2008 Minerals Yearbook CZech Republic

U.S. Department of the Interior December 2010 U.S. Geological Survey Th e Mi n e r a l In d u s t r y o f t h e Cz e c h Re p u b l i c By Mark Brininstool

The Czech Republic was an important Central European amended, establishes the rules for prospecting and exploration producer of heavy industrial goods manufactured by the of most mineral deposits. Act No. 61/1988 on Mining country’s chemical, machine building, and toolmaking Operations, Explosives and on the State Mining Administration, industries. The production of construction materials, the mining as amended, defines appropriate mining methods. The Ministry and processing of industrial minerals, and steelmaking were of the Environment enforces environmental laws in the mining of domestic and regional importance. The production of coal sector and has the authority to revoke exploration and mining for thermal powerplants and the use of nuclear power were leases if environmental laws are violated (Czech Geological important sources of electricity and helped the country maintain Survey, 2008, p. 25-26). a lower level of dependence on imported natural gas than many other Central European countries. Production

Minerals in the National Economy For metals, crude steel and pig iron production each decreased by about 10% compared with production in 2007. Production of The Czech Republic’s gross domestic product (GDP) grew by industrial minerals increased significantly compared with that 2.5% in 2008, which was a significant decrease when compared of 2007 for diatomite (63%), glass sand (22%), and dolomite with the 6.1% growth recorded in 2007. Mining and quarrying (17%). Production decreased for bentonite (48%), gypsum and made up 1.5% of the total gross value added and about 1.4% of anhydrite (47%), sulfuric acid (22%), and foundry sand (17%). the total GDP (Czech Statistical Office, 2009a, b). For mineral fuels, natural gas production increased by 13% and In terms of trade, imports of crude petroleum and natural uranium mine output and concentrate production each decreased gas were the two mineral commodities that most affected the by about 10% (table 1). country’s overall trade balance, but the Czech Republic was less import dependent on these commodities than most other Structure of the Mineral Industry Central and Eastern European nations. In 2007 (the latest year for which data were available), the Czech Republic imported Table 2 is a list of major mineral industry facilities. about 7.1 million metric tons (Mt) (51.6 million barrels) of crude petroleum worth $4,227 million1 (CZK72,031 million), Commodity Review which was about 3% of the total value of imports. In the same year, the country imported an estimated 8.4 billion cubic meters Metals of natural gas worth $2,923 million (CZK49,804 million), which was about 2% of the total value of imports. About 65% Iron and Steel.—The Czech Republic had no economically of crude petroleum was imported from Russia and about 27% exploitable iron ore deposits and imported all iron ore used in was imported from Azerbaijan. Import data on natural gas primary steel production. In 2007 (the latest year for which trade supplies from specific countries were classified, but the Czech data were available), about 5.3 Mt of iron ore and concentrate Geological Survey estimated that about 75% of natural gas came was imported by the Czech Republic; about 56% of these from Russia in 2007. Exports of mineral commodities did not imports came from Ukraine and about 35% came from Russia. play a significant role in the trade balance in 2007. Coal was ArcelorMittal Ostrava a.s. and Trinecke Zelezarny a.s. were the leading export commodity in terms of value, but made up the only producers of pig iron and the leading producers of only about 0.7% of the total value of exports (Czech Geological crude steel. In 2007, these two companies combined accounted Survey, 2008, p. 196-197; Czech Statistical Office, 2009c, d, e). for about 80% of the total crude steel production in the Czech Republic (Czech Geological Survey, 2008, p. 353-357). Government Policies and Programs Reduced production of crude steel and pig iron was caused mainly by a drop in demand for steel in the fourth quarter of Three main laws are applicable to the mineral industry in the 2008 as a result of the worldwide economic crisis. World Steel Czech Republic. Act No. 44/1988 on the Protection and Use Association data show that from January through September, of Mineral Resources (the Mining Act), as amended, defines the Czech Republic averaged about 584,000 metric tons (t) of minerals that are owned by the Government, establishes the crude steel production per month, but from October through authority of certain Government agencies with respect to mining December, the average monthly production dropped to about activity, and sets out other rules on the management of mineral 377,000 t. Production was also affected by maintenance work at resources in the Czech Republic. The Czech National Council the ArcelorMittal Ostrava plant. In January 2008, ArcelorMittal Act No. 62/1988, on Geological Work (the Geological Act), as Ostrava began an overhaul of blast furnace No. 2 and completed the overhaul in early August; it then began an overhaul of blast furnace No. 3. The overhaul of blast furnace No. 3 was expected 1Where necessary, values have been converted from Czech korunas (CZK) to U.S. dollars (US$) at the rate of CZK17.04=US$1.00.

