Polish JSW declares force majeure due to fire at Budryk mine

The company may lose up to 345 thousand tons of production and has adjusted its annual forecasts

Poland’s Jastrzębska Spółka Węglowa (JSW), the largest coking coal producer in the EU, has declared force majeure due to a fire at its Budryk mine. The incident occurred on May 7, 2025, and forced the company to temporarily block the dangerous mining area due to endogenous ignition. This was reported by WNP.

According to preliminary estimates, JSW will lose about 345 thousand tons of coal in 2025. The full impact of the event on financial results is currently impossible to predict, the company said. If the situation changes, the company promises to promptly inform the market.

The fire at Budryk was another blow to JSW, which has already faced production problems at its Szczygłowice mine in January this year. Following these incidents, the annual production forecast was lowered from 14.5 million tons to about 12 million tons. At the same time, the trade union leadership warns that if no urgent decisions are made, the situation could deteriorate further.

According to Bohuslav Zentko, head of the Sierpień 80 trade union, JSW urgently needs to expand its resource base, in particular through the acquisition of mines currently owned by the Polish Mining Group (PGG). We are talking about Bielszowice, Halemba and Sośnica.

It is also proposed to launch a program of voluntary dismissal of administration employees. According to trade unions, this will save up to PLN 1.5 billion a year, which is the money needed for modernization and investment.

Jastrzębska Spółka Węglowa is a state-controlled company that supplies coking coal and coke to key steelmakers in Central Europe, including Poland, Germany, Austria, the Czech Republic, Italy and India.

As GMK Center reported earlier, in 2024, JSW reduced its coal production by 9.3% (12.3 million tons) and coke production by 8.6% compared to 2023 amid difficult geology and operational challenges. The company recorded a net loss of PLN 7.3 billion last year.