POLISH COAL MARKET MIDWEEK SUMMARY 06/2016

After labor unions rallies in all KW’s mines and other facilities on Tuesday and today’s meeting between miners and the Management Board, Kompania Węglowa decided to withdraw from what they recently withdrew – the agreement from 17th July 2015 about 1-year period of unchanged working and payment conditions in Polska Grupa Górnicza. Today’s 4 hour-meeting will be continued tomorrow from 9:00 AM, when both parties will discuss also 14th month’s salary (KW wants to make these payments in installments, since the whole cost was estimated for more than 220m PLN).

Same discussion ended last week in Katowicki Holding Węglowy, yet in this case labor unions were more understanding. 14th salaries will be paid in two installments (first was made on Friday, second will be paid by 5th July).

Probably encouraged by the strength of miners, labor unions from Arcelor Mittal steel mills threatens of going on strike if the Management Board won’t sit down and discuss with them their salary raises proposal. That could really hurt AM’s major supplier – JSW – which according to Grzegorz Tobiszowski will need at least 1bn PLN to avert the bankruptcy.

Not foreign but domestic private investor, Kopex still thinks about building new hard coal mine, yet its CEO made it clear, that his company will need not only the plan and licenses, but above that – financial partner.

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