LNM's IPS might take stake in new coal and coke concern

The State Treasury wants IPS to become a minority investor in a coal and coke concern to be created from the merger of Jastrzębska Spółka Węglowa (JSW) and the Koksownia Przyjaźń coke plant. The president of IPS, Frantisek Chowaniec, commented, "JSW needs investments. We can support them if we have a guarantee of coal supplies." JSW plans to invest zł.700 million by 2006 out of its own assets and profits, which amounted to zł.880 million in 2003. However, Chowaniec claims that JSW's needs are much higher than this as it has to initiate new extraction fields if it wants to develop. Despite this, LNM's financial credibility guarantees that there would be no problem with the execution of the investment. (Puls Biznesu, p. 3) E.B.