rio tinto value over volume Gold Inc. Rio Tinto has a joint venture for a 40 per cent share of production above specific levels until 2021, and 40 per cent of all production after 2021. The Indonesian government has taken a tough line on foreign owned mining assets, however, resulting in Freeport reducing its stake in the company to 49 per cent, with the government now owning the majority 51 per cent share. There is as yet no indication as to whether this will affect Rio Tinto’s interests.
Lithium
The lightest metal on Earth, lithium is in great demand as it is used in a vast array of products, most notably batteries for hybrid and electric cars. Rio Tinto Borates' Jadar project in Serbia is a significant, world-class lithium-borate resource. Rio Tinto discovered Jadar in 2004. It is a unique deposit near the town of Loznica, in Western Serbia, some 160 kilometres from its capital Belgrade. The deposit contains Jadarite, a new mineral unique to Serbia, which has not been found anywhere else in the world. Jadar has been ranked as one of the largest lithium deposits in the world. If developed, it is said to have the potential to supply more than 10% of global demand for lithium. Borates are essential building blocks for heat resistant glass, fibreglass, ceramics, fertilisers, detergents, wood preservatives and many other household and commercial products. They are used in insulation that makes buildings energyefficient, and to produce TV, computer and smartphone screens. Rio Tinto has recently elevated Jadar to become its most likely growth project, revealing that if it gets approvals and the economics support it, it will start construction in 2020 and reach first production in 2023. The company has so far spent around US$90 million on Jadar. In July this year Rio Tinto signed a memorandum of understanding with the Government of Serbia relating to the implementation of the Jadar Project. The MOU will enable the formation of joint working groups between the government and the company to progress the Jadar Project through the study and permitting phases. Under current plans, Jadar will
be an underground mine, with the opportunity for future expansion if demand warrants it.
“Jadar has been ranked as one of the largest lithium deposits in the world. If developed, it is said to have the potential to supply more than 10% of global demand for lithium”
At the 2017 Global Metals & Mining Conference in Barcelona in May, Rio Tinto’s chief executive J-S Jacques described his approach to delivering superior value for shareholders as being about a long-term strategy built on world-class assets; maximising cash through a value-over-volume approach; developing a highperformance culture across the Group and allocating capital with discipline. “We have world-class assets and the best balance sheet in the industry,” he concluded. “This creates a strong platform for the future.“
World Mining Magazine www.ogsmag.com
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