INNOVATIONS

Introduction

JSW Group is focusing on the most effective use of extracted, but depletable and non-renewable mineral resources. Innovations in the extraction and utilisation of commodities and new solutions will contribute to more efficient and flexible use of raw materials and reduction of the amount of pollutants emitted.

The research and innovation work carried out in 2021 concerned modern solutions in the mining, coking and environmental protection areas.
Verification of R+D+I projects in JSW Group’s live environment and the knowledge gained enable development to be targeted and provide opportunities for further optimisation of production processes.

Strategic research areas:

• exploitation of deposits
• modern management models
• heterogeneous telecommunications systems in workings
• ICT, mine ventilation and air conditioning
• occupational health and safety, environmental protection
• rehabilitation of post-mining areas
• use and processing of waste.

Closer collaboration within the Group and shared research and development objectives make it possible to more precisely adapt the profile of R+D+I work to market trends and expectations.

In line with the financial plan included in the Group’s strategy, JSW will provide annual funding for the R+D+I area's objectives, which are allocated to projects that are deemed as key for implementing the strategy.

Results achieved in 2021:

Despite the unfavourable market situation for developing cooperation, especially in the international dimension, related to restrictions caused by the SARS-CoV-2 pandemic, JSW Group was successfully implementing projects in collaboration with international corporates such as: Datamine, Deswik, Palaris and Komatsu Mining Corp. These relationships include the optimisation of coal mining activities at JSW's mines and the deployment of modern technologies solutions in this area.

Further, JSW Group worked with scientific and research institutions such as the Central Mining Institute, Institute for Chemical Processing of Coal, AGH University of Science and Technology and Silesian Technical University.

In 2021, in order to finance activities in the innovations area, JSW Group actively used aid funds from the European Union and other sources, both domestic and foreign. This primarily concerns newly implemented tasks in the area of environmental protection, reduction of methane emissions, energy efficiency, rehabilitation of post-industrial areas and innovative technologies in the coal and coke production process. Sources of external funding for the above-mentioned groups of projects include dedicated programs launched by institutions such as: National Centre for Research and Development, Coal and Steel Fund, National Fund for Environmental Protection, Provincial Fund for Environmental Protection, and others.

We feel obligated not only to incorporate in our decision-making processes the social and environmental effects of such decisions but also to search for and promote solutions that help in taking care of the interests of our surroundings.

The primary tools for developing the innovation area at JSW Group are:

• system for evaluating and prioritising R+D+I projects, defining the rules for selecting R+D+I projects,
• methodology for carrying out R+D+I projects, introducing mechanisms to control the manner and efficiency of project implementation and the legitimacy of project continuation at various stages of project life cycle (decision gate methodology).
• financing scheme for R+D+I, identifying potential sources of funding for R+D+I projects in line with their characteristics.

R+D+I projects are implemented on the basis of methodology that consists of two basic elements making it possible to identify the essential tasks in such projects - process map along with a description of tasks and documentation at each stage of the process.

The project implementation path is as follows:

• Gathering and submitting project ideas
• Preliminary selection of ideas from outside JSW Group
• Preliminary selection of ideas from within JSW Group
• Recommendations on project launches issued by project evaluation teams formed at JSW Group companies
• Formal commencement of projects and appointment of project bodies (Steering Committee, Steering Committee Chairperson, Project Leader)
• Process for preparing financial plans related to R+D+I projects
• Process for accessing funds for innovative and strategic projects
• Conducting projects in line with rules and procedures set down in the R+D+I Methodology, taking into account JSW Group's Program and Project Management Methodology
• Project progress reporting:
  
  • Within the project process - on-going reporting on project progress by the Project Leader
  • Collective reporting by JSW Innowacje - quarterly reporting on progress across JSW Innowacje's projects
• Moving projects through decision gateways

Working with JSW Innowacje S.A. to implement the objectives formulated in the updated research agenda tailored to market needs is an important element of JSW Group's research and development efforts.

In JSW Group's operating model, JSW Innowacje is designated as a company that supports the core business and provides research and development back office for the entire JSW Group. It concentrates on creating and implementing solutions to improve efficiency and quality parameters in the mining and coking sector. It works with universities, R&D and industrial units. The company's area of activity also encompasses all stages of projects, including feasibility studies and supervision over project implementation and deployment.

One of the Parent Company’s priorities in development and innovation is achieving the targets set forth in the annually revised Research Agenda, which supports the effective evaluation and classification of research and development projects.

In 2021 the Research Agenda named four main areas of R+D+I:

• carbon and chemical projects,
• projects associated with eliminating natural hazards,
• mining and power equipment projects,
• projects related to climate objectives.

Effective innovation policy requires intensive collaboration with an ecosystem whose members can use their competences to support the activities undertaken by JSW Group.
This ecosystem includes the following elements:

• research institutions,
• universities,
• technology providers,
• extractive industry companies.

Cooperation takes place at various stages of project implementation depending on the needs.

The process of searching for and implementing technological, technical and process innovations at JSW and its subsidiaries is expected to continue. To this end, in most cases it will be necessary to carry out pre-deployment work aimed at adapting the technology to the requirements of the environment in which it is implemented. Successfully completed research and development projects will be transformed from a cost centre into a revenue source for the Group through activities aimed at commercialising the know-how obtained.