Management Board Report on the activity of the JSW S.A. Capital Group for 2012

4.4. More important achievements in research and development

More important projects executed in the mine segment by the Parent Company

In 2012 the Parent Company conducted a number of projects to enhance its operational effectiveness. Work was conducted inhouse and in collaboration with external entities. The following should be mentioned among the more important projects executed in the mining segment by JSW S.A.:

1. Measures to enhance the effectiveness of methane drainage:
   • under engagement from JSW S.A. the Barbara Experimental Mine of the Main Mining Industry Institute is performing an assignment entitled: Developing a concept for pre methane drainage from coal seams and analyzing the possibilities of using drainage roadways for operational methane drainage along with an assessment of the effectiveness of gas removal from a deposit in the conditions present in JSW S.A. Currently, a contract was completed for the Budryk Mine pertaining to the region of the B-10 longwall being designed in seam 401,
   • based on the design prepared by the Barbara Experimental Mine of the Main Mining Industry Institute, the Krupiński Mine implemented a new solution in JSW S.A. to drain methane from the region of the longwall in operation, by constructing a drainage roadway for the B-11 longwall in seam 348. At present, the B-11 longwall is in the initial phase of operation and the results obtained to date in methane capture confirm that this method is effective.
2. The Pniówek Mine has employed for the first time in the Polish mining industry an automated longwall shearer to mine seams of small and medium thickness, making it possible to obtain substantially higher production than the results obtained to date in longwalls with similar parameters. This shearer was installed in longwall C-1 in seam 404/1 in the Pniówek Mine. Using this shearer has made it possible to reduce the number of employees in the highest risk area, to automate production, to monitor the number of employees working in the longwall region and to observe the required safety standards in very difficult mining and geological conditions present in the region of operating the C-1 longwall. At present, this shearer is being prepared to be transferred to the C-2 longwall.
3. The Borynia-Zofiówka-Jastrzębie Mine in the Jas-Mos Section is preparing to conduct operational tests on a longwall shearer called MIKRUS developed in the KOPEX Capital Group to extract low seams. This solution is innovative and entirely new to mine thin seams with a thickness of 1.1 m to 1.5 m. This system is outfitted with a GUŁ-500 cutting and loading head with two cutting bodies, which is moved on the RYFAMA S-850N longwall conveyor along the coal side wall using a flexible connector system under sections of the KOPEX-095/17-POz mechanized shield. The entire longwall shearer system is powered and controlled through an integrated system outfitted with a central pulpit placed on the operator's position, which is situated in the conveyor road. Using this longwall shearer system will improve work safety as it eliminates the need for employees to be present on the longwall, while the usage of cutting heads instead of a plough makes it possible to enhance the efficiency and reliability of winning in difficult mining and geological conditions.
4. JSW S.A.'s mines have widely implemented mechanized dusting systems to spread rock dust in the underground mining pits using PK-900 POLKO, DROMADER, SMYK and JAMNIK dusting equipment. Spreading rock dust in underground mining pits is an effective method for combating the risk of coal dust explosion. Implementing mechanical dusting equipment enhances the efficiency of dusting, reduces the number of employees engaged in preparing dusting zones, and simultaneously provides for better coverage of the roofing and side walls of underground mining pits with rock dust, while reducing consumption compared to hand dusting.
5. Technical cooperation has been established with OKD in Ostrava. In the framework of this cooperation working teams have been appointed for the purpose of technical cooperation and sharing experience on specified topics between JSW S.A. and OKD in Ostrava. OKD mines function in similar mining and geological and technical conditions; according to the JSW S.A. and OKD Management Boards this cooperation is justified and expedient. Working teams were appointed to perform the agreements made at meetings in November 2012. Working teams were appointed in five topical areas:
   • methane hazard and methane drainage,
   • bump hazard,
   • selecting shields and maintaining roadway mining pits,
   • monitoring people, machines and equipment,
   • ventilation,
   • explosive works.
6. In 2012 the Parent Company joined a consortium conducting a project within the framework of the Coal and Steel Research Fund under the title: Sophisticated mine shield systems to improve control of the rock mass in conditions of large pressure, including the project: Shield for underground mining pits along the wall at a depth greater than 1000 m. The project coordinator of Sophisticated shield systems (…) is the Main Mining Sector Institute in Katowice, while the international partners are DMT of Germany, Gecontrol of Spain, Armines of France, OKD of the Czech Republic, University of Nottingham and UK COAL of the United Kingdom.
7. 7Continuing the process of unifying selected machinery, plant and equipment used in the company's mines, in 2012 the Parent Company:
   • established cooperation and signed the pertinent agreement with the Main Mining Industry Institute in Katowice to prepare the technical documentation of rails for suspended trains to meet the needs of JSW S.A.'s mines. Having this documentation (which will take place at the turn of 2013/2014) will facilitate outfitting the Parent Company's mines with uniform rail routes, will simplify and accelerate tender procedures and will as a result enhance work productivity,
   • acquired the technical documentation for series of types of double timbers for wall rise galleries (initial slicing) and on its basis it purchases these double timbers,
   • acquired the technical documentation for two-yoke shackles and pipe sprags, and on their basis it purchases these accessories for the roadway shield,
   • continued on the basis of proprietary technical documentation for container cars the production of these cars in the Group. This is one of the elements of the program for modernizing the underground transportation system in the Parent Company's mines.

