coal

Central European hard coal and coke producer New World Resources (NWR) has expressed its confidence in reaching an agreement with the Czech Republic state by the end of this month, to delay the planned closure of its Paskov hard coal mine.

Paskov is NWR’s only active site in Staric and also the only operational mine in the Ostrava region.

The unprofitable Paskov mine was slated for closure this year, but NWR and the Czech Republic state have been negotiating a deal for the government to fund social programmes for miners who lose their jobs, in exchange for keeping the mine open until the end of 2017.

NWR chairman Gareth Penny recently met with Finance Minister Andrej Babis and Industry Minister Jan Mladek to finalise the deal.

Reuters reported Industry Mladek as saying that the two parties still need to reach an agreement on possible compensation for NWR, if coal prices continue to decline.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
"If prices fall, either the compensation would have to rise or the miners’ employment period would have to decrease, because it would generate bigger losses." 

"Their position is such that, if prices fall, either the compensation would have to rise or the miners’ employment period would have to decrease, because it would generate bigger losses," Mladek said.

New World Resources owns some of the largest hard coal mines in the Czech Republic, and the company reported a net loss of €80.3m during the first quarter of 2013, due to low prices and a weak global demand from steel-making companies.

The company has commenced the process of divesting its coke operations, OKK, as part of its plan to return to profitability.

In the past two years the average contracted price of coking coal has dropped 35%.


Image: NWR plans to close its unprofitable Paskov Coal mine this year. Photo: courtesy of Dan at FreeDigitalPhotos.net.

Energy