Not getting deep into the issue of reasons behind it, Weglokoks was and will be an entity that supports restructure of Kompania Weglowa. The ongoing project of establishing Polska Grupa Gornicza posits moving KW’s mines (not the whole company) to Weglokoks Group, which is a middle way between building a national coal mining holding and bursting the sector to small, independent pieces.
For the first time the idea of creating one large group of Polish steam coal producers appeared in 2009 in report of “Polish Energy Policy 2030” by Ministry of Economy. It was assumed, that a company called Polski Wegiel SA will consists of Kompania Weglowa and Katowicki Holding Weglowy, which will be responsible for production, and Weglokoks, which will take care of sales, domestic and international.
The concept was and still is strongly supported by the labor unions, which better than most recognize the power of unity. For them, the more concentrated structure has better chance to defend their interests. At the beginning of the decade this idea was also quite reasonable from the economic point of view, when it was giving mining companies stronger position in negotiation with oligopolistic power sector. Back then, the whole mining industry was entering 3 prosperous years, with big plans of new investments.
Today, with two ships sinking and third one trying to rescue them this scenario is more than risky. No doubt that Weglokoks cannot afford saving both KW and KHW at once with all the dead weight they’re carrying,. Even merging Weglokoks with only Kompania Weglowa would not be a long shot. What’s left? How about fragmentation…
PART TWO COMING NEXT WEEK