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Poland's JSW buys coal mine for PLN 500 million

Coal News - Published on Sun, 13 Apr 2014

Reuters reported that Poland's JSW, the biggest coking coal producer in the European Union, agreed to buy coal mine Knurow Szczyglowice from the Kompania Weglowa mining group for PLN 1.49 billion.

JSW said that Knurow Szczyglowice had an output of 2.04 million tonnes in the H1 of 2013, an amount equivalent to one third of JSW's total production of 6.84 million tonnes. JSW has earlier said it would use debt to finance the purchase. Both state controlled companies are suffering from record low coal prices as an economic slowdown has forced their clients to cut production.

Some analysts have said the deal may deplete cash reserves at JSW, which expects to close this year with a loss. From the beginning of the year JSW's market capitalisation has fallen by more than 13% to USD 1.79 billion.

Source – Reuters

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Posted By : admin on Sun, 13 Apr 2014
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