POLISH COAL MARKET MIDWEEK SUMMARY 52/2015

Slowly leaving Polish steam coal-based energy and heating market, third largest power producer in Poland EDF decided to terminate the contract for coal deliveries with LW Bogdanka. LWB’s CEO Zbigniew Stopa is not worried though, saying that the company still has some time to find new buyers if French company would get back to the table (one year notice period in the agreement). Stopa also added, that contract with EDF never had strategic significance, accounting only for 4% of total Bogdanka’s sales.

New CEO of Tauron, Remigiusz Nowakowski hopes that now when his company got mining concession for Brzeszcze they will be able to increase production to 1.8m Mt per year and therefore cover 50-60% of all Tauron’s coal consumption. The main issues that he has to face following that plan, will be restructure of the facility and poor quality of Brzeszcze’s coal (high sulphur content).

Day after we wrote about the number of candidates for the job of new CEO of Jastrzębska Spółka Węglowa, Supervisory Board appointed for that position Tomasz Gawlik, working in JSW since 1989. Recently, Gawlik was working as a VP of Strategy.

Still on the subject of executives rollercoaster: there will be no changes on the KW’s throne, at least not until ME will finally establish NKW, which is scheduled for the beginning of H2 2016.

Staying on the job, Krzysztof Sędzikowski will surely need some good PR, and so KW started to brag about their best mines: Marcel and Bolesław Śmiały. The first one employs less than 3,000 people and its production to worker ratio is almost as good as in private PG Silesia. The second mine had 25m PLN of profit after 11 months of 2015. Timidly Kompania Węglowa is also indicating at the 6 working days in Rydułtowy-Anna mine, on a contrary to usual 5 days in all State-owned facilities. Revolution? Nah, it resembles more an employee pretending to work hard when the boss is watching (Rydułtowy-Anna is in top three on the list of mines soon to be shut down in Poland).

Kangaroos with pickaxes from Balamara reminded the public of their plans to establish coking coal mine in Nowa Ruda. Company wants to receive the mining concession by 2016 and build a facility which will produce 2.5m Mt each year. To do so, Balamara plans to invest 300-500m PLN (so far Australian producer spent only 10m).

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