Poland rejects Lubelski Wegiel Bogdanka’s plan to expand coal mining operations

8 September 2014 (Last Updated September 8th, 2014 18:30)

Poland has rejected a proposal from coal mining company Lubelski Wegiel Bogdanka to expand its coal mining operations and double reserves.

LWB

Poland has rejected a proposal from coal mining company Lubelski Wegiel Bogdanka to expand its coal mining operations and double reserves.

In July this year, the company announced its plans to double its recoverable coal reserves from the current 235 million tonnes (Mt) and extend the mine operating life to 2050, reported Bloomberg.

Bogdanka's operating resources are situated in the Lublin Coal Basin, adjacent to the coal deposits of Australia-based Prairie Mining, which in 2012 received permission from the Poland's environment ministry to explore the area.

According to the environment ministry, accepting the Bogdanka plan could put them at risk of breaching the investment protection agreement signed with Prairie Mining.

"Our priority for the upcoming months is the launch of the mechanical processing plant, which is about to commence."

In April, Prairie announced plans to begin production at the Lublin fields in 2020, producing around 7Mt of coal a year and employing around 2,000 people.

Lubelski Wegiel Bogdanka CEO Zbigniew Stopa plans to approach the government to reconsider its request for new mining licence in the K-6-7 field.

Located in the east of Poland in Puchaczów, Lublin Voivodeship, Lubelski produced 4.25Mt of commercial coal in the first half of the year, up by 4.2% compared to last year's figures.

Lubelski Wegiel Bogdanka management board president Zbigniew Stopa previously said that: "Our priority for the upcoming months is the launch of the mechanical processing plant, which is about to commence.

"This launch will enable us to produce better quality coal from the fourth quarter onwards, which should boost our financial results. We are also preparing to install the third ploughing system which has already been delivered and is to be launched in the third quarter of this year."


Image: The Lubelski Wegiel Bogdanka mine is located east of Poland in Puchaczów, Lublin Voivodeship near Warsaw. Photo: courtesy of LWBogdanka.

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