Iron ore producer Nova Ljubija in Bosnia and Herzegovina is preparing to initiate bankruptcy proceedings after its owners determined that continuing operations is no longer financially viable.
According to local media reports, the company is currently finalising documentation and is expected to file for bankruptcy in the coming days. Suzana Gasic, deputy director of Nova Ljubija, confirmed the move, noting that prolonged financial difficulties faced by its sole customer, steel producer Nova Zeljezara Zenica, have significantly impacted the mine’s operations.
Nova Zeljezara Zenica has reportedly been unable to settle outstanding obligations to the mining company, creating a sustained liquidity strain that contributed to the decision to seek bankruptcy protection.
The Nova Ljubija mine employs around 600 workers and has been a key iron ore supplier to Bosnia’s steel industry. The company is jointly owned by local diversified group Pavgord and mining operator Rudnici Zeljezne Rude Ljubija.
The situation follows a broader restructuring of steel assets in the country. In June 2025, Luxembourg-based steel giant ArcelorMittal agreed to sell its shares in steel plant operator ArcelorMittal Zenica and iron ore producer ArcelorMittal Prijedor to Pavgord.
Industry observers note that the difficulties faced by Nova Ljubija reflect broader pressures within the regional steel sector, including financial instability among downstream producers and shifting market conditions.
