POLISH COAL MARKET MIDWEEK SUMMARY 42/2015

LW Bogdanka announced that in Q3 of 2015 the company managed to increase both production and sales, comparing to Q1 and Q2. Still, the results are bit worst than the ones from previous year (2.04 million tons of coal produced and 2.19 million tons of coal sold in Q3 2015 against 2.38 / 2.5 million tons in Q3 2014). In whole 2015 LWB already sold 6.01 million tons and the company is still convinced that it will manage to sell 8.5 million tons until the end of the year, as it was announced in January.

Part 2 of miners discontent – this time in Pokój mine in Ruda Śląska. On Tuesday leaders of labor unions repeated their objections against PO-PSL government. The grand finale of series of protests is scheduled for 22nd October in Warsaw.

Andrzej Duda signed the Anti-smog Act (which allows every single city in Poland to introduce a certain laws against coal-fired heating in households), which has quickly raised discussion over President’s previous declarations of supporting Polish coal. Labor union ZZGwP wrote a letter to Duda complaining on the subject and pointing out that his decision will harm Polish coal producers. Gentlemen from ZZGwP forgot only, that great share of 11 million tons of coal directed each year to retail customers comes from import (mainly from Russia) against which they are fighting for so long now. Also, as the CEO of Fortum Mikael Lemstrom reminded, in the long term scope ban on coal-fired household furnaces will lead to development of district heating (which in Poland is powered mainly by coal).

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