The most advanced work is underway in the “Efficient Mine” stream. July brought a significant acceleration of work at longwalls and working faces. Incentive measures, which have been introduced on a pilot basis, have already covered 12 longwalls and 15 working faces. Their effectiveness is confirmed by the numbers: the progress of work in the longwalls exceeded TEP targets by 34 percent, and in development by as much as 42 percent. Importantly, all activities are carried out with the highest safety standards and with strict attention to the working conditions of the workers.
In the area of procurement and investment processes, JSW continues to simplify procedures and plan purchases for 2026. In total, from the beginning of the implementation of the Strategic Transformation Plan until 31 July 2025, the Company has already identified PLN 1.857 billion in savings, of which: PLN 328 million - in the area of operational and investment purchases (OPEX and CAPEX), which represents over 91 percent of the plan for the entire year 2025, and PLN 1.509 billion - in the area of investments.
- Each element of the Strategic Transformation Plan - from mining efficiency, through modernization of technical facilities, to optimization of procurement and investment processes - was designed to strengthen the organizational stability of the JSW Group, regardless of the volatile market situation. We are strongly focused on current liquidity, but in parallel we are already working on a broader perspective that guarantees stable development of the Company and the region for decades to come - says Ryszard Janta, president of JSW SA.
As part of other initiatives to improve mine operations, a study of options for improving work comfort for underground workers has been developed, resulting in a set of 12 recommendations. In parallel, work is underway to unify the belt conveyors, which is expected to translate into greater infrastructure reliability and operational efficiency.
On the Group level, intensive work is underway to update the JSW Group Code, which defines the principles of cooperation and operation of companies. At the same time, policies, procedures and the reporting system are being analyzed and simplified to eliminate unnecessary bureaucracy and create clearer operating rules and eliminate duplication of information provided. The aim of these measures is to improve the financial and operational efficiency of the JSW Group and they are directed at analyzing the data necessary for the development of a new pricing model and new costing within the entire Group.
The difficult market situation remains a challenge for JSW. Average coking coal prices in 2025 have declined and remain at approx. 184 USD/ton (-32% y/y). The situation is further exacerbated by the continuing downward trend of the dollar, currently at PLN 3.65. Therefore, despite the very positive effects of the Strategic Transformation Plan, JSW's Management Board is taking additional measures to strengthen liquidity. One of them is an agreement with the Social Security Administration (ZUS) to defer the payment of social security contributions for May, June and July 2025 for a total of about PLN 315 million. According to Current Report 49/2025, the Company will submit applications for subsequent periods.
JSW has also been consistently pursuing the refund of the so-called windfall tax of PLN 1.6 billion. In parallel, the Management Board is holding talks with financial institutions to make JSW SA's financing structure more flexible. The potential to sell steam and coking coal from the heaps is also an important component improving the Company's financial position. In addition the Group is analyzing alternative activities that could generate additional funds for its current operations.
