POLISH COAL MARKET MIDWEEK SUMMARY 45/2016

Krupinski mine – bone of contention between JSW’s Management Board, debtors and now also Ministry of Energy on one side and labor unions on the other over moving it to SRK has to be solved at once. JSW’s MB decided to summit extraordinary general meeting on 29th November to finally make decision, regardless of what the miners will have to say.

Busy season for EU Commission in monitoring Polish mining and energy sectors. As it wasn’t enough, now one of the stockholders of Czech OKD (Arca) is complaining to EUC on unfair and non-market aid given by the Polish government to Polish coal producers (KW/PGG and KHW).

PD Co decided to team up with China Coal in regards to building Jan Karski mine. Not going into digressions over was it pumping stocks or not and taking it serious, this move could be an answer to the new law of getting mining license, which requires to show the full financing for the whole project (approx. 2bn PLN). China Coal, with all its assets and cash could cover that topic as a guarantor.

In primary report for first 3 quarters of 2016 LW Bogdanka had 120m PLN of profit, which means they are the only Polish state-owned coal producer that not achieved loss. Full report should be available tomorrow.

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