Polish Mining Group established

Polish Mining Group [Polska Grupa Górnicza] is a competitive entity which will implement new coal technologies and investment projects. An economic entity in which we will combine the Polish technical and engineering thought – Prime Minister Beata Szydło said. On Tuesday, in the presence of the head of the government, the representatives of the mining and energy companies, as well as banks and financial institutions signed in Katowice the agreement on the beginning of activity of Polish Mining Group (PGG).

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Photo: P. Tracz / Chancellery of the Prime Minister

It’s a historic moment for the Polish mining sector and a symbolic launch of a company which is expected to be the biggest hard coal producer in the EU. I’m really satisfied that we have kept the word given to Upper Silesia during the election campaign – Prime Minister Beata Szydło emphasised during the ceremony at which PGG was officially established. The head of the government pointed out that the establishment of the Polish Mining Group involved many people, who demonstrated great responsibility. I want to thank everybody who sat at the table and conducted the difficult talks for many months – Prime Minister Szydło told the miners, minister and vice-minister of energy, trade union headquarters, social side and investors. She added that the agreement signed on Tuesday will not solve the problem in Silesia, but is the beginning of the road.

Miners’ responsibility

Miners wanted to be constructive creators of the agreement, which offers an opportunity for their region, for their industry and for their families. You have taken on the responsibility for what will happen to the mining sector in the nearest future – Prime Minister Beata Szydło thanked in particular the miners. At the same time, she added that Polish Mining Group is expected to be a modern and well-managed company which generates profit. A company with good prospects. In order to achieve that, we need responsibility – the prime minister emphasised.

Shared goal: development of the Polish economy, Silesia and mining sector

The head of the government pointed out that what is the priority for all parties which signed the agreement is the common good, i.e. development of the Polish economy. For this reason, the government proposes modernisation of the mining sector, making necessary investment in mines, and looking for new markets. It’s an ambitious goal, but possible to achieve. There are ambitious people who will achieve it – Beata Szydło said. PGG is expected to be a strong entity which will be the basis of the Polish energy sector. Thus, we go towards improving Poland’s energy security – the prime minister concluded.

Launch of the Polish Mining Group

The agreement signed on Tuesday in the presence of Prime Minister Beata Szydło, Minister of Energy Krzysztof Tchórzewski and Vice-Minister of Energy Grzegorz Tobiszowski, with the participation of trade union members from Kompania Węglowa (KW) opens the way for establishment of Polish Mining Group. The parties to the agreement approved in it the principles of the business plan, and agreed, among other things, to suspend the payment of the annual bonus - the so-called 14th salary - for two years.

The Tuesday agreement is tantamount to approval of the undertaking by the investors, which are expected to contribute capital to PGG, and by the banks which extend loans to KW, e.g. in the form of bonds. In total, the planned value of the capital contributed by the investors is over PLN 2.4 billion, and by the banks, in the form of bonds, over PLN 1 billion.

The signatories of the agreement, apart from the KW and PGG management boards, include the investors:

  • PGE Górnictwo i Energetyka Konwencjonalna,
  • Energa Kogeneracja,
  • PGNiG Termika,
  • Węglokoks,
  • Fundusz Inwestycji Polskich Przedsiębiorstw,
  • Towarzystwo Finansowe Silesia,

and the banks:

  • Alior Bank,
  • Bank BGŻ BNP Paribas,
  • Bank Gospodarstwa Krajowego,
  • Bank Zachodni WBK
  • PKO BP.

The trade union members from KW also signed the document.

See also