Poland's April coal stockpiles more than tripled year on year to 7.75 million tonnes as demand for electricity fell by almost 10% due to the new coronavirus pandemic, government data showed on June 4.
Poland generates most of its electricity from coal, but demand for the fossil fuel has slumped during the coronavirus lockdown as the country has been using less power, producing more green energy and increasing electricity imports.
Coal stockpiles are the highest since 2015, when the industry was in the middle of the last crisis, Industrial Development Agency data showed.
January-April coal sales by Polish mines fell by 3.5 million tonnes to 16.8 million tonnes, said the State Assets Ministry, which supervises the industry.
It said the value of unsold coal exceeded 900 million zlotys ($230 million).
In an e-mail sent to Reuters on June 3, the ministry said it was working on a restructuring plan for coal mining which assumes that not a single miner will lose his job.
Sources said that the government is considering closing at least three coal mines in the coming months as the coronavirus pandemic forces it to accelerate its exit from the sector.
"The plan is being worked out due to the crises, which hit the coal industry hard. The EU's climate policy and low commodity prices have a major impact on the industry's situation. The pandemic has deepened the crisis," the ministry said.
It said that the restructuring plan will have to guarantee that profitable coal mining is able to function in market conditions.
Some mines were temporarily closed in May due to the rapid growth in the number of coronavirus cases among miners.
More than 4,000 miners have tested positive for the novel virus to date.
In 2019 hard coal output in Poland amounted to almost 62 million tonnes, half of which was produced by state-run mining group PGG.
(Writing by Becky Du Editing by Tammy Yang)
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