New World Resources magazine

No

. 1 2

01

3

Open Mine

interview

Ján Fabián:

2013 will be a challenge,

but OKD is prepared

technology

Mines in Karviná

connected underground

by a unique gateroad

theme

Promising prospects

for the Moravian-

Silesian Region

14 –176–9 12 –13

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Open Mine 1 I 2013

Dear readers,

All companies strive for economic success and to provide their shareholders with a

return. This cannot be achieved, however, without effi cient management based on

sustainable development, corporate responsibility and employee care. We seek to

create working conditions for all our people so that we can work effi ciently and, above

all, safely. This is doubly important in the mining business. It is no coincidence that our

company slogan says “Safety fi rst!”

We have achieved a lot in the fi eld of safety over the past few years. Our miners

received new protective equipment, we have deployed state-of-the-art technology at

our mines, provided more intensive staff training and implemented a wide range of

motivational campaigns that target increased employee responsibility for their own

health and safety. Thanks to all of these efforts, annual injury numbers have almost

halved over the last fi ve years and the lost-time injury frequency rate fell to 7.6 in 2012.

Our mines are now as safe as they have ever been.

But our joint efforts to have injury-free operations and to enhance the working

conditions must not off. On the contrary, our efforts must intensify. We have therefore

prepared the OKD 2013 Safety Campaign that should contribute to reaching an LTIFR

number of 5 by 2015, as targeted in the PERSPective 2015 programme.

Even more emphasis will be put on employee training and education, and our

safety campaigns will stress that a responsible attitude by every one of us is

crucial to meeting our joint target. We want to keep improving underground micro-

climatic conditions by fi nalising Karviná mine’s central air-conditioning unit and by

commencing construction of a central air conditioning unit at Paskov mine. We will be

more diligent in our investigations of all job-related accidents, and we will take actions

to prevent their recurrence. We shall stop any working procedure that is hazardous, or

potentially hazardous. I fi rmly believe that these and other measures that we plan to

implement will contribute to the safe return to home and family of all our employees.

Godspeed!

Ing. Leo Bayer

OKD Chief Operating Offi cer

Open Mine No. 1 I 2013

Published by: New World Resources Plc

c / o Hackwood Secretaries Limited | One Silk Street | London EC2Y 8HQ | United Kingdom

Jachthavenweg 109h | 1081 KM | Amsterdam | Netherlands

Tel.: +31 20 570 2200 | Fax: +31 20 570 2222

E-mail: pr@nwrgroup.eu

Web: newworldresources.eu

Editor-in-Chief: Tomáš Píša | Editor: Marek Síbrt | Cooperation: Roman Grametbauer

Images: Boris Renner, Tomáš Souček, Richard Sklář, Radek Lukša, Bohuslav Krzyžanek

Production and distribution: R MEDIA, s.r.o.

Design and typeset: R MEDIA, s.r.o.

Registration: MK ČR E 18829

Submission deadline: 28. 2. 2013

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 fi rms. Questions, remarks and article

ideas can be sent to: pr@nwrgroup.eu. An electronic version of the magazine

including active links is accessible on the Company website.

With a QR code reader

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you do not have to retype

a web address. Just scan

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into your phone

3

Open Mine 1 I 2013

economy

4-5 NWR aims to become Europe's leading marketer

of coking coal

5 Peter Carr appointed Head

of Business Development at NWR

interview

6–9 Ján Fabián: 2013 will be a challenge, but OKD is

prepared

technology

10–11 Deilmann-Haniel Mining Systems GmbH:

a strategic presence on the Czech market

12–13 Mines in Karviná connected underground by a

unique gateroad

responsibility

14–17 Promising prospects

for the Moravian-Silesian Region

18–19 A car for a smart idea, why not?

reclamations

20–21 The elimination of NWR's environmental impacts

is crucial

responsibility

22 NWR helps raise interest

in mathematics at schools

23 Karviná and Orlová town squares livened up

thanks to OKD

Content

6–9

Ján Fabián: 2013 will be

a challenge, but OKD is

prepared

10–11

Deilmann-Haniel Mi-

ning Systems GmbH:

a strategic presence

on the Czech market

12–13

Mines in Karviná con-

nected underground by

a unique gateroad

14–17

Promising prospects

for the Moravian-Silesi-

an Region

20–21

The elimination of

NWR's environmental

impacts is crucial

4

Open Mine 1 I 2013te

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Can you summarise the strategy update for our readers?Coming in as the new Executive Chair-

man gave me and my colleagues an op-

portunity to look at the things that we do

really well today, take those strengths

and evolve an appropriate strategy for

the next fi ve years.

We see no reason why we can’t take the

fi ve million tonnes of coking coal that

we now sell every year and double that

to around 10 million tonnes by 2017. We

want to do that through a mixture of

mining projects and marketing initia-

tives. These would include strengthen-

ing our involvement in the coking coal

imports into Europe and expanding our

sales into Western Europe, whilst retain-

ing Central Europe as our natural core

market. We want to become a ‘one-stop

shop’ for European steel customers of-

fering them a wider range of coking coal

qualities. And we want to improve fur-

ther our mining operations so that NWR

becomes more productive and uses

lower Capex as a top fi ve global leader in

safety in deep underground coal mining.

And the market opportunity exists for doubling your coking sales by 2017 in Europe? To achieve our 2017 target of reaching

10 million tonnes of coking coal sales,

we took a closer look at global coking

coal trade fl ows. Coking coal produc-

tion in Europe has been on a downward

trajectory for decades. To compensate

for this, and for the coking coal qualities

that cannot be regionally sourced, there

has been an increase of imports into

Europe. The estimated supply gap of

coking coal in Central Europe is around

four million tonnes a year, reaching

more than 50 million tonnes annually for

the whole of Europe. And that number

is set to grow to about 70 million tonnes

over a fi ve-year period. And in all of this

we see the opportunity for us to build

on our existing skills. NWR has been, to

some extent, importing premium coking

coal grades and blending it with our own

coking coal mix in relatively small quan-

tities – around 150,000 tonnes a year.

We know our customers; we know what

they want; we’ve got very strong logistics

and we understand product mix require-

ments. So, in terms of the rationale and

the supply gap that exists today, and is

growing, we think that is a very interest-

ing economic proposition.

Can you explain what you mean by NWR becoming a ‘one-stop shop’ for European steel customers?Yes. To take full advantage of the above-

described dynamics, the second area of

development is to focus on building our

marketing capabilities to ensure we can

market all qualities of coking coal to a

wider group of European steel custom-

ers. We aim to market both coking coal

that is regionally available (semi-soft

grades, mid-volatility hard coking coal

and PCI coal) as well as premium hard

coking coal grades that are being im-

ported into Europe.

As I mentioned, we have been importing

small amounts of coking coal already to

blend into our mix. But we see therein

an exciting potential opportunity. Not

necessarily just to supply to Central and

Eastern Europe. But, obviously, given the

numbers that I’ve just shared with you,

to a wider audience. And, particularly, we

think that there are a number of major

players out there with very specialised

steel manufacturing businesses with

NWR aims to become Europe's

leading marketer of coking coal

At NWR’s 2012 fi nancial results presentation in London in

February, Executive Chairman Gareth Penny unveiled the

Company’s updated strategy, aimed at turning NWR into

Europe’s leading miner and marketer of coking coal.

Gareth Penny,

Executive Chairman of the Board

5

Open Mine 1 I 2013

whom our relationship could grow quite

signifi cantly over time.

So, building on the trading side of the

business, building on our marketing ca-

pabilities, becoming a ‘one-stop shop’ is

something we believe is a very interest-

ing part of our strategy going forward.

