Bosnia's Serb Republic receives four bids for alumina plant Birac

Bids were placed by Swiss-based Batagon International, UK-based Metal Investments Limited, as well as Bosnian companies MG MIND and Pavgord, the Serb Republic government said in a statement last week.

On December 14, the government requested bidders to provide guarantees that they will meet Birac's obligations under the pre-defined conditions for the sale of the company by the end of the year. Metal Investments Limited withdrew its offer following the request.

The potential buyer will have to invest at least 50 million euro ($57 million) in the development of the company over five years, keep the current 1,500 employees and fulfil the obligations of Birac under an ore supply contract signed with Bosnian company Boksit, the entity government said.

Birac entered bankruptcy in 2013 and was raided by police and tax inspectors over suspected illegal dealings in several transactions. Prior to the Birac bankruptcy, Lithuania's Ukio Bank, which itself went bankrupt in 2013, owned 56.8% of the alumina producer following a 2001 privatisation deal.

($ = 0.87747 euro)