New World Resources Magazine

No. 1 2012

interview 6–9 Kowalczyk: people want to be successful

technology 12 –13 A gallery of a rare length and proﬁle will connect Darkov and Karviná Mines

responsibility 23 OKD Foundation non-proﬁt project awards Editorial

Dear reader, It is something I feel sure you are familiar with from your own experience: friends who have spent years abroad return home and, as we show them around, they cannot hide their surprise at the transformation that their home town and their country have undergone during their absence. This is natural, as only those who have kept the necessary distance are able to discern changes down to the fine detail. I myself had a similar experience when I returned to OKD after a five-year interval. This is where I started my professional career, before serving a full 15 years at various levels of the group. The OKD I have come back to is completely different from the one I left. The new extraction technologies, introduced as part of the Productivity Optimisation Programme (POP), make our miners’ work easier and allow the mining of coal in less accessible places. The new coking battery at our sister company OKK was designed on the basis of the latest scientific research and according to the most stringent demands for environmentally friendly operations. The new mining control system ensures that our clients enjoy security of supply and enables a higher measure of flexibility in the production of coke. Work safety standards at the mining and coking operations have experienced an appreciable improvement. And on top of all this, the company is managed in a modern fashion, providing for openness, transparency and social responsibility. For half a year I have been in charge of coal and coke sales. My objective is to achieve absolute customer satisfaction in the products we provide and the service we deliver – I believe we will succeed.

Zdeněk Durčák, Chief Commercial Ofﬁcer at OKD

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: 9 March 2012 With a QR code reader on

All rights reserved. The reproduction and use of all images contained within this publication your mobile phone, you do without the written approval of NWR is forbidden. The logos of companies, products and services not have to retype a web introduced in this publication are the business trademarks of the respective ﬁrms. Questions, address. Just scan the code remarks and article ideas can be sent to: [email protected]. An electronic version of the magazine on the left into your phone. including active links is accessible on the Company website. 6–9 How do things work at the ČSM Mine? Its director knows best

10 –11 12 –13 Which coal is A three-kilometre best for coking tunnel is being and which coal dug from both is used in the ends to connect energy sector? two mines

18 –19 14 –17 China is the world's There is not solely biggest producer one type of coke – of coal, yet it still different types needs to import are produced for additional volumes different purposes

Content

4–5 economy 14–17 technology NWR in 2011: great performance in We refine black gold: we produce coke a challenging environment 18–19 economy 6–9 interview The Chinese coal industry Kowalczyk: people want to be successful 20 economy Does Europe need its own mineral 10–11 technology resources policy? Coal is coking coal if… …Or a story about OKD’s laboratories 21 responsibility Water: indispensable for life, 11 technology and for hard coal mining NWR Karbonia: a modern and safe company 22 responsibility Who is a stakeholder? 12–13 technology A gallery of a rare length and 23 responsibility profile will connect Darkov OKD Foundation non-profit and Karviná Mines project awards economy interview technology

NWR in 2011: great performance in a challenging environment

In February NWR published its preliminary results for the ﬁnancial year 2011, which were broadly in line with market expectations. With revenues of EUR 1.6 billion and EBITDA of EUR 454 million, NWR delivered one of its best ﬁnancial performances ever in a period characterised by severe challenges in the global economy.

We achieved solid operational Earnings per share of performance with both coal production and coal sales EUR 0.47 for the targets being exceeded, year, and a dividend of mainly due to higher volumes of thermal coal. And due EUR 0.23 per share to further improvements in for the year. safety, NWR has accomplished its lowest ever injury frequency rate. In 2011 NWR reincorporated in the United Kingdom and is now Capitalising on previous included in FTSE 250 and FTSE 350 Mining indices, which provides even investments greater exposure to an international investor community

Throughout 2011 we Growth of the first of the two planned continued to benefit from slopes. The project is advancing our considerable investments The most significant milestone and we will invest up to EUR in our underground mining for NWR during 2011 was 50 million in 2012 as we work equipment, thus enabling us to the decision to commit to towards bringing the mine into partially mitigate the negative our organic growth strategy production in 2017. Looking effects of cash cost inflation, by starting work on opening further to new opportunities, as well as the geological the Debiensko Mine. This is we announced our intention to challenges of mining ever a 190 million tonnes hard coal explore the hard coal resource deeper underground. Mining deposit (mostly coking coal) at the Frenstat Mine in the at around 1,000 metres below in southern Poland over which Czech Republic. the surface poses significant we have a 50-year mining challenges in terms of both license. Our decision was Reincorporation safety and production. Hence based on a detailed feasibility being able to exceed our study of the proposed mine A key milestone for overall production targets for together with our assessment the Company was the the year and further reducing of the long-term market. reincorporation of NWR in our Lost Time Injury Frequency During 2011 we assembled the United Kingdom and our Rate underlines the benefits of an experienced international subsequent inclusion in the those investments as well as project team and, in FTSE 250 and FTSE 350 Mining the commitment and discipline December, we broke ground indices. We continue to believe of our dedicated workforce. and commenced excavation in the long-term rationale of

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demand from Poland and renewed investments in coal- fired power plants in countries 2011 Highlights such as Germany, thermal coal seems positioned to play Revenues of EUR 1.6 billion an ever-increasing role in the regional energy mix. EBITDA of EUR 454 million Net profit of EUR 130 million Dividend Less than 8 lost-time injuries per million hours Given our strong performance in 2011 and in line with NWR's worked stated dividend policy of Coal production of 11.2Mt, and external sales distributing 50 per cent of annual net income over the of 10.6Mt course of the business cycle, Broke ground at Debiensko Mine in the board has proposed a final dividend of EUR 0.07 per share. southern Poland If approved by the Annual General Meeting in April, this Intention to explore the hard coal resource will bring our total dividend at Frenstat Mine in the Czech Republic for 2011 to EUR 0.23 per share. Reincorporation in the United Kingdom and Summary inclusion in FTSE index series

The market reacted positively to our results. On the day of the announcement our stock 2012 Outlook this decision; one that allows outperformed the FTSE 350 NWR to increase its visibility Mining index on the London Q1 2012 coking coal and coke prices agreed amongst the international Stock Exchange. Our cash cost at EUR 142/t and EUR 311/t, respectively investment community. containment, in particular, was well received, with one Thermal coal average prices for 2012 agreed Long-term fundamentals of the analysts covering NWR at EUR 74/t , up 11% compared to 2011 of our business noting: “NWR’s guidance of flat mining cash costs in Coal production and sales targets of 10.8–11Mt We strongly believe that the 2012 looks a tough task… and 10.25–10.5Mt, respectively fundamentals for coking coal having said that, the fact that remain attractive, globally costs came in in-line with Expected external coal sales split of 48% coking and in our region. Despite expectations in 2011 lends the difficult macroeconomic credibility to this target.” The coal and 52% thermal coal environment in 2011, car market also likes the fact that Coke production and coke sales targets of 700kt production in the region, one our coking coal pricing is fully of the key drivers of local steel aligned with the global pricing and 600kt respectively production, grew rapidly: up cycle, and that our stock 12% in the Czech Republic offers unique exposure to the Mining unit costs expected to stay broadly flat, and 13% in Slovakia. This appealing CEE growth story. in CZK terms reinforces our belief in the long-term prospects of the Radek Nemecek Expected CAPEX of EUR 250 million of which steel sector in CEE. Head of Investor Relations EUR 40-50 million for the Debiensko project Similarly, with on-going strong [email protected]

Open Mine 1 I 2012 5 economy interview technology

Kowalczyk: People want to be successful

ČSM Mine had a successful 2011, recording its highest ever output. Injuries decreased, new air-conditioning improved conditions in the mine, POP 2010 (Productivity Optimisation Programme 2010) increased efﬁciency and made the miners’ work less arduous, and new conveyor belts improved the removal of coal. And yet he cannot help but think aloud about further efﬁciency improvements: Boleslav Kowalczyk, the ČSM Mine Director.