Tell us about the goal to optimise our mining operations, safely.We recognise that a strong safety

culture and improved operations at OKD

will be key to enabling us to achieve

our strategic plan. And so we want to

make sure that we optimise the existing

mines, we improve our safety record

down to less than fi ve lost-time injuries

per million hours worked. Management

is committed to pursuing a ‘safety-fi rst’

attitude, and will implement further

safety training and targeted fi nancial

motivation. By 2017 we aim to be ranked

by the industry-wide metric LTIFR as

a top fi ve global leader in deep under-

ground coal mining safety.

Additionally, through optimisation of

the long-term mining plan and supple-

menting Western European suppliers of

mining equipment with regional produc-

ers, we aim to reduce our maintenance

CAPEX to an annual rate of EUR 100-

150 million in 2017.

At our subsidiaries, maintaining our

social license to operate is absolutely

crucial to our long-term business

success. We engage in regular and

constructive dialogue with all of our

stakeholders on our current activities

as well as potential future plans. And

so, whether it be the amount of land

we rehabilitate, whether it be lower-

ing emissions of nitrogen, or sulphur

or carbon, these are all very important

parts of our business. I think we’ve

shown an important trend to being on

the right side of history in terms of how

we think about the business and how

we run it, and in terms of our social

license to operate.

An updated NWR strategy to create the

Europe’s leading miner and marketer of

coking coal.

NWR2017

10Mtpa

of coking coal

sales

to Europe

All coking

coal qualities –

regional

& imported

Among top 5

global leaders in

safety (LTIFR)

Maintenance CAPEX

EUR 100-150m

Peter Carr appointed Head of Business Development at NWR

NWR has announced the appointment

of Dr. Peter Carr to the newly created

position of Head of Business

Development. Dr. Carr, a British mining

engineer who has worked in South Africa,

Australia, Scandinavia and the United

Kingdom in a mining career spanning

more than 30 years, joins the Company

from ArcelorMittal Mining. As General

Manager for Exploration and Business

Development he was responsible for

identifying opportunities to grow the

business through the acquisition of

coking coal and iron ore properties.

As Head of Business Development at

NWR, Dr. Carr will be responsible for

expanding the quantity and range of coal

that NWR is able to offer to customers

in Europe by supplementing the existing

supply from OKD’s mines. Various

options will be evaluated, including

mine acquisition, development projects

or commercial arrangements. Initially

efforts will focus on the identifi cation

and evaluation of a potential overseas

acquisition. If a value accretive coking

coal target is identifi ed he will lead

the acquisition process through due

diligence and transaction negotiations to

post-acquisition integration. Subsequent

to one or more successful acquisitions,

his responsibility will also include

management of organic development

projects in Poland and the Czech

Republic.

“I welcome Peter to the team at NWR,

where his role will be central to how we

develop and grow the business over the

next four or fi ve years. Peter will work

closely with Marek Jelinek, Jan Fabian

and I,” said Gareth Penny, Executive

Chairman of NWR.

During his seven years with the

ArcelorMittal group, initially as a

member of the Mining M&A team and

then Head of Business Development,

he was instrumental in securing coal

acquisitions in Russia and the USA,

iron ore acquisitions in Liberia, South

Africa, and Canada, as well as minority

investments in mining operations in

Australia, South Africa and Mozambique.

During this period, he developed a

comprehensive insight into metallurgical

coal opportunities around the world.

Prior to joining ArcelorMittal Dr. Carr

held senior management positions with

mining and geotechnical consultancies

in the United Kingdom, where he was

responsible for preparing competent

persons or technical due diligence

reports associated with the privatisation

or acquisition of various coal mines in

Europe. A Chartered Engineer, Fellow

of the Institute of Materials, Minerals

and Mining, and a Member of the

South African Institute of Mining and

Metallurgy, he graduated with a BSc

in Mineral Exploitation and earned his

PhD in strata mechanics from Cardiff

University, Wales.

6

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Shortly after his appointment as CEO and Chairman

of the Board of Directors of OKD, Open Mine met Ján

Fabián to discuss some of the big challenges facing

the company this year: an uncertain European market

and falling demand among regional steelmakers and

energy producers.

Ján Fabián: 2013 will be a

challenge, but OKD is prepared

Ján Fabián is clear about how to man-

age the situation, emphasising effi -

ciency, diligent cost control and safety

enhancements at OKD’s mines. Safety,

as always, comes fi rst.

What are the major differences you see at OKD compared to when you joined the company in 2007?Whoever visits our mines and does

the comparison would certainly notice

major differences in equipment, thanks

to the Productivity Optimization Pro-

gramme 2010. I can say today that, with

our state-of-the-art technology, we are

among the best-equipped mining com-

panies in Europe. We don’t fear global

benchmarking either.

Another signifi cant change has been the

attitude of our people to their work. And

this applies both to miners and white-

collar employees. People are more open,

they are more involved in team work,

they aren’t afraid to voice an opinion or

to state their case if they think they are

right.

In the case of our miners, their attitude

to work is closely connected to safety.

We have purchased personal protection

equipment for miners worth more than

half a billion crowns, and it’s much safer

to operate the new equipment than the

old. But new machinery cannot do it

alone: the most important factor in safe

work always was and will always be in

the mindset of people.

What can be done to further enhance safety? How do you make people more responsible for safeguarding their health?First of all, I have to say that a lot of

work has already been done in the fi eld

of safety over the past fi ve years. I’ll

continue the trend set by OKD under the

management of Klaus-Dieter Beck, and

what I would additionally like to focus on

and to emphasise this year is training.

We would like to further improve the

quality of education and to make it more

attractive so that employees don’t see

it as a time-consuming necessary evil

but as something that makes them feel

more responsible for themselves and

their colleagues.

I’ll also require safety inspectors to be

stricter when supervising compliance

with regulations and instructions. Every

injury will have to be duly investigated.

This applies twice as much to inju-

ries caused clearly by ignoring safety

regulations. If there is a serious accident

caused by negligence, such dangerous

activity must be stopped. We must not

compromise.

This is quite dramatic…Yes, but we can only meet this year’s

priority target, which is no fatalities at

our mines, if we combine a whole set of

such measures.

We’ve taken a lot of steps and many of

them are conceptual. In the autumn, we

7

Open Mine 1 I 2013

established a new position of Safety

Manager at every mine. I expect the

Safety Managers to come with ideas

and initiatives of what to improve re-

garding technical equipment, work pro-

cedures, training content and curricula.

I don’t just want to hear positive news;

I want to hear what we could be doing

better, what we can share across the

company and I want OKD to adequately

respond to them.

What I’ve just described is related to our

new Safety Campaign that we’ve pre-

pared for 2013 that, compared to previ-

ous years, contains some new issues.

We keep alluding to the issue of people assuming responsibility for their own health and safety and for the health and safety of their colleagues. Have you seen changes in this area over the years that you’ve been with OKD?I think there’s room to improve, although

I have to say I’ve seen quite a bit of pro-

gress in this arena. It’s given by a wider

social context: the public expects, and

puts pressure on, companies to provide

safe job opportunities; such issues

are perceived in a very sensitive way in

the media or whenever people talk to

families or friends. Extraordinary events

involving multiple serious injuries or

even fatalities that happened decades

ago in our region or in our neighbour-

hood in Poland are hard to imagine

for today’s society; they are simply not

contemplated by people.

You were talking about investment into equipment that besides effi ciency also enhanced work safety. Can you be more specifi c?There are many aspects. I’ll mention

just a few of them, at random. The new

automated shields provide better roof

control in longwall faces, so the risk of

injuries caused by roof fall is lower. The

new equipment sets are more robust;

shearers are equipped with a water

spray system reducing dust exposure

in longwall faces. We have changed

gateroad development systems and are

using more roof-bolting.

