Rio Tinto PLC (LSE:RIO) raised its iron ore production forecast for the current year but pushed back the expected start of a major lithium project in Serbia, as the mining giant reported lower production of nearly all metals in 2021.
Iron ore output dropped by 4% to 320mln tonnes, copper 7%, titanium dioxide by 9% and aluminium 1%.
Cultural heritage issues, Coronavirus (COVID-19), high rainfall, industrial action and staffing issues generally were among the reasons cited for the lower production.
For 2022, Rio said it expects to ship between 320-335Mt of iron ore, a 4% increase at the top end, while production of copper, aluminium and titanium dioxide will be broadly flat.
A major disappointment will be the delay to the Jadar lithium project in Serbia, which would make Rio Europe’s largest producer of the battery metal when up and running.
The company said the first production will now be 2027 at the earliest against guidance of 2026 previously.
Jadar has faced intense local criticism over the possible environmental damage with a general election also scheduled for April.
"We fully understand the concerns amongst some Serbian stakeholders about environmental impacts and we will continue to engage to demonstrate the project has developed mitigation solutions in the project plan," Rio said in a statement.
The row over the treatment of Serbian tennis star Novak Djokovic, who was deported ahead of the Australian Open due to his COVID-19 vaccination status even though he won the competition last year, has also strained relations between the two countries.
Djokovic has previously supported the protests against the project, according to Reuters.