The coal pioneer
Coal miner Lubelski Węgiel Bogdanka (LWB) is aiming to raise some zł.450 million from its long-awaited initial public offering.
The Lublin-region mine in eastern Poland will use the much-needed funds to finance infrastructure construction and modernization in a bid to double coal production from 5.5 million tonnes a year in 2008 to 11 million tonnes a year in 2014, according to LWB's issue prospectus. Its coal reserves currently amount to about 300 million tonnes.
Figures published by LWB show it has a six-percent share of the domestic market, however, because of relatively favorable extraction conditions Bogdanka accounted for 23 percent of the total profit of Polish mines in 2006-2007. Local geological properties mean that coal production costs in the Lublin area are about zł.100 per tonne lower than mining in Silesia, making Bogdanka more competitive. Its coal is mainly supplied to power plants in eastern and northeastern Poland.
"Bogdanka is definitely one of the best companies in the Polish excavation sector. Our financial results and development potential prove that the coal industry can be cost effective and see large profits," said Mirosław Taras, CEO of LWB. The State Treasury's share in the company will fall from 97 to 65.5 percent after the IPO.
With a workforce of some 3,600 staff, it is one of the largest employers in the Lubelskie voivodship. Other major employers in the region include aerospace manufacturer PZL Świdnik and the Perła brewery. The population of the entire voivodship is about 2.2 million, while the population of the Lublin agglomeration is about 564,000. Global BPO outsourcing company Genpact sited its Polish headquarters in Lublin and the city recently witnessed the opening of the Lublin Science and Technology Park, which hosts small, innovative firms.
Marcin Poznań