July 15 (SeeNews) - Bosnia's Federation government has decided that ailing aluminium plant Aluminij should continue to operate in the next six months, as during this period it should come up with a rescue plan, local media reported on Monday.
The problem with Aluminij's power supplies, however, remains unresolved. Mostar-based Aluminij shut down its operations on July 10 after its power supply was cut off due to swelling unpaid bills.
"The company will be able to exist in the next six months and nobody will be able to block its accounts or launch bankruptcy proceedings," the head of Aluminij's supervisory board, Zdenko Klepic, was quoted by news wire eKapija as saying after a meeting between the leader of the Croatian Democratic Union of Bosnia and Herzegovina (HDZ BiH) party, Dragan Covic, the Federation's finance minister Jelka Milicevic, Aluminij's management, supervisory board and trade unions.
A decision has been taken to quickly relaunch production at Aluminij's foundry, Klepic added.
Following the meeting, an emergency committee of government officials and representatives of the company's management and workers, which is headed by Klepic, has been set up to prepare and implement rescue measures.
Aluminij has been one of the largest electricity consumers in Bosnia, accounting for a quarter of the electricity consumption in the Federation when operating at full capacity. The company has been in persistent trouble over high prices of electricity and raw materials. Its outstanding debt to power utility Elektroprivreda HZHB reached 280 million marka ($161 million/143 million euro).
Aluminij employs 900 people and has numerous suppliers and other cooperating units, including Croatia's Adriatic port of Ploce, with the Mostar-based company engaging 20% of the port's capacities.
The Federation government controls 44% of Aluminij, followed by the government of neighbouring Croatia with 12%, with the remainder held by smaller shareholders.
The Federation is one of two autonomous entities forming Bosnia and Herzegovina. The other one is the Serb Republic.
(1 euro = 1.95583 marka)