Possible Polish mines take over

POLISH power group PKE announced they would look at acquiring two to three coal mines from troubled coal operator Kompania Weglowa (KW), Poland Business News reported.

Staff Reporter

The possible sale would alleviate some of the state-owned coal group’s pain after it announced its mine closure process would begin in August. Debt-ridden KW will be forced to close some of its mines to gain a capital increase, with estimates of liquidating four to five mines.

The closures should mean a PLN 400 million capital increase for the struggling group.

Polish reports said PKE wanted to cover 60% of its group's coal demand from its own resources. The number of mines it took over from KW would depend on their production capabilities.

PKE currently operate one mine producing over two million tonnes per year.

Poland Business News reported KW recorded losses large losses in coal sales between when it started in February to May, as well as a massive net loss.

KW formed by taking over the operations of five coal producers with 24 mines.

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