Czechowice-Dziedzice, 9th of December 2015

On 9th of December 2015 it has been 5 years since signing a disposition contract between PG SILESIA and Kompania Węglowa, under which PG SILESIA took over all operations of KWK 'SILESIA'. Within 5 years a mine, which had gone bankrupt and had been intended to liquidation, has undergone deep restructuring process and - as a result – now it may be an example of well-functioning company.

A few years ago KWK 'Silesia', located about 40 km from the Polish-Czech border, was recognized by the authorities of Kompania Węglowa to be permanently unprofitable. As a result, a mine was supposed to be liquidated. In 2009 several trade unions' members set up an employee-owned company, which main goal was to save a mine and workplaces, so important for the region. With a powerful investor, a group Energetický a průmyslový holding a.s., PG SILESIA acceded to a tender for the purchase of KWK 'Silesia'. And so, after series of meetings and negotiations, on 9th of December 2010 Kompania Węglowa and PG SILESIA concluded a contract, whereby KWK 'SILESIA" became entirely private mine.

In 5 years the Czech group EPH has invested over a billion PLN in the development of the mine. The largest investments were made in 2011-2013, when 4 roadheaders with equipment and two modern longwall sets were bought. The existing underground infrastructure was modernized and many kilometers of new excavations were drilled. In those years also the Treatment Plant was modernized and a new underground bunker was built. At the beginning of 2013 new changing rooms were given into use of the employees and in the summer fully refurbished shaft no. 2 officially started its operation. All these investments were aimed at restoring production capacity of over the hundred-year-old mine.

In 5 years an employment level grew from 738 employees (acquired from Kompania Węglowa in 2010) to approximately 1 700 at present. In 2012 the Collective Labour Agreement was signed, thanks to which the Company offers modern solutions in the field of remuneration and hiring employees. Also system 24/7 operation, an unprecedented in Polish mining, was introduced.

The past few years have brought also a number of awards and prizes for PG SILESIA. For the year 2012, the Company was honored with the title 'The one who changes Polish industry" for indicating by a private investor – Czech group EPH - a new direction of comprehensive changes in the coal mining industry. A year later, PG SILESIA was awarded the title "Leader of Corporate Social Responsibility" in the category of a GOOD EMPLOYER. In 2014 the mine was awarded the local economic award 'CZECHOSŁAW 2014', which is given to the companies that while doing business contribute to building a positive image of the municipality, take an active part in its social life and their activity is carried out with respect for ethics.

PG SILESIA is a special mine on the map of Polish mines. Determination of the crew, their struggle to maintain workplaces and also outstanding commitment in doing everyday activities after the acquisition is an example worthy of emulation. In the last five years PG SILESIA has proven that it was worth to invest millions to restore the life of the mine. Today, despite a very difficult situation on the coal market in Poland, PG SILESIA is a model of a well-functioning and modern enterprise. The proof of this is the fact that the efficiency of our mine is on the level of almost thousand tons of net coal per an employee - so one of the best results in Poland. And in this direction we will follow in the coming years - we want to be a modern, effective, and most importantly – safe mine – summarized Michal Heřman, Chairman of the Board of PG SILESIA.



Małgorzata Bajer
PR and Communications Director