Economic situation of hard coal mining industry in Upper Silesian Coal Basin

Abstract

Article aims at investigating the economic situation of hard coal mines localized in Upper Silesian Coal Basin in Central Europe. It is interesting to compare financial situation of four chosen entities that do business in two neighboring countries: the Czech Republic and in Poland. Special focus was paid to legal status of mining companies, scope of their activities, profits gained, employment level, and effectiveness of coal sale. In conclusion authors state that although hard coal mining is important so as to provide uninterrupted supplies of coal for state energy sector, it shall meet a free market requirements regarding economic effectiveness. As two out of four entities encompassed in the study have been privatized and are competitive coal producers, authors suggest using their experience in order to improve unfavorable financial situation of two remaining entities. Nationality distinction of entities seems to be less important than ownership classification of hard coal mining enterprises operating in Upper Silesian Coal Basin.