POLISH COAL MARKET MIDWEEK SUMMARY 36/2016

As much as unions would like that, Tauron is not interested in taking over Krupinski mine. Company will still base their power production on coal, but they do not find any use of a mine that produces coal too strong for energy production but too weak for metallurgy (apart from all the other factors behind the decision of moving Krupinski to SRK).

Until the end of current month, potential investors can submit their offers for Makoszowy mine, which was just put on a tender. SRK hopes that by the end of this year mine will be sold, the only question is who will be willing to give back 237m PLN of public aid that Makoszowy received in recent months?

JSW’s stocks rocking sky high, as the company is finally disposing of Krupinski mine and reached an agreement with banks. Also, rising coking coal prices on the international markets (140 USD/Mt in Australian Newcastle – highest level in 2-3 years) make the investors very optimistic. Above that, JSW promised them decreasing fixed costs by 1.6bn PLN per year by 2025.

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