Ukrainian Coal Energy negotiates coal mining operations in Poland with Siltech

Coal Energy S.A., a coal company registered in Luxembourg with its main assets formerly located in Ukraine and now under Russian occupation, signed a letter of intent in mid-April with Polish mining company Siltech to lease its facilities and infrastructure for coal mining in Poland.

"The primary goal of this letter of intent is to advance Coal Energy's plan to apply for a license to mine coal from deposits adjacent to Siltech's current mining sites," the company said in a stock exchange disclosure.

The lease is expected to begin at the end of 2025, once Coal Energy obtains all the necessary permits to start coal extraction from licensed fields.

Coal Energy plans to use Siltech's existing mining infrastructure, which will significantly reduce the lead time for launching operations and eliminate the need for investing in new mining facilities.

Coal Energy has been listed on the Warsaw Stock Exchange since August 8, 2011. Its operations previously focused on two underground coal mines and the processing of coal waste piles in Ukraine's Donetsk region. However, the company currently has no coal assets in Ukraine due to Russia's full-scale invasion.

The company has carried out little to no operational activity in recent years. According to its latest financial report, Coal Energy's total assets stood at $9.7 million as of the end of September 2023, with liabilities of $11.6 million, resulting in a negative equity of $1.9 million.

At the end of 2023, the company acquired Ukrmineral Trading LLC to obtain mining licenses in Ukraine, and Advanced Industrial Technologies Sp. z o.o. to provide underground mining services to Polish coal mines. Additionally, in early 2024, Coal Energy registered a new company, Greentech Solutions Sp. z o.o., to focus on reclamation and processing of industrial and mine waste, as well as land rehabilitation following industrial activity.

The founder, Chairman of the Board of Directors, and CEO of Coal Energy is Viktor Vyshnevetsky.