- JSW GROUP
- Our surrounding
- Strategy
- Activities in 2018
- Innovations
- Management rules
- Risks
- Outlook
Implementing the intermediate objectives involves various areas of activities, taking into account social and environmental aspects.
Strategic objectives
INDICIES:
- [G.1.1.]
JSW Group's strategy is based on four pillars:
DEVELOPMENT OF RAW MATERIAL BASE
- Acquisition of new concessions
- Exploration of new deposits
- Optimisation of on-going exploitation of thin deposit sections
EFFICIENCY IMPROVEMENTS
- Ivestments in new technologies
- Infractructure modernisation
- Optimisation of production processes and organisation
- Optimisation of decision-making support system in process to prepare deposits for exploitation
INNOVATIVENESS
- Initiating, prepearing and conducting R&D&I projects for the Group
- Securing EU funding for projects
SUPPORT FOR THE REGION
- Development of the Group’s employees
- Mid- and long-term investments in new technologies
- Support for local communities
The core strategic objectives are reached using intermediate objectives, which include:
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Securing access to coking coal resources through development investments enabling the Group to open up new deposits and new mining levels.
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Increasing the volume of coal output and sales to a net level above 18 million tons in 2030 and stabilizing coke production and sales at above 3.4 million tons in 2018-2030.
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Ramping up the share of coking coal production
in total output to above 85%
starting in 2020 – QUALITY Program. -
Optimizing the structure and level of costs by applying innovative solutions – the EFFICIENCY Program.
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Implementing innovative technical and technological solutions affecting the efficiency of distinct processes.
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Growing added value through efficient use of hydrocarbons and striving to achieve energy self-sufficiency – optimizing energy intensity.
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Developing human capital, continuing to enhance our high standards of safety and care for the environment.
Development investments
The strategy aims at the Group’s development in the long term, emphasising processes mainly focused on core business development.
The investment program within the strategy includes projects worth approx. PLN 19 billion for years 2018-2030, including PLN 16.0 billion in expenditures planned by JSW and PLN 1.3 billion by JSW KOKS, prioritising projects with the highest profitability and strategic projects that are of key importance to building the Group’s competitive advantage and leading to cost optimisation.
Increase in coal mining, sales and share of production
JSW plans to ramp up its coal mining activities to more than 18 million tonnes by 2030 and increase the share of coking coal to over 85%
Increasing the share of coking coal to over 85% of total production will result in the Group’s higher profitability
- The production structure for coking coal in total production is as follows:
- The share of coking coal reached about 74% in 2018
- Growth to over 85% is planned from 2020
The Group plans to decrease production of coal for energy purposes from approx. 26% to approx. 15% in 2030, which will have a direct impact on its results.
Total coal production growth
[mt]
Higher share of coking coal in production
[%]
Structure of JSW’s investment expenditures to 2030
Innovative technical and technological solutions
Research and development activities are intended to reach maximum environmental efficiency: we want to optimally use the finite and non-renewable resources that we obtain.
We also place emphasis on innovations in a social context, which will translate into greater occupational safety and lastingly contribute to reducing the risk of accidents underground. Implementing the adopted strategy and reaching its objectives would not be possible through standalone research and development actions. Effectively searching for, selecting, implementing and using innovations is possible only through the use of a structured approach encompassing all aspects of the Group’s activities and its organisational structure, leading to synergies – using the entire organisation’s experience and know-how and combining the competences of specific Group companies.
Optimisation of energy intensity
JSW Group’s energy security and self-sufficiency will be ensured through developing cost-effective generation capacities that are sufficient for JSW Group’s utilities needs as well as by increasing the use of by-products from coal mining (methane) and coke production (mainly coke oven gas) for electricity generation purposes.
Development of human capital
JSW’s departing (retiring) employees will be replaced mainly with well-qualified, younger staff. To this end, the company has executed an agreement with the AGH University of Science and Technology and the Silesian University of Technology concerning internships and scholarships for students at these universities. JSW is also working with city and municipal governments on mining profession education in areas where it operates. We plan to hire 1000 people by 2030.
The structural connections between operating segments constitute a complementary whole from the viewpoint of JSW Group’s development. Strategic lever mechanisms for the entire Group are visible in key areas of its activities in both short- and long-term:
| JSW Group’s key strategic drivers | Segment covered by the activity | |||
| Coal segment | Coke segment | Energy segment | Support area | |
| Maximisation of production volumes for key products | X | X | X | |
| Development of resource base | X | |||
| Investments and innovations | X | X | X | X |
| Increase in stability and competitiveness | X | X | X | X |
| Organisation refinement | X | X | X | X |
| Improvement in cost effectiveness and maximisation of margins | X | X | X | X |
| Development and optimal use of human resources | X | X | X | X |
| Corporate governance, care for the environment | X | X | X | X |
| Acquisitions and alliances | X | X | X | X |