One of the largest planned industrial projects in Bosnia and Herzegovina will not be realized at the Osmanlije site near Kupres, after the investor, BH Magnezij & Minerali, withdrew its request for approval of the Environmental Impact Assessment and decided to abandon construction of the plant there.
This project was expected to create as many as 600 new jobs and was recognized at the European level for its significance.
The company said that this decision did not mean abandoning the investment, but that it would try to implement magnesium production at a different location that meets all spatial, environmental, and institutional conditions.
What Was Supposed To Be Built?
As BiznisInfo.ba previously wrote, the investor planned to construct a large industrial complex which would contain 14 facilities, mostly production plants, as well as administrative buildings, laboratories, changing rooms, and supporting facilities.
The total floor area of the facilities was planned to be 20,432 square meters, and the plants were supposed to employ around 600 workers, which would classify this investment among the largest industrial projects in the last couple of years in Bosnia and Herzegovina.
The project was especially significant because magnesium is one of the EU’s critical raw materials, while the project in Kupres was identified as strategic within the European Raw Materials Alliance (ERMA). Considering that magnesium production in Europe is largely limited, it was expected that this investment would be significant not only for Bosnia and Herzegovina, but also for European industry.
Why Did the Project Stop?
The company said that circumstances changed after the Kupres Municipal Council adopted decisions on the protection of water sources and new sanitary protection zones in March 2026.
According to data available to the investor, the planned Osmanlije location, namely Banov Majdan, falls at least partially within the second sanitary protection zone of the Bašinac water source. Construction of an industrial plant like the one planned is not allowed in this zone, which is why the documentation prepared for this location could no longer serve as a basis for continuing the procedure.
From the start, the company emphasized that it wants to develop the project solely in line with the law and environmental standards, and that it decided to withdraw its Environmental Impact Study for this very reason.
Project Moving to a New Location
BH Magnezij & Minerali emphasized that they did not give up on magnesium production. They state they are already in talks about a new location that meets all necessary conditions for such a strategic project, and that project development will continue responsibly and transparently, Biznis Info writes.
