MINEX Forum

Region: Poland

  • EIB and EC instruments to support a just transition in mining regions

    EIB and EC instruments to support a just transition in mining regions

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    • The European Investment Bank (EIB), the European Commission and the Silesian Region have held a conference on loan and grant instruments that can be used under the Just Transition Mechanism.
    • This financing can aid public and private investment in regions hardest hit by Europe’s ongoing transition to a climate-neutral economy.

    The Just Transition Mechanism is one of the key elements of the European Green Deal — the European Union’s plan to achieve climate neutrality in Europe by 2050.  The mechanism consists of non-repayable funds (grants) from the first pillar, the Just Transition Fund, as well as repayable and combined instruments from the second pillar, the Just Transition scheme under InvestEU, and funds from the third pillar — the Public Sector Loan Facility. The instruments are supported by a wide range of advisory support.

    Under the Just Transition Mechanism, the European Commission provides support to Member States that have identified territories which are already affected or will soon be hardest hit by the transition to climate neutrality. The Just Transition Fund is the first pillar of the mechanism. It supports the economic diversification and reconversion of areas undergoing transition through, among others: the up- and re-skilling of workers, investment in small and medium-sized enterprises (SMEs), the creation of new businesses, research and innovation, improving the environment, investment in clean energy, job-search assistance, and the transformation of existing carbon-intensive installations.

    The second pillar of the mechanism is the Just Transition scheme under the InvestEU programme. The goal of the programme, thanks to EC guarantees, is to mobilise both private and public investment, characterised by higher levels of risk, in just transition regions. The InvestEU programme focuses on four areas that reflect key EU policy priorities: (a) sustainable infrastructure; (b) research and development, innovation and digitalisation; (c) SMEs and (d) social investment and skills.

    Thanks to an agreement between the European Commission and the EIB, regions most affected by Europe’s transition to a climate-neutral economy will be able to take advantage of the grants and loans available under the Public Sector Loan Facility, the third pillar of the Just Transition Mechanism. This facility aims to support the transition away from fossil fuels in a way that is fair and beneficial to all — including communities whose livelihoods have previously relied primarily on mining or on other industries with a negative impact on the environment.

    The Public Sector Loan Facility allows public entities that plan to implement investment projects in affected regions to benefit simultaneously from EIB loans and EU grants, thereby reducing the financial burden on state budgets. The projects that are eligible for funding are those located in or benefiting territories which, in accordance with the Just Transition territorial plans presented by Member States and approved by the Commission, face the greatest challenges in terms of moving away from fossil fuels and carbon-intensive industries. In Poland, the following districts can expect to receive support under the Just Transition Mechanism: Konin, Wałbrzych, Piotrków, Sieradz, Rybnik, Bytom, Gliwice, Sosnowiec, Tychy, Katowice, Bielsko and Oświęcim.

    The EIB will make available up to €10 billion in funding by 2027 to spur investment to reduce the socioeconomic costs of the transition, thereby facilitating the creation of new businesses, jobs and infrastructure.

    EIB Vice-President Teresa Czerwińska explained, ”Moving away from fossil fuels is essential to curb global warming and should be a priority regardless of the difficult macroeconomic conditions and the war in Ukraine and its aftermath. Funds from the Just Transition Mechanism are meant to streamline this process and to bring financial relief to those EU regions where these funds are needed the most. Several regions in Poland are eligible, and we hope that this funding will support the transition and local development.”

    During her speech, Commissioner Elisa Ferreira of the European Commission stressed that “Poland is one of the most carbon-intensive countries in Europe. This puts Poland at the forefront of the ongoing energy and climate revolution. It is also the reason why Poland receives the highest share of support among EU countries under the Just Transition Mechanism. Several regions of Poland — including Silesia, where we are meeting today — are particularly vulnerable.”

    “Issues related to the disbursement of funds from the Just Transition Fund are no longer a matter of discussion, but of implementation. We have held meetings with representatives of the trade unions and have had another meeting with the Vice-President of the European Commission, Frans Timmermans. Step by step, we are indicating the areas where money from the JTF will be invested — and let me remind you that the sum involved is €2.2 billion. In a sense, our transition must be ‘smart’: We must be able to create new branches and areas within industry whose common denominator will be environmentally friendly technologies. It is highly likely that the mining sector will be gradually closed down over the coming years. The trade unions have signed a social agreement in which they have consented to this scenario. With this in mind, therefore, we need to create completely new industries. An important challenge is the revitalisation of post-industrial and former mining areas, which must be given a new lease on life. New jobs will be created there in the future. The Silesian Region, in cooperation with the Central Mining Institute, has completed the important task of carrying out an inventory of these areas, which has been under way since 2019. The region has approximately 330 former mining areas, and 270 post-industrial sites. Their ownership status varies. As a local government official, I would certainly prefer it if these areas were handed over to local governments, but it is nevertheless a very clear map for investors. What the future holds for these areas, only time will tell,” said Marshal of the Silesian Region Jakub Chełstowski.

