British–Swiss multinational commodity trading and mining company Glencore has reportedly shown interest in acquiring Bosnia’s aluminium smelter Aluminij Mostar. The news came after Glencore’s general manager said this on Monday, June 17.
Bosnia’s Aluminij has been in trouble for years and therefore, seeking a strategic partner who can protect it from bankruptcy. The company accumulated heavy debt over the years because of high alumina and electricity prices. The situation further worsened when Bosnian power utility Elektroprivreda HZHB prepared to cut electricity supplies to Aluminij on June 16 due to unpaid debts.
Aluminij’s total debt is at 377 million Bosnian marka, of which 280 million marka is owed to the state utility Elektroprivreda HZHB.
However, news wire Klix.ba reported on Sunday that Aluminij managed to agree another two weeks of power supplies from an alternative company.
The company had come to the brink of closure last year but the government of Bosnia’s autonomous Bosniak-Croat Federation, which has a stake of 44 per cent in the smelter, helped it stay online.
Federation Industry Minister Nermin Dzindic said on Monday that as per the audit report Aluminij could resume operation if found a strategic partner, otherwise would face bankruptcy.
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