New World Resources Magazine

interview 4–7 Jerzy Wacław Klinowski, Vice‑Chairman of the Board of Directors of NWR Karbonia

technology 8 –9 An online look underground

responsibility 12–15 NWR: Quality of life No. 2 2011 is the first priority Editorial

Dear readers, the future, mapping that which awaits our None of us is a solitary island in a vast Company in the period to come. ocean; we do not live our lives solely for ourselves. We are part of society and the Internal procedures have been put in place to environment we live in. And that which ensure that the next Report on the Company’s applies to each individual’s life holds true sustainable development complies with the in the corporate sphere too. Corporate standards of the internationally recognised responsibility and sustainable development methodology of the Global Reporting Initiative have therefore become an integral part (GRI), which is based on specific gaugeable of the business strategy of companies objectives and reflects to what degree these throughout the advanced world. objectives were met in the given year. The first Report will be published next year. We at NWR are fully aware of our responsibility towards the quality of life We are aware of the fact that social of the people in the environment in which responsibility is not about words but actual we operate. And owing to the fact that the deeds. Even a seemingly insignificant act can scope and significance of our Company’s help improve the quality of a person’s life. activities and projects in this area have Nevertheless, dear readers, please take the increased to such an extent as to far time to familiarise yourselves in this issue of exceed just a single chapter of the Annual Open Mine with what we have managed to Report, we have decided to describe them achieve in this area, and the challenges that in detail in a separate publication for the lie ahead. very first time. This publication not only presents NWR’s activities pertaining to social Petra Mašínová responsibility in 2010, it also looks into Corporate Communications Director, NWR

Open Mine No. 2 I 2011 Published by: New World Resources N. V. Jachthavenweg 109h 1081 KM Amsterdam, the Netherlands Tel.: +31 20 570 2200 Fax: +31 20 570 2222 E-mail: [email protected] Web: www.newworldresources.eu

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: 10. 3. 2011

All rights reserved. The reproduction and use of all images contained within this publication without the written approval of NWR is forbidden. The logos of companies, products and services introduced in this publication are the business trademarks of the respective firms. Questions, remarks and article ideas can be sent to: [email protected]. An electronic version of the magazine including active links is accessible on the Company website at: http://www.newworldresources.eu/openmine. 2–3 “We expect a gradual increase in production over the course of the year.”

4–7 8–9

“We could start “The system will s t e p s

building the markedly simplify t o w a r d s c o r p o r a t e social responsibility mine as soon as the job of the 2 0 1 0 tomorrow.” production dispatchers.”

10–11 12–15 “There is a demand “After several for our coke due to years of work its quality.” we can see the successful projects behind us.”

Content

2–3 economy 17 economy Q1 2011 results: On track to Dynamics of international price deliver full year targets negotiations

4–7 interview 18–19 economy We could open the mine today Vietnam – the world‘s largest anthracite exporter 8–9 technology An online look underground 20 responsibility Heřmánek Halfway house in Karviná 10–11 technology wins the Award for Quality New coking battery successfully completes trials and enters 20 responsibility production Record interest in scholarship applications 12–15 responsibility NWR: Quality of life 21 responsibility is the first priority OKD Foundation supported the “Papua” fish and reptile exhibition 16–17 reclamations A lake instead of a former mine 21 responsibility OKD Foundation with a new director economy interview technology

Q1 2011 results: On track to deliver full year targets

On May 18 2011, NWR announced its results for the first quarter of 2011. Strong growth in revenues and profits was driven by an improved economic environment in the CEE region as well as positive trends in global coal pricing. Steel production in Central and Eastern Europe in Q1 2011 was 7% higher than last year. As previously announced, in Q1 NWR expects to extract 11Mt of coal and produce 800kt of coke this year, and after Q1 2011 we remain on track to meet our targets.

Mike Salamon, Chairman of NWR sheds light on the operational profile 60 : 40 throughout the year and NWR intends to return the positive impact of to this product mix increased production on ratio of coking and NWR’s unit costs: “As a result thermal coal in 2012. of our continued efforts to increase development works underground, we expect production to ramp up progressively through the year. This will also continue to improve our coal sales mix, The London Stock Exchange building which we expect to consist of 50% of coking coal and 50% of thermal coal for the full allows NWR to follow the favourable regional dynamics, year 2011, and should also global pricing trends more as coking coal supply is benefit mining unit cash costs closely and benefit indirectly restricted against increased later in the year. We further from the price influence of demand mainly driven by expect to increase production growth markets in Asia and Central Europe’s automobile of coking coal towards the other emerging markets. Mike industry.” end of 2011 with a view to Salamon said: “The effects returning to our traditional of this decision can already Safety 60/40 coking coal to thermal be seen in our negotiated coal sales mix in 2012.” Q2 2011 average coking coal NWR continues to improve price of EUR 215 per tonne, its Lost Time Injury Frequency Management’s decision to which implies a premium to Rate, a widely used metric adopt quarterly pricing for global benchmark prices. We in the mining industry, with NWR’s coking coal sales believe, this premium is due to mining LTIFR down 3% in Q1

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NWR continues to work on Delisting is likely to reduce positioned to take advantage preparation of the site and significantly the liquidity and of the current favourable is ready to break ground by marketability of the shares in regional market conditions. summer 2011, subject to the respect of which the Offer has Demand for coking coal and finalisation of the regulatory not been accepted. coke remains strong, with local and licensing process. The steel producers and foundries Board of Directors is scheduled Outlook still ramping up or running to meet in Poland in June for close to full capacity. final decision-making purposes Looking ahead, we remain regarding the Dębieńsko positive about Central Europe Radek Němeček, project. and believe we are well [email protected]

In 2011, NWR expects to invest about EUR 50 million to its Dębieńsko project.

Reincorporating in the United Kingdom Q1 2011 highlights The process of reincorporation in the United Kingdom

was started with the view Revenues of EUR 385 million, to extend our access to up 17% international capital markets via securing FTSE UK index EBITDA of EUR 82 million, inclusion. up 42% On 5 May 2011, NWR announced the successful Profit before tax of outcome of its recommended share Offer for all of the ‘A’ EUR 11 million ordinary shares of NWR N.V., paving the way for FTSE UK Cash flow from operations of Series Index inclusion later EUR 119 million, up 342% this summer. This result underlines the confidence of Net debt reduced by 2011, which ranks us among investors in our strategy and 4% the best-in-class world our recommended share Offer to EUR 307 million miners. This improvement remains open until further is attributable to NWR’s notice. We remind our existing Safety metric improved investment initiatives as well A Shareholders who have not as sustained training of its yet accepted the Offer, that by 3% workforce. we have given notice of our intention to cancel our NWR Dębieńsko N.V. share listings on the London, Prague and Warsaw NWR has recently completed Stock Exchanges. The last the first phase of the detailed day‘s trading in the NWR N.V. feasibility study for opening shares on the LSE and the PSE the Dębieńsko mine in Poland. is expected to be 3 June 2011.

