The biggest Polish coal producer comprising of 16 mines, increases investments. It is going to modernize exploration and improve security. On Thursday, a new line transporting coal will be launched in Marcel mine near Rybnik.
“The investment was worth PLN 90m (EUR 25.5m). We estimate the costs will be covered within 4-5 yearsâ€, Zbigniew Madej, KW spokesman said.
On March 10th, the supervisory board accepted the management’s plans for 2008.
“We expect that the company will have a bigger income than in 2007. We don’t give details because you must always provide one-time events in the mining industryâ€, Zbigniew Madej explained.
After the tragedy at Halemba coal mine, the latter had PLN 300m of losses. The whole KW group had PLN 1.7m of net income, against PLN 96m of net loss a year earlier.
KW spent PLN 650m for investment last year. This year, the spending is to grow to PLN 850m. Edward Nowak, KW supervisory board chairman, believes that investment program will amount to PLN 6.5bn till the year 2015. KW hopes for PLN 416m of capital increase from the state. The funds would be spent to pay old debts, including those for social insurance company ZUS. KW management promises to employ 5,700 new workers. Today there are 62,800 miners at KW.
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