The Serbian government on Tuesday gave permission to restart operations at a disputed Rio Tinto lithium mining project, days after a court ruling overturned measures to halt the project.
“The government… takes measures to restore the legal order to the state that existed before the adoption of the regulation that was declared unconstitutional,” read a statement published by the Serbian government.
The decision follows a ruling by the constitutional court last week, saying a 2022 government move to revoke permits awarded to the Anglo-Australian mining giant was “not in line with the constitution and the law”.
The future of the vast mineral deposits, to be mined by Rio Tinto near western Serbia’s Loznica, has been a perennial political fault line in the Balkan country in recent years.
It pits festering distrust in the Serbian government against Europe’s plans for a greener future.
Billions of euros are at stake, with Rio Tinto saying the mine would provide thousands of jobs and secure Serbia’s position in emerging energy markets.
The company said the area holds one of Europe’s largest reserves of lithium, a strategically valuable metal crucial for electric vehicle battery production.
The deposits were discovered in 2004 but the Serbian government halted the mining project in 2022 after weeks of protests sparked by fears over the environment and public health.
President Aleksandar Vucic has hinted that Serbia could begin mining lithium as early as 2028, following new guarantees from Rio Tinto.
“We believe that the mine would not endanger anyone or anything but first we need to receive guarantees from Europe that the environment and the lives of ordinary citizens will be preserved and improved with new jobs and higher wages than today,” Vucic said on Monday.