Czech Republic—2008 10.1 to take 6 months (ArcelorMittal Ostrava a.s., 2008a; World Steel Dulni pruzkum a bezpecnost a.s. was renamed Green Gas DPB, Association, 2009). a.s. following its 2007 merger with Green Gas International In November 2008, at its rolling mill at Frydek-Mistek, BV (Czech Geological Survey, 2008, p. 196; Green Gas ArcelorMittal opened a new production line for transformer International BV, 2009; Severoceske doly a.s., 2009, p. 56). plates. The company expected the new production line to Uranium.—DIAMO s.p. remained the only domestic increase the mill’s transformer plate capacity to 46,600 metric producer of uranium, and it supplied the owner of the Czech tons per year (t/yr) in 2009 and to 75,000 t/yr in 2010 from Republic’s two nuclear powerplants, CEZ a.s., with about 22,000 t/yr in 2008 (ArcelorMittal Ostrava a.s., 2008b). one-third of all the uranium it required. All domestically produced uranium was sent abroad for processing into fuel. Mineral Fuels and Related Materials All nuclear fuel for the Dukovany Nuclear Power Station was purchased from the Russian firm OAO TVEL, whereas Coal.—The Czech Republic was self sufficient in coal the Temelin Nuclear Power Station obtained its fuel from production and, in 2008, coal-fueled powerplants accounted for Westinghouse Electric Company LLC of the United States. The about 61% of all electricity generated in the Czech Republic. supplies of fuel from Westinghouse were scheduled to end in About 6.7 Mt of bituminous coal and 1.2 Mt of brown coal were 2010, after which time fuel for Temelin would be supplied by exported in 2007 (the latest year for which data were available) OAO TVEL. CEZ’s nuclear powerplants produced about 32% (Czech Geological Survey, 2008, p. 165, 175; Severoceske doly of all electricity in the Czech Republic in 2008 (CEZ Group, a.s., 2009, p. 56). 2009, p. 75; Severoceske doly a.s., 2009, p. 56). In 2008, bituminous coal miner OKD a.s. merged its CSA In January, Australian company Uran Ltd. submitted and Lazy Mines into one mine known as Karvina. The company applications for three exploration licenses in the Brzkov region planned to produce about 12.5 million metric tons per year and two exploration licenses in the Liberec region. Uran’s (Mt/yr). The Czech Coal Group reorganized its subsidiary previous applications for exploration licenses in the Brzkov Mostecka uhelna a.s., which operated the Czech Coal Group’s region had been rejected by the Ministry of the Environment. As brown coal mines in the Czech Republic. The reorganization of the end of 2008, no decision had been made about the new divided Mostecka uhelna’s mining operations between the applications by the Czech Government (Uran Ltd., 2009). newly formed companies Litvinovska uhelna a.s., which would operate the CSA Mine, and Vrsanska uhelna a.s., which would Outlook operate the Sverma and the Vrsany Mines (Czech Coal Group, 2008; OKD a.s., 2008, p. 5; 2009, p. 18). The effect of the international financial crisis, which affected According to the Czech Coal Group, production at the CSA the mineral production industry in the fourth quarter of 2008, Mine would decrease to 2.5 Mt from its current production will likely continue to reduce demand for Czech mineral level of about 5.2 Mt after 2012 if legal