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WIDE RANGE OF INVESTMENT OPPORTUNITIES IN DIFFERENT SECTORS
MILICA MARKOVIĆ
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In the article she wrote for InFocus Bosnia and Herzegovina, Milica Marković, the director of the Foreign Investment Promotion Agency of Bosnia and Herzegovina (FIPA), highlighted the most important activities of the agency, the potential of Bosnia and Herzegovina as an investment location, as well as most important economic sectors in the country. She also spoke about FIPA's readiness to help every investor
T
he Foreign Investment Promotion Agency of Bosnia and Herzegovina (FIPA) is the main address that foreign investors who want to invest in Bosnia and Herzegovina turn to. I would first like to highlight the Agency’s most important activities, which include: - Attracting and increasing the influx of foreign investments in Bosnia and Herzegovina and promoting existing investors in the country to make more investments and expand their business - Improving the cooperation between the private and public sector, proposing measures to improve the business environment, and thus facilitate economic development - Presenting Bosnia and Herzegovina as a country attractive to foreign investors.
Also, FIPA provides information, analyses and advice to potential investors on the business and investment environment, legislation relating to foreign direct investments, available investment projects, economic and business developments in the country, etc.
When promoting the opportunities and potential of Bosnia and Herzegovi-
na as an investment location, we first highlight its good geographical location, availability of natural resources and attractions, a long tradition of industrial production, a large number of available industrial zones, attractive locations and production facilities, favourable legislation for foreign investors, the currency tied to the euro, regional and bilateral trade agreements, and the prospect of joining the European Union.
Bosnia and Herzegovina offers a wide range of investment opportunities in various economic sectors. The country is quite a favourable destination for all export-oriented production companies, given its excellent geo-economic position, easy and fast access to large markets, and duty-free trade agreements or having preferential status with almost all major countries which allows duty-free export of
everything produced in Bosnia and Herzegovina to anywhere in the world. At the same time, we have a substantial offer of very affordable production and business spaces, adequate operating costs, availability of an affordable workforce, and existing incentives related to foreign investment and exports.
Bosnia and Herzegovina has great potential in the segment of energy production, both renewable (water, wind, solar, biomass) and thermal energy based on its coal reserves. The country could easily attract investments worth up to 10 billion euros in the coming period.
Bosnia and Herzegovina also has a long tradition and abundant experience in the automotive industry. For decades, the world's leading vehicle manufacturers have relied on skilled labour in Bosnia and Herzegovina in terms of assembling cars for Western markets.
Thanks to the existing process of assembly of vehicles and production of auto parts, a strong, diverse supply chain of auto parts and supporting infrastructure has been established, which also includes an accompanying training system, development and research institutions, as well as specialized and skilled workforce with experience in the metal processing industry, and electrical and automotive engineering.
In the last ten years, this industry has experienced dynamic development and has become very export-oriented, exporting an average of 90% of the total products to 30 countries around the world.
Today, automotive companies from Bosnia and Herzegovina produce a wide range of parts and components, such as engines, gears and their parts, metal precision parts, drive axles, braking systems, couplings, control systems, pumps, filters, electric auto parts, textile and leather products, aluminium rims, batteries and various small parts such as springs, screws, pipes and components made of metal, rubber or plastic.
Domestic companies produce for brands such as MERCEDES, AUDI, BMW, VOLKSWAGEN, TOYOTA, MAZDA, OPEL, FORD and FERRARI. ing branches of Bosnia and Herzegovina's overall tourism.
I would also like to single out the metal processing sector in Bosnia and Herzegovina as a sector appealing to foreign investors, due to its long tradition, great potential, having a natural competitive advantage mainly due to the existing resources of raw materials, labour, and the like.
I also have to mention the wood processing sector. Wood is a natural resource that Bosnia and Herzegovina is famous for. 53% of the land is covered with forest which is used for wood processing and furniture production.
Bosnia and Herzegovina's agricultural sector provides great opportunities for potential investors, including a lot of uncultivated land, a good climate conducive to the cultivation of various crops - from fruits and vegetables to cereals, medicinal and aromatic plants, as well as livestock, meat and meat products, milk and dairy products.
In terms of growing berries, our country is becoming renowned with international raspberry producers. According to the USDA's National Agricultural Statistics Service Report, Bosnia and Herzegovina ranks 10th in the world in terms of raspberry production and export and 16th in the world in plum production.
The great natural potential and attractions in our country are untapped, so the tourism segment is still developing. Winter and mountain tourism, eco-tourism, spa tourism, cultural and religious tourism and partly coastal tourism are the most promis-
The information technology (IT) sector has grown in the past few years. Given that the IT sector is one of the most attractive and profitable branches globally, hence, it has huge potential and good prospects for stronger development in Bosnia and Herzegovina. This economic branch has been growing daily and has all the prerequisites to become a driving force behind economic development, as well as to contribute to the development of Bosnia and Herzegovina's economy and reduction of currently the biggest weakness of our economy, which is youth unemployment.
For all those who are interested in investing in Bosnia and Herzegovina, FIPA will help find a suitable investment project in our country and implement it as soon as possible.
Our services are free!
