Mission, vision and values

JSW Group operates in a complex social and economic environment. Extractive operations are carried out in difficult geological and mining conditions, meaning that these activities are fraught with multiple risks. The large depths of over 1000 metres where mining takes place, complicated tectonics and the geomechanical properties of rocks (rockmass) make mining operations substantially more difficult. A superbly trained crew with considerable experience and technical and organisational culture have developed a range of solutions that make it possible to achieve production targets.

Swings in product sales price, which are correlated with global economic cycles, have major impact on the Group's activities. The strategy in place takes into account the identified risks and conditions as it sets out the main operational directions within the strategy time-frame. Actions taken by competitors, changes in the Group's financial situation and the target shape of coking coal and coke sales markets, mainly its allocation capabilities, necessitate continuous monitoring and adaptive measures for the Group's operations.

Furthermore, events and conditions that had material impact on the achieved results (e.g. by lowering output and increasing costs) include extraordinary events that result from the natural hazards present in underground mining facilities and external factors - the pandemic. A range of activities intended to minimise the potential effects of the virus spreading amongst JSW employees - especially in the mines - were continued in 2021 in response to the pandemic.

Additionally, growing pressure on economic entities in the extractive and steel industries can be seen due to legislative changes and the EU's climate and environmental policy.

Based on these requirements, in its operations JSW Group has planned to take measures to reduce greenhouse gas emissions, implement the Group's planned investment projects covering the main sources of emissions until 2030, continue the development of innovative emission reduction technologies for further neutralisation until 2050 (Net Zero) and diversify the Group's business on the basis of low-carbon and taxonomy-compliant products and services.

Significant factors for JSW Group's development

External factors
  • pandemic-related disruptions in the company's operations,
  • changes in EU climate policy and increasingly strict environmental standards for manufacturing companies,
  • economic trends in domestic and global economy,
  • cyclical nature of industries consuming coal and coke,
  • changes in demand and prices for the Group's products,
  • situation on the steel market,
  • level of imports of products that the Group sells,
  • sea freight rates facilitating the allocation of raw materials on the global market,
  • unplanned shut-downs of steel production capacities,
  • investments (or their lack) in new steel production capacities,
  • development of new technologies for steel production,
  • investments in PCI installations that limit coke consumption in steel production,
  • major steelmakers' policy to meet raw materials demand internally,
  • high quality requirements from steel producers,
  • dependence of standalone/independent coking plants on deficit of demand for coke from steelworks integrated with coking plants,
  • export potential of other producers and coking coal and coke exporters globally and in the EU,
  • increase in the share of spot transactions in trading structure,
  • differences in costs to extract coking coals and produce coke between the largest producers in the world,
  • changes in PLN and other currency exchange rates in relation to EUR and USD,
  • monetary, fiscal and tax policy developments, regulation, interest rate levels and changes, inflation rate, availability of short-term and long-term debt and equity financing, credit risk
  • changes in government policy for the mining, coking and steel sectors,
  • potential disruptions in rail freight and restrictions in loading and logistics processes,
  • Implementation of trade union agreement

Internal factors

  • costs of producing coal and coke at the Group, having impact on sales profitability,
  • quantity and quality of coal extracted and coke produced by the Group,
  • investments resulting in improvements in efficiency and effectiveness of coal and coke production,
  • level of safety in production processes,
  • intensity of natural threats and tectonics of mines,
  • extraordinary events that can disrupt production processes,
  • breakdowns of machines and mining equipment used in production processes,
  • relations with employees and threat of collective disputes,

JSW S.A.'s strategy 2022-2030, encompassing JSW Group subsidiaries, adopted in 2022, constitutes a response to the challenges resulting from a dynamically evolving market situation and economic environment, changes in the Group's capital structure as well as the intention to strive for stable, long-term development.

The strategy outlines the Group's development directions, highlighting the strategic areas where the Group will be focusing, and in particular it defines the Group's mission, vision, strategic objectives, ways to build competitive advantage and strategic assumptions for each area of the Group's operations.

JSW Group's mission

is to strengthen its position as leading producer and supplier of coking coal and coke in Europe in a way that ensures growth in the Company's value, while taking into account the expectations of its stakeholders.

JSW Group's vision

is to be a supplier of a strategic chemical raw material that is essential in steel production, which is the foundation of sustainable development and transition to a low-emission economy.

We are certain that building our Group’s value on the basis of ethical principles and in dialogue with stakeholders constitutes an essential element of a long-term management strategy.

We are a company that is continuously learning, drawing on best practices, striving to be a socially responsible enterprise and contributing positive values to our relations with the surroundings in which we live and work and, most importantly, with our customers, suppliers, shareholders, neighbours - in places where our facilities are located - as well as trade unions and employees.

The management approach to these issues is set out in JSW Group's Sustainability Strategy 2021-2030, which is an element of JSW Group's Strategy and is based on seven areas that serve as our objectives.