Bosnia's Aluminij sees better 2010 after tough year

* Aluminium smelter sees profit, revenue, output up in 2010 * Output could reach 300,000 T if investments go ahead * Hopes for resolution of sell-off issues in 2010 By Maja Zuvela SARAJEVO, Jan 11 (Reuters) - Bosnia's sole aluminium smelter said on Tuesday it expects an improved 2010 amid expanding demand and rising global prices, after posting a 30 percent decline in revenues and flat profit in 2009. "The global economic crisis strongly influenced our business results last year," the management of Aluminij Mostar, the country's top exporter, told Reuters in a statement. The smelter produced 96,000 tonnes of primary aluminium in 2009, down from 123,000 tonnes in 2008, after cutting output by a quarter last year. The smelter gradually started returning to full production in autumn. Its revenues and exports fell by a third in 2009 to close to 138 million Bosnian marka ($103 million) and 260 million marka respectively. "The price of aluminium has been constantly rising over the past two months while the stocks have been declining, fuelling demand for primary aluminium and we expect a better business climate this year," the management said. "We hope we can start operating at full capacity of 135,000 tonnes at the beginning of this year," it added. The smelter produces anodes, billets, wire, ingots, T-bars and slabs used in the metal, construction and car industries, which have been hard hit by the global financial crisis. The company had earlier said its annual production could reach 300,000 tonnes if plans to build a plant for aluminium waste recycling and electrolysis went ahead. "The crisis has slowed down the process, but we are now entering the final phase of the feasibility study for the waste recycling facility," said the management. The plans can proceed only after the company has been privatised and found a power supplier offering favourable electricity prices. The government of the Muslim-Croat federation, an autonomous region that makes up Bosnia along with the Serb Republic, extended until May a deadline for the sell-off of an 88 percent stake in Aluminij Mostar -- held half by the company and half by the government. The extension, the fourth since 2007, was made to give more time to resolve some 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 over high electricity prices and environmental and ownership issues. "We expect Glencore to clarify their stand about those issues in a timely fashion," said the management. (Editing by Rupert Winchester)