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Polish unions block Russian coal

AN old score to settle, or current pragmatism? Hundreds of Polish mine workers are protesting aga...

Anthony Barich
Polish unions block Russian coal

Mining union leaders say cheaper coal imported from Russia is putting pressure on a local mining industry already struggling with high production and labour costs and falling coal prices.

Polish mining firms including the Kompania Weglowa have been suffering huge losses due to a slump in the demand for coal.

“Right now, around 80% of tenders for coal supplies to units run from the state budget are won by suppliers of imported coal because they offer dumping prices," Reuters quoted mining union Solidarity leader Jaroslaw Grzesik as saying.

Solidarity union head Dominik Kolorz also said the mine workers could block the Braniewo-Mamonowo passage until the government fulfils their demands.

And while we’re speculating here, they might get their way.

While Poland's government has announced the goal of sourcing 15.5% of domestic energy supply from renewable energy sources, the US Energy Information Administration said the strength of Poland’s coal industry, the local abundance of coal and relative price of coal has contributed to Poland's opposition to environmental measures proposed by the European Union.

While Poland, which uses the majority of its own coal to generate electricity, exports roughly the same as it imports in coal, the problem is it’s cheaper to buy from the likes of Russia than to producing its own.

This would appear to be an ironic if sad fact, considering the EIA says Poland is Europe’s largest coal producer behind Germany.

Poland produced 76.5 million tonnes of coal, exported 10.6Mt and imported 10.8Mt of coal from Russia and Czech Republic last year.

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