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Investing.com -- Rio Tinto will mothball its $2.4 billion Jadar lithium project in Serbia as new CEO Simon Trott works to simplify the business and prioritize faster growth opportunities.
The mining giant has pursued the development for years since its geologists discovered the deposit in western Serbia in 2004. The project was designated strategic by the European Union this year and was positioned as an important future source of battery metal for European markets.
Despite its potential significance, the project has faced ongoing challenges including community opposition and suspected Russian disinformation campaigns.
An internal memo reviewed by The Wall Street Journal confirmed the decision to transition the project to "care and maintenance" as part of the company’s efforts to "simplify and prioritize near term opportunities."
The memo indicated that Rio Tinto still views Jadar as an important lithium deposit that could contribute significantly to Serbia and Europe’s energy transition. However, the company cited "lack of progress in permitting" as a key factor, noting it is "not in a position to sustain the same level of spend and resource allocation."
The decision aligns with Trott’s leadership approach since taking over from Jakob Stausholm in August, when he pledged to reduce costs and minimize distractions across the world’s second-biggest miner by market value.
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