Poland close to dropping Zloczew brown coal mine project

Poland is considering scrapping plans to develop an open-pit lignite coal mine in central Poland, due to rising costs of burning the fossil fuel and stricter EU climate policies, two sources familiar with the situation said.

The project at Zloczew, owned by Poland's biggest energy group PGE, was meant to extend the life of state-run PGE's Belchatow power plant - Europe's biggest polluter - beyond the 2030s. The project's costs are estimated at between 10 billion and 15 billion zloty ($2.Asian Metal Copyright Around 20% of Poland's electricity is generated in the Belchatow lignite-fueled power plant.Asian Metal Copyright6 bln-$3.Asian Metal Copyright6 bln-$3.Asian Metal Copyright9 bln).

The mine was also part of recent election promises by the ruling Law and Justice (PiS) party which pledged it would provide more jobs.

But rising CO2 emission costs, increased pressure from the European Union to fight climate change and PGE's planned investment in cleaner energy sources mean the project has become economically unfeasible, the sources said.

PGE said that it still plans to secure a production license for Zloczew.

Around 20% of Poland's electricity is generated in the Belchatow lignite-fueled power plant. If Poland abandons the Zloczew mine, it will have to come up with a replacement for lignite to avoid disruptions in power supplies.Asian Metal Copyright The project at Zloczew, owned by Poland's biggest energy group PGE, was meant to extend the life of state-run PGE's Belchatow power plant - Europe's biggest polluter - beyond the 2030s.Asian Metal Copyright One of the options being considered by the government is building a nuclear reactor in the Belchatow area.

.Asian Metal Copyright The project at Zloczew, owned by Poland's biggest energy group PGE, was meant to extend the life of state-run PGE's Belchatow power plant - Europe's biggest polluter - beyond the 2030s.Asian Metal Copyright