Economy Journal Online: Polish Mining Group will connect the mines to improve their efficiency

Friday, May 20, 2016

Polish Mining Group will connect the mines to improve their efficiency – TVN24 BiS

From the beginning of July, Poland Mining Group (PGG) connect with each selected mines – from the current 11 to remain five so-called. mine complex. PGG President Tomasz Rogala ensures that the change in the sign will follow specific changes in management, to improve efficiency in the mines.

– Create mine complex will be one of the most difficult processes, we intend to carry out in the near future. In the sphere of governance will be a fundamental change in the approach, in which the most important is the awareness that the mine has as much money as earn – and only within that can move in the area of costs – said the PAP chairman of PGG Tomasz Rogala.

the business plan

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he recalled that one of the main goals of the business PGG, which took over from the beginning of May Coal company mines, a further cost reduction of the company to the end of next year it could cease to generate losses. This requires inter alia reduce the cost of extracting tons of coal by a further ten percent, with more than 250 zł up to approx. 214 zł per tonne.

– The main source of savings must be optimization of production; It’s mainly about the constant attention to all purchases and investments were targeted at the most profitable product groups; to invest in such deposits and the places where we achieve the expected economic effect – explains the chairman of PGG.

Five mines

According to the agreement closed with the social side before the appointment PGG, from July 1 11 existing mines to remain five: Bielszowice-Halemba-Room in Ruda Slaska, Piast-Ziemowit in Bieruń and Lędziny, Marcel-Chwałowice-Jankowice-Rydułtowy on earth Rybnik, and Boleslaw the Bold in Łaziska Upper and Sośnica in Gliwice – the latter mine last year brought more than 120 zł losses for each tonne of carbon – the highest in the company.

– Creation of a mine complex has ultimately lead to a significant reduction in operating costs and optimize the organizational structure of the company. We need to adjust costs to a level that was covering revenue, meet the assumptions of the business and provide a return on investment – Rogala said.

Who will gain?

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As told in the old structure Coal Company mines were also awarded at a loss if achieve economic indicators in line with forecasts – even if the generated predicted earlier loss.

– this was a task perception of the mine; if the tasks were completed, despite the negative results was the basis for the premium on all positions. It is fundamentally wrong assumption from which we depart for the resulting perception of and accounting for mine complex – said the president.

Changes

As a result, heads of mining complex will be responsible for it, to adjust the organizational structure, cost and functional facility to ensure that the costs were covered by revenues from coal sales. “You need the awareness and responsibility of the mine complex,” – said Rogala, indicating that it is at the level of the management of the mine decisions are made, eg. The need for the employment of external companies, the purchase of materials or certain machines.

President PGG declared that the results of the mines will analyze the team, which will include representatives of the social side – that she had full knowledge of the progress of restructuring and the results of mine.

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– the idea is that together, we keep watch ago whether we are able to achieve positive results in the mine and what time, or what we need to do to achieve them. Based on this we will make decisions on individual assets in the future – said Rogala, when asked about the future of plants that despite the restructuring will continue making losses.

Salaries

– In relations with the social we must end the mutual perception of the principle of “we and you”, but act in the name of the common good employees. Therefore, we ask the question – is it better to work poorly in a company employing 34 thousand. people, or perhaps in the process of gradual optimization company to reduce employment, but work with higher wages and more efficiently – summed Rogala.

Mines PGG extract approx. 28 million tonnes of coal per year; the company employs approx. 32.5 thousand. employees. The mining area of mines PGG is a 465 km sq. In nearly 40 municipalities, a so-called. operative, that is possible to provide potential and mining, coal reserves are estimated at 1 billion 313.6 million tons. The average life of mine is 35 years – to make it longer, you need to invest in new deposits.

The mines PGG work an average of 34 wall mining; the average depth of exploitation is almost 730 meters, and the deepest parts of decks are more than 1,100 meters underground. Mines benefit from 62 wells. Underground working 24.8 thousand. miners.

included with the union agreement provides that in this and next year the company can voluntarily go approx. 4 thousand. people who benefit from social protection. With the work has to leave the approx. 600 people with pension rights. The shutdown process of the production of unnecessary portions of the property will be – as reported by the president – “dynamic and adequate to the situation.”

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