Mining resumes amid surplus coal dilemma

Photo: wikipedia

Nine mines operated by Kompania Weglowa (KW) ceased production on 28 April and a further six decreased activity owing to a decision by the board of the state-owned company.

KW, which is the largest coal-mining concern in Europe, currently has 5 million tonnes of unsold coal, owing to a decrease in demand for the material.

The company lost 1 billion zloty (237.7 million euros) on sales of coal in 2013. Global prices of thermal coal have dropped by 13 percent since 2011, and those of coking coal by 23 percent.

Trade unions had opposed the board's policy of decreasing production. There are fears among workers that some mines may be closed entirely in the near future.

Prime Minister Donald Tusk, who is attending a coal industry summit on Tuesday in Katowice, southern Poland, has repeatedly championed coal as an energy source.

He has cited it as a key factor in the government's programme of energy diversification, and that of a Pan-European energy union.

“From the point of view of the Polish government, coal has to be a strategic foundation for energy security in Poland,” he said on Monday.

“This requires very sophisticated tactics, both in relation to the EU and importers of coal,” he added.

“We want to find a way to make Polish coal competitive,” he stressed. (nh)

Source: PAP