New World Resources Magazine

New World Resources magazine

No. 4 2012

interview 6–9 Gareth Penny: Keeping with Carbon

technology 14 –17 Logistics system deployed at OKD undergoes dynamic transformation

responsibility 20 –21 People key to NWR’s sustainable development Editorial

Dear Readers,

The OKD Foundation will celebrate its ﬁfth birthday at the beginning of 2013. Just like a child that reaches this age, our Foundation is clearly growing up, with projects that are increasingly sophisticated. And if we were describing a child, we’d say that he or she is becoming smarter and cleverer!

This year saw the creation of new grant-giving programmes. They are more targeted than in previous years and their focus has had a demonstrably positive impact on the quality of life for those to whom our support is directed. The Living Housing Estates initiative has had an excellent start, improving the lives of people living on several housing estates throughout the Czech Republic thanks to a grant from the Foundation and the efforts of local residents. The project’s success was acknowledged when it won the Company and City category of the TOP Responsible Company 2012 Awards. What’s more, the campaign that marked the project launch also won an award, with its success coming in the social, environmental and cultural marketing category of the prestigious Efﬁe Awards, which recognise effective advertising.

Non-proﬁt organisations in which Group employees actively participate can take advantage of our new “Srdcovka” [Cockles of the Heart] programme. The programme enables the best non-proﬁt organisations to further develop and offer attractive activities for which they would otherwise lack the required funding.

We are good at rewarding those whose projects, often conducted with OKD Foundation support, bring beneﬁts, joy and a better life to those around them. I am therefore grateful that at the end of November we had the opportunity to express our admiration and respect for these people and organisations at the fourth annual OKD Foundation Awards. They fully deserved their recognition. I am strongly convinced that they will persevere in their efforts to beneﬁt others.

When OKD established its foundation, it pledged to commit 1% of its gross profit every year to the OKD Foundation, in good times and bad times alike. This commitment, amounting so far to CZK 240 million, has helped the OKD Foundation to support more than 1,400 projects organised by non-profit organisations and municipalities. In the process, the Foundation has become an institution that is well respected within the non-profit sector of the Czech Republic. Everyone who has contributed through the foundation deserves a big thank you. And all contributors can be certain that the people who need help appreciate their support and our efforts many times over.

The combination of all those efforts helped us to take second place in the TOP Responsible Corporation 2012 competition organised by Byznys pro společnost [Business for Society]. We see this recognition as placing an obligation on us to pursue excellence in our future work, and as conﬁrmation that we are on the right path, striving for a responsible approach to business as an integral part of our corporate strategy.

Petra Mašínová, NWR Head of Corporate Communications and Sustainability

Editor-in-Chief: Tomáš Píša | Editor: Marek Síbrt | Cooperation: Roman Grametbauer Production and distribution: BISON & ROSE Design and typeset: BISON & ROSE Registration: MK ČR E 18829 Submission deadline: 22. 11. 2012 With a QR code reader All rights reserved. The reproduction and use of all images contained within on your mobile phone, this publication without the written approval of NWR is forbidden. The logos you do not have to retype of companies, products and services introduced in this publication are a web address. Just scan the business trademarks of the respective ﬁrms. Questions, remarks and article the code on the left into ideas can be sent to: [email protected]. An electronic version of the magazine your phone. including active links is accessible on the Company website. 6–9 Gareth Penny has kept with carbon throughout his professional career

10 –11 14 –17 Industry drives Efﬁcient the Central logistics European in a mine economies are a must

18 –19 22 –23 The sleeping The OKD giant of Foundation coking coal is brightening grey housing estates

Content

4–5 economy 18–19 economy NWR’s 2012 nine month results Mongolia: the sleeping giant 6–9 interview of coking coal supply Gareth Penny: Keeping with carbon 20–21 responsibility 10–11 economy People are key to sustainable Industry is the driving force behind development at NWR Central European economies 22 responsibility 12–13 technology No one is obliged to be a good OKD is an important customer neighbour of Caterpillar 14–17 technology 23 responsibility Logistics system deployed at OKD Housing estates come alive undergoes dynamic transformation thanks to OKD Foundation economy interview technology

NWR’s 2012 nine month results

In November NWR announced its results for the ﬁrst nine months of 2012. Trading conditions continued to be difﬁcult in the third quarter, as demand for steel products has deteriorated, particularly in the car industry in Western Europe. This has forced some steel mills and foundries in our core markets to continue operating at reduced levels. However, against this backdrop we achieved results that were ahead of market expectations. A key operational highlight was our tight cost control during the period – a theme that will be of high priority for the company in 2013.

performance during the period and a series of efficiency measures for our Lost Time Injury Frequency Rate 2013 to ensure we are well positioned now stands at 7.48 lost-time injuries for the future. per million hours worked. We remain committed to reaching our target of Our balance sheet remains strong. At a LTIFR of less than five by 2015. the end of September, our net debt stood at EUR 481 million including Fourth quarter pricing EUR 444 million of cash and cash In our October trading update, we equivalents announced our agreed prices for coking coal and coke for the final Development projects quarter of 2012. The ongoing weakness Our review of the Debiensko project in in the steel industry is having a knock- Southern Poland is underway and once on effect on coking coal and coke it has been completed the Board will prices, which remain on a downward NWR operates in a region with the trend. Coking coal prices decreased highest proportion of industrial by 20% quarter-on-quarter to settle employment in Europe and the highest at an average agreed price of EUR 102 9M 2012 Highlights: car production per capita globally. per tonne (down almost 40% year-on- year), and our average coke price was Revenues Results highlights agreed at EUR 264 per tonne, down 8% of EUR 1,013 million Revenues were over EUR 1bn, down on the third quarter. EUR 228m mainly due to lower coking Mining unit costs of EUR 79/t coal prices that were down 30 per Finally, our thermal coal prices are EBITDA of EUR 227 million cent year-on-year; and EBITDA was locked-in for 2012 at an average EUR 227m, down EUR 142m. We made blended price of EUR 74 per tonne. Earnings per A share a net profit for the period of EUR 47m, of EUR 0.17 which translated to earnings per Cost control share of EUR 0.17. Coal production was NWR remained focused on tight cost Coal production of 8.6Mt, 8.6Mt with external sales of 7.2Mt, control during the period and as and external sales of 7. 2 Mt and the proportion of coking coal in a result our mining unit costs remained the external sales mix accounted for flat in CZK terms for the first nine Coke production of around 53 per cent. Coke production months of the year. This focus on cost 525kt, and external was 525kt with external sales of 432kt. containment and prudent capital sales of 432kt management will continue for the We achieved a further 6 per remainder of this year and into next LTIFR at 7.48 cent improvement in our safety year and we are currently finalising

Open Mine 4 I 2012 4 safety reclamations responsibility

Ján Fabián appointed Chief Executive Ofﬁcer of OKD

make a decision about the future of the project early next year. Meanwhile, our expansion project for the Karvina Mine in the Czech Republic to unlock 30Mt of hard coking coal reserves from the existing footprint by 2017 is progressing to schedule.

