Coal news and updates

Polish coal mining industry makes rare profit in October

Poland’s ailing coal mining industry managed to make a profit of PLN 51.62 million (EUR 11.82 million) in October, likely thanks to a restructuring program, though overall it is still set to make a significant loss in 2015.

According to data from the Industrial Development Agency (ARP), which monitors the results of the industry, Poland’s coal mines have made an overall net loss of PLN 1.687 billion (EUR 0.39 billion) over the first ten months of 2015.

October was the second successful month this year as August also ended in a profit for the coal mining industry.

October saw a small profit of PLN 0.75 (EUR 0.17) per ton of coal sold, in contrast to an average loss of PLN 29.01 (EUR 6.64) per ton during the ten months.

“Several factors have influenced this [profit]: above all the contribution of the state budget towards costs, and various decisions taken by coal companies which have reduced costs,” commented Henryk Paszcza, the head of ARP’s Katowice branch.

Following legislation passed in January this year the worst performing mines have been placed in the special Mine Restructuring Company, backed by state subsidies, in an attempt to save the industry from bankruptcy.

As part of the restructuring, employment in coal mining had fallen to 94,025 by October, down from 103,041 at the end of 2014.

The ARP also announced that in the January to October period this year 59 million tons of coal were mined in Poland, slightly lower than the 60.3 million tons extracted during the equivalent period of 2014.

Imports of coal have fallen, with imports from Russia down from 5.6 million tons in January to October 2014 to 3.6 million in January to October this year.

At the end of October 2015 the Polish coal mining industry still had debts worth PLN 13.9 billion (EUR 3.18 billion). (sl/nh)

source: http://www.thenews.pl