Vesna Prodanovic, General Manager of Rio Sava Exploration – Jadarite to be Melted in Sulfuric Acid at Below 100 Degrees Celsius, Without Evaporation

The impression in the past few months is that the “Jadar” project, from the major discovery of jadarite and a great opportunity for the production of lithium in Serbia, has increasingly become, in the eyes of the public, just a big environmental disaster. We have seen that a certain number of citizens’ associations, environmental activists, as well as residents of the Jadar valley, have been protesting for some time now against the opening of a jadar mine in Serbia, which is supposed to start being built in the Loznica area next year.

Vesna Prodanovic, the general manager of Rio Sava Exploration, the Serbian daughter company of Rio Tinto Group, talks to eKapija about how and why this is happening 17 years after the discovery of jadarite in Serbia and about the issues related with the Jadar project that the public is interested in.

eKapija: In your opinion, what is the reason for such a strong reactions from a part of the public against the opening of the jadarite mine? And why is this happening now, even though the Jadar project is not new?

– Rio Sava started doing exploratory works in the Loznica area in 2004, and when we entered the next phase of the project – the feasibility study, when we also began to buy out land and increased our team, the public’s interest grew as well. This is entirely understandable, as are the concerns of the public, primarily when it comes to environmental questions.

It is also apparent that certain groups of people are creating a general negative trend toward the mining industry. We forget in all this that each item we use, directly or indirectly, is a product of mining. On the other hand, a certain number of people, although they accept the importance of this industry, are taking the “not in my backyard” position – and this position also deserves respect and those people should be provided with information about how mining activities can be done in a safe way.

As the mining industry helped the development of the civilization, it advanced itself, especially in the past two decades. The achieved level of security, digitization and environmental protection would have been unimaginable only 25 years ago. A strong metals market has enabled the financing of projects that are this expensive, Jadar included, in which the leading mining companies are competing to implement as many innovations as possible.

The problem that the industry faces is that the public is usually not able to follow the technological advancement of the mining sector, which is why it inevitably sees new projects through the prism of old, bad experiences.

That is why I would invite each concerned citizen to stop to think and estimate how likely it is that one of the biggest mining companies in the world, which is listed at the London Stock Exchange, is building, in 2021, a project worth USD 2 billion from which “sulfuric acid will leak”, which will “destroy forests in a radius of 200 kilometers”, which will let out unfiltered water into the rivers…

Also, Serbia is a candidate for EU membership and the project, of course, needs to be realized in a way that ensures smooth operations in line with EU standards.

eKapija: Considering that the jadarite mine in Serbia is, for now, practically the only one in the world, there is neither the experience nor the good practice of the extraction of lithium from that ore. Do you believe that you have provided the public in Serbia with enough information about this project and its environmental impact?

– When it comes to the processing technology, all the parts of the technological scheme, individually, have been mastered, are known, safe and widely implemented technological steps that are used throughout the developed world in numerous industries. However, the unique properties of jadar required those steps to be adapted to the ore, to be optimized and to enable efficient and reliable processing, though years of scientific and engineering work. A team of local and international experts worked on it and numerous tests were done in order to find the optimal solution for getting industrial end-products, lithium-carbonate, boric acid and natrium-sulfate. We are especially proud of the success of the experts who have upgraded the methods of the processing of the lithium ore and ensured that the process is done at below 100 degrees Celsius, which is a much more acceptable solution in environmental terms. The end result is a patented technology of processing, with the patent being publicly available and to which we point all the interested local experts to view it.

As for informing the public, let me repeat that, until July 2020, the project was in the phase of the preliminary feasibility study. In terms of engineering, that is an early period of development, when each company is focused on finding technological solutions and testing the feasibility of the investment and you will probably not find examples of projects that have public announcements in that phase anywhere in the world. On the other hand, the company communicated regularly with the local community. The info center in Loznica opened in November 2016 and in Brezjak in April 2019. Since 2019, we have held more than 20 “Open Door” events concerning various topics, from environmental protection to property-legal relations.

When it comes to the technology of the processing of jadarite, the technological scheme of the process was published on the company’s website in late 2019 and shared with the interested parties in Serbia through the Jadar Newsletter for the fourth quarter of 2019. With the patent documentation and brochure that we published in February 2021, which features all the information about the temperature of the process, the characteristics of the concentrate, the quantities of reagents etc, I can responsibly claim that the technology of the process is absolutely publicly available for all those who want to analyze it and are qualified to do so.

Has this been enough? For some, yes, for others, no. What’s important is that, as a company, we are ready to discuss everything openly with all interested parties. The open meetings we held in April and June with representatives of the NGO sector and the wider public, as well as the SASA conference held in early May, where we discussed the project at the highest scientific level in Serbia, speak in favor of that.

On the other hand, as an academy member, a professor at a technical faculty, said recently – “If you expect to present me a medical project and have me understand it, of course I will not be able to do that, just as the majority of the populace will not be able to understand a complex mining-processing project”. This is a fertile ground for manipulation with concerned citizens.

eKapija: In concrete terms, in the case of jadarite processing, are we talking dirty technologies?