geographic limits to the products and cause a corresponding decrease in production mining of brown coal and lignite that had been in place since of minerals and manufactured goods. Dependence on imports 1991 were not altered. Under the current mining limitations, of natural gas and petroleum are likely to continue to affect the mine was scheduled to end production in about 2020, but the trade balance negatively but production of coal will likely the Czech Coal Group claimed that if restrictions are lifted, remain stable and provide a significant portion of fuel for the mine could operate until at least 2061. The expansion electricity generation. of the mine would require the relocation of the residents of Cernice and Horni Jirentin. At current production rates of about References Cited 7.9 Mt/yr, the Vrsany Mine was expected to be able to continue operations until 2052 (Czech Coal Group, 2008; 2009a; 2009b, ArcelorMittal Ostrava a.s., 2008a, Blast furnace no. 3 is in for a complete p. 32, 38, 168). overhaul: ArcelorMittal Ostrava a.s. press release, August 1. (Accessed October 26, 2009, at http://www.mittalsteelostrava.com/AM_tz_17_s1_en.html.) Severoceske doly a.s.’s Nastup Tusimice Mine produced ArcelorMittal Ostrava a.s., 2008b, Rollermen of Frydek-Mistek invest and about 12.8 Mt of coal and its Bilina Mine produced about increase production: ArcelorMittal Ostrava a.s. press release, November 25. 9.7 Mt in 2008. Severoceske doly expected the Nastup Tusimice (Accessed October 26, 2009, at http://www.mittalsteelostrava.com/ Mine to continue operations until 2035, and based on changes AM_tz_40_s1_en.html.) CEZ Group, 2009, Annual report 2008: CEZ Group, 236 p. (Accessed to mining limits enacted in 2008, the Bilina Mine would not October 29, 2009, at http://www.cez.cz/edee/content/file/investors/ end operations until between 2035 and 2037, although the mine inside-information/2009-04/cez-039-2009_en.pdf.) life could be extended if mining restrictions are altered further. Czech Coal Group, 2008, Restructuring of the Czech Coal Group completed, Sokolovska uhelna a.s. expected extraction at its Jiri and Druzba Czech Coal Services replaces the MUS brand: Czech Coal Group, December 15. (Accessed October 29, 2009, at http://www.czechcoal.cz/en/ Mines to end in about 2027 and 2030, respectively, when, at novinky/tz/2008/20081215.html.) current rates of extraction of about 9.7 Mt/yr combined, the Czech Coal Group, 2009a, Brown coal: Czech Coal Group. (Accessed mines would be exhausted (Severoceske doly a.s., 2009, p. 37, October 29, 2009, at http://www.czechcoal.cz/en/produkty/uhli/index.html.) 55; Sokolovska uhelna a.s., 2009, p. 14-15). Czech Coal Group, 2009b, Yearly report of the Czech Coal Group—Business activities and sustainable development in 2008: Czech Coal Group, October, Natural Gas.—The Czech Republic was almost entirely 207 p. (Accessed October 29, 2009, at http://www.czechcoal.cz/en/ur/zprava/ dependent on imports to supply its demand for natural gas, ur2008en.pdf.) although in 2008, only about 4% of electricity in the Czech Czech Geological Survey, 2008, Mineral commodity summaries of the Czech Republic was produced from gas. In 2008, the company OKD, Republic: Prague, Czech Republic, Ministry of the Environment of the Czech Republic, 422 p.

