TRANSFER OF A DESIGNATED PART OF THE "JASTRZĘBIE III" MINING AREA TO SRK On 31 December 2021, an agreement was signed by and between JSW and Spółka Restrukturyzacji Kopalń S.A. in Bytom (“SRK”) on the free-of-charge transfer of an organized part of JSW’s enterprise in the form of the Jastrzębie III Mining Area of KWK Jastrzębie-Bzie (“OPE”) with a dispositive effect as at 1 January 2022. On 31 March 2022, with the dispositive effect as of 1 April 2022, JSW and SRK signed an annex to the aforementioned agreement.
SALARY AGREEMENTS Agreements concluded with the trade unions in 2022: *On 28 January 2022, an agreement was reached regarding a 10% increase in base pay rates for JSW employees as of 1 January 2022, and an increase in the value of payments for supportive meals from PLN 21 to PLN 30 per day. *On 5 July 2022, an agreement was reached on the payment of a one-off bonus. JSW recognized a total cost of PLN 472.2 million in its 2022 financial results. On 21 December 2022, an agreement was reached, according to which, starting in January 2023, the value of the supportive meal will be determined based on the amount of the minimum wage announced by a regulation of the Council of Ministers (the value of meals will be 1.5% of the amount of the aforementioned wage).
MODERN SWITCHYARD FOR ELECTRICITY FROM METHANE In KWK Knurów-Szczygłowice, Szczygłowice Section, the construction of modern RGEN switchyard was completed, thanks to which the mine is powered with additional electricity produced in methane-fired generators. The cost of the investment project was nearly PLN 24.0 million.
APPROVING THE STRATEGY OF JSW INCLUDING JSW GROUP SUBSIDIARIES FOR 2022-2030 On 25 February 2022 the Supervisory Board adopted a resolution to approve the Strategy for JSW and the Subsidiaries of the JSW Group for 2022-2030 (“Strategy”) adopted by the JSW Management Board, which is an update of the Group’s hitherto Strategy.
EVENTS IN THE PNIÓWEK MINE AND BORYNIA-ZOFIÓWKA MINE, ZOFIÓWKA SECTION * On 20 April 2022, in KWK Pniówek, there was an explosion and ignition of methane and secondary explosions, which took place in longwall N-6, seam 404/4+405/1 on level 1000. * On 23 April 2022, a high energy shock wave combined with an intensive outflow of methane took place at KWK Borynia-Zofiówka, Zofiówka Section. The incident occurred in an area where no mining was performed, in the D-4a working face roadway on level 900.
RESULT OF THE ELECTIONS TO SELECT EMPLOYEE REPRESENTATIVES TO SIT ON THE MANAGEMENT BOARD AND SUPERVISORY BOARD On 28 April 2022 elections were held to select employee representatives to sit on the JSW Management Board and Supervisory Board in their 11th term of office. As a result of the elections, the employees of JSW selected Mr. Artur Wojtków to be the staff’s candidate to serve as a JSW Management Board Member. Whereas the Group's employees, as the staff’s candidates to perform the function of JSW Supervisory Board Members, selected: Mr. Robert Łazarczyk, Mr. Robert Kudelski, Mr. Paweł Nieradzik and Mr. Arkadiusz Wypych.
CONTRIBUTION TO THE JSW STABILIZATION CLOSED-END INVESTMENT FUND After the end of the reporting period, i.e. on 4 May 2022, the JSW Management Board adopted a resolution to purchase series D investment certificates and subsequent series issued by the JSW Stabilization FIZ for a total target amount of up to PLN 5.0 billion. JSW obtained the approval from the Supervisory Board on 10 May 2022, and the Shareholder Meeting on 3 June 2022, for the acquisition of the above FIZ certificates. At the same time, the Company reports that the above action is not tantamount to contribution of cash to the FIZ.
JSW BUSINESS PARTNER SUPPORTS FAMILIES OF VICTIMS Voestalpine, an Austrian company has transferred EUR 130 thousand to the families of the victims in the mining catastrophes that took place in KWK Pniówek and Zofiówka Section in April 2022. The money transferred by Voestalpine was donated to the JSW Foundation which will hand the funds over to the 26 families.