    “Now, even more than five years ago — when we proposed in the European Parliament the establishment of the Just Transition Fund — it is clear why such instruments are so needed in the European Union. Today, they are no longer just tools to fight smog or, more broadly, to protect the climate and the environment and to ensure that everyone receives adequate assistance during these essential transformations. Today, with Russia’s criminal attack on Ukraine and — finally! — our disconnection from Russian energy supplies, thanks to which Putin built his empire, the Just Transition Mechanism not only translates into economic and energy security, but also preserves our very existence. That is why it is also so important that the EIB is not only a climate bank, but above all an energy transformation bank, and that the funds it provides are used properly and efficiently in the EU regions in greatest need, such as Poland’s Silesian Region,” said Jerzy Buzek, Member of the European Parliament.

    Just Transition Mechanism

    The abandonment of coal mining and industrial production and energy generation using methods that generate large amounts of CO2 entails a number of changes, namely:

    • energy transformation, the aim of which is to find new sources of heat and electricity generation;
    • ecological transformation, which involves, for instance, the cleaning up former mining areas;
    • socioeconomic transformation, which is aimed at attracting new businesses and thus compensating for job losses and declining tax revenues;
    • infrastructure transformation, which is a prerequisite for attracting new industries to the regions concerned.

    The Just Transition Mechanism, which is a key element of the European Green Deal, addresses the social and economic costs associated with the transition to a climate-neutral economy. The mechanism supports projects located in  Just Transition Mechanism regions identified by Member States and the Commission in Just Transition territorial plans or in areas where the implementation of projects will benefit JST regions.

    The mechanism consists of three financial pillars: (a) the Just Transition Fund, (b) the Just Transition scheme under InvestEU, and (c) the Public Sector Loan Facility. The EIB supports all three pillars as described in the study entitled “Supporting the Just Transition Mechanism – comprehensive proposal of the EIB Group”. The InvestEU Advisory HUB, JASPERS, Target, and the Just Transition Platform also provide extensive advisory support.[/vc_column_text][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]

  • Coking coal – the invisible fuel of green transition: Experts discuss at the European Financial Congress

    Coking coal – the invisible fuel of green transition: Experts discuss at the European Financial Congress

    [vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – JSW” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Fwww.jsw.pl%2Fen%2Fpress-office%2Fnews%2Farticle%2Fcoking-coal-the-invisible-fuel-of-green-transition-experts-discuss-at-the-european-financial-congress|target:_blank”][distance desktop_type=”30″][vc_column_text]From the perspective of one thousand meters underground – the place where the real green transition begins – the debate organized by Jastrzębska Spółka Węglowa (JSW) at the European Financial Congress in Sopot brought unique insights and expert voices on financing mining companies that reduce emissions.

    “Many people think of windmills or solar panels when they hear ‘green transition.’ But the truth is that it starts 1,000 meters underground,” said Robert Ostrowski, Vice-President of the Management Board for Financial Matters at JSW. He stressed that the steel industry, crucial to the green economy, is heavily dependent on coking coal, the raw material that JSW mines. It is a raw material that is included in the European list of critical raw materials, highlighting its strategic importance.

    Tomasz Ślęzak, from ArcelorMittal, emphasized the role of steel in our daily lives. “It is impossible to imagine the modern world without steel. To produce 1 MW of solar power, 40 tons of steel are needed,” Ślęzak added. Thus, steel, a raw material invisible to many, is absolutely crucial for a green future world.

    BGK’s Radosław Kwiecień noted that banks are increasingly open to decarbonization projects, while emphasizing the strategic importance of steel production in the supply chain.

    The discussion showed that Jastrzębska Spółka Węglowa not only takes responsibility for the energy transition, but also designates a path to achieve carbon neutrality by 2050. JSW’s continued mining of coking coal is therefore crucial to the future of Europe’s green economy.[/vc_column_text][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]

  • Aramine opens new subsidiary in Poland

    Aramine opens new subsidiary in Poland

    [vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – Global Mining Review” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Fwww.globalminingreview.com%2Fmining%2F05062023%2Faramine-opens-new-subsidiary-in-poland%2F|target:_blank”][distance desktop_type=”30″][vc_column_text]After Mexico, Niger, Burkina and Armenia, this strategic expansion demonstrates the company’s ongoing commitment to meet the proximity needs of its international customers and to strengthen its presence in the European market.

