Jadar

Jadarite is a new mineral deposit containing lithium and boron that was discovered by our geologists in 2004 near Loznica in the Jadar Valley in Western Serbia, some 160 kilometres from the capital of Belgrade. The high-grade, large-scale deposit is a promising addition to the world’s supply of materials for low-carbon technologies, such as the batteries used for electric vehicles and renewable energy storage. We want to establish an underground operation to mine the deposit, and are currently working through the necessary regulatory and environmental approvals to secure permission to establish the operation. Rio Sava Exploration is a Serbian subsidiary of the Rio Tinto Group that is developing the Jadar project.

Lithium, the lightest of all metals, is proving to be an essential ingredient in many of the world’s low-carbon technologies. It doesn’t occur on its own in nature but is found combined with other minerals. The discovery of a high-grade, large-scale reserve of a new mineral that contains lithium presents exciting new opportunities for contributing to a more low-carbon future. It also promises to position Serbia as the European hub for green energy.

We employed several geological investigation techniques to certify the available reserves at Jadar, with drilling the primary technique used (drilling core and rotary drilling without a core). Holes were drilled over a licensed area covering 60km².

The Jadar deposit and its unique mineral, Jadarite, contains high-grade mineralisation of boron and lithium. Jadar will be capable of producing three products on an annual basis, all in powdered form:

• ~ 58,000 tonnes of refined battery-grade lithium carbonate
• 160,000 tonnes of boric acid
• 255,000 tonnes of sodium sulphate

These products are important to the production of large-scale batteries for electric vehicles and for the storage of renewable energy. Borates are used in solar panels and wind turbines and in many household products such as detergents and cosmetics, as well as in fibreglass insulation, glass for cell phones and in fertilisers. Sodium sulphate is used in the textile industry and in the production of powdered detergents and glass.

We entered the lithium industry through our Boron mine in California, where borates have been mined since 1927. In 2019, we established a demonstration project at Boron to recover battery-grade lithium from the boron waste piles and this has been used to test the capacity to progress to larger-scale production. Jadar will build directly upon the Boron experience and the two operations will be complementary.

We have also developed a new, innovative technology for the production of lithium carbonate and boric acid from the mined Jadarite ore, with a small-scale test plant developed at our research centre in Australia to test the new technology. A global team of experts has conducted some 2,000 tests to date to confirm the technical viability of producing the three products from the Jadarite ore. This has led to numerous improvements in the production process and in the health, safety and environmental protection processes.

Jadarite is a new mineral with no reference points and no known process anywhere in the world that could be used as a template for extraction, so the pilot plant was a critical part in understanding how Jadarite is best processed.

The pilot plant, developed over the past six years in Australia, is being shipped to Serbia because its primary purpose in Australia of developing and testing a viable extraction process is complete.

Having the pilot plant in Serbia opens up possibilities such as using it as a tool to train future Serbian operators as well as future research and development in Serbia.

Jadar is a resource in Serbia, for Serbians, and it is important that the knowledge, expertise and scientific know- how benefits Serbia.

This is absolutely not the case. This was not a decision that the Government of Serbia was involved in.

Once the pilot plant passed its tests at our Technical Innovation Centre, it was time to move it to Serbia. Having the pilot plant in Serbia opens up possibilities such as using it as a tool to train future Serbian operators as well as future research and development in Serbia.

Jadar is a resource in Serbia, for Serbians, and it is important that the knowledge, expertise and scientific know- how benefits Serbia.

Based on world class research and collaboration with the best academics, scientists and mining practitioners around the world there is the potential to develop a strong technical capability in Serbia.

Subject to all necessary approvals being obtained, construction of the mine would start in 2022 and take up to four years, with the first saleable production expected in 2026.

The mining operation will be constructed in an area of less than 400 hectares. This footprint incorporates both the underground mine and the surface industrial complex (the concentrate processing plant and the industrial waste storage facilities).

We build our mines to high levels of sophistication and safety and have installed cutting-edge technologies at many of our mines around the world. The Jadar mine is being designed to the highest industry standards, providing the best possible conditions in terms of the health, safety and welfare of workers. For example, the underground mine design includes ventilation with both cooling and heating infrastructure to moderate temperature variations and ensure optimal temperatures for working: one of the world’s only mines that uses this kind of system. All of the vehicles used in the underground mine will be powered by electricity, reducing emissions and improving the air quality in the underground working environment.

The mine is expected to have an operating life of at least 40 years. We aim to produce 2.3 million tonnes of lithium carbonate during this time.

