Mining and Metal Processing

Metal

The metal sector in Bosnia and Herzegovina has a long history, great potentials and it has a natural competitive advantage mainly due to existing raw material resources, low wages and a heritage of the past. B&H metal processing offers strong human and resources base as well as long tradition enabling sustainable development of various value-added businesses.

The beginnings of the metal work in Bosnia and Herzegovina reach back into history, especially through the handicraft production and manufacture. It is reach in mineral resources (particularly iron ore, bauxite, lead, zinc and copper).The metal processing industry in B&H is quite large, covering the manufacture of basic metals: basic iron, steel and alloys and manufacture of fabricated metal products, such as forging, pressing, pressing and rolling of metals, powder metallurgy, treatment and coating of metals, general engineering. Metalworking sector it is highly concentrated in two large companies Mitall Steel Zenica and Aluminium Mostar.

Mining sector offers - both to serve local processing industries, electricity generation and for the export. This segment of the industry is in the process of revitalization and re-engineering. The oldest mining areas are in central Bosnia (Mount Vranica) and eastern Bosnia. The most famous mines in Bosnia and Herzegovina are located in central Bosnia (Kamenica, Olovo, Dusina, Dezevice) and eastern Bosnia (Srebrenica and its surroundings).

Investments in the Raw Materials Sector
Testimonials & Success Stories
 

Global Investment Promotion Best Practices 2012 of the World Bank has cited one example of support that FIPA provides to foreign investors who are running business in Bosnia and Herzegovina in order to contribute to increase the flow of foreign capital in the country.

The article said:  

„The Foreign Investment Promotion Agency (FIPA) of Bosnia and Herzegovina was an early convert to the idea of providing facilitation services to agribusiness investors as a way to maximize the positive impact of agriculture on the economy.

In 2007, for example, FIPA assisted a Dutch food processing company establish a US$1.6 million production facility to process unused milk ingredients into value-added products in Sarajevo to sell to markets in Eastern Europe and the Middle East.

As part of its aftercare program, FIPA assisted the company with its expansion plans. Among other things, the agency helped facilitate veterinary permissions, navigate various bureaucratic hurdles and played an important role in securing funding for the company’s expansion. It also helped develop a network of local suppliers and customers. As a result of these efforts, the Dutch investor developed stronger links with the Bosnian economy, thus increasing the positive spillover effects on the local economy.

Currently a new investment to establish a drying facility for milk powder is under way. This will further expand the processing facilities of unused milk ingredients. This additional planned investment is worth approximately US$2.8 million, thus nearly trebling the company’s original investment in the country“.

 

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