Mostar’s aluminum smelter Aluminij said it has proposed to the state-level government to abolish the import tax on unalloyed aluminum to save production costs and boost output, reports SeeNews. Aluminij could melt 25,000 tons of unalloyed aluminum annually by using fuel gas instead of expensive electricity, the company said in a statement.
This would boost the company’s output by 30% and secure the state an additional 46.9 million euro in exports, Aluminij noted.
“Currently, no one is importing unalloyed aluminum so funds are not being raised. If the state were to abolish its customs duty on this material, Aluminij could be the engine of economic development in Bosnia,” the company said.
The smelter recently signed an electricity supply deal with state-controlled power utility Elektroprivreda BiH for 2017. Aluminij was previously supplied by another power utility, Elektroprivreda HZHB, towards which it had piled up huge debts.