We have committed US$450 million in pre-feasibility, feasibility and other studies in Jadar to understand the nature of the Jadar deposit. A further US$2.4 billion has been committed to constructing the proposed mine, subject to receiving all necessary approvals, permits and licences. The Jadar project is 100% owned by Rio Tinto.

The market fundamentals for battery grade lithium carbonate are strong, with lithium demand forecast to grow 25-35% per annum over the next decade. As a large lithium project, on the doorstep of Europe, Jadar is well placed to meet this demand. The Jadar project could supply enough lithium to power more than one million electric vehicles per year (assuming 60kWh battery size).

If approved, Jadar will be one of the largest industrial investments in Serbia, contributing one per cent directly and four per cent indirectly to GDP, and making it one of the country’s largest exporters. Many Serbian suppliers will be involved in the construction of the mine and we will also help to develop local businesses so that they can support the operations of the mine in the decades ahead. The Jadar mine will also be a significant employer, creating 2,100 jobs during construction and 1,000 mining and processing jobs once in production.

While it is still early days, this is likely. We recently signed a Memorandum of Understanding with European battery technology and manufacturing company InoBat to create a battery manufacturing and recycling value chain in Serbia. The collaboration will enable an important exchange of knowledge and information on lithium processing, recycling and technologies for the next generation of batteries. It will also encourage the development of a complete European lithium and electric vehicle battery chain that will harness local skills and promote cross-border interactions for the benefit of Serbia and other European economies that wish to collaborate. This directly supports European bids for technological independence. It also aligns with the global shift towards creating circular economies that maximise the use of our natural resources.

For many years now, we have been working with a group of more than 100 local and global external experts across all aspects of the environmental, social and governance impacts, including around 40 university professors from more than 10 faculties and scientific institutes. To date, 12 environmental studies have been finalised and more than 23,000 biological, physical and chemical analyses of soil, water, air and noise have been undertaken. These will inform the Environmental Impact Assessment studies, building a comprehensive picture of the environment before mining begins, predicting the cumulative impacts of the operations over time, and directing measures to minimise these impacts.

Based on the pre-feasibility study, the mine’s average water demand is estimated to be 6-18 litres per second, which translates to about 1.3 litres of water per one kilogram of product. As part of the Feasibility Study, a more advanced model of consumption is being developed that considers the variability of mine water inflow and weather conditions (rainfall) in different years, as well as the potential impacts of climate change.

The Jadar project is being designed to maximise the use of process water in its operations and to minimise the total volume of water that needs to be treated. Water management will be state-of-the-art, with a US$35 million dedicated wastewater treatment plant resulting in approximately 70% of raw water coming from recycled sources or treated mine water.

Water will be used from three sources:

• Mine water obtained through the regular drainage of the underground mine that is then treated
• Through the collection of surface run-off from the mining and process facilities (rainfall)
• By extracting groundwater from the alluvium deposited by the Drina River, near Lipnicki Sor. This area has been previously disturbed by gravel extraction and has little potential as a high-quality water source for drinking water.

Water will not be sourced directly from the Drina riverbed and, based on initial studies, no significant drop in groundwater levels is expected around the alluvial source itself. We are undertaking fieldwork to determine the quantity of groundwater that can be used without impacting the river, as well as any potential drawdown in the surrounding area. Any use of this area as a water source would be subject to necessary consents and permits, in accordance with the law.

Any water that is not reused will be treated in a state-of-the-art wastewater facility to meet strict environmental standards before being released into the river. The plant will process the water to Class II standard – the same quality as the Drina and Jadar rivers – using modern and efficient technologies, namely ultrafiltration using reverse osmosis and ion exchange. The volume of water entering the river from the treatment plant will be relatively low compared with the river’s overall flow: the Jadar river’s flow rate is on average 300 times higher than the inflow from the Jadar wastewater plant would be, and five times higher during extremely low waters.

It is estimated that the mine will generate 57 million tonnes of waste over its life. As a comparison, the largest mine in the Balkans has about 150 million tonnes of deposited waste. All waste will be carefully managed in compliance with Serbian and European regulations. Environmental scientists will be on-site, working closely with process safety and plant engineers, water and waste management experts and others to manage the systems and protect local environments.

The Jadar mine and processing facility will generate two types of waste:

• Rock material removed to access the ore body
• Industrial waste, including a mix of minerals from the ore body and minerals created during processing.

