Coal mines' financial condition worsening says Economy Ministry

The Economy and Labor Ministry yesterday delivered to the Polish Press Agency (PAP) data concerning the financial results of the coal mining industry for the first quarter of 2003. The data revealed that by the end of March mines had paid only 60.7% of their liabilities to the Social Insurance Board (ZUS), 58.7% of VAT and 94% of income tax. These liabilities add to the mines' present indebtedness and may lead to their failure to meet the requirements necessary to write off their debts. The data also revealed that in Q1 the mines lost zł. 1.43 on every tonne of coal sold. The result is much worse than the parallel result from last year, when mines earned zł. 8 per tonne. The losses have been generated by Kompania Węglowa, comprising 23 mines, which has lost zł. 12.22 per tonne since it started operating two months ago. The total sum of losses on coal sales in Q1 stood at zł. 33.3 million. (www.rmf) K.Ż.