My trip to Poland, page-21

Here's one that I found that describes the woes of the Polish coal sector, EXCLUDING the privately owned companies like Bogdanka.

I have read elsewhere that the Polish government is again considering closing unprofitable State run mines in Poland.

It an  exceptionally shocking translation, but it basically illustrates the hugely expensive "benefits" or "bonus wage structure" that exists in the State run mines in Poland.

Here's what a Polish mate said about the 13th and 14th salary that is mentioned in the first paragraph. Bogdanka and the other privately run mines don't pay these "bonuses".

"There are 12 mths in a year. The 13th is a bonus and 14th is another bonus so some workers get paid 14 monthly wages in a year. There are 20 such BS bonuses in the mining industry. All up they massively increase the OPEX which makes the mines not profitable."



http://translate.google.com.au/tran...jest-nieatrakcyjny---piechocinski&prev=search

11/14/2014 12:04 - 17923599
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Polish coal is unattractive - Piechociński

Deputy Prime Minister Janusz Piechociński believes that Polish coal loaded over 20 bonuses for the mining environment "is simply unattractive." "Bogdanka, which in these difficult circumstances receives a profit, is not encumbered deputatami, or the 13th and 14th salary" - he said.


"Today, the ARA (Amsterdam-Rotterdam-Antwerp), we have coal from America, South Africa and Australia at the level of $ 75-76 per tonne. If it przemnożymy three of the piece, we see that Polish coal - especially mining Silesia - 20 charged with some additional bonuses for the mining environment, not always related to the efficiency of coal mining, and often only the effectiveness of one tonne of carbon exported to the surface, is simply unattractive "- said Piechociński conference on Friday.

In his opinion, because of this Silesian mining struggles in Europe not only to carbon Russian, Kazakh, American or Colombian, but also competes with Bogdanka. As Deputy Prime Minister, is a listed company in difficult conditions has continued to gain, because "there mined coal is not the type of load allowances, charges thirteenth or fourteenth type of salary". Inamorata is a private company.

Piechociński added that this year the average loss per ton of coal mined increased from 21 to 37 zł zł. "Therefore, without holding the hard costs, without rationality, as in every mine, every group of mines, it is very difficult to find an effective response" - he said.

"Before us are two lean years for mining, because it does not look for it to steam coal and coking coal (...) came out of the lowest in the history of the last ten years the price" - he said. Therefore - as he said - an inter-team analyzes the situation in the mining and recovery programs of management of coal companies. He added that the union will be presented concrete, rational program to improve the situation in the sector. "He also requires rationality on the side of employee representatives" - he said.

November 18 will convene a special team. Coal mining. Prime Minister Ewa Kopacz announced on Thursday that it will demand from the team information in connection with the situation in KW. On the same day met with some members of the team to discuss the situation in the mining industry

It's about an interdepartmental team. The operation of Coal Mining in Poland, who was appointed in May by the Prime Minister. It is composed of representatives of the Ministry of Economy, the Ministry of Labour and Social Policy, Ministry of Finance, Ministry of Infrastructure and Development, the Ministry of Treasury and the Office of the Prime Minister.

The team is a subsidiary body of the Council of Ministers, and its main tasks are: to analyze the functioning of the sector, updating the concept of development and enhance its competitiveness, developing the concept of a wider use of energy from coal in order to increase the energy security of Polish and prepare recommendations for further action aimed at improve the functioning of the sector, including its restructuring.

On Thursday, Minister for the Treasury Minister Karpinski reported that a team looking for solutions, "which will lead to the fact that urentowni the activities of these companies (coal), works all the time." "This failure (in obtaining financing by the Coal Company) is a very strong signal to the market that the current restructuring measures are not sufficient, so surely the situation is quite fresh," - said the head of the Treasury during Thursday's conference in BGK.

According to earlier information from KW project's rehabilitation program for 2014-20 envisaged, inter alia reduce costs, concentration of production in plants of high profitability, change in sales policy, the implementation of restructuring programs for individual companies as well as obtaining the necessary funds to finance the company's operations.

Among them was found to issue Eurobonds. According to earlier information PAP KW intended to sell five-year bonds worth $ 500 million. Company authorities recognized that eurobonds issue due to the urgent need to supply funds.

In recent months, the Coal Company faced the specter of bankruptcy. As reported in mid-September, the president of KW Mirosław Taras, of the 14 mines its profitability remained three. Profit after six months was minus 342.3 million zł, compared to 228.7 million zł loss the year before. The difficult situation also applies to other mining companies. (PAP)