Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Coronavirus pushes Big Coal closer to collapse
Coronavirus pushes Big Coal closer to collapse
Unions are balking at cost-cutting measures that Europe’s largest coal mining company PGG says are needed.
By WOJCIECH KOŚĆ 5/5/20, 2:03 PM CET Updated 5/6/20, 1:40 PM CET
Europe’s largest coal mining company is facing numerous challenges | Sean Gallup/Getty Images
WARSAW — Poland’s leading coal mining company has halted production at two of its mines for two weeks because of the spread of coronavirus among at least 240 of its workers.
It's just the latest blow for Polska Grupa Górnicza (PGG), Europe’s largest coal mining company, which is reeling from plummeting demand for coal from Polish power plants, rising mining costs, the expansion of renewables, increasing foreign competition and a clash with its powerful labor unions.
In a sign of its troubles, late last month the Agia Trias bulk carrier carrying some 140,000 tons of coal from Colombia arrived in the Polish port of Gdańsk. It makes more economic sense for Polish utilities to import coal from across the Atlantic than across the country.
The Colombian shipment was reportedly contracted by Poland’s biggest power company, state-owned PGE, which paradoxically has a 15 percent stake in PGG. In 2018-2019, Poland imported some 35 million tons of coal, around a quarter of domestic output during that period, according to an analysis by the Polish energy website Wysokie Napięcie.
Already ailing, PGG is being hammered by the coronavirus. The government in March locked the country down to contain the spread of the disease, a step that caused energy demand to fall by an annual 13 percent. In response, PGG aimed to cut work hours and pay by 20 percent for three months and freeze investment to qualify for the government’s “anti-crisis shield,” an economic relief and stimulus package.
{snip}
Unions are balking at cost-cutting measures that Europe’s largest coal mining company PGG says are needed.
By WOJCIECH KOŚĆ 5/5/20, 2:03 PM CET Updated 5/6/20, 1:40 PM CET
Europe’s largest coal mining company is facing numerous challenges | Sean Gallup/Getty Images
WARSAW — Poland’s leading coal mining company has halted production at two of its mines for two weeks because of the spread of coronavirus among at least 240 of its workers.
It's just the latest blow for Polska Grupa Górnicza (PGG), Europe’s largest coal mining company, which is reeling from plummeting demand for coal from Polish power plants, rising mining costs, the expansion of renewables, increasing foreign competition and a clash with its powerful labor unions.
In a sign of its troubles, late last month the Agia Trias bulk carrier carrying some 140,000 tons of coal from Colombia arrived in the Polish port of Gdańsk. It makes more economic sense for Polish utilities to import coal from across the Atlantic than across the country.
The Colombian shipment was reportedly contracted by Poland’s biggest power company, state-owned PGE, which paradoxically has a 15 percent stake in PGG. In 2018-2019, Poland imported some 35 million tons of coal, around a quarter of domestic output during that period, according to an analysis by the Polish energy website Wysokie Napięcie.
Already ailing, PGG is being hammered by the coronavirus. The government in March locked the country down to contain the spread of the disease, a step that caused energy demand to fall by an annual 13 percent. In response, PGG aimed to cut work hours and pay by 20 percent for three months and freeze investment to qualify for the government’s “anti-crisis shield,” an economic relief and stimulus package.
{snip}