Press Release

White & Case Advises Jastrzębska Spółka Węglowa S.A. on Acquisition of Knurów-Szczygłowice Mine

Global law firm White & Case LLP has advised Jastrzębska Spółka Węglowa S.A. (JSW) on the acquisition of an organized part of the enterprise of Kompania Węglowa S.A., including the Knurów-Szczygłowice coal mine, for PLN 1.49 billion.

JSW is the largest producer of high quality type 35 (hard) cooking coal and a significant coke producer in the European Union. White & Case provided comprehensive support for the acquisition, including advice on financing through private placements of secured bonds under the issue programme in two tranches of, respectively, PLN 700 million and US$163.76 million.

Warsaw-based White & Case partner Marcin Studniarek, who led the team which advised JSW, said: "The coal and coke market is cyclical in nature and global fluctuations in price have a significant impact on the profitability of mining plants. Any action aimed at reducing mining production costs and expanding the resource base are important factors in determining the competitive edge of mining companies.

"The White & Case team which advised JSW successfully navigated a complex transaction, underlining the Firm's capability in providing legal advice to mining companies. We were very pleased to support JSW in the pursuit of its strategic goals."

During 2013, the output of JSW's five existing mines was 9.8 million tonnes of coking coal (including 7.8 million tonnes of hard coking coal) and 3.8 million tonnes of steam coal. Prior to the acquisition of the Knurów-Szczygłowice mine, the anticipated coal resource of the JSW mines was around 2.2 billion tonnes, including approximately 600 million tonnes of recoverable resources.

The Knurów-Szczygłowice mine has an annual coal production capacity of 3.8 million tonnes, including 40 percent coking coal. Its anticipated coal resources are 1.26 billion tonnes with recoverable reserves of 375.1 million tonnes, including 119.7 million tonnes under current valid licenses.

The White & Case team in Warsaw was led by partner Marcin Studniarek with support from local partners Aneta Hajska and Tomasz Ostrowski, counsel Jakub Gubański and Grzegorz Jukiel and associates Aneta Urban, Rafał Kamiński and Magdalena Zmysłowska.

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