Giant coal consortium planned for 2003 under new sector restructuring plan

Deputy Economy Minister Andrzej Szarawarski has announced that a new stage in the restructuring of the coal mining industry will begin on January 1, 2003. The Democratic Left Alliance (SLD) government believes a new plan is necessary since in its present condition the industry is expected to suffer losses of between zl.1.05 billion and zl.1.2 billion annually. Government financial help for the mining sector is unlikely in view of the current economic situation, and thus a new plan, which will not require any budget help, is needed. The proposed program envisages the mines saving from zl.2 billion to zl.3 billion annually. This would be achieved in part by cutting down on paid holiday allocations and limiting severance packages. However, the biggest savings would be made through so-called technical restructuring. Seven mining companies will be consolidated, and the least profitable mines will be closed. The restructuring plan also envisages the creation in 2003 of a mining consortium, Polski Wegiel, which would comprise 35 to 38 mines along with several coal trading companies. (Gazeta Wyborcza, Nov. 17-18, p. 30; Rzeczpospolita, p. B2) M.T.K.