Warsaw (Puls Biznesu) – Jastrzebska Spolka Weglowa (JSW), the largest coke coal producer in Europe, has prepared a strategy till 2010 to sustain capacity. Today, it explores 13m tonnes of coal a year. The strategy provides for improving effectiveness, Leszek Jarno, JSW CEO explained.
JSW comprises five mines, which have stocks for 11-30 years. The concern plans to joint three of those mines within two years. In the future, it is going to have capacity of 10m tonnes of coal annually.
The CEO estimates that the investments till 2010 will amount to PLN 4.16 billion (EUR 1.1 billion). The costs of merging the mines will amount to PLN 74.1m, while exploring reserve fields – PLN 0.5 billion. Janusz Olszowski, the CEO of the Mining Industrial and Trade Chamber, believed that JSW must invest in its future. Some specialists say, however, that instead of buying shares of Koksownia Przyjazn coke plant (JSW paid PKP state-owned railways PLN 500m for the stake), JSW should have spent those funds for its investment programme.
Last year, JSW had PLN 1.5 billion of net income. It employs 19,000 people. This year, it plans to have PLN 1 billion of net income.
(PLN 1 = EUR 0.255)