Economy Minister Janusz Piechociński Adam Kliczek/Wikipedia

Deputy Prime Minister and Minister of Economy Janusz Piechociński will meet with the directors of several coal-mines on January 30 to push them to cut costs. Later that day he will also visit with trade unions, who are planning a general strike in the region.

“I am not planning to fire anyone. However, the mines' management teams have received concrete tasks and goals, that is, the 5 percent reduction of non-salary costs. The rule is simple: whoever does not meet the requirements is out,” Mr Piechociński told Rzeczpospolita.

Top mining officials say that cutting costs by 5 percent is an extremely challenging task, but an unavoidable one, bearing in mind that the average costs of coal production is at the level of zł.300 per ton. “We need to look for ways of improving efficiency and competitiveness,” said Jarosław Zagórowski, CEO of Jastrzębska Spółka Węglowa.

These changes were expected by many after Mr. Piechociński became Economy Minister in December. Some even suggested that heads would roll, but, Mr Piechociński says nothing like that is planned.

“There will be some changes, one of my deputies (Mieczysław Kasprzak) will resign, but I don't want to start a revolution,” he said.

According to data provided by mining companies, the investment outlays for 2013 will drop by zł.0.5 billion compared to last year.

Poland A.M.