June 17 (SeeNews) - British-Swiss firm Glencore is reportedly interested in acquiring Bosnia's troubled aluminium smelter Aluminij, which is on the brink of collapse due to mounting debts, local media reported.
Privatisation is seen as the only way out for Aluminij, with Glencore considered a possible buyer, news daily Dnevni Avaz reported on Sunday, quoting unnamed sources from the Federation government.
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According to the report, a potential deal will be on the agenda of talks between Aluminij representatives and officials of the Federation's government on Monday.
Glencore has been cooperating with Aluminij for more than 20 years.
The situation in Aluminij escalated last week after Bosnian power utility Elektroprivreda HZHB prepared to cut electricity supplies to the smelter on June 16 due to unpaid debts.
However, news wire Klix.ba reported on Sunday that Aluminij managed to agree another two weeks of power supplies from an alternative company.
Aluminij's overall unpaid liabilities to Elektroprivreda HZHB amount to 280 million marka ($161 million/143 million euro), Dnevni Avaz reports.
The Federation, where Aluminj is based, is one of Bosnia's two entities along with the Serb Republic. The Federation government controls 44% of Aluminij and does not have decision-making rights in the company.
Dnevni Avaz claims that Glencore also wants to hold talks with the government of neighbouring Croatia and with Aluminij's minority owners who jointly have a controlling stake in the company.
Aluminij has been in financial troubles over the past ten years. In October, power transmission system operator NOS cut Aluminij off the grid due to unpaid debts.
The problem was temporarily resolved in December when Elektroprivreda HZHB decided to resume power supplies to Aluminij, agreeing to postpone the collection of its debt.
(1 euro=1.95583 marka)