Industry sources said that Poland’s state-owned PGG will probably announce the closure of several coal mines along with deep cuts in coal output as part of the country’s plan to sustain coal from being an important energy source for the country.
Two sources familiar with the situation said that the proposal would include the closing of several mines and maintaining only the most efficient ones open. The mines planned for closure will be taken over and gradually being wind down by state-company SRK.
On Tuesday, PGG’s management is scheduled to meet with trade union representatives to present the restructuring plan.
The proposal will also reduce the salaries of workers while miners from the closed mines would be offered substantial severance payments and those close to retirement would be offered paid leave.
According to one source, PGG’s annual output would be cut by more than 10%, but not up to a half. Another source added that the goal might be to phase out coal mines in the Silesia coal region completely by 2036.