Is mining a family 2,862,000 tradition? tonnes of coal On the contrary. No one in The volume of coal produced our family had ever worked at the ČSM Mine last year. in a mine, despite the family The plan was exceeded by having lived in the Karviná 262,000 tonnes, setting a new area for generations. Following historical record. elementary school, I went to study at the mining vocational school attached director of ČSM Mine. The successful, not unsuccessful, to what was then Dukla beginning was difficult; 2010 and only a minority don’t really Mine, where I trained to was not very successful for us. care. I have always based my become a mine electrician. However, I’m sure that in the approach on this and I try My studies included three end the move to the ČSM Mine to provide everyone with an years of training on the job in proved beneficial for me, and, opportunity to make their the ČSM-South plant, where on the other hand, paid off for mark and show what they are I first acquainted myself with the mine, I hope. My new team capable of. I merely define the my current station. After faced considerable challenges, boundaries. I try to refrain from graduation from university but I can confidently state that controlling every step people I took a job at what was then we have stood our ground. This make, as that would take away the Ninth of May Mine, which mine is somewhat specific in their freedom and creativity. It’s is today’s Darkov Mine. I spent that for a considerable time it paid off. nearly 31 years there. operated independently, outside of OKD, and in a slightly You spent over 30 years How did you become different manner. Eventually, at Darkov Mine. How Director of ČSM Mine? I came to the understanding does that compare with that people are the same your current post? In 2010 there was everywhere, they all want to be a management reshuffle at successful. And that is precisely The geological conditions the mines and I was appointed my credo: people want to be under which the ČSM Mine

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processing plant technology or people in the region and the in 2011. That was the keystone the conveyor belts. environment, as well as its of our success. mining and financial results. What did 2011 mean for The ČSM Mine operates ČSM Mine? What are ČSM Mine’s two plants, North and 2012 targets? South. What are their 2011 was a successful year: differences? we extracted the greatest We plan to extract 2,750,000 annual volume of coal in tonnes of coal, which means Extracted coal is brought to the 40-plus years history of production per employee per the surface at the North plant, the mine, breaking the 1981 shift must move from 4.2 where we run a processing record. Having produced tonnes to 4.6 tonnes. So there plant. Other than that, the 2,862,000 tonnes, we exceeded must be accurate planning, the position of both plants is similar. the year’s plan by 262,000 preparation of longwalls and There used to be some rivalry tonnes. However, we were new production capacities, and between the two plants, but successful in other areas people need to be motivated that has been consigned to as well. Our opening teams to mine efficiently. Favourable history. Everyone is aware of the tunnelled 18,846 metres of geological conditions are fact that all things are related mine workings, laying a sound essential if we are to meet our and that we are all working base for fulfilling this year’s objectives. We have to respect towards a common goal. Most production plan. I wish to the fact that mining is a daily of our employees, including avoid creating the impression struggle with nature, which approximately 1,100 contract that we have been chasing often behaves in ways that staff, flow flexibly between records. We extracted the oppose our intentions. So we the plants, according to needs. extra tonnes because we had must treat nature with respect, That applies to the roadheading longwalls ready and OKD which is the only way to make teams, the coal-getting needed the output. That our work hundreds of metres teams and also the employees need came to the fore after below ground successful and, in longwall equipping and the tremors that occurred above all, safe. equipment removal. operates are quite particular at the Karviná and Darkov and are certainly more Mines. It’s a case of one mine What challenges did you Looking ahead, OKD demanding than those at doing better than another face last year? says the POP 2010 Darkov. At the same time, ČSM at a certain time, but it can programme has opened Mine – due to its previously be the other way around at We eventually succeeded in more prospects for the independent position – another time. That is where making a success story out of company. What is the suffered from insufficient miners’ solidarity demonstrates one of the greatest problems, long-term future of ČSM investment and lacked its value. something that subsequently Mine? sophisticated technologies. proved decisive in us achieving It was necessary to first Is there deep-rooted our record production last We have our Environmental bridge this gap and we have rivalry between mines? year. We inherited a problem Impact Assessment approved succeeded in this respect, with the removal of material up to 2020. However, if we look mainly thanks to the POP 2010 Of course, everyone hopes via conveyor belts, which at the stages in the production programme. At the same time, to beat the other. However, didn’t meet our needs. of individual longwalls, the we’ve had only a short time this rivalry can work in In simple terms, the new last one should be exhausted in which to teach our people a positive way for improving technology employed is so in 2028. The actual date, of how to operate the most up- one’s performance. OKD is efficient that the old conveyor course, depends on numerous to-date equipment, equipment no longer perceived through belts could not keep up in factors, such as the demand that they had not encountered individual pits but as one removing the coal produced. for coal and the resulting before, be it the most modern whole, judged according to its We completed the installation annual mining production, or mining technology, the attitude towards its employees, of a new conveyor belt system geological issues that could

Open Mine 1 I 2012 7 economy interview technology

hinder our process and which attend to issues as they arise in people who have come to earn we are unable to influence. order to avoid having one of the their wages and who desire What is important is that we parties leaving the negotiating to be successful. People have have standing agreements with table, thereby blocking the a lighter step coming to a pit the Municipality of Stonava development of either the where they are successful, and the City of Karviná, under municipality or the mine. where they achieve and whose land we mine. Whatever where they feel at ease. The happens after that date is ČSM Mine close to the basic idea is quite simple: a matter for future negotiations. Polish border. Do you You come to work with the employ more Polish desire to make the ČSM Mine people than other OKD a successful one. mines? Are you attracting young 18,846 metres PPolish people make up the people into mining? of mine workings greatest proportion of our contract employees. We Yes, I have recently noticed Length tunnelled by the hire them in response to increasing numbers of young ČSM Mine opening teams, immediate needs that cannot people interested in working paving the way for record be satisfied using our own with us. It’s linked to the production. people. The persistent issue global economic insecurity. of an insufficient supply of We prefer young locksmiths, experts is a result of the demise but most of all we prioritise One thing to mention is that of mining-related vocational electricians, since all modern our mining area is immediately education in this country. That technologies demand a high adjacent to the Morcinek Mine is why I appreciate the fact that level of skill in electronics. across the border in Poland, the tradition for such education which is one of the two Polish has been rekindled here, with How often do you go development projects of our the first mining locksmiths and down the pit? parent company NWR. electricians to graduate from the secondary vocational school I try to get down every day. have a fully-fledged “house You mention Stonava in Karviná this year. We try to Sometimes I manage twice fire” on your hands. and Karviná. How would replenish our team as the need a day, while I can’t make it at you describe your arises with people who possess all on other days. Time is scarce. What has POP 2010 relationships with the previous mining experience. meant for ČSM Mine? local municipalities and Some of our employees come When underground what local residents? from traditional mining do you hear about OKD Praise in this connection families. Working with people, and management? should primarily go to Klaus- Our relationship with Stonava is I’ve realised time and time Dieter Beck, who succeeded in of great importance to us, since again that married employees My advantage in this respect obtaining sufficient finance most of our mining operations with a family are generally is that people can speak for this ambitious project take place under their territory. more responsible. They need very openly with me. I know after his appointment as We do not have such an impact financial security to provide all the foremen and when CEO. He’s opened up a new on Karviná. Our relationships for their families, which has I arrive at a longwall or a road future and shifted us into are mutually correct and we a fundamental impact on their head, they know they don’t the 21st century. In addition always strive to find solutions attitude towards work as well have to weigh their words to improving the economic beneficial for all parties. We as to occupational safety. to avoid saying something indicators, the programme also prevent conflict through I might not want to hear. On made our mine a safer place. an unambiguous agreement Can you detect the contrary, I want to hear It’s also made work easier we have reached on where a difference between about any problem that might for people as the machinery residents can build homes and employees and arise. I believe that it’s always usually operates automatically where such developments are contractors? best to address any issue in or semi-automatically. We’re not possible because our mining its early stages, while the just about to acquire a fourth operations are taking place I haven’t noticed any. flame barely flickers, before it longwall set. Our task now is under the given locality. We I consider them all as my develops into a blaze and you to prepare longwalls in a way