The mineral processing involves crushing and wet separation without flotation. Flotation is a specific method used to separate and concentrate ores that is commonly associated with wet slurry residue requiring storage in massive tailings dams. At Jadar, waste will be managed in a very different way: the industrial residue from the processing plant will be filtered under pressure and dried in a kiln to produce solid waste known as ‘filter cakes’, which can be safely transported and stacked to form a strong, stable landfill. Approximately 30% will be used to refill the underground mine once mining in an area is completed.

All waste will be carefully managed in line with local Serbian and European standards. The waste storage system will include a state-of-the-art system for monitoring the air, water and soil quality to ensure potential impacts to the environment are minimised.

A range of measures will be implemented, such as installing liners to prevent leaching, lead detection and groundwater monitoring, use of water trucks to miminise dust, landfill surface compaction, weather and dust emission monitoring, and progressive capping.

No. The properties of Jadarite, combined with technological innovation, mean that the ore will be processed at below 100 degrees Celcius. Because sulphuric acid is stable below 100˚C, the process will not create sulphur dioxide. In addition, the processing plant will include technology, such as scrubbers, that remove gases created during processing.

The mine design includes two key controls to minimise surface subsidence: backfilling of mine voids (using material made from cement, rocks and minerals); and incorporation of ore pillars. Based on the mine design, modelling estimates surface subsidence would be below 20-30cm. There was no risk of landslide identified during this modelling.

The mine infrastructure will be designed to withstand a once in 10,000 years flood event. This far exceeds design standards required by local law, which are based on a once in 500 years flood event.

The Jadar project anticipates sourcing certified green power exclusively, from renewable energy sources (i.e. power with associated Guarantee of Origin within the framework specified in the standards of European Association of Issuing Bodies and implemented in Serbia by EMS).

There are 52 permanently occupied houses in the project footprint, and a further 293 landowners whose land will be impacted by the mine. We are committed to negotiated agreements that are conducted in a transparent, sensitive and fair manner. Since the voluntary land acquisition programme began, there has been an extensive process of consultation and engagement through face-to-face meetings and community information days. The goal is for landowners to have the same or better quality of life and work compared to the one they had before the move. Particular consideration is given to livelihood impacts, vulnerable groups and transition support.

Every affected household will be supported in developing a tailored plan for these changes, including:

• Selective support for the replacement of agricultural land for those experience difficulties in securing such land
• Support for the modernisation of agricultural equipment
• Training and education to enhance employability
• Small business support, including prioritisation in project procurement processes.

There will also be support for community-level projects focused around developing agriculture, local training institutions and improved community infrastructure.

We have been engaging with local communities about the Jadar project since late 2019. This has been via public presentations, the establishment of information centres in Loznica and Brezjak, Open Day events in the information centres focusing on particular aspects of the project, and regular community meetings. Community members will also have the opportunity to provide feedback on the proposed project through the Environmental Impact Assessment process, as well as regular, ongoing consultation activities.

Jadar’s annual power consumption will rank around the low to middle range among Serbia’s industrial consumers. The mine’s power will be supplied through the regional high-voltage network (EMS operator), while the power supply of nearby communities is provided by the local low-voltage power grid (EPS operator). They are separate networks. We will finance both high-voltage connection and distribution system facilities that will become part of the EMS network, including 2.5 kilometres of transmission lines to the project site.

We have completed a traffic management study, with special emphasis on safety on local roads associated with the increased traffic created by the operations of the mine. Modelling was done in coordination with the leading international consultant Deutsche Bahn Engineering and Traffic and Transport Faculty. This has identified potential bottleneck road sections and options for by-pass roads. Rail transport studies have also been conducted with a view to converting as much truck transport to rail as possible. We put together an experienced team to review transport routes and recommend rail options to minimise impact on the community and improve rail safety.

The workforce target is for around 90% Serbian employees at Jadar. We estimate that approximately two thirds of all jobs will be highly skilled operator and maintainer roles, involving complex, technologically advanced equipment in either the underground mine or the processing facility. The Jadar mine will also need:

• Tradespeople such as electricians, welders and metal fabricators
• Technical specialists in areas such as processing, metallurgy, electrical, mechanical, automation and geotechnical engineering; data science; hydrology; geology; surveying; accounting; human resources; and asset management
• Supervisors and leaders.

The Jadar project offers many opportunities for local people in terms of both skills development and employment. Rio Tinto is developing employment and training plans and investigating partnerships with secondary schools, universities and technical colleges.