The Ministry of Industry is working on the White Paper on Transformation. This document aims to facilitate the transformation of Poland’s mining regions. The draft is being developed by the Ministry of Industry in collaboration with the World Bank and the academic and scientific communities of the University of Silesia, the University of Economics in Katowice, the Silesian University of Technology, and the Central Mining Institute. The document aims to outline the directions for Poland’s transformation – from a coal-based economy towards a sustainable energy future.
Transformation Can’t Be a Brutal, Sudden Cut
“Transformation is a crucial element of our lives here in Silesia and other post-mining regions. Every change is difficult, so we must implement the transformation in a way that is least costly to society. Transformation can’t be a brutal, sudden cut. We all remember the example of Wałbrzych. Wałbrzych is a region that, after 30 years, hasn’t fully recovered from the brutal cuts in mining operations. This region has been left virtually without support. Prime Minister Tusk’s government declares that this will no longer be the case,” says Marzena Czarnecka, Minister of Industry.
In transforming the region, we must consider social, industrial, and economic challenges simultaneously.
“Today we are discussing security, the methods and costs of transformation – social costs, energy costs. But I would like to propose a different perspective – the perspective of investment. My thesis is: if we play our cards right, the transformation can pay for itself. And I’m not talking about an ideal situation.” I’m talking about a well-designed system in which money invested in a just transition returns to the economy, regions, and the state budget, with interest. “Transformation is not just for those who will remain after the mines are closed, but for everyone,” assures Joanna Pauly, director of the Department of European Funds and Foreign Affairs at the Ministry of Industry and chair of the team responsible for preparing the White Paper on Transformation.
The team responsible for developing the White Paper on Transformation was appointed by Minister of Industry Marzena Czarnecka in late February 2025. Initially, experts from various fields were selected from the World Bank and Polish academia, followed by research with stakeholders in the transition process, particularly the social sector and mining municipalities. Finally, international experiences were reviewed.
Three Dimensions of Transformation
The White Paper examines the principles of sustainable transformation through the prism of three dimensions.
The first is the regional dimension, which takes into account the specificities of individual regions. The Ministry of Industry supports the idea that transformation planning should take place at the subregional level, as closely as possible to the challenges and needs of local communities.
The Ministry emphasizes – in line with the assumptions of the White Paper on Transformation – that the transformation of coal regions can be a factor in reversing the trend of depopulation in Poland, but only if action is taken wisely, quickly, and locally.
The second – the sectoral dimension – assumes considering the impact of transformation on people, supporting economic opportunities while establishing a favorable institutional framework and engaging stakeholders. The challenge, for example, is creating alternatives for residents. This involves not only training but also developing an individualized approach, career paths, and incentives for people to stay in coal regions. Therefore, the assumptions include: building a platform for employee allocation, adapting skills development to demand in sectors offering attractive employment, support programs, career counseling, and so on.
The proposals also include accelerating support for strategic investments and establishing special purpose vehicles for revitalization and transformation projects, taking into account cooperation between municipalities, mining companies, and the private sector. Strong institutions are also important in this process. The recently established Silesian Voivodeship Transformation Fund could play a key role.
The third dimension – the process dimension – identifies three main stages of the transformation: establishing its framework, implementing key programs and investments, and scaling them up. The main goal is to leverage tasks implemented at the regional and sectoral levels.
The Future of Several Hundreds of Thousands
“Let’s not ask if we can afford the transformation. Let’s ask if we can afford not to do it well,” says Joanna Pauly.
The White Paper not only describes the challenges but also provides specific tools to address them. The assumptions presented in this document are the starting point for broad dialogue and planning, which must occur immediately, before depopulation and stagnation permanently affect mining regions.
The transformational challenge is significant. The mining industry in Poland employs approximately 150,000 workers, and power plants employ several thousand more. The World Bank estimates that over 300,000 people are directly and indirectly related to mining. The Territorial Just Transition Plan for the Silesian Voivodeship mentions 400,000 people dependent on the mining industry.
There are several strategic documents in Poland that address the reduction of mining capacity. The draft National Energy and Climate Plan (NECP) states that by 2030, the share of renewable energy sources in the energy mix will exceed 50%, and by 2040, even 70%.
Dariusz Ciepiela
journalist at WNP.PL
The Social Insurance Institution (ZUS) is ready to recognize the work performed in mines by individuals employed by mining-related companies as equivalent to the work performed by individuals directly employed by mining companies. This is a breakthrough in the context of this first group of employees’ efforts to obtain mining pension entitlements. Until now, ZUS has consistently maintained that the mere fact that an employee performed underground work was not sufficient to recognize the employee as mining. A similar breakthrough is awaiting some lignite mine workers, who also face an uphill battle in obtaining mining pension entitlements.
The Social Insurance Institution (ZUS) looked at contracts, not the actual scope of work. It treated specialized companies like employment agencies.
This case has dragged on for years, demonstrating how far the letter of the law (or perhaps its spirit) has lagged behind reality. The fact that mining companies have long used the services of mining-related companies to perform portions of underground work was obvious to anyone familiar with the industry. Just a decade ago, there were several hundred such companies, and the number of workers they employed reached several thousand. They often participated in deepening and sinking shafts, or in excavating or rebuilding mine corridors.
