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

4.5. Issues related to the natural environment

In 2012 the Group continued integrated environmental protection measures giving consideration to the needs of local stakeholders and the local community. All these measures were taken while respecting the environmental conditions prescribed by law and the principle of sustainable development. The Group’s priorities are to act responsibly on the basis of the highest standards concerning the environment, safety and product quality and to be consistent in undertaking environmental tasks.

The Group treats care for the natural environment as its Corporate Social Responsibility for the local community and not just as a matter of fulfilling the duties following from the application of the law. Environmental awareness is one of the major values by which the Group is guided. In 2012 the Parent Company’s Interdisciplinary CSR Task Force crafted the Corporate Social Responsibility Strategy in JSW S.A. for 2013-2015, where one of its major objectives is to act with awareness and responsibility in the area of environmental protection.

The Group’s responsibility for the natural environment is reflected by measures taken to minimize the adverse impact exerted by its operations on the environment, and to meet the environmental protection requirements stemming from the best available techniques (BAT), where executing them makes it possible to achieve a high overall level of environmental protection on the whole. By following best practices in this area the Group is taking action focused on constant oversight and monitoring while showing care for having the lowest possible volume of pollutants emitted into the environment, and taking all steps possible to utilize space and natural resources in an optimum manner.

Raising its responsibility for the natural environment and social environment, thereby giving evidence of its conviction concerning the importance of consciously managing according to the principles of sustainable development, in 2012 the Group carried out designated environmental protection tasks in the following area:

• protecting surface water against salination and pollution with other sewage,
• rationally managing waste, primarily mine waste,
• curtailing the emission of pollutants (including greenhouse gases: methane and carbon dioxide) into the air,
• minimizing the impact of mining operations on the land surface,
• conducting environmental education.

Protecting surface water against salination and pollution with other sewage,

JSW S.A. took actions to reduce the quantity and load of salinated underground mine water released into surface sewage through segregation of water from draining mines and to use it to the greatest extent: for the mines’ technological purposes (e.g. in the coal preparation plants) and in underground mining pits for fire prevention and to liquidate unnecessary mining pits.

The unused water from draining the Borynia-Zofiówka, Jas-Mos, Krupiński and Pniówek mines were dosed into the Odra River using a hydroengineering method of water protection, i.e. the Olza retention and dosage system operated by PGWiR in Jastrzębie-Zdrój.

The unused water from draining the Budryk mine was desalinated in the Dębieńsko Desalination Plant whereby there was no environmental impact.

PGWiR steadfastly perfected the Olza retention and dosage system. The measures taken were to continue modernization and refurbishment work and to obtain the indispensable retention capacity of the settlement tanks to align the system to the needs resulting from opening and operating the resources of new deposits.

Rational waste management

In conjunction with the necessity of adjusting the operations of mining companies to the standards of the mining waste act, all the Group’s mines, prior to 1 May 2012, obtained the required decisions and customized their mine waste management system to meet the requirements of this law.

The Group took action to reduce the quantity of mine waste produced and to utilize it to the greatest extent in underground mining pits and to use it to produce and sell crushed rock, as well as to use mine waste on the surface in a way that is safe for the environment in accordance with the assumptions of the Strategy approved in July 2008 for managing post-production mine waste in Jastrzębska Spółka Węglowa S.A. Intensifying action to produce crushed rock in the mines’ coal preparation plants and to sell it will provide for the optimum utilization of the mine waste produced in highway and road construction, in civil engineering and hydro engineering projects.

All of the Parent Company’s mine waste management facilities are covered by technical and biological reclamation based on traditional and soil-free greening methods using FRISOL, to guarantee the rapid and sustainable achievement of the intended environmental effects.

Taking these measures will lead to higher Group revenues as a result of selling waste and crushed rock used as a construction material and to lower unit costs associated with the utilization of mine waste, while also substantially curtailing the unfavorable impact exerted by mine waste on the natural environment through the optimum utilization of space and natural resources with special emphasis placed on reclaiming and revitalizing terrain and land degraded through mining operations.

Curtailing emissions of pollutants

Curtailing greenhouse gas emissions in the Parent Company was accomplished by making the maximum energy utilization of gas through methane drainage in mines. In 2012, the utilization ratio of methane from methane drainage in mines for electricity and heat production increased from 71% to 87% and the methane emissions decreased by approx. 24.1 million m3 as compared to 2011

Since SEJ, Koksownia Przyjaźń, KK Zabrze and WZK Victoria participate in the scheme for greenhouse gas emission allowance trading with respect to carbon dioxide, steps were taken to fully secure the emission needs of the coking installations and the co-generation plant To obtain the missing allowances SEJ undertook to execute joint implementation projects. In 2012, approval lists were issued for the projects involving the utilization of the methane drainage gas from the mines.

Minimizing the impact of mining operations on the surface

In curtailing and eliminating the impact exerted by mining activity on the earth surface, preventive activities were continued and the scale of mining damage repairs increased. In 2012, within the boundaries of the mining area of JSW S.A.’s mines with a surface area of 214.94 km², 850 structures were repaired at an expense of PLN 87.2 million. All the planned activities have been consulted on an ongoing basis with local self-government units and with the interested individuals and monitored and adjusted to ensure the maximum efficiency.

Environmental education

In 2012 JSW S.A. continued to promote an environmental lifestyle among its employees and business partners, by conducting pro-ecology educational campaigns encouraging them to participate actively in the protection of the natural environment. To enhance environmental awareness among employees and the external environment, the Group has developed and made available an environmental leaflet providing information on actions to protect the natural environment.

Key environmental protection accomplishments of the Capital Group companies in 2012 

The Group’s following environmental protection accomplishments in 2012 deserve special mention:

• The Krupiński Mine obtained a decision on the environmental conditions necessary to be met to obtain a new concession to mine the Krupiński deposit within the boundaries of the Suszec III mining area extended to include the new documented area.
• In the Borynia-Zofiówka mine an environmental impact report was prepared for a project for the purpose of obtaining a decision on the environmental conditions necessary to be met to apply for altering the concession for the Borynia deposit and work was begun on devising the pertinent environmental report for the Bzie-Dębina 1-Zachód deposit.
• The Parent Company commenced activities and cooperation with experienced partners with the necessary technical and economic resources to build facilities to recover coal and crushed stone in the facilities for managing mine waste from the Krupiński and Budryk Mines. The decision to build and operate this installation will be made after conducting tests, preparing a feasibility study and conducting economic and financial return analyses.
• In Q2 2012 WZK Victoria commissioned one of the most modern coking gas treatment installations in Europe to remove hydrogen sulfide and ammoniac and to utilize them in an environmentally and economically justified manner. Thanks to this technology the coke plant will attain better environmental protection standards than in the EU or Polish standards.
• PGWiR received a water rights permit to release salinated water into the Odra River through the Olza retention and dosage system originating from draining water from the mines of JSW S.A. and Kompania Węglowa S.A. with a term of validity until 31 December 2020.
• SEJ EC Zofiówka conducted activities to prepare for the construction of a new co-generation power unit using electricity and heat on the basis of a CFB fluid boiler or an alternative solution. The new installation will meet the environmental protection requirements in the IED directive, slated to be more stringent as of 2016.