POLISH COAL MARKET MIDWEEK SUMMARY 50/2015

PGE received 500m PLN credit from The State Development Bank of Poland for further investments (mainly the two energy blocks in Opole). In total, only in 2015 the company received 5bn PLN of funding for its development projects. At the same time, Magdalena Bartoś, PGE’s CFO admitted that private banks and other financial institutions are more and more reluctant to support investments in coal-fired power production facilities.

New Minister of Energy will not be responsible for the energy sector. Sounds like a joke, but so far Krzysztof Tchórzewski will be taking care of the coal mining companies and their troubles only. At first we thought that there is a mastermind strategy behind this decision (the intention of creating ME was to gather the coal producers and consumers under one decision-making entity), but Tchórzewski confessed with a disarming sincerity: “if MSP wants to do the managerial stuff on them [power producers] – I’m fine with that”.

The same Minister announced that the mining sector’s debt accounts for 15bn PLN (31st Oct). Half of that belongs to JSW, with Kompania Węglowa taking second place (4bn PLN).

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