The fact that they were performing mining work was obvious to everyone except… the Social Insurance Institution (ZUS). The latter consistently refused to recognize this work as mining, blocking these individuals from acquiring mining pension entitlements within their stipulated timeframe. The reason? The lack of a direct contract between such a company (e.g., acting as a subcontractor for another, larger entity) and the mine for which it provided such work. “The pension authority treats a company that specializes in work performed for mines as an employment agency that solely provides workers to the mines,” Jacek Franiel, President of the Management Board of Przedsiębiorstwo Produkcyjno-Mining “ROW-JAS” in Jastrzębie-Zdrój, explained in February during a meeting of the Parliamentary Standing Subcommittee on Just Transition.
“Following this line of reasoning, the pension authority argues that due to the lack of a direct contract with the mine, the company is not authorized to confirm the performance of mining work or work for one and a half hours and to issue a mining certificate to its employees. At the same time, the pension authority recognizes that the mere fact that an employee of the company performed work underground is not sufficient to determine that the employee performed mining work,” he added.
Differentiating employees violates the constitutional principle of equality.
The fact that the issue of mining-related company employees and their difficulties in obtaining mining pensions has been brought to the attention of a parliamentary subcommittee can be considered evidence that the matter is finally ripe for a systemic solution. Until now, mining-related company employees, dismissed by the Social Insurance Institution (ZUS), had to argue their case in court, wasting time and energy. This occurred despite the fact that the Act on Pensions and Disability Benefits from the Social Insurance Fund clearly stated that mining work includes, among other things, employment underground and during shaft sinking in mine construction companies, as well as underground in companies and other entities performing mining work or shaft construction for these mines.
– The work of individuals employed by a subcontractor is no different from the work of individuals employed by entities with a direct contract with the mine, as it meets the statutory definition of mining work. It is therefore unacceptable and unfair to differentiate between employees on this basis. The regulations explicitly state that work must be performed for these mines, not under contracts concluded directly with the mines. “The fact that a subcontractor does not have a direct contract with the mine does not negate the fact that the employees it employs perform mining work for the mine,” President Franiel emphasized during the parliamentary subcommittee, reminding the committee that any contract concluded between a subcontractor and a contractor must be notified to and approved by the mine, and that all employees, regardless of their status, are registered in the mine’s work time recording systems before the meeting.
The Commissioner for Human Rights also expressed a similar view, writing to the Ministry of Family, Labor and Social Policy, deeming the differential treatment of periods of underground mining work based on the employer’s contract with the mine a violation of the constitutional principle of equality.
– The nature of the work (relevant feature) and the specific conditions of such work should be decisive for the recognition of periods of mining work, and not the requirement to have an employer-mine contract – argued Stanisław Trociuk, deputy Commissioner for Human Rights.
All court rulings favorable to the complainants. ZUS declares a change in its approach.
Importantly, the above arguments were fully supported by the courts, which, in their previous case law, fully recognized the arguments of employees of mining-related companies. Over the past six years, four judgments have been issued in such cases (two by the District Court in Gliwice, two by the Court of Appeal in Katowice), all of which found that work performed for an employer who is not a mine, enterprise, or other entity performing mining work for mines, and which actually involves underground work in an active hard coal mine, aimed at extracting coal from the rock mass, does not preclude it from being classified as mining work.
– That is why we have been considering this issue for some time. We are working towards satisfying the court rulings, as we also consider them reasonable. We are analyzing the issue to provide guidance to branches in line with case law,” Dorota Bieniasz, a member of the management board of the Social Insurance Institution (ZUS), declared during the aforementioned parliamentary subcommittee meeting. She also noted, however, that ZUS may initiate an investigation if it has any doubts that a given mining certificate may not be entirely accurate.
“ZUS treats the certificate like any other piece of evidence. It is obligated to assess its legality, completeness, and credibility. If ZUS has doubts about the credibility of such a mining certificate, it may conduct appropriate evidentiary proceedings in this matter,” explained Sebastian Gajewski, Secretary of State in the Ministry of Family, Labor, and Social Policy.
“Because let’s remember that the miners’ pension system is a preferential system, and it is common knowledge that where there are preferences, there are also opportunities for abuse.” Therefore, I am asking President Dorota Bieniasz to try to develop a practice of applying these provisions that will reconcile protection against the temptation of abuse with the need to take into account the fundamentally justified demands of the social side, Gajewski added.
The promise was made, and now it’s being implemented. The nature of the work will be paramount when considering applications for miners’ pensions.
The declarations publicly submitted in February were implemented on April 18th. On that day, the Social Insurance Institution (ZUS) guidelines (previously approved by the Ministry of Family, Labor and Social Policy), specifying a new procedure for considering applications for miners’ pensions submitted by individuals employed in mining-related enterprises, were distributed to all employees of the Social Insurance Institution (ZUS).
According to these guidelines, the classification of a given employment as mining work, as referred to in Article 50c, Section 1 of the Pension Act, is determined primarily by the nature of the work performed by the employee (insured person), meeting the criteria defined in the aforementioned provision defining such work. This also applies to employees of mining-related enterprises performing work for mines of coal, ores, precious metals, refractory raw materials, precious clays, kaolins, magnesites, gypsum, anhydrite, rock and potash salt, phosphates, and barite, or for sulfur or lignite mines.
