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ANNUAL
REPORT
2018

Environmental protection

Tools

PLN 136.9 million

Total expenditures on environmental protection

The above amount includes the costs of mining damage rectification, rehabilitation, pro-environmental investments, protection of water against salination, fees for use of the environment and water services.

PLN 44.5 million pro-environmental investments: increase in the economic use of methane, modernisation of water treatment units and desalination (included in expenditures on environmental protection).

  • [S.7.2-S.7.4; 9.1]

The presence of mining and coking plants in the region contributes to its economic development, provides jobs and feeds local budgets. The industry has to deal with environmental costs related to distorting the landscape, emission of pollutions, mining damages, noise emissions or disturbing the hydrological balance. We strive to continuously improve the state of the environment by taking actions that minimise adverse impact. We are of the opinion that effectiveness of action is the best measure of responsibility for the surroundings.

In 2018, JSW Group did not record any serious failures with an environmental impact and no penalties were imposed on Group companies for infringing environmental protection laws.

Geo-Metan

The Geo-Metan program’s objective is to develop and improve domestic technologies for exploring and extracting methane from coal deposits prior to mining operations. JSW, PGNiG, PGG and TAURON Polska Energia are involved in this initiative. Representatives of the management boards of mining and energy companies signed a letter of intent in Katowice in January 2018, allowing the Geo-Metan program to move forward. This collaboration will help to increase domestic natural gas output, reduce coal extraction costs and improve the safety of miners working underground. The Geo-Metan program’s objective is to develop and improve domestic technologies for exploring and extracting methane from coal deposits prior to mining operations. Thanks to this collaboration it will be possible to conduct exploration and extraction works within mining areas designated for coal mining.

VARMO – next-generation fuel

This is an innovative, composite solid fuel produced on the basis of coal slurry and coal tar. Thanks to cooperation with the Chemical Coal Processing Institute in Zabrze, it was possible to develop a fuel with cleanliness parameters exceeding competing coal-based fuels.

Reduction of excessive noise

The excessive noise reduction strategy includes activities intended to reduce noise emissions from the most burdensome sources down to permissible levels. In 2018, we continued working on reducing noise at the main facility of the Pniówek mine.

Rehabilitation of land

JSW Group’s management philosophy includes respect for local communities and the areas they inhabit that are subject to extraction and production activities. We believe that it is our duty to reduce burdens and social costs wherever these cannot be eliminated entirely. At the same time, we feel obligated to compensate the communities for the effects of our adverse footprint. Feeling accountable for areas that JSW withdraws from after mining is complete is a consequence of this type of management mind-set.

Once mining was completed at the Krupiński mine in Suszec and the mine was transferred to the Mine Restructuring Company, we began initiating ideas to maximise the potential of this land by locating JSW Group’s other activities there, including technologically innovative initiatives.

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Ambitious projects on post-mining land

In July 2018, Jastrzębska Spółka Węglowa presented an ambitious rehabilitation program for the former Krupiński mine in Suszec, encompassing eight key projects. The expenditures needed for these projects exceed PLN 1.5 billion. All of the projects would provide jobs for approx. 2000 people within the former mine’s site. The entire rehabilitation process would be overseen by a special purpose vehicle formed by JSW Innowacje, the Mine Restructuring Company (which owns most of the 70 hectares of the former Krupiński mine) and the Katowice Special Economic Zone.

The projects will include a modern industrial complex consisting of a hydrogen fuel factory and a factory for vehicles powered by this natural fuel, a modern carbon fibre production facility and the first underground pumped-storage hydropower plant.

The program unveiled by JSW encompasses the industrialisation and rehabilitation of the former Krupiński mine’s land and facilities. It was designed by experts and partners based on an analysis of the region’s capabilities and needs, the technological challenges of the 21st century, corporate social responsibility and active participation in this innovativeness program.

