Key investment projects performed by JSW in 2017
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Development of the Borynia-Zofiówka-Jastrzębie mine – Zofiówka section
In 2017, JSW continued the opening and utilizing of new resources started in 2005: “Bzie-Dębina 2-Zachód” and “Bzie-Dębina 1-Zachód” from level 1,110m. Recoverable reserves planned to be opened from level 1,110m are estimated at 146.5 million tons, down to the level of 1,180 m. The deposits contain mainly type 35 (hard) coking coal. In 2017, in connection with the execution of the project, expenditures of PLN 4.2 million were incurred. In 2017, works were performed to prepare for exploitation the deposit “Bzie-Dębina 2 Zachód” in area N of seam 505/1. It is planned to commence exploiting resources in area N in 2018. It is planned to initiate exploitation of resources in area A of the “Bzie-Dębina 2-Zachód” in 2022. In Q2 2017, the works associated with vertical development of the “Bzie-Dębina 2-Zachód” deposit were completed with regard to sinking of shaft 1 in Bzie.
In addition, in 2017, JSW renewed the performance of the project of building the 1,080 level in Zofiówka Section to provide an access to and exploit resources of the “Zofiówka” deposit below the 900 level. The estimated amount of recoverable reserves down to a depth of 1,080 m is 47.3 million tons. In 2017, works were continued on deepening of the IIz shaft to the 1,080 level. In 2017, in connection with the execution of the project, expenditures of PLN 12.6 million were incurred. -
Construction of a new level in the Budryk mine
JSW continued the development of the 1290 m mining level started in 2007. The total amount of recoverable reserves available from level 1290m is estimated at 166.1 million tons to a depth of 1400m. In 2017, in connection with the execution of the project, expenditures of PLN 26.8 million were incurred. The construction of the new 1290 level together with modernization of the Coal Enrichment Plant (“ZPMW”) will make it possible to start production of type 35 (hard) coal from 2019, increase the production of coking coal in the total production structure to approx. 60% and increase total coal production. The completion of key elements of the capital expenditure project determining the achievement of the assumed results is planned in 2019. Performance of part of the capital expenditure tasks, i.e. those related to the modernization of the coal enrichment plant (ZPMW) in 2016-2019 is being run by JZR with the participation of external financing.
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Construction of level 1050 in kwk Knurów-Szczygłowice – Knurów section
JSW conducted works aimed at tapping into the resources available on level 850-1050 in the Knurów Section. The project is executed with a view to gaining access to the deposits of high quality type 34 coking coal. The total quantum of documented recoverable reserves available on level 850-1050 in the Knurów Section is 102 million tons. In 2017, in connection with the execution of the project, expenditures of PLN 2.0 million were incurred.
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Development of the Pniówek mine
JSW continued the mining work on opening and developing the new ”Pawłowice 1” deposit started in 2007. The total amount of recoverable reserves in this deposit is estimated at 54.0 mt down to the level of 1,140m. The deposit contains mainly type 35 (hard) coking coal. In 2017, no capital expenditures were incurred in connection with the project performance. In December 2016, mining work began on the western part of the Pawłowice 1 deposit, adjacent to the mine’s original area.
Furthermore, in Q1 2017, JSW started to perform a new investment project in the Pniówek mine to develop the mining level of 1,000 m together with deepening shafts IV and III. The project is performed to secure effective exploitation and an access to reserves of type 35 coal in the south-west part of the Pniówek deposit which are planned to be exploited after 2022. The total quantum of recoverable reserves available from the level of 1,000m in the KWK Pniówek mine is estimated to be approximately 64.6 million tons. In 2017, capital expenditures of PLN 34.6 million were incurred in connection with executing this investment.
Capital expenditures on the key investment
| ITEM | 2017 | 2016 | 2015 | 2014 | 2013 | GROWTH RATE 2016=100 |
|---|---|---|---|---|---|---|
| § KWK Borynia-Zofiówka-Jastrzębie mine, Zofiówka Section | 4.2 | 23.0 | 61.0 | 82.0 | 116.8 | 18.3 |
| Opening and industrial utilization of resources within the area of the Bzie-Dębina 2-Zachód and Bzie-Dębina 1-Zachód deposits | ||||||
| § KWK Borynia-Zofiówka-Jastrzębie mine, Zofiówka Section | 12.6 | 1.8 | 8.2 | 56.1 | 50.5 | 700.0 |
| Construction of the level of 1 080m | ||||||
| § KWK Budryk | 26.8 | 17.2 | 23.8 | 110.9 | 98.7 | 155.8 |
| Construction of level 1290m | ||||||
| § KWK Knurów-Szczygłowice, Knurów Section | 2.0 | 1.5 | 2.5 | - | - | 133.3 |
| Construction of level 1050m | ||||||
| § KWK Pniówek | 34.6 | 6.9 | - | - | 1.2 | 501.4 |
| Expansion of level 1 000 m with deepening shaft IV | ||||||
| § KWK Pniówek | - | 0.9 | 2.7 | 23.2 | 28.7 | - |
| Opening and industrial development of resources in the Pawłowice 1 deposit | ||||||
| TOTAL | 80.2 | 51.3 | 98.2 | 272.2 | 295.9 | 156.3 |