Warsaw-listed Australian mining company GreenX Metals won its arbitration case against Poland, securing PLN 1.3bn (€300mn) in compensation for the Polish government’s obstruction of its plans to extract coal, the company said on October 8.

In 2019, GreenX Metals claimed Poland blocked its projects in the east and south of the country. Reportedly, the Polish administration’s reluctance stemmed from concerns that the Australian company’s coal fields would compete with state-owned coal mines.

Arbitration proceedings began in 2021 under the Australia-Poland Bilateral Investment Treaty, with GreenX initially seeking over €960 million in compensation.

The international tribunal ruled that the Polish government had breached its obligations under both the Australia-Poland Bilateral Investment Treaty and the Energy Charter Treaty, specifically concerning the Jan Karski coking coal project in eastern Poland.

The Australian company, formerly known as Prairie Mining, has long alleged that Poland blocked its investments in two coal projects—Jan Karski and Debiensko—in violation of bilateral treaties. At the time, Polish media suggested potential compensation could reach 10 billion zlotys ($2.64 billion), though the tribunal ultimately dismissed claims related to the Dębieńsko project.

Both projects contain coking and thermal coal. While thermal coal, primarily used for electricity generation, has struggled to attract investment due to environmental concerns, coking coal, essential for steel production, remains strategically important.

The case proceeded under the United Nations Commission on International Trade Law Rules. The commission’s ruling is final and binding.

Following the decision, GreenX Metals’ stock price jumped 22.7% to PLN 2.23 on the Warsaw Stock Exchange on October 8.