SARAJEVO (Reuters), – Serbia might soon end all contracts related the Rio Tinto (NYSE :)’s $2.4 Billion lithium project in Serbia, Prime Minister Ana Brnabic announced on Saturday. The announcement came as protestors blocked roads throughout Serbia to stop the plans.

Rio Tinto wants to develop the mine near Loznica in the western Jadar valley, but the local municipality has already scrapped a plan https://www.reuters.com/markets/commodities/rio-tinto-pause-lithium-mine-serbia-after-protests-report-2021-12-23 to allocate land for it.

This development is part Serbia’s effort to attract investment and increase economic growth. However, environmentalists protested and closed roads in an attempt to pressure authorities to stop the development. They claim it would irreparably damage the region.

Rio said that all development will meet the environmental standards set by both Rio and European Union.

Protests caused political problems for President Aleksandar Vucic’s ruling coalition ahead of the April elections.

Brnabic said that she had not invited Rio Tinto (or made any promises), nor brought them in. She also stated that it was near to accepting requests from environmentalists.

Brnabic added that they had worked transparently and listened to their opinions. He also said the government must see the amount it will have to fork out in the event of the deal being canceled.

Brnabic stated that the government was looking to get agreement from President Aleksandar Vucic on any future decision. She said she is against foreign service and agency requests.

Vucic repeatedly stated that the opening of the mine will depend on the results of an environmental assessment and a referendum.

Protesters blocking roads in Belgrade and other cities demanded that the government ban lithium extraction by Rio Tinto or any other company.