Bosnia and Herzegovina: EP HZHB and debt of now closed Aluminij Mostar

, SEE Energy News

FBiH Government is the largest single shareholder with 44 % stake in Aluminij, while small shareholders hold the same amount od shares. The remaining 12 % stake is owned by the Croatian Government.

Bosnian power utility EP HZHB seeks a total of 150 million euros from, now closed, aluminium producer Aluminij Mostar, as of 31 December 2019. Most of this amount represents unpaid bills for supplied electricity.

The debt for electricity was the biggest reason for shutting down Aluminij, and it is under question how it will be resolved. Despite that, the Israeli-Chinese Abraham Group, which leased Aluminij’s plants in April this year, is announcing that the former industrial giant could restart production through the newly established company Aluminij Industries in August this year.

Aluminij Mostar has been disconnected from the electricity network in July 2019. Therefore, the largest electricity consumer in Bosnia and Herzegovina (BiH) has stopped production, probably permanently, because due to the production process, equipment gets damaged when the production is halted. Aluminij was one of the largest electricity consumers, when it worked at full capacity, it was accounted for a quarter of total consumption in BiH.

In mid-June 2019, power utility EP HZHB announced that it will stop supplying electricity to the plant on 16 June and that Aluminij should find a new supplier.