In the third quarter of 2024, the mines of Jastrzębska Spółka Węglowa (JSW) produced a total of 3.05 million tons of coal – a 6.4% increase compared to the previous quarter, but a decrease of nearly 11% compared to the third quarter of the previous year. After three quarters of this year, coal production in JSW amounted to 9.06 million tons.
The declining production is one of the main challenges, alongside rising extraction costs, that Jastrzębska Spółka Węglowa will have to address in the near future. The dwindling extraction has been a thorn in the company’s side for many months now. Just a few weeks ago, during the discussion of the semi-annual results of JSW, company representatives had to explain why the second quarter was even worse than the first – coal production in JSW decreased by 8.5%.
„The issue of reduced production, comparing both quarters, was primarily a consequence of events at the turn of 2023 and 2024, concerning fires in the Pniówek and Budryk mines. The issue of containment, shutting down exploitation fronts – this is one of the problems that affected us at the turn of the year. However, the need to remodel further extraction in these two mines results in the necessity of intensifying work related to launching additional faces in seams with different parameters than planned,“ argued Adam Rozmus, Vice President of JSW for Technical and Operational Affairs, during a September conference.
He added, „We hope that the actions taken in the second quarter will result in extraction in the third quarter.“
Indeed, the results of the third quarter show a glimmer of hope for an improvement in the situation. JSW published its production results for the third quarter on Tuesday, October 8th. According to the data presented, coal production totaled 3.05 million tons, higher than the second quarter of 2024 by approximately 6.4% (but lower by about 10.7% compared to the third quarter of 2023).
During the analyzed period, coking coal production amounted to approximately 2.5 million tons, higher than the second quarter of 2024 by about 8.5%, but lower by about 11.5% compared to the third quarter of 2023. On the other hand, coal production for energy purposes totaled approximately 0.55 million tons, lower than the second quarter of 2024 by about 2.1%, and lower by about 6.9% compared to the third quarter of 2023.
Total coal sales amounted to approximately 2.9 million tons, higher than the second quarter of 2024 by about 11.4%, but lower by about 11% compared to the third quarter of 2023. Coking coal sales reached approximately 2.45 million tons, higher than the second quarter of 2024 by about 7.9%, but lower by about 8.8% compared to the third quarter of 2023. Energy coal sales were approximately 0.45 million tons, higher than the second quarter of 2024 by about 34.7%, but lower by about 21.2% compared to the third quarter of 2023.
Regarding coke production, JSW plants produced 0.81 million tons in the third quarter of this year – an increase of about 11.6% compared to the second quarter of 2024, but a decrease of about 4.7% compared to the third quarter of 2023. Total coke sales in the third quarter of 2024 amounted to 0.74 million tons, lower than the second quarter of 2024 by about 3.2%, and lower by about 8.7% compared to the third quarter of 2023.
In the production report, JSW also addressed the market price situation for coal, which had an impact on the results in the analyzed period. The market data continues to be less than optimistic. According to the information provided, the average price index of The Steel Index (TSI) for coal in the period of April – August 2024, affecting JSW prices in the third quarter of 2024, was 234 USD/ton – a 17% decrease compared to the average TSI index from January – May 2024, affecting JSW prices in the second quarter of 2024. The estimated average price in PLN/ton of coking coal sold by JSW to external customers in the third quarter of 2024 decreased by about 10% compared to the previous quarter.
The challenges faced by Jastrzębska Spółka Węglowa are significant, but the company is actively working to address them and improve its production and sales figures. As the industry continues to evolve, JSW remains committed to adapting and overcoming obstacles to ensure its continued success in the coal market.