Although we are going through difficult times, NWR remains confident in the resilience of its business, which is underpinned by long-standing NWR has announced that Ján including customers, employees, customer relationships, in a region Fabián is to become Chief Executive our community and our with the highest proportion of Officer and Chairman of the Board shareholders. I am also delighted industrial employment in Europe and of its Czech coal subsidiary OKD, a.s. that Klaus will continue to make the highest car production per capita on 1 January 2013, succeeding Klaus a contribution to NWR in his new globally. Dieter-Beck, who will retire as CEO role as a Non-Executive Director after serving since 2007. Mr. Fabián, and ensure a smooth transition of Market feedback who is currently Chief Operating responsibilities,” said Gareth Penny, The main positive for analysts was the Officer of OKD, will also join the Executive Chairman of NWR. Company’s solid cost performance, Board of Directors of NWR. His which was better than expected while appointment follows the decision Mr. Fabián is 46 and prior to the main issue remains the impact of by Mr. Beck to retire from his role as joining OKD and NWR was advising lower coking coal pricing on margins CEO of OKD, a position that he has companies in the energy, resources, and cash generation in the near-term. held since 1 July 2007. Mr. Beck will steel, machinery and automotive One of the analysts summarised the become a Non-Executive Director of industries. His major areas of market reaction in this following NWR. focus included turn-around, sentence: “Despite a relatively strong privatisation, restructuring and third quarter compared to market “I welcome Ján to the Board process optimisation strategies. expectations, mainly due to excellent following his appointment as He graduated from the Technical cost performance, the coming several CEO of OKD; he has a thorough University in Košice, in his native quarters are likely to be challenging for understanding of our assets and Slovakia in 1988 with a degree the company.” during his four years as COO he in mining and gained a PhD in has been an important part of production optimisation for Radek Němeček our successful relations with underground mining from the Head of Investor Relations a broad range of stakeholders Technical University in Berlin in 1998. [email protected]

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Keeping with carbon

After transforming De Beers, the world’s largest diamond producer, from a deeply challenged mining company into an integrated diamond mining and marketing business, and then leading a strategic metals and minerals company, Gareth Penny was appointed Executive Chairman of New World Resources. A few weeks after taking up his post in October he spoke with Open Mine at NWR’s Prague ofﬁce, reﬂecting on the ‘carbon theme’ that has run throughout his career.

Gareth Penny has spent his the business. That really was its professional life in mining. Born in business model. It has led the world, South Africa, he was “exposed from and continues to do so, as the major an early age to the mining business producer of diamonds; De Beers and it was just always something that produces over 40 percent of the fascinated me.” That fascination led world’s diamonds. For many years the him to join Anglo American, one of the company followed a strategy where, world’s largest, and oldest, diversified when there wasn’t sufficient demand, mining companies. it addressed that issue through the supply side management. What was “I started with Anglo, more or less clear by the end of the 90s was that straight out of university. I was on that strategy needed to change; it was what’s called the Anglo American commercially and legally challenged. Management Training Programme, The company was a separate listed where you got exposure to the different entity at that stage, and De Beers’ companies in the Anglo American diamond interests were valued by the stable, which included companies market at less than a billion dollars, for like Anglo Gold and Anglo Coal. Anglo most of the 90s. I think that reflected and De Beers have had a very long the market’s very deep concerns about association together and I crossed over the business model. to the diamond side, and from the late 80s I was involved with the diamond “What I was asked to do in 1999 was business through very many different lead the change in De Beers and in aspects. I lived in Botswana for quite the diamond industry and to look at a number of years; I lived in London, new ways of doing things. We came up and in Johannesburg, and spent five with a significant change in strategy. years as CEO of the trading business, ‘Yes, we want to be the world’s leading prior to spending five years as CEO of supplier of diamonds and we want the De Beers Group. to be the world’s leading marketer of diamonds.’ That meant finding new During your time at De Beers you innovative ways to market our own transformed the company from production. a challenged diamond miner to a diamond mining, marketing and “So, we exited all of our third- retailing business… party contracts, with BHP, with “De Beers, like OKD, has a 100-plus Rio, with Alrosa, and closed all our year history, and for most of that outside buying operations. This was history, up until the last 10 years, a necessity in any event because, it focused on the supply side of particularly with the advent of conflict

Open Mine 4 I 2012 6 safety reclamations responsibility

diamonds, we needed to know where had gone from $1 billion to more Diamonds, graphite and now every one of our diamonds came from. than $10 billion, a huge creation of coal – all are made of carbon… We redirected our energy into finding shareholder value over that period. “Ironically I’ve stayed with carbon – new ways to market diamonds and diamonds, graphite, coal. There’s developed significant new marketing “It was a tremendously exciting time, a sort of interesting carbon theme campaigns into places like India and with changes in business model, that seems to run through my career, China. I think some people slightly changes in strategy and a real focus on somewhat unintentionally! misunderstood: the idea wasn’t about implementation. taking De Beers into retail, it was to Given your international complement the idea of growing the And from De Beers? background, what were the market, it was to create more brand “I had then done over 20 years attractions of Central Europe, of awareness for diamonds and to create with De Beers, and it was time to NWR and the coal business? more competition in the retail brand do something different. I got involved “Two words: challenge and opportunity. space. The strategy was successful in strategic metals, which fascinate The coal industry globally is and we saw rapid growth in demand me. There is a group of metals that a challenging business, particularly for diamonds. Not in a straight line, are essential for making computers, right now. In terms of thermal and because obviously the last 10 years mobile phones etc. Probably the most metallurgical prices we are pretty has been a roller coaster for every well-known ones are ‘rare earths’. The much at a low point and it’s going to business, but if you look over the ones that I was particularly involved require a different way of thinking period, then De Beers performed well. with were antimony, tantalum, about the business. There are many And the net result is that when the which goes into mobile phones, and challenges, but there are equally Oppenheimer’s [Anglo American’s graphite, which goes into making opportunities. Over 40 percent of the founding family] sold out of the new car batteries. You can’t make world’s electricity is produced from business 10 years later, the implied an electric car without significant coal; Germany is going back to coal. value of De Beers’ diamond business amounts of graphite.” So anyone who says that there is no

Open Mine 4 I 2012 7 economy interview technology

And the differences between diamond and coal mining? “The main difference is that with diamonds you are dealing with a luxury good that isn’t a necessity, and with coal you have a necessity that isn’t a luxury good! So the product itself is very different.

