Further to the decision of the Ministry of Environment delivered on 12 November 2014 to maintain the challenged decision of 5 September 2014 on refusal to grant a licence for extraction of hard coal in the “Lublin Coal Basin deposit — areas K-6 and K-7”, Lubelski Węgiel BOGDANKA S.A. hereby informs you that it will immediately file an appeal against this decision with the Provincial Administrative Court in Warsaw.
Despite challenging market situation and results being under the pressure of coal price drops, the Company’s profitability ratios remain at a level higher than average, which may be illustrated with EBITDA margin amounting in the third quarter of 2014 to 36.4%.
Lubelski Węgiel BOGDANKA S.A. hereby informs you that a collective dispute has arisen in participation of all trade unions operating at the Company. The dispute began due to a discrepancy of the parties’ positions regarding the amounts of increases in salaries in 2014.
Such a high yield in the third quarter was a result of launching, in September this year, of the new Mechanical Coal Processing Plant which is at the stage of a start-up.
The reasons for the Company’s repeated application include public interest, incorrect application of the provisions of the geological and mining law with respect to the licence by the licensing authority, and the fact that conducting exploratory works in an already explored area (to an extent sufficient for launching the mining), is groundless and delays the already possible mining in this area, which constitutes activity against economic interest of the State Treasury.