UPDATE 1-Poland's Tauron weighs Brzeszcze mine deal, sees risks

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WARSAW, Aug 27 (Reuters) - Poland's second largest power
producer Tauron TPE.WA said it was considering buying some of
the assets of the troubled Brzeszcze mine but hurdles to a deal
remained.
Tauron's statement came after Poland announced a public
tender to sell Brzeszcze, meeting one of the conditions set by
state-run company Tauron to submit an offer.
"We are working on the offer. As in any tender the
conditions of our offer could be subject to negotiations. We see
many factors apart from those listed at the start of August,
that could impact the investment's profitability," Tauron said.
Tauron is the only investor interested in buying the ailing
coal mine in southern Poland.
Tauron had said it would offer to purchase some Brzeszcze
assets for a "token sum" but only if the sale was made as part
of a public tender.
The condition was set because of the risk of the miner
potentially having to return funds deemed as illegal public aid.
Taruon buying Brzeszcze assets is a part of a government
plan to involve its power companies in the rescue of troubled
mining company Kompania Weglowa.
Kompania Weglowa owned Brzeszcze until May when it was
transferred to state-owned firm SRK which specialises in the
overhaul of mining businesses.
The country's biggest power producer PGE PGE.WA and its
smaller rivals were expected to buy stakes directly in Kompania
Weglowa to provide it with capital, while Tauron was to buy
Brzeszcze assets.
But the managers of the utilities are reluctant to take the
risk of investing in the loss making mines ahead of
parliamentary elections in October.
Finding an investor for Brzeszcze was also a part of an
agreement signed at the start of the year between the government
and the mining trade unions, which threatened possible strikes
from October.