10.2 u.s. geologicAl survey minerals yearbook—2008 Czech Statistical Office, 2009a, Gross value added by industry (current prices): OKD a.s., 2008, Annual report 2007: OKD a.s., June, 151 p. (Accessed Czech Statistical Office. (Accessed October 30, 2009, at http://apl.czso.cz/pll/ February 9, 2009, at http://www.okd.cz/dokums_presskit/okd_vz_2007_ rocenka/rocenkavyber.makroek_prod_en.) en_1968.pdf.) Czech Statistical Office, 2009b, Key macroeconomic indicators: Czech Statistical OKD a.s., 2009, Annual report 2008: OKD a.s., June, 211 p. (Accessed Office, October. (Accessed October 30, 2009, at http://www.czso.cz/eng/ October 27, 2009, at http://www.okd.cz/dokums_presskit/okd_annual_ redakce.nsf/i/macroeconomic_indicators/$File/AHLMAKRO.xls.) report_2008_2859.pdf.) Czech Statistical Office, 2009c, Statistical yearbook of the Czech Republic Severoceske doly a.s., 2009, Annual report 2008: Severoceske doly a.s., 2008—Exports of selected commodities: Czech Statistical Office, March 3. June, 136 p. (Accessed October 27, 2009, at http://www.sdas.cz/files/sdas/ (Accessed October 28, 2009, at http://www.czso.cz/csu/2008edicniplan.nsf/ vyrocni_zpravy/2008/SD_2008_EN.pdf.) engt/6E0049919E/$File/0001081104.xls.) Sokolovska uhelna a.s., 2009, Performance report 2008: Sokolovska uhelna Czech Statistical Office, 2009d, Statistical yearbook of the Czech Republic a.s., May, 52 p. (Accessed October 27, 2009, at http://www.suas.cz/ 2008—External trade by SITC Rev. 4 commodity section: Czech Statistical uploads/14592797734a3127e6c9304_SU_Performance_Report_2008.pdf.) Office, March 3. (Accessed October 28, 2009, at http://www.czso.cz/ Uran Ltd., 2009, Quarterly report for the period ending 31 December 2008: csu/2008edicniplan.nsf/engt/6E004991A2/$File/0001081106.xls.) Uran Ltd., January 31, 9 p. (Accessed November 3, 2009, at Czech Statistical Office, 2009e, Statistical yearbook of the Czech Republic http://www.uranlimited.com.au/images/stories/announcements/09 01 decqtr.pdf.) 2008—Imports of selected commodities: Czech Statistical Office, March 3. World Steel Association, 2009, Steel statistics—Total 2008: World Steel (Accessed October 28, 2009, at http://www.czso.cz/csu/2008edicniplan.nsf/ Association. (Accessed May 20, 2009, at http://www.worldsteel.org/ engt/6E004991A0/$File/0001081105.xls.) ?action=stats&type=steel&period=latest&month=13&year=2008.) Green Gas International BV, 2009, Company profile: Green Gas International BV. (Accessed October 30, 2009, at http://www.greengas.net/output/ page11.asp.)