There’s been a real leap in quality over

the past few years: our mines are now

the safest in OKD history and we can

benchmark ourselves against the

world’s top mining companies. And all

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this despite some of the most diffi cult

geological conditions in the world.

The economic situation in Europe in general is not easy. Economic forecasts often become outdated before they are read. Nevertheless, where would you like to see OKD in fi ve years time, and how does OKD face the diffi cult situation this year?Every activity needs to be approached

with the highest possible effi ciency.

This applies to development, longwall

mining, logistics, coal preparation and

administration. Recently, the economic

situation and the market have showed

a signifi cant change. We have to strictly

check every investment; every crown

has to be turned twice before a decision

is taken on its spending.

Of course, I would like to see OKD as a

company with excellent results invest-

ing in its further development. What is

of equal importance to me is that I’d like

to improve the way people perceive OKD.

I’m talking about politicians on the local

and national levels, and the public from

the region where we operate and around

the country.

What specifi c steps do you want to take to enable people from the other side of the country to positively perceive a company that doesn’t interfere with their lives?This cannot of course be achieved with

declarations. We need to start with

ourselves, inside OKD. People in the

company must feel the change in atti-

tude among the managers and direc-

tors. What people read in the papers or

see on TV must correspond to the inner

life of the company.

We have to act as a single company,

rather that state that there are mines in

the Karviná and Frýdek-Místek districts,

there are OKD headquarters in Ostrava

and people in the mother company NWR

in Amsterdam. In terms of safety, invest-

ment or fi nancial results we are and we

will be assessed as one company. Peo-

ple must not separate in their head the

mines on one side and the headquarters

on the other.

You were talking about the perception of the company. So what is the importance of OKD for the region where it operates,

and for the entire country? I am asking about the economic and all-society impacts because of the company’s plan to expand coal mining at Karviná Mine into new residential areas has met opposition.We are the largest employer and the

most important economic entity in the

Moravian-Silesian Region. And this

is not only about employees. We have

our suppliers on one side; their exist-

ence in many cases depends on our

activities no matter whether they sup-

ply equipment, material or services

to us. They can be large companies

with hundreds of employees or small

traders.

On the other hand, we have two types

of customer in the region: steelmakers

and energy producers. Historically, we

are connected via an umbilical cord; in-

dustrial entities in the region are closely

interconnected. Any problems we may

face will have an impact on them; their

problems are infl uencing us, too. A

healthy balance of all parties needs to

be established so that companies in

the region can operate. This applies to

the price of our coal supplies as well as

to the cost of equipment delivered by

steelmakers to our mines. We have to be

able to fi nd reasonable compromises.

On top of this, we are working in a region

that historically faces specifi c social

Ján Fabián is aware of having resumed his function in a year that is diffi cult for OKD.

He fi rmly believes that the company will be able to handle the tough situation.

9

Open Mine 1 I 2013

features and high unemployment where

heavy industry remains a key part of the

economy. It is impossible to jump from

the traditionally strong heavy industry to

new types of industries. The infrastruc-

ture and skilled manpower do not exist.

Miners or steelworkers will hardly turn

into programmers in a software-produc-

ing IT company from one day to another.

Let’s get back to organisations in the Karviná region disagreeing with coal mining expansion because it could infl uencethe lives of hundreds of people…Indeed, I can see the entire situation

through the eyes of the Karviná people

who are not connected to our company

and thus do not see the importance of

us being active in the region. I am aware

of the fact that we are interfering with

their lives and I can understand their

personal motives, or political profi les.

The development is vital for us as a min-

ing company and we are aware of the

fact that we can be successful only if we

keep explaining, arguing our points and

referring to different possible scenarios

of what would happen if we were to

leave the region.

I think this is the heart of the mat-

ter. Personal opinions are in confl ict

with matter-of-fact arguments. At this

moment, politicians - local or national

- university staff, professional associa-

tions, media and non-profi t organisa-

tions should enter this process. Explain

in a matter-of-fact way the scenarios

of all the imaginable options and their

consequences for the region. It is not

fair to know and present only a single

point of view.

I think personally that the Karviná

industrial zone that is often mentioned

as an option to our activities for keep-

ing employment in the region cannot

compensate for the thousands of jobs

at OKD. This applies Karviná and other

big towns such as Orlová and Havířov;

there are no simply substitutes for OKD

and its suppliers as employers at the

moment.

You’ve mentioned politicians and the necessity for them to openly declare their standpoints. Is OKD satisfi ed with the current legislative status?I think that we’ve always been able

to adapt, historically, to the legal and

political environment. We have to run

our business here because this is where

the coal is underground and it cannot be

moved. A stable long-term well-defi ned

legislative framework is crucial for us.

We take decisions well ahead of their

execution, involving high expenses and a

certain level of uncertainty. If the Energy

or Raw Material Policy changed every

two or three years, we could not work ef-

fi ciently. We have to be patient and keep

explaining our targets because, in our

case, it is a long-distance run.

What challenges or major projects are you currently dealing with at OKD?

We have successfully completed the

POP 2010 programme that I mentioned

at the beginning. We keep implement-

ing actions in the PERSPective 2015

programme. To be more specifi c, in

December we completed a connecting

cross-cut between Karviná and Darkov

mines. It is a unique structure in many

aspects (cf. page 12) and will help us in-

crease effi ciency, reduce operating cost

and improve the environmental indica-

tors of our activities in many areas.

We have been implementing SAP to pro-

vide more effi cient cost management

and control thanks to transparent pro-

cess settings. We will be able to monitor,

analyse and control our activities better.

The logistics and transportation up-

grade project continues at OKD as it is

rolled-out from Darkov to other mines.

We are deepening the shaft at ČSA

and resolving possible problems with

deeper sub-fl oor mining and access-

ing new areas for further development

of the mine, as I described earlier. And

at Paskov mine we are getting ready to

build a central air-conditioning system.

2013 will be a diffi cult year and we will

have to track carefully the actual avail-

ability of capital expenditure, but we

have to and we will continue investing

because it is vital for our future develop-

ment.

Marek Síbrt

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Deilmann-Haniel Mining Systems GmbH (dhms),

a German manufacturer of mining, shaft sinking

and tunnelling equipment, has opened a branch

offi ce close to OKD mines in Moravian-Silesia, to

the benefi t of both parties. Now it is looking for

more local suppliers.

Deilmann-Haniel Mining Systems

GmbH: a strategic presence

on the Czech market

built on the premises of a former mine

and won the Czech industry ministry’s

2010 ‘Brownfi eld of the Year’ award. The

branch opened for business last Febru-

ary after the company, which has its

production facilities and headquarters

in Dortmund, Germany, decided to move

closer to OKD.

Under the POP2010 programme numer-

ous roadway driving sets from dhms

were purchased and put in operation on

all four OKD Mines in Czech Republic. In

order to provide regular maintenance,

servicing and repair to ensure effi cient

and trouble-free use of the equipment,

a subsidiary close to OKD became es-

sential.

Investing in the region to gain strategic advantagedhms representatives say that open-

ing the facility close to OKD is strate-

gically important as it offers further

development opportunities. “Currently,

around 42 machines – roadheaders,

drill jumbos, loaders and dinter loaders

are operated at OKD mines. It is logical

that we want to ensure our cooperation

with OKD is effi cient, economical and

comfortable; hence, we have to be as

close as possible to our customer. In our

service facility in Horní Suchá we are

able to do almost complete overhauls,

service and revision operations. We don’t

have to ship the entire machine back

to Germany, which, of course, makes a

positive impact on cost effi ciency,” said

More than a century of tradition guarantees qualityThe history of dhms, now part of the AT

Mining Tech division of Germany’s ATON

Holding, dates back to 1888 when Carl

Deilmann founded a company for min-

ing services in Dortmund. With a history

of now 125 years dhms has developed

from a repairs and steel construction

into a manufacturer of high qual-

ity equipment and machine systems.

