Feb 9 • 10:10 UTC 🇵🇱 Poland Rzeczpospolita

PGG again needs state aid. Cost-cutting continues

Polska Grupa Górnicza (PGG) requires additional financial support from the government due to declining coal production and market challenges.

Polska Grupa Górnicza (PGG), the largest coal mining company in Poland, is facing significant challenges as its production has fallen sharply over the years, with coal output nearly halving compared to a decade ago. In 2025, PGG reported a production of 14.9 million tons of coal, making up 48% of the market, a stark contrast to the historical levels of production that once reached 31 million tons for energy needs. This decline in output is largely attributed to rapid transformations within the energy sector and a decreasing role of coal in Poland's energy mix.

In light of these challenges, PGG is actively seeking financial assistance from the state to sustain its operations and manage the economic difficulties stemming from falling coal prices. The company's strategies include cutting costs and adjusting its operational structure, which involve changes in workforce dynamics and the implementation of social programs for its employees. This situation is not only critical for PGG but for the entire coal industry in Poland, as it highlights the broader implications of energy transitions and market fluctuations on traditional energy sources.

The reduction in PGG's coal production raises questions about the future of coal as a primary energy source in Poland, especially as global trends shift towards more sustainable energy solutions. The government’s support for PGG is essential, not only for the company's survival but also for the stability of jobs and communities dependent on coal mining. The ongoing developments in the sector will be crucial to watch, as they may set a precedent for how traditional energy industries adapt to a changing economic landscape and energy policies.

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