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Lubelski Węgiel
Lubelski Węgiel Bogdanka S.A.

Bogdanka’s position regarding the K-6-7 area

Friday, 2014-11-14

Bogdanka, 14 November 2014

PRESS RELEASE


POSITION OF LW BOGDANKA S.A. ON THE REFUSAL OF THE MINISTRY OF ENVIRONMENT REGARDING THE K-6-7 AREA MINING LICENCE

 

Further to the decision of the Ministry of Environment delivered on 12 November 2014 to maintain the challenged decision of 5 September 2014 on refusal to grant a licence for extraction of hard coal in the “Lublin Coal Basin deposit — areas K-6 and K-7”, Lubelski Węgiel BOGDANKA S.A. hereby informs you that it will immediately file an appeal against this decision with the Provincial Administrative Court in Warsaw.

Zbigniew Stopa, President of the Management Board of LW BOGDANKA S.A.:

“In our opinion, the decision of the Ministry of Environment is defective. Therefore, we do not lay down our arms in the fight for the licence for the K-6-7 area. In accordance with our previous declarations, the dispute will be settled in court.The granting of the licence for K-6-7 area to our Company is not only a solution that ensures the development of new and prospective areas by Bogdanka, the company which delivers more than 25% of coal to Polish power plants.It is also a guarantee that the deposits in this area which neighbours Bogdanka and has already been explored, would be used in the most effective and reasonable manner. This, indeed, lies in the best interest of the State Treasury.Moreover, it is difficult to agree with the statement on refusal to grant the licence on the grounds of the so called “public interest”.

Irrespective of the actions undertaken in connection with the K-6-7 area, the Company continues its work with an aim to ensure the development of Bogdanka to the north by preparing licence documentation to extract coal in the Ostrów and Orzechów areas, in respect of which we already possess exploration licences.With the current operating resources, the mine will continue operations until about 2034. However, our aim is to double (at least) these resources before 2020.”

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