CJEU imposes a fine of 500,000 euro daily on Poland over Turów mine

Poland will have to pay a 500,000-euro ($585,550) daily penalty to the European Commission for defying an earlier court order to halt operations at its Turow open-pit lignite mine, Europe's top court said on Monday.

Coal-reliant Poland is at loggerheads with the Czech Republic which says the disputed mine is damaging communities over the border.

Prague subsequently took its grievance to the European Commission which last year started legal proceedings against Poland, saying that Warsaw had breached EU law.

The Czech Republic also took its case to the Luxembourg-based Court of Justice of the European Union (CJEU), Europe's highest, and won judges backing for a temporary order to Poland to stop Turów's operations until a final judgment.

It also asked for a 5-million-euro daily penalty payment to be levied on Poland. The court on Monday agreed with its request but set a much lower sum.

"Poland is ordered to pay the European Commission a daily penalty payment of €500 000 because it has not ceased lignite extraction activities at Turów mine," the CJEU said.

"Such a measure appears necessary in order to strengthen the effectiveness of the interim measures decided upon in the order of 21 May 2021 and to deter that member state from delaying bringing its conduct into line with that order," judges said.

In February, the Czech Republic filed a lawsuit against Poland at the EU's Court of Justice, saying it violated EU law in granting mining expansion and excluded the public from the process.

Warsaw says the mine is too important for jobs and energy and rejected a court order in May to halt mining until a final ruling in the case.

Turów, a 30 square kilometre area, is one of Poland's largest lignite mines. The adjoining power plant provides 7% of the electricity used by households.

The complex, employing 5,000, is slated to run until 2044, brushing against EU ambitions to cut emissions to net-zero by mid-century.

Poland's PGE, which operates the mine, says it has invested 90 million zlotys ($24.17 million) in the last five years, including on measures to reduce noise and clean water drainage.