Jastrzebska Spolka Weglowa : Provincial Council for Social Dialogue on “Krupiński” mine 17-01-2017

- We presented the arguments to the Council, and it clearly shows that there is no other way as to transfer the 'Krupiński' mine to SRK. All the miners are guaranteed a job - said Tomasz Gawlik the president of JSW in Katowice, during the session of the Regional Council for Social Dialogue.

Eight independent studies conducted by the company show that even with the favorable prices of coal, there is no chance for a stable, profitable mining at 'Krupiński'. The last one was carried out in November last year. It shows that if the 'Krupiński' remained in JSW till the end of the planned end of the extraction, that is, 2021, the company would have to pay extra at least 230 million PLN even with today's high prices of coal.

These are short-term increases. History repeatedly showed that such high prices will not last long, and we have to think about the future of the whole company in the perspective of many years - explained the president Gawlik. - Remember that even in times of good economic situation in 2011, the 'Krupiński' mine generated loss.

Adopted and conducted by the board of JSW scenario associated with the transfer of 'Krupiński' mine to the Mines Restructuring Company, will bring benefits to the company. Phasing out of extraction means lack of investment, which is a significant costs reduction.
JSW Management Board repeatedly stressed and maintains declaration that in connection with the transfer of 'Krupiński' to SRK, no one will lose jobs. The process of allocation of miners to other mining companies began in December. So far, 84 employees were transferred in mid-January, 33 of them to 'Pniówek' mine and 31 to 'Budryk' mine. Next employees will be transferred in accordance with the schedule of finishing work at the 'Krupiński' mine. Most of the miners will go to other plants until the date of transfer of 'Krupiński' to SRK, which is
April 1.

- Transfer of employees is done on the basis of mutual agreement. No one receives a new contract, but only an annex to the current agreement. Before signing the agreement each employee is presented an individual proposal for a new job, along with certain basic conditions of employment. The entire allocation process takes place with accordance to the employment guarantee - explains Krzysztof Grobosz, director of human resources office
at JSW.

Since December 14 an information point operates at 'Krupiński', where employees are able to obtain all the necessary information on both the protective instruments, as well as the principles of transfer to other mines. In addition, from January 10 twice a week, every Tuesday and Thursday at the information desk of 'Krupiński' there are workers of ' Borynia- Zofiówka-Jastrzębie',' Budryk 'and' Pniówek' mine who provide detailed information on remuneration system in these mines.

The decision to transfer 'Krupiński' mine to the Mines Restructuring Company was adopted by the Extraordinary General Meeting of JSW Shareholders on 1 December 2016 year. Over the last 10 years Jastrzębska Spółka Węglowa has transferred to Krupiński about a billion PLN. We analyzed a number of scenarios for the mine. None of the analyzed investment options guarantees lasting improvement of its financial results. The Board plans to build at the mine a large logistics center of the whole group and a methane development center.