FILE PHOTO: Protest in Belgrade against Rio Tinto's plan to open lithium mine
Sat, January 8, 2022
SARAJEVO (Reuters) - Serbia may soon decide to annul all contracts related to mining group Rio Tinto's $2.4 billion lithium project in the country, Prime Minister Ana Brnabic said on Saturday, as green groups blocked roads across Serbia protesting against the plan.
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.
The development is part of Serbia's efforts to bring in investment and boost economic growth. But environmentalists have staged protests and blocked roads to press authorities to end the project, which they say would cause irreparable damage to the area.
Rio has said any development would meet domestic and European Union environmental standards.
The protests have caused a political headache for the ruling coalition loyal to President Aleksandar Vucic ahead of April elections.
"We have neither brought them (Rio Tinto) in, nor have we made promises, nor have we done anything that the people did not know about," Brnabic told television channel Pink, saying the government was close to accepting all requests from environmentalists.
"We have worked in a transparent way, we have listened to the people," Brnabic said, adding the government needed to see how much it would have to pay out if the deal is annulled.
Brnabic also said the government wanted to win agreement for any decision from President Aleksandar Vucic, who she said was against the fulfilling of "requests by foreign services and agencies".
Vucic has repeatedly said that opening the mine would dependon the outcome of an environmental study and a referendum.
The protesters who blocked roads including in the capital Belgrade want the government to ban the extraction of lithium not only by Rio Tinto but any other company.
(Reporting by Daria Sito-Sucic; Editing by David Holmes)
Serbia: Lithium mine opponents block roads in bad weather
Via AP news wire
Sat, January 8, 2022,
Serbia Environmental Protest (Copyright 2022
Via AP news wire
Sat, January 8, 2022,
Serbia Environmental Protest (Copyright 2022
The Associated Press. All rights reserved)
Hundreds of people in Serbia spent part of a holiday weekend blocking roads Saturday to protest plans for lithium mining in the Balkan country.
The protests came a day after Orthodox Christians in Serbia and many other countries celebrated Christmas. The demonstrations took place in the capital, Belgrade and several other locations.
Anti-mine activists have organized weekly gatherings to keep pressure on the populist government of President Aleksandar Vucic to scrap the possibility of lithium excavations in western Serbia.
Thousands have joined protests in the past and ecology groups have vowed not to stop until the mining proposals are rejected.
Prime Minister Ana Brnabic told the pro-government Pink television on Saturday that her government was “close to annulling” any deals with multinational mining company Rio Tinto which has explored the area and wants to extract lithium.
“We listen to our people,” Brnabic said.
Experts have warned that mining for lithium, a material used for car and other batteries, would destroy the region’s farmland, ecosystem and water.
Serbia faces numerous environmental problems following decades of neglect. The country is swamped with garbage and has very poor air quality.
Improving environmental protection is one of the criteria Serbia needs to fulfill to advance on its path to joining the European Union.
Hundreds of people in Serbia spent part of a holiday weekend blocking roads Saturday to protest plans for lithium mining in the Balkan country.
The protests came a day after Orthodox Christians in Serbia and many other countries celebrated Christmas. The demonstrations took place in the capital, Belgrade and several other locations.
Anti-mine activists have organized weekly gatherings to keep pressure on the populist government of President Aleksandar Vucic to scrap the possibility of lithium excavations in western Serbia.
Thousands have joined protests in the past and ecology groups have vowed not to stop until the mining proposals are rejected.
Prime Minister Ana Brnabic told the pro-government Pink television on Saturday that her government was “close to annulling” any deals with multinational mining company Rio Tinto which has explored the area and wants to extract lithium.
“We listen to our people,” Brnabic said.
Experts have warned that mining for lithium, a material used for car and other batteries, would destroy the region’s farmland, ecosystem and water.
Serbia faces numerous environmental problems following decades of neglect. The country is swamped with garbage and has very poor air quality.
Improving environmental protection is one of the criteria Serbia needs to fulfill to advance on its path to joining the European Union.
Rio Tinto Is Building Its Lithium Business. The Move to Green Energy Will Boost the Stock.
JANUARY 7, 2022
A hefty dividend and a strong pivot toward clean-energy products should make United Kingdom-based diversified miner Rio Tinto a good bet for investors. Experts say that those with a heavy appetite for risk can expect total returns to reach 30% within 12 months.
In December, the company — which currently derives three-quarters of its earnings before interest, taxes, depreciation, and amortization, or EBITDA, from iron ore — announced that it would buy Argentina-based Rincon. Lithium Project for $825 million. The deal, which requires regulatory approval, would make Rio Tinto a major battery-grade lithium producer.
“What’s interesting is that they consistently went out and found this deal, and they will continue to look for similar opportunities,” said Sophie Lund-Yates, a senior equity analyst at UK-based broker Hargreaves Lansdowne. baron’s, “Not everyone has the firepower to make those changes.”
In other words, Rio Tinto (ticker: Rio) has the willingness and financial strength to close the Green Switch.
