POLISH COAL MARKET MIDWEEK SUMMARY 34/2016

European Commission will be pleased, after the last week’s announcement that from all 11 PGG mines Sośnica most probably be the one that will be shut down in 2017. The ultimatum given to the facility would be a mission impossible even for Tom Cruise with a pickaxe. Following Sośnica, now the similar fate will come to Slask mine from Katowicki Holding Weglowy, as the Ministry of Energy will be establishing PHW. The rest of the mines will be combined to two mines Myslowice-Wesola and Murcki-Staszic+Wujek+Wieczorek. By the way, it is quite thought-provoking, that two mines of PHW will need half of the money (900m PLN) that 11 mines of PGG needed to start its operations…

Jastrzebska Spolka Weglowa rushed with announcing the H1 results right before announcing signing the agreement with banks to play on investors emotions. Although the signing surely made their day, the results were more confusing. Income fell by more than 600m PLN, but on the other hand JSW recorded in H1 2016 148m PLN loss (758m PLN loss YOY). After Monday’s letter to PM Beata Szydlo from the unions, where they declared that they are fully against shutting down Krupinski mine there were small and short fell of JSW stock value, but it is now slowly growing back.

Looking for some new and stable markets when domestic peri-mining industry might collapse with the mines, a few Polish companies invited by an Indian ambassador will travel to India to look for some new markets. 3rd largest global coal producer needs machinery and know-how and that is the possible field of cooperation. In the last year, Poland and India recorded trade turnover at a level of 2bn USD.

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