Bosnian aluminium producer Aluminij Mostar has resumed production after staying shuttered for 15 months, with support from Israeli- Chinese consortium. The company, which was looking at restructuring its operations, had signed a long-term agreement to lease its production assets to M.T. Abraham Group of Israel and China’s Machinery Engineering Corporation (CMEC) and China Nonferrous Metal Industry’s Foreign Engineering and Construction, for liquidity to keep the smelter going.
Aluminij Industries will be producing 3,000mt aluminium logs in the first two months after the restart of production, reported local media. In 2021, the company has plans to produce 50,000mt of aluminium products.
Operations at the company’s anode and electrolysis plant will start only after the investors secure electric supply at a reasonable price.
In October, Aluminij also signed an agreement with Dubai-based Advaita Group to sell half of the output for the next ten years.
Aluminij Mostar was distressed to suspend its production in July last year after its electric supply was cut due to the non-payment of bills.
The Bosnian Federation government voted in favor of production resumption at Aluminij and had given its nod for a rescue plan prepared in late 2019.
Bosnia’s Federation government has a 44pc stake in Aluminij. Among others, the Croatian government has a 12pc stake in the company.