PKE seeks purchase of three state-owned mines

Poludniowy Koncern Energetyczny (PKE), or Southern Energy Concern, is looking to acquire three state-owned mining companies, Boleslaw Smialy, Wesola and Ziemowit, located respectively in Laziska, Myslowice and Ledziny, and whose aggregate value PricewaterhouseCoopers has estimated at zl.1 billion. PKE says it will submit an official offer to the State Treasury at the end of January. PKE claims however that the three companies' total worth is lower than zl.1 billion, as the mines are currently not profitable. PKE says its interest in Boleslaw Smialy stems from the fact that it is located next to one of PKE's power plants, while the Myslowice- and Ledziny-based mines would provide high-quality coal. That all three mines have coal reserves lasting for at least 40 more years is an added benefit. PKE consists of seven power plants and thermal-electric power stations and already owns one coal mine, Zaklad Gorniczy Sobieski. With its yearly demand of roughly 10 million tonnes of coal, it needs at least three other mines to become fully independent of other coal suppliers. (Gazeta Wyborcza, p.21) M.K.