Reuters reported that Poland's treasury ministry received two binding offers for 85% stakes in lignite coal mines Konin and Adamow, with one of them coming from a major client, power group ZE PAK, which is also being privatized.

The ministry said that the other bid was placed by Spolem Plus, which the local media have linked to unidentified Israeli and US capital.

In November the treasury, which supervises state controlled companies, permitted both companies to run due diligence on the two mines, which had been put up for sale.

Konin and Adamow are among four lignite mines operating in Poland, which produces 33% to 35% of its energy from lignite. This soft coal is the second most important source of energy in the country after hard coal. The treasury did not reveal the value of the bids.

In 2010 the Konin mine posted a net profit of PLZ 32 million (USD 9.9 million), earnings before interest, depreciation and amortisation of 102 million and revenue of PLZ 603 million.

The smaller Adamow mine posted a net profit of PLZ 10 million EBITDA of 36 million and revenue of PLZ 298 million in 2010.

ZE PAK, in which the state holds a 50 percent controlling interest, is to be listed on the Warsaw Stock Exchange, according to a deal signed in June 2011 by the Treasury and Elektrim, which has operating control over ZE PAK with a 47.4% stake.

(Sourced from Thomson Reuters)