Regarding your previous experience, what would you apply from your past to the present in order to take the company forward? “A sharp focus on safety, on people, on production in terms of optimising it and making sure that it’s run highly efﬁciently. On the marketing side of the business, to make sure that we are the supplier of choice to our customers, that we are really achieving optimum pricing and building stable long-term relationships. And from a governance point of view making sure that the Company is in great shape and is an absolute beacon in terms of the way that it operates.

“I’d add one more point, and that is in terms of NWR/OKD’S “social licence to operate”. We need to see OKD and NWR as companies that are really understood by the communities and are embraced by future in coal, frankly needs to look at In De Beers safety was absolutely those communities. We employ 18,000 the facts. Sixty-eight per cent of all core: every meeting started by people. The value that is generated steel is made with coking coal. There spending time on safety. Similarly, by the mining operations in the is over 100 years of global supply of safety is first and foremost in our communities in which we operate, coal, whereas there is less than 50 minds at NWR. Then there are issues is absolutely essential in terms of years of global supply of gas or oil left. around the environment. Whether incomes, employment, benefits to As such, the long-term positioning and you are mining diamonds or you are the community, social infrastructure, importance of coal is huge. mining coal, you need to focus on the schooling, housing and so on. It’s environment, the community, and tremendously important that we Do you see any parallels between people. You are thinking about all of find ways to operate synergistically diamond and coal mining, between those issues. So, on the production with our communities. That’s always De Beers and NWR? side there are lots of similarities, challenging for a mining company “In any extractive industry there are although, of course, it’s not the same because people always want only the going to be many similar disciplines. recovery process or type of mining. benefits.”

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How can a cyclical industry like coal mining, where prices rise and fall every two or three years, best manage the cycle for the long term? “I don’t think there are easy answers. Being in a cyclical business is extremely challenging and so to prosper and grow you need to be very competitive. On the production side of the business we have to run efﬁcient operations, contain costs and carefully manage capital expenditure.

“On the demand side we have to ensure we are the Supplier of Choice to our customers. Cash ﬂow is the most important measure of a business in my view. If you can be cash positive (after debt payments) in the bad times, you will have an excellent business through the cycle.

And OKK? “OKK is Europe’s leading producer of foundry coke. It’s obviously challenging at the moment because foundry coke right now is a difficult business to be in, but I think we have some great people there and some great technology and we need to see how we can optimise it.” last few years, but you cannot be in do need outstanding people, but they the mining business if you are not have to be, first and foremost, team POP2010 was a major investment investing in it.” players. I want management to be very programme, do you see visible wherever we operate, leading a continuation of investment in How often do you get down the by example. equipment going forward or is it mines? time for a pause? “More or less every time I go to OKD. “I’ve been really impressed with “I think somewhere in the middle. I try to go underground at least once the people in NWR. The dedication We’ve been investing in new every couple of months. I love going of people whether in Amsterdam, here technologies, up to 200 million Euros underground, and I’ve been down all in Prague, in Ostrava and Karvina, a year. That bow-wave of investment of our mines. On my last visit I did the project teams in Poland, and has significantly ramped up efficiency a surface tour which was also very I might say the Board as well. There’s and underground mining methods. impressive. a real commitment and desire to I think going forward we will have to see an exciting future now for the be more measured in our expenditure, ”What qualities do you like to see company. but nevertheless we have to keep in your team? investing in the business. Not at the “Well, I think I’m a team player. So Joe Cook levels that we have seen over the for me it is all about the team. You [email protected]

Open Mine 4 I 2012 9 economy interview technology

Industry is the driving force behind Central European economies

According to Eurostat, the statistical ofﬁce of the European Union (EU), industry accounts for 25% of employment in the EU. But in Central Europe the percentage of workers in industry is way above the EU average. In Slovakia and the Czech Republic industry accounts for 37.4% and 38.4% of the workforce respectively, while industry provides jobs for 30.6% of the Polish workforce and for 28.3% of German employment.

How should the numbers be Miroslav Zámečník in a recent edition of interpreted? Industry forms the Euro magazine. backbone of Central European economies, having developed over The Moravian-Silesian Region more than two centuries. Following the attracts industry rather disproportionate importance What is the reality of the Moravian- given to industry during the communist Silesian Region, generally considered period, the 1990s were a time of the industrial heart of the Czech natural correction and the closure of Republic? Can the industrial tradition unprofitable operations. What remained weaken without negative economic was a reasonably healthy core that was and social consequences for the subsequently developed by the inflow region’s population? of foreign investment and enriched by new sectors and international Industry currently accounts for as companies. It can nevertheless be much as 40% of Moravia-Silesia’s GDP, expected that the importance of making it the region the fourth biggest industry will continue to decline in contributor, with some 10%, to Czech the Czech Republic, following the national GDP. “There are more than precedent set by countries further 17,000 industrial enterprises currently west. Among the reasons for the operating in the region, employing decline is insufficient investment in technical education and skills and competitiveness, areas where German There are more than industry traditionally serves as an example. A question mark hangs over 17,000 industrial how the Czech, Polish and Slovak enterprises currently economies will handle the challenge. “Germany is a good example and given operating in the the structure of our economy, there is none better. If the Czech Republic Moravia-Silesian comes out of the current situation region, employing afloat, it will be due to growing added value in industry and particularly in nearly 110,000 people, closely related services on the market. It is not just the product itself, but all which is more than one the linked sectors, the capability in third of the region’s servicing domestic technologies, and the ability to provide technological workforce. solutions in general,” said economist

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nearly 110,000 people, which is more than one third of the region’s workforce. Wages amount to approximately CZK 2.5 billion each month,” explained Jan Rafaj, Vice-President of the Confederation of Industry of the Czech Republic. From those gross wages the public purse collects monthly health and social insurance payments of CZK 1.16 billion and income tax payments of CZK 300 million.

