Jastrzębska Spółka Węglowa is continuing its talks with Prairie Mining regarding the acquisition of coking coal seams forming part of the Dębieńsko deposit in Upper Silesia and in the Jan Karski Mine located in the Lublin Coalfield.
Prospecting studies have confirmed that part of the Lublin deposit contains semi-soft (type 34) coking gas coal which may potentially be extracted by JSW, thus strengthening the Company's resource base potential. In addition forming part of Jastrzębska Spółka Węglowa’s development strategy for the years 2018-2030, the Jan Karski Mine’s significance extends far into the future, even as far as 2050. “The Lublin Coalfield contains large reserves of coking coal capable of increasing Jastrzębska Spółka Węglowa’s production volumes and reduce production costs, which would contribute to improving the Company’s efficiency,” says Daniel Ozon, President of the Jastrzębska Spółka Węglowa Management Board. “JSW is a mining company, therefore we must strive to expand our resource base, because this is what will ultimately guarantee the continued operation of the JSW Group.”
The coal deposits that have attracted the Company’s attention are located in the central and south-eastern part of Lubelskie Voivodeship. The recoverable coal reserves in these deposits are 200 million tons of type 34.1 and 34.2 coking coal. The surface are of the deposit is 151 square kilometers. This is roughly five times the size of the Budryk Mine in Silesia’s Ornontowice. The deposit would permit the production of approx. 5 million tons of coal annually, and the mine construction cost is estimated at approx. PLN 2.5 billion. The new mine has the potential of generating approx. 2,300 jobs.
However, the talks are not guaranteed to result in the execution of a contract, nor is there any certainty as to the form of a possible deal. It should also be emphasized that the potential transaction, if it comes through, depends on the fulfillment of a number of conditions, which the Company has made clear in its press releases published to date.
JSW is also interested in acquiring the Dębieńsko deposit located in Śląskie Voivodeship from Praire Mining. Prospecting studies have confirmed the technical accessibility of the coal seams forming part of this deposit using the infrastructure of the neighboring Knurów-Szczygłowice Mine. However, the project’s technical terms would have to be modified and amendments to the pertinent administrative decisions, including concession-related decisions, would have to be obtained. As early as 18 months after obtaining the permits, it will be possible to extract up to 500 thousand tons of type 35 orthocoking coal (forming 90 percent of the resource base in this area) per year from the seams of the Dębieńsko deposit.