2008-09-25 06:50:59 -
Poland Mining Report Q3 2008 - a new market research report on http://www.companiesandmarkets.com www.companiesandmarkets.com/Summary-Market-Report/Poland-Mining- ..
Uncertainty surrounding the sale of the Silesia coalmine by Kompania Weglowa (KW) to British energy company Gibson Group International (GGI) persisted in May 2008. In December 2007, GGI was the only company to make an offer in the tender for the mine, which has 500mn tonnes of coal reserves. GGI will pay PLN205mn (US$93.2mn) and
has committed to investing at least PLN250mn in the mine, which is currently losing PLN30mn (US$13.6mn) a year.
However, as of April 30, KW reported they had no information as to when GGI CEO Tom Gibson would sign the deal, signed by the KW management on April 16, and had sent a letter to GGI on April 23 urging a rapid signing of the agreement. After the signing, the deal must then be approved by the economy and treasury ministries. Vattenfall of Sweden said in March that it was planning to build a 2 x 800 megawatt (MW) coal-fired power plant in Poland at an approximate cost of EUR2.4bn. A site for the plant had yet to be decided, and the company would look at the newest carbon-reduction technology available, including carbon capture and storage (CCS), officials said.
Days before the announcement, Polish Economy Minister Waldemar Pawlak had said the country would build at least two new power stations using CCS by 2015, which would qualify for financial assistance from the EU. Pawlak said Poland was 95% reliant on coal for electricity generation and that the introduction of cleaner generating technology was vital if the country was to meet its EU commitments to reduce CO2 emissions by 20% by 2020 (known as the ‘3x20’ commitment). Poland has a healthy mining industry even though its contribution to GDP is small – in the region of 3%. The country hosts large deposits of coal, contributing about 3% of the world’s bituminous coal demand.
Its copper reserves add up to 5% of the global reserves. The nation is also a significant producer of silver, responsible for nearly 6% of the global silver production. The Polish mining equipment and services industry is also gaining international repute, especially in Russia, Ukraine, China and Australia. Coal extraction in Poland has been witnessing a contraction in recent years. To improve the situation, the Polish government has earmarked over US$90mn from the state budget for development of the coal industry, which will be utilised during FY09/10. However, corruption remains a major issue for the industry as indicated by Poland’s Supreme Board of Inspection, according to which Poland loses about 2- 3mn tonnes of resources annually via smuggling. Nonetheless, well-established infrastructure and welldefined governing bodies ensure a secure business environment. Further, surging metal prices presage a lucrative period for the Polish mining industry.
The State Mining Authority is the regulatory body for the mining industry in Poland while it is the Geological and Mining Law, 1994, that regulates the mining industry in the country. According to a new mining bill, the state will sponsor 30% of the initial investment required for the development of mining companies. The bill also permits mining companies to raise funds from the stock market – widening access to much-required capital. Industry Forecast The Polish government has been implementing investor-friendly policies and laws over the past few years and hopes to cut down on bureaucratic delays that inhibit substantial investments. On the back of these policies, this report forecasts the Polish mining industry to grow an average of 6.8% per annum during 2008-2012.
www.companiesandmarkets.com/Summary-Market-Report/Poland-Mining- ..
