lithium development in Serbia; the government’s crackdown on dissent; and ominous, anonymous threats to mining critics. That may be because of just how anxious they are to unlock sources lithium, a critical component in the batteries that power electric vehicles, cell phones, and other technologies. The Eurozone’s largest economy, Germany, is facing persistently high levels of unemployment. Its industrial sector has struggled amid low demand and high interest rates.

For the whole article go to The New Republic.

Belgrade revoked licences for Rio’s $2.4 billion Jadar lithium project in Western Serbia in January 2022 after massive environmental protests. If completed, the project could supply 90% of Europe’s current lithium needs and help to make the company a leading lithium producer.

Regarded as a critical material by the European Union and the United States, lithium is largely used in batteries for electric vehicles (EV) and mobile devices.

Speaking on the sidelines of the World Economic Forum in Davos, Vucic said he had “a difficult conversation” with representatives of Rio Tinto earlier on Wednesday.

“We are facing the question of whether the company will file a lawsuit against us or not,” Vucic told Serbian reporters. “I asked them not to take measures to protect their interests.”

For the whole article go to Reuters.

What happened?

Serbia has signed a letter of intent with the European Commission on a strategic partnership in the areas of batteries and critical raw materials, including lithium. The letter was signed in New York on September 22nd, when Serbia’s president, Aleksandar Vucic, met Maros Sefcovic, a vice-president of the Commission, but the agreement became public only after an investigation by the Danas newspaper.

Why does it matter?

The agreement suggests that the government has not given up on a plan to allow the mining of lithium at Jadar in western Serbia, despite having cancelled an agreement with the Anglo-Australian company Rio Tinto in January 2022 in the face of mass public protests about potential damage to the local environment. The letter of intent adds to existing circumstantial evidence of the government’s intention to press on. In September the government signed an agreement with the Slovak company Inobat, a partner of Rio Tinto, on construction of a battery factory in Cuprija.

The exploitation of lithium could potentially be highly lucrative for Serbia. The country contains 1.3% of the world’s known reserves of the metal, which is essential for the production of batteries for electric vehicles. The estimated value of Serbia’s lithium of €4bn and its extraction over the course of a decade could potentially provide hundreds of jobs and a steady stream of revenue for the government. The EU could also benefit from the development of the Jadar mine, which would allow a reshoring of a vital resource at a time of growing geopolitical tensions and competition for minerals access.

In pressing ahead, however, the government risks a political backlash. Environmental groups and residents of Jadar have come out in opposition to the letter of intent. They have accused Mr Vucic and the prime minister, Ana Brnabic, of being traitors to Serbia and lackeys of the EU and Rio Tinto. The public debate over the agreement could be damaging for the government ahead of the parliamentary election in December. The government has denied that it has concrete plans to exploit the Jadar mine and insists that the letter amounts to no more than a statement.

What next?

The likelihood is that the mining project will eventually go ahead, given the backing that it has from the government, the EU and Anglo-Australian interests. However, in a replay of the dynamics seen ahead of the April 2022 election, the government is likely to stall the plans, reviving them only once the December election is over.

The analysis and forecasts featured in this piece can be found in EIU’s Country Analysis service. This integrated solution provides unmatched global insights covering the political and economic outlook for nearly 200 countries, enabling organisations to identify prospective opportunities and potential risks.

the Serbian government’s decision to cancel the Jadar proposal.

*

Joint Statement – Press Release

Mars Sa Drine^[1] and Extinction Rebellion Serbia

Belgrade/Serbia 09.05.2022 – At the Rio Tinto AGM in Australia on 5 May 2022, the outgoing Chairman of the Board, Mr. Simon Thompson stated that “we very much hope that we will be able to discuss all of the options with the government of Serbia now the elections are out of the way.”^[2]

This statement undermines the Serbian people who stood their ground in the streets in 2021 against Rio Tinto. Their voice was reflected by the government’s decision on January 20 2022 to annul the Special Purpose Spatial Plan, Jadar; the legal basis for Rio Tinto’s project and all subsequent permits, including procedure to obtain the environmental permit. Prime Minister Ana Brnabic stated that “Everything has been annulled. This means we’ve met the demands of environmental protests and have put a full stop on Rio Tinto in Serbia.”^[3]

What’s more, over 37,000 notarized signatures have been gathered for a national citizen’s initiative against lithium and borate mining in just 20 days. Initiators will present the bill to parliament after the summer recess. Along with an existing petition of over 290,000 signatures, this shows overwhelming public support against lithium and borate mining. With this in mind Mr. Thompson’s statement is ever more displaced as it comes in total disregard for the will of the people. The Prime Minister herself said: “With this act, everything to do with Project Jadar and Rio Tinto is over. It’s finished.”^[4]

This press release contains exclusively the official government decree in Serbian^[5] and English^[6] languages, along with the cancellation of the EIA procedure.^[7]

“Serbia’s effort to transition into a politically stable country that finally works for and listens to its people, will be jeopardized if companies like Rio Tinto believe they can undermine democracy by flexing their muscles and trying to re-introduce nepotism. The government made its choice: it listened to the people.”  Bojana  Novakovic, Mars Sa Drine Collective

“Serbia will not be used to absolve the EU’s or Rio Tinto’s guilt for not having acted on climate change. The people of Serbia have recognized that food and water are more important than the profits of a multinational corporation, inconvenient as that may be for Rio Tinto.” Milica D. Zavrnot Extinction Rebellion Serbia

^[1] Marš sa Drine is a national campaign against the mining of lithium and borates in Serbia. We are a collective of over 20 NGOs, citizens, independent experts, activists from Serbia and beyond, united to protect the Jadar Valley and the rest of Serbia from the devastating effects of mining on fertile soil. Our mission is to support locals who protect their land against lithium & borate exploitation and the forced relocation that entails. We work based on social, environmental, economic and legal principles.

