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LW Bogdanka SABogdanka coal works to attract new customers
Listed coal mining group Bogdanka, which has assumed in its strategy to double coal sales outside the listed power utility Enea by 2030, is working to win new customers, the group's representatives told a press conference.
"To face the challenges that are in the industry today, we need to take a very solid approach to sales and its new directions," said Bogdanka's deputy CEO Slawomir Krenczyk.
"The carbon cake in the market is shrinking. Demand trends are declining, and we assume that this will continue in the coming years in the perspective of the strategy," he added.
Currently, the primary customer for Bogdanka's coal is listed power utility Enea, the majority shareholder of the Lublin mine. Each year, Bogdanka sells around 80 percent of its output to Enea. Meanwhile, the Enea group has assumed in its strategy a decrease in demand for coal.
"We want to respond to this by increasing our sales commitment in markets outside the group. In the perspective of the next five years, we want these sales outside the Enea group to increase from just over 1 million tonnes to slightly more than 2 million," deputy CEO Krenczyk told the conference.
"(...) in the perspective after 2030, our aspiration is even in the vicinity of 2.5 million tonnes of sales outside the Enea group, which, in a perspective of 10 years from now, will translate into such a division of sales that half of our coal will be produced for the needs of the capital group and the other half for the needs of other customers," he added.
As Krenczyk reported, Bogdanka supplies coal to industry, heating and power generation. The company is working on strengthening its relations with existing customers, as well as acquiring new contracts.
"Today Bogdanka has about 40 large customers, about 2,000 customers from the smaller business sector of the utility segment. Our sales services are working all the time to review the market so that new opportunities open up, and this is already happening today," the group's deputy CEO pointed out.
"New contracts in new directions are being created, or will be done in a while,"he added.
Bogdanka sees opportunities to increase sales to the eastern market, to Ukraine.
"We are in Ukraine. Today, offtakes on the Ukrainian side are lower than we would like, which is due to the war. We all believe that this situation will change and that these opportunities will open up in the near future," Krenczyk said.
He added that the group is diagnosing the potential for geographic annuity on coal sales up to a distance of about 650 kilometres.
pel/ ao/
