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The co-operation framework deal will give OKD and the Czech state until March 31 to reach a mutually beneficial solution, London-, Prague- and Warsaw-listed NWR said in filing on Monday January 6.
“In this context, the parties will explore the option of OKD extending the operation of the mine until 31 December 2016 for its own risk and account, after which ownership of the mine will be transferred to the Czech state for a symbolic CZK1 [$0.05] for closure,” the company added.
The option would require approval from the European Commission and support from the mine's key stakeholders.
Financially-strained NWR announced its plan to close the Paskov high-quality hard coking coal mine in September 2013, deeming it uncompetitive in the medium term.
The central European miner completed the sale of its coke subsidiary OKK to Metalimex in early December, amid wider cost cutting plans to limit losses seen in the first nine months of 2013.
NWR has four coking coal mines in the Czech Republic, including Paskov, as well as development projects in Poland. It aims to become Europe’s main coking coal producer and marketer by 2017.
OKD, a subsidiary of coal producer New World Resources (NWR), has signed a memorandum of understanding (MoU) with the Czech government regarding the closure of the Paskov coking coal mine.