The industrial sector, otherwise known as the secondary sector, also drives income to the national budget through taxation, as 61% of the income tax collected in the Moravian-Silesian Region comes from industrial Industry remains the driving force of the economy in the Moravian-Silesian Region. For enterprises. For example, between the steel mills, proximity to hard coal deposits is a comparative advantage in terms of 2006 and 2010, the industrial tax take transportation costs for raw materials. amounted to CZK 36 billion of the nearly CZK 59 billion that the region has not received much attention. In of renewable energy next year, and contributed to the national budget. Germany, for instance, this year should Třinecké železárny and OKD would see a 13.5% year-on-year increase each pay more than CZK 400 million. Coal as a comparative advantage in electricity produced by coal-fired NWR Group operates in the region power generation plants. This, say representatives of leading through its subsidiaries OKD and OKK local businesses such as Vítkovice Koksovny, which together employ There are numerous ongoing Machinery Group and ArcelorMittal approximately 18,000 people. It was investments in Germany as well as in Ostrava, would pose a significant risk the proximity to deposits of coal, the Poland and the Czech Republic, which to tens of thousands of jobs and the basic raw material for the production aim to modernise and/or build new very competitiveness of industrial of steel, that saw the region become coal-fired power generation plants, enterprises. the industrial heartland of first the which are more efficient in comparison Austro-Hungarian Empire, then to their predecessors. Moreover, as What, on the other hand, should Czechoslovakia and now of the Czech RWE CEO Peter Terium pointed out: be the role of industry in the Czech Republic. This comparative advantage “As opposed to wind and solar power economy? A combination of traditional has lasted throughout the period sources, [coal-fired power plants] and new industrial sectors based of restructuring heavy industry to are more flexible and are capable of on a highly skilled and educated the present day. Key consumers of continuous power generation.” workforce is one way forward. It is OKD's coal continue to include major exactly this coexistence of research steelmaking companies operating The biggest obstacles are and development centres, whose in the region, such as Moravia Steel unstable or inconsistent policies intellectual output and inventions is and ArcelorMittal Ostrava, which in What then is the future of industry in applied by industry, that could unlock turn employ thousands of people and the Czech Republic? And wherein lie future prospects and help to ensure the rank among the most prominent local the sources of the anxieties shown by stability of the Czech economy at a time employers. It is extremely difficult captains of industry? Representatives of uncertainty for the European and to imagine who could replace the of industrial companies most often global economies. That is the reason large traditional enterprises in their complain about the unstable political why NWR places so much emphasis employment role. Any reduction in and economic environment, and on collaborating with educational their output would inevitably have fatal measures adopted by politicians that, institutions, such as the Secondary consequences for the labour market in they argue, contradict the interests Vocational School in Karviná, the the region. of industry. Take the levies applied School of Technology and Services in by the government to subsidise Karviná, and the traditional seedbed Renaissance of coal in the energy renewable energy sources. These will for mining engineers for OKD mines, the sector next year increase by about half to VŠB-Technical University of Ostrava. Speaking of industry, it is worth a total of CZK 44 billion. ArcelorMittal mentioning the renaissance of coal Ostrava would, for example, pay in Marek Síbrt in the energy sector, something that excess of CZK 600 million in support [email protected]

Open Mine 4 I 2012 11 economy interview technology

OKD is an important customer of Caterpillar Responding to the technological revolution taking place in NWR’s Czech hard coal mining subisidiary OKD, several leading manufacturers of mining technologies have established local ofﬁces in the Moravian-Silesian Region. They provide jobs for thousands of people. One such example is the Caterpillar manufacturing plant in Ostrava.

”Wherever there’s mining, we’re there.” (roof supports for undreground mining – this is the commitment to the mining and hydraulic shovels). Historically, industry of Caterpillar, a company that the plant was part of OKD, under the can be called without exaggeration name OKD, BASTRO. This was acquired a giant in the manufacture of mining by Bucyrus in 2008, a company which equipment. Caterpillar Inc. employs was acquired by Caterpillar in 2011, some 120,000 people around the thus the plant became part of the world. In Europe, the company Caterpillar Global Mining division and operates mining manufacturing was subsequently renamed Caterpillar plants in Germany, Great Britain and Global Mining Czech Republic. the Czech Republic. Given its broad range of products for both surface and “Supplies to OKD account for undreground mining, Caterpillar is one approximately half of our revenues of the most inclusive companies in the in Ostrava. Our key focus is on world in terms of manufacturing and manufacture, installations, servicing mining technology. maintenance, repairs and comprehensive servicing of roof OKD accounts for half of the supports, armored face conveyors company’s Ostrava plant and belt conveyors. The other aspect production of our work comprises internal Caterpillar operates a manufacturing deliveries for other companies within and servicing plant in Ostrava the Group. These include roof support because of OKD and the extensive components and sticks for hydraulic modernisation that has recently excavators,” said René Prnka, Vice- taken place in OKD’s mines. This is Chairman of the Ostrava branch Board one example of several leading global of Directors. manufacturers of mining technologies who have established ofﬁces in the He also pointed out the unique region. Traditional regional suppliers and comprehensive system of enjoy similar opportunities for collaboration with OKD in the area of development. Caterpillar employs life cycle management. “This system approximately 550 people at its is unique around the world in terms Ostrava facility, which extends over an of its comprehensiveness. It involves area of almost 200,000 square metres. inspections of mining technologies The company is now looking to expand supplied by us to OKD, consulting, its technologically skilled workforce optimisation of the repairs schedule due to the growing volume of orders and stock optimisation, identiﬁcation received by the parent company. and prevention of fault risks, and minimising potential damage to The company’s local branch in Ostrava- equipment. The key factor in this Radvanice focuses on the manufacture area is the considerable reduction of components for mining equipments of downtime that we have achieved.

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Components for Cat roof supports are made in Ostrava, creating jobs for more than 500 people. The supports are assembled in Germany and from there are distributed all over the world.

