JSW coal restructures costs, works on solidarity contribution solution

"The current situation of the company is very difficult. We have no influence on market conditions or exchange rates, but we do have control over costs, and we must focus heavily on that. Despite operating within the framework of the Strategic Transformation Plan (PST), it is insufficient and this is what we must address," said Boguslaw Oleksy, acting deputy CEO.

The supervisory board of JSW has appointed Boguslaw Oleksy as a member of 11th-term management board effective October 1, 2025, assigning him the role of deputy CEO for economic affairs, the company said in a market filing. Oleksy resigned from his position of a supervisory board member.

"We have secured funds for payments within the planned timelines. Given our needs, we must start deep cost restructuring," Oleksy said when asked how long the company has secured funds for employee payments.

He pointed out that the results for the first half of the year show a positive trend in mining cash costs, but it is "insufficient." Due to a significant increase in unit cash conversion costs in the coking segment (an 18.9 percent year on year rise), the management board will intervene in JSW Koks.

"We are not cost competitive," Oleksy said.

He added that negative working capital signals problems, forcing additional actions. They are intensively addressing cash flow, as the company’s situation is difficult and funding from the company's rainy-day fund FIZ will soon end, impacting liability payments. Their focus is on using all instruments to maintain liquidity.

Oleksy recalled that JSW is taking steps to stabilize liquidity, including renegotiating client contracts, optimizing capital spending, negotiating with banks and Poland's social insurer ZUS, and seeking a refund of the PLN 1.6 billion (EUR 374.5 mln)solidarity contribution.

"We expect cooperation from the owner, social partners, and financial institutions," he said.

Bogdan Oleksy reported that regarding the refund of the solidarity contribution, intensive work is ongoing to develop an applicable instrument.

Oleksy said that an interministerial team from the Ministry of State Assets, Ministry of Energy, and Ministry of Finance has been established. He added the work is intensive and challenging, but they seek an instrument to avoid lengthy and ineffective court proceedings. He noted a solution is being prepared, and they are working hard to convince the ministers it is feasible.

"We assumed the refund should occur early next year. Hence, the intensive work to develop an instrument that can be presented. Of course, one must bear in mind the very difficult budget situation, and talks with the Minister of Finance are not easy," he said when asked about the expected timetable.

"We are working systemically and want to present this solution to the ministers soon," he added.

JSW CEO Ryszard Janta, when asked if the management had considered transferring employees to one of the PGG mines scheduled for closure to benefit from the voluntary departure program funded by the budget, replied: "Yes, the management has analyzed this concept. Generally, the management continuously analyzes all possible scenarios based on applicable laws."

He reminded that in March this year JSW’s management requested the Ministry of Industry and the Ministry of State Assets to cover the company with provisions of the amended Mining Functioning Act. He noted that at the current legislative stage, the company is not subject to the act’s provisions, and the final form of the regulations is not yet known.

pel/ nl/ ao/ han/