BRZESZCZE MINE TENDER SCENARIO ONCE AGAIN?

Makoszowy mine, producing steam coal even though for almost year and a half now the facility is in Mines Restructuring Company (SRK) for liquidation, soon might be put up for a public tender. Ministry of Energy (ME) probably is tired with paying for infusions, while the mine itself is struggling hard to survive.

Makoszowy is the only mine that was moved to SRK still producing coal. Last year it produced 350,000 Mt, but sold only 166,000 Mt (all the best contracts left with Kompania Weglowa). It is hard to explain how is it possible that the facility was not yet shut down: despite the protests from the unions, ME decided to go public with Makoszowy’s performance and showed, that with 204 PLN/Mt average market price for coal the cost of production of one ton was 507 PLN.

Surprisingly, the unions were now the ones that pressured for the public tender. When last year Australian Balamara showed some interest in taking over the mine, there were no comment from them, all they keep repeating was that Makoszowy should be purchased by PGE. Can we trust them now that this tender will not end up like the one we’ve had for Brzeszcze?

The first thing that investor (if there will be any) will have to do, will be paying back all the public aid that Makoszowy received. For it is estimated for 207m PLN (+additional 30m for HR connected with severance pays). At the moment there are 1359 people employed in Makoszowy mine.

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