Serbia's government has passed a bill to reapprove Rio Tinto’s controversial lithium mining project, following a constitutional court ruling that overturned a 2022 cancellation of its permits.

The decision by Serbia’s government to reapprove the project is risking a political backlash for economic gain. The Jadar project, located near the western city of Loznica, has been a painful issue in Serbia, sparking nationwide protests in 2021, which led the government to temporarily stall the project in January 2022.

The government’s recent bid to revive the project following its victory in national and local elections in December 2023 has sparked significant public outcry, with opposition groups claiming that the government has misled the public.

After telling the nation he was “not interested” in the court’s ruling last week, President Aleksandar Vucic has spared little time in acting on the decision and reapproving the project — adding to accusations of government duplicity.  

At a session held on July 16, Serbia’s government adopted a decree establishing the spatial plan for the area needed to realise the Jadar project. This new regulation reinstates the previous spatial plan, which had been repealed in January 2022 amid mass protests.

According to the government website, the basis for adopting the decree was the constitutional court’s decision on July 11, which ruled that the 2022 government decision to revoke Rio Tinto’s permit for the $2.4bn lithium mine was unconstitutional and unlawful.

Serbia’s government and its EU backers argue that the economic potential of the project outweighs any environmental concerns. "We believe that the mine would not endanger anyone or anything," Vucic said.

Rio Tinto has welcomed the government’s decision, stating that the project “will be subject to stringent environmental requirements”, creating "thousands of new high-paid, high-skilled Serbian jobs for generations to come."

Despite Rio Tinto’s assurances, the decision has been met with strong opposition from environmental groups. Savo Manojlovic, a leading protest organiser, warns: "The government will be responsible for any unrest and conflict in society, as it has trampled on the country's constitution, occupied its institutions, and turned into a puppet of foreign interest."

The Podrinje Anti-Corruption Team (PAKT) labelled the decision "shameful" and "treacherous", asserting that Vucic is "ready and determined to sell us for jinxes". Zlatko Kokanovic, president of the environmental association Ne damo Jadar, accused the government of seeking to "cause unrest in Serbia" with its decision.

As the government moves forward with the project, it will face further protests and political unrest. It is uncertain whether the opposition will be able to organise such large protests as in 2021, or be able to transform the issue into a wider opposition platform. Regardless, the government has a difficult case on its hands to convince the country that the project is profitable for ordinary people and environmentally sound.