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that were brought in, but is a machine, even if it costs in my opinion the greatest hundreds of millions, but every contribution came from person is unique and people’s the changing attitude of health must always come first. our people. Respect for The devil is in the detail as one’s own health took on the majority of injuries stem an increasing importance. from a lapse of focus or an Everyone wants to be healthy underestimation of conditions. and earn their wages. No one We maintain workplaces wants to be on sick pay and in a state conducive to the harming themselves and their prevention of injuries. We colleagues by absence from install special grilles to prevent work. Everyone wants to enjoy slipping and footbridges their families and hobbies in crossing the conveyor belts. good health. The POP 2010 Through the foremen as well programme has had positive as by employing technology, impacts on occupational we strive to make all our safety above all because employees understand the newly implemented that safe conduct at their technologies control the roof workplace is vital for us. of the working area, which is now better covered, giving And when you are not us greater control over any working? falling material. Individual sections respond better to I’m not the type to clock his geological pressures. And we 10 or 12 hours at work, leave The ČSM Mine skip tower received a new coat of paint in 2011, turning have eliminated activities that the mine, forget about work it bright orange. Its sheen heralded a successful year for the whole mine previously carried a high level and then devote my time to of risk. The new technologies hobbies. I practically don't stop that enables us to move new to operate with comparable have also contributed to an thinking about my work, about sets into them as quickly and efficiency and output. improvement in the climatic ways to change or improve as efficiently as possible. On conditions underground. The things. When things don’t average, we maintain five to How have people space between sections and go all that well at the mine, six active longwalls. According adapted to using the the coal pillar has increased I wake up from my sleep, stare to our plan, three of them new technology? in response to the dimensions at the illuminated winding should be fitted with POP of the new complexes, tower from my bedroom 2010 sets in the course of Our people have no problem which has improved airflow. window and think about what the second quarter, and one with sophisticated technologies, Ventilation has also become to do next at work [laughs]. longwall is to be refitted. quite the contrary. They are more efficient. Longwalls have But of course, no one lives only motivated to learn to work now been furnished with new for their work. I enjoy working Has POP 2010 enabled with the new machinery; air-conditioning units that in the garden. I have two sons, you to exploit previously they want the machinery to would not fit with the previous one of who is already married in accessible reserves? be in operation as much as technology and therefore and has a son of his own, so possible during their shifts. could not have been employed. I’m a grandpa. I also enjoy The geological conditions And no one wants to hand over playing golf, hunting and are key. In technical terms, a malfunctioning or broken What measures have you angling – I even bought new we would have been able to machine at the end of a shift. implemented to improve tackle just recently. When I go exploit the reserves using the occupational safety? fishing I usually visit the local previous technology, but this How was ČSM's safety Stonávka brook. But I usually would have carried numerous performance in 2011? There is still room for have very little time for my risks due to the complicated improvement. Unless our hobbies. geological conditions and the We achieved an improvement number of injuries falls to zero, considerable depth. In addition, on 2010. This was in part we must continue looking for Marek Síbrt, we wouldn’t have been able due to the new technologies ways to improve. A machine marek.sibrt@okd.cz

Open Mine 1 I 2012 9 economy interview technology

A story about OKD’s laboratories When does coal become coking coal that can be reﬁned in coking plants, as opposed to thermal coal used in industrial applications to produce heat and power? Who decides when it becomes coking coal? And who judges whether coal meets speciﬁc customer requirements? And what qualities in coal are sought, and why?

Although the answers are quite simple, they are nevertheless O2, CO, CO2, essential for meeting customer requirements. Every mine CH4, H2 operated by NWR subsidiary Gas assays in laboratories OKD has a sophisticated focus mainly on the above laboratory with experts who key substances. evaluate the parameters of the coal produced. Moreover, OKD laboratories are equipped with the latest technology for the the laboratory of the Karviná detailed analysis of coal Mine at the Lazy plant has been accredited for fuel coal once it has passed determines the behaviour of analyses. “Quality management though highly sophisticated ash during combustion, and control is applied at each processing. grain size analyses,” explained of our four mines. It covers Špok. the entire process from The laboratory process consists preparation, through mining of two parts: fuel analysis and The gas analysis concentrates to the subsequent processing gas analysis. “In the first stage, on gases present inside the of coal, or simply until the we focus on determining the mines, and in the degasified coal leaves the premises water content, ash content, product extracted from the loaded onto railcars on its the content of volatile matter, mine and combusted in way to customers,” said Marek sulphur and the coal’s calorific cogeneration units. Assays Špok, an OKD coal processing value. We also carefully monitor are performed for the

specialist. the proportions of carbon, contents of O2, CO, CO2, CH4,

hydrogen and nitrogen; we H2 and hydrocarbons. Dust Coal samples are collected determine the swelling index content is also analysed. All at the mine for processing and dilation – parameters that OKD laboratories operate in and analysis in laboratories. determine the capacity of coal accordance with the relevant Basic qualities are determined to increase its volume during Czech ČSN standards, with in accordance with speciﬁc the coking process. Other correct practice regularly standards. The results of the analysed parameters include monitored by international analysis determine whether the ash fusion temperature, inter-laboratory analyses. the coal extracted will be which is important in particular The production processes and used as coking coal or thermal for thermal coal, since it coal quality are checked at

Open Mine 1 I 2012 10 safety reclamations responsibility

NWR KARBONIA – a safe, modern company

Last December, NWR’s Polish subsidary, To supplement our internal health and safe- NWR KARBONIA, held a ground breaking ty regime we shall be engaging a contractor ceremony to mark the start of the slope- to provide a range of mandatory health -cutting phase at the Debiensko mine de- and medical services. These will include the velopment in Czerwionka-Leszczyny. There identiﬁcation of potential occupational is much to do before production comes on illnesses, assessment of employee health stream in 2017, and NWR KARBONIA is now and suitability for work, and the analysis focused on land acquisition and preparati- of potential hazardous substances in the on, developing the infrastructure necessary workplace, The contractor will also provide for the mine to be able to operate, recrui- health-related services to employees and ting staff and the early instituting of safety trainees, including regular check-ups and procedures. ﬁrst-aid.

