Forbes Serbia has learned from sources close to the World Bank and the European Bank for Reconstruction and Development (EBRD) that Rio Tinto once sought financial backing for a lithium mining venture in our country.
According to these sources, discussions with these lenders took place several years ago during the Jadar project‘s active phase. However, these efforts were halted in January 2022 when the Serbian government decided to cancel the spatial plan decree for the project, as announced by Prime Minister Ana Brnabić following protests from environmental groups and citizens.
Sources indicate that Rio Tinto’s decision to seek financing aligns with the typical support international financial institutions offer for private sector investments, underscoring the project’s significant financial scope and potential.
“Securing financial support from the World Bank and EBRD would enhance credibility and signal to other investors the viability of this project,” notes the Forbes Serbia source, though they are unsure if discussions have resumed following the project’s suspension.
The recent visit of EBRD President Odile Reno-Basso to Serbia, including meetings with top officials, did not yield public confirmation of discussions on the Jadar project. Forbes Serbia attempted to verify this with financial institutions.
The World Bank Group, including the International Finance Corporation (IFC), a key address for such loans, neither confirmed nor denied Rio Tinto’s approach regarding Jadar project financing.
Responding briefly to Forbes Serbia’s inquiries, the IFC reaffirmed its commitment to supporting private sector development in Serbia, directing further inquiries to its detailed investment information on their website.
The EBRD emphasized that decisions on the Jadar project lie with Serbian authorities. Should the project proceed and invite EBRD participation, rigorous assessments would ensure adherence to stringent environmental and social standards, reflecting international best practices.
The EBRD cited its involvement in financing the Oyu Tolgoi project in Mongolia in 2015, a significant copper and gold mining initiative. Both EBRD and IFC have a history of supporting Rio Tinto projects, including substantial loans provided nearly a decade ago for the Oyu Tolgoi project.
In closing, the EBRD highlighted parallels between the arguments supporting the Jadar project today and those used for Oyu Tolgoi in Mongolia, emphasizing the potential for economic growth and improved living standards through strategic mining investments.
