Russian coal giant prepares for Polish expansion

According to industry observers, SUEK's entry into Poland could trigger a major market shake-up and spell trouble for state-owned mining companies. Based in Siberia, the company produces some 90 million tons of coal per year, the same annual output as all Polish firms combined. Although its plans for Poland are still being kept secret, SUEK did announce its intention to expand internationally at a trade conference two years ago and Poland, with its geographical proximity and low transport costs, is seen as the first beachhead. Upon entering Poland it is likely that the company will cause a spike in coal imports as the Polish market is quite attractive to Russian companies which can deliver higher quality Russian coal at a lower price. Polish mines are also strapped for cash leaving them unable to make upgrades and struggling to meet domestic demand for high-grade coal. If SUEK does decide to expand on the local market there may also be political repercussions as Gazprom is planning an acquisition of SUEK. (Puls Biznesu, p. 1, 4-5) R.M.