^[2] https://www.reuters.com/business/rio-tinto-keen-restart-talks-stalled-serbian-lithium-project-2022-05-05/

^[3] https://www.politika.rs/sr/clanak/497517/Brnabic-Ukinut-prostorni-plan-za-Jadar-i-sve-ostale-odluke

^[4] https://www.politika.rs/sr/clanak/497517/Brnabic-Ukinut-prostorni-plan-za-Jadar-i-sve-ostale-odluke

^[5] Serbian Version: https://www.dropbox.com/sh/drlsu1460xfj9fz/AAAd9wN4OM71zRvwxnWiFVu5a?dl=0

^[6] English Version: https://www.dropbox.com/sh/ztygwe99pyy4whp/AACCyDorgSuQ88laOkLns5TEa?dl=0

^[7] https://novaekonomija.rs/vesti-iz-zemlje/poni%C5%A1tena-sva-re%C5%A1enja-ministarstva-za-projekat-jadar

CRIMINAL CHARGES 

Against:

1.     Rio Sava Exploration 

2.     SPL

3.     Brezjak Petrol 

4.     Grafo Loznica

5.     More N.N. legal representatives and people in charge (?)

Re: criminal act of Environmental Pollution / Failure in taking measures to protect the environment / Violation of the environment  (all of these contain references to ARTICLE numbers but I am guessing you don’t need those)

Reasons:

–       On January 25^th, 2021 In Gornja Nedeljica – municipality of Loznica, near the river Jadar, on land plot no.101/2. At the location of the drainage canal to the river Jadar in case of flood is situated, the company acted contrary to the permits for conducting research works, by blocking and burying the canal for water drainage and flood defense with rubble and waste, and then placed a concrete pipe in it without the approval of the authorities, thus destroying the water management facility that serves primarily to protect against floods if the river Jadar floods and to prevent water from spilling into fields and households,

·       Here is a link to the video of that incident:

·       They did this in order to create a temporary road for their trucks to pass over. 

–       On January 25^th, 2021. In Gornja Nedeljica – municipality of Loznica, near the river Jadar, on plot no.101/2. During research work, the company acted contrary to the permits for conducting research. The material that was taken out of the ground, for which there is reasonable suspicion to believe that it contains dangerous substances that would damage the environment, was left unsecured and spilled over the field/s. On that occasion, due to rain, the extracted material melted, spilled and polluted the surrounding fields and watercourse. 

–       During 2020 and January 2021, on several occasions in a manner contrary to that specified in the Law on Roads and Traffic Rules, they performed emergency transport of heavy vehicles, unaccompanied by police officers, by order of the first defendant (the company). This transport was undertaken  by a truck owned by the company “SPL” with several axles of weight over 20 tons, which were loaded with machines for exploration work weighing over 30 tons. They were driving through uncategorized roads of Gornja Nedeljica and Brezjak, and on which occasion they crossed the bridge in Gornja Nedeljica, over which the transport of heavy machinery was prohibited, and by that, they caused damage and destruction of uncategorized roads and the bridge. 

Here is a video to show you the footage of those trucks: 

–       During 2018.and 2019, on several occasions, the defendants organized a transport of wastewater and materials generated during the exploration works to the city landfill of the city of Loznica, in a manner contrary to the Law on Transport of Dangerous Goods, Environmental Law, with the help of the company “Brezjak Petrol” owned by Dragan Tomic from Brezjak and the company “Grafo Loznica”, owned by Nela Jovanovic from Loznica, contrary to the permits for exploration works, as evidenced by the recorded data on entering the city landfill, by which they endangered the safety and health of people and led to pollution of the environment to such an extent that its elimination requires a longer period and high expenses.

–       During 2019, in front of the local community of Brezjak, they unloaded a large amount of waste that is dangerous for the environment and contains parts of samples from the soil of different chemical composition. The mentioned material was later taken away from that place, after reports from the locals.

Note – for any questions about chemicals you can call Dr. Dragana Djordjevic, she will provide you with a ton of info from the science community, as well as info on hers and her colleagues independent sampling and analysis. She is on the contact list you have in the PDF. She’s also the scientist who was for the project until she went to an open seminar, asked questions, and realized the company had inadequate answers, with very dangerous working plans.

–       In the area of the local community of Gornja Nedeljica, on plot no.259, owned by Jelica Bozic, they carried out exploration works contrary to the permits for exploration works. During the work they failed to adequately close a drill site from which, on the day of filing this criminal charge, the wastewater, which contains dangerous substances, was still spilling, and which remained improperly unsealed while polluting the environment, including groundwater, wells and field, which was ascertained by the Institute of Public Health, dated 17.05.2013, in which the expert opinion states that the sample does not comply with the Regulations given in the test report, and recommends closing the well, which was not done. 

–       In 2021, they encouraged residents of Gornja Nedeljica, from whom they had previously bought land, forests and houses, to carry out illegal logging by pointing out that no license or permit or registration  is required for logging. They carried out illegal logging of a large number of trees and then sold these trees to the company “Jare prom” from Lipnicki Sor, causing damage to the environment and the locals who still live in Gornja Nedeljica. The company “Srbija Sume” (Serbia Forests) also acted on the above-mentioned event, stating numerous irregularities, documenting them and filing criminal charges against the perpetrators, but not against the instigators. 

–       The defendants committed these criminal acts as co-perpetrators, acting intentionally, aware that their act was prohibited.