The management of the aluminium smelter Aluminij Mostar has secured electricity supply for yet another 24 hours until midnight on Monday but if the problem is not resolved the company will have to shut down production. CEO Drazen Pandza reiterated that if the FBiH government does not interfere, the problem cannot be solved. Representatives of the company are reportedly in constant contact with FinMin Jelka Milicevic but the government is yet to take an official stance. Information that the government could hold a sitting on Friday has surfaced but the management of the aluminium smelter said it would be too late.
An abrupt disconnection of Aluminij Mostar from the electricity grid would mean complete damage, “freezing” of liquid aluminium in electrolytic cells, risk of explosions and endangering workers in the production process, the management warned. The company has accumulated KM 350mn worth of debts, half of which for electricity supply. Aluminij Mostar used to be BiH’s top exporter but due to high electricity prices and unfavorable aluminium prices it accumulated debts in the past years. The entity government owns a 44%-stake in the company, small shareholders further 44% and the rest (12%) is in the hands of Croatia’s TLM.