Last year the persisting global economic slowdown, the significantly falling prices for JSW’s core products from quarter to quarter, the interruption in production associated with the two-week industrial action, the threat of losing financial liquidity and the risk of banks placing the bond debt in a state of being due and payable worked to the JSW Group’s disadvantage.
Confronted with operating in extremely unfavorable market conditions the JSW Group had to undertake further radical measures to cut operating costs and curtail the outflow of cash. Thanks to extensive savings we managed to reduce the unit mining cash cost to PLN 307.10 per ton, representing more than 13% compared to 2014. The coke conversion cost also fell by 4.7%. In 2015 the Group’s headcount declined from 34,120 to 32,172 employees, while the overall JSW Group’s capital expenditures were slashed by a total of 37.3%.
“This year we are continuing our restructuring efforts, we are looking for additional savings, we are radically limiting expenditures unrelated to our core business and we are holding talks with prospective buyers of some of our assets designated for sale. This will enable us to regain financial stability, especially since we are now observing coal price stabilization on the market and we even see a chance of slight growth”, emphasizes Tomasz Gawlik, CEO of Jastrzębska Spółka Węglowa SA.
In 2015 JSW’s mines produced 16.3 million tons of coal, including 11.2 million tons of coking coal and 5.2 million tons of thermal coal. The sales of coal produced by our mines totaled 16.6 million tons.
In the coking segment the coke sales volume trended down on an annual basis by 3.5% compared to 2014, while coke production was up 5.1% to 4.2 million tons. On average, coke prices diminished by nearly 3%, contributing to this segment’s revenues falling by 12.5%.
Last year the persisting global economic slowdown, the significantly falling prices for JSW’s core products from quarter to quarter, the interruption in production associated with the two-week industrial action, the threat of losing financial liquidity and the risk of banks placing the bond debt in a state of being due and payable worked to the JSW Group’s disadvantage.
Confronted with operating in extremely unfavorable market conditions the JSW Group had to undertake further radical measures to cut operating costs and curtail the outflow of cash. Thanks to extensive savings we managed to reduce the unit mining cash cost to PLN 307.10 per ton, representing more than 13% compared to 2014. The coke conversion cost also fell by 4.7%. In 2015 the Group’s headcount declined from 34,120 to 32,172 employees, while the overall JSW Group’s capital expenditures were slashed by a total of 37.3%.
“This year we are continuing our restructuring efforts, we are looking for additional savings, we are radically limiting expenditures unrelated to our core business and we are holding talks with prospective buyers of some of our assets designated for sale. This will enable us to regain financial stability, especially since we are now observing coal price stabilization on the market and we even see a chance of slight growth”, emphasizes Tomasz Gawlik, CEO of Jastrzębska Spółka Węglowa SA.
In 2015 JSW’s mines produced 16.3 million tons of coal, including 11.2 million tons of coking coal and 5.2 million tons of thermal coal. The sales of coal produced by our mines totaled 16.6 million tons.
In the coking segment the coke sales volume trended down on an annual basis by 3.5% compared to 2014, while coke production was up 5.1% to 4.2 million tons. On average, coke prices diminished by nearly 3%, contributing to this segment’s revenues falling by 12.5%.
