The government of Bosnia's Bosniak-Croat shared Federation (FBiH) entity on Monday approved a business cooperation agreement with an Israeli-Chinese consortium to lease the Mostar-based aluminium smelter Aluminij.

The information was confirmed by the chairman of the upper house of the state parliament, Dragan Covic, and the Federation's finance minister, Jelka Milicevic.

“Aluminij has been given a new chance today by the Federation government, which accepted the offer from the strategic partner,” Covic said in a Twitter post, while Milicevic told Hina that the partners had complied with all the objections and recommendations from the government.

The consortium, led by the Israeli MT Abraham Group, submitted a modified business cooperation agreement a few days ago, providing guarantees for the resumption of operation and regular payment of wages, the finance minister said.

“The government supports every job, especially because the agreement guarantees work for 200 new workers who are now Alumij's surplus labour,” Milicevic said, adding that a general shareholders’ meeting would be held in two weeks’ time.

The Federation government and workers each hold 44% of shares in the company, while the remaining 12% is held by Croatia's government.

After suffering extensive property destruction during the war in the early 1990s, Aluminij resumed operation in 1997 with the support of the Croatian government. After its collapse, 900 people were left without work. Aluminij's debts surpass €220 million.