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Steelmin Ltd.

  • RRR 22% Stake
  • Initial FeSi Production in Q3 2018
  • Two Electric Arc Furnaces Onsite
  • Complex Capacity of 48,720t of FeSi and 9,700t of Microsillica
  • Projects €35m Rev and €7m EBITDA
  • Near-Term Production in Familiar Steel Feed Space

Steelmin Ltd. is a UK Company Restarting a Ferrosillicon and Silicon Metal Smelter Complex in Jajce, Bosnia


The Steelmin plant and facility is located in central Bosnia, 104 kilometres north west of Sarajevo. The complex, formerly part of Electrobosna, was originally built in the 1970s by Elkem, a major silicon and alloy producer based in Norway, and was one of the largest and best known producers of ferrosilicon and silicon metal in Europe. It was closed down in 1992 due to the Bosnian War, was then privatised and the six furnaces were sold off in two separate parts in 2000. The plant was brought back online until finally being shuttered again in 2004 due to increasing exports pressure from Chinese producers.

Anti-dumping regulations have since been implemented by the European Commission; which significantly reduced both Chinese and Russian exports into Europe, allowing prices to stabilize and rise over time. The second, smaller, facility split off from the original is now being operated by the Italian ferro-alloy producer Metalleghe, and has been successfully producing next to Steelmin’s plant for the past 12 years.


Steelmin controls furnaces IV and V from the original Electrobosna complex.  Furnace V has a 48MVA installed power Elkem furnace, and is connected to two chimneys on the roof of the production hall. Furnace IV, the smaller of the two, has a 30 MVA Tagliaferri furnace with three chimneys, preventing the emission of gases in ambient air to comply with EU regulatory requirements.  Given its larger total capacity Steelmin has decided to bring furnace V on initially and then move to recommission furnace IV later in 2018.


In addition to the two furnaces, the facility in Jajce houses a filtration plant, warehouse storage for raw materials, pouring and dispatch hall as well as a plant for process water re-circulation.

Steelmin currently has a team of 45 people on-site led by engineers who were involved with the original plant from commissioning. Steelmin stands to benefit from experienced local labour with 20+ years of experience, at a fraction of typical cost of these skills in Europe. With proximity and abundant access to raw materials including quartz deposits, Steelmin has secured contracts for most of the materials required for production, as well as letters of intent and statements of interest from some of the largest steel producers in Europe.

Refurbishment for the second furnace is expected to begin later in 2018. A multinational financial institution has expressed interest to partner with Steelmin once in production, through the provision of debt for the refurbishment of the second furnace.

Power remains the most significant input cost to ferrosilicon production and this is provided by abundant and economical hydro-power available across the region.  Furnace feedstock such as quartz is also sourced from the region. The filtration plant refurbishment has been completed and ensures that all outputs of gases will comply with EU regulations.

Products and Markets

Steelmin intends to produce ferrosilicon containing 75% silicon and 25% iron, a product primarily used as a deoxidising agent and to add electrical conductivity and corrosion resistance to steel.  A by-product of ferrosilicon production will be microsilica, which is a dust used in the manufacture of speciality concretes in the construction industry as well as in advanced refractories and ceramics.  Furnace V is expected to produce 29,000t of ferrosilicon per annum as well as 5,800t of microsilica.

Over time Steelmin is expected to produce both ferrosilicon as well as additional silicon alloys that offer higher margins and additional upside.  Currently ferrosilicon trades between €1350-1550 a ton and the estimated price of microsilica is €200 a ton.

European ferrosilicon production depends critically on access to cheap power (locally generated hydroelectric power in the case of Jajce) since this is up to half the cost of production. Prices are historically driven by steel production levels, the level of Chinese pricing and production allowed into Europe, as well as the associated export and anti-dumping tariffs.  Since late 2016 overall Chinese export prices have begun to rise, positively impacting European produce prices.  Key input costs such as metallurgical coal are also closely correlated to realized ferrosilicon prices.

EU supplies of ferrosilicon are generally heavily constrained, with 70% coming from Norway and Iceland and few if any new producers coming online.  Given Bosnia’s ideal location closer to key steel customers in Germany, Austria and Northern Italy, Steelmin is well poised to service these major markets.

Financial Projections

Steelmin currently projects operating revenues of €35m in its first full year of operations with gross margins expected to come in around 33%.  These figures assume production of 85 tonnes per day over 339 days a year and a Ferrosilicon selling price of €1,200/t.

More information available at

Investment Highlights

  • Brownfield Investment Funded Back to Back Through RRR
  • Experienced Local Management Team - Includes Original Engineers
  • Initial Production Run in Q3 2018
  • Plans to Recommence Production in Q1 2019
  • Bosnia
    • Steelmin Perfectly Located to Serve Key European Steel Clients - Italy and Germany
    • EU is Bosnia's Largest Trading Partner - Continues Yugoslav Industrial History
    • Highly Educated and Competent Workforce
    • Stable Currency Pegged to Euro
    • Regional Trade Agreements
    • Applying for EU Membership
  • Refinance Expected at First Production
    • Discussions Ongoing with EBRD and Others
    • Refurbishment of Second Furnace Planned From Debt
  • Ferrosilicon
    • Prices Driven By Steel Production Levels
    • Strong European Prices as of Q1 2018
  • Costs
    • Major Input - Power Provided by Hydro Plants
    • Others: Quartz, Wood, Lignite, Met Coal
    • Low Input Costs - Strong Margins
  • Upside
    • Complete Second Furnace
    • M&A Opportunities in the Region
    • Expand into Higher Margin Ferroalloys