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2018-05-11

LW Bogdanka applies for licence for coal extraction from the K-6 and K-7 deposits

LW BOGDANKA S.A. has filed with the Minister of the Environment an application for a mining licence for extraction of hard coal from the K-6 and K-7 deposits, located in Lublin, within the projected mining area “Cyców”. It is directly adjacent to the "Puchaczów V" area, currently mined by Bogdanka.

The exploitable resources covered by the Deposit Development Project in the licence period, for which the Company applies, namely until 2046, are estimated at 66 million tonnes. Bogdanka also plans to apply for the extension of the licence, which will enable the resources to be increased by further 60-70 million tonnes. Expansion of resources by 66 million tonnes would mean longer life of the mine by approx. 9 years. The first wall on the K-6 and K-7 deposits may be started in 2022, assuming that licence will be granted even this year.

Lubelski Węgiel Bogdanka is currently operating on an area divided into three mines. The main one is located in Bogdanka, and the peripheral ones – in Nadrybie and Stefanów.
 

Outer walls in Stefanów are just 500-600 metres from K-6 and K-7. Mining in this area would mean synergies translating directly into the effectiveness of Bogdanka's extraction. In the strategy published last year, we confirmed our interest in this deposit as a potential further area of mining, after obtaining licence for the "Ostrów" deposit  – says Artur Wasil, President of Bogdanka's Management Board.

We decided that the most effective solution would be to develop 66 million tons in the first phase, that is half of the deposit’s resources, since this is the amount of coal we are able to extract under the K-6 and K-7 licence based on the existing infrastructure. In the next stage, after completion of works related to the vertical access of the "Ostrów" deposit, we will consider the construction of a shaft – the President added.


In November 2017, Bogdanka obtained licence for extraction of hard coal from the “Ostrów” deposit, where mining is also planned in two stages. The first one assumes mining based on the existing underground infrastructure. Launching the first wall is scheduled for 2020. In the next turn, between 2025 and 2030, vertical deposits are planned to be made available for mining and the necessary facilities and technical infrastructure will be built.

To ensure new exploitable resources and to double the total exploitable resources within the framework of the current strategic perspective until 2025 are among Bogdanka’s top priorities. After obtaining access to the “Ostrów” deposit, the Company’s resources increased by approx. 172 million tonnes. In addition, the Company wants to expand the resources of the “Bogdanka” field by about 33 million tonnes. As a consequence of only these two projects, in total, the Company will increase its resources from the present approx. 227 million tonnes to about 446 million tonnes. Assuming the annual production at a level of approx. 9 million tonnes, the mine will be able to continue its operations for about 50 years (as compared to the expected life span of about 25 years at present), i.e. by 2067. Obtaining the mining licence for the extraction from the K-6 and K-7 deposits would mean longer life of the mine by another 9 years.

 

Granting the next licence to Bogdanka, one of the strategic coal suppliers on the domestic market as well as one of the most important companies in Lublin, would be beneficial from the public interest point of view. It would also mean longer life of the mine which conducts mining by applying cutting-edge technologies with respect for environment, while maintaining care for rational mining – said Artur Wasil, President of Bogdanka's Management Board.


The licence documentation includes: information on the manner of the intended extraction and the degree of resources use, the deposit development project with the indication of mining technology (ensuring the reduction of negative impacts on environment) and the decision on environmental conditions (based on the prepared environmental report). When filing the application, it is necessary to submit the decision approving the geological documentation and the document confirming the right to use such information (based on an agreement with the State Treasury). In addition, the documentation includes the information that the entity has financial resources to ensure the correct performance of works covered by licence.

The next step, after obtaining the mining licence, is to sign an agreement on mining use with the Ministry of Environment.