On Friday, Poland’s Deputy Minister of State Assets Artur Sobon expected that for 2021, the country’s coal demand would fall by more than 10% of its annual production or roughly 7 mt, following a drop in demand for electricity.
Poland’s coal mining faces a difficult time as burning coal has become more expensive on the back of the increasing prices of carbon emission permits. The country, which generates most of its electricity from coal is also struggling with the falling demand of the commodity due to the coronavirus-related lockdown.
Sobon expected this to be a sustained trend.
The country’s major coal producer, state-owned PGG, said that it has to adjust its output with the domestic demand as there are no new markets for its products. The firm is estimated to slash its 30 mtpa output this year.
It did prepare a restructuring plan which included the closure of two of its coal mines, but in July, the plan was rejected by trade unions. At the moment, the government, PGG and unions have been working on a new restructuring scheme.
