Polish JSW reduced production of coking coal by 7% y/y in January-March

Coke production in the first quarter fell by 12% y/y

In January-March 2023, the Polish producer of coking and thermal coal Jastrzebska Spolka Weglowa (JSW) reduced the production of coking coal by 7% compared to the same period last year – to 2.66 million tons. Kallanish reports about it.

Sales of coking coal for the first quarter increased by 5% to January-March 2022 – up to 1.76 million tons. A decrease in sales rates within the group contributed to a decrease in raw material production.

In the quarter, coke production by the Polish JSW decreased by 12% compared to the same period last year – to 770,000 tons, and sales – also by 12%, to 840,000 tons. At the same time, both indicators were significantly higher than in 4 quarters of 2022.

The average selling price of JSW coking coal in the first quarter increased by 2% compared to the previous quarter in zloty terms, and by 7% in dollar terms. At the same time, the price of coke fell by 7% and 1%, respectively.

In 2022, JSW reduced external sales of coking coal by 7% y/y – to 6.4 million tons, while sales of coke fell by 11% – to 3.2 million tons.

In the 4th quarter, the company reduced the total volume of coal production by 2.9% compared to the same period in 2021 – to 3.47 million tons. Production of coke during this period amounted to 680 thousand tons, which is 23.6% less y/y, and coking coal – by 0.4% y/y, to 2.76 million tons.

As GMK Center reported earlier, JSW recently signed a financing agreement under the Sustainability Linked Loan formula for decarbonization and sustainable development of its facilities in the amount of 1.65 billion zlotys ($392.3 million). This is the first such financing of the mining industry in Central and Eastern Europe.

JSW targets set out in the SLL include reducing greenhouse gas emissions (compared to 2018) by 27% by 2026 and by 30% by 2030, increasing methane capture to 50% by 2026 and methane management – to 90% by 2026.