LW Bogdanka prolongs the contract on coal supply to Połaniec Power Plant

LW Bogdanka, the most modern and most efficient bituminous coal mine in Poland, incorporated under Enea Group, one of the leaders of the Polish power market, signed an annex to the contract with ENGIE Energia Polska, relating to the supply of steam coal for consumption by ENGIE’s Power Plant in Połaniec.  

As a result of the annex conclusion the term of the contract is prolonged until the end of 2021 (previously the contract’s term was until the end of 2019). The contract thus currently includes supplies of steam coal during 2013-2021.

The annex specifies also steam coal supply conditions for the needs of the buyer during 2017-2021, quantitative volumes for particular years of the contract’s term, coal price for supplies in 2017, defines the pricing formula for the period of 2018-2020 and specifies the method of price determination for 2021.

The value of the whole contract after the annex conclusion is estimated at PLN 3.399 billion net and is higher by 8.8 per cent than the previously biding price.

Prolongation of the contract for coal supplies to Połaniec Power Plant until 2021, after the extension of the scope of cooperation with Enea Group, further increases the long-term mining security in LW Bogdanka. This, in turn, will facilitate long-term production planning and will be positively reflected in our cost position, which is particularly important in the current complex situation on the Polish coal market. Our goal is to remain the most efficient and most modern bituminous coal mine in Poland – said Krzysztof Szlaga, President of the Board of Lubelski Węgiel Bogdanka.

Lubelski Węgiel Bogdanka is the most modern and one of the largest bituminous coal mine in Poland. In 2015 Bogdanka’s production of commercial coal totalled to 8.5 mln tonnes.