If the new, revised Environmental Impact Study receives a passing evaluation, the company BH Magnezij & Minerali, owned by the German company Magnesium for Europe (MFE) GmbH, could begin construction of the long-announced large industrial complex for magnesium production in the settlement of Osmanlije near Kupres. Previously, the Federal Ministry of Environment and Tourism of Bosnia and Herzegovina (BiH) refused to issue approval for the Environmental Impact Study for the mining project because it was not included in the Spatial Plan of Canton 10 for the next 20 years, meaning it is not in line with the planned development of the area. During the decision-making process, citizens and associations played a significant role, pointing out numerous shortcomings and what they described as the superficial preparation of the investor’s representatives for the public hearing.
The company BH Magnezij & Minerali d.o.o. subsequently submitted a request to withdraw the Environmental Impact Study for supplementation, and the project continues. As they stated at the time, the Study was being withdrawn for procedural reasons to be technically supplemented further and aligned with the requirements of institutions and the community.
Earlier, they announced that this would be one of the “greenest” magnesium factories in the world, producing high-quality magnesium without the use of chemicals and without harmful impacts on the natural beauty of the Kupres region or the health of the local population.
Production of 15.000 tons annually
According to initial plans, if this industrial complex is built, it should have a production capacity of about 15.000 tons of magnesium per year. Since the raw material would be extracted from the nearby Grguljaca quarry, owned by BH Magnezij & Minerali, the German company would manage the entire process – from ore extraction to the final production of magnesium.
Magnesium has a wide range of applications in industry, from alloy production to the automotive industry, electronics, and medicine. Europe has certain reserves of magnesium, mainly in the form of magnesite and dolomite, but imports from China remain dominant. Currently, more than 90 percent of magnesium comes from China, creating dependency and economic risks.
Because of this, the European Commission has included magnesium on its list of critical raw materials, with the goal of increasing domestic production and recycling. Key European deposits are in Spain (dolomite ores used for magnesium production), Greece (known for large reserves of magnesite, which is processed into magnesium oxide), Austria (magnesite mines, particularly in the Styria region), and Turkey, which has significant reserves of magnesite and magnesite ore.
Magnesium production for the next 75 years
In BiH, magnesium deposits are linked to dolomite rocks, with one of the most significant deposits located in the municipality of Kupres.
The investment by the German company is considered one of the largest in BiH and includes the construction of 14 buildings on an area of 7.3 hectares, with an additional 47.5 hectares designated for exploration. The by-products of this industrial complex are expected to include spinel, dry ice, and an aluminum-magnesium alloy. The complex is expected to produce magnesium for the next 75 years. The company has already invested around 10 million BAM in its activities in BiH since 2019.
The German company entered the BiH market through its subsidiary BH Magnezij & Minerali d.o.o. and, via its firm Dolomit d.o.o., which holds the concession for dolomite deposits, has secured the raw material for future magnesium production in the municipality of Kupres, Forbes writes.
