Anglo-Australian mining group Rio Tinto is preparing a compensation claim of between €1bn and €1.5bn against Serbia over the suspension of its Jadar lithium project, opposition leader Dragan Djilas claims, N1 reported on January 4.

Djilas, head of the opposition Freedom and Justice Party, said Rio Tinto’s claim stems from the decision to halt the multi-billion-dollar lithium project in western Serbia after years of delays and public opposition.

Rio Tinto in November placed the Jadar project under “care and maintenance”, citing a lack of progress on permits, according to a company memo seen by the Wall Street Journal. The company said it would maintain its presence in Serbia despite suspending development.

The decision dealt a blow to Europe’s efforts to secure local supplies of lithium, a key metal for electric vehicle batteries, and to Serbia’s ambitions to play a role in the continent’s green transition.

Speaking on the Dezurni krivac podcast, Djilas said he had been told by reliable sources that Rio Tinto was seeking compensation for both invested funds and lost future profits. He blamed President Aleksandar Vucic and former Prime Minister Ana Brnabic for encouraging the company to proceed with costly testing and planning.

“This is the cost of Vucic’s madness,” Djilas said, claiming government officials had made both written and oral commitments to Rio Tinto. Under international law, he said, such verbal assurances were binding.

Djilas said the public was unaware of the extent of the promises made to the company, adding that more than 80% of Serbian citizens opposed the lithium project.

“When this is officially announced, Vucic will blame the people and those who protested,” he said.

Serbia’s government and Rio Tinto are yet to respond to the comments.