Sale deadline for Bosnia aluminium plant extended

Bosnia's Muslim-Croat federation government has extended for a year a deadline for sale of an 88.0% stake in the country's sole aluminium smelter, Aluminij Mostar. The head of the region's privatisation agency, Enes Ganic, said the government made the extension, the fourth since 2007, to give more time to the commission tasked with the privatisation to resolve outstanding issues. The sale of Aluminij Mostar to the best bidder, a consortium led by Swiss-based commodities trader Glencore International AG, has been stalled for over two years over high electricity prices and environmental and ownership issues. The government has also complained about incomplete registration of the company, following the agreement with management in 2006 giving each party a 44.0% stake in the smelter. The remaining 12.0% stake belongs to Croatia's TLM company. "The privatisation commission will invite the best bidder to clarify all details of its offer within 30 days," Ganic told a news conference. Aluminij Mostar, Bosnia's largest exporter, had said it could restore full production in the autumn if the metal's price recovery continues, and is well positioned to survive the economic slowdown. The smelter cut output by a quarter this year due to the global economic downturn and high electricity rates. The company said annual production could reach 300,000 tonnes if plans to build a plant for aluminium waste recycling and new electrolysis went ahead. But the plans depended on completing privatisation of the company and finding a power supplier that would offer favourable electricity prices. Source: Reuters