About Us
01 About the Project
02 Project Implementation
03 Myths and Facts
04 About Palkovsky Group
About the Valjevo Borates project
Valjevo Borates is a project for responsible underground extraction of sodium borate ore located approximately 15 kilometres northeast of Valjevo, its safe processing using proven and non-toxic technologies, and the environmental remediation of inactive coal pit areas.
The project is led by the Palkovsky Group, a family-owned company with extensive experience building new sustainable industries and infrastructure.
Why is it important?
The Valjevo borate deposit is one of the three most significant sodium borate deposits in the world. It is a rare resource that could bring substantial benefits to Valjevo and Serbia. Borates are used in agriculture, pharmaceuticals, energy, automotive, electronics, construction materials, aerospace other industries which drive the world economy.
Economic benefits
The project has the potential to deliver significant economic benefits. Palkovsky Group proposes sharing those benefits with the Republic of Serbia through a public–private partnership. The company would provide financial resources and technical expertise to implement the project, while profits would be shared with the Republic of Serbia and its citizens.
With an investment estimated at approximately €500 million and an operational period of more than 30 years, mining royalties are projected to generate around €500 million for the Republic of Serbia and the City of Valjevo (of which approximately €200 million would be allocated to the City of Valjevo). Approximately 1,000 employees of various educational and professional profiles could be engaged during project implementation.
Palkovsky Group has established a foundation which is intended to provide financial support for projects in four areas: youth and skills; education and science; ecology and environmental protection; and community development and sustainability.
Environmental protection
Processing sodium borate ore into final saleable product would produce non-pollutive tailings, which are planned to be safely used to backfill inactive coal pits. This would enable remediation, reclamation, and revegetation of the coal pit area, allowing for the restoration of the landscapes to their natural condition.
What matters to us?
Transparency
Although the project remains in the development phase, the company is committed to sharing all available information with stakeholders. Transparency is considered the foundation of trust. Project updates will therefore be published on this website and through other communication channels. The company remains open to all questions and inquiries regarding the Valjevo Borates project.
Trust
Palkovsky Group seeks to build long-term trust with the local community, the Republic of Serbia as a partner, employees, suppliers, media representatives, civil society organisations, academic institutions, and environmental organisations and advocates.
Environmental protection
Environmental protection is a core value of Palkovsky Group. Its founder, Petr Palkovsky, brings extensive experience from launching successful ventures in Canada and the United States that extensively contributed to environmental protection. This commitment has been embedded in the company’s approach to the Valjevo Borates project.
“Development in harmony with nature and people” is the company’s guiding principle, emphasising that corporate success must never come at the expense of people or the environment.
Care for the local community
The Valjevo Borates project has been planned with careful consideration of the local community and with the goal of avoiding negative impacts on everyday life while creating long-term economic, social and environmental benefits.
Through careful design, the visible surface footprint of the mine would be limited to approximately 10 hectares, while the processing plant is planned to be located in an industrial zone adjacent to large inactive coal pit areas.
Through the Palkovsky Foundation, the company supports various community-led initiatives targeting four areas: youth and skills; education and science; ecology and environmental protection; and community development and sustainability. The Foundation support community-led initiatives that deliver measurable benefits to the community.
The company views this project as an important development opportunity for the Valjevo region and seeks to work closely with the local community to maximize opportunities for societal benefit while preserving and enhancing the natural environment.
Economic benefits
Companies are established to generate economic value, and the Valjevo Borates project is expected to be economically viable. What distinguishes this project is the implement it in partnership with the Republic of Serbia, allowing the State to participate in project profit above and beyond legislated state royalties.
The company also plans to reinvest part of its earnings into community development through the Palkovsky Foundation by providing financial support for community-led initiatives in the Valjevo region and across Serbia.
Economic success is an important outcome, but the means to which that economic success is achieved is equally important.
Project implementation
The Valjevo Borates project is currently in the development and permitting phase.
The process requires several years of research, technical analysis, and detailed planning to ensure that the resource is developed responsibly and sustainably in cooperation with Valjevo and Serbia.
Myths and Facts
Transparency is essential in projects of this scale. Various unverified claims have appeared in public discussion that do not reflect factual information. The following section addresses some of the most common misconceptions regarding the project.
Company
Myth
Palkovsky is actually a front for Rio Tinto.
Facts
Palkovsky Group is a family-owned company, majority-owned by the Palkovsky family based in Canada. The company operates as an independent business entity and has no corporate or business affiliation with Rio Tinto.
Ore
Myth
Palkovsky is going to mine lithium.
Facts
All project activities, including exploration, technical studies, permitting, plant design, investment planning, and equipment procurement, are focused exclusively on the development of sodium borate extraction and processing.
Location
Myth
The ore lies beneath the city of Valjevo itself, so there will be land expropriation, and people will be displaced.
Facts
The identified ore deposit is located approximately 15 kilometres northeast of Valjevo and is planned to be developed using “cut and fill” underground mining methods, avoiding any surface impact and strengthening the ground.
Land
Myth
The mine will be an open-pit operation spanning 16 square kilometres (1,600 hectares), primarily located on farmland.
Facts
The project involves the development of an underground mine at a depth of approximately 275 metres. Surface facilities planned in the Valjevo area would occupy less than 10 hectares of land, minimising land use and preserving existing day to day activities of the local communities . An additional approx.. 30 hectares outside of the Valjevo region near one of the inactive coal pits areas is required for the ore processing plant, with ore to be transported from Valjevo to the facility by rail.