By preventing damage through Ostrava and customised according to in Ostrava designated forEurope. rigorous monitoring, we succeed OKD requirements. The new longwall “New technologies have made in extending the service life of the systems acquired through POP 2010 a considerable leap in terms of equipment, increasing the productivity are made of components manufactured automation and hydraulic control of mining, thus also reducing costs,” both in Ostrava and in other Caterpillar at coalfaces. All OKD employees Prnka explained. Caterpillar provides plants or by other suppliers from using such equipment have had an a 24 hours/7 days service to OKD, around the world, and subsequently opportunity to acquaint themselves with a response time of four hours at assembled in Lünen, Germany, before with these technologies in the any time of day, resolving any issues being dispatched to OKD. training centre, ﬁtted with control that may have emerged or replacing units. Use of the units is part of a damaged part from stock. Plow mining, typical within OKD for the the training programmes provided. Paskov Mine as well as the Lazy plant We have devised several training Fifteen OKD coalfaces with Cat of the Karviná Mine, is speciﬁc in its modules tailored to the particular presence ability to control mining operations specialisations and needs of the Cat equipment operates at 15 of remotely. The machine operator can participants,” Prnka said. OKD’s active coalfaces, of which extract coal a kilometre below his 11 have completely new technology station and monitor the process via The company is also present in Poland, acquired through the Productivity computer. where four of its plow systems are Optimisation Programme 2010 used in the local coal mines. The Polish (POP 2010) investment, comprising Caterpillar’s Ostrava facility is branch is considerably smaller than the complete systems with roof supports, the only one in Europe capable of Ostrava facility and provides only on and face and entry conveyors. Only comprehensive overhauls of such site service; repairs and overhauls of the shearers have been delivered mining technologies. mining equipment are made in Ostrava. by other manufacturer. OKD mines also operate approximately 100 belt The POP 2010 project also led to Marek Síbrt conveyors supplied by Caterpillar in establishing of a training centre [email protected]

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Logistics system deployed at OKD undergoes dynamic transformation

Efﬁcient logistics is a prerequisite for productive and safe hard coal mining at OKD. The company is currently implementing a new logistics system that is already having positive results.

How do you transport massive approximately 100 containers every mechanised supports to hold day. The containers largely bring a roadhead ceiling that weighs several material necessary for preparatory dozen tonnes, hundreds of metres works, i.e. the tunnelling of mine underground? How much material workings to provide access to coal needs to be shipped into a mine in seams. Deliveries of steel supports, order to create the infrastructure that bolts, expanders and other fittings, is indispensable for efficient and safe which flow from surface storage hard coal mining? And how are miners facilities to specific workplaces at transported to their workplaces, often the roadhead, need to be as fluent as several kilometres away from the possible. shaft? What is the route that coal must take from a thousand metres deep Logistics is not merely transport underground to the preparation plant Many people often consider logistics on the surface, where it is refined to and transport to be two names for the meet customer demands? same thing, but that is not the case. In fact, logistics in deep mining come These questions and many more relate into play as soon as negotiations to the logistics and transport system open with suppliers. The first aspects within the business of deep mining for to be clarified are the parameters, hard coal. “The position of logistics in packaging and the form of delivery coal mining is essential in OKD, as it is for the desired materials, machinery also closely intertwined with numerous or other necessary equipment, to other areas in operating the mines. make the deployment and usage of What is meant here is a system for the the materials as efficient as possible. storage and handling of materials, the “For example, we are now negotiating monitoring of material movements with ArcelorMittal Ostrava, our and the economic use of materials, supplier of steel supports, to make the route taken by materials from sure they deliver them in sets of eight. storage facilities on the surface to the That is the quantity we place in each destination workplaces hundreds of container dispatched to the roadhead. metres underground, as well as the So far, we have been receiving the safety of materials and other aspects,” supports in sets of ten. That means said Antonín Míra, the Logistics extra handling before we send them Manager of Darkov Mine. underground. It is precisely apparently simple details like this that are most Logistics is no marginal affair, as so important in streamlining the whole evidenced by the fact that at Darkov process,” said Míra. Mine some 300 people are employed in this area underground, along with In listening to Míra , it becomes clear additional employees on the surface. that many aspects of the OKD logistics Every day, large amounts of various system have changed in recent years materials travel hundreds of metres and that many more changes are underground. One mine deals with currently taking place. In the past five

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The Frýdek-Místek company Ferrit is an important partner and supplier for the “New OKD transport and logistics system” project. Thanks to its orders from OKD, the company is able to employ 300 people in the region. years the company has invested huge Since last year the project has, for rail for the remainder of its journey. The sums of money into the core processes example, included the deployment of new system has also improved control of extracting coal and constructing unified TH containers, instead of the over material handling, since the steel mine workings. The Productivity traditional mine trolleys. Darkov Mine supports, nuts and expanders are no Optimisation Programme 2010 (POP now has 180 of these containers. The longer separately shipped. 2010) saw the mines equipped with the system has been configured to fit most-up-to-date mining technology the complete material requirement, How do you get the immense at a cost of CZK 11 billion. OKD is now weighing no more than four tonnes mining set into a mine? following up on its decision to focus on and sufficient for driving two metres of Modern mechanised supports and support processes, including logistics, a new tunnel, into a single container. mining sets are constructed to larger where it sees considerable potential The arrival of the containers has sizes than their predecessors. To for efficiency and savings. The project significantly improved the fluency ensure the faultless and efficient to achieve this is now fully under way. of material supply for specific transport of these items into the mine, It is being gradually implemented at workplaces underground thanks to a considerable level of precision is individual mines throughout OKD, easier handling at the transshipment required, starting with packaging by with Darkov Mine selected as the pilot point. The container is simply lifted the manufacturer. The sets, dismantled site. The main supplier to OKD in this with special hoisting equipment from into individual constituent parts, are respect is Ferrit from Frýdek-Místek. the bogie and moved to the overhead shipped by trucks to OKD.

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deformed are carried out, in order to ascertain whether the sections can be transported as assembled using the overhead rail. The key parameters are the size and weight of the sections, up to 40 tonnes in the case of coal extraction from the highest seams, and the slope of the intended route. When sections cannot be transported to the new site as assembled, a chamber is made beside the ﬁnished longwall. Here the sections are dismantled for subsequent shipment.

A transshipment point is no storage area For the efficiency of a logistics system, transshipment points within the mine must be free of materials. “There are no storage places in a mine. Any accumulation of material is therefore a sign that the system is not working efficiently. A transshipment point is a place where the mode of transport switches from ground track to overhead track. It is not for intermediate storage, something we quite understandably Rail trains that run along the ground in OKD mines have gradually given way to transport that uses an overhead rail, which is more efficient. Maintenance of the wish to avoid in a mine, since the room overhead rail is also simpler than is the case with ground rail tracks. for material handling is intrinsically limited,” Míra explained.