Open Mine 2 I 2011 3 economy interview technology

We could open the mine today An interview with Jerzy Wacław Klinowski, Vice‑Chairman of the Board of Directors and Chief Operating Officer of NWR Karbonia.

Could you describe the will extract the coal. We want workflow for opening to build new foothill galleries 2500 the Dębieńsko. At what within four years so as to make phase is the project now the seams accessible. We have Approximately the in? prepared all the documents number of people to necessary for the approval be employed at the Currently, everything is in the of the licence changes, Dębieńsko Mine. hands of the authorities and the only thing we are now the public administration. lacking is an environmental We are now trying to make impact assessment report, some changes to the 50-year i.e. the plan of what impact licence we received in July our investment will have on 2008. When designing the the environment. The area mine we decided to construct in which we are planning two shafts which would be to mine is spread over 31 connected underground, and square kilometres. We have to extract coal under the already completed this report, ceiling of seam 401/1. Yet however due to a jurisdiction there are several coalfaces dispute between the public that lie above that seam administration bodies the which we cannot extract whole process ground to a halt within the current licence in the summer of 2010 and it conditions. So we have drawn was only re-launched a few up an application for a licence months ago. amendment that would include permission to mine So, to understand it these coalfaces. correctly, the opening of the mine has Such a process been complicated must require a lot of by administrative documents and be procedures? extremely demanding in organisational terms… When it comes to obtaining the permissions concerning When drawing up the environmental impacts, I am documents for the licence not too concerned as I believe amendment application, that sooner or later we will we prepared the reserves get the document. However Restructuring Company documentation, which has we won’t be able to start the (SRK). This is by far the most already been approved by the operation in the mine without significant issue for us today. Ministry of the Environment. acquiring the land from the Kompania Węglowa owns And more than a year ago we owners of the complex of the approximately 50 hectares, also compiled a project aimed former Dębieńsko Mine – the while another five hectares, at utilising the deposit which mining company Kompania on which the head frames describes the ways in which we Węglowa (KW) and the Mine stand, are the property of the

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a year and a half ago but only opportunity: opening the managed to purchase part mine will mean a huge of the area and several mine financial injection for the local buildings in the middle of community and the region March 2011. Nevertheless, after as a whole. It will provide paying the security we found jobs for about 2,500 people. out that the contract can only And don’t forget that in the be completed in September municipality of Czerwionka- or October 2011. We need the Leszczyny, which formerly was consent of two ministries – the almost exclusively dependant Ministry of National Property on black-coal mining, the and the Ministry of Economy. unemployment rate in the The case of the negotiations 18-25 age group is 25 per conducted with the Mine cent, and the overall average Restructuring Company is unemployment is definitely somewhat similar. We need the more than 30 per cent. consent of the two ministries We’re talking about mass in order to sign a purchase unemployment. That’s why contract for the two existing it doesn’t surprise me that head frames and infrastructure. we receive about 50, 60 job applications every single day. And this in turn will delay So far, we have received more the mine’s opening... than 3,000 job applications, as well as innumerable inquiries. It appears that we will begin digging in the late autumn. How much will it cost to And it goes without saying open the mine? that this isn’t the best time of year to launch these works The total investment will be since the ground is frozen approximately EUR 350 – and there is snow. We could 400 million. I estimate that actually start constructing the half of that amount will mine tomorrow. We are ready be made up of costs for to do so in both financial and demolition, modernisation material terms. The sooner we and construction works. obtain the required permits, We intend to give work to the sooner we can put the a number of local companies mine into operation and start during the construction. employing people who in many These local demolition, cases are jobless today. The only construction, electrical, mining thing that is holding us back and plumbing firms will make is the lengthy procedure for a profit from the mine. I am arranging the required permits convinced that we will need and certificates. We can’t move them in the process as well. until the authorities accelerate the procedure of completing What benefits will the these formalities. These are the mine bring to the local main obstacles to commencing population? And what construction activities. additional benefits will it mean for the Mine Restructuring Company. How long have the What will be the main community? The rest, about 120 hectares, negotiations with KW and benefits of opening is owned by the municipality SRK lasted? What can be the mine to the local Since the beginning of the of Czerwionka-Leszczyny. We done to conclude them community and the school year NWR Karbonia has do not foresee any problems successfully? region? supported the introduction connected with the acquisition of two classes with mining of this land, it is just a matter of We launched the negotiations I have stressed it on every specialisation at the training time for us to settle the matter. with Kompania Węglova occasion I have had the and industrial schools which

Open Mine 2 I 2011 5 economy interview technology

form part of the Integrated Pursuant to the Polish Mining School in Czerwionka- Act, an entrepreneur who Leszczyny. We have provided wants to carry out this type the school with money of activity is obliged to bear for developing an electro- the consequences. That is technical workshop. And precisely why we have created it has also been given the a system of assistance for guarantee, which is one the residents in the areas of the conditions for the in question. Everyone who introduction of the mining wants to build a house in this classes, that the students will territory and is aware of the gain work experience in the fact that they may be affected mine’s surface operations. We by the consequences of mining have made a commitment to activity can turn to us and ask it. And, in addition, we want for a financial contribution to introduce a motivational to reinforce their house system of rewards for mining foundations in connection class students’ dependent on with the expected movement their grades. of sub-soil. These people bring maps of their land and we Are you planning compare them with the plans to support the local we have. community’s activities in other areas too? Is it possible to avoid a conflict between NWR Karbonia already the applicants and supports local scouts, the company in such neighbourhood and other a situation? It’s a very initiatives such as, for sensitive topic, after all. example, the publication of commemorative volumes We issue a certificate that to mark the anniversary of the house in question will be the school’s foundation, co- exposed to mining impacts Do you already have the mine into operation organisation of sports events, of the first, second or third plans to employ almost immediately; we chess tournaments for both category or, conversely, a specific number of have only been held back by young people and adults, that it will remain beyond people? How many will administrative procedures. sponsorship of raffles and the area affected by coal NWR Karbonia employ support for the local church extraction. We reach a certain and when will they start How many employees choir in which a number of consensus as a result of working? are you able to take on talented people sing, as well as agreement between the immediately once you’ve participate in various events experts representing the We have to be prepared for received all the required and perform in public. applicants and our specialists. the possibility of employing permits? This manner of solution has several hundred people at Will NWR Karbonia also worked well. Accordingly, once. For the time being, Once we finally obtain the support residents who people can receive a voucher excluding contractors, NWR buildings and all the permits we could be affected by in the value of PLN 15- Karbonia has a relatively will almost immediately employ mining activities? 35,000. In this connection, we small number of permanent about 200 people. We should have received between one and external staff. But we eventually employ some 2,500 Of course! We are already and two hundred applications. must be ready to employ people. At the present time doing so and have received For logical reasons, we only a large number of people we are preparing a detailed a lot of questions in this pay the contribution when fulltime almost immediately. feasibility study and at the end respect. We don’t leave the the house has been built to As I’ve already said, we can of March we completed its first local citizens in the lurch. the level of the roof. start working on placing phase. Also under preparation