Myth
Hundreds of hectares of fertile farmland will be purchased for the mine.
Facts
The only visible part of the ore extraction operation would occupy approximately 10 hectares. The site would include the elevated entrances to two parallel underground tunnels (declines), a covered ore stockpile warehouse, operation administration facilities, enclosed conveyors for ore transport, and a rail loading ramp.
Approximately 30 hectares near the area of inactive surface pits outside the Valjevo region is planned for the ore processing facility, enabling the reuse of already-existing industrial areas.
Myth
Underground mining will cause the surface to collapse and cracks to appear, potentially damaging structures above the mine.
Facts
The underground mining method planned for the project is known as cut-and-fill. This method involves extracting ore and then backfilling the mined underground openings with a concrete-like material.
A structured network of underground rooms (stopes) would be developed from which ore is extracted, while pillars of intact material temporarily remain in place to support stability until backfilling has occurred.
Once ore is extracted, the walls and ceilings of these openings are reinforced to maintain structural integrity of the rooms. The underground openings are then filled with backfill material, meaning that mining voids are not left empty. This modern mining approach helps protect the surface above the mine, allowing everyday activities to continue without disruption.
Use of local road infrastructure
Myth
Heavy trucks will haul ore and destroy local roads.
Facts
Ore is planned to be transported from the mine to the mineral processing plant by freight trains using the existing railway infrastructure to a site near inactive coal outside of Valjevo. This approach minimizes traffic impacts and avoids the use of local roads for ore transport.
Use of hazardous chemicals during processing
Myth
Toxic, aggressive substances will be used during processing, threatening the environment.
Facts
Sodium borate processing is a long-established and proven industrial process that uses hot water and sodium carbonate. No hazardous chemicals are involved. The overall process is comparable to that commonly used in water treatment facilities.
Water use
Myth
Large quantities of water will be used for mineral processing, which will jeopardies and pollute local water sources.
Facts
All water used during mineral processing would be treated and reused within a closed-loop system, ensuring no contact with surrounding surface or groundwater resources.
Tailings
Myth
Processing residues (tailings) will be toxic, and their disposal will further damage the environment.
Facts
Tailings generated from sodium borate processing are non-toxic, as the process technology is based on hot water and sodium carbonate. The project plans to place tailings in inactive coal pits following international best standard.
Through revegetation and tree planting, these inactive coal mining areas would be restored and returned to natural use.
Economic Benefit
Myth
All the benefits from the mine will go to foreigners.
Facts
The Valjevo Borates project will be developed in partnership with the Republic of Serbia through a public–private partnership model. This approach ensures that the economic benefits of the project are more broadly shared with the state and local community.
Additionally, the Republic of Serbia and the City of Valjevo are projected to receive approximately €500 million of total royalties during the mine’s expected operational life of more than 30 years.
Myth
Valjevo will have no benefit, only damage from the mine.
Facts
The Valjevo Borates project is specifically designed to maximize potential benefits to the local community and reduce impact from related activities at surface.
Royalties generated during the expected operational life of the mine (more than 30 years) are estimated at approximately €500 million. Under current legislation, the City of Valjevo would receive 40% of this amount—around €200 million.
Approximately 1,000 people across a wide range of professional and educational profiles are expected to be engaged in the project.
The inclusion of local companies in the project’s supply chain is expected to ensure that part of the planned investment, estimated at approximately €500 million, supports business development and economic growth among Valjevo-based companies.
Palkovsky Group has also established a foundation that provides financial support for community-led initiatives in four key areas: youth and skills; education and science; ecology and environmental protection; and local community development and sustainability. The foundation channels funding into community-led initiatives aimed at improving quality of life in Valjevo.
The Valjevo Project may also attract additional investors interested in developing manufacturing industries that use borates as a raw material, potentially creating new employment opportunities for Valjevo, the surrounding areas, and the Republic of Serbia.
About Palkovsky Group
Palkovsky Group is a family-owned company founded to realise the vision of its founder, Petr Palkovsky, and his family: the belief that economic development can only succeed when pursued in harmony with nature and people.
A marine biologist by education, Mr. Palkovsky has shaped the company’s philosophy around projects that deliver economic value while benefiting the broader community and adhering to strict environmental protection standards and principles of responsible, sustainable business.
The Group develops projects that support economic growth while safeguarding community well-being and preserving the natural environment for future generations. Its investment focus includes the responsible and sustainable development of mineral resources as well as renewable energy sources, both aimed at creating long-term societal value through responsible environmental stewardship.
Palkovsky Group brings together domestic and international experts with extensive knowledge and experience, providing confidence that its projects are designed and implemented in harmony with nature and society.
Projects in Serbia are implemented through Palkovsky d.o.o., headquartered in Belgrade.
Company Mission
Our mission is to conduct comprehensive research and analysis, in full compliance with all applicable regulations and the highest professional standards, and demonstrate that natural resources can be developed responsibly, ensuring environmental protection while unlocking their full economic and social potential for Serbia.
Company Vision
Our vision is not only to restore, but to create a business model in which the environment, the economy, and society grow together, hand in hand.
Palkovsky Foundation
Beyond its commercial activities, Palkovsky Group seeks to create broader social impact through the Palkovsky Foundation. This philanthropic initiative reflects the family’s commitment to investing in a sustainable and secure future for the communities in which the Group operates.
The Foundation provides financial support for community-led projects in four key areas: youth and skills; education and science; ecology and environmental protection; and community development and sustainability.