Category: REPORTS

INTERNATIONAL WEEKLY PRICES JUN’16

Last week we’ve delivered you with last month Richards Bay and Amsterdam-Rotterdam-Antwerp prices. Today, on a point of order – update on weekly international prices (DES ARA, FOB RB, FOB Newcastle) in June – a prelude to July’s upwards trend.

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INTERNATIONAL STEAM COAL PRICES: APRIL 2016

Warmer and warmer weather on the Northern Hem. and global oversupply were the main factors of further decrease of international coal price levels. Being the border-bottom of three main markers with all its green- and efficiency-oriented energy policies in Europe, ARA index still did not went as low as it could, mainly because of redirection of some Colombian deliveries to Asia (Thailand, India).

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BOGDANKA KNOCKED-DOWN BY A KANGAROO 2/2

Few shadows lies on the whole story. Isn’t it puzzling that Australians knew exactly where to look for the LZW golden-coal-vein? Did the former CEO of Bogdanka Miroslaw Taras had anything to do with it, as he was surely aware of LWB’s plans before he left the company conflicted with Supervisory Board and joined PD Co as an advisor? Another question that could be raised: is the whole Jan Karski mine a real deal? Or is it just a tool to bully Bogdanka and force them to buy entire Lublin Coal Project and unblock their expansion?

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RESCUING KW: SOLIDARITY VS. SOLITUDE [PT.1]

Not getting deep into the issue of reasons behind it, Weglokoks was and will be an entity that supports restructure of Kompania Weglowa. The ongoing project of establishing Polska Grupa Gornicza posits moving KW’s mines (not the whole company) to Weglokoks Group, which is a middle way between building a national coal mining holding and bursting the sector to small, independent pieces.

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THE PROCESS OF KW’S TRANSFORMATION 2015-2020

Do you think there are many outstanding viable opportunities for investors in Polish coal assets? How successful do you think the government has been so far in restructuring Poland’s coal sector and what more should be done to make the industry sustainable long term? – check out our views on these subjects in an interview with Polishcoaldaily Founder and Editor…

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IF GOING GETS TOUGH, WILL FOREIGN GET TO GO?

Perfunctory announcements by Grzegorz Tobiszowski and others involved in establishing Polska Grupa Górnicza about potential investors may suggest, that there are not so many entities interested in helping KW’s mines. As far as State-owned companies may be impelled to come to the rescue, domestic private firms would not be so willing. Is there a field for foreign companies in this game?

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PRODUCTION IN THE TIME OF CHOLERA: KHW

For KHW 2013 was a year of relative stability. The company produced 12m Mt of coal (18% of total domestic steam coal production) and had almost 45m PLN of net profit. Just like Kompania Węglowa at the time, Katowicki Holding Węglowy planned investing in its own power plants. Also, KHW was running its underground coal gasification project (which is today under investigation by Supreme Audit Office, but on the aspect of insufficient support from the former Minister of Economy).

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RADIO 3 AUDITION ON POLISH COAL SECTOR [PL]

We’ve received a couple of emails with requests for translation of the latest interview with our Editor by TV Republika, so you can expect it in a few days. Yet, today we give you the link to yesterday’s audition in Polish Radio Three with a comment on the current coal mining situation in Poland (available for Polish-speaking followers only).

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A.D. 2015: A YEAR OF EMPTY VICTORIES [PART 1]

Hitler’s endsieg in its origin meant “ultimate victory at any cost”. Soon after the II World War, critics gave it a new meaning: “costly and empty victory”. Similar term could be used to describe what actually happened in the Polish coal market in 2015, where all the spectacular successes that were celebrated with great fanfare were actually of rather minor value.

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INTERNATIONAL COAL PRICES: NOV ‘15

Winter is coming, but in case of global coal market it won’t bring any white walkers from George R.R. Martin’s book series, but instead – increased demand for coal. In Europe low water level on Rhine (one of the key routes for European cargo shipping) and on the other hand warm temperature caused in stable prices, with a significant drop in the last week of November.

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SUPERMINISTRY OF SILLY AND SLOW WALKS

Like in the tales shared in the Ancient Greece, in the beginning there was chaos: various powers were split by different offices. Then out of void appeared Piotr Naimski, who wanted to put a stop to this disorder and to gather all the competences related to the power industry into one hand of Superminister of Energy. But just like with the Cronus in Greek Mythology, Naimski was defeated and sentenced to Tartarus, and so his plan was forgotten with him.

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PRODUCTION IN THE TIME OF CHOLERA: INTRO

When you’re running a convenience store or any other type of small-time operation and you just had a bad year, you surely can start thinking of some ground improvements or selling of the business. If you skip the mending process and decide to just see if the next year might bring some bounce up, you may find yourself in the situation when bankruptcy is the only way out. What happens, when you are having the same troubles, but your operation is a multimillion coal production business, and you’re about to close in red the third year in a row?

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1 PICKAXE FOR EVERY 7 GUNS IN THE ARMY

In primary school, every Polish kid learns about symbiosis – a close and long-term interaction between two different species, that can be observed e.g. when clownfish feeds the anemone with its fecal matter, and in exchange anemone protects the clownfish from predators using its stinging cells, to which the clownfish is immune. Their cooperation should be an example for healthy relations between the government and its strategic sectors. Unfortunately, the relation between the State and mining industry seems more like a parasitic arrangement, where on one hand the government sucks the body fluids of its host, and on the other stabs him in the back, imposing Draconian EU climate laws.

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SHERLOCK HOLMES DOESN’T WANT TO BE A MINER

During the recent COP in Paris many panelists, including Faith Birol from IEA highlighted the problem of governmental subsidies for fossil fuels, calling it a “major hurdle for the development [of renewable energy]” and “public enemy #1 in the terms of sustainable energy development”. Are they such a big deal and how does it look on the Polish back yard?

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RESULTS AFTER 3 QUARTERS: RESTRUCTURING

In the period of first three quarters of 2015 the governmental money train brought to Polish coal mining sector 530.2m PLN. Majority of this amount (304.4m PLN) was used for tasks connected with liquidation of mines and other facilities (the ongoing process since 1998). For real restructure the Mines Restructuring Company (SRK) received 207.4m PLN.

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