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Lubelski Węgiel
Lubelski Węgiel Bogdanka S.A.

LW Bogdanka to increase coal supplies to Enea Group from 2017

Thursday, 2016-09-29

Bogdanka, 29 September 2016

 


LW BOGDANKA TO INCREASE COAL SUPPLIES TO ENEA GROUP FROM 2017
 

Lubelski Węgiel Bogdanka Group has signed annexes to its long-term agreements with Enea Wytwarzanie Sp. z o.o. to increase the volumes of Bogdanka’s supplies to Enea Group, starting 2017.  
 

The annex to Long-Term Agreement II, effective from 2017 to 2036, expands the scope of cooperation between the two Enea Group companies. As a result of signing the annex, the value of the entire Long-Term Agreement II, effective from 2017 to 2036, will amount to PLN 13.97 billion net, i.e. will increase by 24.20% compared to the original agreement signed in January 2012. Approximately 64% of this amount, i.e. PLN 8.95 billion net, will come in the period 2017-2025.
 

The annex to Long-Term Agreement I, which concerns coal supplies for the currently operated power plant units (and which was terminated by Enea Wytwarzanie Sp. z o.o. in August 2015 and expires at the end of 2017), defines the price and volumes of supplies in 2016-2017. As a result of signing the annex, the value of the entire Long-Term Agreement I, effective from 2011 to 2017, will amount to PLN 4.64 billion net, i.e. will decrease by 8.19% in relation to the previously estimated value.
 

As a result of signing the annexes, the total value (estimated according to current prices) of Long-Term Agreement I and Long-Term Agreement II in the period 2011-2036 amounts to approx. PLN 18.61 billion net.
 

“Since October 2015, LW Bogdanka has been a vital element of the Enea Group value chain. The annexes to long-term agreements we have just signed are another step towards achieving optimal performance of the Group in the extraction and production area, primarily in the mid- and long-term. They will be a solid foundation for advancing in the fulfilment of our sustainable development potential in these areas and increasing our competitive advantage. Close cooperation and further integration of LW Bogdanka within the Group will commercially benefit all parties, and the long-term securing of fuel for the production of electrical energy will also ensure higher security of energy supply to our customers”, said Piotr Adamczak, Vice-President of the Management Board for Commercial Affairs at ENEA S.A.


“The signing of annexes to the long-term agreements, which increase the supplies to Enea, simply confirms the benefits of joining the Enea Group by Bogdanka to build a modern raw materials and energy corporation. The larger volume of supplies to our parent company means higher security of extraction levels at LW Bogdanka and strengthening of the position of our company in the difficult coal market in Poland. The annexes further tighten the business relations between the two companies, which now belong to a single Group: for years, Bogdanka has been the key supplier of Enea, and Enea has been Bogdanka’s largest customer”, said Krzysztof Szlaga, President of the Management Board of Lubelski Węgiel Bogdanka S.A.

 

For further information please contact:

 

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

 


LW BOGDANKA – HIGHLIGHTS

Lubelski Węgiel BOGDANKA S.A. is the most modern and one of the largest hard coal mines in Poland. In 2015, production of Bogdanka’s commercial coal amounted to 8.5 million tonnes.

LW BOGDANKA conducts mining activity with respect to extraction, agglomeration and sale of hard coal. The BOGDANKA mine supplies mainly the industrial customers based in the eastern and north-eastern Poland. The market of customers is stable, and the sale is carried out mainly under long-term agreements. LW BOGDANKA’s major commercial coal sales channels are commercial power and industrial power industries.  

The Company’s financial results, hard coal extraction capacity and investment plans distinguish the Company from other organisations in the industry. LW Bogdanka S.A. has been listed on the Warsaw Stock Exchange since 22 July 2009. Since October 2015 LW Bogdanka S.A. has been part of the Enea Group, one of the leaders of the Polish power market.

 

For further information visit www.bogdanka.eu

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