2011
      
      
        LW „BOGDANKA” S.A.
      
      
        
          9
        
      
      
        Lublin. These actions allowed to apply for a concession for 
      
      
        exploitation of seams 382, 358/2, 389 and 391 to Minister 
      
      
        of Environmental Protection in the new, broadened mining 
      
      
        area “Puchaczow V”.
      
      
        It should be mentioned that in two new, lower-laying 
      
      
        seams expected for exploitation (389 and 391) the coal is 
      
      
        of better quality than in seams exploited at the moment. 
      
      
        Apart from steam coal, coking coal is also present. Coking 
      
      
        coal (so-called type 34 coal) reserves in two aforemen-
      
      
        tioned seams in the area expected for acquisition are ca. 
      
      
        57 million tonnes.
      
      
        COAL PRODUCTION AND MARKET SHARE
      
      
        Coal is the main energy resource in Poland. About 96% of 
      
      
        electricity is produced from coal and this number divides 
      
      
        into ca. 63% of energy produced from hard coal and ca. 
      
      
        33% produced from lignite. The role of coal as a primal 
      
      
        energy carrier in state energy safety is increasing because 
      
      
        of the vast coal reserves in Poland, especially in a situation 
      
      
        when prices of other energy carries, particularly of oil and 
      
      
        gas, keep rising.
      
      
        According to the estimates made by International En-
      
      
        ergy Agency which have been confirmed with the predic-
      
      
        tions of Ministry of Economy, the share of coal in energy 
      
      
        resources consumption structure will remain unchanged 
      
      
        until at least 2020. This creates an opportunity for Polish 
      
      
        hard coal mining industry, especially when the final energy 
      
      
        consumption (namely energy consumed by households 
      
      
        and enterprises) is to rise by ca. 44% until the year 2030 in 
      
      
        comparison to 2005.
      
      
        Lubelski Węgiel „Bogdanka” S.A. is one of hard coal 
      
      
        market leaders, distinguishable among other producers 
      
      
        by achieved financial results, efficiency of coal exploitation 
      
      
        and investment plans that assume making new deposits 
      
      
        accessible.
      
      
        Steam coal sold the company is used mainly for the 
      
      
        production of electricity, heat and cement. Industrial 
      
      
        consumers are the most important clients of the com-
      
      
        pany (88% of sales), particularly power plants located 
      
      
        in Eastern and Southern Poland (Kozienice Power Plant, 
      
      
        Połaniec Power Plant, Puławy Nitrogen Plant, Ostrołęka 
      
      
        Power Plant).
      
      
        The Group predicts that the realization of investment 
      
      
        plans of the company (accessing new coal deposits and 
      
      
        starting exploitation in Stefanow field) will allow to increase 
      
      
        market share of LW Bogdanka in hard coal market in Po-
      
      
        land to 12% in the year 2014.
      
      
        DEVELOPMENT OF STEFANOW FIELD
      
      
        To ensure long-term development perspective of Lubelski 
      
      
        Węgiel „Bogdanka” S.A., increase its market share as well 
      
      
        as its position in the industry, in the region and particularly 
      
      
        in order to create the possibility for unit cost reduction of 
      
      
        coal exploitation and therefore for increasing its competi-
      
      
        tiveness, in 2004 a complex development plan for the mine 
      
      
        has been prepared.
      
      
        In the first half of 2006 the programme was verified and 
      
      
        called “Development Strategy for Lubelski Węgiel „Bog-
      
      
        danka” S.A. for the years 2006-2014 on the basis of Ste-
      
      
        fanow Field development”. The document was accepted 
      
      
        by the Board of Supervisors. The Strategy assumes that 
      
      
        present production capability will be doubled in 2014.
      
      
        In order to create a possibility for such intensive devel-
      
      
        opment of the company two actions will be necessary:
      
      
        making lower-laying seams 389 and 391 accessible 
      
      
        • 
      
      
        and their exploitation
      
      
        extending mine’s mining area towards South and 
      
      
        • 
      
      
        acquiring part of K-3 area
      
      
        Significant part of reserves located in those seams is depos-
      
      
        ited in the Southern part of the mine and in K-3 area. There-
      
      
        fore in the future it will be reasonable to move the exploitation 
      
      
        from Bogdanka to Stefanow. Expanding mining area towards 
      
      
        South through acquisition of a part (ca. 20 km2) of K-3 area 
      
      
        will allow exploitation of interesting seams (385/2, 389 and 
      
      
        391) with reserves about 100 million tonnes.
      
      
        The turn of September and October 2011 will become a 
      
      
        historical date for the builders of Stefanow field and whole 
      
      
        LW Bogdanka SA company as on 30th September 2011 
      
      
        Mining Council for Energomechanical Devices Control in 
      
      
        Katowice granted its permission for exploitation of skip 
      
      
        hoist shaft in Stefanow and therefore this decision finished 
      
      
        the construction period.
      
      
        Simultaneously, plough longwall 7/VII in seam 385/2 
      
      
        (G-1 section) has been launched. The longwall will use the 
      
      
        newly-opened shaft for hoisting the winning.
      
      
        The beginning of October 2011 has therefore become 
      
      
        the starting period for hoisting coal using shaft 2.1 in Ste-
      
      
        fanow field.
      
      
        During its mining operations so far, “Bogdanka” mine has 
      
      
        achieved high concentration of production, high efficiency 
      
      
        and positive economic results when exploiting seams of 
      
      
        thickness exceeding 1,6 m with the use of shearer tech-
      
      
        nology. This technique allows to achieve daily production 
      
      
        reaching 20000 tonnes in longwall with 2,0-2,5 m height and 
      
      
        up to 15000 tonnes/day in 1,6-1,8-meter-high longwalls. 
      
      
        In a long perspective present state will not be sufficient 
      
      
        for maintaining of such high mine production as many mil-
      
      
        lions of tonnes of reserves, favourably located near the 
      
      
        shafts could not be mined only because the thickness of 
      
      
        the seams is slightly lower than allowed by shearer tech-
      
      
        nique (1,6 meter). This applies to both the presently mined 
      
      
        seam 385/2 and perspective seams 389 and 391.
      
      
        Exploitation of seam 385/2 in Stefanow field is conduct-
      
      
        ed with the use of plough complex bought by the company 
      
      
        in 2010 from Bucyrus. This device reached a world record 
      
      
        of productivity when daily output reached 16,8 thousand 
      
      
        tonnes. After modernization the complex has been in-
      
      
        stalled in Stefanow. The longwall prepared for mining is 
      
      
        305-meter-long and its panel length is 5070 meters. After 
      
      
        the start-up phase and optimizing parameters of particular 
      
      
        devices, the company achieved target production of 10 
      
      
        thousand tonnes/day.
      
      
        international mining forum