– The division of technologies between clean and dirty technologies is an obsolete concept in the world. There are only satisfactory and unsatisfactory techniques of filtering and protection measures that the company is ready to invest in. In other words, there is no waste water or gas released that cannot be filtered to meet the legal norms. The solving of ecological challenges of any project is based on a thorough analysis of problems, designing a sustainable solution and, finally, the readiness of the operator to invest the capital necessary for the realization. All the three pre-conditions will be met in the case of Jadar.

The Jadar mine will be a modern facility with a considerable implementation of modern and innovative technologies. This is confirmed by the fact that Boston Consulting Group (BCG), one of the three biggest consulting companies in the world, officially pronounced Rio Tinto one of the most innovative companies in the world in 2019. We have been recognized as one of the only two mining companies among the 50 leading world companies, among which are Google, Amazon, Apple and Microsoft.

I will also cite the example of the aluminum smelter in British Columbia, Canada. There, we received the Aluminum Stewardship Initiative (ASI) certificate for meeting the highest internationally recognized standards for ecological, social and production practice, where Rio Tinto became the first company in the world whose aluminum was certified as being produced in an environmentally responsible manner.

eKapija: Recently, news came from Portugal that the country, under the strong pressure of the local populace, was most probably to give up on having a lithium mined opened, planned near agricultural land. What is your response to that?

– In the world of lithium, Portugal is known for the Barroso project, which is developed according to the plan and with full support from the state and the European Union. This isn’t surprising, considering that, in the upcoming years, increased supply of critical minerals (lithium included), which are crucial for a green transition, will be required. The project is currently in the process of public review of the thorough environmental impact study.

The project whose development the country is putting a stop to is another, less known project, developed by a company whose operations the Ministry of Environment was not satisfied with. So, it doesn’t mean that Portugal is giving up on lithium. Instead, this company which has not met the high requirements of the Ministry of Environment is having its exploration rights revoked.

In Portugal, there is currently a public debate where the advocates of the necessity of industrialization and inclusion into the chain of modern technologies are very vocal, with the same argument that we presented here – that the mining of the 21st century can be carried out in harmony with the nature and the people. A huge advantage in the case of Jadar is that our mine will be of an underground type, at a depth of over 500 meters, connected by two shafts with the surface, thereby making for a minimal direct influence on the surface environment. On the other hand, the mines in Portugal, as well as all the existing lithium ore mines in the world, are surface mines, which inevitably has a bigger impact on the nature, due to the opening of the surface cuts.

eKapija: What are the environmental consequences of the excavation and the processing of jadarite?

– Each excavation and each industrial technological process has some kind of impact. That cannot be denied. But we need to make a distinction between impact and pollution. The impact can be brought down to the level that does not jeopardize the environment, the people, or the biodiversity. It is up to us to achieve precisely that, by determining the initial state of the environment, determining the potential impact, risk and finding adequate technical and technological solutions which will minimize that impact. Of course, we also need to secure a sufficient quantity of investments. This is what Rio Tinto is working on intensively, along with the relevant and accredited experts, institutes and laboratories in Serbia.

Many untruths appear in the media regarding the project’s environmental impact, which disturb the public and cause unnecessary panic. Every day, you can hear that a cut will open on 40 square kilometers, that waste waters will be let out without adequate filtering, polluting all the rivers all the way to the Black Sea, that forests will be burned in a radius of 200 kilometers and that 20,000 people will be displaced. Of course, none of this is true. We will not come out with any concrete statements prematurely, because the environmental impact study will provide all explanations and quantify the cumulative influences.

However, even though the study is not yet finished, we have been carrying base analyses for years now in cooperation with relevant institutions, which will serve as the entry data for the study. It is therefore understandable that we already have a good understanding of the potential impact, which we firmly believe will remain within the strictest legal norms. If something needs to be corrected, of course the company will meet all the requirements. Finally, the mine and the facility for the processing of jadarite will not be built if they are expected to have an excessive impact on the environment.

eKapija: According to the experts’ warnings, the biggest problem is the concentrated sulfuric acid. What kind of a solution does Rio Tinto intend to offer so that it doesn’t harm the people and the environment?

– First of all, it is important to understand that the sulfuric acid is one of the most present industrial raw materials in the world and the basis of the chemical sector. Its application is wide and it is mostly used in the fertilizer industry, for the production of synthetic detergents, dyes and pigments, explosives, car batteries and medicines, as well as in metal processing. In southeast Europe alone, over 6 million tons of sulfuric acid is spent each year, of which over 400,000 tons in Serbia. Bulgaria is the largest regional producer and it delivers around 1.2 million tons of sulfuric acid a year.

I’m saying this to show that the use of sulfuric acid is not something to be feared and that it is instead a known chemical, whose management has been mastered, is safe and has been confirmed on thousands of examples. In Hamburg, for example, practically in the city center, on the Elbe river, there is a huge copper smelter which produces close to a million tons of sulfuric acid a year. The port tanks always feature up to 100,000 tons of acid stored, whereas, here, in this location, the quantities will be one tenth of that.

