Energy – coal. PGG is increasing coal prices

Polska Grupa Górnicza increased and unified coal prices for individual customers. The increase is on average around 20 percent. The company justified this step with a drastic increase in production costs and the need for investment.

PGG announced on its website that due to the significant increase in production costs and the need for investment activities to increase the production of fuel coal, the company has harmonized the selling prices for individual coal grades in all mines from Tuesday.

An increase of 20 percent

Until now, the prices of the same assortments of heating coal in individual mines were different. After the change, the average price of heating coal in PGG is to be approx. 1.2 thousand. PLN per ton (compared to about PLN 1 thousand so far). The prices of coal from PGG mines are still to be among the lowest on the market.

“The necessity to harmonize coal prices for households at PGG SA was forced by the drastic increase in production costs from the beginning of 2022. The steel necessary in mines to reinforce workings has jumped in price on the market (the company will pay for it as much as 78% more than before Electricity and fuel are also much more expensive, as well as services for mining plants “- stated in the company’s announcement.

According to technical and economic forecasts, PGG’s expenses this year will be PLN 2.4bn higher than in the previous year. The company will also incur significantly increased expenditure on investment activities necessary to increase the production and sale of heating coal for the municipal and household sector. PGG will spend over PLN 1.12 billion more on investments than in the previous year.

The company’s online store will remain the main sales channel for heating coal for households, where over 170,000 people have been supplied with fuel since the beginning of the year. customers. So far, nearly 700,000 households have reached households through the e-store. tons of coal. The sales system at PGG is to be improved and expanded. Coal is sold in the PGG online store on Tuesdays and Thursdays.

PGG is the largest coal producer in the European Union, and the social agreement for the mining industry signed in May last year set a path for extinguishing its mines by the end of 2049. In the next 12-13 years, PGG, which this year is to deliver over 23 million tonnes of hard coal, it would reduce the extraction of this raw material by half – according to the company’s information from the beginning of this year, since February it has benefited from budget support for reducing production capacity.

Main photo source: Shutterstock

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