The constitutional court said in a statement on its website that a 2022 government decision to revoke permits awarded to Australian firm Rio Tinto was "not in line with the constitution and the law".

However, the court added it was the government that "decides on further realisation of the particular project".

Earlier Thursday, Rio Tinto confirmed to AFP they had used "available legal remedies in line with Serbian law".

The world's second-largest metals and mining corporation had hoped to develop the multibillion-dollar project in Serbia's western Jadar valley, known for some of Europe's largest lithium deposits

But the government said in 2022 it had invalidated "all permits, resolutions and decisions" related to the Rio Tinto project, forcing the firm to halt its work in the area.

The decision followed massive demonstrations in Belgrade against the mine, which activists said endangered the environment of the agricultural region.

According to Rio Tinto data, the mine in Jadar could produce 58,000 tonnes of lithium annually, enough for 1.1 million electric vehicles.

mp-oz/ljv/jxb

RIO TINTO PLC