Success on the domestic and interna-

tional markets has meant that dhms

products are now being used on all fi ve

continents. The effi ciency and qual-

ity of dhms machines have been tried

and tested at mines and construction

sites under the most severe operating

conditions.

Apart from classic devices such as load-

ers, dinting machines, drill jumbos and

system components for roadheading

the product range also includes gas-

and long hole drill rigs and equipment

for shaft sinking. Since 2010 dhms

additionally offers innovative low height

roadheaders in two weight classes with

integrated drilling bolting devices. These

roadheaders further enable dhms to

be recognized as a solution provider for

both types of roadway development –

drill and blast and cutting.

dhms branch in CZThe dhms facility in the František indus-

trial zone in Horní Suchá in the Ostrava

region shines with newness; it was

The dhms branch in the vicinity of OKD

mines is of strategic importance and

provides mutual benefi ts.

The dhms branch offi ce in the industrial

zone in Horní Suchá on the premises of

the former František mine.

11

Open Mine 1 I 2013

Michael Wasik, manager of the Czech

branch of dhms.

Having a branch offi ce so close to a

major customer like OKD enables dhms

to shorten reaction times, do quicker re-

pair and refurbishment jobs and to gen-

erally provide the client with optimum

services. dhms provides a 24 hours/7

days service to cover OKD’s needs. With

a response time of 4 hours at any time

of day, resolving any issues that may

have emerged or replacing a damaged

part from stock.

OKD Miners are able to call dhms at any

time for support, whether a request for

repair, some advice or a spare part. The

cooperation between dhms and OKD is

additionally based on a life cycle man-

agement system (LCM).

OKD mines were the fi rst to use the new

dhms roadheader R75. “These ma-

chines fi t the bill when highly effi cient

roadheaders are requested in order

to achieve good daily advance rates

together with high support quality and

comparatively reduced man power con-

sumption» said Wasik, adding, that the

very demanding geological conditions

at OKD mines provide the best testing

environment for the new technology.

Skilled manpower = key to success The mother company in Germany

provides jobs to approximately 300

employees; the Czech facility currently

employs twenty. “We are aware of the

importance of the quality and skills

of our technicians, that is why we put

major emphasis on continuous training”

said the manager Kristýna Paličková.

She also notes that most of their service

technicians have long term experience

in underground mining. This is a real

advantage as they are fi t for going un-

derground at any time to solve an issue

on the spot.

The location of the facility in the Czech

Republic is of strategic importance for

dhms. Poland is not far away and most

Polish coal mines are using also dhms

machines. The Czech facility with its

expanding spare part stock is planned

to support Polish market as well as

dhms activities in Russia and Ukraine

in future.

“Customers from different mines abroad

are visiting us to see the dhms equip-

ment in operation at OKD mines. They

are interested in the experience of the

OKD miners who know perfectly their

functions and strengths,” says Wasik. He

points out that e. g. Russian and Ukrain-

ian visitors often bring along representa-

tives of authorities who focus on safety

standards and ergonomic features.

An opportunity for local businessEven though the core of the manu-

facturing, development and design

business remains in Dortmund, dhms

has started looking for subsuppliers

in the Moravia-Silesia. “The fi rst word I

must mention in this context is qual-

ity. We are already working with some

regional subsuppliers and we are look-

ing for more. We want to work with local

companies for simple reasons: it will be

less expensive and more effi cient due to

logistics, and on the other hand we will

give jobs to local people,” said Paličková.

More information is available

at www.dhms.com.

Marek Síbrt

State-of-the-art development equipment sets from dhms were purchased for OKD mines within the POP 2010 capex project.

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Mines in Karviná connected

underground by a unique gateroad

The completion by OKD of the longest underground

structure of its kind in the Czech Republic will reduce

costs, mitigate the impact of coal mining on the

environment and make hauling coal to the surface

more effi cient.

100,200m3 of material was excavated,

4,050 tonnes of roof supporting mate-

rial such as steel arches, connecting

elements, steel mats and distance bars

was put in place, plus 215 tonnes of

monorail segments and 10,570 tonnes

of concrete.

An excellent job by OKD mine surveyorsPol-Alpex was contracted, after a

competitive tender process, as the main

supplier. They had two mining crews

totalling 70 people worked continuously,

i.e. 168 hours a week, on the project. The

development deadline was set for the

end of 2012 but the cut-through was ac-

complished ahead of schedule. The last

shot that ended up in the cut-through of

both development faces was performed

at a depth of 870m.

The unique underground gateroad

between Karviná and Darkov mines

connected, ahead of schedule, on the

symbolic date of 12.12.2012. Once it is

fully fi tted, by July 2013, this more than

3km-long connecting cross-cut will be

used to haul all coal produced at the

ČSA site of Karviná mine to the Darkov

preparation plant. This strategic gater-

oad will facilitate the two-way transpor-

tation of material, equipment sets and

men, and is designed to be in use for at

least 20 years.

The fi rst idea to connect Karviná and

Darkov mines dates back to 2008. The

project was revived two years later and

development activities began in April 2011.

The investment required to complete

the development and installation of the

gateroad totals almost CZK 1.3 billion.

A unique gateroad due to its parameters and technologies “This gateroad will allow us to haul

the coal mined at the ČSA site, Karviná

mine, to the state-of-the-art prepa-

ration plant of the Darkov mine the

capacity of which has not been used

to the full yet. As the older prepara-

tion plant at the Karviná mine is to be

idled step by step, we will save operat-

ing cost and increase cost effi ciency;

environmental indicators related to our

activities and impacting the citizens of

the Karviná region will also improve sig-

nifi cantly. Darkov’s preparation plant is

equipped with state-of-the-art world-

class technologies that leave minimal

impacts on the environment,” said Ján

Fabián, OKD CEO and Chairman of the

Board of Directors.

Besides its length, the cross-cut is also

unique in its cross-section and the

development technology applied. Its

minimum width is 6.7m with a height

of 4.5m. At its maximum cross-section

it widens to 8.7m and has a height of

5.5m. Similar structures were built in

the past using tunnelling machines;

this cross-cut was developed by

standard drilling and blasting methods

using drill jumbos and loaders. For

the fi rst time at OKD mines, two-boom

DH-DT2 drill jumbos with working

platforms were deployed in order to

improve safety during the execution of

the work.

A length of 1,580m was developed from

the side of Darkov mine; Karviná mine

developed 1,451m. In the development

of the connecting cross-cut, some

DH-DT two-boom drill jumbos were used at OKD mines for the fi rst time when

implementing this project.

13

Open Mine 1 I 2013

The experts say it is easy to connect a

gateroad within one survey grid. In this

case, however, the miners developed the

gateroad one face against the other in

two different grids and in two differ-

ent mining license areas. Connecting

surveys had to be performed fi xing base

points in order to unify both grids. That

is why this project was classifi ed in the

highest special survey category. Besides

the professional work of the experts,

the project succeeded also thanks to

the acquisition of new high-accuracy

measurement devices.

Both development faces were con-

nected with an accuracy that is

unprecedented in company history.

“Deviations in the cross-section of

both development faces were in the

order of centimetres. This is a life-

time success for our mine surveyors,

confi rming their expertise and dem-

onstrating their excellent skills,” said

Roman Dušička, Operations Manager

at Karviná mine.

A unique conveyor systemThe haulage system between Karviná

and Darkov mines will have two parts.