The rehabilitation program is well-aligned with the governmental Strategy for Responsible Development. Towards the end of 2019, a complex of modern production and warehousing buildings is expected to be built at the former mine, followed by the production of machinery, equipment and tools for mining purposes in Poland and abroad. These will include: rails for suspension railways, rollers, water supply network pipelines, conveyor chain systems, sections of powered roof supports. Investment expenditures are estimated at PLN 60 million. The production and warehousing complex will be built by 2022. One of the projects also entails the development of a service and logistics centre.

Obszar-roboczy Obszar-roboczy

The former Krupiński mine’s location makes it possible to build a residential complex that is self-sufficient in terms of energy and heating due to geothermal energy, which is in line with the governmental housing program Mieszkanie Plus. The residential complex project is subject to the results of geothermal research and plans to construct an underground pumped-storage plant.

Another solution is the Innovation Park, which would provide support to start-ups dedicated mainly to investors operating in and around the Suszec municipality. Jastrzębska Spółka Węglowa also has several ideas related to energy projects entitled the „GREEN VALLEY.” This involves the construction of an underground gas storage tank, PV farm installation, EV charging station, thermal energy warehouse and the European Centre for Small Methane-Based Energy. The former Krupiński mine’s areas and facilities are capable of hosting large industrial projects, which will have their own business ecosystems.

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  • [MM1]

The following table contains information on the location and surface area of land, with indication of areas already rehabilitated and still awaiting rehabilitation:

no. name of facility/area location total area [ha] rehabilitated area [ha] area awaiting rehabilitation [ha] description (type of actions taken, stage of implementation, description of plans for the future)
KWK Ruch Borynia
1. Closed waste disposal facility „Reservoir 6a” Świerklany municipality 12.7 0 12.7 Pursuant to Śląskie Voivodship Marshal’s Decision no. 3572/OS/2010 of 28 November 2011 regarding closure of the mining waste disposal facility „Borynia – Jar, reservoir 6a” in Świerklany, rehabilitation works are currently under-way in this area. The works are expected to be completed by 31 December 2019.
2. Landfill
„Borynia-Jar”
Świerklany/Jastrzębie-Zdrój 97 95 2 A) JSW S.A. 1/TP-PO/Sz/291-64/99 of 15 September 1999 information for Voivodship Office regarding landfill closure and commencement of rehabilitation B) Decision agreeing technical design for rehabilitation of landfill for post-coal waste no. ŚR-III-8624/JS/3/41/99 of 1 December 1999
3. Facility – Reservoir 4a Jastrzębie-Zdrój 21 8 13 A) 482/09 of 16 November 2009 decision approving construction design for a landscape structure aimed at increasing green areas and for purposes related to recreation and sport within an area located at ul. Węglowa, using rock mass. B) Jastrzębie-Zdrój Mayor’s Decision no. OŚ.III.6233.010.2014 for processing of mining waste: – for an aggregate production installation; – outside the installation for the landscape structure dated 11 November 2014, valid until 31 October 2024
4. Coal storage yard Jastrzębie-Zdrój 3.39 0 3.39 The following activities should be undertaken once a decision is made to decommission the facility: remove the surface layer of soil, add a humus layer and sow grass
5. Settling vessels at Mechanical Coal Processing Facility Jastrzębie-Zdrój 2.73 0 2.73 The following activities should be undertaken once a decision is made to decommission the facility: add a humus layer and sow grass.
KWK „Borynia-Zofiówka-Jastrzębie” Ruch Zofiówka
1. Rehabilitation of land located between post-mining damp Pochwacie and the Szotkówka river in Połomia area located approx. 200-400 metres south of the Szotkówka river and approx. 400-700 metres east of ul. Podgórna 3.7 3.7 The rehabilitation concerns land parcels no. 292/33, 301/33, 302/33 i 528/36 Połomie district, Mszana municipality. Parcel 528/36 is owned by the State Treasury Wodzisławie Starost and used by JSW S.A., for which according to the Wodzisławie Starost a municipalisation procedure will be conducted.
2. Closed mining waste disposal facility „Pochwacie” The facility is located in an area where the Mszana and Jastrzębie-Zdrój municipalities meet 138 73 65 Actions to be taken: formation of embankments, construction of insulation cover, land levelling and management, biological rehabilitation. These activities have already been performed for a rehabilitated part of the Pochwacie facility.
3. Tailing water pond Mechanical Coal Processing Facility area 10 10 The following activities should be undertaken once a decision is made to decommission the facility: fill it with stones, add a layer of humus and sow grass
4. Mine yard area Main facility 12 12 The following activities should be undertaken once a decision is made to decommission the facility: remove the surface layer of soil, add a humus layer and sow grass
5. On-site sewage treatment plant 3.3 3.3 The following activities should be undertaken once a decision is made to decommission the facility: remove the surface layer of soil, add a humus layer and sow grass
KWK Budryk
1. Mining waste disposal facility CSOG in Knurów Knurów municipality 260.96 39.78 228.77 successive land rehabilitation (re-forestation) is on-going
KWK Knurów-Szczygłowice Ruch Knurów
1 Settling vessels in Foch shaft area Knurów 20 0 20 successive biological rehabilitation as land becomes obsolete
KWK „Knurów-Szczygłowice” Ruch Szczygłowice
1. „Jagielnia” rehabilitation area Knurów municipality, Gliwice poviat 67.31 0 0 Technical rehabilitation is on-going, consisting of filling mining waste into land affected by mining operations
2. „Korfanty” rehabilitation area Knurów municipality, Gliwice poviat, Czerwionka Leszczyny municipality, Rybnicki poviat 41.35 0.75 40.59 Technical rehabilitation is on-going, consisting of filling mining waste into land affected by mining operations
3. „Bierawka 1” rehabilitation area Knurów municipality, Gliwice poviat 20.06 0 0 The mine has not conducted rehabilitation work within the „Bierawka 1” area.

