Hard coal sales

Discontinued Operations Sales of generated electricity and heat

At TAURON Capital Group, coal sales are carried out by TAURON, with respect to supplying the generation subsidiaries of TAURON Capital Group, and by TAURON Wydobycie, with respect to the sales on the domestic market and to TAURON.

With a view to implementing its tasks with respect to the fuel (hard coal) trading, TAURON continued, in 2020, to sell the fuels solely to TAURON Capital Group’s subsidiaries, i.e. TAURON Wytwarzanie, TAURON Ciepło and Nowe Jaworzno Grupa Tauron, based on the purchase of fuels on the market and from within TAURON Capital Group – from the TAURON Wydobycie subsidiary.

Summary of the Company’s 2020 coal shipments (Mg m)

TAURON Wydobycie is selling coal from its own extraction and production, offered for sale on the market in coarse, medium coal assortments and as steam coal dust as well as methane being the accompanying mineral from the Breszcze deposit.

Depending on the hard coal assortment, coal has the following commercial parameters:

  1. calorific value from 19 MJ/kg to 30 MJ/kg,
  2. ash content from 6.5% to 31.5%,
  3. sulfur content from 0.2% to 1.2%.

TAURON Wydobycie conducts the sales of hard coal in 2 directions:

  1. sales of fine coal (coal dust) and coal sludge to the power plants and combined heat and power plants, mostly within TAURON Capital Group (via the Company),
  2. sales of large and medium size lump coal as well as a small amount of coal dust assortments through the nationwide organized sales network, primarily on the domestic market.

TAURON Wydobycie is selling coal mainly in southern and central Poland, in particular in the following regions (provinces): Silesia, Małopolska, Podkarpacie, Świętokrzyskie and Lower Silesia, both to the enterprises as well as the individual consumers.

In 2020, the hard coal sales by TAURON Wydobycie to TAURON Capital Group’s Generation Segment companies reached approx. 4.1 million Mg in 2020, including 3.3 million Mg (approx. 80%) to TAURON for the needs of TAURON Capital Group’s Generation Segment subsidiaries. It means an 8% increase as compared to 2019 and is due to the higher commercial coal production by the individual coal mines.

An increase in the production was recorded at the Janina Coal Mine (ZG Janina) and the Brzeszcze Coal Mine (ZG Brzeszcze), which was due to a more favorable arrangement of the longwall (coal face) fronts than in 2019. The lower production at the Sobieski Coal Mine (ZG Sobieski) is a consequence of a smaller number of the longwall faces.