More important projects carried out by Group companies

1. The following tasks were performed in SEJ:
   • technical and economic concepts were devised for the future operation of EC Moszczenica to adjust this facility to meet environmental protection requirements after 2016 and to generate a positive economic result,
   • the central heating grid in the city of Jastrzębie-Zdrój was optimized,
   • talks were held to establish a joint scientific and industrial consortium with the University of Nature in Lublin to execute the project entitled “Processes and technologies to curtail and eliminate the emissions of CO2 originating from processes entailing the combustion of mineral fuels,
   • talks were held to establish a joint scientific and industrial consortium with the Euro-Center Scientific and Technologic Park – preparations to implement a heat recovery project from mine water,
   • concept of commissioning a pilot photovoltaic 1MW capacity power plant.
2. The following tasks were performed in JZR:
   • in the framework of designing the construction of mechanized shields construction documentation has been prepared for modernizing the sub-assemblies of the GLINIK 10/25-POz shield to the form of a JZR-11/25-POz shield, line sections and JZR-11/25-POz/S outer edge sections, a proprietary construction solution was prepared for the top head elevating the scope of work of the FAZOS 17/37-POz1 shield by 600mm, and a modification of the transfer system was prepared for cooperation of a section with the TAGOR-2/850 longwall conveyor and a possibility was introduced to build elements to correct the conveyor route,
   • in the framework of designing and producing mine container cars in July 2012 modified technical documentation was sold to the Parent Company for JZR 2014 material container cars. In October 2012 design work was begun for a new container car to transport the roadway arch shield and to transport long materials.
3. JSK cooperates with the Silesian Polytechnical University, the Rail Institute and Prvni Signalni of the Czech Republic signed an agreement to provide an experimental field for computer controlled rail traffic called MODEST-GEMINI. The purpose of this work is to create a Local Control Center in subsequent years.
4. In WZK Victoria completed work to implement modern technology to treat coking gas to remove sulfur and ammoniac through absorption and catalytic combustion in a Claus installation.
5. In 2012 PGWiR expanded its telemetric system to visualize the technological processes for pumping saline water, and to control remotely pumping processes.
6. Through Polski Koks S.A. an investment is being conducted under the name Building a Production Plant for Composite Solid Fuels at Polski Koks S.A., which is the result of implementing the clauses of the research and development program entitled “Clean Air for Silesia”, whose participants are the following: Polski Koks S.A., Jastrzębska Spółka Węglowa S.A., Silesian Polytechnical University, Institute of Chemical Coal Processing and the Klaster Kotlarski Association. The program's overriding objective is to combine the scientific and technical potential of the parties to the agreement to conduct research and development and technological assignments to fire environmentally the products of the JSW Coal and Coke Group.