Employee safety is a priority for NWR, and Safety starts with risk assessment, so the we are therefore investing considerable early identification of potential risks is vital amounts of time and resource to create as to help their mitigation and management. safe a working environment as possible. Yet Investing in state-of-the-art equipment will building a safety culture in our business can ensure that our people have the best tools the processing plant. “The only be achieved by going beyond the box- they need to do their job safely and effici- information system provides -ticking application of technical and legal ently. And our stringent safety procedures us with a comprehensive requirements, and we must work diligently will help the people at NWR KARBONIA to overview of the current status to ensure that our people are aware of their create a real safety culture, where accidents of all processes and ensures responsibilities and obligations. That is why and illness are minimised. consistency of qualitative our highly qualified and experienced team parameters of both coking and of managers and supervisors will work with Tomasz Wielgo thermal coal,” Špok said. our miners to ensure a well-trained, disci- Safety Department Manager plined and rigorous safety regime. NWR KARBONIA Before coal is distributed to customers, it is sampled and NWR KARBONIA’s internal Health & Safety analysed using online coal Training system provides employees with analysers and then evaluated instruction and guidance on occupational in laboratories. "The system health and safety regulations, the manage- is configured for continuous ment of hazards and risks in the workplace, monitoring and we are able to accident procedures, first aid, safe and hy- assemble detailed information gienic working conditions and, critically, on the delivery, including their own responsibility for the safety of the name of the responsible themselves and their colleagues. employee,” added Špok.

Marek Síbrt [email protected]

Open Mine 1 I 2012 11 economy interview technology

A gallery of rare length will connect Darkov and Karviná Mines

OKD is creating a unique mine-working to form a connecting gallery running 3km from the ČSA plant of Karviná Mine to Darkov Mine. Besides its length, the project is exceptional for the cross-section proﬁle being tunnelled, the construction technologies employed, and the planned equipment and utilisation of the working. The gallery is being driven from both ends, thus requiring exceptional precision from the surveyors.

OKD's mines in the Karviná plants when we can increase area already boast several the utilisation of a modern interconnections. There are plant, capable of processing as 1700 metres links between the ČSM and much as 4.5 million tonnes of Length of the longest Darkov Mines, the Lazy and coal a year? We are therefore of five belt conveyors ČSA plants of the Karviná Mine, working towards the more in the crosscut. and the North and South plants efficient use of the preparation of the ČSM Mine. The idea of plant and its capacity,” 6.7 metres wide and 4.5 metres connecting Karviná Mine with explained Jiří Golasowski, high. The maximum dimensions Darkov Mine stems from 2008, OKD’s Deputy Chief Technical reach 8.7 metres in width and but the project did not actually Officer for mine engineering. 5.5 metres in height. “The materialise until April last year profile that is being driven with the start of tunnelling. Unique length, profile opens up a broader scope of Completion is expected near and technology opportunities for the utilisation the end of 2012. of the crosscut, whether we are The working will be unique talking about the movement Crosscut benefits for its length, with no similar of coal, materials, equipment tunnelling performed in the or people. There is also the Why has OKD embarked mining district for many years. possibility to move a whole on this ambitious project? Moreover, while tunnelling section of a central equipment What benefits will it bring? machines have historically set from the Productivity “The reasons are strategic. At been the method of choice Optimisation Programme (POP). Darkov Mine we have built the – something which was, for We don’t know yet whether most sophisticated preparation example, the case for the ČSA this will happen, but we will be plant in the mining district, plant and the crosscuts on prepared,” said Golasowski. The with a capacity for a much its 11th level – the working working will be equipped with greater amount of coal than between the ČSA plant and five conveyor belts, the longest is actually produced at the the Darkov mine will be driven of which will be a record at mine. On the other hand, by the standard method by nearly 1.8km long. the preparation plant at the boring, blasting and the use of Karviná Mine is somewhat a roadheader. The conveyor belts will be used older. Why then invest in to transport extracted material maintenance and overhauls for The crosscut has an exceptional and also people and coal. It is one of the oldest preparation average cross-section profile: a common approach in many

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The large cross-section of grids. In terms of survey works, the working and its expected the project falls within the service life of at least highest category of special 20 years places considerable surveys, with a permissible demands on the equipment. deviation of no more than Wherever the profile of the 10cm. We have been successful gallery requires it, combined in complying with that so far, supports (arched steel thanks to the superb work of supports secured by bolts, our experts and our recently “Heitzmanns”) are used, while purchased new measuring open spaces are quickly filled equipment which ensures the with a fast-setting fly ash and maximum possible accuracy,” cement mix with a resistance said Golasowski. of up to 15 MPa. The reasons for this are the same as any Alpex was selected in a tender other OKD activity: safety. mainly for its employees' high level of skill and the quality of Surveyors’ challenge the company’s references.

Since the miners of the Polish OKD has high hopes for contractor Alpex are driving this project. Following the the gallery 24/7, 168 hours completion of the tunnelling a week, from both ends, and works toward the end of therefore from different 2012, the crosscut will be mining areas, the project is kitted out with technology placing exceptional demands with a view to entering on the accuracy of the service in mid-2013. “This The crosscut that will connect the ČSA plant of Karviná Mine with the surveying. “It is not difficult crosscut is an important Darkov Mine is unique in profile, length and conveyor belt technology. It to connect a working within opportunity for us to improve is being tunnelled by experienced miners of the Polish company, Alpex a single survey grid. However, the efficiency of our coal in this case, the miners are preparation plants. What countries with developed move as a single set. Given driving the gallery in two I have described could also be mining idustries, such as the large cross-section of the different grids opposite one explained in simpler terms: it Germany – where OKD has gallery, working platforms are another and from two separate is about lowering costs,” said chiefly looked for inspiration – used for safety reasons. “The mining areas. This calls for an Golasowski. since it significantly reduces project is highly innovative in interconnecting survey, the transport time. A similar mode many respects. And as such, it fixing of basic survey points Marek Síbrt, of transport, until recently calls for a change in people’s and the unification of both [email protected] rare in OKD mines, is employed thinking. The miners were with success, for example, in initially rather conservative, the Paskov Mine. Transport will being used to deep-rooted About the author take place in both directions, working procedures. For requiring a certain size of example, the use of platforms Marek Síbrt graduated from the Faculty of conveyor belt. was something entirely new Philosophy, University of Ostrava. He has and they showed some mistrust worked as a media analyst for InnoVatio A change in thinking towards the approach. Now, and Media Tenor, with responsibility for they swear by them since communication audits for key clients (České For the first time, the roadway they have come to realise that dráhy [Czech Railways], Vodafone, T-Mobile). is being created with a double- they make work safer and He has implemented projects for monitoring shielded tunnel-boring machine more comfortable. Everything adherence to qualitative standards and from Deilmann-Haniel. The is interconnected in mining the legal regulations governing the work excavated material is removed and non-conventional work of journalists for Česká televize (Czech Television), Český rozhlas using a drag conveyor combined demands non-conventional (Czech Radio), TV Nova and STV (Slovak Television). Marek has with a crushing machine, ways of achieving the desired taught Media Communication and Sociology at several universities. while both parts operate and result,” said Golasowski. At OKD, he is PR advisor and project manager.

