Modernising Agreements and Transition to Renewables slide image

Modernising Agreements and Transition to Renewables

Jadar project - 100% owned and managed Mining and processing Underground mine using bench stoping Co-located beneficiation and chemical processing plant Primary products: lithium carbonate, boric acid Overall product recoveries: ~80% Capex Capital: $2.4bn (nominal) Construction phase: 2021-2026 (peak 2022-2025) LOM sustaining capital: $30m per year, average (real) Production profile1 First saleable production: 2026 Full ramp-up: 2029 Annual target volumes: up to 58,000 tonnes of battery-grade lithium carbonate2, 160,000 tonnes of boric acid (B2O3 units) and 255,000 tonnes of sodium sulphate³ per annum 1 Continuing to work closely with stakeholders in Serbia. Subject to award of final permits and approvals. Serbian tax and royalties Mining royalty: 5% (levied on gross sales minus allowable deductions) Corporate income tax rate: 15% Withholding tax rate: 5% 40 year mine life Ore reserve: 16.6Mt @ 1.8% Li₂O and 13.4% B₂O3 Mineral resource: 139.2Mt @ 1.8% Li₂O and 14.7% B2O3 First quartile costs Dry stacked tailings solution Electric haul trucks 70% water recycling ~2,100 direct jobs during construction >1,000 ongoing jobs when operational 2 These production targets were previously reported in a release to the Australian Securities Exchange (ASX) dated 10 December 2020, "Rio Tinto declares maiden Ore Reserve at Jadar" (for battery-grade lithium carbonate it was 55,000 tonnes). All material assumptions underpinning the production targets continue to apply and have not materially changed. 3 These resources and reserves were previously reported in the Rio Tinto Annual Report 2020. The material assumptions on which they were based have not materially changed. Rio Tinto ©2021, Rio Tinto, All Rights Reserved 81
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