According to leading domestic coal producers, Poland's coal production is likely to fall in 2012 as a result of new mining legislation due to be introduced next year.

Polish producers, including the country's two largest mining companies Kompania Weglowa and Katowicki Holding Weglowy have expressed their concerns that the new legislation to increase monitoring of air pressure, methane content and air temperature in mines will affect output significantly. The exact details of the new restrictions have not yet been disclosed. The new legislation was approved by the lower chamber of Poland's parliament in April and is likely to be introduced in January 2012.

Mr Roman Loj KHW's chief executive said that “The new law will have a tremendous impact on mining. All the producers will need to comply with the new rules and that might delay production or even halt it in some mines.”

Polish producers have struggled to hit their quarterly output targets this year because of the rising costs of deep mining.

An analyst said that “Production is getting very expensive. Access to deeper coal beds is difficult and requires special equipment, increasing the cost.”

The rising costs of deep mining have already affected the country's imports. Poland has imported over 8 million tonne of coal so far this year, and the full-year figure is likely to exceed 12 million tonne.

(Sourced from argusmedia.com)