MINEX Forum

Region: Poland

  • Polish Government Moves to Cut Copper Mining Taxes and Restructure Coal Sector

    Polish Government Moves to Cut Copper Mining Taxes and Restructure Coal Sector

    The Polish government has approved a draft amendment to the tax act on the extraction of certain minerals, designed to ease the tax burden on copper producers, government spokesman Adam Szłapka announced on Tuesday. The cabinet also adopted draft changes to the acts regulating hard coal mining and personal income tax, paving the way for a gradual restructuring of Poland’s coal sector.

    The Ministry of Finance, which prepared the proposal, said the reform aims to support copper producers as they invest in projects crucial for the energy transition, noting copper’s vital role in clean energy technologies. The tax reductions will be implemented in phases: in 2026, the coefficient used to calculate mineral extraction tax will drop from 0.85 to 0.74, followed by a further cut to 0.68 in 2027–2028.

    Earlier drafts of the legislation, presented in July, proposed even lower coefficients — 0.71 for 2026 and 0.64 for 2027–2028 — but these were adjusted during consultations. According to ministry estimates, the reduced rates will lower annual state revenues from copper and silver mining taxes by about PLN 0.5 billion (EUR 117.2 million) in 2026, and by PLN 0.75 billion (EUR 175.8 million) per year in 2027–2028.

    Separately, the draft amendment to the act on the functioning of hard coal mining and the personal income tax act will enable companies in the support system to gradually close down coal mines and pay social benefits to affected workers — a process previously blocked by legal constraints.

    The new regulatory impact assessment projects that closing down Poland’s hard coal mines over the next decade will cost PLN 11.275 billion (EUR 2.6 billion). Earlier estimates placed the cost between PLN 4.182 billion (EUR 980 million) and PLN 9.125 billion (EUR 2.1 billion).

  • EU Grants Poland Derogation to Keep Coal Plants Running Until 2028

    EU Grants Poland Derogation to Keep Coal Plants Running Until 2028

    The European Commission has granted Poland a derogation allowing the country to keep its coal-fired power plants operating within the EU’s capacity market until the end of 2028, providing a temporary reprieve for Europe’s last remaining coal producer.

    The decision enables the Polish government to extend financial support to coal units that exceed the EU’s emission cap of 550 grams of CO₂ per kilowatt-hour (kWh), a limit set under the EU Regulation 2019/943. The approval applies from 1 July 2025 through 31 December 2028 and covers both hard coal and lignite power plants.

    The move offers a lifeline to Poland’s coal sector, which still underpins much of the country’s power generation. While the EU is accelerating efforts to phase out fossil fuels in line with the Paris Agreement, Poland remains heavily reliant on coal for electricity and heating — a stance that has increasingly set it apart from other member states.

    Under the derogation, supplementary capacity auctions will be permitted if Poland’s main auctions fail to secure adequate generation capacity to meet the national reliability standard. These short-term contracts, limited to a maximum of one year (or six months for 2025), will be available to coal-fired units that exceed the CO₂ threshold.

    However, the European Commission’s approval comes with strict conditions. Poland must:

    • Update its National Resource Adequacy Assessment (NRAA) with a 10-year projection plan, analyzing plant closures, new constructions, and temporary shutdowns.

    • Conduct detailed modeling to accurately estimate future electricity exports and imports based on sound economic assumptions.

    • Demonstrate that maintenance and refurbishment schedules reflect actual operational plans and national conditions.

    The Commission emphasized that the derogation should not undermine the EU’s long-term decarbonization objectives and is intended as a transitional measure to maintain grid reliability during Poland’s energy transition.

    Poland’s dependence on coal remains significant, accounting for the vast majority of its power generation. Industry experts estimate the Polish state spends about €235,000 per hour subsidizing coal operations.

    Elsewhere in Europe, countries including Germany, the Czech Republic, and Slovenia have accelerated coal phase-outs, selling or shutting down key plants to meet EU divestment and climate targets.

    While global efforts continue to shift toward renewable energy, the Energy Information Agency recently reported that coal consumption could rise in several nations over the next decade due to slow renewable deployment and energy security concerns.

    For now, Poland stands as the EU’s last coal stronghold, facing growing pressure to align its energy system with Europe’s green transition.

