FBiH government starts talks with Glencore over indebted Aluminij Mostar

The FBiH government held on Wednesday talks with Glencore about the possible restructuring of aluminium smelter Aluminij Mostar, PM Fadil Novalic said. He noted that the only condition set by the government was to preserve jobs. Novalic also said that the government currently could not subsidise electricity for the aluminium smelter. FBiH energy minister Nermin Dzindic said in his turn that the solution for the indebted company was a brand new company to be founded so that the 900-strong workforce is kept. Talks with Glencore will continue.

Total debt of Aluminij Mostar amounts to about KM377m, of which KM280m are owed to the power utility EP HZHB. The FBiH government owns a 44%-stake in the company, small shareholders further 44% and the rest (12%) is in the hands of Croatia’s TLM. The government has said that a failure to find a strategic partner for the company would lead to bankruptcy.

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