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2016-12-29

LW Bogdanka extends the agreement with Energa Elektrownie Ostrołęka until 2019

The Lubelski Węgiel Bogdanka Group has signed an annex to the Long-Term Agreement for Sale of Thermal Coal with ENERGA Elektrownie Ostrołęka S.A. The Annex extends the term of the Agreement until the end of 2019 (initially, the Agreement was to end on 31 December 2016) and sets forth the terms and conditions of supplies in 2017.

As a result, the current value of the entire Agreement (in effect from 1 January 2011 to 31 December 2019) amounts to PLN 1.33 billion net (without regard to possible increases, deviations and tolerance), which represents an increase of 12% as compared to the amount specified in Report No. 53/2015). The value of the Agreement in 2017-2019 will total PLN 134 million net.

 

“By extending the agreement for the supply of coal to the Ostrołęka Power Plant until 2019, we have taken yet another step towards securing long-term extraction at LW Bogdanka. In the second half of this year, we have also concluded another three important annexes to agreements with our key customers. The first one was concluded with the Enea Group for 20 years. Within the first 10 years of the contract, Bogdanka will sell 5 million tonnes of coal per annum to Enea. The second one is a five-year contract concluded with the Połaniec Power Plant. The third one is a contract with Grupa Azoty Zakłady Azotowe Puławy which has been extended until 2021. As a result, we begin the new year with a sound basis for long-term planning of production, employment and preparatory works. This, in turn, will make it easier for us to control the costs, which is a matter of particular importance in the context of the current complex situation on the Polish coal market,” said Krzysztof Szlaga, President of the Management Board of Lubelski Węgiel Bogdanka S.A.