The coal mining industry in Poland is experiencing yet another year of financial losses, alongside a decline in both production and employment. According to data from the Instrat Foundation, Poland remains the last country in the European Union to produce this resource, and most companies in the sector would not survive without state assistance.
In January 2026, the Czech Republic closed its last operational coal mine, making Poland the only EU country still exploiting these coal deposits. Simultaneously, the overall operational results of Polish mining companies have consistently fallen deep into negative territory. The sector reported a net loss of 8.065 billion PLN, according to the “Database of Mines in Poland” maintained by the Instrat Foundation.
Mining Results: Gains for Bogdanka, Losses for JSW
Only two entities emerged with profits in 2025: Lubelski Węgiel Bogdanka and Polska Grupa Górnicza Południe, a new company spun off from PGG. Bogdanka offers the lowest extraction costs in the country, attributed in part to favorable geological conditions. However, the report authors note that the company relies heavily on a single customer — a power plant owned by the Enea group.
The two largest companies, Jastrzębska Spółka Węglowa (JSW) and Polska Grupa Górnicza (PGG), reported significant losses of 3.9 billion PLN and 2 billion PLN, respectively. PGG explicitly admits it would not maintain financial liquidity without government subsidies.
PGG, recognized as the largest mining enterprise in the EU, is undergoing a restructuring process that includes the closure of some mines and the merging of other facilities. Departing employees are eligible for state-provided social safety nets. JSW, the largest producer of coking coal in Europe, is also implementing cost-cutting measures in concert with its workforce while divesting certain subsidiaries.
— “Coal extraction in Poland is no longer viable — we must face the truth — the market has clarified the future of mining. In a few years, our demand for coal will be met by 2-3 mines. Anyone claiming otherwise is not looking at the data,” commented Michał Hetmański, president of the Instrat Foundation.
Production Costs Rising at PGG
In comparison, the analysts remind us that in 2022, following Russia’s full-scale invasion of Ukraine and a surge in coal prices, the industry recorded a net profit of 9.7 billion PLN and an EBITDA of 14.8 billion PLN. Since then, the cost to produce one ton of coal at PGG has risen by 189 PLN, from 708 PLN to 897 PLN. Cost pressures are a major factor contributing to the sector’s deteriorating financial results.
Domestic production fell to 42.8 million tons, representing a 2.7% decrease from the previous year. The workforce is also shrinking — employment in mining has decreased by 3.6% compared to 2024. The primary reason for this decline is retirements not being offset by new hiring.
Data from the Instrat Foundation also indicates a 21% reduction in methane emissions. Methane is a potent greenhouse gas that heats the atmosphere significantly more than carbon dioxide in the short term. In Poland, coal mining accounts for over one-third of the total methane emissions.