The reason for this lack of land management activities is the need to rectify mining damages by regulating the Bierawka river bed at a section from ul. Lignozy to the railway overpass. Rehabilitation work will be performed once the hydro-technical works regulating the shape of land adjacent to the river within the „Bierawka 1” area is completed.

4. „Land shaping and rehabilitation of part of „Smolnica” damp following closure of Coal Recovery Facility in Trachy” Sośnicowice municipality, Gliwice poviat 18.45 0 0 A procedure was concluded for mining waste collection and processing from Ruch Szczygłowice by Truck Lider (holder of construction permit). A lease agreement for JSW’s land will have to be signed along with the agreement for waste collection and processing. The content of these agreements has been preliminary agreed with Truck Lider.
KWK „Pniówek”
1. Landfill „Kościelniok” Pawłowice, west side of ul. Orla. 194.00 46.48 147.52 The „Pniówek” mine is rehabilitating the „Kościelniok” landfill, using mining waste from on-going production. Given the fact that the volume of this facility has changed and the current level of use of mining waste at the landfill, we expect the rehabilitation process to last another 10 years, i.e. to the end of 2028.

Protection of water

In 2018, JSW performed activities intended to limit the quantity and load of mined saline water discharged to surface waters by maximally using them for mine technological purposes and in underground excavations for fire prevention and the liquidation of obsolete excavations. Unused water from drainage at the Borynia-Zofiówka-Jastrzębie and Pniówek mines was discharged into Odra river using a hydro-technical water protection methodology, i.e. the „Olza” retention and dosage system used by PGWiR. In 2018, 4.8 million m3 of water drained from JSW mines was discharged through the „Olza” system.

SALINE MINE WATER (JSW) (MILLION M3) 2018 2017
Used 1.3 0.9
Discharged into environment 3.7 2.8
Discharged into Desalination Facility 2.3 2.4
Discharged into Olza collector 4.8 4.8
Total 12.1 10.9
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  • [E.4.2; E.3.1-E.3.3.]

JSW Group is performing online monitoring of salt levels in Olza and Odra rivers and surface water monitoring in accordance with the relevant decisions. Water quality monitoring is being conducted similarly as in the case of rehabilitated land.