6, Dubrovačka Street, 71000 Sarajevo, tel: +387 33 278 080, fax: +387 33 278 081, website www.fipa.gov.ba
THE MOST TECHNOLOGICALLY ADVANCED MINING FACILITY
ADNAN TELETOVIĆ
General Manager, Eastern Mining d.o.o.
Eastern Mining holds exploration and exploitation concessions in Bosnia and Herzegovina. We talked with the company’s General Manager,
Adnan Teletović, about the mining sector of Bosnia and Herzegovina, as well as about a very important Vares project.
You have abundant experience in managing large capital projects in the Australian mining industry. If we were to compare today’s B&H, what would be the similarities and differences in terms of mining?
— Although we are talking about two totally different countries, I think that economic viability, sustainability and environmental and work safety are the common denominators here. B&H has a long history of mining, including the Vares area, and I am glad that we can witness and be part of the tradition that is continuing. As for the differences, the Australian mining industry is, quite understandably, more technology savvy, applying modern production and safety techniques, economic and social principles and
standards. We, in Adriatic Metals - Eastern Mining, intend to do the same with our Vares Project, i.e. to make it the most technologically advanced mining facility not only in B&H but in the region too, with the highest standards of environmental protection and work safety in place. We consider those to be paramount in order
HIRING
to have our vision of the Vares Project fulfilled: a fully operational mine, applying the highest standards of operations, with firm roots in the community, respecting the biodiversity and other environmental factors.
How would you rate the current situation in Bosnia and Herzegovina’s mining sector concerning the region and Europe, and where do you see the development opportunities?
— Well, to start with, for obvious reasons there was a lack of serious exploration throughout this region, which prevented many serious efforts and investments in this area. When we started our exploration, we did so with the archived Yugoslavian state documents. As for the already existing mining industry here, we can see that, unfortunately, things are not as they should be and, more importantly, as the miners deserve. Despite all the technological advancements, this is still one of the most hazardous professions in the world. As B&H was a part of ExYugoslavia, it has good infrastructure, with road networks and railway which leads to the harbour Ploce in Croatia and European rail network; it has highvoltage power grid and main water supply systems.
I must emphasize, this is only the second exploitation permit for metals issued by the B&H authorities in the last 30 years. So, not only is this important
for us but also B&H. The permit will enable Adriatic Metals – Eastern Mining to perform detailed engineering works for the Rupice underground mine, processing and tailings management plant, and construction should begin in the third quarter of 2021.
In five years, our ambition is for Adriatic Metals plc. to be a mining company with more world-class mining operations throughout the Balkan region. Achieving this vision requires finding and developing mineral resources that have positive economic potential, in multiple locations. We recognized this potential in the Raska project (Serbia), which is why we reached an agreement in May last year on the acquisition of a Canadian company Tethyan Resource Corp.
What are the most significant Adriatic Metals - Eastern Mining’s projects?
— Veovaca and Rupice are early polymetallic deposits that form part of the Vares Project, which the company took over in 2017. Just recently, we have obtained Rupice Exploitation Permit, which is the final permitting requirement for construction of the Vares Project. The Vares Project has gone from discovery to fully permitted for exploitation in just over 4 years. I have to say that so many important milestones to be accomplished in such a relatively short period is amazing, and we, at Adriatic Metals - Eastern Mining, could not have done it without the strong community and government support at every step of the permitting process.
How far have you come with the research and feasibility study and to which locations will you expand?
— We have just published our Definitive Feasibility Study that outlines the more technical detail of the project and the development of the next phase. This study, written following the highest global standards, establishes the economic viability and long-term sustainability of the Vares Project, taking into account the interest and benefits for the Vares area.
ACTIVITIES
Work will commence on the construction on the mine in Q4 2021, taking about a year and a half to fully construct the mine and processing plant, and additionally a few more months for the plant to start operating, beginning production in early 2023. This is a very aggressive timeline, but we have the people and the necessary skills to do it.
Adriatic Metals - Eastern Mining is committed to investing and supporting the local community in the areas in which you do business. Which assistance projects would you like to single out?
— Over the past four years, we have been constantly present through sponsorships and donations, such as the sponsorship of Football Club Vares and Zenica Rugby Club, where we have enabled 150 children to play rugby in a country that is not exactly known for this game.
We are very proud of our community presence either by sponsoring young people to attend sporting events across Europe, by sponsoring the art festivals in our village of Borovica, or simply helping a local school or hospital with the circumstances the covid 19 pandemic brought to our local community.
We have also established The Adriatic Foundation, which aims to support and promote local sustainable socioeconomic development, with a particular focus on the communities associated with Adriatic’s operations.
How much will you contribute to the development of Vares in terms of higher employment, infrastructure development, etc?
— I have to say that we aim to have all employees from the area surrounding the project, and we will be hiring approximately 350 people at the peak (during construction) which will have a further indirect, yet positive, impact on the local, regional and national economy. But the employment rate will not be higher solely in mining, since our activities and work here affect the area, attracting maybe new investments, and there is a whole network of local businesses that will benefit.
As for the infrastructure development, we have already started reconstruction of local roads in Vares Municipality and are working with the Federation Railway Company on the regeneration of railway that goes to Ploce harbour. All of our activities are planned according to not only our needs but to those of our community, and together I am sure we will find the best and optimal solutions for everyone.
