Coronavirus pushes Big Coal closer to collapse

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Coronavirus pushes Big Coal closer to collapse
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The coronavirus crisis is causing serious harm to some of Europe's largest coal producers

The unions gave the government and PGG’s management until May 4 to table a plan that would address the company’s deeper problems and guarantee jobs.

PGG’s management insists that the company will be in even more trouble if workers don't agree, arguing that the union counterproposals fall 100 million złoty short of the company's plan.The slump in demand for domestic coal, which generates 74 percent of Poland's electricity, has left at least 16 million tons of coal piled up across Poland, enough to power the country's coal-fired plants for six months, Wysokie Napięcie calculated.

“The current crisis could give CE Oltenia sort of a short-term lifeline with the government wanting to avoid any trouble that it can and also because investment in green energy is also going to be hampered,” said Radu Dudau, director of energy Policy Group, an energy think tank.Even if management reaches an agreement with unions at PGG, the peace that it will buy is going to be only temporary, said Joanna Maćkowiak-Pandera, CEO of Forum Energii, a Polish think tank.

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