Bumech Group, which operates hard coal mining activities at the Silesia mine in Czechowice-Dziedzice, has announced that the Administrator representing PG Silesia has submitted a Restructuring Plan to the Katowice-East District Court. The plan outlines a set of remedial measures aimed at restoring PG Silesia’s full debt-servicing capacity, achieving sustainable profitability, and laying the groundwork for further development between 2025 and 2030.
“This is a sound plan that the Company intends to implement once it receives court approval. Its assumptions are based on our production capabilities and realistic potential, which together provide our mining facility with a necessary long-term operational outlook. This is crucial for our employees, the local community, and our shareholders. We hope that the planned actions will allow us to restore profitability and meet our financial obligations,” said Andrzej Bukowczyk, Vice President of Bumech S.A.
Despite being under restructuring proceedings, PG Silesia continues coal extraction operations, focusing on deposits with the highest calorific value, for which market demand remains stable. Decisions to open new mining areas are made flexibly, taking into account current market prices, as well as geological and investment conditions.
“The Restructuring Plan envisions mining operations based on a single longwall system and the gradual opening of new coal seams, while maintaining the shortest possible intervals for wall retooling. These are optimal assumptions,” Bukowczyk added.
It is also worth noting that in early June, Poland’s Supreme Administrative Court (NSA) ruled on two cases concerning PG Silesia’s mining license for the Goczałkowice area. The Court rejected a 2013 motion to revoke the license within the spa municipality of Goczałkowice-Zdrój and also dismissed a case initiated in 2019 regarding the license extension until 2044. The Court reasoned that the municipality could not claim legal interest based on functional norms related to its spa status, and that landowners could not object to mining activities.
The adopted and already ongoing restructuring measures are yielding initial results. In Q1 2025, Bumech Group reported an operating profit of PLN 4.3 million, compared to a loss of PLN 30.9 million in the same period in 2024. The Group’s EBITDA for the first three months of 2025 amounted to PLN 12.3 million. These results were achieved despite a 43% year-over-year drop in revenue, totaling PLN 87.1 million. The consolidated net loss stood at just PLN 0.4 million, a significant improvement from the PLN 31.4 million net loss reported a year earlier. Thanks to effective cost-cutting measures, the Group also reported PLN 11.3 million in positive net cash flow from operating activities and PLN 7.2 million in total net cash flow.