Open Mine 1 I 2012 13 economy interview technology

We reﬁne black gold: we produce coke

Travelling by car, train or bicycle, playing a game of tennis or golf, or racing down a ski slope on a pair of modern carbon ﬁbre skis – without coal, none of these things would be possible. Few people realise that when coal is coked the process creates a range of by-products that are used in the manufacture of various everyday items. How exactly is coke created from coal? How, where and when did people start converting coal into coke? And would it be possible to substitute coke and its chemical by-products in the steel, foundry or chemical industries with some other raw material?

The first patent for the were being made, with steam locomotives. That is why "coking" of coal was granted in various degrees of success, to coke ovens were built next England in 1568, and the first produce coke in kilns for the to every important railway coking licence, issued in 1590, production of iron. station, with a total of 18 in described the purpose of coking the Ostrava region by 1850. as “to purify pit coal and free it The dawn of 19th century Coke constituted 42 percent of from its offensive smell.” That was marked by a dynamic the overall amount of fuel for principle remains, and coking expansion of coal mining and locomotives. In time the use of can be simply characterised iron production. In 1830 in coke was gradually replaced by as ridding coal of its volatile the town of Vitkovice (now coal. compounds. "The resulting coke a district part of Ostrava) consists of carbon, a measure construction began on the first All operations involving coke of ash material and a maximum blast furnace to use coke both ovens during that period were one percent of residual volatile as a fuel and as a reducing conducted by hand and were compounds,” explained Petr agent. In 1843 the Rothschild very physically demanding. The Mokroš, Deputy Director of family became the owners ovens were built from hard- Production at NWR’s coking of the Vítkovice ironworks, baked brick, while the parts subsidiary, OKK Koksovny (OKK). with the purchase agreement directly exposed to the heat citing 26 English-type coke were made from refractory A brief history of coking in ovens (one being comparable materials (firebrick). the Czech lands to just the coking chamber of a modern-day coke oven). Historical records show that From the 16th century Vítkovice steelworks had shortages of firewood for In the Ostrava part of the 64 Gobiet-type coke ovens use in iron mills became coalfield, coke ovens were (horizontal flue ovens with commonplace across Europe. usually situated next to the conduits in the dividing walls The desulphurising of coal mines. The construction of the for the exhaust of gases) in kilns originated in the Emperor Ferdinand Northern producing more than 22,600 Czech lands under the reign Railway, of which the main tonnes of coke annually. There of Rudolph II at the turn of stretch between Vienna and were also coke ovens located the 16th and 17th centuries. Ostrava began operating in within the coalfield near mines However, the Thirty Years War 1847, was a key influence such as the Anselm, Karlina, cut short most of the early in the development of the Hlubina and Terezie mines. experiments in this field of local metallurgy and coking economic activity. By the end industries. For a time, coke “The Ostrava-Karvina coal of the 18th century, attempts was the fuel of choice for field was the coke production

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Once coke is expelled from the coking chamber, it is quenched with water to cool to approximately 100 degrees centigrade before being moved to a coke ramp where it continues to cool and most of the water evaporates base for the Austro-Hungarian plant became the first such more than 830 coke ovens that question of the kind of strict Empire. We can say that it also facility to meet the entire in 1900 produced more than production controls to limit ranks as such a base for this growing consumption of local 1.1 million tonnes of coke. the impact on the environment country today: the only coke blast furnaces. Over 430,000 that we are now familiar with,” ovens in the Czech Republic tonnes of coke were produced Chemical products released said Mokroš. are in the Moravian-Silesian in the coal district that year. in the coking process, such as Region. Apart from ourselves, coal tar, ammonium sulphate Coke demand grew rapidly: the steel giants ArcelorMittal Coke in the and benzene, were gradually in 1917 the coking plants of and Třinecké železárny operate Austro-Hungarian Empire harnessed and put to use. the Ostrava-Karvina coal field coking plants in the region, “The volatile compounds produced more than 2.5 million but they use the coke they With the further development released in the course of the tonnes of coal in over two produce as a reducing agent of coking facilities, the coking process are given off thousand coking chambers, for their own blast furnaces,” proportion of coal destined for in the form of gases. Initially while the coking plants in the said Mokroš. region employed more than 4,300 workers. In 1885 Vítkovice Read about the new coking steelworks' coking plants The predecessor of the present were modernised, making battery of OKK Koksovny in Svoboda coking plant was built it possible to capture the in 1908 and was acquired in valuable chemical by-products Open Mine 2/2011 1911 by the Emperor Ferdinand that arise in the coking Northern Railway. In 1917 it process. At the time, coke produced 505,500 tonnes of production in the Ostrava- conversion to coke increased, the compounds were simply coke. It is this Svoboda coking Karvina coalfield supplied rising from 13 percent in emitted into the air. Only plant, now owned by OKK, 75 percent of demand in the 1882 to 38 percent in 1917. at the turn of the 19th and which is currently the only Austro-Hungarian Empire. At the turn of the 19th and 20th centuries did the utilisation independent coke producer in Moreover, thanks to the 20th centuries the Ostrava- of these chemical by-products the Czech Republic, selling its Vítkovice upgrade, a coking Karvina mine district boasted start. At the time there was no coke to external customers.

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down. At 350–400°C the coal enters a plastic state in which it practically liquefies, losing gases at an intensive rate. At temperatures of 450–500°C the mass re-solidifies, turning into semi-coke. At temperatures above 500°C the degasification enters its final stage, with the coal mass contracting and coke-formation setting in. The entire process is completed the moment that the plastic layers with a thickness of 10-30mm, which have formed adjacent to the oven's walls, move towards the centre of the oven where these layers eventually meet. The temperature at the centre of the oven reaches approximately 950°C, while it can reach up to 1,200°C at the walls. The coking process takes The central element of the COP 2010 programme is the new coking battery at the Svoboda coking plant in Ostrava, which meets the most stringent environmental regulations and has been producing foundry coke 32–38 hours. since it was brought into commission The coke is finally pushed out Different kinds of coal, of high-quality coke often Each chamber in the coking of the coking battery, quenched better quality coke mentioned by experts is five plant holds 20 tonnes of coal by water spray and cooled to six different kinds of coal,” mixture. During the coking to below 100°C, after which It is impossible to produce explained Mokroš. process, 20–25 percent of the it is moved to a wharf for high-quality coke from one coal's mass finds its way into 20 minutes of further cooling. grade of coal. “In the coke Dependent on the properties the chemical section of the Chunks of coke larger than industry the rule of indirect of the individual types of coal, plant – mainly as coke oven 70mm pass through a screening proportion applies. For a mix is composed and is then gas, which is subsequently station and loaded onto railway example, coke of a higher ground to a point where 90 reused as the fuel that powers cars and sent to customers. grade is produced out of eight percent of the grains are less the process. At the end of the Smaller pieces are sent to a different kinds of average- than 3 mm in size. To achieve coking process, 14-16 tonnes fine screening station and, quality coal rather than out this, OKK deploys hammer of coke result from the original after classification, are stored of three kinds of premium- crushers with hammers freely 20 tonnes of coal. in separate containers before quality coal with excellent rotating on a shaft. The coal is being delivered to customers. parameters. Coal has variable pulverised and only properly “The technically clean coke properties and is never the ground grains seep through the oven gas, also known as coal In the rough screening station, same even if it comes from mesh and out of the machine. gas, used to be the first kind coke is separated on screen different parts of the same In order to ensure the coke's of gas people turned to for grates or vibrating screens. mine. We, on the other hand, constant quality the coal illumination and heating. In Smaller grains are dispatched require the quality of coke to mixture is homogenised prior to the former Czechoslovakia it to the fine screening station for be stable. We therefore need its transfer to the coal towers, was as late as the 1980s before separation into breeze coke as many different types of where the mix is prepared for coke oven gas was phased out (0–10mm), pea coke (10–20mm), coal with the right parameters the coking process. completely from all households nut coke II (20–40mm), nut as possible. It is thus of great and replaced by natural gas,” coke I (40–60mm) and heating advantage for us that OKD The coal mix is tamped down to recalled Mokroš. coke (60–90mm). has four separate mines with a density of 1,100 kg per cubic coking coal. That is why we metre before it is pushed into Coking takes place at Foundry coke: added take most of our coal from the coking chamber. Then the a temperature of 1,100–1,200°C. value here and only need to import chamber is hermetically sealed The walls in the coking a minimum amount from and connected to the coking chamber gradually heat More than 500 million tonnes the US or Poland. The critical plant's chemical section, and up the coal mass, which at of coke are produced annually threshold for the production the coking process begins. 250–300°C starts to break in the world, 99 percent

