- We are convinced of the rightness of the decision. Krupiński mine must be removed from the structure of JSW and transferred to the Mine Restructuring Company ( SRK). This mine has no future and no scenario we analyzed gives it the chance to permanently regain profitability. Though painful, it is the best solution for our entire company - emphasizes Tomasz Gawlik, CEO of JSW.
Transfer of Krupiński mine to SRK was one of the points of agreement concluded between JSW Management Board and the Bondholders on 29 August 2016 on repayment of bonds in the amount of approx. 1.3 billion. The original amount of the repayment of the bonds was agreed to be cut in the initial period. Also the repayment period was extended by five years, i.e. until 2025.
The total amount of Krupiński losses over the past 10 years is approx. PLN 900 million. The mine produces mainly steam coal, for which demand decreases. JSW wants to focus primarily on the production of high-quality coking coal, which achieves higher prices. Another problem is the high contamination of raw material from Krupiński up to 59 percent last year, and 63 percent in 2014.
None of the 2 200 mine workers will lose the job. The employment guarantees given to the crew after the IPO still exist. Miners, who will voluntarily choose not to use a package of social protection and one-time severance payments, and thus leave the mining, will be transferred to other mining companies. The place of residence is to be taken into account when allocating to other JSW works. Another priority is not separating already well cooperating teams of workers.
