In this list

Polish hard coal miner PGG to hold back restructuring plan

Agriculture | Grains | Energy | Coal | Thermal Coal | LNG | Natural Gas | Oil | Crude Oil | Refined Products | Naphtha | Metals | Steel | Steel Raw Materials

Market Movers Asia, March 27-31: South Korea eyes oil supply security, China could see improvement in steel demand

Energy | Coal

Platts Global Coal Alert

Energy | Coal | Coking Coal | Energy Transition

Singapore Coking Coal Conference 2023

Energy | Oil | Petrochemicals | Refined Products | Crude Oil | Fuel Oil | Jet Fuel | Gasoline

CNPC bets on 5% oil demand growth in 2023 as China tries to erase pandemic pain

Metals | Energy | Oil | Energy Transition | Natural Gas | Coal | Steel Raw Materials | Crude Oil | Emissions | Carbon | Steel | Renewables

Commodity Tracker: 4 charts to watch this week

For full access to real-time updates, breaking news, analysis, pricing and data visualization subscribe today.

Subscribe Now

Polish hard coal miner PGG to hold back restructuring plan


Unions rejected plan, threatened strike

Leaked plan details included mine closures, payment suspensions

  • Author
  • Adam Easton
  • Editor
  • Jonathan Fox
  • Commodity
  • Coal

Warsaw — Poland's Ministry of State Assets on July 28 decided not to present a restructuring plan for the country's largest hard coal miner, PGG, because union leaders had already declared it was unacceptable.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

Instead, deputy prime minister and state assets minister Jacek Sasin has proposed setting up a new working team, including union representatives, to formulate a restructuring plan that is acceptable to all.

"From the beginning, the government and deputy prime minister Sasin said that there was absolutely no question of carrying out such a complicated operation without trade union approval," a Ministry of State Assets spokesman said. Union leaders had started strike preparations in reaction to the plan.

According to information leaked to the media, the state-owned company's restructuring plan, drawn up in conjunction with the ministry, would have closed the loss-making Ruda and Wujek mines by October.

The Ruda mining complex, which consists of three previously separate mines, produces 4.3 million mt/year while Wujek produces 0.8 million mt/year. Both mines together employ 7,700 workers.

In the years 2010-2019, Ruda made losses of Zloty 2.273 billion ($604.8 million) and Wujek Zloty 232 million ($61.7 million). A third mine owned by the utility Tauron would also be closed, cutting Tauron's annual production by about 1.5 million mt.

Katowice-based PGG, which is also the largest hard coal miner in the EU, employs about 41,000 people and last year produced about 30 million mt of thermal coal.

In 2019, Poland's hard coal output, which also includes production from Tauron, coal trader Weglokoks and coking coal miner JSW, reached 61 million mt. The ministry had planned to cut output to 54 million mt through the restructuring.

PGG said restructuring is required to avoid bankruptcy caused by the coronavirus restrictions and falling coal prices in Europe. Poland's thermal overproduction is estimated at 4 million mt this year and up to 7 million mt in 2021. There are currently 15 million of thermal coal stockpiled at collieries and power plants.

Under the plan, miners would also have had a monthly bonus suspended for four years and 30% of their salaries would depend on attaining efficiency targets. A Zloty 5 billion package would help cover the cost of redundancies and mine closures.