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of which is blast furnace buyers of foundry coke use to fuel heating plants. Where (metallurgical) coke. The simple about 50,000 tonnes a year, so OKK is concerned this involves OKK Koksovny principle underlying the blast it would not be cost-effective the neighbouring heating produces several furnace has in the course of for a foundry to build its own installation operated by Dalkia time proven indispensable coke ovens. Česká republike a.s., which uses types of coke for the production of crude coke oven gas in supplying heat iron in terms of both cost and Historically, coke has been to Ostrava households. Foundry coke environmental impact. That is transported to the customer by why the blast furnace method rail. However, in the course of Another important by- Foundry coke is used in the will preserve its dominant time many smaller companies product is crude coal-tar, production of cast iron and position for the foreseeable have abandoned their factory of which OKK produces insulating materials. It is typical future. rail sidings so nowadays, in around 25,000 tonnes for its high strength, lumpiness most cases, transport is by annually. Through subsequent and abrasion resistance. OKK, however, specialises in the road. A vast proportion of the distillation, a variety of oils Grain size: <100 mm production of foundry coke, of foundry coke produced by OKK are recovered from coal tar, which 1.3–1.5 million tonnes is exported, particularly to as well as solid coal tar pitch 70 –130 mm a year is used in Europe. With Germany. that is used in steel and 60 – 90 mm an output covering one third of aluminium production. Soot European demand for foundry A factory within a factory (carbon black) that is used coke, OKK is the continent's in tyre manufacturing also Blast-furnace coke biggest producer. About 20–30 percent of the has its origins in coal-tar. Blast-furnace coke is used as total mass of the coal used as Crude benzene is likewise an a reducing agent and a heat Mmetallurgical coke is raw material for coking consists important coking by-product source in blast furnaces, and as distinguished from foundry of volatile compounds. These from which, after distillation, a bearing and filling material coke by, among other things, are further processed in the there is a recovery of pure ensuring gas circulation in the grain-size. Whereas the size chemical part of the coking benzene, one of the main blast furnace charge. of a lump of metallurgical plant and are subsequently components used in the coke stops at 90mm, the used in a variety of industrial chemical industry. When crude Grain size: 40 – 90 mm size of foundry coke starts sectors. coke oven gas is purified, 25 –90 mm with lumps of at least ammonia is recovered which 100mm. Metallurgical coke The most important by- subsequently ends up in is, moreover, produced under product of the processing of ammonium sulphate, used as Heating coke different conditions (a higher coal is gas that is purified step a fertiliser in agriculture. temperature) and from other by step after being released An environmentally friendly kinds of coal, usually with from the coal and in the Although we may not realise fuel due to low contents of a higher content of volatile process is fractionated to it, every day we come across noxious combustion products. compounds. That is why lumps recover ammonia, benzene, objects that could only have Heating blend: < 40 mm of this type of coke fail to make hydrosulphate and other come about thanks to coal it to sizes as large as those fractions. Thus, the technically and coke. There is currently Nut 1: 40 – 60 mm associated with foundry coke. clean coke oven gas does not no alternative to coal. What Nut 2: 20 – 40 mm burden the environment when is more, coke production is The function of metallurgical burned. OKK's operations have no longer the dirty job it coke as a fuel is diminishing. been heavily desulphurised once was. The new coking Technological coke This coke is primarily used in to a value of 50mg of battery in the Svoboda coking blast furnaces as a reducing hydrosulphate per cubic metre. plant, which received its final Pea: 10 – 20 mm agent and it also secures gas “This is a value 10 times lower building approval in spring Dust: 0 – 10 mm permeability across the entire than that set by law. More 2011, fulfils the most stringent height of the blast furnace. than 50 percent of clean coke environmental requirements. Foundry coke has a higher real oven gas consists of hydrogen The levels of emitted agents Chemical products of the density, a lower porosity and which turns into water vapour are continuously and directly coking process acts as a fuel which, when it when burned,” said Mokroš. monitored within the coking Coke-oven gas, tar, benzole, touches a piece of cast iron, When the gas is burned this battery itself, within the ammonium sulphate, solid and should not break up. predominately results in water surrounding area and also in liquid sulphur. vapour and CO2. the area surrounding the entire It is generally the case that OKK complex. foundry coke fetches a higher Coke oven gas is mainly price on the market than used to heat the coke oven Marek Síbrt, metallurgical coke. The largest batteries; any surplus is used [email protected]

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The Chinese Coal Industry

China’s relentless economic growth over the past 20 years and the dramatic impact this has had on almost every sphere of international trade and manufacturing has also been the driving force behind the changing dynamics of the international coal industry. This inﬂuence has reached such an extent that all the major mining companies of the world now almost exclusively plan their growth and expansion based on Chinese economic forecasts.

China’s relentless economic high, with over 2,400 deaths Today, the country accounts for growth over the past 20 years reported in 2010 alone. In an nearly one half of global coal and the dramatic impact attempt to further improve consumption, which is more this has had on almost every safety standards and overall than twice that of the demand sphere of international trade efficiency, the Chinese for oil equivalent in the United and manufacturing has also government has pursued States. Thus through sheer size, been the driving force behind a plan to systematically any imbalance between Chinese the changing dynamics of the reduce the number of smaller production and demand has the international coal industry. coalmines. According to ability to have a large impact This influence has reached official statements, 1,693 on global coal trade with even such an extent that all the small-scale colliers with a total a small mismatch between major mining companies capacity of some 155 Mt domestic supply and demand of the world now almost have been closed down to causing powerful worldwide exclusively plan their growth date. As a result, the number effects on coal prices, trade and expansion based on of small-scale mines with flows and utilisation rates of Chinese economic forecasts. an annual production of less coal supply chains. than 300,000 tonnes has been The country has vast resources reduced to below 10,000. Such an imbalance was of coal from which it reached in 2009 when China produces a colossal 3.1 billion Along with production, China switched from being a net tonnes (2010), far exceeding is the largest coal consumer in coal exporter to being the production from any other the world by far, growing at second largest net importer country. For instance, China’s a tremendous pace over the worldwide. Imports totalled share in global coal production last ten years. Between 2005 177 Mt in 2010 and are is almost four times that of and 2010 alone, total Chinese expected to reach a similar Saudi Arabia’s production of coal demand jumped by 50%, level for 2011. This increased oil. The major coalfields are fuelled by surging use in power Chinese import demand located in the remote north generation and heavy industry. has been primarily met by and northwest of the country with long transportation Steel Production routes required to bring the coal to the major cities 700 and industrial regions along 600 Europe the coast. Typically, more China 500 than 60% of Chinese coal USA production is transported over 400 Tonnes

