Letter from the President of the Management Board
Dear Readers,
I am pleased to present to you JSW Group’s second integrated report, which showcases our activities in 2019. The report contains the most significant information on the effects of managing our enterprise in areas that are of the most interest to our stakeholders – activities related to improvements in occupational safety, social, environmental, employee and management areas as well as development and innovations.
This was yet another year full of challenges and difficult decisions, one in which the Group had to face a deteriorating macroeconomic environment. Our core markets, coal and coke, went into a clearly visible slowdown. Despite the difficult macro backdrop, we were able to generate a positive financial result of PLN 649.6 million at Group level. The Group’s consolidated EBITDA reached PLN 1,939.5 million. In 2019, the Group produced 14.8 Mt of coal, developed 75.1 km of roadways and produced 3.2 Mt of coke.
In 2019, we consistently implemented our Strategy, including developing our resource base, improving efficiency and limiting our adverse impact on the natural environment. One of the effects of these activities is a new mine – “Jastrzębie-Bzie,” with extractable coal resources estimated at more than 180 Mt, of which type-35 coking coal accounts for 95%. The Company also received a concession for the exploration of a part of hard coal deposit Chełm II in the Lublin Coal Basin. As part of efficiency improvements, the Management Board decided to purchase a majority stake in PBSz S.A., the strategic task of which is to strengthen JSW in the area of development plans concerning the design, construction, fit-out and modernisation of vertical and horizontal mining excavations, which will contribute to an increase in JSW Group’s output and value in the future.
We realise that mining activities have a strong impact on the natural environment, which is why we are constantly acting to minimise our negative impact and ensure safety for both nature and the residents of local communities. The mining industry also creates quite a lot of new opportunities for development and for seeking new innovative solutions for a new sustainable economy. Last year, we carried out a range of tasks intended to reduce the emission of greenhouse gases, improve the energy efficiency of production processes and decrease the energy intensity of machinery and equipment. We also continued a number of research projects. Activities that consistently bring us closer to self-sufficiency in terms of energy but also to entering completely new markets related to products that are today described as products of the future. The on-going and planned environmental tasks constitute an element of our sustainable business model and contribute to achieving the priorities set out in the European Green Deal, adopted near the end of last year, including in particular the deployment of low-emission technologies and a transition towards a circular economy.
We try to minimise our impact on the natural environment not only through land rehabilitation and damage rectification programs but also by technological progress and the deployment of innovations. Our flagship project is the economic use of methane captured in mines. We are also constantly on the look out for new innovative solutions in various areas. Last year, the Group produced its first stageloader, manufactured internally based on our engineers’ designs. The Company purchased a modern longwall complex and a bolter-miner, thanks to which mining operations are now faster, cheaper and, most importantly, safer for the miners.
Our efforts in the field of corporate social responsibility in 2019 encompassed a range of in-house projects addressed mainly to the local communities in municipalities where we operate. These included campaigns for children such as JSW Mine of Knowledge and JSW for Kids. These communities also received support from JSW Foundation, and the Company continued its involvement in the development of sports in the region.
Having regard to the increasing interest in non-financial information, we apply the best practices and standards by emphasising the openness and transparency of our communications, which are some of the more important elements influencing the effective and efficient functioning of JSW Group. The positive reception of our first integrated report encouraged us even more to improve the presentation of our data and meet the expectations of our stakeholders. I hope that you will once again find our report interesting and enjoy reading it.
Sincerely,
Włodzimierz Hereźniak
President of the Management Board, JSW