Polish coal producer Kompania Weglowa is looking to restructure its operations to avoid bankruptcy.

As part of the plan, the company will cease operations at four of its mines, and the remaining ten mines will be rescued by state-controlled power utilities.

Of the ten mines, coal trader Weglokoks will buy one asset and the remaining nine will be moved to a new holding company.

The proposed plan is expected to affect around 4,800 jobs and cost the budget PLN2.3bn ($631m) through 2016, reported Bloomberg.

An industry union chairman Dominik Kolorz was quoted by the news agency as saying that workers at Kompania’s mines have started strikes over planned job cuts.

The unions plan to further intensify protests in the next week, Kolorz said.

Deputy Economy Minister Wojciech Kowalczyk said that the planned closures will allow Kompania to lower production cost and output from nine mines will reach around 29 million tons within a year.

For 11 months of 2014, Kompania reported operating loss of PLN1.12bn.

Weglokoks will also buy four mines from the new entity in a cash transaction and five mines will be left with the new entity in which power utilities will buy stakes.