UK firms warn Poles over coal dumping

Date: 29/07/1999

By Peter Chapman

POLISH coal producers have been warned to deliver on a promise to halt their heavily subsidised exports to key British buyers or risk anti-dumping action.

At a meeting with EU and British officials last month, the Polish company Weglokoks pledged to scale back its exports to the UK. The move followed complaints that the firm was driving unsubsidised British producers out of their own markets by exporting coal to UK companies at way below the market price.

British coal producers are now waiting to see if the Poles match their words with deeds before deciding whether to file a dumping complaint with the European Commission. "The Poles have been asked for more information and they have yet to supply it," said Scottish Coal spokesman Chris Banks. "But in the meantime, they have said they would back off from further aggressive selling."

Banks said Weglokoks' pledge to scale back its exports meant it would not renew contracts with companies such as UK cement firm Blue Circle. "If their coal was properly priced, then they would not get the contracts in the first place," he insisted.

Banks said the biggest problems for British producers were caused by Polish exports of industrial coal, although he added that household coal exports had also hit his company and UK rivals such as RJB Mining.

Fears over the damage caused by Polish coal exports escalated earlier this year when it emerged that Weglokoks had exported 442,000 tonnes of subsidised coal to the UK in the first quarter of 1999, up from 152,000 tonnes in the same period last year. Annual subsidies to Polish coal fields amount to some €500 million.