Poland to spend PLN billions to save state coal – S&P

According to the ratings agency S&P, Poland will need several PLN billion in state funding until 2016 to save fledging coal mining sector. “We believe that unless coal prices recover, which we don't expect in the coming years, the government will need to provide funding to the industry to the tune of several billion of Polish zloty in 2015 and 2016,” S&P analyst Elad Jelasko was cited in the statement as saying. Low price of coal, are not the only factor why the sector faces tough times and many companies are hemorrhaging money. Due to the new EU environmental targets its importance in the nation’s energy mix will be fading. “New EU environmental targets will require the country to adopt more environmentally friendly energy sources, and it may rely more heavily on cheaper imports as we expect domestic coal production to trend down on the back of low growth spending,” the report said. In the first nine months of 2014, Polish coal mines lost PLN 1.9 billion on sales, which fell by 10.9 percent year-to-year.