COAL PRODUCERS – CURRENT STRUCTURE

In 2014 hard coal production accounted for 72.5 million tonnes with 83% was steam coal, and although it was 5.2% lower than year before, total overproduction for 2014 accounted for 8.2 million tonnes and was 23.4% higher than in 2013. This situation is going on in three state-owned coal mining companies: Kompania Węglowa, Katowicki Holding Węglowy and Jastrzębska Spółka Węglowa. Meanwhile, private owned companies like Lubelski Węgiel Bogdanka (LWB) or Przedsiębiorstwo Górnicze Silesia managed to balance their production to sales ratio.

Kompania Węglowa is the largest coal producer in Poland and indeed in the whole European Union, having 25 licenses for coal exploration, running its operations in 11 mines in GZW. In 2014 KW produced 36 million tonnes of coal, which gives it total share in Polish production market at 46%. KW has also 55% share in total coal sale. All KW mines produce steam coal, and four of them additionally produce coking coal. Company is in poor financial condition, caused by high cost of production, low work efficiency and unreasonable overproduction. Also, coal produced in KW mines is of quality not suitable for some industrial consumers. As a result, only three mines are profitable. Company had plans to set up new operations in LZW, but deteriorating situation led to suspension of all these plans. Today, Kompania Węglowa is under deep restructuring, which most probably will end with its liquidation, previously moving the profitable mines to a new company called Nowa Kompania Węglowa (established by Węglokoks).

Coal production in Katowicka Grupa Kapitałowa (owner of Katowicki Holding Węglowy) was accounted for 12 million tonnes in 2013 (18% of total Polish coal production). Today, company owns 4 mines: KWK Murcki-Staszic, KWK Mysłowice-Wesoła, KWK Wieczorek and KWK Wujek. In 2013 company introduced a new plan for improving internal situation, which assumed i.a. centralizing all mining-service companies. KGK was also planning to build its own power plant fired with low quality coal (company already owns heat&power plant ZEC Katowice).

Lubelski Węgiel Bogdanka is third largest steam coal producer in Poland, with 13% share in steam coal mining (10% when considered all hard coal). In 2013 company produced 8.3 million tonnes of coal. Due to advanced investments, in 2018 company would be able to produce annually around 12 million tonnes. Like KGK, LWB is planning to build its own power plant.

Tauron Wydobycie (formerly Południowy Koncern Węglowy) is a company running two mines, ZG Janina and ZG Sobieski, producing steam coal mainly for companies owned by Tauron Polska Energia Group: Tauron Wytwarzanie (energy producer) and Tauron Ciepło (heat&power). Annually production accounts for approximately 5 million tonnes of coal, but Tauron PE is planning to invest in the mines to increase Group’s internal coal supplies.

Second largest Polish hard coal producer, Jastrzębska Spółka Węglowa is producing mainly coking coal (74% of own production). In 2013 JSW produced 3.6 million tonnes of steam coal (giving them 5.6% share on the Polish market) and 10 million of coking coal. Company had plans to increase production of both steam and coking coal in following years (i.a. by buying KWK Knurów-Szczygłowice form Kompania Węglowa), but had to postpone them due to internal turmoils in the beginning of 2015 (miners strike, which generated 459 million PLN loss).

The last three coal producers are private-owned mines with total coal production accounting for approximately 3% of total Polish coal production. PG Silesia, subsidiary of Czech EPH Group, runs its operations since 2012, with annual production of 2 million tonnes and plans of increasing production to 3 million tonnes per year. ZG Siltech and EKO-PLUS are producing coal mainly to fulfill demand from small local consumers. Companies produce respectively 200,000 and 130,000 tonnes of coal per year.

As for the June 2015, total employment in Polish mining sector accounted for approximately 98,000 workers, with overproduction of 6.4 million tonnes of coal stocked on the piles.

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