Evaluation of the Bogdanka Mine, Poland

During the early part of 1999 Steffen, Robertson and Kirsten (UK) Ltd (SRK) were commissioned by Price Waterhouse Coopers to carry out the technical due diligence study of the Bogdanka Coal Mine as part of their contract with the Treasury Ministry of Poland for pre-privatisation analysis. A visit was undertaken by four experienced consultants specialising in the fields of geology, mining, coal preparation and environment. The team also undertook a review of management, manning levels, performance and other broad issues affecting the operation of the mine. In this paper the author outlines the general geology of the mine, and attempts to show how an experienced consultant comes to terms with a meaningful assessment of a mine and coalfield of which he has little or no previous knowledge, particularly given the very short time available for the commission.The relevance of such aspects as mineral rights and concessions, the exploration history, cover deposits, coal bearing strata, geological structure, coal quality and potential hazards to the assessment will be examined. The assessment of reserves and resources to standards acceptable to international banking organisations will be looked at in more detail. Finally some of the critical non-geological factors of the assessment will be outlined.