The European Union (EU) has a significant strategic interest in Bosnia and Herzegovina (BiH) due to the large deposits of minerals and metals that would aid in its ‘green’ transition, and international companies are exploiting the complex state structure to extract these materials, thereby harming the local population and environment, as stated in an article by Sead Husic. He notes that the project to mine lithium in the Republika Srpska (RS) has come “as if ordered,” given the financial difficulties facing the entity, but due to the unresolved issue of state property, these companies operate in a “legally uncertain” environment.
Husic begins the article with a conversation he had with Adrijana Pekic from the association “Cuvari Majevice” (Guardians of Majevica). He describes an “idyllic” landscape that Pekic fears could disappear. After geological surveys were conducted, it was determined that precious minerals and metals are located there.
In the fall of 2022, it was revealed that the Swiss company Arcore AG had discovered a large lithium deposit, as well as magnesium, potassium, and boron, during secret test drilling on Mount Majevica.
“One man dictates everything in the RS”
“In the RS, one man dictates everything: the President of the RS, Milorad Dodik,” writes Husic, noting that he has been ruling this part of BiH for 18 years.
He further states that due to Dodik’s policies, Germany stopped four infrastructure projects in the RS last year worth 105 million euros, and the United States (U.S.) imposed sanctions on him and his closest associates several years ago. In March last year, Washington once again tightened its approach: the Office of Foreign Assets Control (OFAC) put Dodik and his followers on the list of sanctioned persons, resulting in the closure of all their private and business accounts in BiH.
“The lithium mining project in Lopare comes as if ordered because any investment would benefit the RS. And this project promises millions in profits,” writes Husic.
“People fear for their livelihoods”
According to Arcore’s estimates, in the planned mining area on Mount Majevica, covering an area of about 25 square kilometers, there are 1.5 million tons of lithium carbonate, 14 million tons of boric acid, 35 million tons of potassium, and 94 million tons of magnesium sulfate. According to Arcore’s plans, mineral deposits would be exploited through surface mining over a period of 50 years.
When residents of Lopare learned about these plans in September 2023, local resistance was organized after a few weeks, with about 13.000 residents joining. At a meeting of citizens in late February, local politicians promised that a lithium mine would not be opened here.
Husic writes that it is no wonder people are concerned, and the media have been reporting for months on the massive environmental destruction caused by mines in the small town of Vares, in the Federation of BiH (FBiH) entity. Here, the United Kingdom (UK) corporation Adriatic Metals has secured rights to excavation and is searching for silver, gold, lead, zinc, copper, and antimony ores. It is estimated that there are 22.5 million tons of metals there, of which the EU also has a strategic interest.
“Foreign companies operate in a legally uncertain environment”
He then explains the structure of BiH established by the Dayton Peace Agreement, under which entities have a high degree of autonomy. To ensure that both sides adhere to the peace agreement, the position of High Representative was created, who has broad powers and can enact laws and regulations that everyone is obliged to follow.
Since August 2021, this position has been held by the CSU politician Christian Schmidt. This German citizen has great responsibility and, as Husic notes, “plays a key role when it comes to granting the right to exploit mineral resources.”
He explains that in 2005, the former High Representative Paddy Ashdown issued a temporary ban on direct or indirect disposal of state property until a final agreement is reached, a decision that Dodik continues to ignore, and he repeats threats of secession if the issue of land ownership is resolved in a way that does not suit him.
“So, foreign companies operate in a legally uncertain environment,” he writes, noting that this is why the government of the FBiH sent a request for ownership rights to the High Representative in November 2023 because they planned to award a mining concession to Adriatic Metals in Vares, N1 writes.
E.Dz.
