Audit points to problems in Poland’s biggest miner
PR dla Zagranicy
Roberto Galea
17.03.2016 18:15
An audit of Kompania Weglowa (KW), Poland’s biggest mining company, has said there is a need for cost cutting, adding that there are several mines which are running at a loss.
East News
The audit of the firm, which operates 11 mines, pointed to problems including low productivity, high outsourcing costs, a lack of price elasticity in the sale of coal, high administration costs, and unreliable coordination in production planning.
A team of experts headed by Senator Adam Gawęda analysed the situation of individual Kompania Węglowa mines in detail, as well as the practices of the company in terms of production, sales, investment and employment.
The audit, which was requested by the Energy Ministry, pointed to a number of causes and events which have led to the current "very difficult" situation of the company, a KW statement on Thursday said.
In 2012, Kompania Węglowa recorded a profit of PLN 170 million, only to register losses of PLN 700 million (EUR 160 million) a year later.
The company saw losses of nearly PLN 2.4 billion (EUR 0.56 billion) in 2014. The company ended the first quarter of 2015 nearly PLN 750 million (EUR 176 million) in the red. (rg/pk)