27th Jul 2021 18:01
(Alliance News) -Â Rio Tinto PLC on Tuesday said it has "great confidence" in the Jadar lithium-borates project in Serbia as it committed USD2.4 billion in funding.
"The Jadar project would scale up Rio Tinto's exposure to battery materials, and demonstrate the company's commitment to investing capital in a disciplined manner to further strengthen its portfolio for the global energy transition," the miner said.
Jadar, one of the world's largest greenfield lithium projects, remains subject to receiving all relevant approvals, permits and licences and ongoing engagement with local communities and the government.
First saleable production is expected in 2026 with ramp-up to full production in 2029. Lithium demand is forecast to grow 25% to 35% per year over the next decade, Rio Tinto noted.
At full production, the mine will produce around 58,000 tonnes of lithium carbonate, 160,000 tonnes of boric acid and 255,000 tonnes of sodium sulphate annually, making Rio Tinto one of the top ten lithium producers in the world. Based on this annual production of lithium carbonate, Rio Tinto aims to produce 2.3 million tonnes of lithium carbonate over the expected 40-year life of mine.
Rio Tinto Chief Executive Jakob Stausholm said the company has "great confidence" in the project and is ready to invest, subject to approvals.
"Serbia and Rio Tinto will be well-positioned to capture the opportunity offered by rising demand for lithium, driven by the global energy transition and the project will strengthen our offering, particularly to the European market. It could supply enough lithium to power over one million electric vehicles per year," said Stausholm.
The next steps for the project are seeking an exploitation licence and receipt of regulatory approvals. Construction is targeted to start in 2022.
Shares in Rio Tinto closed down 1.1% at 6,041.00 pence in London on Tuesday.
By Lucy Heming;Â [email protected]
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