UNDERGROUND CONNECTION JSW's Management Board appointed a team to analyze the possibility of improving the efficiency of utilization of the resource base, improving the management of the ventilation network, improving the economic efficiency of coal mining and optimizing production processes as a result of the ventilation connection of KWK Budryk with the Knurów Section. The results of the team's work have shown that as a result the amount of air flow will increase, thus lowering the level of methane hazard. The project will also stabilize the ventilation networks at KWK Budryk and allow the mining of larger quantities of coal. The connection also provides the opportunity to direct coal haulage between the mines.
REDUCTION OF METHANE EMISSIONS AT JSW On 7 September 2022, JSW S.A. announced the launch of new methane emissions reduction programs with a budget of EUR 23 million. The Methane Emission Reduction Program (“MERP”) is a research and implementation program with a budget of nearly EUR 22 million. The project received a record subsidy of EUR 11 million. The project will reduce methane emissions by 19 million m3 per year and produce 60,000 MWh of electricity in the methane utilization process. The project will ultimately be rolled out in all JSW mines. Another project that has received funding of EUR 900,000 is the Smart Methane Drainage System. The project aims to optimize and improve the efficiency of the mine's methane drainage system through its automation and digitization.
INCIDENT AT THE PRZYJAŹŃ COKING PLANT On 22 September 2022, an explosion occurred at the Przyjaźń Coking Plant owned by JSW KOKS in the process building used for grinding coal. Six people were injured in the incident. One person died as a result of his injuries.
MANDATORY TEMPORARY SOLIDARITY CONTRIBUTION On 7 October 2022, the EU Regulation of 6 October 2022 setting out an emergency intervention in the European Union's energy markets to tackle sharp price rises was published, specifically addressing the so-called mandatory temporary solidarity contribution. The regulation in question, as well as any national measures implementing the mandatory temporary solidarity contribution, or any equivalent national measures, could potentially affect JSW, but as of the date of publication of this report, it is not possible to determine the existence of this possible impact, as well as its possible extent.
GREEN TRANSITION WITH JSW From 8 to 9 November 2022, the Corporate and Investment Banking Congress was held at the Warsaw Stock Exchange with the participation of economists, experts and entrepreneurs, with JSW as a partner. The debated was hosted by Robert Ostrowski – Vice-President of the JSW Management Board for Financial Matters. As the largest producer of coking coal in the EU, JSW is essential to the climate transition process. In terms of internal transition, JSW is pursuing a number of long-term measures, including reducing its carbon footprint to 30% by 2030 and aiming for climate neutrality by 2050.
ABOVE-GROUND EXPLOSIVES STORAGE FACILITY AT THE BUDRYK MINE Built in the area of shaft VI of the Budryk mine, the “Innovative Above-ground Permanent Explosives Storage Facility” is the first such project in the Polish mining industry. The project was carried out by JSW and JSW Nowe Projekty in cooperation with the Central Mining Institute and ARH+ Mining CBR Sp. z o.o. The new solutions will be used in the future not only by mining companies, but also by police and military units and tunnel drilling companies.
MODERN POWERED SUPPORTS FROM JZR FOR THE KNURÓW SECTION JZR delivered a set of 143 sections of powered supports to the Knurów Section. These are the first sections entirely designed and built by JZR employees. They were built in longwall 34 being launched in seam 405/1, 900 meters underground. The average daily output from this longwall will be approx. 3,500 tons of coal.
AGREEMENT - INCREASE IN SALARY FUND On 8 February 2023 the JSW Management Board signed an agreement with the Representative Trade Union Organizations on the increase in the salary fund in 2023.Under the agreement, from 1 January 2023, the salary fund for JSW employees will be increased by 15.4%, i.e. approx. PLN 580 million.
