Glencore reportedly eyes BiH’s Aluminij Mostar

Global commodity trader Glencore wants to become a strategic partner of the indebted aluminium smelter Aluminij Mostar, the daily Dnevni Avaz reported. The FBiH government is expected to discuss today with the management of Aluminij Mostar the effects of fiscal consolidation in the company and a report of an independent auditor. Total debt of the aluminium smelter amounts to KM377.1m, of which its debt for power supplies stands at KM280.1m.

The power utility Elektroprivreda HZ HB cut power supply to Aluminij Mostar as of Jun 16, but local media claim that the company succeeded in finding another supplier for the next 15 days until the entity’s government finds a solution. FBiH energy minister Nermin Djindjic said a few days ago that there are two possible scenarios for Aluminij Mostar — finding a strategic partner or bankruptcy. 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.

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