– Regardless of whether the mining-related enterprise that is the employer of a given employee/insured person has a contract to perform specific work for the mine, or whether it indirectly participates in the performance of specific work for the mine as an entity providing employee secondment, employee provision, or subcontracting services, the Social Insurance Institution (ZUS) applies uniform principles for assessing the type and nature of a given employee’s work in a position designated by the employer as mining work or qualified mining work within the meaning of the Pension Act and the implementing regulations thereto. The Act and implementing regulations to the previously applicable Act of February 1, 1983, on the Pension Scheme for Miners and Their Families, have been retained in force to the extent consistent with the provisions of the current Pension Act, the ZUS press office reported.
It also emphasized that when considering applications for a miner’s pension, regardless of the employer of the employee (insured person), ZUS now uniformly evaluates the evidence attached to such applications, confirming the performance of mining work, including in terms of properly maintained working time records.
A fresh start without new regulations. Or perhaps it’s worth making legislative adjustments?
The Social Insurance Institution (ZUS)’s promise to change its approach must be encouraging for employees of mining-related companies (especially those who are just starting to reach retirement age and would prefer to spare themselves the “pleasure” of pursuing their claims in court), although it’s hard not to notice that no actual regulatory change is behind this change, raising questions about the sustainability of this new approach.
Therefore, mining unions have simply demanded an amendment to the Act on Pensions and Disability Pensions from the Social Insurance Fund (FUS), while representatives of mining-related companies are calling for the legal authority to issue mining work certificates by entities employing a given employee, even though they do not have a direct contract with the mine. In this case, a mining work certificate could be issued by any entity meeting the definition of an employer whose employees actually perform mining work, regardless of the type of contracts between the company and the entity for which it performs the work.
“A properly functioning state should operate not based on court decisions, but on regulations. Of course, I realize that this is difficult, labor-intensive, and time-consuming, but that’s how it should actually be,” Piotr Litwa, president of the State Mining Authority, commented on the ministerial proposals to rely on court decisions and new “administrative practice” (because the path involving legislative changes is “long-term and expensive in terms of the expenditure of effort and resources (…) but also does not guarantee success”).
Pension Problem in Open-pit Mines. Working conditions haven’t changed, but the interpretation has.
While a breakthrough can be considered in the matter of acquiring pension rights for employees of mining-related companies, no such breakthrough is yet in sight in other disputes between coal mining workers and the Social Insurance Institution (ZUS). The first example of this situation is the ZUS’s consistent rejection of some applications for miners’ pensions submitted by employees of lignite mines. According to representatives of ZE PAK, which reported this problem, this approach by ZUS appeared in the middle of the last decade, shortly after the company’s privatization in 2012.
“People currently experiencing problems with mining pension rights fall into four occupational groups.” These are workers employed in the repair of basic machinery, employed in mine management and supervision, drainage workers, reclamation workers, and mining railway workers,” Piotr Woźny, then president of the Pątnów Adamów Konin Power Plant Complex, explained in January during a meeting of the Parliamentary Standing Subcommittee on Just Transition. He added that the company employs a total of 406 people in these four occupational groups, representing 16% of the total workforce in the ZE PAK capital group and nearly a quarter of those eligible to benefit from the Social Security Act of August 2023.
“When it comes to the energy part of ZE PAK, we have virtually no problems with the implementation of this act. However, in the other leg, the coal leg, we do have problems.” If the issue of confirming the right to miners’ pensions for some of these individuals is not resolved, they will not be able to fully utilize the benefits of the Social Security Act,” Woźny emphasized (because to be eligible for miners’ leave, one must be eligible for a miners’ pension).
“Until the end of 2016, our work was recognized by the Social Insurance Institution (ZUS) as mining work. Our colleagues working in equivalent positions received miners’ pensions along with all the associated benefits. Suddenly, despite no changes in the legal regulations, in January 2017, ZUS stopped granting us the right to miners’ pensions. How is it possible that work performed in the same place and under the same conditions suddenly gains a different interpretation?” asked Arkadiusz Banaszak, Chairman of the PAK Górnictwo Mining Railways.
“These are people who essentially never travel beyond these internal railway lines.” “It’s impossible to explain to the people transporting the mineral from the open pit to the power plant that their rights, from the perspective of the mine’s operation, are somehow different from those of their colleagues who dig or transport the coal from the place where it was deposited to the place where it is loaded onto railcars. All these people are employed by the same company, whose goal is to ensure that the coal is delivered from the deposit to the power plant,” echoed Piotr Woźny.
The amendment didn’t help. The Ministry of Industry intervenes, and the Social Insurance Institution (ZUS) points to a naming issue.
ZEPAK representatives point out that to avoid such situations, the Geological and Mining Law was amended in June 2022, replacing the definition of an open pit with the broader concept of a mining plant. This was intended to eliminate the need to verify whether a given employee performed their work strictly within the open pit. However, this did not happen. The matter was not clarified clearly, which still prevents some employees in lignite mines from receiving mining pensions.
This is despite representatives of the Ministry of Family, Labor and Social Policy assessing that, in the context of the Act on Pensions and Disability Benefits from the Social Insurance Fund, the work of mining railway employees “should be considered mining work.” The Ministry of Industry also assesses the matter similarly. Professor Ms. Last December, Marzena Czarnecka wrote to the President of the Social Insurance Institution (ZUS), stating that the amendment to the Geological and Mining Law should influence ZUS practice and change its approach by granting miners’ pensions to individuals performing all work related to the extraction of minerals from deposits and their transport, carried out within the mining plant. However, so far… it has not.
