NWR, Czech state sign MoU on Paskov coking coal mine closure

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.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

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.

What to read next
Market participants are cautiously optimistic about a rebound in iron ore concentrate premiums, with steelmakers around the world set to ramp-up production in line with an anticipated increase in demand for steel products, Fastmarkets understands
General Motors (GM) is investing $650 million to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the US and the third largest in the world
Electrolysis processes developed by Boston Metal and Electra that eliminate the need for coal in steel production could be key to a net-zero emissions future for the metallics industry, attendees learned at Fastmarkets’ conference on January 17-19 in Dallas
Low supply, strong demand to spur scrap prices higher in Feb, market says
US deep-sea ferrous export prices from the East Coast to Turkey have plateaued, with a Turkish mill purchasing a cargo at prices stable from the last-reported sale
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.