As announced during the last week's visit to Aluminij by FB&H Prime Minister Fadil Novalić, Deputy Prime Minister and Minister of Finance FB&H Jelka Milićević and Minister of Energy, Mining and Industry in the Government of FB&H Nermin Džindić, the Government of the Federation of B&H yesterday officially supported the Aluminij's initiative to abolish customs rates on non-alloyed aluminium.
State Ministers, Vjekoslav Bevanda and Mirko Šarović clearly supported this same initiative at the Round Table, held at the end of last month in the organization of the Foreign Trade Chamber of B&H in Sarajevo, saying that the FB&H Government, as the largest individual co-owner of Aluminij, must officially support that initiative before it comes to the Council of Ministers of B&H. Following this, yesterday's joint conclusion of Entity Ministers will be submitted to the Council of Ministers, meeting all the preconditions for urgent adoption of a provisional measure to abolish the existing customs rate for the period up to the end of the current year, as well as the Decision on its abolition for the entire 2018 period.
As a reminder, by importing approx. 25,000 tons of this non-alloy metal from the Russian market on an annual basis, Aluminij d.d. Mostar will easily and cheaply (using gas in the furnace conversion process) increase its production capacity by almost 40 percent, increase state export by around US $ 55 million, double the existing foreign trade of B&H with Russia and achieve a direct positive impact on the balance of B&H, to the state tax and pension system, and to employment growth and public spending. The abolition of this inactive custom rate of 4.5 percent, which makes the whole project uncompetitive or impractical, is the most powerful leverage for a strong acceleration of the Aluminij restructuring, but also for the launch of the state economy and for strengthening the inflow of funds into the state treasury.
More on the Aluminij Initiative on unalloyed aluminium is available at the following links: