INTERVIEW-Bosnia alumina plant ups output to pre-crisis level

* Output lifted to pre-crisis levels * Expects 200,000 t of alumina in 2009 * New investment could boost zeolite output to 100,000 t By Maja Zuvela SARAJEVO, Oct 13 (Reuters) - Bosnia's sole alumina plant, Birac, has raised its output to pre-crisis levels of 50 percent of the total capacity because of increased demand, its general manager told Reuters on Tuesday. "In relation to the previous period, the situation is gradually improving. We expect to produce 220,000 tonnes of alumina and 60,000 tonnes of zeolite in 2009," Virginijus Vajega said in an interview, but added: "It is still early to talk about the end of the crisis and alleviation of its consequences." The global economic downturn, lower alumina prices and shrinking demand earlier this year forced the company, in the eastern town of Zvornik, to cut output to 21 percent of the installed capacity of 600,000 tonnes per year, Vajega said. Birac, majority owned by Lithuania's Ukio Bank Investment Group , is the only alumina plant in the region that has retained production since the crisis started, he said. "We are carefully monitoring developments on the world market and adjusting our production. There is more interest for our alumina but low prices still do not provide for positive operation," he said. Birac launched a restructuring last year which helped it generate a profit of 206,000 Bosnian marka ($156,000) in 2008, after reporting losses of 9.5 million marka a year earlier. But Vajega said it was still hard to give any estimate for 2009. He said the company planned to invest in zeolite production, which will boost output to 100,000 tonnes in 2010. Since 2006, the plant has operated at only a half of its capacity because of low prices and the high cost of electricity and gas needed for its operations. In February it said it may be forced to completely halt output because of high costs, which prompted unions to protest and demand government help by rescheduling debt payments and granting subsidies for gas, power and transportation. The government of Bosnia's Serb Republic, one of the country's two autonomous regions, has agreed to reschedule part of the debt. Aluminium smelters across the Balkans have said this week they will wait a little longer before restoring full output. The exception is Bosnia's Aluminij Mostar, which began returning to full production in September. [ID:nL7700646]. ($1=1.32 Bosnian marka) (Editing by Zoran Radosavljevic and William Hardy)