- The Australian mining company Rio Tinto Limited (ASX:RIO) may face a loss of AU$3.34 billion as the Serbian lithium project may be cancelled.
- The project cancellation will be followed by protests and road blockades conducted by environmentalists’ last weekend.
The Australian mining company, Rio Tinto Limited (ASX:RIO) may face a loss of AU$3.34 billion as the Serbian lithium project may be cancelled following the road blockades and protests done by the environmental activists last weekend.
On Wednesday, shares of Rio Tinto were trading over 1% higher at AU$107.51 with a market capitalisation of AU$39.48 billion at 10.33 AM AEDT.
About Rio Tinto’s Serbian lithium project
Earlier, Rio planned to set up a mine in the Jadar Valley. However, the local municipality scrapped the plan, and land reallocation was done.
Even though the Rio plan was a part of the country’s economic plan, environmentalists argue that the project could cause a significant amount of damage to the area and it would have an irreversible effect. Rio responded that company would ensure that the European union’s environmental standards are met in all projects.
Government response to the protest
Ana Brnabic, Prime Minister of Serbia, stated that:
Environmental related concerns have become a priority amongst the countries. Therefore, companies must tackle those projects that impact the environment in a good way. Rio is facing a similar situation in Serbia, and the outcomes of environmental studies are awaited.