Open Mine 2 I 2011 6 safety reclamations responsibility

with labour productivity in contains a few specific, NWR Karbonia is an open such a manner that better essential items of information. company conducting financial results of the a dialogue with the local company would also mean What about land inhabitants? higher earnings for our reclamation at the employees. locations that will be Yes, of course! I invite people damaged as a result of to discuss things. If anyone has Do you intend to apply mining activities? Is NWR any problems relating to a lack the Canadian-American Karbonia ready for this? of information or wants to models you are familiar raise any questions pertaining with from the years you The Mining Act very precisely to the mine’s future, spent in North America? stipulates that a company is I invite him or her to our obliged to anticipate mining headquarters. Moreover, we I designed, built and managed impacts and rectify and hold regular meetings with the several mines there, and compensate for the damage citizens of individual locations I managed to maintain very caused by mining activities. during which they can ask good relations with the We are obliged to prepare the us about anything relating local trade unions. The trade operating plan which describes to the planned activities in union members there pay the mine’s planned activities. connection with the mine. contributions from which they One of its parts is the presumed also pay the head of their damage to the surface in union. Every year the employer the location where the enters into wage negotiations mining impacts will manifest EUR 350 – 400 million with the trade union that themselves, the manner of The approximate size of represents all the workers. preventing it and mitigation of As I have said, we would the condition incurred. the investment to open like to link the employees’ the Dębieńsko Mine. remuneration system with Who reviews and their productivity. approves this plan?

What are the The operating plan is Are people interested characteristics of the assessed and approved by the in these meetings? How wage system across the District Mining Office, which many turn up? is a financial model of the ocean? continuously supervises the mine’s functioning which compensation for the damage The meetings are usually will subsequently impact our The wage system in the incurred. When, for example, attended by 200 or 300 employment policy. USA or Canada comprises we lower the level of a water- people. It is important that four or five salary brackets, course we have to restore it or we have established contacts Do you know at this whereas the remuneration fence off the river. Moreover, and cooperation with the juncture the level of system in Poland is extremely it concerns the impact of local media also. Journalists salaries that miners complicated. In Poland, there mining on residential houses have been kept up to date working at the new are far more salary brackets, and other parts of the with our intentions and they Dębieńsko Mine can as well as additional payments infrastructure, for example, understand that the mine expect? for work experience, roads, rails, etc. Costs for these has to be opened as soon as performance bonuses, etc. works can constitute up to possible. I think that it is always We have already prepared the And there are also anniversary 3% of coal production costs. worthwhile to inform all the wage tariffs and we strive to premiums, miner’s cards, Although these are very high parties concerned and we value provide our employees with thirteenth and fourteenth costs, we are well aware that transparency in all we do. I’m wages that are competitive salaries, free coal, stationary they are necessary and cannot convinced that the fewer facts and at least at the level of allowances, and other perks. be omitted, and we fully and intentions are concealed the national average in the That is why the wage slip understand it. from people the better. mining sector, but more of a Polish miner has an A4 likely higher. We want the format, whereas in the US Can you say today with Tomasz Rozek, remuneration system to link and Canada the slip merely a clear conscience that [email protected]

Open Mine 2 I 2011 7 economy interview technology

An online look underground

Do you need to know what is happening down in the mine while you are sat in your office? Would you like to know whether the mining and driving is progressing fluently, or whether there are any issues that could result in idle time? Does occupational safety rank as the first priority for you, just as it does for NWR? If so, do you need to monitor and measure safety parameters to ensure that they comply with the relevant standards, without impending risks?

Dispatchers, inspection technicians and other qualified persons at OKD can meet these and many other requirements thanks to an online application called SGS 32. This application contributes to improved work efficiency and productivity, streamlined human resources management, problem solving and, above all, enhanced safety. Machines operating underground in the mine can even be monitored from an office Technical development: comprehensive mining 32 is an instrument that district. Further updates information enables detailed monitoring are under development. and evaluation of conditions “The objective is to receive The deployment of state- at specific longwalls, mine detailed information about of-the-art technologies developments, individual mines the conditions in a mine on throughout NWR‘s mines and districts mined by OKD. a very sophisticated level is associated with the Qualified experts can then while having the possibility introduction of new respond flexibly to situations to generalise the data and procedures in the management as they occur. monitor any developing trends. and control of underground Prior to the implementation works. The jobs of dispatcher The application was developed of sophisticated information and inspection technician in the early 1990s by a Czech technology, dispatchers are no longer based on company called Prosystem. It possessed only incomplete the monotonous and has been subject to numerous information, which was often tiresome processing of often innovations and updates in very difficult to analyse,” disparate and incomplete parallel with the dynamic explains Bohumil Pavelek, an data and subsequent progress of the hard coal adviser to the Head of the complicated conversions. mining technology deployed Mining Inspection Department The information system SGS in the Ostrava-Karviná mining of OKD.

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POP 2010: Cameras relay information details of the mining complex operation, the operation of to the surface the conveyor belts in terms of continuity and speed, as well as the quantity of coal in the bunker and its subsequent transport to the skip bucket. “At the basic level, the system simplifies the dispatcher’s work considerably. It is not only concerned with monitoring the mining process itself and the operation of the relevant technologies, it also collects vital data from a large pool of sensors The development set is displayed on the screen down providing a range of safety- to the smallest detail related information, regarding for example methane and The POP 2010 project saw the investment of nearly CO concentrations,” Pavelek CZK 10 billion in the mining technology. Implementation points out. The central data of the project demanded the corresponding development transfer system plays an of the SGS 32 application. One of its subsections now important and decisive role in conveys a view of all POP technologies at longwalls and terms of occupational safety. their current operational status from the very basic level, Individual sensors monitor the i.e. whether they are in operation, being relocated or presence and concentrations installed at a new site. “At a more detailed level, the system of methane and CO at provides a continuous feed of technical parameters from various points throughout the mining complex, its position and velocity, as well as the the mines. The information progress achieved across the longwall and the positions at collected enables the efficient the separate sections. Installed cameras also provide visual regulation of optimum information on the current occurrences at the longwalls. airflows. For these longwalls, we have the option of remote section reloading or even the remote control of a plough body,” However, the application said Pavelek. From the mining complex also provides detailed to the skip, via live information on the position, A similar level of monitoring is available for POP broadcast operation and individual technologies installed at mine development sites, where the technical parameters of system provides continuous monitoring of the development The system enables monitoring mining complexes. It provides sets. The system observes technical parameters and warns of of the individual longwalls warnings of any issues that any operational risks. The application enables the generation underground from a single could impede operations. In of daily, weekly or longer-term reports, performance surface location. Sourced terms of operating efficiency measurements for the machinery installed, and warnings of data range from broader and economy, the new system any idle time along with the causes. The system also exports indicators of daily or monthly enables sequential monitoring the data collected to the manufacturer of the technology, outputs to the smallest of the operational continuity Sandvik, which in turn facilitates the further development details of individual mining of mining complexes as of the technologies. sub‑processes. well as idle production time with a clear indication of its New updates and enhancements to the system are The qualified person on duty underlying causes. The same currently under development. The core assignment pursued monitors and analyses the applies for the belt conveyors. by NWR experts in cooperation with software specialists is complete production process the extension of the application to provide more detailed from the mining complex Marek Síbrt, monitoring and evaluation at the coal face. to the coal bunker, with marek.sibrt@okd.cz

Open Mine 2 I 2011 9 economy interview technology

New coking battery successfully completes trials and enters production

OKK Koksovny has obtained final approval for its newly-built coke- oven battery No. 10 at Svoboda Coking Plant. The trial operation was concluded successfully at the end of April, with the battery subsequently moving to standard production mode.