Consumption of water at JSW

SUM:

Total waste use, including: unit of measure 2017 2018
m3 12 665 940.0 14 272 771.0
purchased drinking water m3 2 241 369.0 2 283 895.0
drinking water m3 3 526 654.0 4 852 528.0
from own intakes drinking water m3 3 206 365.0 3 622 393.0
drinking water m3 3 691 552.0 3 513 955.0
Recovered and re-used water, including: m3 1 178 592.0 1 625 082.0
rainwater m3 121 310.0 63 320.0
treated wastewater m3 226 907.0 228 898.0
saline water m3 830 375.0 1 332 864.0
other m3 0.0 0.0
Indicator: use of water per product unit m3/mg net 0.86 0.95

Sól Dębińska

Mine water from KWK Budryk is desalinated at a facility in Dębieńsko (JSW Group’s PGWiR). Sól Dębińska is derived by desalinating top-quality brine available at depths reaching 1200 metres. This is salt that has been underground for thousands of years and is not polluted, in contrast to sea salt, for example. Brines first undergo a multi-phase filtration. Then, brine is concentrated using reverse osmosis filters (RO installation). Concentrated brine is subjected to an evaporation process, followed by crystallisation and drying (RCC installation). The produced salt typically contains 99.4% NaCl. This technological process makes it possible to retain desired micro elements and minerals in the product. Consistent granulation and a low level of moisture eliminate the need to use anti-caking agents. Aside from cooking salt, road salt is also on offer.

Thanks to this process, highly saline waters pumped from mining regions are not discharged into the river Bierawka and high-quality salt is obtained.

The use of salt from saline mine water is beneficial for the environment because it means less salt needs to be mined at traditional salt mines (6000 tonnes of salt per month is produced in Dębińsko, making it the second-largest salt producer in Poland). In 2018, Sól Dębieńska received a Quality Certificate, the TOP PRODUKT title and the Doceń Polskie® promotional mark.

Koksownia Jadwiga and Koksownia Dębieńsko, owned by JSW KOKS, have closed water and wastewater cycles and do not discharge wastewater outside the facility. All communal, industrial and rainfall-related waste is treated at on-site wastewater treatment plants and subsequently used in wet cooling processes for coke, with the installation located at Koksownia Dębieńsko being in operation until 31 August 2018.

Waste management

Use of mining waste in road building and transport infrastructure for engineering, construction and hydro-technical purposes

One of the effects of the Group’s mining activities is the generation of extractive waste. In 2018, 10.8 million mg (tonnes) of extractive waste was generated in coal mining and processing. In order to minimise the negative impact of the generated extractive waste on the natural environment and increase revenue through rational management of extractive waste, the Group has undertaken strategic activities including:

  • reducing the quantity of waste generated,
  • increasing the use of waste in underground mining excavations,
  • sale of unprocessed waste,
  • production and sale of aggregates produced from waste,
  • use of waste in surface mining waste management facilities
WASTE VOLUME AT JSW SA (MG MILLIONS) 2018 2017
Extractive waste 10.8 11.1
Hazardous waste 0.0002 0.0002
Waste other than hazardous waste, except for mining waste 0.04 0.17
Total 10.8 11.3

JSW also continued with activities related to the use of extractive waste along with power plant waste and saline water for filling and sealing longwall goafs in order to reduce fire and methane risk, reduce methane emissions and land subsidence, improve ventilation conditions and fill in closed-down and sealed-off obsolete mining excavations. Increasing the use of extractive waste in underground mining excavations was mainly achieved through a systematic expansion and modernisation of installations for injecting sealing mixtures.

The optimal use of generated extractive waste in road building and transport infrastructure for engineering, construction and hydro-technical works was achieved by ramping up the production of aggregates at the mines’ processing facilities and subsequent sales.

Extractive waste was managed in extractive waste management facilities on the surface in accordance with local spatial development plants, waste management plans and existing regulations concerning waste management, in ways agreed with local governments.

