LWB: SAME PRODUCTION, MUCH LOWER SALES?

Bogdanka’s CEO Krzysztof Szlaga declares, that in the following years the mine will keep the steam coal production at a current level of 8-9m Mt. Until now Bogdanka was using the geographical advantage over Silesian producer in sales to Enea’s Kozienice power plant and Energa’s Ostroleka. Until now.

Not much will probably change in contracts with Kozienice, since it’s owned by LWB’s (step)mother-company, but there might be some issues with sales to Ostroleka. Szalaga is convinced, that the current contract with Energa will stay on as it is, but CEO of the Gdansk-based energy group Dariusz Kaskow said the opposite.

Energa already announced that there will be contracted 2m Mt to the new blocks in Ostroleka and 1m to the old ones from Polska Grupa Gornicza in which Energa invested hard cash few months ago. Kaskow says that is the best economical solution for the largest coal-fired power plant in north-eastern Poland. The contract for new blocks will probably be signed for next 30-40 years.

Loosing Ostroleka will definately hurt much, and there not many alternatives for Bogdanka. Not many people who know what’s what can be tantalized with promises of selling coal to Ukraine.

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