Regarding the use of sulfuric acid, our information brochure, which is publicly available, explains in detail the whole process and all the circumstances important from the aspect of safety and environmental impact. Unlike other lithium ores, where the concentrate needs to be submitted to thermal treatment at a temperature that exceeds 1,100 degrees Celsius, in order to be further dissolved in acid on 250 degrees Celsius, the entire treatment of jadarite takes place at under 100 degrees Celsius. This characteristic of our process enables the application of sulfuric acid at a temperature where it is stable and where there is no evaporation. Although the most modern filters will be installed, the fact is that our process which uses sulfuric acid would stay within the legal norms even without the presence of filters.

eKapija: The advocates of the abandonment of the excavation and the processing of jadarite in Serbia also point to some bad experiences from other countries when it comes to Rio Tinto. They mention the pollution of rivers in Papua New Guinea, the destruction of Aboriginal caves in Australia, the environmental damages lawsuit of an indigenous tribe in Canada… What is the truth here?

– The caves at the Juukan Gorge in Australia should not have been destroyed. Although we did have a legal permit for mining since 2012, it was without a doubt a wrong decision and we express deep remorse for it. Rio Tinto is determined to learn its lesson and bring back the lost trust. The company’s new management is dedicated to it and the efforts of the shareholders are oriented toward the same goal.

We do not dispute that the mining industry operated differently in the 20th century, when the circumstances were different, and the same goes for most other industries. What is important is to strive to improve ourselves and, as far as Rio Tinto is concerned, we are ready and we are able to invest in the best solutions available.

eKapija: In which phase is the “Jadar” project at the moment?

– At the moment, the project is in the phase of the preparation of the feasibility study, which entails the preparation of technical documentation for the mine, the facilities for the processing and the disposal site and the preparation of environmental impact studies. This phase of the project is expected to be completed by the end of the year.

eKapija: Which environmental impact assessment studies are being prepared, what do they entail exactly and how much does Rio Tinto intend to invest in environmental protection?

– The environmental impact assessment studies entail the estimate of the cumulative impact of the three elements of the project – the mines, the processing facility and the industrial waste disposal site. They entail the estimate of the impact on the flora, the fauna, the air, the land, the water, the biodiversity… These studies aim not just to determine the impact, but to also define the measures that need to be taken so that the impact would be reduced and brought to the level that does not jeopardize the environment.

Once they’re done, these studies will become a publicly available document, a public review, public presentations and public discussions of at least 20 days will be organized and all the interested citizens will be able to give their suggestions.

When it comes to investments in environmental protection, we will spare no resources. The currently planned investment in the construction of the system and equipment for environmental protection alone amounts to over USD 100 million, and the planned investments in this segment can be expected to grow after the completion of the preliminary projects and the main projects. Between 35 and 40 million euros will be put in the water filtering facility alone.

eKapija: When do you expect the mine to open?

– The phase of the preparation of the feasibility study should be finished at the end of this year, which means that the phase of the construction could begin next year. The construction of the mine, the facility and the accompanying structures would take four years. The opening of the mine is expected for 2026.

eKapija: The Jadar project also entails the construction of an ore processing factory, but president Vucic also talked about a factory of lithium batteries for electric cars. Is such a factory planned for Serbia?

– Rio Tinto extracts and processes minerals. The production of batteries is not part of our portfolio and we will not deal with it. However, if an interested investor appears, we will certainly support such a project and confirm that Serbia is a good investment destination, with educated labor force and other preconditions important for the planning of big projects.

eKapija: What will the processing of jadarite and the production of lithium bring to Serbia? What are the benefits for the country from the angle of your company?

– The Jadar project is a strategic development chance for Serbia. With ecologically sustainable operations, its development will contribute to the transfer of technologies, to the development of the entire mining sector and a wider industrial sector and will stimulate related investments. We expect the project to directly influence an increase of the GDP by at least 1%. In the phase of the construction, over 2,100 people will be presented with employment opportunities, whereas, during the life cycle of the project, we will directly employ more than 750 workers, mostly highly qualified workers. Detailed and quantified economic indicators of positive, direct and indirect effects on the economy will be ready in a few months, when they will also be presented to the public.

The official projections of the European Commission predict a battery market in the EU at the level of 250 billion a year as soon as 2025, as well as that the demand for lithium will jump 20-fold by 2030 and the incredible 58-fold by 2050. Our project is an opportunity for Serbia to position itself within that sector.

eKapija: What are your further plans in our country? Are there prospects for new explorations and potential new investments?

– Our investment plans are related to the Jadar project exclusively.

B. P.

Rio Sava Exploration d.o.o. Beograd

Rio Tinto Exploration Dunav d.o.o. Beograd

Vesna Prodanović

Jadar project

jadarite

lithium

excavation of lithium

lithium in Serbia

exploitation of lithium

lithium mine

Jadar mine

Loznica mine

battery factory

lithium battery factory

processing of jadarite

lithium pollution

concentrated sulfuric acid

Portugal lithium

Papua New Guinea lithium

destruction of Aboriginal caves

lawsuit of indigenous tribe in Canada