WASTE VOLUME AT JSW SA (MG MILLIONS) 2018 2017
Extractive waste 10.8 11.1
Hazardous waste 0.0002 0.0002
Waste other than hazardous waste, except for mining waste 0.04 0.17
Total 10.8 11.3

In all of its extractive waste management facilities, the Group performed tasks related to protecting the environment against any negative impact of extractive waste and to the development of land affected by mining activity in order to rehabilitate it and return its natural and landscape features and re-purposing it.

  • [E.6.1; E.6.3-E.6.5]
SUM:
unit of measure 2017 2018
Total quantity of generated waste, including: mg 10 866 392.8 10 800 221.0
extractive waste, including: mg 10 837 523.8 10 759 017.3
Shaft stone (01 01 02) mg 120 428.5 109 535.0
Coal Enrichment Plant stone (01 04 12) mg 9 969 799.5 9 941 565.7
flotation tailings (01 04 81) mg 747 295.9 707 916.6
hazardous waste, mg 208.2 228.2
non-hazardous waste  (other than extractive waste) mg 28 660.8 40 975.5
Total quantity of generated wastewater, including saline water, by method of treatment, including: m3 13 837 960.0 14 533 878.0
used m3 1 159 507.0 1 624 012.0
discharged into environment m3 4 717 450.,0 4 745 305.0
transferred to another entity m3 7 961 003.0 8 164 561.0
other m3 0.0 0.0
Indicators: emission of extractive waste per product unit mg/mg netto 0.748 0.719
Indicators: emission of wastewater per product unit m3/mg netto 0.952 0.968

Reduction in greenhouse gas emissions

The main source of greenhouse gas emissions arising from the Group’s activities is CO2 emitted in fuel combustion processes for energy purposes and methane derived from ventilation of mining excavations.

In 2018, JSW Group limited greenhouse gas emissions by maximally using gas from mine methane drainage for energy purposes. As a result of using this methane to generate electric and heating energy in high-efficiency cogeneration systems, methane emissions in 2018 were reduced by approx. 74.8 million m3. Procedures related to the launch of additional engines fuelled by gas from methane drainage at the B4 and Knurów-Szczygłowice mines were also introduced.

In the coking segment, JSW Group is exercising continuous oversight of efficient and rational use of coke oven gas.

In August 2018, the coking plant Koksownia Dębieńsko, which had taken part in the CO2 emission allowance trading scheme, was decommissioned. In December 2018, an annual report on CO2 emissions was prepared, submitted for verification and positively verified by an authorised reviewer. Given JSW KOKS’s participation in the greenhouse gas emission allowance trading scheme for CO2, the Group is continuously estimating costs that it will have to incur in connection with the operation of its coking units, power plants and heat and power plants in the fourth settlement period, covering years 2021-2030.

  • [E.5.1-E.5.4]

The following table contains information on gases and substances emitted into the atmosphere

SUM:
unit of measure 2017 2018
Weight of greenhouse gases emitted into the atmosphere, including: mg 297 537.55 291 749.59
CO2 mg 82 183.05 75 669.41
CH4 mg 215 346.14 216 069.00
from group HFCS, including: mg 8 361.00 11 182.00
HFC 134a kg 1 272.00 2 776.00
HFC 32 kg 552.00 736.00
HFC 125 kg 600.00 800.00
HFC 407c kg 5 929.50 6 870.00
HFC 410A kg 7.50 0.00
Weight of other substances emitted into the atmosphere, including: kg 819.66 752.26
SOX mg 80.10 72.38
NOX mg 148.25 135.73
particulate matter, including: mg 246.90 218.74
PM10 mg 246,90 218.74
Indicators: emission of greenhouse gases per product unit 0.0205 0.0194
Indicators: emission of other substances per product unit 0.00006 0.00005

Carbon footprint

In pursuing a more sustainable business model, which is strictly tied to energy use optimisation, elimination of energy-intensive solutions and the recovery and economic use of methane, the Group in 2018 continued works intended to implement comprehensive solutions for advanced estimates of the carbon footprint of the entire organisation and its key production process.

Carbon footprint is defined as the overall quantity of greenhouse gases emitted throughout the product lifecycle by an organisation, event or a person.

