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3.2.3 Industry
Bosnia's economy relies heavily on electricity generation, mining and
the processing sector.
The processing industry mainly depends on exports, so the projections
for this branch of industry are mainly reduced to estimates of purchases
from abroad.
This is particularly true for the manufacturing sector, whose
performance depends heavily on orders from abroad, mostly from
Germany, mainly for production of simpler parts for the auto industry.
Before the war, Bosnia had a developed car industry, near Sarajevo in
the town of Vogosca was the production plant of the German
Volkswagen. Today, Bosnian industry mainly makes, for example, car
seat covers, leather covers for car gearboxes and so on.
Among the recent investments in this sector are German Ringspann’s
new plant to produce drive components and parts for motors and
electric bicycles in Bosanska Krupa, and Slovenian Iskra mehanizmi’s
Mehanizmi B plant in Catrnja.
Bosnia’s coal mining sector was in crisis in late 2021, when miners from
seven mines in the Bosnian Federation went on strike and held mass
protests in Sarajevo, gaining widespread support from local residents.
Miners demanded a minimum wage in the sector of BAM1,000
(€511.29), the the dismissal of the general director of Elekroprivreda
BiH Sarajevo, the abolition of the Decision on the Rulebook on reducing
their salary from BAM850 to BAM570, as well as dismissal of coal
directors who started applying the regulation.
Elektroprivreda BiH Sarajevo, the main company of the concern
Elektroprivreda BiH, operates the seven mines providing coal to the
entity’s coal power plants. In Republika Srpska, each thermal power
plant has its own mine.
In the metals mining segment, Adriatic Metals has started construction
of its flagship high-grade Vares Silver Project in Bosnia. The project is
one of the highest grade undeveloped polymetallic mining projects in
the world, with an ore reserve of 7.3Mt at 485g/t silver equivalent.
Adriatic’s main priority for 2022 is to build the Vares Silver Project, with
a view to starting production in the second quarter of 2023.
3.2.4 Energy & power
More than two-thirds of Bosnia’s electricity comes from thermal power
plants. However, due to the age of the plants, thermal power plants in
Bosnia are among the biggest air polluters in Europe. The rest of the
electricity was obtained from hydropower plants, and very little from
alternative energy sources.
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