01 AUGUST 2012Balkans.com
Aluminij Mostar Bosnia tol cut production by 12.5%
Edited by : AL CIRCLE
1 min read
Bosnian aluminium producer Aluminij Mostar will cut production by 12.5% with immediate effect, due to high electricity costs and low aluminium prices, and may cut production further in September, it said in a statement on Thursday July 26, Metal Bulletin reported. "The decision was made unanimously, due to the extremely difficult situation that Aluminij has been facing, entirely because of too high electricity prices and the lowest metal prices in the history of this smelter, [when] considering the prices of raw materials," Mostar said. The smelter stressed that it considered the initial 12.5% production capacity reduction to be "the beginning of the extensive process". The decision to shut down one part of the electrolysis cell in the Mostar electrolysis plant was expected, it added.
Metal Bulletin reported earlier that Aluminij Mostar had been on its way to boosting capacity by 20%, as the result of an investment made by Glencore. Glencore - which has an offtake agreement with Aluminij until 2014 - attempted to take a majority stake in the company in 2010, until the government of Bosnia and Herzegovina cancelled the negotiations.
Metal Bulletin reported earlier that Aluminij Mostar had been on its way to boosting capacity by 20%, as the result of an investment made by Glencore. Glencore - which has an offtake agreement with Aluminij until 2014 - attempted to take a majority stake in the company in 2010, until the government of Bosnia and Herzegovina cancelled the negotiations.
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