    Aramine Poland will be led by Piotr Bakowski, an expert in the mining sector for almost 20 years. Immersed in the mining industry from an early age thanks to his father, he opened his own company F.H.U. ATLAS in 2012 and supplies major mines such as ZGH Boleslaw and KGHM with spare parts, and provides maintenance and repair services.

    Christophe Melkonian, Aramine co-president, comments:

    “As a loyal Aramine customer for almost 10 years, it is natural that his experienced profile and in-depth knowledge of the Polish market has seduced us. We have great confidence in Mr. Bakowski and are convinced that he will provide Aramine Poland with the necessary energy for sustainable growth and long-term success in the region.”

    The new subsidiary, located in Przemkow, has 200 m2 of offices and nearly 500 m2 of workshop and storage. The company will manage a local stock and a team of technicians who will intervene in the neighbouring mines, remanufacture machines and components, and ultimately assemble the Aramine machines.

    Beyond creating local jobs, Aramine promotes the transfer of its skills, innovations, and technical knowledge within its Polish subsidiary.

    Aramine Poland will therefore, within a short period, offer the full range of the company’s products and services and will be active on a territory that will certainly not be limited to its country of establishment.

    Indeed, Poland was chosen for its central geographical position in Europe, its active economy and its growing market. With its good transport infrastructure, Poland is a strategic place for export to other countries of the European Union and beyond.

    The opening of this subsidiary is an important step in the French company’s expansion strategy, allowing Aramine to establish closer relationships with existing customers in Eastern Europe and to explore new business opportunities.[/vc_column_text][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]

  • Poland wants to start up its first nuclear power plant in 2033

    Poland wants to start up its first nuclear power plant in 2033

    [vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – Ruetir” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Fwww.ruetir.com%2F2023%2F05%2Fpoland-is-going-to-develop-its-nuclear-industry-and-has-set-eyes-on-a-country-that-wants-to-put-an-end-to-its-own-spain%2F|target:_blank”][distance desktop_type=”30″][vc_column_text]Poland needs to reduce its dependence on coal. Currently, almost 80% of the electricity produced by this European country comes from fossil energy sources, a figure that places it well above the 35.9% average that prevails in Europe. Besides, does not have nuclear power; Its commitment to photovoltaic installations is anecdotal (barely touching 1.4% of total electricity production) and its wind farms only produce a little more than 10% of the electricity it needs.

    The challenge facing Poland is not trivial. This country is an important wagon on the European train, which prevents it from staying on the sidelines of the commitments that Europe has adopted in environmental matters. However, the Polish government has a plan. Its purpose is to develop its nuclear industry quickly and what is necessary to drastically reduce its dependence on fossil fuels in a short time. The problem is that it starts from scratch.

    At this juncture, the Polish Administration has no choice but to count on the complicity of other European countries that they have much more experience in the field of nuclear energy, and one of the states in which it has set its sights is Spain. In fact, a meeting between Spanish and Polish companies is currently taking place in Madrid with the aim of establishing the links that are necessary to help Poland develop its nuclear industry.

    Poland wants to start up its first nuclear power plant in 2033

    The itinerary that the Polish government has set is ambitious. Its goal is for its first nuclear power plant to come into operation in 2033, so it will be necessary to start construction no later than 2026. This plant will be in Choczewo, a town of approximately 5,000 inhabitants located in the extreme north of the country, in the Baltic sea coast. When the first reactor is ready, more units will be put into operation with a periodicity of two or three years for each of them.

    Poland needs to invest more than 30,000 million euros in the development of its nuclear industry

    Ultimately, Poland’s plan is for its future nuclear facilities to be capable of providing 23% of the electricity it needs no later than 2040. And to achieve this, it needs to invest more than 30,000 million euros in the development of this industry. This is precisely the gateway for Spanish companies. What both countries are seeking is to cooperate so that Poland can carry out its strategy, and the Spanish companies that will contribute to this objective will receive, as is logical, a part of that money.

    Curiously, we know some of the best located ones. At the end of 2019 we had the opportunity to visit the fuel rod factory that ENUSA Industrias Avanzadas has in Salamanca, and a few weeks later we were in one of the control room simulators that Tecnatom has developed in the Madrid town of San Sebastian de los Reyes. Ensa and Newtesol are other Spanish companies that have a lot of experience in the manufacture of equipment for nuclear power plants, and they will probably also participate in this project.

    In a way, it is paradoxical that Poland is determined to forge technological and business links with Spain in the field of nuclear energy. For the moment, the Spanish Government maintains the itinerary set for the nuclear blackout, so that if everything continues its course, the last Spanish nuclear power plant that will remain active, that of Trillo, will cease in 2035. In any case, this plan in no way invalidates Spanish companies with experience in the nuclear sector. In all probability its activity will continue beyond 2035 even though all its clients are hosted abroad.