CORPORATE APPROVALS IN CONNECTION WITH PLANNED DEBT FINANCING FOR JSW On 10 February 2023, the JSW Supervisory Board issued a positive opinion on the JSW Management Board's motion to the Company's Shareholder Meeting to obtain the necessary corporate approvals for the establishment of collateral in connection with the planned sustainability-linked loan debt financing for JSW to be provided by a syndicate of financial institutions to refinance existing debt, general corporate purposes, and implementation of environmental investments. The financing is to be collateralized by, among other things, mortgages and registered pledges on JSW’s selected assets (OPEs), assignment of rights under certain commercial contracts to which JSW is a party, sureties granted by certain JSW subsidiaries and registered pledges on shares in the share capital of selected JSW subsidiaries. The syndicate's total declared commitment to JSW's financing will amount to approx. PLN 1.65 billion, including an increase in the financing of approx. PLN 1.0 billion.
On 16 March 2023, JSW's Extraordinary Shareholder Meeting approved the establishment of the above-mentioned collateral for JSW's planned debt financing.
SUPPORT FOR JSW FROM THE GOVERNMENT'S ENERGY-INTENSIVE SECTORS AID PROGRAM JSW has received financial support under a government program: Aid to Energy-Intensive Sectors Associated with Sudden Increases in Natural Gas and Electricity Prices in 2022 in the amount of PLN 16.8 million. The application submitted by JSW was favorably reviewed by the National Fund for Environmental Protection and Water Management and the Ministry of Development and Technology. A total of 208 companies (including 14 micro and small businesses, 55 medium-sized and 139 large enterprises) were granted aid under the program.
COKING COAL AGAIN ON THE EU LIST OF CRITICAL RAW MATERIALS On 16 March 2023, the EC published a draft Regulation on establishing a framework for ensuring a secure and sustainable supply of critical raw materials. Attached to the document is an updated proposal for the List of Critical Raw Materials, which includes coking coal for the fourth time, thus maintaining its status as a critical raw material for the European economy.
ANNOUNCEMENT OF FORCE MAJEURE IN JSW On 17 March 2023, the JSW Management Board adopted a resolution on the occurrence of force majeure in JSW and the notification of the Company’s business partners of its occurrence and the ensuing consequences for the obligations affected by the operation of force majeure. The adoption of this decision is related to the occurrence, on 7 March 2023, of a fire in KWK Knurów-Szczygłowice, Knurów Section. The area of the longwall where the incident occurred has been sealed off. After the operation, a fire field will be designated. For the time being, it is not possible to determine the time for which the area will be sealed off. As a result of the analyses conducted, the impact of the event in 2023 has been estimated at 250 thousand tons of reduction in the level of production at KWK Knurów-Szczygłowice. As at the date of approving these financial statements, it is not possible to specify the full impact of the incident on the future prospects of the Group.
BEST ANNUAL REPORT 2021 In the annual “The Best Annual Report” competition organized by the Institute of Accountancy and Taxes was held in Warsaw, aimed to evaluate issuers' annual reports for their value in use and to promote good financial reporting practices, JSW won two awards in the enterprise category: third place in the main competition and a special award for the best integrated report.
CLIMATE-CONSCIOUS JSW JSW ranked fourth among 152 listed companies whose 2021 reports were evaluated during the fourth edition of the Corporate Climate Awareness Survey organized by the Reporting Standards Foundation, Polish Association of Listed Companies, Bureau Veritas Polska in cooperation with MATERIALITY.
25TH IPMA POLAND CONFERENCE – JSW WITH A TROPHY JSW has become a silver finalist in this year's edition of the Polish Project Excellence Award.JSW won second place in the Organizational and Social Projects category, for the implementation of a strategic management tool at the Group.
THE “3600 JSW MINES” APP WON AN AWARD The “3600 JSW MINES” app developed by Group employees won the first-level award in the “Organizational and Educational Projects” category in the National Competition for the Improvement of Working Conditions organized by the Ministry of Family and Social Policy.
JSW AMONG LEADERS IN CLIMATE ACTION JSW has joined for the first time in reporting in the renowned climate action rating of the UK-based international organization CDP (formerly “Carbon Disclosure Project”). JSW was awarded a high score of C, outranking all other companies from the mining sector. The distinction reflects the fact that JSW not only discloses climate-related information (in particular its carbon footprint), manages climate change in the organization, but also undertakes real action to prevent climate change.