The Polish mining sector has been in the black for a long time and is meeting all of its current liabilities, Deputy Economy Minister Jacek Piechota announced. He insisted this result would have no impact on the restructuring process, which will continue.
The good financial results will only allow for the implementation of a less restrictive version of the plan.
"This is the first time since October last year when the export of Polish coal has been profitable," Piechota said.
McCloskey's Daily Coal News also reported the Polish government’s plan to restructure its mining industry assumes the sector will invest as much as US$2 billion between 2006-2010. The money is desperately required to revitalise ageing equipment.
About US$ 1 billion will be spent on building new premises and US$ 1 billion on buying new machinery. The money would come from the sector's own sources.
Meanwhile, the World Bank expects to approve a loan of US$100 million for coal mining reforms in Poland by mid-July. The World Bank approved a US$192 million loan to allay layoffs in the coal industry in April. The loan to be approved in July will be earmarked mainly for coal mine closures.
In the restructuring plan sent to Parliament, the Polish government is seeking to cut coal output by 12 million tons annually, of which 9.2 million tons would come from Kompania Weglowa, Poland's largest mining group.
Production cuts would be achieved through the shutdown of six coal mines. The announcement of mine closures has sparked massive protests from coal labor unions.
