PBSz SA to perform underground works for JSW SA

More

On 30 November 2018, Przedsiębiorstwo Budowy Szybów SA (PBSz SA) belonging to Primetech SA concluded an agreement with Jastrzębska Spółka Węglowa (JSW SA) for the performance of underground works. The works will be completed at the KWK Borynia-Zofiówka-Jastrzębie Ruch Zofiówka coal mine belonging to the JSW Group. The investment in which PBSz SA will be involved is associated with plans to obtain access to new excavations by coal mines belonging to the JSW Group and, thus, to increase coal production.

The agreement signed by PBSz SA stipulates that this company performs underground works in indicated locations at the Borynia-Zofiówka-Jastrzębie Ruch Zofiówka coal mine within 42 months. These works will include e.g. drilling two drifts and a testing gallery. Within one month following the conclusion of the agreement, JSW will inform the contractor of the exact locations in which the works will be performed. The net value of the planned works amounts to almost PLN 49.5 million.

With about a thousand employees at the moment, PBSz has competence in the design and construction of shafts, which is unique as far as Polish conditions are concerned. The company has years of experience in performing complex and comprehensive projects for the Polish mining industry.

Given the recent intensification of investment processes in Polish companies – especially of those related to access to new coal deposits and the increase in coal production – PBSz has been systematically developing its competence not only in drilling shafts but also in performing the so-called ‘horizontal’ underground works. The agreement with PBSz is to provide access to new coal seams for the JSW Group, which will translate into the increase in coal production over the next few years – says Bartosz Bielak, Vice-President of the FAMUR SA Management Board.

The operational strategy for 2018–2030 published by the JSW Group includes considerable investments in the mining sector aimed, in particular, at building shafts, deepening them, and performing horizontal works. Due to the ambitious plan of the JSW Group, which is currently implemented and is to be implemented in future periods and the goal of which is to increase production – especially of coking coal sought-after by the metallurgical and steel sector – the Group is interested in purchasing PBSz SA as a result of its competence and references that may support the implementation of the JSW Group’s strategy. Negotiations between Primetech and JSW associated with the purchase led to the conclusion of a Term Sheet in July 2018. It outlines the basic conditions for the purchase of the shares of Przedsiębiorstwo Budowy Szybów SA by JSW SA. Last autumn, Primetech and JSW signed an Annex to the Term Sheet that extended the negotiation period until 4 December 2018. On 3 December, the parties signed Annex 2 that extended the negotiation period further until 21 December 2018.