Polish coking coal producer Jastrzebska Spolka Weglowa (JSW) is reportedly looking to increase production by up to three million tonnes a year through the acquisition of assets.
Reuters reported that the company could raise output at levels greater than its existing plan to increase production to 18 million tonnes by 2030 from current the 15 million. JSW is the EU’s largest coking coal producer.
The latest plan comes at a time when countries are working on finalising the details of the 2015 Paris Agreement at the UN climate meeting in Poland.
Despite growing global calls for switching to cleaner sources of energy, JSW argued that coking coal used in steel should be treated differently from thermal coal, which is used for power generation.
The company also stated that coking coal is on the EU’s list of strategic minerals.
JSW CEO Daniel Ozon was quoted by the news agency as saying: “The world has to tackle the increase of carbon dioxide emissions, but I do not see a chance the world can live without steel these days and there is not an easy solution to substitute steel and substitute coking coal.”
Currently, thermal coal accounts for 25% of JSW’s total production. However, the company aims to reduce the share of thermal coal to 10% over the course of time.
In September this year, Reuters reported that JSW was awaiting the approval of Poland Energy Ministry for the acquisition of coking coal assets from Australia’s Prairie Mining.
The report also stated that the company was contemplating acquiring a controlling stake in the Australian company.