  • Pakistan and Poland Eye Expanded Cooperation in Energy, Mining, and Agriculture

    Pakistan and Poland Eye Expanded Cooperation in Energy, Mining, and Agriculture

    Federal Minister for Commerce Jam Kamal Khan met with Poland’s Ambassador to Pakistan, Maciej Pisarski, on Wednesday to discuss expanding trade, investment, and energy cooperation. Talks highlighted opportunities in hydrocarbons, mining, and agriculture as areas of mutual interest.

    Khan praised the longstanding presence of Poland’s state-owned energy firm ORLEN, which has invested approximately $500 million in Pakistan’s oil and gas sector over the past 26 years. ORLEN now plans to double its investment over the next decade, a move that could further strengthen bilateral energy ties.

    Ambassador Pisarski pointed to new exploratory concessions in Sindh and Balochistan as particularly promising, while also underscoring the need to resolve pending issues to sustain investor confidence.

    The commerce minister encouraged Polish companies to explore partnerships in Pakistan’s agriculture value chain, especially in cold storage and processing facilities for fruits and vegetables. He also urged Poland to consider investment in Pakistan’s mining sector, highlighting copper and lignite reserves.

    Pisarski noted Poland’s global expertise in both energy and mining and expressed Warsaw’s readiness to explore joint ventures. The two sides agreed to pursue concrete initiatives and high-level engagements to convert proposals into projects.

    Khan reaffirmed Pakistan’s commitment to facilitating Polish investors, while Pisarski emphasized Poland’s interest in deepening its economic partnership with Islamabad.

  • JSW Declares Force Majeure After Fire at Borynia-Zofiówka Mine

    JSW Declares Force Majeure After Fire at Borynia-Zofiówka Mine

    Jastrzębska Spółka Węglowa (JSW), Europe’s largest coking coal producer, has declared force majeure following a fire at its Borynia-Zofiówka mine, forcing the company to revise its 2025 production targets.

    The fire broke out on September 12, 2025, in the Zofiówka section, where endogenous combustion led to the isolation of the C-2 longwall in seam 505/1. This prompted the suspension of operations and an expected shortfall of 156,000 tons of coking coal this year.

    On September 18, JSW’s management board formally announced the force majeure, notifying business partners of potential impacts on contractual deliveries. “As of the date of this report, it is impossible to determine the full impact of the incident on the future prospects of the company and the JSW group,” the company said in a stock exchange filing, adding that further updates will be issued if new information emerges.

    The fire underscores ongoing operational risks for JSW, which remains the EU’s top coking coal supplier to the steel industry. Similar incidents in recent years have raised concerns over production stability and the company’s ability to meet long-term supply commitments.

    Despite the setback, JSW’s future operations received a boost in August when regulators extended its license to extract coal and methane from the Borynia deposit until 2042. The deposit holds nearly 40 million tons of high-quality coking coal and over 80 million cubic meters of methane, ensuring long-term resource security for the mine and the surrounding region.

  • Poland’s JSW Mined 1.01 Million Tons of Coal in August 2025

    Poland’s JSW Mined 1.01 Million Tons of Coal in August 2025

    Jastrzębska Spółka Węglowa (JSW) reported August 2025 coal production of 1.01 million tons, achieving 84% of its monthly target due to operational disruptions, including a fire at the Budryk mine, force majeure declarations, and challenging geological conditions. Despite this, the company’s cumulative January-August output reached 8.44 million tons, exceeding its annual plan by 0.5%.

    Coal sales in August totaled 1.18 million tons (95.3% of the target), with energy coal outperforming expectations at 135.4% of the monthly goal. Coking coal sales, however, dipped to 0.93 million tons against a 1.05-million-ton target. The coke segment proved resilient, with August production hitting 0.30 million tons (116.3% of the plan) and sales reaching 0.29 million tons (110.1%). Year-to-date coke output stands at 2.01 million tons, surpassing annual projections.

    JSW underscored its long-term stability after securing a license extension for the Borynia deposit until 2042, which holds 40 million tons of coking coal reserves. The company attributed its sustained performance to its Strategic Transformation Plan, ensuring operational resilience despite market volatility.

  • Polish Coal Sector Faces Financial Strain Amid Energy Transition

    Polish Coal Sector Faces Financial Strain Amid Energy Transition

    Poland’s coal mining sector has reduced its losses since last year but still needs billions of złoty in state support to survive, according to Polish media.

