Gov’t to divide Kompania Węglowa?

The future of Kompania Węglowa, the biggest Polish mining company, remains in the hands of the Polish government, reports Puls Biznesu daily on Friday. The company’s losses in 2013 amounted to PLN 699 million and in Q1 of 2014 PLN 78 million. The mining sector lost on coal sale more than PLN 1 billion in H1 of 2014, informs PB. The government’s idea is that Kompania Węglowa, currently being the owner of 14 coal mines (one has been sold to Jastrzębska Spółka Węglowa for PLN 1.5 billion), should sell four of its mines to Węglokoks, another mining company, dealing in coal exports. Bank Gospodarstwa Krajowego (BGK) and Polskie Inwestycje Rozwojowe (PIR) would credit the transaction of Węglokoks’ mine acquisition. Kompania Węglowa’s losses were the result of low coal costs and low demand thereof, but also negative management or no modernization of the company. The remaining 10 mines would be sold to state-owned utilities PGE, Tauron, Enea and Energa.