JSW to buy Knurow-Szczyglowice mine from troubled peer
April 11, 2014
Coal miner JSW signed a preliminary binding deal to buy Knurow-Szczyglowice coal mine from Kompania Weglowa for PLN 1.49 billion, JSW said on Thursday.
Parkiet daily had earlier reported that Kompania Weglowa has no sufficient means to pay out wages for March and the management counts on cash injection from JSW.
The mine has production capacity of 3.8 billion tons of coal, including 40% of coking coal. The mine has total reserves of 1.26 billion tons, operational reserves of 375 million tons, including 119.7 tons covered by current concessions. The reserves should allow for operating of the mine for 80 years, the filing read.
The deal is subject to a number of conditions, including a consent by antitrust body UOKiK, securing financing by JSW.
JSW said it would seek external financing for the deal. The mine also requires some investment, mostly in coal processing plant, to increase the share of coking coal in the output, officials said.