POLISH COAL MARKET MIDWEEK SUMMARY 01/2016

Węglokoks Kraj, the branch of Węglokoks Group responsible for activities on domestic market predicts to close 2015 on green. Despite the fact, that company took over some poor-perspective mines (KWK Bobrek-Piekary will require 300m PLN investments in next three years), it is still doing quite good. The largest revenues are generated from the mid and large size coal.

The concept of Material Reserves Agency (ARM) buying out stock-piled coal to help troubled mines will probably be attained in following weeks. Last Wednesday officials from KW, JSW and KHW met with ARM to discuss the possibility of selling their commodity to the SPA under the cover of gathering and maintaining reserves crucial for the State.

We’ve mentioned it briefly yesterday – Tauron finalized acquisition of Brzeszcze mine on the last day of 2015. The whole transaction cost only 1 PLN, but the whole investment plan estimates restructure worth 200m PLN, at least it did under the former CEO Jerzy Kurella.

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