-1.7 C
Belgrade
Supported byspot_img
spot_img

KW Poland coal producer seeks investor support for restructuring project

Member of Europium Groupspot_img
Supported byspot_img
Kompania Węglowa (KW), Poland’s largest producer of coal, is understood to have entered talks with investors over a planned capital injection of PLN 1.5 billion (EUR 0.34 billion) to help continue its restructuring project.

KW, which was on the brink of bankruptcy in 2015 though was saved following government assistance and a restructuring program, is expected to launch the Polish Mining Group (PGG) this May and transfer eleven of its mines over to the new company.

According to KW’s chairman Krzysztof Sędzikowski the company needs to raise PLN 2.2 billion (EUR 0.5 billion) to go ahead with this, of which PLN 1.5 billion will come from investors.

The director did not disclose the identities of the companies involved in the talks, though revealed that so far none of the entities which have signed confidential agreements with KW and gained access to the company’s data are foreign.

Supported by

Sędzikowski argued that the restructuring is already having a positive effect, and that in just a year the average cost of producing a ton of coal has fallen from PLN 300 (EUR 68) to PLN 260 (EUR 59). The business plan for the PGG projects that this will fall further to PLN 214 (EUR 49) by 2017.

However, there are still challenges ahead as according to KW data last year only three of the eleven mines in question were profitable, with another two mines coming close to making a profit in 2015 and the rest making a clear loss.

“Ultimately all the mines must be profitable; we have already succeeded in doing a lot to improve profitability, but there is still much to do,” commented chairman.

In 2015, KW extracted almost 26 million tons of coal, making it Poland’s largest producer in the sector. The company employs around 34,000 people.

Source; PAP

Supported byElevatePR Digital

Related News

Important Announcement to Our Readers

After years of dedicated efforts to promote the European mining industry and foster a balanced approach between environmental conservation and the responsible exploitation of...

India set to decide on import restrictions for metallurgical coke

India is set to make a decision soon on whether to implement import restrictions on metallurgical coke, a crucial ingredient in steelmaking. According to...

AMMC targets major production milestones by 2030 with ongoing development projects

Almalyk Mining and Metallurgical Combine (AMMC) has set ambitious production goals for 2030, aiming to achieve annual output of 500,000 tons of copper, 50...

Kazatomprom partners with Jordan uranium mining company on joint uranium exploration and extraction

Kazatomprom, Kazakhstan's national atomic company, has entered into a collaboration with Jordan Uranium Mining Company (JUMCO) to jointly explore and extract uranium in Jordan....
Supported by
Supported by
Supported by
error: Content is protected !!