According to the Financial Times, KW will be broken up as part of a €530 million ($A773 million) rescue package announced on Wednesday.
“The priority is to save Kompania Weglowa,” head of the Poland government’s mining task force, Wojciech Kowalczyk, said.
“Today, the alternatives are clear: a recovery plan or bankruptcy. We cannot have a negative scenario, which is a chaotic bankruptcy and liquidation.”
The four worst performing mines are expected to close while a new entity will be formed to take over nine more viable coal mines.
The newspaper reported that the remaining mines would be sold to a third party.
“Unions reacted angrily to news of the closures on Wednesday, threatening possible strike action in a letter to the country’s prime minister published on local news websites,” FT reported.
Poland’s coal industry employs more than 100,000 workers.
