LW Bogdanka will be soon held by the State Treasury
On 10 October 2023, in Warsaw the State Treasury and Enea S.A. signed a prelimina10 10 ry agreement confirming the State Treasury’s intention to purchase all Enea’s shares in LW Bogdanka. At the same time, the trade unions operating at Bogdanka signed two agreements - with the Ministry of State Assets and the Bogdanka Management Board - securing the social interests of the mine's employees.
The signed agreement between the Ministry of State Assets and ENEA S.A. confirms the intentions of the State Treasury expressed in the Resolution of the Council of Ministers of 14 April 2022, as well as the Letter of Intent of 18 June 2022 on the acquisition by the State Treasury from ENEA S.A. of a majority stake in LW Bogdanka S.A. At the same time, the agreement sets out the detailed rules of cooperation between the Ministry of State Assets and the Company in the ongoing ownership change process. Thus, the agreement is another important step closer to finalizing a transaction aimed at enhancing Poland’s energy security and equitable transformation of the domestic energy sector.
Thanks to Bogdanka, we are providing a transitional fuel - coal during the transition of the energy sector. This way we ensure the energy security and sovereignty of the state and Poles. Without energy, there is no military action and there is no secure Poland. Congratulations to all parties. We are almost at the final stage of this project, the home run. All that remains is the formal signing of the share purchase agreement, but we will do this in the coming weeks
- said Jacek Sasin, Minister of State Assets.
At the same time, an agreement was signed between the Ministry of State Assets and the trade union organizations operating at LW Bogdanka, which emphasized the importance and legitimacy of taking action to protect the strategic company LW Bogdanka S.A. from possible privatization plans and to safeguard the legitimate interest of the social side in the event of implementation of such plans.
I think we can all have great satisfaction with the agreements signed today. After many months of tough talks, all parties succeeded: both the unions, the management board, Enea and the State Treasury. But the most important thing is that Bogdanka, the most efficient hard coal mine in Poland, remains in Polish hands and will continue to be the backbone of energy security in eastern and central Poland
concluded Michał Moskal, head of the Political Cabinet of Deputy Prime Minister Jarosław Kaczyński.
The third document signed today in Warsaw was an agreement between the management board of LW Bogdanka S.A. and the trade unions related to the Jubilee of the 40th anniversary of coal mining at the Bogdanka mine. By a decision of the Management Board of LW Bogdanka on 10 October 2023, the Company's employees will be paid the first installment of the ad-hoc award for the workers' contribution to the 40-year development and maintenance of the company's current good organizational and financial condition. In addition, the agreement included a package of employee arrangements related to the planned acquisition of a majority stake by the State Treasury.
Let me express my gratitude to all those who contributed to the signing of today's agreements. In particular, I thank Bogdanka’s trade unions for very good cooperation and partnership dialogue. Thanks to the signed documents, Bogdanka will strengthen its position among the national champions of the economy and secure its ambitious plans for transformation into a modern, multi-commodity conglomerate
said Kasjan Wyligała, President of the LW Bogdanka Management Board.
The discussions held earlier with the trade unions and today the signing of these documents bring social peace accompanying this transaction, because people need to know what awaits them and want to be protected during these transformations
argues Deputy Minister of State Assets Marek Wesoły.
Lubelski Węgiel Bogdanka S.A. is a leading hard coal producer in Poland that stands apart from its peers in terms of its modern and efficient mining. It is one of the largest Polish hard coal mines. Lubelski Węgiel Bogdanka S.A. chiefly conducts mining operations in terms of hard coal extraction, enrichment and sales. It supplies this raw material mainly to industrial offtakers. Supply contracts are long-term, and the product is sold to the commercial power sector and the industrial power sector.
The company has been listed on the Warsaw Stock Exchange since June of 2009. In August 2022, Lubelski Węgiel Bogdanka S.A. returned to listing on the WIG-ESG Index.
Since October of 2015 Bogdanka has been a member of the Enea Group, the second largest player on Poland’s electrical power market in terms of the generation of electricity, which manages the entire value chain on the electricity market ranging from fuel to the generation of electricity, distribution, sales (supply) and customer service.