Sure, mining and caring for the environment seemed like an odd pairing a few years ago. but growing special mineral requirements Requirements for decarbonization have changed.
In particular, the need for materials needed for clean energy is now increasing, and this will help ignite the company’s already better-than-average mining image. Unlike some other miscellaneous miners, Rio Tinto does not produce any fossil fuels such as coal.
The Rincon project adds more green: Lithium is used to make electric-vehicle batteries. Industry experts say the demand for the metal is expected to nearly triple to 1.5 million metric tonnes by 2025. Last year, lithium carbonate prices more than quadrupled, up 413% to $32,600 per metric ton, according to S&P Global, due to increased demand. And a forecast deficit this year means prices could rise even higher.
The increased bet on meeting the Green Goals is only part of the story. According to Morningstar, RIO’s American Depository Receipts has recently outperformed its peers, producing an annualized return of 22.9% in the three years to January 3, up from the industry average of 20.2%. The company is valued at an average forward multiple of 9.3 versus 6.7 times forward earnings over the past five years.
Research organization CFRA has a target price of 58 pounds sterling ($78.50) on shares listed in the UK, or about 18% higher than its recent price of £49.36. “We like Rio for its best leverage profile among peers [with net cash since the middle of last year],” said a recent CFRA report. “An improved balance-sheet profile will provide support to the company in the face of macro uncertainty.”
The cherry on top is the 10% projected dividend for 2022. With potential stock price gains, investors can walk away with a 28% gain this year.
There are some significant risks with this investment. Iron-ore demand is heavily dependent on demand from Chinese steelmakers, who require the ore. The bursting of China’s real estate bubble could further plummet iron-ore demand and prices. According to TradingEconomics, iron-ore prices have fallen recently to $116, up from $225 per metric ton in May.
RBC Capital Markets analyst Tyler Broda says that if the price falls further, profits could drop dramatically, putting pressure on the company’s dividend.
Still, China’s economic troubles are widely acknowledged by investors, who suggest that concerns about a drop in iron-ore demand may already be reflected in Rio Tinto’s stock price, prompting the stock to bet. will be worth.
JANUARY 7, 2022
A hefty dividend and a strong pivot toward clean-energy products should make United Kingdom-based diversified miner Rio Tinto a good bet for investors. Experts say that those with a heavy appetite for risk can expect total returns to reach 30% within 12 months.
In December, the company — which currently derives three-quarters of its earnings before interest, taxes, depreciation, and amortization, or EBITDA, from iron ore — announced that it would buy Argentina-based Rincon. Lithium Project for $825 million. The deal, which requires regulatory approval, would make Rio Tinto a major battery-grade lithium producer.
“What’s interesting is that they consistently went out and found this deal, and they will continue to look for similar opportunities,” said Sophie Lund-Yates, a senior equity analyst at UK-based broker Hargreaves Lansdowne. baron’s, “Not everyone has the firepower to make those changes.”
In other words, Rio Tinto (ticker: Rio) has the willingness and financial strength to close the Green Switch.
Sure, mining and caring for the environment seemed like an odd pairing a few years ago. but growing special mineral requirements Requirements for decarbonization have changed.
In particular, the need for materials needed for clean energy is now increasing, and this will help ignite the company’s already better-than-average mining image. Unlike some other miscellaneous miners, Rio Tinto does not produce any fossil fuels such as coal.
The Rincon project adds more green: Lithium is used to make electric-vehicle batteries. Industry experts say the demand for the metal is expected to nearly triple to 1.5 million metric tonnes by 2025. Last year, lithium carbonate prices more than quadrupled, up 413% to $32,600 per metric ton, according to S&P Global, due to increased demand. And a forecast deficit this year means prices could rise even higher.
The increased bet on meeting the Green Goals is only part of the story. According to Morningstar, RIO’s American Depository Receipts has recently outperformed its peers, producing an annualized return of 22.9% in the three years to January 3, up from the industry average of 20.2%. The company is valued at an average forward multiple of 9.3 versus 6.7 times forward earnings over the past five years.
Research organization CFRA has a target price of 58 pounds sterling ($78.50) on shares listed in the UK, or about 18% higher than its recent price of £49.36. “We like Rio for its best leverage profile among peers [with net cash since the middle of last year],” said a recent CFRA report. “An improved balance-sheet profile will provide support to the company in the face of macro uncertainty.”
The cherry on top is the 10% projected dividend for 2022. With potential stock price gains, investors can walk away with a 28% gain this year.
There are some significant risks with this investment. Iron-ore demand is heavily dependent on demand from Chinese steelmakers, who require the ore. The bursting of China’s real estate bubble could further plummet iron-ore demand and prices. According to TradingEconomics, iron-ore prices have fallen recently to $116, up from $225 per metric ton in May.
RBC Capital Markets analyst Tyler Broda says that if the price falls further, profits could drop dramatically, putting pressure on the company’s dividend.
Still, China’s economic troubles are widely acknowledged by investors, who suggest that concerns about a drop in iron-ore demand may already be reflected in Rio Tinto’s stock price, prompting the stock to bet. will be worth.
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