Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.
The boards of JSW and Kompania Weglowa signed the deal, worth 1.49 billion zloty ($494 million), on April 10, the latter said in a release published on the company’s website on Friday April 11.
Completing the deal will require approval from Poland’s Office of Competition & Consumer Protection, among other conditions that have to be fulfilled by July 31 this year.
The Knurow-Szczyglowice mine in southern Poland has production capacity for 3.8 million tpy of coal, of which 40% is coking coal. It has 119.7 million tonnes of current coal resources.
Funds from the sale of the mine are seen as a key to continuing operations at Kompania Weglowa, the miner said in a January press release. It has been struggling with profitability amid falling coal prices.
In February, it signed with trade unions a company restructuring agreement, involving job cuts, in a bid to make a total of 1.2 billion zloty ($398 million) in savings by 2020.
Warsaw-listed JSW is a major European coking coal and coke producer, and also mines steam coal. It presented a net positive result of 82.2 million zloty ($27.25 million) and sold 14.4 million tonnes of coal in 2013.
JSW did not respond to requests for comment at the time of publication.
Polish coking coal miner Jastrzebska Spólka Weglowa (JSW) has signed a preliminary agreement to buy the Knurow-Szczyglowice coal mine from ailing state-owned producer Kompania Weglowa.