The fi rst part, connecting Floor 11 at

Karviná mine to Floor 9 at Darkov mine,

will include fi ve conveyor belts and

two chain discharge conveyors. “They

are 1.4m wide, run at 2.5m/s, and have

an hourly capacity of 1,500 tonnes of

material. Their overall length is 2,925

metres. The most interesting is the third

conveyor, that over 1,755m of its length

climbs a super-elevation of 200m. That

is why it was equipped with six frequen-

cy-controlled electrical motors, 250kW

in output each,” said Marian Weiser, OKD

Infrastructure and Logistics Manager.

The second part of the haulage line con-

sists of four conveyor belts and one con-

veyor chain connecting Karviná mine’s

bunkers. This way their capacity can

be used to the full as the coal supplied

to Darkov’s skip hoist and preparation

plant can be controlled. “The skip and

the preparation plant will have to pro-

cess the coal produced in three mines,

not only Darkov and Karviná, but ČSM

too. A series of sensors and cameras

connected to a high-capacity fi bre optic

communication network ensure full

operational and safety monitoring. The

main control centre will be at Darkov’s

control room,” explained Weiser.

The entire set-up will require half a year

of structure adjustments and instal-

lations. Besides OKD employees, 12

suppliers will work on the set-up. All

these activities will lead to a functioning

state-of-the-art haulage system that

will, from July, replace the skip hoist

operations at ČSA site, Karviná mine.

Marek Síbrt

From July on, all coal mined at ČSA site, Karviná mine will be hauled via the connecting cross-cut to the modern coal preparation plant

at Darkov mine.

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Prior to the 1989 Velvet Revolution many

people in what was then Czechoslovakia

held a particular view of Ostrava, OKD’s

hometown, and the surrounding Moravi-

an-Silesian Region. It was the country’s

“steel heart” and key to the fi ve-year

economic central planning of Socialism;

a region with the highest concentration

of industry, and high wages for miners

and steel workers. It was also a place to

where many people moved, often under

duress, and an area with high levels of

crime and alcohol consumption. That is

how people in other parts of the country

perceived Ostrava and the surrounding

region.

Life in the region has changed substan-

tially in the more than 23 years since the

Revolution, and so has its image in the

eyes of many around the country. Never-

theless, many Czechs still have a some-

what out-dated, perhaps biased, view of

the region. “Our region cannot have any

lesser ambition than becoming the most

dynamically developing one in the coun-

try. And that’s my goal too. It should be a

modern and self-confi dent region based

on its industrial tradition and offering

jobs to people. We don’t want to rest on

the region’s history,” says Miroslav Novák,

the region’s Hejtman, or Governor.

The Moravian-Silesian Region is not

only about mines and steel mills, and

neither is it a black smudge on the map.

It has been developing dynamically as

a region, uniquely combining new and

traditional industries. Learning centres

produce skilled, technically oriented

manpower, and centres of technologi-

cal excellence have been established in

the region. Despite some persisting is-

sues, the environment has signifi cantly

improved thanks to land reclamation in

areas impacted by coal mining and to

investments aimed at reducing the en-

vironmental liabilities of steel mills. Cul-

tural events organized in the region have

become known across the country, such

as “Colours of Ostrava” Festival, and the

steep slopes of the Beskydy Mountains

and the spas of Karlova Studánka in the

Jeseníky Mountains and of Darkov at-

tract thousands of visitors annually.

The region has many visitor attrac-

tions, including Ostrava Zoo. the Mining

Museum in the Landek Park, the unique

industrial premises of the Lower Vítko-

The region where NWR operates has a strong

industrial tradition and is confi dent about its future.

Traditional industries co-exist with new hi-tech fi rms,

centres of excellence and the beautiful Beskydy and

Jeseníky Mountains of Moravia-Silesia.

Promising prospects

for the Moravian-Silesian Region

Besides industrial premises, the Moravian-Silesian Region offers also beautiful natural sites. Visitors from the entire Czech Republic

come in summer or winter to visit especially the Beskydy and Jeseníky Mountains.

15

Open Mine 1 I 2013

vice Area, the DinoPark in Doubrava in

the Karviná district, the Michal mine, a

natural cultural monument in Ostrava,

and the Lipiny Golf Resort in Karviná,

which was built on land reclaimed from

mining activity.

Coal was the triggerCoal triggered the development of what

was once an agricultural region on the

periphery of the Habsburg monarchy.

The fi rst deep coal mine in the Ostrava-

Karviná district was established in 1782,

the Anselm mine at the premises of

the Landek Park in Ostrava, and in the

1830s iron was fi rst produced in Ostrava-

Vítkovice. The development of railroad

transportation, iron production and coal

mining changed the face of the region

signifi cantly, turning it into the industrial

heartland of the monarchy. The popula-

tion increased tenfold over a short period

as people came in search of work.

A highly organised industrial chain

was established, that began with coal

mining, led to coke processing, iron

production and on to the manufacture

of machinery and engineering equip-

ment and products that nowadays often

provide high added value. It was this

interconnected chain and its inherent

advantages that ensured industry re-

mained the most important employer in

the region, despite the restructuring and

closure of many ineffi cient operations

after the fall of Communism.

Coal from OKD is supplied to steel gi-

ants such as ArcelorMittal Ostrava or

Třinecké železárny, which then deliver

their products to customers such as

Vítkovice Machinery Group, a maker

of engineering technologies. Chemi-

cal companies, such as BorsodChem

MCHZ, buy OKK’s coking by-products.

And we could continue.

“The only steel mills left in the Czech

Republic are located in our region; coal

mining and the production of coke and

raw iron generate a substantial part of

national GDP and provide jobs, direct or

indirect, to tens of thousands of people.

And there are such effi cient methods of

cleaning the industrial emissions avail-

able nowadays that these companies

can operate near residential areas, too,”

adds Novák.

Industry and the region: ups, downs and transformationsThe historic importance of coal mining

for the region is documented by the

fact that, at the end of the 19th century,

more than a half of Ostrava’s population

worked in heavy industry. Both world

wars, the interwar Czechoslovakia

and the subsequent 40 years of

Communism brought many setbacks

and signifi cantly marked the region. The

demands placed on coal mining and

iron production by both the Nazi and

Communist regimes were extensive.

The region’s annual coal production

exceeded 20 million tonnes in 1943, and

stayed at that level under the planned

economies from 1960 to 1989.

As the Communist region fell, inef-

fi cient, unprofi table and exhausted

mines, mostly in Ostrava, were shut and

the entire industry was restructured.

The last coal was mined on the territory

of Ostrava on 30 June 1994 at Odra

mine. Only the Karviná part and the

southern part around Frýdek-Místek

where OKD operates remain active now.

Coal mining and steel mills: connected by an umbilical cordCoal mining in the region is inherently

connected to iron and steel production.

The roots of iron production go back

to the 17th century, when it was fi rst

produced in small charcoal furnaces at

the foot of the Beskydy Mountains. At

the beginning of the 19th century work

started on the construction of Emperor

The symbol of Ostrava: Industrial premises of the Lower Vítkovice Area are currently subject to a dynamic change and turn into a centre

of culture, social events and education.

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Ferdinand’s Railway that would connect

Vienna and Galicia. The existing iron

works were unable to meet demand and

so plans were drafted for a new factory

in the then village of Vítkovice. This

strategic location met all the necessary

requirements: proximity of a hard coal

deposit (the latter Hlubina mine) and

water, the Ostravice river. In the 1830s

operations developed quickly with the

need to supply railroad construction

material.