Smaller components are delivered a longwall? In cases where the new Ground rail transport is currently to the underground destination in longwall is close enough, the aim being gradually replaced with the containers, in the same way as other is to shift the supports as a whole. transportation of people and materials materials, while larger pieces are The decisive factor is the technical via an overhead rail. Darkov Mine now loaded on to special undercarriages. condition of the equipment. If it operates 49 overhead locomotives. The The bulkiest components, which cannot allows for immediate deployment at project is marked by extensive change, be dismantled and thus cannot fit the next site, with the possibility of as the old locomotives are replaced inside the hoisting cage, are lowered performing maintenance, small repairs with new, more powerful ones, with into the mine within a special container and the replacement of worn parts more efficient operational control, suspended underneath the cage. This directly underground, it can bring which will result in a need for fewer is where communication between considerable savings. Having to lift locomotives. For example, at Darkov the supplier and the miners is of vital each of the sections, weighing several Mine, there are now 10 fewer overhead importance. Technical documentation dozen tonnes, back to the surface for locomotives than there were at the provided in advance specifies accurate servicing is clearly expensive. Not to beginning of 2011. dimensions. These are subsequently mention that there are usually more used in planning the mode for the than one hundred of these sections Ground rail transport is more delivery of bulky materials, machinery at each longwall. On the other hand, demanding in terms of maintenance. and equipment into the mine. the longwall sets usually return to The underground mine environment the surface for servicing after the is prone to changes due to geological Moving as a whole from longwall exhaustion of a longwall. factors, which can cause tracks to to longwall buckle. In contrast, overhead rail offers What happens to the mechanised Once coal extraction is finished at a more reliable means of transport for supports and the longwall set a longwall, checks on whether the moving miners and materials almost when coal extraction is finished at adjacent corridors are damaged or from the pithead to the workplace,

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something ground rail cannot achieve. funicular railway or the caterpillar belt every night, when the hoisting cage is Safety parameters are extremely transport. “Our miners were slightly slowly lowered into the mine and the rigorous for both ground and overhead suspicious of the funicular railway pit is examined visually. The rope that rail systems. Authorised technicians at the beginning, but they eventually holds the cage is subject to thorough check the track daily. grew accustomed to it and became monitoring to ensure absolute safety. quite addicted to it. It is an invaluable Locomotive drivers regularly undergo help especially in places where Changing people’s mindsets psychological testing and need to take mine workings contain a significant What is the most difficult aspect of a special course to obtain a licence to elevation. Plus it runs virtually the whole system of logistics and operate the overhead locomotive. They faultlessly. It is a vastly different transport at a mine? “I believe we have also undergo rigorous testing annually. experience to walk up a hill with all but resolved the technical side of a 15-degree incline when hiking in the it. The system is working and we need Taking a funicular to your mountains compared to doing the same now only introduce minor tweaks underground workplace down in a mine,” pointed out Míra. and improvements, something there As coal extraction in the Karviná and is always room for. Metaphorically Frýdek-Místek region progresses, Vertical transport – strict safety speaking, we have a car, with round the distances from pitheads to The most risk-prone mode of transport wheels and a functional gearbox, a car workplaces perpetually increase. This is the vertical type, when a hoisting that moves,” observed Míra. According has demanded a change in the system cage containing people or materials to him, the greatest challenge ahead of transport in order to ensure miners travels downwards at a speed of 8 to is making sure that people change moved as efficiently as possible. 10 metres a second. The cage can their mindset and get motivated to “Virtually all Darkov Mine employees accommodate as many as 80 miners, replace a system that has been in use now use overhead rail. With the new and an old miners’ wisecrack says for 30 years. With the new system, the transport system, they need walk that several times more can squeeze section leaders become customers, no more than a kilometre, saving as in for the return journey. The hoisting placing orders for whatever they need much as one hour of work time per cage operator is the key person here. shipped to their workplaces. That employee,” said Míra. The operator undergoes regular re- requires them to plan ahead. “Our examination on the job and also has primary objective is to have the system In addition to the options of travelling psychological tests from time to time. operating correctly, not to simply be by mine train or overhead rail, OKD comfortable. Resolving a problem at mines also offer other unusual means The pit and all equipment associated the last moment detracts from the of transporting miners, be it the with vertical transport are checked efficiency of the system and makes it more expensive. We all need to realise that if I forget to order something that I need for my work, and it eventually makes its way to me, I am blocking others from attending to their needs. But I do believe we are succeeding in optimising the system and changing the way people think,” concluded Míra.

Darkov Mine, added Míra, is currently trialling an SAP system, designed to further improve the fluidity of the transport of materials to workplaces underground. The SAP system and labels with codes that are attached to all transported materials will enable the detailed monitoring of material flows from surface storage to final destinations.

Ingenious methods of transport are seen in OKD mines. One of these methods Marek Síbrt is the transport of miners using a caterpillar belt transporter in mine workings [email protected] with signiﬁcant slopes.

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Mongolia: the sleeping giant of coking coal supply

Mongolia, sitting on vast resources of mineral wealth, is at last beginning to realise the potential that has been talked about for many years as more of its resources come to market. The country’s coal resources are considered some of the last untapped quality deposits anywhere in the world and their development could signiﬁcantly impact international supply dynamics.

Although coal can be found spread The majority of the Tavan Tolgoi across this vast country it is one deposit is owned by the Mongolian particular deposit in the middle government through a state company of the Gobi desert at Tavan Tolgoi called Erdenes that was due to list in that has governments and mining London, Hong Kong and Ulan Bator companies scrambling to get a piece earlier in the year but that listing has of the action. been postponed several times because of regulatory hurdles and political The Tavan Tolgoi deposit, located deadlock. It is the western half of the just 220km from the Chinese border, Tavan Tolgoi block however, not part of is a massive deposit of some six the Erdenes listing, which has seen the billion tonnes of coal, 1.6bn tonnes real political contention as it becomes of which are high-caloriﬁc coking the ﬁrst part of Mongolia’s coal coal making it ideally situated to feed reserves to be opened up to foreign China’s growing industrial appetite. investment. However it is Mongolia’s very location, landlocked and sandwiched between Last year, the Mongolian government its two giant neighbours of China announced that Peabody of the US, and Russia, with no direct access to China’s state-controlled Shenhua seaports that has begun an intriguing Group and a group of companies led geopolitical scrap over access to and by Russian Railways would be part of the future supply of the coal at Tavan a consortium to develop this western Tolgoi. block, which contains 1.8 billion

Mongolian Coking Coal Exports

10 Million tonnes 5

0 2006 2007 2008 2009 2010 2011 2012* 2013* 2014* Source: AME (*2012, 2013 and 2014 estimate).

