In the middle of each month, we publish a set of key statistics on coal mining in Poland on our blog and X (Twitter). The data is published with a 1.5-month delay, following announcements by the Energy Market Agency and the Industrial Development Agency, Katowice Branch.
This month, we have some news for you, as announced in the previous issue. We have added a new section to energy.instrat, entitled ‘Coal prices and production costs’, which contains new data on coal prices imported from ARA ports, production costs in mining companies and the current PSCMI 1 and 2 indices. These charts provide an overview of the market situation in the mining industry and the conditions underlying state subsidies. Graphics, comments and links can be found at the bottom of the post.
To begin with, let’s take a look at how much electricity was produced from hard coal and other fuels over the month. Supplying a substantial part of the demand is coal’s fundamental, though not the only role.
May was another breakthrough month for the Polish energy sector. For the first time, solar power generated over 2.5 TWh of electricity, accounting for nearly 20% of the electricity mix for the month. This is more than Polish gas-fired power plants have ever produced in a single month. The total share of coal-fired generation remained at a record-low level of 47%, and data from the power grid for the following months suggest that this trend will continue.
More data is available on the chart ‘Electricity production’, source: ARE
Hard coal in May
Below, we analyse the monthly data from the hard coal sector. The comments refer to the charts constantly available on energy.instrat.pl in the Mining section.
Symbols mean:
↗ a rise
↘ a decrease
= marginal or no difference in comparison to the previous month
Production and sales of hard coal
COAL PRODUCTION – 2.99 Mt ↘
COAL SALES – 2.96 Mt ↘
May brought another record in the history of hard coal mining. Following April’s drop in sales below the 3 million tonnes milestone, in May, for the first time, production also fell below 3 million tonnes. As a result, both figures reached their lowest levels on record.
Hard coal reserves
TOTAL – 10.99 Mt ↘
RESERVES AT MINING SITES (mining) – 5.30 Mt ↗
RESERVES AT MINING SITES, PURCHASED (by the power industry) – 0.30 Mt ↘
RESERVES AT POWER PLANTS (power industry) – 5.40 Mt ↘
Total hard coal reserves in May decreased by 2% compared to the previous month. The trend observed in April persisted, with an increase in coal in mine dumps and a decrease in power plant warehouses.
Employment in hard coal mining
72 653 persons ↘
Employment in the mining sector continues its downward trend, with record-low levels observed in recent months.
Hard coal price for electricity generation (PSCMI1)
PSCMI 1 – 355 PLN/t ↗ – 16.29 PLN/GJ ↘
Coal prices for the power sector have remained stable compared to April. Year-on-year, however, they have fallen by approximately 25%.
Hard coal price for heating (PSCMI 2)
PSCMI 2 – 470 PLN/t ↘ – 20.04 PLN/GJ ↘
The price of coal for heating has been in a downward trend for several months, gradually approaching levels last seen over three years ago.
Price of domestic (PSCMI 1) vs imported (ARA) hard coal
PSCMI 1 – 16.29 PLN/GJ ↘
Import (ARA) – 17.68 PLN/GJ ↘
The chart, which will now become a permanent feature of our Brief, shows that although imported coal has become significantly cheaper in recent months, it still remains below the price of Polish coal. However, as can be seen in the chart in the new section below, the situation is detached from production costs in mines and raises questions about the economic sense of heavy subsidies towards the sector.
We compare the prices of energy coal (PSCMI 1) with imported energy coal in a unit that takes into account quality differences [PLN/GJ]. Coal for heating (PSCMI 2) is filtered out by default.
New content
New coal prices and production cost charts
Since yesterday, a new section entitled ‘Coal prices and production costs (PL vs import)’ has been available on the platform. The collected data allows for a comparison of the prices of energy coal produced in Poland (PSCMI 1 and PSCMI 2) with the prices of raw material imported through the ARA ports (Amsterdam–Rotterdam–Antwerp), as well as a comparison with the costs of extraction in domestic mines. The new visualisations have been added to the menu under the categories ‘Mining’ and ‘Prices’. Some of them will be permanently or occasionally included in the Coal Brief.
New charts show, among other things, that domestic energy coal (PSCMI 1) has been sold for months below both production costs and the price of imported coal, contrary to all economic logic. This raises questions about the sense of further subsidies for mining companies. With billions of zlotys in annual public support, Polish mining still has no transformation plan – instead of a roadmap, we have growing piles and bills to pay.
Cost of hard coal production in the largest mining companies
One of the new charts we would like to present to you on this occasion is a comparison of the average annual costs of hard coal production in the largest mining companies in Poland. As we can see below, LW Bogdanka is the cheapest coal producer in Poland. At the other end of the chart is Południowy Koncern Węglowy, with the highest mining costs, followed closely by JSW, which mines more expensive coking coal. Polska Grupa Górnicza ranks slightly below the average production cost according to ARP (Industrial Development Agency).
For more technical information and detailed descriptions of individual charts in the new section, please refer to the article describing the new section on our blog.
That is all in the current issue. We would like to remind you that data on Polish mines is always available in our database: Coal mines in Poland. It contains a complete list of active deposits, annual statistics of mines and the current closure dates.
Contact
Wojciech Przedlacki, Product Owner energy.instrat.pl, [email protected]