Two shafts were sunk in Vítkovice in the

1850s to mine coal and a coking plant

was built between Hlubina mine and the

Vítkovické železárny blast furnaces to

create a rare industrial complex cover-

ing the entire process of coal mining,

coal processing, coke production and

raw iron production. That was oper-

ated into the 1990s. The last coal was

hauled to the surface of this mine on

30 June 1992; the shafts were refi lled

in 1995/1996., and iron production

was idled in 1998. This unique indus-

trial complex has now become a Czech

national cultural monument and an EU

heritage site, it being the only one of its

kind in Europe.

This dominant feature of industrial

Ostrava is no longer dormant, nor has

it fallen into disrepair. On the contrary,

it has been pulsating with life as a

symbol of the region’s dynamism. As-

sociation of Legal Entities "The Lower

VÍTKOVICE" has launched an ambitious

project to both maintain the industrial

heritage and to breathe new life into

them for educational, research, cultural

and other activities. The premises host

music festivals and an old gas store has

been refurbished into GONG - a multi-

purpose hall and the former 6th Central

Energy Station holds an interactive ex-

position entitled “World of Engineering”

explaining the development of engineer-

ing knowledge.

Steel and coke production: more environmental-friendly operationsIn 1942, the steel mill in Ostrava-

Kunčice was established as the basis of

Vítkovické železárny, or steelworks. After

the collapse of Communism and a bout

of industry restructuring, the steel mill

was acquired by the steel giant Arcelor-

Mittal. Together with Třinecké železárny,

it provides jobs to thousands of people,

placing it among the largest employers

in the region. Both companies together

produce approximately 5 million tonnes

of raw steel a year.

Jan Světlík, owner of Vítkovice Machin-

ery Group, believes the future of the

steel business is not without risk but he

also sees opportunity in the competi-

tive abilities of the region. “It has a key

infl uence on auxiliary industries such as

mining and engineering and that is why

it is necessary to keep it in the region.

Our industrial region may offer jobs to

a whole range of people and then it can

develop their leisure-time. More people

get qualifi ed jobs, in education or ser-

vices for example. However, everything

is related to everything else; the core is

good quality job opportunities that are,

in our region, related mostly to indus-

trial fi elds,” he says.

Region as a target of strategic investment The region has become a strategic

location for international companies at-

tracted by the infrastructure, industrial

zones, community facilities, skilled

manpower and competitive cost base.

Hyundai built its most modern car fac-

tory in the world close to Frýdek-Místek

and produces 300,000 cars a year. This

brought along many supplier compa-

nies that employ thousands of people

in industrial zones in Ostrava-Hrabová,

Mošnov, Nošovice, Kopřivnice, Český

Těšín and Třinec.

Thanks to skilled manpower, hi-tech

manufacturers established their

headquarters in the region. For exam-

ple, Bang & Olufsen, a Danish com-

pany manufacturing luxury electronic

consumer goods, has its factory in the

industrial zone in Kopřivnice; Tieto, a

Finnish software company opened a

subsidiary in Ostrava and offered jobs

to almost 2,000 people. The same town

also hosts one of the six global shared

service centres of the industrial giant

Siemens, and employs 500 people.

An old gas collector in the industrial premises of the Lower Vítkovice Area has been

refurbished to GONG, a multi-purpose hall seating an audience of 1,500 spectators.

The Lower Vítkovice Area symbolizes the

change process of the Moravian-Silesian

Region and the co-existence of industrial

sites with modern architecture.

Hyundai has decided to build its state-

of-the-art car factory in the industrial

zone in Nošovice close to Frýdek-

Místek.

17

Open Mine 1 I 2013

The Ostrava Mining University in cooper-

ation with Ostrava University in Ostrava

and the Silesian University in Opava

represents an incubator of qualifi ed and

talented human capital that is the future

hope of the region. The university hosts a

Science and Technology Park that helps

entrepreneurs to enter the market by

providing consultancy, an environment

in which to develop their ideas and and

other benefi ts. In January 2013, work

started on a CZK 1.8 billion IT4Innova-

tions supercomputer centre on the

university campus. This centre is set to

become one of the most active in Europe

and will be used mostly to compute

mathematical simulations for the car

industry and other traditional sectors.

Air quality and jobsWhat most troubles the region’s citi-

zens? What are the major risks? Most

would agree on two areas: employment

and air quality, particularly in winter.

“The air quality is not good even though

it has improved signifi cantly over the

past 20 years. Emission levels measured

20 years ago were many times higher

than now, and it’s our target to keep

improving the environment with actions

at the local, regional and international

level,” said Novák.

His words are borne out by the facts.

ArcelorMittal Ostrava has invested

hundreds of millions of Czech crowns to

make their coking plants more environ-

ment-friendly; in 2011, the company also

invested CZK 1 billion in a cloth fi lter that

reduced dust emissions by 200 tonnes

a year. At the end of 2012, Třinecké

železárny announced its plan to ac-

complish environment-focused projects

worth more than CZK 2 billion over the

next three years. OKK Koksovny, NWR’s

subsidiary, opened a new coking battery

in 2011 equipped with state-of-the-art

technology that follows the strictest

environment protection standards.

However, further environment-focused

investments in industrial operations still

remain a key task for the future.

Future: qualifi ed job opportunitiesCreating new job opportunities, coop-

eration between old and new industries,

and supervising the environment com-

bine to make the region an attractive

place to live. “Firstly, we have to offer

job opportunities and decent salaries.

People have to have places to study, to

work, to develop their skills and to earn

a living. If we don’t provide such op-

portunities, people will leave the region

and go elsewhere. And that is what we

cannot allow to happen; our region has

no chance of success have no skilled

people living here,” says Světlík.

“We will remain an industrial part of the

country but one that has opportuni-

ties for future success. This is one way,

among others, to keep young people

here and for the region to be competi-

tive,” concludes Novák.

Marek Síbrt

Pustevny in the Beskydy Mountains is a popular tourist destinations featuring, among others, buildings by Dušan Jurkovič, a eminent Art

Nouveau architect.

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OKD’s Continuous Improvement Initiative had

another successful year in 2012, with employee

ideas generating savings of CZK 216 million.

A car for a smart idea,

why not?

nuses are paid depending on the overall

benefi t to the company. For example,

for the employee whose idea once

implemented saves the company the

equivalent of CZK 1 million there is an

extra bonus of at least CZK 10,000. OKD

last year paid more than CZK 2.5 million

in CII bonuses to employees.

In addition to cash incentives, suc-

cessful employee-inventors may also

win prizes such as vouchers for family

holidays household appliances and

electronic consumer goods at lotteries

held by each mine. Another lottery is

drawn every year for a Škoda Fabia car,

with all employees involved in the Con-

tinuous Improvement Initiative entitled

to participate.

“It is clear that the CI Initiative has prov-

en a success for OKD and we would like

to continue in the programme in years

to come,” said Brodsky. “Our employees

now think more about their work and

how to make it easier, more effi cient

and safer, which is what we wanted to

achieve in particular. On top of this, the

quality of the ideas coming in is growing

all the time.”

Marek Síbrt

Since the introduction in 2009 of the

Continuous Improvement Initiative, or

CII, employees have been successfully

contributing ideas to save costs, cut

down on waste, improve effi ciency and

improve safety at OKD.

In 2012 total savings resulting from

CII projects came to almost CZK 216

million. “Since 2009, ideas and projects

have led to operating cost savings of

more than CZK 850 million,” says Ivan

Brodský, OKD Manager responsible for

the Continuous Improvement Initiative.

Each mine now has its own Continuous

Improvement Manager, and last year

144 Internal Advisors led improvement

teams or provided consultancy and mo-

tivation to employees and contractors to

contribute to the process.

Improvement ideasas a savings tool Last year, employees submitted 847

ideas of which 542 were acknowledged

as meaningful. More than 400 of them

have already been executed, and an-

other hundred or more are currently in

progress. Special optimisation teams

established at all OKD mines last year

came up with an additional 74 improve-

ment projects.

