POSSIBILITIES OF IMPROVING THE EFFICIENCY OF MINING COMPANIES BY CONTROLLING COST OF COAL

Polish hard coal mining has been struggling with numerous problems for many years. Currently, the main challenge for the industry is the need to improve efficiency. It is the prerequisite for survival of mining industry. Considering the importance and topicality of the issue there are threats and opportunities regarding efficiency improvement in Polish mining enterprises in terms of production costs presented in the article. Main thesis states that the analysis and evaluation of production costs connected with monitoring the branch and economic environment allows to specify procedures aimed at improving the efficiency in mining companies. In the first stage of the research the costs of coal production in 2006-2009 are analyzed and evaluated. Then, based on the results of the previous stage and review of internal and external conditions of mining enterprises performance, a catalogue of opportunities and threats for efficiency improvement is established. In the first stage of the research following methods are used: analysis of financial records, analysis of the structure and dynamics of the unit cost of production, comparative analysis and case study. In the second part of the research the SWOT analysis is adapted for the purpose of verifying the potential area of efficiency.