In the 19th century Ljubija developed into one of the most important
locations for the country's economy due to its iron ore deposits. After
World War II Ljubija became one of the largest iron mines in the world
which employed more than 5,000 people at any one time. Until 1965 it was
governed as a separate municipality, before it was merged with
Prijedorby the Yugoslav authorities.
In May 1992, during the Bosnian
War, Bosnian Serb leader Radovan Karadžić ordered the Army of Republika
Srpska to cleanse Ljubija of its male population, most of which were
transferred to Keraterm, Trnopolje or Omarska concentration camps. The
remaining population was harassed and had their houses searched and
ransacked. Most inhabitants were forced out of their homes in following
months, after being asked to sign documents stating that they agreed to
voluntarily give all their possessions to Republika Srpska. After the
Dayton Agreement was signed in 1995 Ljubija remained in the Republika
Srpska