Three quarters of last year’s employee

ideas led to improvements underground,

the rest applied to surface operations.

Importantly, half of the ideas proposed

had a positive infl uence on safety

enhancement and an improvement in

working conditions and the work envi-

ronment.

Employee rewards and bonuses Employees are encouraged and fi nan-

cially motivated to contribute ideas

under the CII programme. OKD pays a

bonus of CZK 1,000 to every employee

who submits an idea that leads to

genuine improvement, and further bo-

Continuous Improvementus IIImppprrroooovvvveeeementtProgramme

Last year, employees submitted 847 ideas of which

542 were acknowledged as meaningful. More than

400 of them have already been executed, and another

hundred or more are currently in progress.

19

Open Mine 1 I 2013

Ho w a fi ve second short-cut saved millions

Last spring, part of ČSM mine’s coal

production was redirected through an

underground cross-cut to Darkov mine

in order to improve haulage effi ciency.

The total peak production at Darkov mine

then exceeded the overall capacity of the

skip hoist used to haul the coal to the

surface. This situation required an urgent

solution, which came via the detailed

analysis and logical thinking of Jaroslav

Koval and Petr Zembol and their team

from Darkov mine. Their idea shortened

the skip bucket travel cycle time at Mír 4

Sever hoist by 5.3 seconds.

That 5.3 seconds led to the saving of

millions. Here’s how: as the travel time

shortens, the number of transported

buckets goes up by 1.03 bucket per hour.

The hoist equipment is operated 17.5

hours per day, therefore it hauls an extra

18 buckets every day. At a capacity of 32

tonnes per bucket, we are talking about

an additional 570 tonnes of coal a day.

The inventors also divided the bucket

cycle time into several stages. The start-

up phase is given by the type and output

of the hoist equipment motor and can

hardly be infl uenced. The travel speed in

the shaft is up to 14 meters per second.

The hoist equipment could go faster but

cannot due to safety considerations,

which always come fi rst.

So, we are left with the last phase of

the travel time. “It’s controlled by a

programmable automatic unit set by the

manufacturer, but after analysing that

we found out that the end phase could be

shortened. We contacted the maker with

our idea and they adjusted the software

in the automatic unit,” explained authors

of the idea. The software modifi cation

saved millions of crowns.

A shorter skip cycle time provides

continuous savings, and the hoist

equipment can be operated for a shorter

time to haul the same volume of coal.

Kamil Pavlíček, Karviná mine mechanic, won the extraordinary award – a Škoda Fabia car – for his idea of installing a joint haulage line

for three development sections saving 5 drive units and 770 m of belt lines.

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For NWR the environment plays a central role in our

approach towards sustainability and is essential to

our retention of a social licence to operate.

The elimination of NWR's

environmental impacts is crucial

7.2 million, 26 per cent of which was fi -

nanced by the European Union. Another

project taken on was the Dino-park.

The Dino-park reclaimed an area of

151 hectares and contains 70 life-size

models of prehistoric animals that can

move around and make realistic sounds!

The park also contains a 3D cinema, a

museum, a gift shop and restaurant.

It was completed in 2009 and attracts

about 180,000 people every year.

EmissionsAs a leading producer of thermal and

coking coal and coke in the Central

European region, with deep-rooted

industrial traditions, we are aware of

the impact of emissions on the overall

air quality for the local population and

indeed the wider environment. This

has infl uenced our drive to minimise

our emissions while also improving our

energy effi ciency.

The production of coke and its coking-by

products have been identifi ed as major

Deep mining usually causes the terrain

to fall below the ground water level. We

therefore focus our efforts on the miti-

gation of such negative impacts through

a number of reclamation projects. Other

important environmental issues for

us include emissions, climate change,

energy intensiveness, and water and

waste management.

Biodiversity and Land ReclamationBefore the start of any mine, two im-

portant documents are submitted to

the authorities: Environmental Impact

Assessment documents, and detailed

plan about the opening and preparation

of the place of extraction.

The documents contain assessments

of impacts on the environment, on the

health of the population, on biodiversity

and on any affected protected areas.

As we are part of the Environmental

Impact Assessment any queries or

comments made by public authorities,

municipalities, non-profi t organisations,

individuals or other relevant parties are

managed to every party’s satisfaction.

The process is complete upon accept-

ance by the Ministry of Environment

of the Czech Republic. The agreement

has specifi c requirements for NWR and

serves as a guarantee for stakeholders

that biodiversity in the given area will

not be compromised. All NWR decisions

in the Czech Republic, including the

comments of participants and the fi nal

decisions are publicly available online at

the EIA Information System (www.cenia.

cz/eia).

Land reclamation and rehabilitation is

central to our biodiversity protection

approach. Setting reclamation targets

takes several steps, from drawing up

concepts to gaining permission from lo-

cal municipalities. In 2011 we complet-

ed reclamation projects on the area of

111 hectares and spent EUR 7 million.

The rehabilitated area since 1993 totals

1,678 hectares. We have helped create

scenic areas and leisure and recrea-

tional parks. Our goal is to concentrate

on several large rehabilitation projects

by 2015; there are currently 87 projects

that are under preparation or being

implemented.

We can get really creative with our

reclamation efforts. One of the major

projects fi nished in 2012 was the crea-

tion of a golf resort called Golf Resort

Lipiny. Currently the reclamation area

covers 51 hectares providing space

for a 9-hole course. It will be gradually

extended in the future to a full 18-hole

course. The project cost more than EUR

The water quality at the Sovinec water

pumping station is checked on regular

basis.

Reclamation project Lipiny – golf

course, area: 51 ha.

21

Open Mine 1 I 2013

sources of pollution, so we have taken

decisive steps via several initiatives

(e.g. COP 2010) to reduce the emis-

sions associated with this. In 2011, our

coking subsidiary OKK reduced its SO2

emissions by 37 per cent and its NOx

emissions by 50 per cent year on year.

A signifi cant factor to air quality in the

Moravian-Silesian Region is particulate

matter (“PM”), which is produced by

the region’s industrial base, including

NWR at its OKK operations and at OKD

through ventilation of our mines. We are

constantly focusing on PM emissions

reductions in OKK, which was more than

30 per cent in 2011 ending at 80 tonnes

for 2011. The PM emissions from OKD

operations are constant at the level of

120 tonnes per year. Greater reductions

are envisioned for 2013 and the subse-

quent years.

Carbon footprintIn line with the Company’s long-term

commitment to reducing greenhouse

gas (“GHG”) emissions, our direct CO2

emissions from OKK operations have

fallen by 25 per cent from 170,256 to

127,012 tonnes, thanks to the COP

initiative which mandated the build-

ing of a new coking battery 10, and the

modernising of battery 8 in the Svoboda

Coking Plant at an investment of EUR

63 million. The indirect GHG emissions

come from so-called indirect energy

consumption e.g. electricity, heat and

steam. The emissions from transport

are negligible as 98 per cent of the prod-

ucts are transported via rail.

EnergyIn the last decade, we have sought to

decrease our energy consumption by

increasing our energy effi ciency, and we

have successfully reduced our energy

consumption to the barest minimum

necessary to maintain our current

output levels. Greater energy savings

would force a reduction in our produc-

tion levels.

One of our biggest operational costs

is electricity. To manage this, we have

sought to increase the overall energy

effi ciency of plants and machinery. We

also recognise the indirect benefi ts

of this increased effi ciency to GHG

emissions. To this end, energy consump-

tion expressed in gigajoule fell from

4,921,000 in 2010 to 4,456,000 in 2011,

representing a 9 per cent decrease in

energy consumption.