ZUS officials, who are strenuously explaining, point to the fact that ministerial regulations defining positions in which mining work is performed also include positions that are practically nonexistent in lignite mining companies.
– This means that we have to rely largely on explanations from employers, in which we ask for the characteristics of the work performed by employees in given positions in order to assess whether mining work is actually performed in these positions or not – says Ewa Bednarczyk, Coordinator at the Department of Pensions and Disability Benefits at the Social Insurance Institution (ZUS).
Courts Explain What Mining Work Is or Isn’t. The President of the State Mining Authority (WUG) Is Unsurprising
“In ZUS practice, which is confirmed by court practice, it is indicated that work involving, for example, the transport of overburden and deposits must be assessed functionally based on what it is associated with. If in such work, although performed in an open-pit mine in this new sense, or even in the positions specified in the regulation, this functional connection is primarily not with coal mining but with the sale of that coal, then, in the opinion of ZUS and the Court of Appeal in Poznań, this is no longer mining work,” Sebastian Gajewski explained the reasons for ZUS’s approach.
He emphasized that when interpreting the regulations on miners’ pensions, to the extent they refer to extralegal phenomena related to the operation of a mining plant, the Social Insurance Institution (ZUS) should refer to the expertise of bodies specialized in this area (e.g., the Ministry of Industry and the State Mining Authority). He considers the ministry’s position regarding the intentions behind the 2022 amendment “convincing,” prompting him to consider ways to modify the practice of applying the law. In his opinion, the current state of affairs can be changed either through a legislative amendment (which currently remains a purely theoretical scenario), through a ministerial regulation specifying the positions in which individuals currently affected by this problem are employed, or finally through “effective dialogue with ZUS.”
“On the other hand, the practice of applying the law at the administrative level is such that it is easy to change it when it is not confirmed by court practice, whereas here we have court practice,” Gajewski cautioned.
“It’s completely incomprehensible that doubts could arise regarding the management and supervision of mining operations. These are the people responsible for managing these operations, and there’s no way they wouldn’t work in conditions related to mining operations and that their work couldn’t be considered mining work,” Piotr Litwa, president of the State Mining Authority (WUG), marveled when called to the table. He noted that there shouldn’t be any doubts regarding workers working on mine drainage.
“This is a fundamental natural hazard in a mining plant. There’s no way this type of work wouldn’t be considered mining work, because by doing so, we’re completely going against the grain when it comes to mining technology,” the president of WUG firmly stated in a parliamentary subcommittee.
Michał Wroński
journalist for the economic website WNP.PL
Mining knowledge is useful not only in mines. Tunnel builders also benefit from mining experience and knowledge. Since Poland is poised for a veritable investment boom in this type of construction in the coming years, and the amendment to the Mining and Geological Law passed two years ago mandates that all tunnel construction be supervised by mining authorities, the demand for such expertise will significantly increase.
Construction of the longest railway tunnel in Poland has begun. The Mining and Geological Survey (OUG) and Saint Barbara are monitoring it.
When excavation of the longest railway tunnel in Poland (so far) began in the Beskid Wyspowy mountains at the end of March, a statue of the patron saint of miners, Saint Barbara, was placed on the construction site, and among the numerous guests and officials attending were representatives of the District Mining Office in Kraków. Their visit was by no means a regional courtesy. The construction of a 3,750-meter-long tunnel (or, more precisely, two of its tubes – the main one, intended for train traffic, and the adjacent evacuation tunnel) under Pisarzowa (Limanowa County) is being carried out under the supervision of the Kraków Mining and Geological Survey (OUG).
This is a consequence of the amendment to the Mining and Geological Law, effective September 1, 2023, which requires all newly bored tunnels in Poland to be supervised by mining authorities, regardless of whether they are constructed using mining technology. Therefore, although the tunnels under Pisarzowa are being bored not using mining methods but using two TBMs (Tunnel Boring Machines), mining authorities still monitor the work.
The construction site is like a mine. You have to be prepared for a cave-in and methane leaks.
The project in the Beskid Wyspowy mountain range is not the only tunnel construction currently underway in Poland under mining supervision. According to Anna Swiniarska-Tadla, spokesperson for the President of the State Mining Authority, a total of three such projects are under the supervision of regional mining authorities. In addition to the aforementioned tunnel under Pisarzowa, the list includes the construction of the Warsaw Metro and a more than 2-kilometer road tunnel under Grochowiczna Hill along the S19 expressway between Rzeszów Południe and Babica.
In the context of this latest project, it’s worth noting that in 2023, during preparations for the commencement of tunneling work,… methane was encountered. As a result of this discovery, it was necessary to install a sensor system on the TBM to detect the presence of this gas, as well as a modified ventilation system with increased efficiency, which would allow for ventilation of the tunnel and prevent methane accumulation inside the excavation. It was also necessary to replace some components with devices capable of operating in the detected conditions. This resulted in a schedule revision and an unexpected increase in project costs. Therefore, the builders of the Pisarzowa tunnel are choosing to be cautious.
