Kompania Węglowa to present its rescue plan within month

State-controlled Kompania Węglowa (KW), Europe’s biggest coal miner will present a draft of its repair program within a month. Company’s CEO, Mirosław Taras, said that KW might be forced to close at least one of its mines, but will avoid “brutal lay-offs.”

 

Taras said that if any mines will be closed its staff will be offered positions elsewhere in the company.

 

The company, which recently halted operations in some of its mines is not planning to repeat such actions right now, but does not exclude such possibility in the future.

 

According to Taras, the company must now focus on improving its efficiency. “If we improve efficiency at KW, we will produce a sufficient amount of cheap coal and we will be able to sell it,” he said. There are currently around 5 million metric tons of unsold coal in its inventory.

 

Even with all the planned changes, the company is not expected to post positive results in the next 2-3 years. Last year, KW posted PLN 1 billion loss on coal sales.