550 km. 300

200 Although there are been Million 100 marked improvements in recent years the number of 0 fatalities in Chinese coal 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 mines has traditionally very Source: World Steel Association

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well as an already congested national rail system. 0 –1,000 Mt Russia 1,000 –10,000 Mt 10,000 –50,000 Mt In the coming years, the 50,000 –100,000 Mt HEILONGJIANG Chinese coal industry will face 100,000 –250,000 Mt a number of challenges in Mongolia NEI meeting its growing demand MONGOL JILIN (INNER MONGOLIA) for coal. Development of

LIAONING new mines and further North BEIJING Korea consolidation of existing SIN JIANG operations will be required to TIANJIN South Pakistan HEBEI Korea bring mining practices up to SHANXI NINGXIA SHANDONG Yellow Sea international standards and QINGHAI to further improve safety for GANSU JIANGSU SHAANXI HENAN workers. Along with this, the XIZANG ANHUI congested domestic transport (TIBET) HUNEI infrastructure will also require SICHAN CHONGOING ZHEJIANG expansion and improvements Nepal East China JIANGXI Sea Bhutan HUNAN to ship additional coal from GUIZHOU FUJIAN production centres to demand

India Bangladesh Taiwan hubs. However, even with a YUNNAN GUANGDONG GUANGXI major expansion of domestic production it is expected that Bay of Bengal Barma Vietnam Chinese demand for seaborne Laos 500 Kilometers HAINAN South China imports will continue to rise, Thailand Sea Philippines 500 Miles furthering the inﬂuence that the country has on China's key coal mining region is in the north of the country. Coal has to be shipped to the industrial areas along the coast via an overloaded railway network international coal markets.

Indonesia and Australia as The vast majority of the coal to keep up with its rapid Stephen Hough, well as to a certain extent consumed in China is used in industrialisation. Domestic market analyst by South Africa, Russia and electricity generation since coking coal is considered to New World Resources [email protected] Mongolia. Since 2010, even 80% of the electricity produced be of lower quality leading to Colombian steam coal has in the country stems from coal- ever more reliance on imports been shipped to Chinese ports, fired plants. However, there is while the country’s steel mills Stephen Hough graduated as Asian suppliers could not also a big demand for coking require higher quality coking from University College keep up with rising Chinese coal as China now produces coal as they move higher up Dublin, Ireland, and the demand. over half of the world’s steel the value chain. The majority Rotterdam School of of coking coal imports come Management, Erasmus from Australia and Mongolia University, the Netherlands, Chinese Net Coking Coal Imports with the latter expected majoring in economics, 60 to significantly increase finance and business 51.9 50 48.3 46.2 production in the near future administration. He has 40 as new investments and previously worked at the 32.5 30 infrastructure projects come Bank of Scotland (Ireland) 20 on line. The long distances and as a consultant for Tonnes

between the Chinese mines Capgemini in Utrecht, 10 1.0 1.9 0.4 3.7 5.6 from the coastal location the Netherlands. He now -16.1 -10.5 Million 0 of most steel mills is also a works as a Market Analyst -10 factor for increasing seaborne for New World Resources, -20 imports since shipping costs in Amsterdam, the 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 from Australia are often lower Netherlands. Source: AME than the overland rail costs as

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Does Europe need its own mineral resources policy?

In November 2008, European Commission Vice-president Günter Verheugen presented “The Raw Materials Initiative” document, which stressed how imperative it is for European industry to have access to mineral resources.

security. Central European Balkans, it is not in the countries enjoy an advantage interests of Europe to have over many western European these countries inhibit their countries in that they have extractive industries. Potential exercised the strategy – now environmental issues should considered incorrect – that be resolved by providing entails an inhibition of the regions concerned with domestic production and an environmentally friendly unquestioning reliance on technologies – not by closing imports of raw materials from production sites. Any future non-European territories for reinforcement of Europe's only one or two decades. resource security would Profound changes on the be inconceivable without international markets for the Balkans, as its mineral raw materials, brought about resources are above the by growth in China, India, European average. Indonesia, Brazil, Vietnam and elsewhere, necessitate Equally crucial is the The headquarters of the European Commission in Brussels a reassessment of strategy. third pillar of Verheugen’s initiative. This calls on It was Europe’s belated The Raw Materials Initiative Ofﬁcial support for such member states to enforce response to raw materials has three pillars: a reassessment followed the the economic utilisation diplomacy, exercised with publishing of Verheugen’s of mineral commodities, to sophistication and success by 1) Maximum utilisation of initiative, which is now being support material-efﬁcient Japan and South Korea for domestic resources, including developed to the identify technologies, and to support 40 years. China, too, has set the thorough surveying of commodities of strategic value the recycling and the reuse of off on this path. European minerals potential; for the European Union. secondary raw materials.

Although there is some 2) Initiation of raw materials In line with the second The creation of the inspirational mistrust among Czech diplomacy, i.e. establishing pillar, EU members should Raw Materials Initiative is society towards “European” mutually beneficial economic pursue active raw materials an impulse, along with the initiatives, the new strategy relations with countries diplomacy, making use of extensive system changes should be taken seriously. It possessing minerals and which the opportunities afforded occurring on the global raw is a progressive document are as yet “unoccupied” by by historical links to some materials market, for the that identifies our limits competing global players; countries. In the case of the updating of the raw materials and weaknesses in securing Czech Republic, this would policy of the Czech Republic, a sufficient supply of raw 3) Adoption of technologies involve the Balkans, countries which should incorporate, materials. It does not cover that are economic in material of the former Soviet Union, in accordance with a policy fuels, and deals mainly with consumption, recycling, Mongolia, Vietnam, Cambodia, statement from the Czech metals and non-ore minerals; and natural resources Laos, and some African and Government, the key principles Europe imports more than management. Latin American countries. of the European strategy. 80 percent of the nonferrous An ideal platform for this metals it consumes, Maximum use of domestic “soft diplomacy” could be Mgr. Pavel Kavina, Ph.D. which could have security resources is the best way of development and cooperation Ministry of Industry and Trade of implications. improving resource and energy projects. Regarding the the Czech Republic

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Water: indispensable for life, and for hard coal mining

Deep mining for hard coal is demanding in terms of water con- particles from the tailings in sumption. OKD acknowledges this and realises its responsibility separation cyclones, baths or ﬁlter presses,” said Filipcová. for the quality of water released back into the environment. After separation, the used water is cleaned in magnetic separators that remove the magnetite used to create the heavy suspension that separates coal and waste rock. This water is then either reused in the preparation process, or passes through a system of settling tanks near the mine.