Czech Republic—2008 10.3 TABLE 1 CZECH REPUBLIC: PRODUCTION OF MINERAL COMMODITIES1

(Metric tons unless otherwise specified)

Commodity2 2004 2005 2006 2007 2008 METALS Aluminum, metal, secondarye 25,000 r 30,000 r 40,000 r 46,000 r 45,000 Iron and steel, metal: Pig iron thousand metric tons 5,385 4,627 5,192 5,287 4,737 Steel, crude do. 7,033 6,189 6,862 7,059 6,387 Semimanufactures, hot rolled do. 6,395 r 5,782 r 6,273 r 6,123 r 6,150 e Lead, metal, secondary 25,000 26,000 29,000 r 34,000 r 34,000 INDUSTRIAL MINERALS Cement, hydraulic thousand metric tons 3,828 3,978 4,239 4,899 4,805 Clays: Bentonite do. 224 216 267 335 174 Kaolin do. 3,862 3,882 3,768 3,604 3,833 Other do. 649 661 561 679 574 Diatomite 33,000 38,000 53,000 19,000 31,000 Dolomite 345,000 419,000 409,000 385,000 449,000 Feldspar 488,000 472,000 487,000 514,000 488,000 Gemstones, crude, pyrope-bearing rock 42,000 43,000 39,000 34,000 r 34,000 e Graphite 5,000 3,000 5,000 3,000 3,000 Gypsum and anhydrite, crude 71,000 25,000 16,000 66,000 35,000 Lime, hydrated and quicklime thousand metric tons 1,264 1,211 1,186 r 1,277 r 1,300 e Nitrogen, N content of ammoniae 240,000 250,000 250,000 225,000 200,000 Sand and gravel: Common sand and gravel thousand metric tons 24,586 r 25,335 r 27,198 r 28,233 r 27,306 Foundry sand do. 831 807 773 850 702 Glass sand do. 829 920 963 942 1,151 Stone: Dimension stone do. 913 r 927 r 802 r 788 r 723 Limestone and other calcareous stones do. 10,568 9,912 10,193 11,279 r 11,465 Crushed stone do. 34,900 38,048 41,561 43,214 44,277 Sulfur, byproduct, all sourcese 45,000 45,000 45,000 45,000 45,000 Sulfuric acid 234,000 230,000 e 263,000 e 275,900 215,000 MINERAL FUELS AND RELATED MATERIALS Coal: Bituminous thousand metric tons 14,648 12,778 13,017 12,462 12,197 Brown and lignite do. 48,290 49,125 49,374 49,571 47,872 Coke do. 3,538 3,412 3,428 3,258 r 3,200 e Fuel briquets from brown coal do. 300 300 345 247 r 240 e Gas: Manufactured, all typese million cubic meters 1,400 r 1,400 r 1,400 r 1,411 r, 3 1,442 3 Natural, marketed4 do. 175 356 148 148 167 Petroleum: Crude: As reported thousand metric tons 299 306 259 240 236 Convertede, 5 thousand 42-gallon barrels 2,000 2,100 1,800 1,600 1,600 Refinery productse do. 35,000 35,000 35,000 35,000 35,000 Uranium: Mine output, U content 435 420 383 322 290

U3O8 content 513 495 452 380 342 Concentrate production, U content 412 409 358 291 261 eEstimated; estimated data are rounded to no more than three significant digits. rRevised. do. Ditto. -- Zero. 1Table includes data available through November 17, 2009. 2In addition to the commodities listed, it is estimated that arsenic, basalt, ferrovanadium, illite, secondary copper and zinc metal, sodium compounds, talc, and zeolite are produced, but available information is inadequate to make reliable estimates of output. 3Reported figure. 4Includes gas produced from coal mines. Gross output of natural gas is not reported but is believed to exceed reported marketed output by an inconsequential amount. 5Rounded to no more than two significant digits.

10.4 u.s. geologicAl survey minerals yearbook—2008 TABLE 2 CZECH REPUBLIC: STRUCTURE OF THE MINERAL INDUSTRY IN 2008

(Thousand metric tons unless otherwise specified)