From construction to trial Tests performed during the trial And our coke is in considerable operation operation were used to fine- demand thanks to its high 800,000 tonnes tune all operational parameters, quality,” Mokroš added. The construction of the new and verify the correct The amount of coke OKK battery was accomplished functioning and faultless The battery is designed to Koksovny is capable of between June 2008 and operation of all the equipment. produce 220,000 tonnes producing annually in its October 2010. The main “The goal is to check that of coke per year from its four batteries. contractors were HUTNÍ all operational parameters, 56 chambers. The time for PROJEKT Frýdek-Místek, a. which are guaranteed by the coking in one chamber is up to s., which constructed the contractors, are maintained 32 hours. From the beginning buildings and some of the over a seven-day period. Put of the trial operation to the technology, and VÍTKOVICE simply, the tests are concerned end of 2010, the battery POWER ENGINEERING, a. s., with the number of coke produced nearly 48,000 tonnes which supplied technology, chambers from which coke of foundry coke. The battery service machinery and dust- is pushed per shift and day,” is heated with coke-oven removal equipment for the Mokroš explained. gas sourced from its own battery. It can be said that in production. excess of 200 workers were From the start of its operation, on-site when the battery was the battery has been Trouble-free final built, when you also take into producing foundry coke, of approval account the workforces of which OKK Koksovny is the other subcontractors. largest European producer. “It The planning department is a type of coke with a higher of the Moravská Ostrava The trial operation a Přívoz district was officially council was started at the Coke-oven asked in mid- beginning of battery No. 10 March to issue November last the final approval year, ending at the for the battery. end of April this CZK 1.6 billion The necessary

year. “The standard investment inspection commissioning took place in procedure for 32 hours early April with a coking battery time for coking in one chamber representatives can take up to of the relevant half a year. We government have managed 56 chambers authorities in it in less than attendance. OKK two months. 220 000 tonnes Koksovny then We consider of coke per year received the that a great required approval, success,” said Petr entitling the Mokroš, Deputy Director for added-value, compared to company to permanently Production at OKK Koksovny. blast-furnace or heating coke. operate the site.

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Coke-oven battery No. 10

“The final approval process Republic. Measuring sensors Coking byproducts include plant and consolidated all in the Czech Republic is very are installed directly by raw coking gas, tar production at the modernised precise and detailed, and the battery. Emissions condensate and raw tar. Svoboda coking plant. Along demands that a construction are evaluated during the The raw coking gas and tar with the construction of the meets strict criteria in terms approval process by covering are processed in associated No. 10 battery, which makes of occupational safety, part of the battery, with chemical processes of the up the most extensive project, environmental impact and the emissions measured on coking plant and are further realised at an investment other parameters. As many filters. Measuring stations utilised. “Overall, what of CZK 1.6 billion, the as 15 various national and installed around the battery I can say on behalf of OKK modernisation at the site also local authorities take part in continuously measure the Koksovny is that every year included the reconstruction the process at one time or quality of air to detect any we decrease the volume of of battery No. 8, providing us another in regard to various non-standard situation. This waste material produced. This with good prospects for years aspects of production,” way, we have information fact is especially important in to come,” Mokroš summed up. Mokroš said. which is updated every the case of hazardous waste,” minute, every five minutes or Mokroš noted. The consolidation of Environmental impact? daily. We are also monitoring production at Svoboda has Rigorous testing and evaluating long term,” Constructing the resulted in reduced operational Mokroš added. new battery is costs while it has also The new coke-oven battery a key component enabled greater flexibility in meets the most stringent The new battery is of the of the Coking Plant responding to market demand environmental limits Still type, running with Optimisation programme for coke. stipulated in the relevant lower temperatures due to legal regulations pertaining a different arrangement The construction of the new Combining the output of to the operation of such of the air and gas supply. coke-oven battery No. 10 reconstructed battery No. 8 facilities. The trial operation As a result, the battery has amounts to the most extensive and the other two operational included measurements a lower level of mono- investment project of NWR batteries at the plant, the total for noise, concentrations nitrogen oxide (NOx) within its Coking Plant production capacity of OKK of chemical pollutants and emissions. Thanks to the Optimisation Programme (COP Koksovny reaches 800,000 dust at all workplaces. “The use of an extensive amount 2010), with total investment tonnes/year. process for the environmental of refractory material, the reaching EUR 63 million. “At impact assessment is very coking chambers are better the end of 2010, we shut Marek Síbrt, thorough in the Czech sealed. down the Jan Šverma coking [email protected]

Open Mine 2 I 2011 11 economy interview technology

NWR: Quality of life is the first priority

NWR wishes to contribute to the quality of life in the communities where it operates. To that end, the Group has undertaken a range of projects and initiatives that are designed to improve the quality of life for people in its home regions.

This year the Company has its environs and stakeholders, mining sector, but in industry for the first time highlighted including the corporate in general, was largely projects its activities in the field of environment, employee safety insufficient and was often 190 corporate social responsibility and working conditions, neglected by firms altogether. In 2010, the OKD Foundation (CSR), and NWR plans to quality of life in local Moreover, any support supported 190 projects of non-profit organisations publish its first audited communities, environmental provided to civil society was and municipalities with “CSR Report” on sustainable protection, relations with rather chaotic in places. That an overall commitment of development for 2011. national and local government, is why we decided to change CZK 24 million. the non-profit sector, business things by taking a proactive Why social responsibility? partners and customers. approach. Several years of hard work have passed and we can The Moravian-Silesian Region, Such an emphasis on the now look back at successful where NWR operates, has for responsible behaviour projects that have helped to centuries been inherently of business towards improve the quality of life linked with mining and heavy local environments and of particular people, often in industry, such as metallurgy, communities is something difficult living situations. And steel production and which, although the norm in that is the most important mechanical engineering. Local many European countries, is thing,” reflects Petra Mašínová, residents are understandably relatively new to the Czech Head of NWR Corporate sensitive to the position of big Republic and other countries Communication. companies on environmental that were once run under protection, employee welfare communism and with centrally Numerous awards won by and the local quality of life. planned economies. OKD, NWR’s Czech coal mining NWR is well aware of this “The communication that subsidiary, are testament to and strives to exercise the was in the past offered by the quality of the various utmost responsibility towards companies not only in the projects. In both 2009 and 2010, OKD secured second spot in the prestigious TOP Filantrop poll, which rates the most generous corporate donors in the Czech Republic. Moreover, the Company received in 2009 a special prize for “Best Newcomer” in the area of corporate philanthropy.

