Polish miner Kompania Węglowa clinging on to solvency, CEO says

Chief Executive Krzysztof Sędzikowski said the miner will survive until the end of September, when a new coal enterprise, Nowa Kompania Węglowa (NKW), is to be formed.

Sędzikowski said he hopes the Polish government will do "everything to meet this plan."

The formation of NKW and the transfer to it of some KW mines is part of the government’s rescue plan for the mining sector. In 1H15, KW posted almost PLN 750m (USD 200m) net loss.

There are several investors that have begun due diligence at NKW, Sędzikowski confirmed, without disclosing any names.

Polish energy companies have come out against participation in the project.

Sędzikowski said that if talks with energy companies fail it would mean the need to prepare a new rescue plan for the coal group.

In the first seven months of the year, KW posted EBITDA of PLN 446m, compared with a planned PLN 252m.

Węglokoks Rybnicki Okręg Wydobywczy (ROW) has applied to Poland’s Office of Competition and Consumer Protection (UOKiK) to buy some of the assets belonging to Kompania Węglowa, a state-owned coal group.

KW is being restructured by the government and will be sold off. The restructured KW will need another PLN 2 billion (about EUR 500 million) in capital by the end of June 2016, Sędzikowski said in March. (jh/rk)

Source: Parkiet