Coal Mine Redevelopment in South-Central Poland

Presentation by Norval Collins to NSAPP, March 25, 1999, Halifax

Background

During the 1990's, Poland has been restructuring its coal industry as part of its national economic reform. The country has closed 30 of its 70 coal mines, throwing 200,000 out of work.

The World Bank has funded a Canadian study to develop a pilot process for the redevelopment of closed mine sites. A larger multinational study is producing actual redevelopment plans.

The City of Bytom, population one-half million, is within the Katowice Voivodship region in south-central Poland. The urban part of the region has a population of three million and has long specialized in the steel and coal industries. Other parts of the region have been declared Special Economic Zones and given tax holidays and grants.

In Bytom, residential areas have developed around large coal mines. A major railway line separates the city centre in the north from industrial areas in the south. The pattern of developed areas is scattered. The transportation network has wide coverage but is in poor repair. There are no major road intersections around which development could be oriented; however, the city is close to the crossing of two of the four major new interstate-quality national highways now under construction.

Subsidence from underground workings is a widespread problem. Zoning was introduced in 1993 and is unique to the region. Industrial heritage is important, but lacks a detailed regional context. There is plenty of housing, but it is of low quality and in need of repair.

The three mine sites are typically 30 hectares in area, include railyards, 30 to 40 buildings, underground workings, and an adjacent power plant with conveyors. There are no large storage piles, but sites have fill of waste rock and bottom ash, 125 years of residues and storage tanks.

The site adjacent to the CBD has a 10 metre drop to the railyards. Krystyn Tower is a tall brick building built around a mine head frame. It is a heritage site but is in bad shape. There is a large adjacent residential area, plus a World War II bunker for 5,000 people located 35 metres underground.

A second site is adjacent to a major transportation development area, and includes wastewater management facilities. The third site had a large conveyor belt plant which left a wide range of contaminants, although there is no contaminated fill. This area is closest to the new major highway but access is through residential areas.

Evaluation Framework

- return on investment for coal company

- benefits to municipality

- employment generation

- overall public good

- international experience in brownfield sites is a critical input

- focus is on identifying the appropriate process, not a detailed plan

International Experience

- external funding, focused redevelopment corporation are essential

- redevelopment theme for site is advantage

- public knowledge and participation is important

- success depends on regional priorities, government support

- cannot replace the employment opportunities of a large mine

- inappropriate new land use can lead to poor economic performance

- poor economic conditions is biggest constraint to redevelopment

- environmental remediation costs can be a major constraint and are often underestimated

Redevelopment Conclusions

- maximum 6,500 jobs can be created vs. 12,000 mine-related that were lost

- land values will move towards the EU values, although they are now in flux

- options are adaptive reuse of facilities, site clearance, and provision of basic infrastructure

- site clearing had to estimate environmental remediation and demolition costs

- infrastructure costs were based on those of Bayers Lake industrial park in Halifax

- adaptive reuse minimized investment by the mining company, also minimized longer term opportunities for the municipality

- application of remediation standards is complex, and tends to move to minimum current requirements

- there is a bias towards the current coal company

- local focus is too often restricted to action without long term planning and analysis

- example is Krystyn Tower being developed as a restaurant, despite the surrounding industrial wasteland

- need to develop one site first, use as catalyst for further redevelopment

- strategy is to maximize long term return on investment; key is staged development of the three sites

Local Players

- want to use existing facilities, go to the highest bidder

- this would tie up land and make productive development of large site impossible

- there is little local experience in providing infrastructure

- there are many alternatives for investors elsewhere

- local politics is difficult to understand

- World Bank didn’t want municipality and coal company working together

Redevelopment Objectives

- employment

- acceptable return for coal company

- acceptable benefits for municipality through jobs and taxes

- improved socio-economic conditions

- improved recreation and culture opportunities

- business park as in North America is likely the best option


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This document was last modified on March 26, 1999.