October 2, 2022

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Energy - coal.  PGG is increasing coal prices

Energy – coal. PGG is increasing coal prices

Polska Grupa Górnicza has increased and standardized coal prices for individual customers. The average increase is about 20 percent. The company justified this step by a significant increase in production costs and the need for investment.

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

20 percent increase

Until now, the prices for the same types of coal heating in individual mines were different. After the change, the average price for heating coal in PGG will be about 1.2 thousand. PLN per ton (compared to about 1,000 PLN so far). Coal prices from PGG mines are still among the lowest in the market.

“The necessity of aligning coal prices to households in PGG SA has been imposed due to the sharp increase in production costs since the beginning of 2022. The price of steel needed in mines to boost business in the market has jumped (the company will pay for it as up to 78% more than before, Electricity and fuel are also much more expensive, as well as the services of mining stations ”- as stated in the company’s announcement.

According to technical and economic forecasts, PGG expenditures this year will be 2.4 billion PLN higher than in the previous year. The company will also incur a significant increase in spending on investment activities needed to increase the production and sale of coal for heating to the municipal and household sector. PGG will spend more than PLN 1.12 billion on investments compared to the previous year.

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The company’s online store will continue to be the main sales channel for coal heating for homes, having supplied more than 170,000 people with fuel since the beginning of the year. Client. So far, nearly 700,000 families have been delivered to homes via the online store. tons of coal. PGG’s sales system will be improved and expanded. Charcoal 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 has set a path to extinguish its mines by the end of 2049. In the next 12-13 years, PGG, which was signed this year is to deliver more than 23 million tons from hard coal, which will reduce the extraction of this raw material by half – according to company information since the beginning of this year, since February it has benefited from budget support to reduce production capacity.

Main image source: stock struggle