    In the first half of 2025, the sector made a net loss of 4.059 billion złoty (€950 million), Industrial Development Agency data show, less than half of the 8.365 billion złoty (€1.97 billion) lost in the first six months of 2024. Over the whole of 2023, Polish coal mining turned a net profit of 4.8 billion złoty (€1.13 billion).

    Despite the improved performance, the industry needs shoring up from the state budget due to rising costs and falling output, one trade union leader told the wnp.pl business news site. Bogusław Ziętek, head of the Sierpień 80 miners’ union, said the high costs are a result of government policy.

    As part of its ‘green transition’ policy of diversifying energy production away from fossil fuels and toward renewables, the government has capped coal extraction. This year’s output is equal to that forecast for 2035, and this falling yield has pushed up the production price per ton, Ziętek said. Because of this, he argues, the government’s energy policy will cost the state billions.

    Polish online energy portal Wysokie Napięcie reports that the government has earmarked over 9 billion złoty (€2.12 billion) to support collieries in 2025, made up of 3.5 billion złoty (€820 million) in direct subsidies and up to a further 5.4 billion złoty (€1.27 billion) in loans.

    A ‘social agreement’ between the government and miners’ unions officially allocates around 29 billion złoty (€6.82 billion) for subsidies to unprofitable mining firms until 2031, though some sources have suggested the true cost may be as high as 42 billion złoty (€9.88 billion).

  • Poland’s Coal Exit Stalls Amid Political Battles, But Economics Point to Faster Phase-Out

    Poland’s Coal Exit Stalls Amid Political Battles, But Economics Point to Faster Phase-Out

    In August 2023, Poland’s state-owned utility PGE stunned the nation by pledging to become carbon neutral by 2040 and quit coal entirely by 2030 — a decade earlier than planned. The move, in line with EU climate ambitions, was quickly reversed after fierce backlash from mining unions in Silesia, Poland’s coal heartland, and political pressure ahead of national elections.

    Eighteen months into the new pro-EU government of Prime Minister Donald Tusk, progress on the energy transition remains slow. A key reform to loosen restrictions on wind turbine construction passed parliament last week but faces an expected presidential veto from Karol Nawrocki, a coal supporter elected with backing from the previous ruling party.

    Poland’s reliance on coal is deeply rooted in its geology, economic history, and cultural identity. With 27.8 billion tonnes of reserves — the second-largest in the EU — coal still generates 57% of the country’s electricity, the highest share in Europe. Mining employs tens of thousands and carries strong political weight, particularly in Silesia, where miners are held in high public esteem.

    Economically, the sector is struggling. Domestic output has dropped from over 250 million tonnes annually in the 1980s to about 85 million today, with production costs among the highest in the world at over 900 złoty ($243) per tonne. Heavy subsidies keep the industry afloat, costing taxpayers 9 billion złoty in 2025 — about 600 złoty per household.

    Poland’s slow pace on clean energy has left it vulnerable to rising carbon costs under the EU Emissions Trading System, with new ETS2 rules set to extend carbon pricing to households from 2027. Around one-third of Polish homes still burn coal for heating, making them particularly exposed. Analysts warn that political resistance to ETS2 could delay implementation and stall the transition further.

    Despite delays, Poland’s draft National Energy and Climate Plan projects coal’s near-total disappearance by 2035. Energy experts argue this could happen sooner, as economics increasingly favour renewables. In April, coal’s share of monthly electricity generation dipped below 50% for the first time, and renewables now account for 29% of the energy mix, nearly double the share in 2020.

    Yet the political tug-of-war between coal defenders and clean energy advocates continues to shape policy — and Poland’s future competitiveness. Major investors, including Google, Amazon, and Mercedes, have warned that the country’s coal-heavy power mix could deter investment, while its fast-growing battery industry risks losing ground under new EU carbon footprint rules.

    “The energy market and society need this investment pathway to be implemented,” said Tobiasz Adamczewski of think tank Forum Energii, adding that a just transition for coal communities will be key.

  • Historic Wieczorek Coal Mine in Katowice to Become Sustainable Tech and Innovation Hub

    Historic Wieczorek Coal Mine in Katowice to Become Sustainable Tech and Innovation Hub

    The century-old Wieczorek coal mine in southern Poland is set for a €135 million transformation into a state-of-the-art sustainable technology and innovation centre. Strabag Sp. z o.o., the Polish arm of Austria-based Strabag, secured the first-phase construction contract on August 1, marking the start of a 32-month programme to restore and modernise the landmark industrial complex.

