Polish Mining Could Soon Run Out of Money. "The Situation Will Become Catastrophic"

• Polska Grupa Górnicza is in a difficult situation.
• The company's biggest problem is falling revenues.
• Unfortunately, cost optimization does not compensate for the decline in prices and the reduction in coal sales volume.

- In order to lead the company through the difficult process of transformation, we need a tool in the form of an amendment to the act on the functioning of mining. Using a metaphor, we need the act to live like oxygen - emphasized Łukasz Deja, president of the board of Polska Grupa Górnicza in an interview for WNP.

- We must therefore have "oxygen", which this act is for us, so that the company can continue to function - diversifying its activities, transforming its assets. So that it can use the potential of its employees and, on the other hand, enable those who want to change the industry to take advantage of protective programs, such as the Voluntary Leave Program - Łukasz Deja noted.

Polish mining must have a plan for functioning in difficult conditions

- The WNP portal has published an important interview with the new president of Polska Grupa Górnicza, Łukasz Deja, who raises extremely important issues that constitute opportunities and threats facing Polska Grupa Górnicza and the entire mining industry in general - emphasizes Bogusław Ziętek, head of the Sierpień 80 trade union, in an interview with WNP.

- Given the obvious drastic drop in extraction and the deepening lack of raw material collection from energy companies , Polska Grupa Górnicza and other coal companies must have a ready plan for functioning in these extremely difficult conditions. An element of this plan is a change to the act on the functioning of mining, which will include tools allowing for voluntary resignations of miners from the profession and the liquidation of mines by coal companies themselves - adds Ziętek.

It draws attention to an important issue on which much will depend.

This amendment must enter into force before the end of this year. Not in January 2026, when certain deadlines will already be delayed, but in September-October 2025 at the latest. If the commitment that this act will go to the Sejm in June and be quickly processed is not kept, our union will start protest actions, because it will mean that at the turn of the year the mining industry will run out of money - emphasizes Bogusław Ziętek.

At the same time, he points out that it is not possible to maintain the same number of mining crews as in the times when, for example, Polska Grupa Górnicza extracted over 30 million tons of coal.

"The provisions of the amendment to the act must enter into force as soon as possible, because if not, the situation will become catastrophic"

- This year the company will extract 15 million tons and sell even less - Ziętek assesses. - I do not understand at all why the government is causing such a delay in adopting this simple amendment, since the liquidation processes are already underway and a large group of miners and processing workers have declared their readiness to leave under the voluntary redundancy program. This is why situations such as the current one at the Bobrek mine belonging to Węglokoks Kraj arise, where a group of about 250 miners could already find employment in other mines - for example, Polska Grupa Górnicza - the unionist points out.

- But the matter is complicated by the fact that the provision allowing the transfer of employees between entities receiving public aid is still not in force. We have no reason to wait. The provisions of the amendment to the act must enter into force as soon as possible, because if not, the situation will become catastrophic . And the mining industry, including Polska Grupa Górnicza, will not have funds not only for functioning, but also for employee salaries - warns Bogusław Ziętek.

According to Ziętek, another urgent issue is the consolidation of thermal hard coal producers receiving public aid.

"It is unacceptable to tolerate mutual competition between companies extracting thermal coal"

- In the current conditions, when the energy sector is still not receiving our coal, when huge amounts of the raw material are still being imported to Poland and when the government and the European Union are hitting the mining industry with subsequent actions, such as the act on coal quality standards or the methane regulation - consolidation is a requirement of the time - says Ziętek.

In his opinion, it is unacceptable to tolerate mutual competition between companies extracting thermal coal.

- This is because it is causing a drastic drop in the price of this coal in relation to the energy sector - he emphasizes. - It is also completely incomprehensible why each of these companies separately - Polska Grupa Górnicza, Południowy Koncern Węglowy and Węglokoks Kraj - should build structures dealing with the liquidation of mines that belong to these companies. And processing funds received as part of public aid, whether for liquidation or for voluntary redundancy programs - emphasizes Ziętek.

He also indicates the actions which, in his opinion, should be taken.

- The relevant ministry, i.e. the Ministry of State Assets or the Ministry of Industry, should have commissioned an analysis of the benefits resulting from such consolidation a long time ago - our interlocutor believes.

- If I were the Minister of Finance, I would demand that such a direction be implemented, because consolidation undoubtedly means hundreds of millions of zlotys in savings, and therefore it would mean lower subsidies from the state budget. And these in 2026 will be record high and will far exceed the amount of PLN 12 billion. I do not understand why the government is crying that so much has to be paid to the mining industry, and at the same time they are doing nothing to reduce these subsidies - concludes Bogusław Ziętek.