https://www.miningweekly.com

EU's biggest coal-mining nation plans output hike to cut imports

5th October 2018

By: Bloomberg

  

Font size: - +

WARSAW – The biggest coal producer in the European Union plans to boost output of the dirty fuel by about 10% in the next several years to cut down on imports, which are set to jump to a record this year, according to the Polish government.

The country, which saw its thermal coal output slumping 7% to 53-million tons last year and pledged to fight smog, should raise output by five- to six-million tons by the middle of the next decade, Deputy Energy Minister Grzegorz Tobiszowski said on Thursday. Imports, mostly from Russia, are expected to increase to a record 17-million tons this year from 13.3-million tons in 2017, according to state-controlled trader Weglokoks.

“High import means there’s a big market for coal in Poland,” Tobiszowski told reporters in parliament. “Import is important, but we want to replace part of it, as current levels are worrisome.”

While Poland seeks to make good on a promise to add more renewables, gas-fired and nuclear power capacity in the future, developing unstable energy sources isn’t possible without forging an an“alliance” with coal, which will always remain a back-up, he said.

PRIVATE PARTNERS
Tobiszowski argues his announcement isn’t against the government plan to cut the share of coal in the country’s energy mix to 50% in 2040, compared with 80% at the moment. Higher output will partially replace import, but also help meet rising demand for electricity.

The deputy minister projects Lubelski Wegiel Bogdanka, controlled by State-run utility Enea, could raise coal output by as much as two-million tons already in two years from about nine-million tons, while PGG – the EU’s largest coal producer – will need more time to increase production by as much as four-million tons from current 31-million tons.

To meet those ambitious targets at a time of rising coal prices and solid demand, the government envisages a more significant role for private mining investors, such as Australia’s Prairie Mining, which runs a coal mine project near Bogdanka, as well as state-controlled coking coal producer JSW.

“Prairie should be a partner for JSW or Bogdanka -- not the enemy,” Tobiszowski said. “The situation on the coal market shows that building a new mine makes more sense now. Private investors have a bigger chance now than ever for achieving their goal.”

Edited by Bloomberg

Comments

Showroom

Alco-Safe
Alco-Safe

An unmanned breathalyser that is made to be tough and simple to use. Can be used in any environment for operator-free breathalyser testing.

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.096 0.131s - 90pq - 2rq
Subscribe Now