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Lubelski Węgiel
Lubelski Węgiel Bogdanka S.A.

Continued and transformed – LW Bogdanka’s new Strategy until 2030

Thursday, 2020-12-17

The Management Board of LW Bogdanka S.A. adopted a resolution on approving new strategy adopted by the Company’s Management Board. It is a response to dynamic changes in the domestic and international markets in 2020. The Company decided to verify the assumptions made with respect to the development strategy adopted in 2017 by revising it until 2030 under the 2040 framework.

The adopted Strategy reflects the assumptions of Poland’s 2040 Energy Policy and constitutes a link in the area strategy of the Enea Group until 2030 (under the 2035 framework) as it covers also activities to meet the assumed demand for thermal coal on the side of power and cogen plants from the Generation Area of the Enea Group.

The document is based on developed forecasts, such as Poland’s 2040 Energy Policy, The National Energy and Climate Plan for the period 2021-2030. The Company will aim to become the most cost-efficient producer of thermal coal in Poland, who can successfully compete with other coal producers and suppliers while maintaining the current production potential under the 2040 framework by adjusting to requirements of Poland’s energy transition, said Artur Wasil, the President of the Management Board of LW Bogdanka S.A.

According to the Company’s vision Bogdanka will remain the efficiency leader in the mining sector with the highest work safety standards, who flexibly adjusts to environmental requirements and market conditions, and builds “Green Deal” as part of diversification of business activity. The Company proves that it is a reliable supplier of coal for commercial power plants, able to maintain its competitive advantage and to ensure continuous increase in the value of the Company, while improving its work safety and environment protection standards, and implementing innovative solutions.

Bogdanka plans to seize the opportunities offered by the mining license for Ostrów and “K-6, K-7” deposits. The use of new deposits from the existing infrastructure allows the Company to assume maintaining the production level of 8.8 million tonnes, on average, in the 2040 framework, while in 2021-2025 it shall amount, on average, to 9.7 million tonnes.

The key purpose of the Company in relation to the new Strategy is to increase the number of products on offer and diversify the areas of business activity. In 2021-2025 we will produce exclusively thermal coal, while between 2026 and 2040 also coking coal will be extracted (type 34). Due to length of walls reaching 6-7 kilometers in the abovementioned seams, which is an innovation in Poland, but typical of global mining, the Company assumes higher excavation concentration and lower cost of mining which will allow it to successfully compete with coal providers, especially from abroad.
The Company also assumes the increase in share in revenue on initiatives outside of core business up to 30% until 2040. The change of revenue structure will be made in stages (5% in 2025, 10% in 2030)
, explained Dariusz Dumkiewicz, the Vice-President of the Management Board of LW Bogdanka in charge of Development.

Because of its crucial importance to the region, one of the Company’s goals, as always, is to run its business operations in compliance with the rules of corporate social responsibility (CSR), which include ensuring the highest work safety standards, environmental effectiveness, protection of local biodiversity, stimulation of development and a guarantee of security for local communities, as well as the effective management of relationships with all groups of stakeholders – all these in line with the principles of sustainable growth.

Further details concerning the new Strategy will be announced on the planned press conference (its date will be provided in a separate E-mail), the report, on the other hand, is available on our website www.lw.com.pl

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