The plant is expected to start production in two years, creating 100 new jobs, the Serb Republic government said in a statement.
Mrkonjic Grad is located in the western part of the Serb Republic, one of the two entities that form Bosnia and Herzegovina. The other is the Muslim-Croat Federation.
Metalleghe produces carbon recarburizers and ferro-alloy briquettes.
($=0.7950 euro)