Bogdanka coal assumes average level of output at approx. 8.2 mln tonnes/y in 2025-30

Between 2025 and 2035, the cumulative EBITDA is expected to amount to approximately PLN 8.2 billion (EUR 1.9 bln) and EBIT to PLN 3.9 billion (EUR 906.36 mln).

According to the plans, in 2025-2030, sales to customers outside the Enea Group are to increase to 2.1 million tonnes per year on average, against 1.2 million tonnes in 2024. In 2031- 2035, they are to rise to 2.4 million tonnes per year, generating approximately 46 percent of LW Bogdanka's commercial coal sales (up from about 15 percent in 2024).

The group plans to intensify its foreign sales, with a particular focus on Ukraine.

"The European Union's stricter approach to coal and the changes taking place in the energy sector are forcing us to modify our current strategy and focus on local initiatives that will secure the future of the mine and its employees," said Bogdanka's CEO Zbigniew Stopa, quoted in the press release.

"The potential for sales to the Ukrainian commercial, thermal and industrial power industry is estimated at several million tonnes per year. LW Bogdanka's competitive advantage in this direction is its geographic rent," the release indicated.

Bogdanka assumes that the average value of capital expenditure in 2025-2030 will be approximately PLN 679 million (EUR 157.8 mln) and approximately PLN 316 million (EUR 73.44 mln) in 2031-2035.

"The updated strategy assumes that optimisation measures will improve cash cost of production and EBITDA per tonne, despite declining mining volumes," said the deputy CEO Artur Wasilewski, quoted in the press release.

"Maintaining the profitability of the core business will enable the gradual financing of the transformation in line with climate targets, which will be reflected in increased Capex, Opex and Turnover ratios in line with the so-called EU Taxonomy," he added.

In order to increase mining efficiency, the group is planning to expand the coal heap to approximately 1 million tonnes and to purchase a new coal heap and build the necessary infrastructure for it. Improved energy efficiency and eliminating the inefficient processes are expected to contribute to a 20 percent reduction in energy consumption.

The strategy envisages a stronger link between development projects and initiatives and environmental and social objectives, including those set out in the EU Taxonomy.

LW Bogdanka's strategic energy transformation projects include investments in zero- and low-emission installations and sources, as well as the use of heat from the mine's underground waters to produce heat and cold.

seb/ ao/