Published On: January 23rd, 2024
Rio Tinto, the multinational mining giant, has grabbed attention again after one of its abandoned lithium projects is on the verge of getting renewed again. This happened after Serbian President Aleksandar Vucic and Prime Minister Ana Brnabic talked about the possibility of returning to the Rio Tinto Australia mines project, which had been on halt for a long time. PM Brnabic also said that the mining giant owns a significant portion of land in Serbia. His intention here was to showcase that Rio Tinto still has the right to implement its lithium project.
Talking about Vucic, he has also been a staunch supporter of the project since the beginning. When asked about the sidelines of the World Economic Forum in Davos, the Serbian President said he had had a difficult conversation with representatives of Rio Tinto earlier. He further told the reporters about the company’s alleged intention to file a lawsuit against the country. Vucic reportedly asked Rio Tinto not to take measures to protect only their interests.
Vucic further said he had sought Rio Tinto’s assurances about environmental standards and said the next government should address this issue, too. He talked about his expectation from the mining giant to offer the cleanest solutions that provide the highest standards to people worldwide.
The Serbian government had earlier offered mineral resources to several investors to enhance the country’s revenue and economic growth. Rio Tinto and Zijin Copper Miner were significant investors in this field.
Controversy Around Rio Tinto Australia Mines
This renewed discussion on the project’s revival has drawn criticism from various environmental activists worldwide. They fear that the water bodies will be affected because of the project. On the other hand, a few other civilians believe Rio Tinto has steamrolled them, leaving minor financial benefits for the country.
Rio Tinto Stock Price ASX
After President Vucic announced the possibility of reviving the lithium project, the share market witnessed something unexpected at the start of the week. The Rio Tinto share price ASX dropped 1.69% to 127.80 AUD this Monday. This underperformance was followed by another update from the FTSE 100 Index UKX. The latter witnessed an increase of +0.35%, which accounts for 7,487.71 stocks. So, Rio Pinto’s current share price ASX stands at 11.18 AUD. Reports state that ASX’s stock price has reached its all-time low, compared to its peak price of AUD 64.06.
Latest Updates on Rio Tinto Australia Mines
Earlier reports state that Belgrade, the capital of Serbia, revoked licences for Rio Tinto’s Jadar lithium project, which is currently worth $2.4 billion. For the unversed, this particular project is situated in Western Serbia. It came to a halt in January 2022 following massive environmental protests. However, if completed, the same Rio Tinto Australia Mines project would supply 90% of Europe’s current lithium needs. This can also make Serbia a leading lithium producer in the world.
Lithium is a critical material used in batteries for mobile devices and electric vehicles (EVs) worldwide. That is why the United States and the European Union consider it to be a critical material.
Rio Tinto further claims that this lithium project in Serbia will be the biggest one in Europe. It will also make the company one of the world’s top 10 lithium producers. This new designation will profoundly impact the Rio Tinto stock price ASX.