“Due to safety issues during excavation, the machine meets the ATEX certification requirements, meaning it must operate in potentially explosive conditions,” explained Cezary Iwanowski, Deputy Contract Director and Tunnel Works Manager at Gülermak, which will implement this contract in a consortium with Budimex.
While the presence of mining supervision is now mandatory for new tunneling projects in Poland, prior to the entry into force of the aforementioned amendment to the Mining and Geological Law, this was also the case when the project involved mining technology. This method involves drilling a series of holes into the rock using specialized machinery, into which explosives are then introduced. After detonation, the fragmented rock is removed, and the tunnel walls are stabilized. This is precisely the method (although using slightly different technology, as in the first two cases it was the so-called New Austrian Method – NATM, and in the third its development – ADECO-RS (Analysis of Controlled Deformations in Rocks and Soils)), road tunnels were constructed on the S1 expressway in Laliki in the Żywiec Beskid Mountains, on the S3 expressway between Bolków and Kamienna Góra, and on the S7 expressway (“Zakopianka”) near Luboń Mały on the Naprawa – Skomielna Biała section in Małopolska. “Drilling at the face, hauling away the spoil, crushing rock, building a temporary support, insulating it, and reinforcing the permanent tunnel support. And so on, around the clock,” is how the Krakow branch of the General Directorate for National Roads and Motorways (GDDKiA) described the work on this section of the “Zakopianka” (Zakopane).
The builders of two tunnels still being drilled in the Barania Góra massif, on the section of the S1 expressway between Przybędza and Milówka, also decided to use the new Austrian method. In June 2022, during work there, a roof rock collapse occurred along a section of approximately 10 meters. Fortunately, no one was injured. The mining foreman on site noticed a crack in the roof near the face in time and decided to withdraw the crew and machinery from the tunnel. The Krakow Mining Authority (OUG) conducted an investigation into the incident, ordering, among other things, the following: verify the technical design together with the technology in terms of the selection of support and its execution, as well as define detailed rules for the safe conduct of mining works in the adjacent tunnel.
Road and railway workers want to build tunnels. Krakow authorities dream of a metro.
In the near future, mining supervision will have even more work to do. Tunnel construction in Poland will be on the rise. The General Directorate for National Roads and Motorways alone, which currently manages seven tunnels with a total length of just under 9 km, is building another eight such structures, each 9 km long, and plans are a further 7.1 km long (including an impressive 5-kilometer structure under the Oder River on the S6 expressway, part of the Szczecin Western Bypass). Ultimately, 18 tunnels with a total length of nearly 25 km are to be operational on the road network managed by the General Directorate for National Roads and Motorways (GDDKiA).
To this list, we should also add investments planned by railway workers – both by PKP Polish Railway Lines and the Central Communication Port. As part of the construction of a new railway line from Kraków to Nowy Sącz (the so-called Podłęże-Piekiełko project), the former company intends to build a total of 16 different tunnels with a total length of nearly 21 km. One of these is the aforementioned facility near Pisarzowa, which ultimately won’t be the longest tunnel on the route (the facility near Stróża, planned to be 3,820 meters long, will be several dozen meters longer). The CPK, in turn, wants to excavate a tunnel over 4.5 kilometers long for high-speed rail under the very center of Łódź.
And finally, the metro. Currently, in Poland, it is associated only with Warsaw, where work on Line II, which has been ongoing for over a decade, is scheduled to be completed next year (the vast majority of which was commissioned over the past decade). Two years later, work on the construction of Line III of the capital’s metro is scheduled to begin, and this work – like the recently completed tunneling on Line II – will be supervised by the Regional Office of Mining and Mining.
The construction of the metro is also gaining momentum in Krakow. At the turn of the second and third quarters, the Metro Development Study is scheduled to be presented in the capital of Małopolska. It will define the full route of the first line and its integration with the metropolitan railway and tram networks. Simultaneously, an environmental decision is being processed for the central section of the first metro line (the environmental impact report is currently being completed), and analyses and discussions with international financial institutions and the government regarding the financial arrangements are underway.
For now, Krakow officials prefer not to risk specifying a possible date for the construction to begin. They also do not confirm reports appearing in Silesian media late last year that they were probing the Ministry of Industry about the possibility of using Silesian miners in the implementation of this project (although they confirm that the visit itself took place), which, of course, does not rule out some form of exchange of experiences with the broader mining sector. According to scientists, it would be optimal for the Krakow metro to be laid at a depth of at least 20 meters underground, deeper than most of the Warsaw metro infrastructure, which was developed by specialists from the Lubin-based Mine Construction Plant and the Mining Company in Mysłowice (later PRG “Metro”).
“The geology of the Krakow area is quite complex due to the fact that we are located within several large geotectonic units, but this structure is very well understood, as research has been ongoing for many years. From a geologic perspective, there is no problem in drilling metro tunnels in Krakow. However, hydrogeology is key,” stated Professor Tadeusz Słomka, a geologist, former Dean of the Faculty of Geology, Geophysics and Environmental Protection at the AGH University of Science and Technology in Krakow, and a long-time rector of the university, during a discussion about the project in April.
Michał Wroński
journalist for the economic website WNP.PL
Let’s start from the beginning. How did you, a native of Łódź, decide to pursue a career in mining here in Silesia?
