The Serbian prime minister revealed that as local community protests continue, Serbia will decide whether Rio Tinto can continue to develop lithium mines in the country after the general election in April.
(Rio Tinto), a global mining company, has pledged to invest $2.4 billion in 2021 to develop a lithium borate project near Loznica in the western Jadar valley.
The proposal aroused widespread opposition from the local community to environmental damage, which eventually led to the cancellation of a plan by the local municipality.
"the project will be suspended until we agree on what we want to do in Serbia, whether or not we want to go further in the exploration, development and use of lithium," Ana Brnabic said in an interview on Tuesday.
"I think this is a decision for the future, and if it is put forward by the political elite who will lead the country in the next four years, I believe it will be smarter, better and fairer," she added.
Rio Tinto said it remained committed to developing and promoting Jadar, to adhere to the highest environmental standards and had regular conversations with local communities throughout the project.
"We will continue to work with the Serbian government and many local and global experts to study all aspects of the environmental, social and governance impact of the Jadar project." It said in an email statement.
As governments around the world promote the transition to a low-carbon economy, there is a high demand for metals such as lithium, which are used to make electric car batteries.
Serbia's populist ruling coalition, led by the Serbian Progressive Party (SNS), has come under fire for supporting lithium and copper mining, eroding the party's comfortable majority in the 2020 vote.
The coalition is expected to hold parliamentary and presidential elections on April 3, but the date has not yet been officially confirmed by President Alexander Vucic.
Last year, thousands of people blocked roads to protest against the government's handling of concerns about the project and demanded that Rio Tinto leave the country.
There were more protests on Wednesday as dozens of people led by the political movement of the ecological uprising gathered in Belgrade to demand that the government revoke Rio Tinto's exploration license.
Local mining regulations currently allow the automatic conversion of exploration licenses into production licenses, but Vucic promised to change the law in December.
The project, which is scheduled to be completed in 2026, will help Rio Tinto become one of the top 10 lithium producers, just as demand for electric cars has surged.
Brnabic said that in order to hold elections in April as planned, parliament needs to be dissolved on February 15, when it is unlikely to decide on Jadar.
Brnabic's SNS party is still expected to win the election.
"uncertainty is bad for any investor, but what I care about most is the people living in these villages and all those who are worried about the environment," Brnabic said.
