Environmental activists and opposition figures have raised serious concerns about the environmental and health impacts of the project, particularly in the agricultural region surrounding the city of Loznica, where Rio Tinto plans to extract lithium and boron. The opposition argued that the project would not be financially beneficial for Serbia, citing low mining royalties and the cost of government-subsidized infrastructure for the project.

The vote marks the first time the opposition officially presented its case in parliament. The Ecological Uprising movement, led by Danijela Nestorović, clarified that their proposed ban was limited to lithium and boron mining, despite claims by National Assembly Speaker Ana Brnabić that the law would halt all geological exploration projects.

Minister of Mining and Energy Dubravka Đedović Handanović countered the opposition’s arguments, stating that much of the agricultural land affected by the project is of low quality and that the government would manage mineral resources responsibly, maintaining high environmental and social standards. She emphasized that the demand for critical raw materials is growing, and Serbia must leverage its resources strategically.

Local activists and groups like Ne damo Jadar, part of the Association of Environmental Organizations of Serbia (SEOS), were outraged by the decision, claiming it is a declaration of war on the people. These organizations have been leading protests and warning of severe environmental damage to the Jadar valley.

Meanwhile, Rio Tinto has estimated that the project would generate EUR 180 million per year for Serbia in taxes and royalties. However, prominent Serbian economists have disputed these figures, suggesting the nation’s income would be negligible, especially when factoring in infrastructure costs.

The British government decided to drop its defense after a Supreme Court ruling earlier this year, which stated that planning authorities must consider the environmental impact of burning, not just extracting, fossil fuels when making decisions. This case is the first to be decided since that ruling, marking a significant precedent.

According to Friends of the Earth senior lawyer Niall Toru, the ruling against the mining company could have international ramifications, as similar challenges are being made against fossil fuel projects worldwide.

West Cumbria Mining, the company behind the project, argued that the mine would be a “net zero” mine, extracting coking coal for steel manufacturing rather than for energy production. However, Judge David Holgate ruled that the assumption of no net increase in greenhouse gas emissions was legally flawed.

West Cumbria Mining has stated it will review the implications of the High Court judgment and declined further comment.

Despite the British government dropping its defense, West Cumbria Mining, the project’s developer, continued to argue that the mine, intended to extract coking coal for steel manufacturing rather than electricity generation, would be a “unique ‘net zero’ mine.” However, Judge David Holgate rejected this claim, stating that the assumption that the mine would not result in a net increase in greenhouse gas emissions was legally flawed.

Handanovic highlighted that the mining giant must secure approvals based on the project’s environmental impact studybefore moving forward. The Jadar project, located in western Serbia, is considered one of the largest lithium reserves in Europe, with 158 million tonnes, equating to 17% of the continent’s total lithium reserves.

“If completed, the Jadar project could produce 58,000 tonnes of refined battery-grade lithium carbonate annually,” Handanovic said, noting that this would be sufficient to power one million electric vehicles and meet 90% of Europe’s current lithium demand. This would also position Rio Tinto among the top 10 global lithium producers.

Despite the potential benefits, Serbian President Aleksandar Vučić has emphasized that no mining operations will commence until guarantees from the world’s top experts are secured. Vučić stated, “There will be no digging, no changes in the field, nor will there be. Until we get all the guarantees ourselves, nothing will happen in the next 12 to 18 months.”

Last month, Serbia signed agreements with the European Union and Germany to provide EU members and key car manufacturers with exclusive access to Serbian lithium. These agreements followed a ruling by Serbia’s top court declaring the 2022 decision to revoke the Jadar project’s license unconstitutional.

Despite these developments, thousands of Serbians have taken to the streets to protest the project, with another major demonstration planned for Saturday in Belgrade. Handanovic questioned the protesters’ motives, suggesting that their arguments are more focused on challenging the government rather than genuine environmental concerns. She added that the project would help Serbia tap into its mineral wealth, including copper, zinc, lead, gold, and lithium, and gain access to valuable technical expertise.