Why a separate publication?

The number of activities and projects pursued by NWR in the field of social responsibility has grown over the years,

Open Mine 2 I 2011 12 safety reclamations responsibility

which is why the Company The Company approaches Approximately 80 per cent We can, for example, assist decided to publish an overview this area very seriously, as of the projects are in the the workshop operators by NWR: Quality of life of the topic. “The target is documented in the NWR Moravian-Silesian Region. contributing towards the to publish a brochure that Code of Business Conduct and describes the activities we Ethics. The Code governs the implemented in this area in actions of representatives and is the first priority 2010, to improve our work in employees of the Company a way that ensures we address as well as employees of its our objectives and improves subsidiaries. It includes the the coordination of projects specifications of mechanisms with their beneficiaries,“ available to employees to Mašínová said. The document directly share their concerns can be downloaded here www. and complaints related to s t e p s newworldresources.eu. actions taken by a Company representative and/or other The publication presents employees with the NWR socially responsible projects Chairman, an authorised implemented by NWR, independent Board Member Appreciation of costs of machinery and other and the Company is now and an appointed ethics significant projects equipment in order to ensure working hard to meet all representative of the company. the competitiveness of their the requirements necessary Every year, the Foundation products on the market in for the regular release of The OKD Foundation – awards the most beneficial terms of both quality and audited CSR Reports. The the leader in non-profit projects it has supported. Last price,” says Jiří Suchánek, OKD Company anticipates it will sector support year saw the beginning of Foundation Director. be able to release a CSR a new Foundation award that, Report, compliant with the NWR mainly channels under a Media Achievement Assistance for mining internationally acknowledged its assistance to local category, recognises an orphans Global Reporting Initiative communities through the editorial team or an individual (GRI) guidelines for reporting OKD Foundation. In the three journalist for efforts in raising OKD is a founding member the application of social years of its existence, the public awareness of non- of the Saint Barbora Civic responsibility and sustainable Foundation has supported profit sector activities and Association. The Association development principles, in the nearly 800 projects among publicly beneficial projects. The aims to support children course of the next year. non-profit organisations and inaugural winner of the award that have lost a parent to municipalities with more than was the weekly magazine Euro an occupational accident NWR’s four pillars of CZK 123 million. for its regular column Positive in mining. “In 2001, the social responsibility News, which brings readers Association registered 87 The key goals of the information on corporate children in its care. The NWR’s social responsibility Foundation are to support and philanthropy. number of registered children concept is founded on four develop non-material values, has fallen in recent years, main pillars: Corporate the environment, education, Vision for 2011 thanks in part to investments Governance, People, sport and cultural pursuits and made by OKD in increasing Community and the social and medical services. The OKD Foundation plans occupational safety, which in Environment. OKD has pledged to donate to allocate CZK 60 million turn have led to a reduction one per cent of its annual to support publicly in the number of occupational In the area of management, gross profit to the Foundation. beneficial activities of accidents,” notes Vladislav the company adheres to non‑profit organisations Sobol, Chairman of the Corporate Governance Through its four programmes and municipalities in 2011, Association. principles compliant with (For Health, For Joy, For of which CZK 10 million is international standards and the Future, and For Europe) earmarked or supporting “The volume of resources recommended best practices, and three funds (Crisis sheltered and socially available to the children including relations with Fund, Operational Fund therapeutic workshops. “These increases every year. The shareholders, business partners and Development Fund), indispensable establishments, amount of direct financial and customers, as well as the Foundation supported which support the integration assistance provided or the internal processes within the in 2010 a total of 190 of disadvantaged people costs of actions undertaken company. The key themes projects put forward by into work, and therefore in 2009 amounted to governing actions of NWR non-profit organisations integration with normal life, CZK 2.5 million, while in are responsibility, prosperity, and municipalities with are facing a financially tough 2010 it was CZK 2.9 million,” stability and progressiveness. more than CZK 24 million. year due to state budget cuts. said Vladislav Sobol.

Open Mine 2 I 2011 13 economy interview technology

Sponsoring: sport, culture those who can cope with the circumstances outweigh the new personal working and and education demands. The average wage value of the health and lives technical equipment that in the company has for years of our employees,” says Leo have contributed to improved Sponsorship and support exceeded the regional as well Bayer, OKD Chief Operating occupational safety and for sport, culture, education as the national average. The Officer. The Company therefore more comfortable working and mining traditions play 2010 average wage was CZK never ceases to improve its environments. a significant role in the region. 32,878, while the wages of safety standards and to reduce underground miners averaged occupational hazards. Key Educated people as In sport, OKD is the traditional CZK 32,583. safety indicators for 2010 a guarantee of future general sponsor of top confirm a positive trend and prospects handball league club Baník In line with collective demonstrate that the measures OKD Karviná, which is the agreements concluded implemented are pointing OKD mines have undergone most successful Czech between the management the Company in the right modernisation as part of the handball team in both the and the unions for the period direction. Productivity Optimisation domestic league and in 2010-2012, the company Programme 2010 (POP European competition. Since 2008, the Company has also been the general partner of second division football club MFK OKD Karviná, a club that does not conceal its ambition to reach the top division.

In culture, OKD is the general partner of the international world music festival Colours of Ostrava, whose originality is noted not only across the region, but also throughout the Czech Republic. The company also provides financial support to the summer Shakespeare Festival.

People: the greatest corporate value provides its employees The number of injuries that 2010). The mines have been with various benefits that occurred in OKD mines during equipped with state-of-the- OKD, the Czech subsidiary of comfortably exceed what the 2010 dropped by more than art technology for longwall NWR, is the largest employer law requires. These benefits a fifth to 271 from 346 production and gateroad in the Moravian-Silesian include contributions to in 2009. The frequency of development, supplied by Region. In 2010, the Company pension and life insurance, injuries, as expressed by the major global manufacturers provided work for 13,693 of meals, holidays, Christmas Lost Time Injury Frequency Sandvik, Bucyrus and its own employees and 3,679 bonuses, transport to work, Rate (LTIFR) indicator, Deilmann-Haniel. Operating contractor employees. OKD’s various cultural and sports decreased year-on-year in the new equipment means activities affect the lives of activities, therapeutic stays the same period from 11.29 increased demands where virtually all residents of the and recreational holiday trips to 8.61. The statistics include employee qualifications are region, which is why OKD takes for employees’ children. contractors’ employees of all concerned, which is why NWR seriously its responsibilities to nationalities. places great emphasis on the both the regional economy Safety first education and qualifications of and quality of life. In 2008, OKD announced its its people. Employee safety is of the SAFETY 2010 programme, Proper compensation for utmost importance to NWR, which encompassed Renaissance of mining quality work and the Company is fully investments in excess of education conscious that people are its half a billion Czech crowns Working in mines is physically most valuable asset. “Tonnes of in the purchase of the In 2008, OKD entered into an and mentally demanding, and coal mined or coke produced, most up-to-date work agreement with the secondary it is not suitable for everybody. or favourable financial and protective equipment. school of technology and OKD knows how to reward results, can never under any The programme delivered services in Karviná, marking