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tonnes of coal, 65 per cent of which is high grade coking coal. However, the RUSSIA bidding process was quickly branded as unfair by participants from Japan and South Korea and rejected by supervising authorities in Mongolia. In recent months the process has again been thrown open for tender Ulan Bator and another wave of political pressure has been coming from all sides to win MONGOLIA favour for the respective companies involved.

Further complicating the process is a protectionist impulse coming from Mongolia’s nationalists, who Mine name/deposits have grown increasingly powerful in CHINA OVOOT TOLGOI Major coal deposit TAVAN TOLGOI the two decades since the country Coal projects broke free from Soviet influence. Old Coal basin hostilities against both Russia and China make the current Mongolian government reluctant to cede too much power to companies from these Source: Polo resources, Thomson Reuters, Estimate of China General Administration of countries. Meanwhile, the US appears Customs by 01/02/2011. more than happy to step in as the moderating force against these rival powers that should see Peabody Despite these complications, market. Mongolia also has a freight leading the consortium of foreign Mongolia’s ability to seriously disrupt advantage delivering into China due to companies developing the deposit at the traditional supply chains in the being a neighbour, adding to its cost Tavan Tolgoi. Asia/Pacific coal markets is already competitiveness. evident. The country has gone from Such political manoeuvring has exporting 2.2 million tonnes of coking These export advantages to China exposed the finely balanced position coal in 2006 to expected total exports have largely been at the expense of Mongolia, and its relatively tiny of 20 million tonnes this year, almost Australian coking coal supply with population of just three million all being sent to China. The country future Mongolian output representing people, now finds itself as the growing has advantages over traditional a real threat to the dominant position rivalry between Washington, Beijing seaborne supplies to China since, of Australian exports to China and and Moscow threatens to delay the being a landlocked country, it is the region at large. The floods in development of the country’s vast essentially forced to accept lower Queensland in 2011 compounded resources. prices in comparison to the seaborne this position for Australia when Chinese steel producers switched to Mongolian suppliers for their coking coal requirements. Once Australian China Coking Coal Imports by Source production recovered at the beginning of 2012, Chinese customers who made 100 % the switch to Mongolian coals, had little

22 % Other incentive to switch back to Australian 31 % 32 % 80 % 40 % Mongolia coking coal, where the Mongolian coal 12 % Australia was of sufﬁcient quality. In the longer 60 % term, Mongolia will be well placed to 32 % meet the predicted booming demand 45 % 40 % 32 % of Chinese and Asian steel industries 66 % given its geographical location and high 20 % 37 % quality coals. 23 % 28 % 0 % Stephen Hough 2009 2010 2011 2012* Market Analyst, New World Resources Source: AME (*2012 estimate). [email protected]

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People are key to sustainable development at NWR

People are the most important assets of NWR, as reﬂected in its 2011 Sustainability Report.

In May NWR released its first audited with as much as 22 percent of Sustainable Development Report, economically active inhabitants. These presenting a comprehensive overview numbers demonstrate the importance of the Group’s 2011 achievements in of our operations for people in the sustainable development and setting region,” said Tomáš Rak, NWR’s out its objectives for the coming Sustainable Development Manager. years. This is all part of the company’s efforts to be open and transparent Mining is a demanding activity and in its approach to employees, the not suitable for all. Employees work environment and nearby residents. The under challenging conditions hundreds Report demonstrates that NWR has of metres underground. Mining jobs a strong sense of responsibility for its are highly specialised with countless activities. demands that are completely alien to people in other occupations. NWR In drawing up the Report, NWR must therefore create appropriate chose to follow the most widely used conditions, which can be divided into sustainable development methodology, several basic categories. GRI, which guarantees objective measurement. Safety first For NWR, the occupational safety and NWR’s sustainable development health of its employees is a priority rests on four essential pillars. People that cannot be overshadowed by working in NWR and its subsidiaries any amount of financial success occupy an indispensable place among or volume of extracted coal. This is them and that is why this short text is where activities pursued by NWR’s dedicated to them. subsidiary OKD, which employs 95% of the Group’s workforce, play a key Key employer in the Moravian- role. OKD pays the utmost attention Silesian Region to increasing safety levels in mining NWR is the largest employer in the operations. Moravian-Silesian Region, with more than 14,000 core employees and From 2008 to 2010 OKD pursued its another 4,000 suppliers’ employees. programme “SAFETY 2010”, designed “NWR operations and activities to re-equip mining employees with the affect directly or indirectly the lives most up-to-date personal protective of virtually all inhabitants of the kit worth more than half a billion region. This is especially true in the Czech crowns. The programme was Karviná area. Expressed in figures, followed by other measures, such the company employs 7.5 percent as the deployment of a system to of economically active residents monitor the movements of employees in the administrative region. Many within a mine, or provisions for municipalities report even higher implementing a communication percentages, such as Karviná with system for operations controllers, 12 percent, Albrechtice u Českého where the core requirement is Těšína with 18 percent and Stonava a two-way communication between

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employees underground and the operations control desk.

Another significant increase in safety was brought about by the “POP 2010” project that saw OKD mines equipped with state-of-the-art mining technologies at a cost exceeding CZK 11 billion. The programme also resulted in an improvement of microclimatic conditions underground. For example, the automated system for spraying the coal pillar and adjacent rock with water significantly reduces dust at longwalls, by as much as 60% in some cases. With the scale of the new technologies the space between the individual sections and the pillar has also increased, improving airflow and thus the working conditions underground. Longwalls can now be fitted with new air-conditioning units that would have been too big for the previous sets. Further improvements to occupational safety and health are set as the key objective for another programme named PERSPective 2015. Miners in OKD mines have acquired new personal protective equipment in recent years. The equipment is more practical, lighter, and offers new safety elements, such as reflective Employee remuneration stripes on overalls and shirts. NWR stresses fair and adequate remuneration for work done. Education with the most up-to-date teaching “Our company rewards motivated With the implementation of state-of- and training equipment. In 2011, the employees and work well done. For the-art technologies, it is necessary Centre provided training sessions for example, the average salary of OKD to continuously improve employee 22,653 employees. miners in 2011 was CZK 35,123. That qualifications. Modern machinery was one third above the regional demands operators with the best Continuous Improvement average. Our people can also take education and training. That is why programme advantage of a range of nearly 30 continuing education and a broad NWR values initiative and creativity other benefits, from contributions range of training programmes play among its employees. That is why the to pensions and life insurance, such a significant role in human Continuous Improvement Programme contributions to holidays and resources management throughout was launched in 2009. “Since Christmas, through availability of the company. the inception of the Programme, rehabilitative and curative medical 1,463 sensible rationalisation care, to tickets for various cultural, Since 2008, training hours have proposals have been submitted, with sporting and social events,” Rak said. been significantly increased to an resulting savings of approximately average of 21.8 hours in 2011. This CZK 800 million, improvements to and Employee remuneration is based achievement was considerably aided simplification of working practices on collective agreements with the by the establishment of the OKD for many people as well as increased trade unions, while some employees Central Educational Centre at the levels of occupational safety and are on individual contracts. Where Darkov Mine, available to all OKD health in workplaces,” Rak said. remuneration is concerned, male employees as well as employees and female employees have equal of suppliers’ companies within the Marek Síbrt conditions at NWR. Karviná region. The Centre is fitted out [email protected]