Well, my decision to work in the mining sector was actually pure chance! It just so happened that after my first year of university, I married a professional handball player – in a Silesian club. We had already decided to move in together there. Of course, the region’s prosperity at the time, mainly related to the mining industry, also had an inviting effect…
However, you did not study a field directly related to mining, although during the transformation and subsequent transformations in the sector, economic professions were gaining importance…
Without a doubt, studying economics shaped my professional trajectory. I’ve always had a scientific mind – I enjoyed analyzing and working with numbers, but writing was completely out of my league. If you’d asked me for a “written” interview, I probably would have declined [laughter].
I’m even more delighted that we have the pleasure of speaking with you. Did you consider any other options when choosing your field of study? For a young person, economics – at first glance – doesn’t seem very appealing…
If you’re asking about any unfulfilled childhood dreams, I remember really wanting to go to a radio and television school, which my dad didn’t like… So I chose a high school with an economics program, located near the apartment building where I lived.
After graduating from high school, I really wanted to study at the Faculty of Digital Machines at the Lodz University of Technology, but physics, which was taught at the basic level in high school, proved to be a barrier. I would have had to master more complex material on my own, which took a lot of time and offered no guarantee of success. Tutoring was also an option, but I preferred to spare my parents that scenario…
Reluctantly, I started looking for something else, and econometrics soon found its way onto my radar. It seemed quite close to my beloved mathematics, and the Faculty of Economics and Sociology at the University of Lodz offered programs in this field.
However, it was also a time when my future husband and I were already planning our wedding, so the prospect of a possible move loomed large. I traveled to Silesia and explored study options there. The dean’s office at the Katowice University of Economics told me that, indeed, the university offered econometrics, but right after the wedding, I discovered I had been misled. Econometrics was offered as a subject, not a major…
I was then faced with a choice: wait a year for cybernetics to start, which was my fallback option, or opt for economics. Knowing that the latter option would deprive me of close contact with more sophisticated mathematics, I cried for two weeks, but I had to bet on one horse… And so, after a few years, I graduated with a master’s degree in economics.
So, back to the question about the beginnings of your professional career. How did you end up—I guess, after all, we could say so—in the mine?
Back then, referrals were still required… I was offered employment at, among others, the Institute of Non-Ferrous Metals in Gliwice, where commuting time was an issue, and at thermal insulation plants, where I was told right from the start that they would most prefer a man in the new role. Discouraged, I thought a good place to start my career would be the local mine, Zabrze-Bielszowice, which also had ties to my husband’s sports club. It turned out they had a vacancy in accounting…
Was there a wow effect or was it a slight disappointment?
My first thought was that I definitely wouldn’t spend much time in this profession… [laughter]. But I got promoted pretty quickly, and then I became chief accountant, and my prospects changed dramatically.
Was it about the mere fact of promotion, appreciation by the employer, or perhaps the nature of the job – more duties and greater responsibility – also played a role?
At first, I was plagued by all the tedious daily work that a beginner accountant has to do. However, as time went on and I gained professional experience, I was given increasingly demanding and responsible tasks, which certainly changed my attitude.
Perhaps you remember some examples?
One of my first responsibilities was coordinating the implementation of the first automation and IT systems in accounting. This was a special moment. The offices were equipped with machines based on the GDR binary system, equipped with perforated tapes, which employees used to record relevant financial documents (e.g., invoices). This essentially involved manual “keying.” My tasks included detecting errors using a adding machine – without it, it was impossible to create a correct balance sheet. On the one hand, tracking down errors was dizzying, but on the other, you felt that it was somehow important and that something depended on it.
I also remember that dealing with balance sheets or tax returns, which required mathematical skills and knowledge of regulations, caused the ice to crack.
The role of chief accountant, with its significantly more demanding tasks, became more and more engaging with me each day, and I quickly forgot about my early plans to “break free” from accounting.
Since our interview is part of a series about women in and around Polish mining, I’d like to discuss this topic as well. We usually associate mining with a “hard,” male-dominated profession, mining underground, where women aren’t allowed. We easily forget what happens above ground, even though women have always been present there. I wanted to ask if the aforementioned industry stereotype captured your imagination when you entered the workforce, and what has changed over the years since you’ve been professionally active?
At the bottom, it was men, in the technical services of the mines – men, and in the management of mining plants and enterprises – also men. That’s roughly how it used to be. But in the social and accounting departments of those same plants and enterprises, it was completely different. In the accounting departments, you could count the men on one hand, even though they usually held – of course – managerial roles. As far as I remember, only two women in the Polish mining industry had been employed as chief accountants before me – at the Halemba mine and the Pstrowski mine. When I was promoted to that role in Zabrze-Bielszowice, I had 120 women and two men under me.
And when you decided to pursue your career in the mine’s accounting department, were you aware of these somewhat inverted proportions? Weren’t you concerned that in mining plants, men tend to make their presence felt more strongly (to put it mildly [laughter]) and – as you yourself noted – it was they who were usually pulling the strings in the years we’re discussing?
It just so happens that throughout my life, I’ve gotten along better with men. Even in school, most of my friends were guys… I didn’t have any such concerns.
While we’re on the subject – I read in a 2012 interview you gave to Dziennik Zachodni that you weren’t entirely happy with the idea of introducing so-called gender quotas into Polish legislation. After reading it, I’d describe your stance at the time as soft-skeptical [laughter]…
Well, I don’t like to force any ideas, and that’s kind of what happened with the quotas you mentioned. Women who were eager to work and constantly expanded their qualifications most often achieved what they wanted in their careers.
