Polish coal miner reduced coal output target for 2017

Poland’s state-run PGG, one of the biggest coal mining firms in the European Union, said on Friday it had reduced its 2017 coal production target by 2 million tonnes to about 32 million.

“In the first half of the year, we have produced 14.5 million tonnes of coal and in the whole year we want to produce 32 million tonnes or slightly more,” PGG Chief Executive Tomasz Rogala told reporters.

He added that he expected coal imports to Poland at 5 million-6 million tonnes this year.

PGG, previously known as Kompania Weglowa, avoided a collapse last year thanks to financial support by state-run utilities PGE, PGNiG and Energa.

Earlier in 2017 PGG took over another troubled coal mining firm KHW, also with the help of the utilities.

Following the takeover, local media reported that PGG would likely miss its 2017 targets and be forced to import coal from Russia, as it had not invested enough to be able to dig as much coal as it had planned. The reports cited unnamed sources.

In 2016, when PGG and KHW were still separate companies their coal output stood at about 24 million tonnes and 9 million tonnes respectively.

Source: Reuters

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