Polish Mining Group Raises Selling Coal Prices

MOSCOW, September 9 — PRIME. The Polish Mining Group (PGG) has raised coal prices for customers by 20%, the company said in a statement.

In April, Poland completely banned the import of coal from Russia, which had a dramatic impact on the availability of coal on the market and on its price. The cost of a ton of coal from private suppliers reaches 3,000 zlotys (about $640). The Ministry of Climate and Environment of Poland in the current situation in early July canceled for 60 days the requirements for the quality of coal used for heating.

“In response to exceptional demand in the coal market, the Polish Mining Group has decided to increase production next year. To do this, it must incur additional investment costs, which, among other things, leads to a correction in fuel prices in the PGG online store by about 20%,” — the message says.

PGG currently offers coal to individual consumers at prices ranging from PLN 1,420 to PLN 1,770 per tonne ($302 to $376), depending on grade and packaging.

It is also noted that in order to increase production, PGG has begun an investment process that will primarily focus on “creating 13 kilometers of additional workings that open coal seams and expanding existing production fronts.”

“To implement these plans, PGG’s capital expenditures should increase by about PLN 2 billion (about $425 million) compared to previously forecast levels,” the statement said.