Strategy implementation in 2020

Key events in 2020 having impact on JSW Group's activities

Operational, financial and market situation

  • The COVID-19 pandemic caused noticeable adverse impact in all operational areas at JSW Group in 2020. Restrictions associated with COVID-19 led to lost production and sales volumes and therefore a considerable drop in JSW Group's revenue, which in turn caused the Company's liquidity to deteriorate.
  • As a result of a difficult liquidity situation and the adverse impact of the COVID-19 pandemic, JSW Group obtained financing under the "PFR Financial Shield for Large Corporates" in the form of a PLN 1 billion liquidity loan and a PLN 173.6 million preferential loan for JSW and a PLN 24.9 million preferential loan for JSW Koks.
  • In the light of JSW's difficult liquidity position, several decisions were taken in 2020 to redeem JSW Stabilizacyjny FIZ's investment certificates totalling PLN 1.4 billion. These decisions were mainly dictated by market conditions and the pandemic, including the coal prices prevailing in global markets, and major investment expenditures. The funds were used in accordance with the Fund's objective.
  • The European Commission once again entered coking coal onto the EU Critical Raw Materials list in September 2020. This year's review of the list of strategic raw materials confirmed the significance of coking coal for development of the European economy. Coal production at JSW's mines contributes to a reduction in the EU's dependence on coal imports from third countries. The new critical raw materials list will be in effect for the next three years.
  • In October 2020, JSW S.A.'s Management Board set up a working team tasked with formulating an operational model where JSW would shift toward the production of coking coal predominately. The team analysed the coal resource base and the technological lines at processing facilities in terms of achieving the objective - coking coal representing 100% of production. It was assumed that after the change of operational model and with the implementation of replacement and development investments at the mechanical coal processing facilities at each mine, JSW could predominately produce coking coal from 2031.

Key initiatives supporting the strategic targets in 2020:

Coal segment:

  • Construction of level 1120m at KWK Borynia-Zofiówka Ruch Borynia.
  • Construction of level 1080m at KWK Borynia-Zofiówka Ruch Zofiówka.
  • Access and industrial use of hard coal resources within the deposits: "Bzie-Dębina 2-Zachód" and "Bzie Dębina 1-Zachód" at KWK Jastrzębie – Bzie.
  • Construction of level 1050m at KWK Knurów-Szczygłowice Ruch Knurów.
  • Construction of level 1050m at KWK Knurów-Szczygłowice Ruch Szczygłowice
  • Expansion of level 1290m at KWK Budryk.
  • Access of seams 405/1 and 405/2 at mine KWK Budryk.
  • Expansion of level 1000m and deepening of shafts IV and III at KWK Pniówek.
  • Expansion of mine KWK Pniówek by accessing and industrially managing resources in the Pawłowice 1 deposit (KWK Pniówek).

Coke segment:

  • Modernisation of coke oven battery 4 at Koksownia Przyjaźń.
  • Construction of power-generation unit fuelled by coke oven gas at Koksownia Radlin.

Other segments:

  • Modernisation of mechanical coal processing facilities at KWK Budryk and KWK Knurów-Szczygłowice Ruch Knurów and Ruch Szczygłowice.
  • Commercial use of methane at KWK Budryk and KWK Knurów-Szczygłowice Ruch Knurów and Ruch Szczygłowice.