In those days, of course, there were various inequalities and stereotypical distrust of their competences on the part of employers (especially when we’re talking about management positions), but I feel we’re somewhat overestimating their role and scale. This, by the way, was rapidly changing before our eyes.
On the other hand, I myself promoted women many times, and it wasn’t always met with enthusiasm on their part. Sometimes, I could sense resistance, stemming from a certain meticulousness or simply a different set of life priorities, which everyone is entitled to!
Are you suggesting that it is not gender, but rather competences and achievements that should determine promotions, access to strategic positions, etc.?
This is certainly a better approach, and believe me, many women have met and exceeded these competence criteria (often very demanding ones).
The only thing I would like to draw attention to here is the issue of women being harassed, as it has indeed occurred at times. This must certainly be combated, including through appropriate legislation.
But the fight against discrimination should not extend to creating prosthetics that are supposed to help women but actually diminish their role and skills, or even place them under duress.
But isn’t the role of women in mining somehow special? You mentioned that in the early 1990s, when the coal sector thrived, men held the reins in key departments of mining companies and firms—even in the highly feminized accounting departments. I know you chaired the jury of the “Narcissus” competition established by the Rybnik Industrial District Chamber of Commerce and Industry, which awards prizes to women in recognition of their professional and social achievements. So, wasn’t some form of support for the proverbial “weaker sex”—especially in a highly masculinized industry—needed?
“Narcissus,” as well as other similar initiatives, are proof that such support did exist, even if not as extensive as we might expect today.
Another issue: aren’t we reading history backwards a bit? After the transformation, it took some time for the labor market to change and for the role of work and career in the lives of Polish women to change. Before 1989, for a significant portion of women in the Silesian Voivodeship, work remained somewhat secondary (as was most common in mining families). Only under capitalism, with its open education system and crumbling cultural stereotypes, did the prospect of a career begin to seem tempting. It also quickly became clear that the home/family alternative—work—was false, and nothing had to be sacrificed.
I also wonder if, rather than support, it wasn’t about appreciating women, showing respect for their work and the fruits of that labor. That alone must have had a motivating effect.
We’re talking about stereotypes between men and women in mining, but I’d also like to ask about another industry stereotype. It’s common knowledge that working underground is hard and risky, but few people mention that surface work also has its darker sides. In the case of management positions, it’s the responsibility for decisions and people, the associated stress and risk of burnout, pressure from powerful unions, the need to constantly respond to dynamic changes in the sector, and so on. Did you struggle with these issues in your management roles, including as vice president of the management board of Kompania Węglowa?
I experienced the most stress when large mining companies were being established, back in the first half of the 1990s. Between 1993 and 1995, when I worked as Deputy President of the Management Board for Economic and Financial Affairs at Rudzka Spółka Węglowa, I faced a lack of funds for wages. The company was formed by merging eight mines, which speaks volumes about the scale of the problem. Furthermore, these mines were moderately profitable, and some were even drowning in debt. It’s hard to imagine how such a large, well-organized, and union-led group of miners would react if they ran out of money for wages. I tried various ways to obtain the necessary funds, of course, but given the company’s situation, it wasn’t easy. The management of Bank Śląski wouldn’t answer my calls and pointedly avoided contacting me. Just when the ground was burning under my feet, I managed to quickly reach an agreement with another bank based in Warsaw and with a branch in Zabrze. We managed to arrange a meeting between the company’s management board and the then-director of the branch and reach a favorable agreement, which, considering our creditworthiness at the time, seemed almost miraculous. We committed to opening a company account with the bank, which would receive 100% of the sales proceeds. These funds were to be used first to cover the loan, and only then to meet other financial obligations. And this was a time when the company’s costs exceeded cash flow…
However, this was not the end of the troubles…
Reaching an agreement was one thing, but signing and implementing the contract was another. For a long time, we had to repay the loan every month just to get another one. This was the only way we could ensure salary payments at the agreed amount and on the agreed date. The situation was therefore chronically tense, with no prospects for improvement.ę.
In addition to the challenges you’ve faced time and again, your career has also been marked by numerous successes. You’ve held finance responsibilities at several different mining companies, holding numerous prestigious positions. You’ve managed to turn many of them around and propel others onto a path of rapid growth. If you had to name your greatest professional achievement, it would be…
When I stepped down from various positions, I always left behind a cash surplus. During my tenure at Kompania Węglowa (which ended in 2012), the company managed to regain current financial liquidity. At one point, we had one and a half billion złoty in our accounts, a truly staggering sum at the time. It’s worth mentioning that Rudzka Spółka Węglowa was also the most economically efficient coal company in Poland at the end of my tenure. When my tenure ended, I was offered a job at JSW.
Did you enjoy your job—in a human sense? Working in management positions in mining companies often requires various sacrifices. It’s not always eight hours a day, either…
I definitely enjoyed my job and didn’t mind staying in the office from dawn to dusk during various hectic periods. I couldn’t imagine leaving my position after working the proverbial eight hours with some important and urgent tasks still undone. That’s just how I am, but the positions I held also demanded this kind of responsibility.