Major operating companies and Annual Commodity major equity owners Location of main facilities capacity Aluminum, secondary Alcan Decin Extrusions s.r.o. Decin, northern Bohemia 40 do. Kovohute Holdings DT- Mnisek Division Mnisek pod Brdy 70 (majority owned by Demonta Trade SE) Bentonite Keramost a.s. Most NA do. LITH s.r.o. Male Chvojno NA Cement Ceskomoravsky Cement a.s. (Heidelberg Mokra 1,400 Cement AG, 100%) Do. do. Radotin 750 Do. Lafarge Cement a.s. Cizkovicka 1,200 Do. Holcim (Cesko) a.s. Prachovice 1,400 Do. Cement Hranice a.s. (Dyckerhoff, 98%) Hranice 1,100 Do. Cemos Ostrava a.s. (Cement Hranice, 95%) Ostrava 400 Clay Ceske Lupkove Zavody a.s. Nove Straseci (refractory clay) NA Do. Chlumcanske Keranicke Zavody a.s. Chlumcany (kaolin) NA Do. Kaolin Hlubany a.s. (WBB Minerals, 94%) Podborany NA Coal: Bituminous OKD a.s. (New World Resources N.V.) 4 mines near Ostrava and Kravina in 15,000 eastern Czech Republic Brown Severoceske doly a.s. (CEZ Group) Nastup Tusimice Mine southwest of 23,000 Chomutov and Bilina Mine in Bilina Do. Litvinovska uhelna a.s. (Czech Coal Group) CSA Mine near Most 5,500 Do. Vrsanska uhelna a.s. (Czech Coal Group) Vrsany and Sverma Mines near Most 10,000 Do. Dul Kohinoor a.s. (Czech Coal Group) Centrum Mine in Marianske Radcice 300 Do. Sokolovska uhelna a.s. Jiri and Druzba Mines at Sokolov 10,500 Lignite Lignit Hodonin s.r.o. Hodonin, south Moravia 500 Coke ArcelorMittal Ostrava a.s. Ostrava 1,500 Do. OKD, OKK a.s. (New World Resources N.V.) Jan Sverma and Svoboda coking plants 1,300 near Ostrava Do. Trinecke Zelezarny a.s. (Moravia Steel a.s., 69%) Trinec 700 Ferrovanadium Nikom a.s. (Evraz Vitkovice Steel a.s.) Vitkovice-Ostrava NA Gold, metal, secondary Kovohute Pribram Nastupickna a.s. Pribram NA Graphite Grafitove doly Stare Mesto s.r.o. Stare Mesto 10 Lead, metal, secondary, refined Kovohute Pribram Nastupickna a.s. Pribram 30 Natural gas million cubic meters Gasfield operators in Brno and Ostrava regions, Eastern/southeastern Czech Republic, of 500 1 including: which: Ceska Naftarska Spol s.r.o. Hodonin Moravske Naftove doly a.s. do. Green Gas DPB a.s. Paskov UNIGEO a.s. Ostrava-Hrabova Petroleum: Crude thousand 42-gallon Oilfield operators around Hodonin, including: Of which: 2,100 1 barrels Moravske Naftove doly a.s. Hodonin Ceska Naftarska Spol s.r.o. do. UNIGEO a.s. Ostrava-Hrabova Refinery do. Paramo a.s. (Unipetrol a.s.) Refineries at Kolin and Pardubice 10 Do. do. Ceska Rafinerska (Unipetrol a.s., 51.2%, Eni Refineries at Litvinov and Kralupy 30 International B.V., 32.5%, Shell Overseas nad Vltavou Investments B.V., 16.3%) Pig iron Trinecke Zelezarny a.s. (Moravia Steel a.s., 69%) Trinec 2,200 Do. ArcelorMittal Ostrava a.s. Kunice-Ostrava 3,100 Steel, crude do. do. 3,800 Do. Trinecke Zelezarny a.s. (Moravia Steel a.s., 69%) Trinec 3,000 Do. Evraz Vitkovice Steel a.s. (Vitkovicke zelezarny) Vitkovice-Ostrava 950 Do. Poldi Hutte s.r.o. (Scholz Edelstahl A.G.) Kladno 1,700 Do. Zelezarny Hradek a.s. (Z-Group Steel Holding) Hradek NA See footnotes at end of table

Czech Republic—2008 10.5 TABLE 2—Continued CZECH REPUBLIC: STRUCTURE OF THE MINERAL INDUSTRY IN 2008

(Thousand metric tons unless otherwise specified)

Major operating companies and Annual Commodity major equity owners Location of main facilities capacity Steel, crude—Continued Do. Zelezarny Veseli, a.s. (Z-Group Steel Holding) Veseli nad Moravou NA Do. Zelezarny Chomutov s.p. (Z-Group Steel Holding) Chomutov NA Do. Vitkovice Heavy Machinery a.s. Vitkovice-Ostrava NA Do. ZDB Group a.s. Bohumin 40 Uranium, U content metric tons DIAMO s.p. Rozna I Mine at Dolni Rozinka 500 Do., do. Ditto. NA Not available. 1Annual capacity listed is total for all deposits, mines, or companies that produce the commodity.

10.6 u.s. geologicAl survey minerals yearbook—2008