Open Mine 2 I 2011 14 safety reclamations responsibility

the renaissance of mining Reclamations return life curricula in the Czech to landscapes Republic. At the end of 2010, OKD supported more than 70 Hard coal mining and heavy Four pillars CSR strategy students in their preparation industry have significantly for future employment with altered not only landscapes in the company in the positions Northern Moravia and Silesia, of locksmith – mining but also local demographics, Corporate governance operations, and electrician – social conditions and environ- mining operations. Students mental quality. NWR is aware NWR is committed to maintaining high receive a monthly stipend of of its responsibilities ensuing standards of corporate governance, CZK 1,000 and have access to from the impacts of mining taking into account international best summer jobs and internships activities on the environment practice requirements. Management’s in OKD surface operations. But and carries out various projects role is to promote the achievement of most importantly, upon leaving to mitigate these effects. school the students have the corporate objectives and protect the certainty of employment with Between 1991 and 2010, interests of NWR Group, its shareholders OKD. the costs of remedying the and other stakeholders including impacts of mining activities business partners and customers. At the beginning of 2011 the in the Ostrava-Karviná district Company concluded a similar reached CZK 9.246 billion. agreement with the secondary In the period between 1993 school in Havířov-Šumbark. and 2000, the state also Our people Starting with the 2011/2012 contributed. In the framework Caring for our employees in the school year, future mining of subsidies that addressed areas of safety, healthcare, working locksmiths and electricians the thinning and reduction of will follow the same curricula mining activities in the Ostrava environment, fair remuneration and and enjoy the same support section of the mining district, education, is a top priority. Every year, from OKD as is provided to the it provided resources to the NWR invests considerable amounts Karviná students. tune of CZK 2.773 billion. of time and money in improving Since 2001, the remediation of safety measures implemented at its The OKD Academy mining impacts has been fully workplaces as well as in training its financed from the internal As part of its OKD Academy resources of OKD. employees. programme, designed to assist employees’ children The most visible outcomes in their studies, in 2010 the of the attention given Community company supported seven to landscapes stem from students in their master’s decontamination and NWR maintains close relationships with studies at the VŠB-Technical reclamation projects, which the community in which it operates and University of Ostrava. Two covered 857 hectares aims to develop and maintain mutually students each attended the (2,118 acres) in 2010. As many beneficial partnerships. NWR also makes Faculty of Mining and Geology, as 55 larger-type reclamation significant investments in cultural, sports the Faculty of Mechanical projects were pursued, of Engineering and the Faculty which 13 were funded from and educational activities. of Electrical Engineering and public resources and 42 were Computer Science, while financed by OKD. Total costs one student attended the reached almost CZK 265 Environment Faculty of Civil Engineering. million, of which CZK 148 The Company provided the million was provided by OKD As a mining company, we are aware students with professional and CZK 117 million came of the impacts of our activities on the backing in developing their from public budgets. Projects environment in regions where our papers, dissertations and theses, designed for the period up to operations are concentrated. For the as well as with internships. 2015 include another 20 major long term, the Company strives to The students will also enjoy reclamation initiatives. employ all means available to mitigate the safety of guaranteed employment with OKD upon Marek Síbrt, the environmental impacts of its the completion of their studies. [email protected] activities.

Open Mine 2 I 2011 15 economy interview technology

A lake instead of a former mine In 2010 the industrial zone in the area of the former František mine in Horní Suchá near Havířov was declared the winner of the “Brownfield of the Year” competi‑ tion organised by the Ministry of Industry and Trade of the Czech Republic and CzechInvest.

The last coal wagon rolled Great plans for the future out of the mine in the middle of 1999. The carea was Following the launch of subsequently revitalised and underground mining in 1911, infrastructure was built. The millions of tonnes of black construction was financed from coal were extracted from the the public purse and EU funds, František colliery. This provided and was completed in 2009. work for thousands of people and significantly changed the A paradise for anglers face of the landscape, as well and water sports fans as the lives of inhabitants of the neighbouring As a result of the land municipalities. The site of a former mine now attracts anglers reclamation, the area surrounding the František The area in the land registry zone has changed of the village of Horní Suchá the city of Havířov and the Also included in the significantly. The plans drawn and the Havířov city district of municipality of Horní Suchá. reclamation projects is the up by OKD, the project’s Prostřední Suchá was afflicted former Castaldonovka pond, investor, for making use of by ground subsidence. There The three former ponds for which used to serve for storage the former tailing ponds and are former tailing ponds, a spoil storage of coal slurry have of waste rock and power plant spoil heaps are extensive heap and sites for temporary been filled with waste rock, fly ash. With regard to the fact indeed. The vicinity of the storage of slurry and rock covered with earth, levelled that protected plant species lake, with its crystal clear extracted in the vicinity. For with the surrounding ground have bloomed in the location, water, has become a favourite the purposes of revitalisation, and grassed over. The reforested this area has been removed destination of anglers, the area has been divided into spoil heap has been preserved from the reclamation project. swimmers and campers. The six sections. The reclamation of in the current form to the project was launched in each will have its own specifics highest possible degree, with Plans for the future July 2009 and the expected and objectives. only part of it being modified deadline for its completion so as to better blend into the For 2011, NWR has planned is early 2014. Total costs for The bulk of the technical adjacent landscape. The heart reclamation works with the reclamation are CZK 373 reclamation has been finished of the newly created area is the a budget of approximately million, which was released and will be definitively Nebesák lake, which has already CZK 290 million, with the from public funds within completed this year. Biological become a popular destination projects being partly financed the Revitalisation of the reclamation will continue. As for fishing, summer water from the company’s own Moravian-Silesian Region in the case of all reclamation sports and other recreational sources and partly from public programme, specifically projects, the manner of the activities. Within the funds. By the end of 2010 Project No. 45 – Preparation project’s implementation reclamation project, the lake’s reclamation works had been of the area within the and its objectives have been shores have been treated and completed on 1,567 hectares rectification of environmental discussed with representatives reinforced with quarry stone. of the areas affected by damage following the of the local authorities and Moreover, they will be covered mining activities, 858 hectares termination of mining are in compliance with the with earth, grassed over and were being implemented activities. land-use documentation of planted with trees. and projects to cover 109

