Jadar Project 2021

riotinto.com/jadar Responsibility Implementation of the Republic of and EU regulations Transparency Environmental protection Modern technologies Economic prosperity New job openings

2 3 Rio Tinto Jadarite

Rio Tinto has been present in Serbia Rio Tinto is one of the world’s leading since 2001 when a unique mineral of mining companies, engaged in the international importance was discovered exploration and exploitation of mineral in the vicinity of . The mineral was resources worldwide. The company has officially registered in 2004 and named operated for over 145 years, continuously jadarite, after the river Jadar, in whose investing in new technologies, innovative valley it was discovered. solutions, employee education and training, local communities and environmental protection. Most of the active mines and processing plants owned by Rio Tinto are located in countries with the highest environmental standards and the most advanced technological and production practices such as Australia, Canada and the USA. The company also employs more than 40,000 people in over 30 countries.

Due to the high concentration of lithium, as well as boron found in jadarite, Jadar is considered one of the most important lithium deposits in the world. Lithium is an increasingly sought-after raw material as it is used for batteries in electric and hybrid cars. The Jadar deposit is on the doorstep of the European automotive industry, which is rapidly entering the era of electric vehicles in line with the EU’s green transport programme.

4 5 Jadar Project About Feasibility Study

Rio Tinto founded a subsidiary in Serbia The construction and development of In August 2020, the Jadar Project named Rio Exploration (RSE), with Jadar, the future mining and industrial progressed to the Feasibility Study plans to complete the preparation of its complex, is planned on the territory of stage - the final development phase. studies, and apply for all relevant permits the Loznica and municipalities. After obtaining the necessary to start exploiting jadarite in the coming Covering an area of approximately permits and legal and company years. In total, three finished industrial 300 hectares, the Jadar project is an approvals, the Project will transition products will be delivered to the market: investment worth over USD 1.5 billion. to the construction phase. During the Feasibility Study, Environmental • Battery grade lithium carbonate; A total of USD 450 million will be Impact Assessment Studies (EIA) • Boric acid; invested in geological exploration, the activities are conducted, allowing • Sodium sulphate. creation of studies and the preparation us to build a comprehensive picture of Jadar, by the end of 2021. The project of the environment before mining is developed in phases defined by the begins, predict possible impacts, Republic of Serbia’s mining and energy including cumulative impacts of legislation, with the application of best our future operations, and define international practices. measures to minimise that will need to be applied to eliminate or reduce to a minimum.

A team composed of over 100 domestic experts from all scientific disciplines relevant to the Project, including 40 renowned professors of the University of Belgrade, in cooperation with relevant institutions, are working to determine the cumulative environmental impact of the Project and to define the complete set of measures that are required to mitigate these impacts.

A total of 2,000 chemical tests have been performed to confirm that the solution for producing the final industrial products (lithium- carbonate, boric acid and sodium sulphate) are technologically viable. In addition, the processing operations itself has undergone five independent audits by relevant The planned investments in the construction of systems experts in various fields. This and equipment in the domain of environmental protection approach has led to numerous improvements in the production amount to more than USD 100 million, of which 35 million process as well as in occupational dollars are planned for water purification systems. safety and environmental protection.

6 7 One of the examples is our continuous effort to make improvements in our environment footprint when it comes to waste solutions.

A team of technical experts developed a stable and reliable process to transform slurry waste into filter cakes, following years of research. This process allows us to reduce the volume of waste for storage, and we are now working on other pathways to further improve waste management. As the Project continues, research will be carried out to identify all uses of the waste so that we can determine what can be successfully achieved.

When the Feasibility and the Environmental Impact Assessment Studies are concluded, a public consultation period will commence, and the full EIA will be made available to the public.

8 9 New job openings

When construction is completed, Jadar will have the potential to become the country’s second largest exporter, after reaching the full production volume. This will simultaneously position Serbia as a strategically important producer of lithium on a global scale. During the construction, 2,100 jobs will be created. The start-up of the operations at the mine and industrial complex will create 750 direct jobs for highly qualified employees, in addition to the large number of indirect jobs that will also be generated. Jadar will also offer opportunities for the further development of Serbia’s economy, both locally and nationally, over the coming decades.

2,100 750 jobs will be jobs will be directly provided during created for highly construction qualified employees

10 11 Partnership with Land acquisition local communities programme

The land acquisition programme standards (IFC standard 5, World is an important issue for all Bank Group). These standards define participants, as well as for measures such as fair compensation the public. The programme is and improved living conditions of implemented in accordance with people undergoing a resettlement all applicable laws of the Republic process. In addition, Rio Tinto of Serbia and applies global best standards also apply if they exceed practices in accordance with the the scope of the International International Finance Corporation Finance Corporation standard.

