Legal basis: Art. 56 section 1 sub-section 2 of the Offerings Act – Current and Periodic Information
Body of the report:
The Management Board of Jastrzębska Spółka Węglowa S.A. („Company”) reports that the total value of the transactions between the companies belonging to the JSW Capital Group and the companies belonging to the ArcelorMittal Poland S.A. Capital Group in the period from 04 July 2011 to the date of publication of this report is PLN 627,783,479.33 (say: six hundred twenty-seven million seven hundred eighty-three million four hundred seventy-nine zloty and 33/100).
At the same time, the Management Board of Jastrzębska Spółka Węglowa S.A. reports that the estimated value of the currently-binding contracts between the companies belonging to the JSW Capital Group and the companies belonging to the ArcelorMittal Poland S.A. Capital Group from the date of publication of this report until the end of their term of validity is PLN 1,501,049,629.25 (say: one billion five hundred one million forty-nine thousand six hundred twenty-nine zloty and 25/100).
The contract with the greatest value is the Coking Coal Supply Contract (“Contract”) signed on 14 February 2011 by and between Jastrzębska Spółka Węglowa S.A. with its registered office in Jastrzębie-Zdrój and ArcelorMittal Poland S.A. Branch in Zdzieszowice.
Material conditions of the Contract: price conditions are agreed on a quarterly basis.
The Contract is in force from 01 January 2011 to 31 December 2011.
The Contract’s settlement currency is PLN.
The Contract’s estimated net value until its term of validity is PLN 449,970,000.00.
The Contract contains clauses concerning contractual penalties payable to JSW S.A. in the event that ArcelorMittal Poland S.A. Branch in Zdzieszowice re-sells coal to other entities in the amount of 25% of the gross value of the coal sold. The Contract does not govern the rights to pursue claims for damages in excess of the aforementioned contractual penalty.
Moreover, the Contract contains mutual clauses concerning sanctions in the event either of the parties to the Contract defaults on contractual obligations equivalent to 10% of the gross value of product that is not delivered or taken. In the event that parties to the Contract incur damages exceeding the contractual penalty due and payable, they may pursue additional indemnification.
The Contract’s other conditions do not deviate from the conditions generally applicable to these types of contracts. The transactions between the JSW Capital Group and the ArcelorMittal Poland S.A. Capital Group in the period from 04 July 2011 until the date of publication of this report have exceeded 10% of the Company’s equity.
Legal basis:
§ 5 section 1 sub-section 3 of the Regulation issued by the Finance Minister of 19 February 2009 on the Current and Periodic Information Transmitted by Securities Issuers and the Conditions for Recognizing the Information Required by the Regulations of a Non-Member State as Equivalent (Journal of Laws, 2009, No. 33, Item 259 as amended).