Czech miner NWR may close Paskov mine as sale is unlikely

By bne IntelliNews July 15, 2013

Czech coal miner New World Resources (NWR) said it may close its Paskov hard coal mine as its intended sale is unlikely for the time being.

NWR, which has been hurt by the falling commodity prices and the drop in demand from steelmakers, has initiated a business portfolio optimisation programme, trying to find some EUR 100mn in savings by cutting costs, investment and jobs.

The company has also announced plans to sell some of its assets after two straight quarters of record losses. NWR said that it is now evaluating scenarios including a potential temporary or permanent shutdown of the Paskov mine, which has 9.2 million metric tonnes of proven reserves. A final decision is expected in the coming weeks.

The announcement sent NWR shares down 12% in morning trade on the Prague Stock Exchange.

It was reported last week that NWR had started talks with interested parties to sell its coke producing subsidiary OKK Koksovny, which has a staff of 732 and a capacity of approximately 800,000 tonnes of wet-quenched coke per year.

NWR produces coking and thermal coal for the steel and energy sectors in Central Europe through its subsidiary OKD, the largest hard coal mining company in the Czech Republic. The company has declared ambitions to become Europe's leading miner and marketer of coking coal by 2017. It is listed in London, Prague and Warsaw.

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