Serbia scraps $2.4 bln Rio Tinto lithium project
Serbia has dealt a big blow to Rio Tinto, the Ango-Australian mining giant, by scrapping the company's plans for a lithium mine.
It's a project valued at $2.4 billion dollars, and lithium is a key component for electric car batteries.
It comes days after the high-profile deportation of Serbian tennis star Novak Djokovic from Australia over his vaccination status.
That event has left ties between Australia and Serbia in tatters.
Serbia's decision also comes with its general elections only months away.
And, after a series of angry protests against the mine on environmental grounds.
Prime Minister Ana Brnabic said just last week that a decision for Rio would not be made until after April's vote before announcing the surprise U-turn on Thursday.
"We have fulfilled all the requests of ecology-related protests, and we put a full stop to the Rio Tinto (issue) in the Republic of Serbia."
Canberra did not immediately comment on the decision.
The news is a big setback for Rio's hopes that the project would catapault it to the world's top ten biggest lithium producers, as well as Europe's largest supplier.
It said it was quote 'extremely concerned' by the decision and was reviewing the legal basis for it.
The Serbian mine is currently Rio's only lithium project and was planned to start production in five years.
It announced a month ago a deal to buy a second lithium asset worth more than $800 million as it looks to build its business for battery materials.
Lithium is in high demand amid the electric vehicle boom.
A global shortage in the mineral has led to record prices in recent years.
Shares in Rio fell as much as 4.8% in the Australian stock market on Friday, its worst drop since August last year.