    The redevelopment will create research laboratories, demonstration areas, and facilities for technology-focused businesses in fields such as e-sports, artificial intelligence, and other emerging sectors. Plans also include the integration of renewable energy systems, climate-friendly building technologies, and the addition of a public park.

    “As part of our Strategy 2030, we are specifically focusing on future fields such as reconstruction, conversion, and refurbishment, as well as technological leadership,” said Strabag CEO Stefan Kratochwill.

    The project aligns with Katowice’s wider vision to repurpose former industrial sites into hubs for knowledge transfer, technological growth, and sustainable urban development. Strabag described the initiative as a “lighthouse” project for the city’s shift from coal-based industry to an innovation-led economy.

    Strabag is also advancing similar regeneration work in nearby Dąbrowa Górnicza, where the former Desum machine tool plant is being redeveloped into the “Living Factory” — a mixed-use complex combining offices, cultural spaces, dining areas, and pedestrian-friendly public zones.

  • JSW Launches €25.6M METH2GEN Project to Turn Methane Emissions into Clean Hydrogen with EU Support

    JSW Launches €25.6M METH2GEN Project to Turn Methane Emissions into Clean Hydrogen with EU Support

    Jastrzębska Spółka Węglowa (JSW), the EU’s largest coking coal producer, has launched the METH2GEN project—an innovative €25.6 million initiative aimed at curbing methane emissions from mining operations and converting the captured gas into low-cost hydrogen. Over €20 million of the total funding is provided by JSW itself, with additional support from the European Union.

    The project features two primary components. First, it introduces directional drilling technology to improve methane capture from underground geological formations. This is expected to raise methane recovery efficiency to as much as 70% in mining areas like the Budryk mine. JSW highlights that the new technique will not only reduce emissions but also enhance mine safety and lower operational costs.

    “This is an important step towards modern, safe, and environmentally friendly mining,” said Adam Rosmus, JSW’s VP of Technical and Operational Affairs.

    The second part of the project will see the construction of a hydrogen production facility using Steam Methane Reforming (SMR) technology. Captured methane will be converted into hydrogen, and the resulting CO₂ will be reused in fire prevention systems. According to JSW, this method allows for 100% utilization of methane from degassing stations and offers a cheaper alternative to hydrogen produced via electrolysis.

    “This is a breakthrough solution… particularly important in view of the new European methane standards,” said Artur Badylak, Director of JSW’s Degassing and Methane Policy Office.

    Geological surveys are underway to determine the best location for the hydrogen plant, and drilling equipment is already being procured.

    METH2GEN is one of four major EU-supported environmental initiatives undertaken by JSW, with a combined budget of over €63.8 million. Methane currently accounts for 73% of the company’s total carbon footprint, making its reduction central to JSW’s green transition strategy.

    Despite facing geological and operational challenges, JSW remains committed to its environmental goals. In 2024, it reduced coal production by 9.3% and coke output by 8.6% compared to the previous year. However, the company still reported a net loss of PLN 7.3 billion in 2023.

  • EU Court Advisor Says Commission Wrongly Deducted €68M from Poland Over Turów Mine Dispute

    EU Court Advisor Says Commission Wrongly Deducted €68M from Poland Over Turów Mine Dispute

    The European Commission improperly withheld over €68 million from Poland’s EU funding in connection with the Turów coal mine dispute, according to a preliminary opinion issued Thursday by Advocate General Juliane Kokott of the EU Court of Justice.

    The legal dispute began in 2021 when Czechia filed a case against Poland, citing environmental and public health risks stemming from operations at the Turów coal mine, located near the Czech border. In response, the EU court ordered an immediate halt to mining. When Poland continued operations, the court imposed a daily fine of €500,000, which accumulated between 20 September 2021 and 3 February 2022.

    However, Thursday’s advisory opinion argues that a 2022 bilateral agreement between Poland and Czechia retroactively nullified the interim court measures and, by extension, the financial penalties. Under the agreement, Poland paid €45 million in compensation and agreed to implement environmental safeguards aimed at mitigating the mine’s cross-border impact.

    “The amicable agreement between the Czech Republic and Poland meant that the interim measures were cancelled retroactively,” Kokott wrote. “Therefore, the Commission wrongly offset the penalty payment against Poland’s claims against the EU budget.”

    While Kokott’s findings are non-binding, they are often followed by the Court of Justice in its final ruling.