Open Mine 2 I 2011 16 safety reclamations responsibility

Dynamics of international price negotiations

The beginning of Spring usually marks 70% higher than 12 months previously. the time for the announcement of annual Miners therefore entered second quarter international coal prices since these negotiations expecting to benefit from these contracts have traditionally followed the tight market conditions and eventually Japanese Fiscal Year which starts on April settled on a benchmark price of US$330/t. 1st. For many years negotiations were The annual thermal coal prices were also relatively straightforward with one of due to be settled at the beginning of April. the larger Australian miners agreeing an However, the devastating earthquake annual price with a Japanese customer in Japan delayed the finalisation of which the rest of the market would accept negotiations with Japanese power utilities as a benchmark. In recent years however looking for concessions due to their the dynamics of this pricing arrangement uncertain economic outlook. A settlement have changed substantially, particularly for price was recently set at US$130 which coking coal. looks likely to be accepted as the benchmark thermal coal price. Internationally traded coking coal, along with most other commodities, has seen a surge in demand with the recent and dramatic industrialisation of China and other emerging economies. With supply struggling to keep up and prices rising, more and more volumes began to be traded on spot markets putting pressure on the old system of annual contracts. hectares were scheduled to During 2010, in order to benefit from these be launched. rising prices, the larger mining companies successfully changed most of their In 2010, some 55 large-scale contracting to a quarterly basis. Despite reclamation projects were taking some opposition from steel customers, place in the Ostrava‑Karviná the vast majority of coking coal sales are coal field, with costs amounting now settled from quarter to quarter with to CZK 265 million, of which a still very liquid spot market providing CZK 148 million was invested a benchmark for these contracted prices. from the company’s own Thermal coal has similarly seen more sources and CZK 117 million activity on the spot market but contracts from public funds. The ongoing have remained on a yearly basis since European coal prices have tended to follow significant transformation of this market is more static and the prices these international trends with most coking the landscape in the Ostrava somewhat lower than coking coal. coal contracts in the region now moving and Karviná regions in recent to quarterly pricing. The regional thermal years due to reclamation of The first quarter of 2011 saw the coal market has also been influenced by areas affected by coal mining international premium hard coking the Japanese earthquake with increasing is documented in a new coal contract benchmark price settled pressure on European governments to scale publication titled “Returning at US$225/t, which was following an back on their nuclear power ambitions Life to the Landscape”, mapping upward trend from previous quarters due which is expected to increased coal demand the land reclamation projects to improving economic conditions and for electricity generation with a knock on implemented in the region, tightening global supply. Severe flooding effect on prices. which can be downloaded here in Australia during this quarter caused www.newworldresources.eu. major disruption to the seaborne coking Stephen Hough, coal market and caused spot prices to peak Market Analyst, New World Resources, Marek Síbrt, at US$380/t in January, which was almost [email protected] [email protected]

Open Mine 2 I 2011 17 economy interview technology

Vietnam – the world's largest anthracite exporter

The global coal market changes and evolves: new players appear on the global stage, new partnerships emerge, market hubs shift to new locations, and the commodity flows alter.

The changes going on globally also include fundamental shifts in the mineral resources market, movement that began around 2003. These particular developments have led to traditional producers and exporters of mineral resources to divert supplies to domestic consumers, and in some cases to even become net importers. This situation applies to China and India, and also to Brazil, Indonesia and other emerging economies which are becoming increasingly significant consumers of Vietnamese coal mine Núi béo commodities on the back of extensive industrialisation and urbanisation. ores, manganese ores, copper, and, above all, a high-quality nickel, lead, silver, titan ores, coal – anthracite. Vietnam, in south east wolfram, zinc, gold and iron Asia, is among those ore. The country also has The importance of mineral countries undergoing some of the special high-tech resources to the economy of rapid modernisation, and metals, such as rare earth Vietnam is clear from the fact it is a country that boasts elements (REE) and non-ore that mining industries account extensive mineral riches. The minerals like apatite, barite, for some five per cent of the territory of Vietnam includes fluorite and silica sands. country’s GDP, and exports of deposits of many traditional Vietnam also has raw fuel its two main commodities, oil metal resources, including energy resources; the country and anthracite, traditionally antimony, bauxite, chrome produces crude oil, natural gas bring in approximately 20 per

2001 2002 2003 2004 2005 2006 2007 2008 2009 Production 13.0 15.9 19.6 27.3 34.1 38.8 42.5 39.8 41.0 Export 4.0 5.9 7.2 11.6 18.0 29.3 32.5 19.7 19.5 Consumption 9.0 10.0 12.4 15.7 16.1 9.5 10.0 20.1 20.5

Vietnamese anthracite production, export and domestic consumption from 2001 to 2009 (in millions of tonnes)

Open Mine 2 I 2011 18 safety reclamations responsibility

Location of the Quang Ninh province and its mines

production growth, supported The state-held company by both domestic demand VINACOAL (Vietnam and growing global demand National Coal Corporation), for high-quality Vietnamese a member of the VINACOMIN anthracite. This coal offers consortium together with the a high heating value, as Vietnam National Minerals well as low ash, phosphorus Corporation (VIMICO), is the and sulphur contents. The exclusive miner of Vietnamese anthracite deposits are huge: anthracite. VINACOAL as much as 3.5 billion tonnes acts as an umbrella for 20 at depths of no more than subsidiaries, including three 300 metres, with estimated processing plants in Cam Pha, reserves at greater depths of Hong Gai and Uong Bi, and a higher order. three transport terminals in the region. VINACOAL thus province in the north of As the above table shows, controls the majority of the Vietnam into a much-desired dynamic production growth production, distribution and alternative source of these between 2003 and 2007 was export of anthracite from super-strategic resources for coupled with nearly a fivefold Vietnam. the global market. increase in the volume of anthracite exported from Beside the “national” raw The dynamic development Vietnam. The country has material anthracite, Vietnam of Vietnamese mining gradually become the largest possesses numerous other industries generates numerous global exporter of anthracite attractive mineral resources. cooperation opportunities with a marked advantage Within the Asia Pacific region, for Czech exploration and over Russia (approximately the country is an important mining companies, as well as 9 million tonnes exported in producer and exporter of crude for suppliers of mining and Photo: Hoang Hai Thinh 2007) and China (5 million oil, a regionally important processing technologies for tonnes exported in 2007). producer of titanium ores and the existing deposits. There are cent of the country’s foreign Vietnamese anthracite has a prospective producer of the already numerous successful currency earnings. been traditionally exported rare earth elements (REE) that “win-win projects” under way. to Japan, South Korea and are indispensable for numerous For example, Czech geologists There are immense anthracite China, with China gradually modern technologies. Thanks recently found an extensive reserves, especially in the gaining a dominant position to a sophisticated strategy, deposit of high-quality Quang Ninh province in the as the main buyer in recent China has gained a global silica sands. There is also northeast of the country, years. Growing domestic monopoly in REE mining, a close cooperation between near the border with China. consumption forced the currently accounting for relevant counterparts at the Anthracite is extracted in the Vietnamese government approximately 95% of global government level, involving area with the use of both in 2007 to limit exports in production. Moreover, China the Vietnamese Ministry of open-pit mining and deep order to safeguard supplies took the decision recently to Natural Resources and the mining. Key anthracite mines earmarked for domestic limit exports of these highly Environment (Department are located in the areas of thermal power plants and strategic resources to global of Geology and Minerals Cam Pha, Cao Son, Coc Sau, cement kilns. Domestic markets, citing growing of Vietnam) and the Czech Deo Nai, Dong Trieu, Ha Tu, consumption is expected domestic consumption and Ministry of Industry and Trade Hong Gai, Khe Cham, Mao to continue on the growth the necessity of closing (Department of Resources and Khe, Mong Duong and Uong curve. It is forecast to reach down some of its mines for Energy Security). Bi. The region has in recent 50 million tonnes in 2015, safety and/or environmental years witnessed an explosive meaning the country would go reasons. These developments Pavel Kavina, MSc, Ph.D. development of the coal from being a coal exporter to could turn the promising mineral resources analyst industry with unbelievable being a net importer. REE deposits in the Lao Cai [email protected]