The Group carried out a detailed inventory and analysis of emission sources and the emission data management system. A methodology to calculate the carbon footprint in accordance with the GHG Protocol – Corporate Standard and GHG Protocol – Product Standard was adopted. Input data was determined for Scopes 1-3 in accordance with the methodology. Carbon footprint calculations are currently on-going for the base year and for 2018, and an IT tool supporting these calculations in the coming years is being implemented.

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Rectification of mining damages

Mining activity leads to noticeable changes in the landscape, including land deformations. As a result of these, damage to private (e.g. damaged buildings) and public (e.g. damaged roads) property may arise, as may distortions in the hydro-geological balance (e.g. land subsidence, changes in water flow directions, changes in surface water levels).

With a view towards building positive relations with local communities, JSW’s Management Board in March 2018 decided to shorten to 30 days and unify deadlines for the payment of compensation for mining damages rectified by the injured parties on their own. Waiting extended periods of time for funds resulting from reached agreements often was negatively viewed by the community, therefore the reduction in payment deadlines will certainly improve JSW’s image in its nearest surroundings.

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  • [E.4.1; E.4.3-E.4.4]

Biodiversity

JSW Group’s facilities are not situated within or in the direct vicinity of national parks. Only three of JSW’s mines are located at a certain distance from land with high natural or landscape value.

The landscape park Cysterskie Kompozycje Krajobrazowe Rud Wielkich is located approx. six kilometres north of JSW Ruch Borynia. The „Dolina Górnej Wisły” Special Protection Area (PLB 240001) is located approx. 10 kilometres south-east of the mine. A pedunculate oak designated as a natural monument, with approx. 432 cm in circumference, in a park surrounding the palace in Borynia should also be mentioned (this area also includes forests, non-forest land, agricultural land and bodies of water).

The nearest Natura 2000 areas from the JSW Ruch Zofiówka mine are: the aforementioned Special Protection Area „Dolina Górnej Wisły” (PLB 240001), which is approx. 7.7km south-east from the Mining Area and Terrain „Jastrzębie Górne I.” The second precious natural area is the Special Area of Conservation „Zbiornik Goczałkowicki – Ujście Wisły i Bajerki” (PLH 240039), located approx. 8.6km south-east of the mining area.

Areas of the landscape park Cysterskie Kompozycje Krajobrazowe Rud Wielkich are located within the mining area „Knurów” (JSW Ruch Knurów). The impact of coal mining on the park is small and does not breach the park’s protection objectives.

The western part (west of river Bierawka) of the mining area „Szczygłowice I” (JSW Ruch Szczygłowice) is located within the area of the landscape park Cysterskie Kompozycje Krajobrazowe Rud Wielkich. The park covers an area of 494km2, with 635km2 of borderline areas, and is one of the largest parks in Poland. 48 species of protected plants have been identified in the park. Natural monuments – single trees: pendunculate oak in Szczygłowice – are located within the mining area. The land within the park is subject to protected for its natural, landscape and cultural values.

The Natura 2000 protected areas found the closest to the JSW Ruch Szczygłowice mine are: Special Area of Conservation ‘Underground Site of Tarnowskie Góry-Bytom’ (PLH 240003), at a distance of approx. 21km north, and Special Area of Conservation Stawy Łężczok (PLH 240010), approx. 22km west.

Several valuable pendunculate oak trees are located near the JSW Pniówek mine in Pawłowice. The landscape park „Cysterskie Kompozycje Krajobrazowe Rud Wielkich”, Special Protection Area „Dolina Górnej Wisły” (PLB240001) and Special Area of Conservation „Zbiornik Goczałkowicki – Ujście Wisły i Bajerki” (PLH240039) are located at some distance from the mine.

Thanks to the Group’s environmental protection efforts, no environmental losses were caused by Group companies in 2018. The Group’s companies also engage in environmental monitoring and the prevention and limitation of the adverse effects of their impact, including through:

  • controlling land subsidence
  • monitoring the quality of underground and surface waters
  • measuring precipitation
  • surveying indicator parameters in rainfall water and its use
  • measuring pollution emissions

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