Was one of the heated periods you mentioned during the restructuring and ownership changes in the sector? There was much discussion at the time about possible privatization scenarios, with some seeing an opportunity for the mining industry and mines, while others demonized the process as the state abandoning its energy security. How did you view this?
Not everyone wants to remember that these processes began from the bottom up. Mine directors agreed among themselves to avoid competing with each other by lowering coal prices, because in such a scenario, plants with lower-quality coal would simply not withstand the competition. Even before the companies were established, mines were conspiring to merge into stronger entities – market survival was at stake.
Regarding the privatization process itself, I believe that Polish mining would have looked completely different had it been successful. In my opinion, mines would have been more economically efficient. I had these thoughts when, at JSW, I and my staff were conducting analyses and preparing the first privatization prospectuses.
As an aside, it’s worth emphasizing one thing: various transformations were carried out in the Polish mining industry under the banner of privatization. For someone unfamiliar with the context, this concept could be misleading. Because if the State Treasury holds a dominant stake, can we really speak of privatization in the strict sense of the word?
And what about the fears associated with this process or the transformations carried out under its banner?
Well, we have examples of private mines that struggled to find their place within the structures of coal companies, yet managed to thrive. This was the case, for example, with the Siltech Mining Plant, which was initially given little opportunity in the market. Despite its small deposits, it remained a profitable enterprise for a long time, even without state aid.
Let’s also look at the steel industry – also a strategic one – where privatization has advanced much further. In its case, no one raised the alarm about foreign capital buying us out, as it was clear that the entire industry was growing.
Let’s be clear: no entrepreneur wants their business to fail or fail to thrive. Rather, it’s the exact opposite. Perhaps, at a certain stage, there was simply a lack of trust in the private sector?
Are you suggesting that the specific conditions in which the restructured mining industry operated limited its profitability and development potential?
There were many absurdities with which the management of mines, and later mining companies, had to grapple. Take, for example, the housing stock, or more broadly, all the apartment blocks, hospitals, sports fields, halls, and so on, which became part of the assets of coal companies. Regulations obligated companies to maintain them, which usually entailed exorbitant costs. No one considered how these costs would be covered or how they would relate to the profits of the entities managing them. When I worked at JSW, maintaining the housing stock meant we incurred annual losses of approximately 150 million złoty, which essentially neutralized the good financial results achieved through sales. There was no way to rationalize housing policy because we were constrained by regulations. There was talk of cities taking over housing units, but the city authorities were not at all eager to do so, and it’s hardly surprising – they knew what they were signing up for…
How did this housing impasse end?
At JSW, we employed the same tactics as we had previously employed at RSW. We negotiated with housing cooperatives and reached an agreement that we would provide them with apartments free of charge, but in return, we would be able to establish regulations specifying the form and terms under which they would resell them to our employees. These terms were, of course, favorable – usually a certain percentage of the value, depending on the length of service at the company’s mines. In this way, the employees acquired the apartments, and the cooperatives managed the assets.
A concept that’s making a meteoric rise these days—similar to the one once associated with “restructuring”—is the word “transformation,” which coal circles often see as a euphemism for decarbonization. How do you assess the process of moving away from coal? Do you think this direction, the pace of change, and the strategies adopted in this area are the right ones?
Our reserves of “black gold” are slowly running out. What remains is difficult to extract due to terrain conditions or is of insufficient quality.
We also know that large-scale coal mining contributes to environmental degradation and air pollution. This is compounded by damage to infrastructure and the urban fabric. Buildings at risk of collapse, dilapidated roads, toxic mine tailings – these are just a few examples. Consider the recent events in Trzebinia…
I therefore believe that mining’s role as a large-scale energy supplier is coming to an end. Given what’s happening in the European Union, of which we are a member, it’s difficult to imagine reversing this trend.
The industry is also hampered by its sensitivity to economic fluctuations, and therefore largely unpredictable and dependent on external factors such as market fluctuations and geopolitics.
I certainly respect the miner’s work ethic and the role of mining heritage – especially here in Silesia – but unfortunately, this is not enough to sustain plants that are no longer economically viable.
However, the pace and form of transformation are different – everything must be done to ensure that the transition to a zero-emissions economy is as smooth as possible, and that any potential negative impacts on regions and workers are kept to a minimum.
And doesn’t the aforementioned geopolitical situation somehow change these calculations? I’m referring to President Trump’s announcements regarding continued coal mining, or what’s happening in China and Southeast Asia, where annual production volumes are hovering near historic highs.
In the current situation, i.e., with the deposits we have, and in the context of EU climate policy, coal can only survive as a reserve, emergency resource.
Priority will certainly be given to “green” sources like solar and wind energy (whose development, incidentally, has been unfairly halted in Poland…). Hopefully, in the long term, Polish nuclear power will also enter the picture.
Finally, a less weighty question. In a recent interview, Professor Hardy-Góra revealed that her passion is visiting new countries (her office has a world map, which is slowly filling up with pins…), and her favorite vacation is skiing in the mountains. What’s your recipe for a successful vacation?
Although I’m by definition a sports-averse person, I also love skiing. On a daily basis, I enjoy spending time in the garden. For many years, after periods of intense work in mining companies, gardening allowed me to recharge my batteries. Because I simply don’t like being bored!
Interview by Marcin Hylewski
