NewWorldResourcesmagazine 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 “Weexpecta gradualincreasein productionoverthe courseoftheyear.” 4–7 8–9 “Wecouldstart “Thesystemwill s t e p s buildingthe markedlysimplify t o w a r d s c o r p o r a t e social responsibility mineassoonas thejobofthe 2 0 1 0 tomorrow.” production dispatchers.” 10–11 12–15 “Thereisademand “Afterseveral forourcokedueto yearsofwork itsquality.” wecanseethe successfulprojects behindus.” 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 Q12011results: Ontracktodeliverfullyeartargets OnMay182011,NWRannouncedits resultsforthefirstquarterof2011.Strong growthinrevenuesandprofitswasdriven byanimprovedeconomicenvironment intheCEEregionaswellaspositivetrends inglobalcoalpricing.Steelproduction inCentralandEasternEuropeinQ12011 was7%higherthanlastyear.Aspreviously announced,inQ1NWRexpectsto extract11Mtofcoalandproduce800kt ofcokethisyear,andafterQ12011we remainontracktomeetourtargets. 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 OpenMine2I2011 2 safety reclamations responsibility 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. OpenMine2I2011 3 economy interview technology Wecouldopen theminetoday AninterviewwithJerzyWacławKlinowski,Vice‑Chairman oftheBoardofDirectorsandChiefOperatingOfficer ofNWRKarbonia. 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.