The Ministry of State Assets has made an offer to the Tauron Group to purchase the Sobieski, Janina and Brzeszcze mines concentrated in the Tauron Wydobycie company for a symbolic zloty, Tauron informed. Earlier, the State Treasury bought shares of Polska Grupa Górnicza from shareholders in a similar manner.
“The value of the Treasury’s offer, estimated at a symbolic zloty, results from valuations that take into account both the current condition of the mines and the financial needs of mining plants in the long perspective of their operation, consistent with the government plans” – said Jacek Pytel, president of Taurona Wydobycie, quoted in the Group’s communications.
Tauron Wydobycie is the largest producer of steam coal in Poland after Polska Grupa Górnicza. It deals with the extraction, enrichment and sale of hard coal in the following mines: Sobieski in Jaworzno, Janina in Libiąż and Brzeszcze in Brzeszcze. The company has the largest reserves of thermal coal in Poland.
The offer for the purchase of mining assets submitted by the State Treasury is a significant step in the implementation of one of the most important structural processes implemented in the Tauron Group in recent years – Paweł Szczeszek, president of Tauron, assesses.
The State Treasury’s offer concerns the purchase of 36,051,078 shares in Tauron Wydobycie, currently owned by Tauron Polska Energia – the leader of the Tauron Group. It’s 100 percent. the company’s mining shares.
Simultaneously with the preparations related to the separation of mining assets, Tauron is preparing to separate the production assets based on coal for the future National Energy Security Agency (NABE).
The offer to buy back the mining assets of Tauron by the State Treasury is the next step in ordering the ownership structure of the hard coal mining industry in the context of the public support program for this industry, which has been implemented since this year. Earlier, the State had already bought blocks of shares of Polska Grupa Górnicza (PGG) from companies controlled by the State Treasury, paying PLN 1 for each stake – a total of PLN 7.
On August 3, 2022, it was announced that ECARB (a subsidiary of Energa), PGNiG Termika from the PGNIG Group, PGE Górnictwo i Energetyka Konwencjonalna from the PGE Group, Enea, Polski Fundusz Rozwoju, Towarzystwo Finansowe Silesia and Węglokoks had sold their holdings of PGG shares. As the value of the investment in the mining company was zero in the financial statements of energy groups, the transaction had no effect on the results of the listed companies.
It was decided that the State Treasury would become the direct owner of all shares in PGG, Taurona Wydobycie and Węglokoks Kraj over a year ago, shortly after signing the Social Agreement on the pace and principles of mining transformation. At that time, the mechanism of budgetary subsidies to reduce the production capacity of mines was defined, which was successfully implemented at the beginning of this year, covering these three companies. The Ministry of State Assets decided that mining companies benefiting from public support should be concentrated in one state hand.
The advantage of Tauron Wydobycie is the production of fuels with a low chlorine content, which are necessary for modern, low-emission power units. “The company thus ensures safe supplies of fuel for the power plants and CHP plants of the Tauron Group, and offers individual customers high-quality coal fuels for heating, including eco-peas” – informed Tauron.
In the first half of 2022, coal production in the Tauron Group’s mines amounted to 2.71 million tonnes and was similar to last year’s, while coal sales increased by nearly 18%, to 2.77 million tonnes. Tauron covered almost two-thirds of its demand with raw materials from three of its own mines.