Arab investors interested in Mostar's Aluminij

MOSTAR, (Patria) – A delegation of the Government of the Federation of BiH is expected to hold talks on Thursday with Arab investors who are interested in Aluminij d.d. Mostar, multiple unofficial sources in the Government confirmed to the news agency Patria.

An official confirmation of this information is still pending. 

Arab investors, whose names are still being kept secret, have previously expressed interest in Mostar's Aluminij, but the HDZ party opposes their entry into the Mostar-based company.

The management of Aluminij sent a letter on Tuesday informing the environmental protection funds of the Federation of BiH and HNC, the Civil Protection Administration of HNC, and the Mostar Police Administration that Aluminij's facilities will be shut down on Saturday, July 6, one minute past midnight.

One minute past midnight, in a "risky technical-technological process," Aluminij will be disconnected from the high-voltage electricity grid, according to the letter signed by Aluminij's General Director Dražen Pandža, the content of which was published by the Mostar portal Bljesak.

"Given that we are unable to predict all the consequences that the cessation of the factory's operation may cause in relation to the health and lives of people and the environment as a whole, we ask you to consider this information, in accordance with your capabilities and competencies, to help minimize any potential negative consequences, with the aim of protecting human health and the overall environment in the area gravitating around the Aluminij d.d. Mostar factory complex," the letter states.

It is added that Aluminij d.d. Mostar does not have sufficient resources for adequate protection of property and security, both within and outside the factory complex, and the authorities are asked to ensure enhanced protection of Aluminij's property after the factory ceases operations.

"Our internal security experts will be available for all consultations agreed upon with the police, so that you can receive useful information about the overall situation, priorities, facility layout, and everything else that is important for the successful organization of the protection of Aluminij's property," the letter states.

Aluminij announced earlier on Tuesday that members of the Management Board would address media representatives on Wednesday, July 3, after a session of the Supervisory Board of the Company.

In the past few years, Aluminij has been operating at a loss, and the company's total debt is almost 400 million marks, of which more than half is debt for consumed electricity.

Last week, a meeting was held at the FBiH Government with representatives of the Swiss company Glencore, which expressed readiness to take over the Mostar company, but the meeting ended without an agreement. The main prerequisite for Glencore's entry is the provision of a subsidized electricity price for Mostar's Aluminij, which the FBiH Government could not accept.