On Wednesday, June 26, officials from Bosnia’s Federation Government conducted a meeting with British-Swiss company Glencore, where they discussed on finding ways to rescue ailing aluminium smelter Aluminij and also the establishment of a new company, said the government in a statement.
The talks focused on possible restructuring of Aluminij, which would involve establishing a consortium of companies led by Glencore and comprising Bosnian aluminium processor Feal and local companies PPD and Erdal. Energy minister Nermin Dzindic said Glencore was ready to invest but did not reveal the amount in the meeting.
Last week, local news daily Dnevni Avaz reported that Aluminij would require more than 500 million marka to survive.
The Federation’s Prime Minister Fadil Novalic said in the government statement, "The only condition of the Federation's government is not to leave any Aluminij worker jobless and to continue the company's operations."
An audit conducted by KPMG confirmed Aluminij’s huge losses determined its alarming financial state and concluded that privatisation could be the only life-saving measure for the smelter.
Novalic stressed that the government could not subsidise Aluminij’s electricity consumption, which was a key element in the company’s operations since its unpaid bills already totalled 207 million marka.
The Federation government controls 44% of Aluminij, followed by the Croatian government with 12%. The remainder belongs to smaller shareholders.
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