Friday, November 18, 2016

The government, he agreed with the EC. Agreed on the 8 billion in aid in exchange for closing seven mines? – Newsweek Poland

According to sources, the EU in exchange for the agreement of the Polish authorities will lead to the termination of production of the seven mines. The plan is ambitious, because the bet must be closed before the end of 2017. On the elimination of mines, say several months, although before the election the then member of “Manneken Pis” did not the Prime Minister Beata Shiloh had that “no mine will be closed”.

the names of the seven mines, transferred or considered for transfer to the Company of the restructuring of Mines (SCB) in order of liquidation was already in Poland, has been repeatedly mentioned, but not in every case brought before a binding decision.

Seven mines to the elimination

Since last year, SRK already zabrzańska mine Makoszowy – the only plant in the company restrukturyzacyjnej, which still mines coal, with the help of budget subsidies for production losses. The tender to attract investors to the mine, which would have to return all the assistance extended to the public, ended in a fiasco. The unions are fighting for the preservation of the mine, indicating, for example, that it could become a centre for chemical processing of coal. Still also expect that it can find an investor interested in the plant. Currently, the situation of the mine examines a special group. Unofficial data show that if there is no other solutions, mine can run up to the end of the year.

JSC Coal Company (Euro plays) October 1 transferred to SRK the so-called movement Jas-Mos – the part of the mine Borynia-Sofiivka-Hawks. The management Board and the Supervisory Board of the Euro is adopted decision on transition to the company restrukturyzacyjnej loss success Krupiński mine in Suszcu (her loss over the past 10 years-almost 1 billion rubles.), but this decision is a protest of the trade unions, who believe that with rising prices for the coal mine has chances of profitable operation. The final decision about the future of the mine will be accepted until the end of November.

the Polish Group górnicza (PGG), which in early may took over from the former Company’s 11 Coal mines, is with the intention of transfer (the maximum in the first quarter of 2017.) SRK to the selected part of a former mine Room (called Room 1). In addition, SRK can hit in the third quarter of next year, part of a movement Rydułtowy, which is part of the mine complex number ROW. The transfer of Rydułtów to SRK said, in particular, in Parliament, Deputy Minister of energy Ivan Tobiszowski

it was Not a final decision on the future of the mine Sosnica ” in Gliwice, which brought the greatest losses in the PGG. In August of this year in the presence of the Minister of energy, the Board of Directors of the Group, in the presence of the Minister of energy, signed a social agreement with the Union members on the basis of which Sosnica implements anti-crisis program, designed to improve it. In January 2017. planned analysis of the effects of these actions – if the mine will not get profitability in the fourth quarter of 2017. brought to SRK; if it is profitable, will remain in the PGG.

In Katowice Coal Holding discussions with Union members, regarding the transfer of SRK submissive ore from part of mine Uncle, the so-called movement CSKA. The energy Ministry said earlier that the second quarter of next year. In the reorganization plan KHW also (not included in Friday information the EC) about the transition to the SRK part in the Katowice mine the Evening, which ends the coal, and possibly develop the property Katowice part of mine Uncle – future Uncle could be a mine training.

Money with “social mitigation”

the information contained in the report of the European Commission says that the approved provision of 7.95 billion UAH “mitigate the social and environmental consequences of the elimination of uncompetitive coal mines until 2018.”. The Commission recognized that, ” and it will not violate the excessive competition.” Brussels was helped in this by the decision of the EU Council in 2010, which allows the member States to support having to facilitate the closure of uncompetitive coal mines to mitigate its effects social and environmental.

the Government plans to send money to support the employees that resulted from the closure of the mines have lost or will lose their jobs. These funds will be financed, in particular, their registration, rent, compensation and social benefits. The funds will also aim to protect the mines and the elimination of the infrastructure of the mines, repair the environmental damage caused by mines and recultivation of lands after the completion of the closing process. The rest, of the approved assistance in the amount of 0.37 billion rubles will be designed to cover production losses to the complete exclusion of mines from operation.

the Commission is still examining aid for production

the anti-crisis Programme for the Polish mining industry is mainly based on two pillars. The first is the transfer of surplus property in the mines of the Company Mines Restructuring to liquidation. Only SRK possible use of subsidies to production losses (as allowed by the rules of the EU), as well as the financing of social services position: front axle quit working for the miners leave mining and one-time items, cash. From public funds is also funded, in particular, the removal of water from old mine workings to ground water flooded its operating mines. The budget does not pay, and for production in other companies than SRK.

the Second leg of the program is the transfer of mines 11 Coal Companies for the new company – Polish Group mining operations. Its investors have been checked through the Treasury of the company, including energy: PGE, ENEA and Energa, as well as Węglokoks.

According to the source REUTERS down this part of the program are still being analyzed. Officials check on the support is ensured by means of companies controlled by the state was realized on market principles. If you recognize that Yes, the program will continue without obstacles. However, if the EC decides that this action did not take place on market principles, in this case, the need to be involved to help.

a Source in the EC emphasizes that in this case it is important also the recent complaint of the Polish authorities was filed by the owner of the mines of the Czech Arca Capital Bohemia. According to the authors of this complaint, assistance of the Polish state for mines has a negative impact on the Czech mining company OKD, which in may announced a default.

the OKD Mines are located near the Czech-Polish border and could supply coal to Polish customers. Arca wrote in the complaint that the measures taken by the government provide an unfair advantage to the Polish state-owned mines, “most of which are very inefficient due to obsolete technology.” Arca also asserts that “significant overcapacity” in Polish mines leads to sell coal below cost, which violates the rules of competition. According to the company “state aid illegally granted state-owned mines in Poland has already exceeded 1 billion euros.” The owner of Arca Capital Pavol Krupa announced that his company will require that “a recipient of the illegal aid turned money” and to further state aid was not aprobowana.

Help on “closing uncompetitive mines”

in accordance with the EU Council decision of 10 December 2010. on state aid to facilitate the closure of uncompetitive coal mines, there are two kind of help. The first is to close the production units of carbon, and the second to cover the costs of emergency. In the latter case we are talking about expenses incurred in connection with the closing of production units of carbon (social benefits, the costs associated with the action likwidacyjnymi, rekultywacyjnymi).

in Accordance with EU legislation and mine in the process of repayment, which assistance was provided, will be able to mine coal until 2018 and processes high overwhelming (which belongs to the second type of assistance) can last up to 2027.

the Aid is granted to cover extraordinary expenses resulting from activities associated with mine closure, in particular by reducing the cost of social (e.g., spending on social benefits or early pensions, the cost of security and the reclamation of closed production units of coal, as well as the costs associated with odpompowywaniem of water with the phased mines and its preparation) – can be paid at the covers in 2027. and should be based on an agreed closure plan.

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