Europe's largest coking coal producer Poland-based Jastrzebska Spolka Weglowa SA (JSW) has announced that it signed a preliminary agreement on Friday, April 10 with Polish coal miner Kompania Węglowa for the purchase of the Knurów-Szczygłowice coal mine for PLN 1,49 billion ($491.2 million).
With this acquisition, JSW will expand its base of resources and will be able to increase its output. Kompania Węglowa will use the funds from the sale to mitigate the impact of the crisis on the coal market and for the implementation of its investment program.
According to JSW's statement, the production capacity of the mine is estimated at 3.8 million mt of coal per year, including about 40 percent of coking coal. The mine's coal resources amount to 1.26 billion mt, ensuring the functioning of the mine for over 80 years.