Since the beginning of land acquisition, Wherever we work, we must partner with cultural heritage and property-legal relations. local communities to improve our natural The Rio Tinto Info Centres in Loznica and we have followed an extensive process resource management practices to minimise Brezjak are open to make the Jadar Project of consultation and engagement. our impact on the environment. We know we accessible to citizens as well as to keep lines are temporary custodians of these lands and of communication open between community Importantly, our procedures consider the therefore taking a long-term approach with the members and company representatives. local circumstances with great attention communities – planning and operating with the future in mind – is essential to running a safe, In February 2021, to foster improved cooperation to livelihoods impacts, vulnerable groups responsible and profitable business. For this and understanding, we established the and transition support. reason, we are committed to working closely Committee for Environmental Protection. with the local communities and as such, have Representatives of the Jadar and Radjevina organised regular meetings such as Open Doors communities, as well as experts working in at the Info Centres in Loznica and Brezjak to this field, have been invited to take part in the better understand community concerns and activities of this independent committee to in turn, address these concerns as part of the monitor the development of the Project. Environmental Impact Assessment process and beyond. Further, with local community members, we also created a Working Group on Cooperation. These meetings have provided stakeholders to The group aims to inform us of the needs have open and transparent dialogue with us on and priorities of local citizens, and will enable topics such as environment and biodiversity, us to even more improve our plan activities, noise impact, spatial plan, water and air quality, programmes and projects so that they are the Environmental Impact Assessment Study, tailored to the community. Our approach to the Jadar Project is transparent and honest and we are focused and open to all stakeholders, from the local population, professional and expert communities, citizens of Serbia, to the media.

12 13 Environmental Supporting Stewardship Agriculture

Protecting the environment is an The mine and processing plant will As part of our support and cooperation important part of our commitment produce two types of waste: rock waste with local communities, we have to communities and our employees. from the mine (mined hard rock material implemented the Supporting Access As part of this project, Environmental not containing jadarite) and industrial to Agricultural Advisory Services Impact Assessment Studies of the waste generated by the processing of project, in collaboration with local future underground mine, concentrate ore. The leftover liquor from lithium partners. This long-term project is processing plant, and industrial waste carbonate crystallization is further partnership-oriented towards the storage are being carried out. The study processed into Sodium Sulphate, a by- agricultural population, taking an will define all protective and control product used for detergents and glass. educational approach to improving measures, to minimise Another portion of the waste generated living conditions, opportunities and or eliminate all potential impacts. As in the process, ~30%, will be used to the surrounding environment. part of our mitigation measures, we have backfill voids in the underground mine already committed to significantly invest to prevent surface subsidence. The The project has been implemented in environmental protection measures. remaining waste material is then dried, in cooperation with the Agricultural stacked, compacted Advisory Service Poljosavet since and revegetated 2018 at the initiative of the Regional with native plants Development Agency, with support and grasses in an from the town of Loznica. The industrial waste Company has invested USD 45,000 to landfill facility date. The project is expected to run adjacent to the mine until 2026 and became self-financed site. This entire in 2021. Potential beneficiaries were site will be cladded consulted before the project started with impermeable which led to the recognition of the material that will equal participation of women as well protect groundwater as the area’s significant potential and and the surrounding interest in berry cultures, particularly area. There will also raspberries. be a mechanism for regular monitoring of groundwater and surface water, and The main objectives of the project are: air quality control. All designs will meet • continuous provision of services to or exceed the conditions defined by the local agricultural producers; Republic of Serbia and the European • transfer of knowledge focused Union. on all key aspects of agricultural The Jadar operation is being designed to production; maximise the reuse of process water and For more information on the sustainable • demonstration of new technologies minimise the total volume of water that water use, as well as the content and in planting that can be transferred in needs to be treated. The portion of water treatment of waste, please refer to a commercial raspberry production; not reused will be treated in a state of special brochure titled “Questions and • demonstration of modern the art wastewater facility. Excess water Answers about the Jadar Project”. technologies in planting and growing from the process is treated to meet all berries; specifications required by environmental • production of high-quality raspberry regulations in Serbia and is at the seedlings – the basis for self- same or better quality before being financing of the project and its future reintroduced. sustainability.

14 15 Jadar Project Information Center Rio Sava Exploration d.o.o. 4 Gimnazijska Street Bulevar Milutina Milankovića 1i 15300 Loznica 11070 Belgrade Serbia Serbia T +381 15 872 834 T +381 11 4041 430

Jadar Project Information Center riotinto.com/jadar 9 Stevana Sinđelića Street 15309 Brezjak Serbia T +381 15 610 223