Large profits forecast for new coal company

NKW will be formed as part of an ongoing rescue and restructuring plan for Poland’s ailing coal mines, with a controversial bill eventually passed following protests and some amendments.

According to its business plan, NKW will have a profit of PLN 2 billion in 2017 (EUR 480 million), in contrast to the PLN 2.4 billion (EUR 580 million) loss the old Coal Company made in 2014.

This is expected to be possible due to the transfer of unprofitable mines into a special and separate ‘Mine Restructuring Company’ and a cut in extraction costs to just PLN 200 (EUR 48) per ton of coal.

NKW also plans to alter its product mix to be more profitable, with an increased production of both coarse coal and coke.

Deputy Finance Minister Wojciech Kowalczyk said this business plan “will guarantee Poland a safe coal supply for at least the next thirty years.”

However the new company will require financing of PLN 2 billion by the end of the first half of 2016 to fund its restructuring project. Kowalczyk added that talks are currently ongoing with investors and a shortlist of interested parties will be revealed by the start of May. (sl/rg)

Source: PAP