Elcho signs deal to supply coal to Chorzow power station

The Tych-based coal mine Nadwislanska Spolka Weglowa S.A. has signed a deal with the Polish-American firm Elcho sp. zo.o for the former to supply 1 million tons of coal per year over a period of 20 years. The transaction is valued at zl. 100 million a year. Elcho will use the coal to power its heating plant Elektrocieplowni Chorzow (EC) which is to be refurbished by 2003. The investment is estimated at $320 million and the plant will produce 220 megawatt and 500 megawatt of electricity and heat respectively. Elcho has also signed a contract with the power grid Polski Siec Energetyczne (PSE) for PSE to buy and supply power from EC. Elcho is a joint venture of PSEG Global of the US, which owns 88% stakes, and some smaller Polish entities. (Parkiet, page 9) S.M.