Bosnia's aluminum smelter Aluminij Mostar seeks strategic partner
2019-06-19 11:38:58 [Print]
General manager of Aluminij Mostar, an aluminum smelter in Bosnia, disclosed on June 17 that the company is seeking a strategic partner to avoid bankruptcy and a consortium led by London-listed miner and commodity trader Glencore has shown interest.
Based in Bosnia's southern town of Mostar and one of the Balkan country's biggest exporters, Aluminij has been in trouble for years over heavy debt accumulated because of high alumina and electricity prices.
The company was brought to the brink of closure last year but the government of Bosnia's autonomous Bosniak-Croat Federation, which owns a 44% stake in the smelter, has helped it stay online.
The government has cautioned however its future support would depend on the findings from an audit of the Aluminij's operation it had commissioned.
Federation Industry Minister Nermin Dzindic said the audit had shown that Aluminij could resume operating if it found a strategic partner which would help it re-organize, or otherwise face bankruptcy.
"The consortium led by Glencore is in principle interested to take part in the privatization of Aluminij," Aluminij's General Manager Drazen Pandza said. "The next phase for them is to talk to the government representatives about technical aspects."
Aluminij, in which small shareholders own a 44% stake and the Croatian government a 12% stake, employs about 1,000 people.
Based in Bosnia's southern town of Mostar and one of the Balkan country's biggest exporters, Aluminij has been in trouble for years over heavy debt accumulated because of high alumina and electricity prices.
The company was brought to the brink of closure last year but the government of Bosnia's autonomous Bosniak-Croat Federation, which owns a 44% stake in the smelter, has helped it stay online.
The government has cautioned however its future support would depend on the findings from an audit of the Aluminij's operation it had commissioned.
Federation Industry Minister Nermin Dzindic said the audit had shown that Aluminij could resume operating if it found a strategic partner which would help it re-organize, or otherwise face bankruptcy.
"The consortium led by Glencore is in principle interested to take part in the privatization of Aluminij," Aluminij's General Manager Drazen Pandza said. "The next phase for them is to talk to the government representatives about technical aspects."
Aluminij, in which small shareholders own a 44% stake and the Croatian government a 12% stake, employs about 1,000 people.
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