POLISH COAL MARKET MIDWEEK SUMMARY 40/2015

Stephan Kohler, CEO of German Energy Agency (DENA) admitted that after many years of governmental subsidies, renewables should finally start to compete with the fossils on the market rules. Kohler said also that he believes the Germany must use more of its own natural resources (coal). He gave also some hints in which direction should head Polish energy production; one of them was renouncement of legal obligation to receive energy produced from renewables in power plants (Kohler suggested, that wind and solar farms operators should sell their energy in the market conditions). Could this statement be a presage of a new twist in European attitude towards energy production from coal?

Last week we informed about an additional member of KHW’s Management Board, who will represent the Ministry of Treasury in the company (or: will be a parachutist from Platforma Obywatelska). Labor unions are furious, when while cutting wages and part of the crew being fired, Supervisory Board is forced by the MoT to enlarge the MB by another chairman. Unions pointed out, that Management Board in Katowicki Holding Węglowy always consisted of 5 members, and if that number was considered enough when the company had 11 mines, it definitely should be enough today, when it has only four.

Since EU Commission demands involvement of a private entity in NKW project, MoT announced that it will try to convince the banks to invest in restructuring Kompania Węglowa. Meanwhile, some commentators made a few calculations and to their surprise foretold 2.2 billion of NKW’s profits in 2017 turned into 4 billion of loss.

Speaking of banks: JSW reached consensus with its bondholders. New agreement postpones the JSW’s obligations towards ING and other banks, but one of its points compels the coking coal producer to introduce a new plan for restructure. Wojciech Kowalczyk, vice-minister responsible for coal industry in Poland announced that creating the new strategy for Jastrzębska Spóka Węglowa is in progress, and that it will cover the next 3-6 years. With dynamically changing situation on the international coking coal markets  forecasting JSW’s future in the scope of 6 years seems like a crystal-ball gazing.

Węglokoks decided to withdraw its offer for Brzeszcze mine, but the two other tenderers decided to join forces: FTF Columbus will enter to RSG (SPV established by Tauron). Meanwhile, the labor unions are trying to hinder this coalition, demanding from MoT immediate cancelling the negotiations with RSG and moving the mine directly to Tauron Wydobycie.

Advertisements