Coal news and updates

Poland in talks with private investor on coal miner NKW -minister

Poland is in talks with a private investor regarding a new company to be forged from nearly bankrupt Kompania Weglowa, Europe's largest coal miner, the deputy treasury minister was quoted on Thursday as saying.

"We're in talks with one such entity, although we do not exclude talks with others," Deputy Treasury Minister Wojciech Kowalczyk told daily Dziennik Gazeta Prawna.

Following union protests this year, the treasury decided to form Nowa Kompania Weglowa (NKW) by spinning off the legacy miner's loss-making mines for restructuring.

NKW is set for launch this month.

State-controlled utilities such as Tauron and PGE , which generate power mostly from coal, are seen as potential buyers for individual restructured mines.

As for NKW, coal trader Weglokoks and state investment funds TF Silesia and FIPP are to provide NKW with 800 million zlotys ($213 million) in capital this year and 700 million in 2016.

The government approved the transfer of small stakes in state-run gas company PGNiG, utility PGE and insurer PZU to TF Silesia to be used for collateral.

The treasury also wants a private investor for NKW.

"I'm sure that when NKW starts to function and shows the effects of restructuring, investor's interest will be getting higher and higher," Kowalczyk said, adding that by the end of 2016 NKW was expected to book positive cashflow.

($1 = 3.7603 zlotys)

source: http://in.reuters.com