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Lubelski Węgiel
Lubelski Węgiel Bogdanka S.A.

Statement of Bogdanka on the judgement of the provincial administrative court

Friday, 2016-03-18

Bogdanka, 18 March 2016

 

PRESS RELEASE



STATEMENT OF LW BOGDANKA S.A. ON THE JUDGEMENT OF THE PROVINCIAL ADMINISTRATIVE COURT IN WARSAW REGARDING THE “LUBLIN COAL BASIN K-6, K-7” HARD COAL DEPOSIT

 

On 16 March 2016, the Provincial Administrative Court in Warsaw dismissed an appeal filed by LW Bogdanka S.A. against the decision of the Ministry of Environment of 5 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 — areas K-6 and K-7” deposit. Lubelski Węgiel BOGDANKA S.A. The Company has applied for a written statement of reasons for the judgement, and also intends to file an appeal with the Supreme Administrative Court. In addition to its continued efforts to obtain a licence for extraction in the “K-6, K-7” area, LW Bogdanka S.A. works towards extending extraction in the northern direction by developing licence documentation to extract coal in the Ostrów and Orzechów areas, where it already holds exploration licences. It is the Company’s priority to expand to the north, as this is the area where deposits with very good parameters are located. With the current operating resources, the mine will continue operations until about 2034. The Company’s aim is to double these resources before 2020.

 

Zbigniew Stopa, President of the Management Board of LW BOGDANKA S.A.:
“We are disappointed with the judgement of the Provincial Administrative Court in Warsaw, and believe that it is in opposition to what we should understand as public interest. The “K-6, K-7” deposit is in an immediate vicinity of our mining fields. Therefore, we are able to develop this area in a relatively short period and at a relatively low cost with the use of the existing infrastructure, which would be the most sensible and effective solution. The parameters of seams in the “K-6, K7” deposit, especially seam 391 are also of great importance: in order for coal from this deposit to be used in the most effective manner, it should be mixed with coal from seams located in the northern areas or our existing area. Its Coal Processing Plant enables Bogdanka to carry out this procedure.”
“The Company’s appeal should have been recognised due to the legal defect of the challenged decision of the licensing authority on refusal to grant the Company a licence for extraction. Therefore, the Company intends to file an appeal against the judgement to the Supreme Administrative Court. At the same time, we are working on the existing exploration licence for the Ostrów and Orzechów deposits. Our plan to transform this licence into a licence for extraction of those highly resourceful deposits will allows us to pursue our strategy of developing Lubelski Węgiel Bogdanka S.A. in the northern direction. With the current operating resources, the mine will continue operations until about 2034. However, the expansion to the north will allow us to at least double these resources before 2020.”

For further information please contact:

Magda Kołodziejczyk, M+G
phone (+48) 22 416 01 02, 501 16 88 07
e-mail: magda.kolodziejczyk@mplusg.com.pl

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