NWR Sustainability Report 2011

Sustainability Report 2011 New World Resources Plc Overview Our approach Our people Environment Community Supply chain Additional information ≥ GRI 2.1 ≥ GRI 2.2 ≥ GRI 2.3 1 ≥ GRI 2.4 ≥ GRI 2.5 Contents NWR at a glance ≥ GRI 2.6 ≥ GRI 2.7 ≥ GRI 2.9 ≥ GRI DMA EC Market presence 001 Overview Signposting We have three principal subsidiaries which make About us 001 NWR at a glance up our operations: We use the following symbols to point 002 Highlights 2011 NWR is one of the leading producers of hard coal and coke in Central Europe. 004 to sources of further information. Our operations The Company has three key subsidiaries: OKD, a.s. (Czech Republic), OKK 006 Chairman’s statement Koksovny, a.s. (Czech Republic) and NWR KARBONIA S.A. (Poland). 010 Sustainability executives Q&A Related sections within this OKD, a.s. (‘OKD’) 014 Scorecard Sustainability Report 2011 Extracts coking and thermal coal in four active As of 1 January 2012 NWR had 385 million tonnes of coal reserves using 016 About this Report Related information online at mines in the Upper Silesian Coal Basin. OKD is the JORC classification methodology2. The Group has a strategic position 018 Our approach www.newworldresources.eu the only hard coal mining company in the Czech in Central Europe and delivers its output to a number of blue-chip 020 Sustainability strategy Republic. customers in the region, including ArcelorMittal, ČEZ, Dalkia, Moravia Steel, 022 Sustainable development governance ThyssenKrupp, U.S. Steel, Verbund and voestalpine. 025 Materiality 026 Ethics and society In 2005 the limited liability company New World Resources B.V. was 030 Relations and communication with stakeholders established as a holding company for mining operations, coking plants and 034 Sustainable risk assessment OKK Koksovny, a.s. (‘OKK’) certain other activities of the current NWR Group. New World Resources N.V. 036 Responsible mining practices throughout the life cycle OKK, the coking subsidiary of NWR, is Europe’s (‘NWR NV’) is a company founded in the Netherlands in 2008. It was listed 038 Our people largest producer of foundry coke. on the London, Prague and Warsaw stock exchanges in May 2008. The NWR 040 Human resources strategy and employee care flotation was the biggest initial public offering (IPO) on the London Stock 042 Employment Exchange in 20083. In 2011 the Company was reincorporated in the United 043 Structure of the NWR Group workforce Kingdom as New World Resources Plc, and was included in the FTSE 250 UK 044 Employee remuneration PLC index. NWR is also part of the FTSE 350 Mining Index and remains listed 045 Trade Unions NWR KARBONIA S.A. (‘NWR KARBONIA’) on the London, Prague and Warsaw stock exchanges. The Company’s head 046 Safety Polish development projects are managed by the office is in the Netherlands. 049 HBZS – the mining rescue service subsidiary NWR KARBONIA. The biggest of these 052 Continuous Improvement Programme projects is the construction the Dębieńsko mine NWR is one of the largest European industrial groups (in terms of assets and 053 Employee training and education in southern Poland. revenues) and one of the biggest private employers in the Czech Republic. 054 Environment 056 Strategy 057 Reclamation and biodiversity conservation 066 Emissions 070 Energy 074 Water 078 Waste 080 Materials 081 Health and safety impacts of our products NWR Group structure 082 Community New World Resources Plc 084 Community cooperation strategy 086 NWR Group’s community involvement 094 Mining activity and the community New World Resources N.V. 098 Supply chain 100 Strategy 102 Additional information OKD, a.s. OKK Koksovny, a.s. NWR KARBONIA S.A. NWR Communications, s.r.o. 102 GRI application level check statement 103 Key sustainability data summary 106 Subsidiaries’ organisational structures OKD HBZS, a.s. 108 GRI content index 118 Glossary 1 New World Resources Plc is referred to in the Report as ‘NWR’ or ‘the Company’. NWR together with its subsidiaries are jointly referred to as ‘the Group’ or ‘NWR Group’. 2 Full name: Joint Ore Reserves Committee (www.jorc.org). The Company employs a certified geologist who draws up assessments of the size of reserves Exchange rates used throughout this report are 24.590 CZK/EUR and 4.121 PLN/EUR. in cooperation with a JORC certified specialist. The Sustainability Report 2011 is referred to as the ‘Report’. 3 Source: Dealogic (www.dealogic.com). New World Resources Sustainability Report 2011 ‘Sustainable development is an integral part of ‘This Sustainability Report brings an objective look at the non-financial Overview NWR’s business strategy. The attention NWR pays impacts of NWR Group’s activities, backed up by objective qualitative to this area enables us to maintain social consent and quantitative indicators. Its focus is proof that NWR communicates to extraction and develop our extraction and with its main stakeholders and tries to adapt its present and future Year-on-year increase in CSI1 production activities.’ activities to their opinions.’ Paul Everard, Chairman of the Safety, Health and Sustainability Committee Highlights NWR Group started non-financial reporting of the impacts of its business using the Global Reporting Initiative (GRI) methodology At EUR 7.88 million, the amount NWR Group spent on corporate social investment1 was the highest since 2008 The total area of reclamation projects completed since 1993 reached 1,678 ha NWR operations LTIFR2 has fallen by 37 per cent over the past 4 years; NWR Group pledged to reduce the rate to 5 in 2015 The average training time per employee has increased by 376 per cent since 2008 to 21.8 hours in 2011 1 NWR’s CSI comprises finances provided for projects in the following areas: community development (OKD Foundation); support for enterprise and job creation, health (OKD Foundation projects); culture (OKD Foundation projects); education (donations to schools, scholarships), environment (finances provided over and above the legal requirement); sport (sponsorship). 2 Lost Time Injury Frequency Rate represents the number of reportable injuries causing at least three days of absence per million hours worked including contractors. Photo: The winding tower at the Dębieńsko mine. 04 05 New World Resources New World Resources Sustainability Report Sustainability Report 2011 2011 Overview Our approach Our people Environment Community Supply chain Additional information Overview Our approach Our people Environment Community Supply chain Additional information ≥ GRI 2.3 ≥ GRI 2.3 ≥ GRI 2.5 ≥ GRI 2.5 Our operations ≥ GRI 2.6 Map of our operations and development projects Zawiercie Coal reserves1, 2 Mt Coal production (2011) Mt Share of sales (2011)3 per cent Average monthly number of employees4 Hard coal Kędzierzyn-Koźle Zabrze Coke Gliwice Development project Katowice Jaworzno Tychy Racibórz Rybnik 6 Kraków Opava Zábřeh 5 Karviná Poland Bielsko-Biała Karviná Mine 89 Mt Karviná Mine 4.1 Mt Karviná Mine 24% Karviná Mine 5,069 Ostrava 1 ČSM Mine 45 Mt ČSM Mine 2.9 Mt ČSM Mine 28% ČSM Mine 4,011 Havířov 3 7 Darkov Mine 37 Mt Darkov Mine 3.2 Mt Darkov Mine 24% Darkov Mine 3,879 Frýdek-Místek 2 Paskov Mine 24 Mt Paskov Mine 1.0 Mt Paskov Mine 10% Paskov Mine 3,267 4 Dębieńsko 190 Mt Dębieńsko 14 Olomouc Frenštát pod Radhoštěm Czech Republic Čadca Vyškov Žilina Dolný Kubín Zlín Povážská Bystrica Slovakia 1 Karviná Mine 2 ČSM Mine 3 Darkov Mine 4 Paskov Mine 5 OKK Koksovny, a.s. 6 Dębieńsko 7 Morcinek Karviná Mine is the biggest ČSM Mine is divided into Darkov Mine is divided into Paskov Mine consists of OKK Koksovny, a.s., has one The chambers’ capacity is Under the Dębieńsko Morcinek is currently hard coal deep-mining two mining sites – mining mining sites – mining site 2 the mining site Staříč, operation: Svoboda Coking approximately 16 tonnes of development project undergoing geological surveys. complex in the Czech site ČSM Sever and mining and mining site 9. květen. The which produces coking coal. Plant. Svoboda Coking Plant coke; the coking cycle takes construction of a new mine The Morcinek development Republic. Both coking and site ČSM Jih. The two extracted raw materials are Also the mothballed Frenštát has four coke-oven batteries approximately 32 to 34 hours. in Czerwionka-Leszczyny project comprises thermal coal are mined at mining sites are connected processed in the mining site mine is a part of the Paskov (nos. 7, 8, 9 and 10) – the total The coking plant’s (former mine) was two sites Morcinek 1 two mining sites – mining underground. All the 2 washing plant. Coking coal Mine. number of chambers is 210 stamp-charged batteries commenced in 2011. and Zebrzydowice 1. site ČSA and mining site extracted raw materials are and thermal coal is mined at (50 + 54 + 50 + 56). mainly produce foundry coke. Extraction is scheduled The only ongoing operation Lazy. processed in the mining site Darkov Mine. to start in 2017. is the extraction of methane ČSM Sever preparation plant. in plant Kaczyce 1 since 3 ČSM Mine produces coking September 2004, which is and thermal coal. owned by NWR KARBONIA. Coal reserves1 89 Mt Coal reserves1 45 Mt Coal reserves1 37 Mt Coal reserves1 24 Mt Production (2011) 0.8 Mt Coal reserves1, 2 190 Mt Coal reserves1 – Average monthly number Average monthly number Average monthly number Average monthly number Average monthly number Average monthly number Average monthly number of employees (2011) 5,069 of employees (2011) 4,011 of employees (2011) 3,879 of employees (2011) 3,267 of employees (2011) 739 of employees (2011) 14 of employees (2011) – Hard coal production 2011 4.1 Mt 2.9 Mt 3.2 Mt 1.0 Mt 1 Full name: Joint Ore Reserves Committee.

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