“Every mine is supplemented with a system of settling tanks, or an ‘industrial water treatment plant’, where tailings and middlings are suspended in water settled at the bottom of the tanks,” said Filipcová. Flotation agents are added to water from the preparation plants to elicit the aggregation of small particles OKD values water: it seeks to reduce water consumption during coal mining, and recycles the water it does use for maximum environmental and economic benefit carried in the water and thus facilitate their quicker OKD releases several types of for coal washing in the All OKD mines include sedimentation, and cleaning, water into the environment preparation plants or for processing plants, where coal of the water. and watercourses, just as it washing off fly ash in the passes through a refinement consumes water from several mines. After processing in process before loading onto There are always several settling sources. “For our operations, our own water treatment railcars for delivery. “Water is tanks filling with wastewater we take untreated water plants they become suitable indispensable in coal washing, from the mines. This recycled from reservoirs and larger for showering and air- separation of coal into fine water is then ready to use again watercourses, and potable conditioning in the mines,” and rough fractions, or in the for coal washing. “This has both water from the mains,” said said Filipcová. separation of the finest coal economic and environmental Irena Filipcová, OKD's water benefits. We do not have to management specialist. pay for the water required in Percentage volume of recovered (recycled) water at OKD technological processes and To collect untreated surface 60 we help the environment by water, OKD has built recycling as much water as we 50 a pumping station beneath can,” said Filipcová. the dam of the Těrlická 40 reservoir, where water is piped Excess water from the settling 30 into accumulation tanks and tanks is released, for a fee, into 49.6 % 20 48.4 % then distributed via 50km of 38.5 % 41.0 % the surrounding watercourses pipes to mines in the Karviná as wastewater. 10 region. “These sources of grade one technological water 0 Marek Síbrt, are used either untreated 2008 2009 2010 2011 [email protected]

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Who is a stakeholder? We are inﬂuenced by many people. And in turn, we have an inﬂuence on others. So- metimes positive, at other times negative, sometimes directly and sometimes indirect- ly. Nobody is an island. We live in a permanent and dynamic relationship with others. And what holds true for each of us, also holds true for the world of business.

“We cannot forget our sup- where structural unemploy- pliers and customers. And ment is relatively high. schools, of course, because we are engaged in the renaissan- Safety first ce of mining education. Next year it will be possible to stu- Coal mining is often associated dy mining as a high-school with tough working conditi- graduation major and we re- ons, and NWR understands the gularly cooperate on research importance of occupational projects of the VŠB-Technical safety. University of Ostrava, a traditional seedbed for our mine “Health and safety are our top engineers,” said Rak. priorities. Improving safety is the first consideration in all we Rrelationships change over do, and the number of injuries time, and NWR acknowledges in the mines has decreased NWR actively communicates with local communities in areas where it the importance of maintaining over the long term. We have operates or plans to expand its operations a dialogue with all stakeholer invested half a billion crowns groups. Communication with in new protective gear for our NWR's subsidiaries OKD and Region, almost every local some groups takes place local- miners. We motivate staff re- OKK Koksovny are based in family has a member who ly (municipalities), with others sponsibility and behaviour, and the Moravian-Silesian Region. knows the coal industry. That on the national level (mining run regular campaigns. And The Debiensko and Morcinek makes important stakeholders authority, ministries) and with under the POP 2010 initiati- development projects of NWR of those living nearby NWR yet others on the international ve [Productivity Optimisation Karbonia have their impact on operations. level (investors). Programme 2010], the mines the lives of people in southern were equipped with techno- Poland. “Like every business, Another key group, naturally, Follow the money... logy that, besides boosting NWR is in permanent contact are the employees, of whom efficiency, contributed sub- with those influenced by its there are more than 17,000. What most concerns NWR stantially to a safer working activities and those that effect People are NWR’s most valua- stakeholders? An analysis environment,” said Rak. the company. This is even more ble asset, so employee care is clearly showed that they important when you take into a priority. are most concerned about NWR's dialogue with stakehol- account that OKD is the big- the economic well-being of ders covers employee rights, gest employer in the region, “And as NWR is listed on three NWR. “This impacts virtually local residents' rights, energy providing work to more than stock exchanges, stakeholders all groups, and gives them all consumption, the environment, 17,000 people,” said Tomáš include our shareholders and pause for thought. We are business ethics and community Rak, NWR’s Manager for Sus- the analysts who monitor our talking about wages, donati- support, which is provided via tainable Development. business,” said Rak. ons to organisations and mu- the OKD Foundation. nicipalities, and taxes that go A stakeholder is… Coal mining and coke pro- to state and local budgets,” A comprehensive report on duction are regulated said Rak. NWR's stakeholder activities, The term 'stakeholder' has industries, so important sta- NWR 2011 Sustainable Deve- been adopted into the Czech keholders include state and Economic downturns can lopment Report, will be pub- language, and it refers to all local administrative bodies, create anxieties, especially in lished in the second quarter of those with an interest, or a such as the Mining Authority, the Moravian-Silesian Region, this year. stake, in a company. With a the minsitries of industry and which has seen a decline in 200 year tradition of coal mi- environment, and local muni- heavy industry since the No- Marek Síbrt, ning in the Moravian-Silesia cipalities. vember 1989 revolution and [email protected]

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OKD Foundation non-proﬁt project awards

For the third time, the OKD Foundation has recognised the best of the projects that it has supported with special awards. Winners included organisations that run sheltered workshops for the disabled, that help youngsters from children’s homes to become independent adults, and that organise music festivals.

OKD Foundation Awards 2011

Programme For Health Organisation: Letní dům (Summer House), Prague Project: Supporting young people as they move from children’s homes to independent living

Programme For Joy Organisation: Initiative Dokořán (Wide Open), Karviná Project: Festival Dokořán – work for some, entertainment for many

Programme For the Future Organisation: St Alexander Charity, Ostrava Project: Use of the protected building Administrativní budova During a ceremony, representatives of the awarded organisations received their prizes from representatives (Administrative Building) for of the OKD Foundation and its founder – OKD social causes

Media Achievement of the Year to bring happiness and help to to Dalibor Dostál, an editor at Programme For Europe went to Dalibor Dostál for his the less fortunate,” said Petra the weekly magazine Profit, Organisation: Maternal and series of articles on corporate Mašínová, head of Corporate for his unique series mapping family centre Krůček (Small foundations. Personality of Communications at NWR and the activities of corporate step), Svitavy the Year was won by Česlav Chair of the Board of the OKD foundations. The inaugral Project: Preparation of Santarius, who 20 years ago Foundation. award for Positive Reporting the 'Partnership between founded a humanitarian went to Ivana Karásková, Generations' project organisation and who this The 2011 awards were very a reporter with national daily year enters his well-earned diverse, thanks to votes newspaper MF Dnes. Media Achievement of the Year retirement. from the public. “Non- Awarded to: Dalibor Dostál profit organisations and Personality of the Year went Achievement: A series of articles Established nearly four years municipalities organise various to Česlav Santarius, who 20 on the significance of corporate ago, the OKD Foundation is activities for people, so this years ago began building foundations for Czech society the largest private corporate year we asked the public to from scratch a charitable foundation in the Czech take part in naming the best of organisation called Silesian Positive Report of the Year Republic. “Money received them,” said Jiří Suchánek, OKD Diakonia. This year, at the Awarded to: Ivana Karásková, from OKD and other sponsors Foundation Director. time of his retirement, the MF DNES is transformed into good organisation was providing 95 Report: Children’s magazine deeds by various non-profit A special feature of the OKD social services to more than which had lost financial subsidies but received support organisations operating in Foundation awards is the 6,000 beneficiaries. It has from dozens of sponsors our region and elsewhere in recognition given to media become a role model for similar the country. I consider it very which report on non-profit organisations. Personality of the Year important to recognise them organisations and corporate Awarded to: Česlav Santarius since the people involved work social responsibility. Media Vladislav Sobol, for little or no remuneration Achievement of the Year went [email protected]

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