Poland’s JSW invested more than $330 million in capacity upgrades in Q1

Polish coking coal producer Jastrzebska Spolka Weglowa (JSW) increased capital investments by 12.3% year-on-year – to PLN 1.3 billion ($339 million) in the first quarter of 2024. This is stated in the company’s press release.

First of all, the funds were allocated to key development projects related to the discovery of new deposits and production levels, modernization of coal processing plants, modernization of coke oven battery No. 4 in Przyjaźń Koksownia, and construction of the Radlin CHP unit at the Radlin Coke Plant.

In January-March 2024, the company produced over 3.1 million tons (-7.5% q/q) of coal and 0.8 million tons (-5.1% q/q) of coke. The decline was the result of force majeure at Borynia-Zofiówka-Bzie Ruch Borynia mine and a methane threat at Pniówek mine.

Sales of coke reached 1 million tons and coking coal 1.45 million tons in the period. Total revenues from sales increased by 2.3% q/q – to PLN 3.4 billion. EBITDA decreased by 23.9% q/q – to PLN 532.1 million.

«We are already planning actions aimed at increasing profitability and stabilizing the financial situation. We need to optimize costs and increase production efficiency in all segments of our business. In the mining sector, our priority remains to restore the baseline production level at the mines by eliminating the consequences of the events and disasters of 2022-2023, which have significantly affected production capacity in recent quarters,» said Richard Janta, President of the Board of JSW SA.

As GMK Center reported earlier, in the fourth quarter of 2023, JSW increased sales of metallurgical coke by 5% year-on-year to 790 thousand tons. Coal production decreased by 2.5% y/y – to 2.69 million tons, while coke production increased by 28% y/y – to 870 thousand tons.