OPPORTUNITIES AND THREATS FOR HARD COAL MINING IN POLAND

LIDIA GAWLIK
2017 Humanities and Social Sciences quarterly  
In the recent years, hard coal mining in Poland has been is in a deep crisis, which would have led to a number of bankruptcies if no countermeasures had been taken. The mentioned actions, though still insufficient, stabilized the situation. However, there is still a lot to do. Further steps, aimed at carrying out a radical reform of the hard coal mining and to build a profitable, efficient, and modern sector, are needed. In order to develop the strategy for the hard coal mining industry, a
more » ... osis of the present state and identification of the conditions in which it is functioning and will function in future is necessary. This can be done by analyzing the strengths and weaknesses of mining companies − taking into account internal conditions, as well as opportunities and threats − identified as objective, external conditions of the mining environment. There is a relative balance between the weak and strong sides of mining, but the biggest problem that needs to be solved is the high cost of production. The primary cause of the crisis, threatening the future development of the industry, is the situation in the world and domestic coal markets. The oversupply of coal and its low prices are the reasons for current production losses, menacing the viability of the industry. The fact that the majority owner of mining entities is the State (pursuing a favorable policy towards the industry, taking rescue actions, and introducing legal solutions for the sector) is a chance for a positive outcome. The rationale for such an attitude is the conviction that the energy security of Poland can be strengthened by the use of indigenous resources. In the long-term profit and loss account, further support for the sector, including tax reliefs, should be considered due to the fact that the potential liquidation of mining would not only result in high losses in the area of energy security, but would also bring negative social consequences, devastating effects on the mining region, and a loss of revenue for the state and local budgets.
doi:10.7862/rz.2017.hss.20 fatcat:twrlu5t565a6lgaxuxghinfurq