The information emerged from a preliminary report prepared by a government-contracted expert group which said 12 out of the country’s 33 coal mines would be shut down due to forecast demand falling from 103.5Mt in 2002 to 70Mt in 2020.

Poland plans to close the Krupinski mine, owned by Jastrzebska Spolka Weglowa, by 2006, the Kompania Weglowa Holding Bytom II mine by 2010, three more mines by 2015 and the remaining 7 by 2020.

At this stage no liquidation costs had been publicised.

At its peak Polish coal consumption was 193Mt in 1998. However, experts said it was crucial to work out new assumptions for Poland’s energy policy as those based on last decade’s figures were no longer valid.

The preliminary report has strived to provide justification for closures after union pressure was applied to government after the announcement of its plan to close the seven worst performing mines during talks on a sector-wide restructuring plan.

The original program planned job cuts of 35,000 up until 2006, including 17,000 expulsions in the first year. Lay-offs under the new policy are now set at 27,200 for 2003-2006, based on 21,200 in natural departures.

Union pressure had also forced the government to back away from original mine closure plans.