Open Mine 2 I 2011 19 economy interview technology

Articles prepared by: Vladislav Sobol, [email protected] Heřmánek Halfway house in Karviná wins the Award for Quality

on expanding our work with the methods and approaches younger children, to make applied when working with sure they do not end up in clients. “The jurors were highly institutional care,“ said Pavel interested in the individual Sporysch, director of the growth plans that we prepare Association. together with each client. Their most frequent goals Sporysch narrated one of include the finding and the many touching stories keeping of a job, completing from the lives of his clients, an education or learning to saying: “For instance, we manage one‘s finances. Thanks recently admitted 14-year- to well-established methods, old Monika, who turned to tried and tested during our social workers for help herself, 12 years of experience, we are to our facility for children doing an excellent job of it,” requiring immediate help. She Sporysch added. no longer wanted to live with The Halfway House operated her mother – an alcoholic, by Heřmánek has already The Heřmánek (“Camomile”) of social exclusion. The jury who would lock her up in the helped more than 500 young Civic Association in the city selected the best projects flat, and often did not give people to return to normal life, of Karviná, an organisation from almost one hundred her any food. Monica was in most of them former foster that operates a Halfway House nominations. a poor psychological state and residents of children‘s homes. of the same name, has won faced placement in a children‘s the highest recognition in its For Heřmánek, the Award for home. However, we succeeded The Award for Quality is field – the Award for Quality Quality represents a sign of in reactivating her contacts organised by Social Care in social care. Heřmánek, an appreciation of the work of with her aunt, who admitted (Sociální péče) specialist establishment supported by all the experts and volunteers her into foster care.“ magazine, and by the Council the city of Karviná and by OKD involved, and also signals for Quality of the Czech Foundation, won the award a commitment to the future. The jury of experts took an Republic, under the auspices in the category of services “’We do not want to become interest in such stories, as it of the Czech Ministry of provided to people at risk complacent, we are focusing was charged with assessing Labour and Social Affairs.

Record interest in scholarship applications

In this year‘s round of grant stems from cuts in the state to support the projects that As expected, applicants awards, the OKD Foundation budget and other sources,” are the best and, at the same showed the greatest received 1,283 project said OKD Foundation Director time, the most needed in the interest in the “For Health“ applications from non-profit Jiří Suchánek. challenging times we live in,“ programme, which helps organisations, municipalities Suchánek said in regard to the fund care for the elderly, and other applicants. That The Foundation plans to selection criteria. citizens with disabilities is almost a third more than distribute CZK 60 million, and abandoned children. in 2010. “This signals the three times more than last An independent grant In the framework of this increasing prestige of the year. The institution plans to committee will evaluate the programme, organisations Foundation which is now devote CZK 10 million to its projects, and the Managing have submitted 539 projects expanding beyond the priority funding area for this Board will have the final with a total value of CZK boundaries of the Moravian- year – sheltered workshops for say. The list of successful 172 million, while last year Silesian Region, as well as the handicapped. Some 80 per projects will be published by 355 projects were submitted, the greater hunger of non- cent of all funding will stay in the Foundation in the first applying for CZK 93 million profit organisations that northern Moravia. “We plan half of June. in total.

Open Mine 2 I 2011 20 safety reclamations responsibility

OKD Foundation supported the “Papua” fish and reptile exhibition at Ostrava zoo

colourful with an outdoor competition that was organised by the Foundation for children. “While fulfilling fun tasks, the young competitors learned interesting new facts about the zoo‘s new inhabitants. The first shark at Ostrava zoo, Of course, they all won as well as lizards, an ancient a sweet treat as a prize. The predatory fish and water parents had an opportunity turtles are among the main to learn about the activities attractions at a new exhibition of the Foundation, and the entitled “Papua”, which charitable work done by all focuses on the the fauna of the organisations we have the Pacific island of Papua supported in the past”, OKD New Guinea. The exhibition, Foundation Director Jiří which the zoo was able to set Suchánek recounted. Over up thanks to a grant from the 6 500 visitors came to the zoo from the island. These are The OKD Foundation has OKD Foundation, was officially during the Foundation Day. mainly snakes, turtles and supported the new exhibition opened on 23 April, as part fish – species which have with a donation of CZK of the “Day with the OKD “The exhibition will been a marginal group in our 810,000. In the past, the Foundation” event. familiarise visitors with zoo in the past, and which Foundation supported the zoo the wildlife of the island people are interested in,” said with CZK 1.5 million for the The route towards the of Papua New Guinea, and Šárka Kalousková, the zoo creation of the Little Amazonia exhibition has been made show endangered species spokeswoman. exposition.

OKD Foundation with a new director

in the Czech Republic. are other perspectives as well, Suchánek said following his After obtaining a degree in taking account of the global appointment. economics, Suchánek went nature of the world and the on to gain valuable work latest trends in corporate Suchánek graduated from experience that made him social responsibility. The the Faculty of Economics of an ideal candidate to lead continuous development that the University of Economics, a foundation that supports the NWR group goes through Prague (VŠE), where he good causes – he acted as must be mirrored in the studied regional economics, director of the SOBOfest evolution of its philanthropy, public administration and music and sports festival, and as it remains a key component commercial communications. as the coordinator for the of the overall CSR strategy of He then worked as a financial Czech Pavilion at the 2010 NWR. consultant, sales representative, Shanghai EXPO exhibition. project manager, and director The most immediate goals of the SOBOfest festival during “Support for non-profit of the Foundation include the years 2007 – 2009. Between projects particularly in the projects that will have an 2008 and December last year, Jiří Suchánek has become region where OKD does impact on the entire territory he worked as production the new Director of the business represents only of the Czech Republic, manager and deputy director of OKD Foundation, one of the one aspect of the OKD with a potential effect in the Czech Pavilion at the 2010 largest corporate foundations Foundation‘s activities. There other countries as well,“ EXPO in Shanghai.

Open Mine 2 I 2011 21 An important employer Prospects

OKD Foundation The most An important modern payer of taxes technology Regional Investment development

Domestic Company Economy Industrial uses

Export Energy industry Steelmaking

Paper industry Cement industry Aluminium production Chemicals Pharmaceuticals

On a ﬁ rm footing NWR is the only company in that mines hard coal in the Czech Republic. Hard coal is an important raw material for the energy industry and for the steel industry and related sectors. We provide work for tens of thousands of people. Our subsidiary OKD is one of the largest employers in the country and one of the biggest contributors to the state budget. We maintain the highest international standards in mining technology, safety, and business management. We endorse the globally shared principles of corporate responsibility. We believe that our business has long-term prospects. We are prepared to share these prospects with our employees and the communities in the regions where we operate.