If tonnages continue on their current trend, imports of coal into the country will hit 20 million tonnes by the end of the year, according to a new report by market research firm Companies and Markets.

As reported in the Warsaw Business Journal, Polish coal mines are finding it difficult to sell their production as domestic energy producers are increasingly turning towards lower-cost foreign imports.

Coal imports in the first quarter of 2009 were three times the level seen in the first quarter of 2008. Monthly purchases of foreign coals have reached 1.43Mt.

In the first quarter, it was reported that around 2Mt of Polish coal was left waiting for a buyer.

The Polish Economy Ministry says the situation may deteriorate further with an 18% drop in sales of domestic coal to the power industry. The situation will not improve until Poland’s coal sector can regain competitiveness on price. Currently, coal prices in ports such as Amsterdam and Rotterdam are lower than coal from the Silesia region, Companies and Markets noted.

In June, Polish chemicals company Pulway announced it will be looking to purchase shares when coal miner Bogdanka launches its initial public offering.

Pulway’s interest is thought to stem from the two companies developing a coal gasification joint venture, which is designed to reduce Pulway’s reliance on polish energy company PGNiG.

Bogdanka is hoping to use the $US140.5 million raised from the IPO to finance its own investment plans.

It needs to modernise its mine operations and improve infrastructure in order to hit its stated target of doubling coal production from 5.5Mt in 2008 to 11Mt in 2014.

Despite domestic producers struggling to sell their coal, the Polish mining equipment and services industry is gaining international repute, especially in Russia, Ukraine, China and Australia.