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No one is obliged to be a good neighbour

disabilities. One application came from the I Am Association, which manages a project entitled “Let’s Open a Better World”. The project offers holidays and rehabilitation for children and young adults from the region. Our ﬁnancial contribution helped organise a conference, a Day for the Disabled in the district, and rehabilitation workshops and excursions for children with disabilities. Another organisation that received ﬁnancial support was the Kendżi Association from Stanowice for their project bringing hippotherapy to everyone who needs it in the region. The project is currently receiving new applications for consultations and hippotherapy.

Sports equipment for the Czuchów team. Sport and health are well worth your time 2012 was a year full of challenges for Unit to rebuild its training facilities, Motocross, volleyball and football NWR KARBONIA. We carried out many which will improve the practical side are the sports that we have chosen of our own projects and participated of education and enable students to to support this year. The Czerwionka in a series of charitable projects get acquainted with their future work Motocross Club has just opened with other organisations. We have environment. a women’s section. The Club organised always strived to support people from an International Championship of this region who need it most – the The Ramża Project – Act Locally VII Silesia and Zaolzie - TOP AMATOR CUP young, the talented or those with The Ramża Foundation has applied 2012 - in which it also had its share disabilities. The Company intends to to the European Commission for of success. The teams received new help strengthen the local community funding for “Act Locally VII”, a project training equipment that has helped through long-term projects and to support citizens and communities their sporting achievements. initiatives. at the district level. This year it attracted 19 applications from five Culture with a modern look “Education with KARBONIA” municipalities in the Rybnik district ”The Tolerance Trail” is the name of In cooperation with the Ramża (the programme’s operating range). a project that commemorates people Foundation and the Upper-secondary Grants have been awarded to eight from artistic, sporting and cultural School Unit in Czerwionka-Leszczyny, initiatives of various types, including circles who have created the history NWR KARBONIA has initiated environmental protection, promotion of Cieszyn. The project aims to remind a scholarship programme that will of healthy lifestyles, rehabilitation of us of the multiculturalism of the city, benefit the students and the region, the disabled, sports and educational which lies in two countries. Initiated by help increase the level of education activities and art workshops and an association known as the Creative and give young miners the opportunity programmes dedicated to preserving Women’s Club, the project attracted for professional development. We have traditions and cultural heritage. the young, who prepared biographical been able to carry out this programme notes about the people of their choice thanks to cooperation between A better world for children with to be commemorated on interactive businesses, educational bodies, disabilities plaques. non-profit organisations and the local This year NWR KARBONIA decided authorities. In the third quarter we to provide financial support for two Anna Golasz helped the Upper-Secondary School programmes that help children with [email protected]

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Housing estates come alive thanks to OKD Foundation

Up to 90% of the inhabitants of large cities within the Ostrava-Karviná conurbation live on housing estates. This is higher than the national average; in other cities and towns in the Czech Republic less than two thirds of people live on housing estates, according to statistical data. The high ratio is one reason why the OKD Foundation came up with a programme named “Living Housing Estates” – an initiative aimed at improving living conditions and community relations on housing estates. The first results of the programme are beginning to show, with five housing estates coming alive and OKD winning recognition for its endeavours by taking first place in the “Business and City” category of “TOP Responsible Company” competition. The Living Housing Estate project won a major award in the TOP Responsible Company contest, triumphing in the Company and City category, as well as an award for effective One of the housing estates gradually advertising in the Effie Awards. getting a makeover thanks to the mining company is Lutyně in the town “They are very poor. To help here means relations among neighbours are of Orlová. People from the local Youth to contribute, hopefully, to children something that money can’t buy. Centre and residents of the surrounding being able to learn how to properly tower blocks are sharing the goal play and entertain themselves. It is not The new programme Living Housing of transforming the premises of the very common nowadays to see them Estates is one of the long-term former nursery school, now operating meeting and playing together. They priorities for the Foundation. “We as a popular children’s club, into a place are more likely to sit in front of the have a clear idea of the possible of entertainment for people of different computer at home, or just wander the benefits. We have been building upon generations. A beach volleyball court, streets aimlessly,” added Valouch. the experiences of similar initiatives a barbecue marquee and a rope monkey carried out in Bratislava, Copenhagen trail for smaller children are all planned. All proceedings take place under and New York. We thought that if And thanks to a grant of CZK 1.2 million the watchful eye of Sylvie Tůmová, they could succeed, so can we,” from the OKD Foundation, one of its who leads “Bejbáček”, a club for explained Jiří Suchánek, Director highest ever grants, the community the youngest children. “We want of the OKD Foundation. In addition has completed the planning phase and to transform the disused premises to the Orlová project “Merrily in the started voluntary weekend work. into a place where children will find middle of a housing estate” [Vesele suitable facilities to safely enjoy their uprostřed sídliště], the Foundation “Why do I do it? For the kids, why free time. The garden will also serve as is also funding the restoration of the else?” was the straightforward reply a public space for local residents so dilapidated outdoor cinema in Orlová of Pavel Valouch, a coal miner for they can spend time together rather and other housing estate activities 27 years at Darkov Mine, when asked than anonymously sit inside their flats. in Studénka, Brno and Prague. A new about his voluntary participation. Housing estates should not be places grant round was announced in autumn, With his partner he is bringing up four for mere survival,” Tůmová said. She is which is open to projects solely from children, aged between six months and well aware of the fact that by engaging the Moravian-Silesian Region. 15 years, so the couple are familiar the public the project can gain much with the limited leisure options more than simply the million crowns Vladislav Sobol available on regular housing estates. sourced from the Foundation: closer [email protected]

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