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  • Poland boosts its gold reserves by 15 tonnes, biggest increase in nearly 3 years

    Poland boosts its gold reserves by 15 tonnes, biggest increase in nearly 3 years

    [vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – Kitco News” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Fwww.kitco.com%2Fnews%2F2023-05-22%2FPoland-boosts-its-gold-reserves-by-15-tonnes-biggest-increase-in-nearly-3-years.html|target:_blank”][distance desktop_type=”30″][vc_column_text]Polish central bank bought 14.8 tonnes of gold in April, which was the biggest purchase since June 2019.

    According to the National Bank of Poland, the country’s gold reserves rose to 7.828 million fine troy ounces (243.5 metric tonnes) last month from 7.352 million. This was the largest increase since June 2019, when Poland’s reserves rose by 94.9 tonnes.

    The value of gold, including gold deposits and gold swapped, climbed to $15.52 billion in April from $14.55 billion.

    The April purchase also comes after the Bank’s Governor Adam Glapinski’s said in 2021 that Poland was planning to add 100 tonnes to its gold holdings to prepare for “the most unfavorable circumstances.”

    “Why does the central bank own gold? Because gold will retain its value even when someone cuts off the power to the global financial system,” Glapinski told local newspaper. “Of course, we do not assume that this will happen. But as the saying goes – forewarned is always insured. And the central bank is required to be prepared for even the most unfavorable circumstances. That is why we see a special place for gold in our foreign exchange management process.”

    This means that more buying could follow, said BMO Capital Markets managing director Colin Hamilton. “We expect central bank buying to remain robust this year (+596t), an ongoing tailwind for gold prices and sentiment,” Hamilton said.

    Central bank gold buying has been one of the driving forces behind higher gold prices this year.

    According to the World Gold Council, other central banks that bought gold in April included the People’s Bank of China, the Czech National Bank, and the Central Bank of Mongolia, with 8.1 tonnes, 1.8 tonnes, and 1 tonne, respectively.

    On the other hand, the Central Bank of Turkey is estimated to have sold a staggering 80.8 tons of gold in April to meet surging domestic demand. After buying the most gold than any other central bank last year, Turkey turned to selling in March and April to meet growing domestic demand, the WGC said. This was in an attempt to limit the need to import gold, which has been weighing on Turkey’s current account deficit.

    Turkey has seen a surge in gold demand as citizens embraced the precious metal as a hedge against inflation, which ran at a pace of over 85% at one point last year, and local currency devaluation.

    To get the latest WGC numbers on central bank gold buying from the first quarter, click here.[/vc_column_text][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]

  • Poland’s KGHM sees extra viable mining pits at its biggest mine in Chile

    Poland’s KGHM sees extra viable mining pits at its biggest mine in Chile

    [vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – Nasdaq (Reuters)” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Fwww.nasdaq.com%2Farticles%2Fpolands-kghm-sees-extra-viable-mining-pits-at-its-biggest-mine-in-chile-0|target:_blank”][distance desktop_type=”30″][vc_column_text]GDANSK, May 18 (Reuters) – Poland’s largest ore miner KGHM Polska Miedz KGH.WA can verify four more viable mining pits in its flagship Sierra Gorda copper and molybdenum mine in Chile, vice president of the company’s management board for international assets Miroslaw Kidon said on Thursday.

    “We can verify and identify another four pits, which are of similar size to our current pit,” said Kidon on a conference call.

    He added that the company and a team of geologists suspected the newly identified pits might be in reality “one big super-pit”.

    Sierra Gorda, in which the Polish miner holds a majority stake, produced nearly 19 thousand tonnes of payable copper in the first quarter, 21% less than in the same quarter last year.

    Kidon explained that the decline was caused by a lower content of the metal in the ore, but underlined the company’s commitment to the mine.

    “Sierra Gorda became our flagship project, we constantly work to improve financial results and value of this company…”, he said.

    Another foreign mining operation that sustained a drop in its output was the Robinson copper mine in Nevada, U.S. whose quarterly output declined by an annual 63% to 5.3 thousand tonnes of payable copper.

    The fall was mainly due to extreme weather conditions, including record high snowfall, whose melting led to flooding of the mine’s communication routes.

    Kidon said he did not expect the mine to hit its yearly production goal, as the unit under which the mine operates has so far achieved only about 14% of its output target.

    “At the moment, I can only say that we expect non-execution of budget production volume for Robinson,” he said.

    He added, however, that it was too soon to make output predictions with certainty.

    (Reporting by Mateusz Rabiega and Anna Banacka; Editing by Jan Harvey and Christina Fincher)[/vc_column_text][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]