SeeNews reported that the government of Bosnia’s Federation said it has held talks with representatives of Emirates Global Aluminium who have declared their interest in drawing a plan for the recovery of ailing aluminium producer Aluminij. It said “EGA’s representatives have proposed to first carry out a financial and technical analysis of Aluminij’s operations and then draw a five-year plan that should result in the recovery of the Bosnian company. EGA has also pledged to double Aluminij’s output.”
Previously, the Federation government held talks with British-Swiss company Glencore on the fate of Aluminij.
Federation’s energy minister Nermin Dzindic noted that the meetings with the two interested investors were successful, estimating EGA’s proposal as more precise, the entity’s government said. He added that in the meantime Glencore has sent a request to the Federation government to continue with the negotiations.
The Federation government, Aluminij’s largest shareholder, has been under pressure by potential investors and the company’s management to subsidise the electricity price for the aluminium smelter. The government, however, reiterated its position earlier this week that it is no longer able of subsidising Aluminij’s electricity costs as the price for the taxpayer is too high.
The Federation government controls 44% of Mostar-based Aluminij, followed by the government of Croatia with 12%, with the remainder held by smaller shareholders. The Federation is one of two autonomous entities forming Bosnia and Herzegovina. The other one is the Serb Republic.
