Coal is the most prevalent energy resource in the Visegrad countries, although its role as a fuel and as an industry has declined over the past decade. In 1993, for example, coal accounted for 58.4 percent of the Group’s combined total primary energy consumption and in 2003, for 45.3 percent. Poland is the exception, where coal accounted for 93 percent of the country's primary energy production in 2003, and remains one of the country's most important employers. Coal also remains significant in the Czech Republic, where it constituted 44.2 percent of the primary energy consumption in 2003.
The region holds 25,442 million short tons (Mmst) of proven recoverable coal reserves, of which Poland has 15,432 Mmst. The Czech Republic contains 6,120 Mmst; Hungary 3,700 Mmst; and Slovakia 190 Mmst. In 2003, the region produced 266.2 Mmst, of which Poland was responsible for 67 percent with 177.8 Mmst. The Czech Republic had 70.4 Mmst, Hungary had 14.2 Mmst, and Slovakia had 3.4 Mmst.
Coal consumption has generally decreased in the region over the past ten years. Between 1993 and 2003, coal consumption fell by 21 percent in Poland, 26 percent in the Czech Republic, 18 percent in Hungary, and 37 percent in Slovakia. In 2003, total coal consumption for the region was approximately 244 Mmst, an increase of 2.1 percent year-on-year.
Restructuring
Over the past decade, the Visegrad countries have continually restructured and downsized their coal industries by reducing the number of inefficient mines in operation, cutting the labor force associated with coal mining, and increasing awareness of environmental issues related to the industry in line with EU standards.
In Poland, the coal industry is one of the country’s largest industries and employers, but inefficiencies have resulted in large annual losses, spurring the government to reform the sector. In 1998, the government introduced a five-year (1998-2002) Hard Coal Sector Reform Program which reduced employment from 248,000 to 140,000 at the end of 2002. In November 2003, the government introduced a second program to further consolidate and reform Poland’s coal sector – Program of Restructuring of the Hard Coal Mining Sector for 2003-2006. The program is closing inefficient mines and reducing employment on a voluntary basis. For those who voluntarily leave, the government is providing various benefits, such as retraining, assistance in finding employment, social hardship allowances, and early retirement pensions. The program also aims to privatize the country’s coal industry by 2006. In April 2004, the World Bank provided Poland with a loan of $160 million to support the country’s restructuring program.
According to the Czech Republic’s State Energy Policy (Government Decision No. 211 – March 10, 2004), coal, particularly lignite, will remain the country’s primary energy source in coming decades, despite increased use of natural gas and nuclear energy. The government expects coal, including black (hard) and brown (lignite), to account for 30.5 percent of total consumption in 2030. In line with EU regulations, the government lifted quotas on coal imported from Poland and Ukraine, as of January 2004. The decision was welcomed by Czech steel makers, which now have access to cheaper coal, namely Polish. Prior to this decision, steel makers, such as ISPAT NOVÁ HUŤ, were required to buy a large portion of its black coal requirements locally.
The Czech Republic’s coal industry consists of six companies: three hard coal (black) mining companies (Ostrasko-Karvinske Doly; Ceskomoravske Doly; and Zapadoceske Uhelne Doly); and three lignite (brown) mining companies (Mostecká uhelná společnost, Severoceske Doly, and Sokolovska uhelna).
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