Germany has had limited use of carbon capture and storage (CCS) but now estimates a need to capture 34 to 73 million tons annually by 2045. The new bill allows carbon-intensive industries, excluding coal-fired power plants, to utilize CCS. It also creates a legal framework for developing CO2 pipeline infrastructure. Companies can store carbon at the bottom of the North Sea or domestically, provided federal states permit it. Geologically, Germany has between 1.5 and 8.3 billion tons of CO2 storage capacity under its part of the North Sea and can store up to 20 million tons annually.

The hydrogen bill will fast-track the construction of infrastructure, import, and production facilities. This infrastructure will be granted the status of “overriding public interest,” prioritizing it in the approval process. Permitting procedures will be simplified and digitized, reducing court challenges to hydrogen projects and environmental impact assessments.

Germany aims to expand hydrogen use as a future energy source to reduce greenhouse gas emissions from highly polluting industrial sectors, such as steel and chemicals, which cannot be electrified. This shift should also reduce dependence on imported fossil fuels. In April 2024, the German government coalition agreed on a financing mechanism for the future hydrogen network, extending its construction period to 2037 and providing investor protection in case of bankruptcy.

MSP partners first announced the creation of the MSP Forum in March on the margins of the Prospectors and Developers Association of Canada (PDAC) Convention in Toronto.  The MSP Forum cements the MSP’s partnership with minerals-producing countries committed to advancing and accelerating individual projects with high environmental, social, and governance (ESG) standards. The MSP Forum provides a platform for MSP partners and Forum members to consider and advance both projects and policies. Together, they will promote diverse and resilient supply chains while supporting local industry and capacity.

The Project component of the MSP Forum, led by the United States, may include project information sharing among MSP partners, Forum members, and the private sector; presentations on critical minerals opportunities, technical collaboration, and more. The Policy Dialogue component of the MSP Forum, led by the EU, may include topics such as policies to boost sustainable production and local capacities; discussions on regulatory cooperation to foster fair competition and transparency; policies to foster the application of high ESG standards; and policies to promote and facilitate effective recycling.

Background

The MSP Forum builds on the EU’s Critical Raw Materials Package adopted in March 2023, which emphasised the need for more diverse and more sustainable CRM supply chains through new, mutually supportive international partnerships, such as the CRM Club. The EU has previously established raw materials partnerships with Canada (2021), Ukraine (2021), Kazakhstan (2022), Namibia (2022), Chile (2023), Argentina (2023), Zambia (2023), the Democratic Republic of Congo (2023) and the Autonomous Territory of Greenland (2023).

CRMs are indispensable for a wide set of technologies needed for EU strategic sectors such as the net-zero industry, digital, space and defence. While the demand for such critical raw materials has never been higher, it is expected to continue to grow driven by the green and digital transitions. For instance, EU demand for lithium used in electric-vehicles batteries and energy storage is expected to increase twelve-fold by 2030. Meanwhile, the supply of CRMs is confronted with rising geopolitical, environmental, and social risks and challenges.

Learn more about the MSP at:

https://www.state.gov/minerals-security-partnership/

https://ec.europa.eu/commission/presscorner/detail/fen/ip_24_1807

Photo@ European Commission

The Act, adopted by the Council of the EU on Monday, identifies two lists of materials including 34 critical ones and 17 strategic ones. It aims for the EU to extract 10 per cent, recycle 25 per cent, and process 40 per cent of its annual needs for the materials, which notably encompass lithium and nickel, by 2030.

The CCCEU said that while understanding the EU’s aim to enhance supply chain resilience, it urged the bloc not to disrupt global critical raw materials supply chains and value chains through non-market means to not affect the green and digital economic transformation.

The chamber highlighted the vast room for cooperation between China and the EU, stressing that “dependence is mutual.”

It urged the EU to objectively evaluate both sides’ positions in the global supply chain, refrain from politicizing trade issues, reduce market access barriers, encourage dialogue and cooperation, and provide a fair, non-discriminatory business environment for Chinese enterprises.

The Brussels-based CCCEU represents over 1,000 Chinese companies operating across the EU, with chambers in EU member states.

Stating that the aid was essential to promote the production of environmentally friendly steel, the commission deemed it necessary and fitting. It emphasized that the anticipated positive impacts, particularly in terms of reducing carbon emissions, outweighed any potential negative effects on competition and trade within the EU