ArcelorMittal, the world’s second-largest steelmaker, is in talks over the possible sale of its steel mill and iron ore mine in Bosnia and Herzegovina to a Bosnian company, local media reported on Thursday.
The Luxembourg-based company owns the steel mill in the central town of Zenica and the iron ore mine in the northwestern town of Prijedor, which together employ about 2,700 people.
Business portal Capital reported that ArcelorMittal has been conducting negotiations on the sale with the Pavgord real estate company, based in the eastern town of Foca, which would take over all debts of the two companies.
ArcelorMittal declined to comment on the report.
The Zenica steel mill reported losses of 276.3 million Bosnian marka ($162.6 million) in 2023 and 2024 due to a drop in steel demand in Europe.
In Bosnia, Pavgord also owns local aluminum producer Alumina, Bosnia’s largest exporter last year, and a majority stake in the Bosnian bauxite mining company Boksit.
(By Daria Sito-Sucic; Editing by David Evans)
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