If we factor in the additional savings

from the sale of generated coke-oven

gas and captured carboniferous natural

gas, the reduction in energy consump-

tion is a massive 30 per cent. However,

irrespective of these savings so far,

continued and sustainable reduction

in energy consumption remains a vital

task of NWR Group’s energy specialists.

Moving forward, reductions in energy

consumption will be based on optimis-

ing costs at individual operations, i.e.

mines. Investment in new technologies

as mandated by the PERSPective 2015

is also part of the savings plan.

WaterNWR Group uses large quantities of

water for the preparation and the wash-

ing of coal. We comply with all EU and

Czech legislative requirements for dis-

charged water and it is one of our goals

to consume water more effi ciently and

prevent negative impacts on the quality

of water where we operate. 93 per cent

of all water used by NWR is used by OKD

and in 2011 38 per cent of total water

consumption was with recycled water.

OKD mines are equipped with magnetic

separators used to purify the water

from magnetite. After this the water is

either pumped back into the prepara-

tion process or to the system of fl otation

tailings ponds in which fl otation tailings

settles.

WasteAll waste generated is either passed on

to another company for further use or is

disposed of. Waste that can be reused is

fi rst recycled. We pass on non-reusable

waste for disposal; this includes most

of the hazardous waste and also non-

reusable miscellaneous waste. The

quantity of waste generated between

2008 and 2011 increased from 42.2 to

46.2 thousand tonnes, mainly in scrap

iron. That was the result of investments

in modern technologies under POP

2010 programme and the subsequent

discarding of old machinery.

The main source of hazardous waste

was battery oven linings and mixed

construction materials containing

hazardous substances produced

when coking battery no. 9 was being

overhauled.

Tomáš Rak

Thanks to the reclamation project of OKD, tens of thousands of children every year

can meet the dinosaurs and fi nd themselves in prehistoric times at least for a few

moments.

22

Open Mine 1 I 2013te

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NWR helps raise interest in

mathematics at schools

More than 2,000 elementary school pupils are

involved in the Enjoy Maths project that should

render Maths classes more attractive.

In recent years the Czech Republic has

seen a signifi cant decline in interest

in maths among school pupils, which

has in turn has a negative infl uence on

the number of people seeking to enter

engineering. This is posing a problem

for industry, which is why NWR Group

has contributed CZK 2 million to Enjoy

Maths, a project designed to make ma-

ths classes more interesting. More than

2,000 elementary school pupils have

participated.

There is a shortage of well-educated en-

gineers in the Czech Republic. Industrial

companies feel this shortage, and NWR

is no exception. One of the underlying

reasons for this is an alarming decline in

maths skills of elementary and second-

ary school pupils.

International mathematics and natural

science education research (TIMSS) that

took place in 2007 found Czech fourth-

graders ranked second to last among

the 19 participating OECD/EU countries;

in 1995 the Czech Republic was placed

fourth out of 19. Czech eighth-grade

pupils came 8th out of 15; in 1995 they

were third out of 24 countries.

The last OECD PISA research from 2009

ranked 15-year old Czech pupils 22nd

out of 34 OECD countries, registering

the biggest drop down the table of all

participating countries. One reason for

this is that students in other countries

improved, but the most important rea-

son was a deterioration in the absolute

results of the Czech Republic.

This unfl attering development jeopard-

izes the future number of engineering

educated members of the workforce,

even though the demand for such skills

will keep growing. A McKinsey study

states, for example, that should the

situation not change the education level

of Czech pupils will drop to the level of

Romania or Georgia by 2022. The coun-

try would then lose 11 per cent of its

GDP by 2050, i.e. CZK 400 billion at the

current price level.

The Institute for Social and Economic

Analyses, a think-tank, together with

Czech science representatives organ-

ised Enjoy Maths under the auspices

of the Confederation of Industry of the

Czech Republic. The project, which

began in September 2011 and runs to

November 2013, cost CZK 7.5 million

and NWR has provided more than a

quarter of that.

The aim of Enjoy Maths is to increase

the level of interest among the public,

schools, teachers and pupils in the

subject, turning the attention of all

stakeholders to the fact that a high-

quality motivating teaching process

within mandatory education is the key

to better results.

One of the key tools to achieve this tar-

get is a widely promoted and published

acknowledgement of good-quality

Maths teachers at both the elementary

and lower secondary schools promot-

ing their teaching methods to a wider

teaching public.

Enjoy Maths is a pilot project that

provides a benchmark for a strategy to

increase numeracy and maths skills and

to encourage interest in mathematics,

which is the basis on which to change

the attitude to engineering studies.

2,260 pupils got involved Contrary to the typical Czech teach-

ing method of using the threat of poor

grades to try to motivate students,

elementary school teachers of grades 5

to 7 prepared projects that made maths

lessons more attractive. A committee

then selected the best teachers to take

part in the project.

In the academic year beginning Septem-

ber 2012, 98 teachers from 13 regions

with 2,260 pupils in 117 classes were

involved in Enjoy Maths. Over the school

year, teachers elaborate specifi c projects

and their pupils will take an exit test

in May. In the summer the committee

will assess the projects. Based on the

results, the committee will make recom-

mendations on suitable maths teaching

methods at schools. Enjoy Maths will

also have a Best Practice Share Centre.

Tomáš Rak

The level of engineering education is

dropping in the Czech Republic. The “Enjoy

Maths” project wants to oppose this.

For more information visit

www.matematikaschuti.com

Facebook page ‘Matematika

s chutí’

Community blog at http://

matematikaschuti.7u.cz/

index.php

23

Open Mine 1 I 2013

OKD has built free-of-charge skating rinks on the

main squares of Karviná and Orlová. The “Skating

with OKD!” project attracted great public interest.

Karviná and Orlová town squares

livened up thanks to OKD

bound people. BezBar met huge success

in Orlová.

On top of everything, giant fl ying carps

fl oated in the evening sky. ”We let them

out as a symbolic thank you to the

Orlová people for their activities in our

programme entitled Sídliště žije. It was

prepared for those residents of panelak

[pre-fabricated concrete panel buil-

dings] apartment houses who decided

to change something in their neighbour-

hood for the better. And people in Orlová

are very pro-active,” said Jiří Suchánek,

director of the OKD Foundation.

Marek Síbrt

The pre-Christmas Advent period

saw OKD offering Karina’s sports fans

the option to skate through Advent.

Ice rinks were installed in the mining

town’s squares from 1 December to

19 December, with skating free for all.

For OKD employees and their families

there was free skate hire and free skate

sharpening.

OKD came up with the idea in order to

provide people with some stress-free

distraction amid the busy run-up to

Christmas. OKD also offered time for

schools and kindergartens to use the

rinks.

Mining Games on iceThe rinks opened everyday between

10am and 10pm, with kindergartens

and schoolchildren able to skate from

10am to 2pm. ”Capacity was limited to

50 people so schools and kindergartens

had to book their time in advance. And

I have to say that the rinks were totally

full of kids for the entire course of the

event. We are happy that schools used

this opportunity to make their sports

classes more attractive,” said Vladislav

Sobol, OKD’s spokesperson.

The project included many weekend

social events called “Mining Games”.

People could follow a top fi gure-

-skating exhibition or a sledge hockey

match featuring handicapped sport-

smen. There was traditional St. Nicolas

gift distribution, concerts, competi-

tions and games for children, plus a

discotheque on ice.

OKD has also supported it. The Kar-

viná main square livened up before

Christmas with sports, culture and tra-

ditional markets. The OKD skating rink

has become a natural centre of events

especially for students and young citi-

zens of the town.

The skating rink was opened in Karviná

at the beginning of December, when the

Christmas tree was lit up to launch a

series of pre-Christmas cultural perfor-

mances entitled “Advent in town”. Thus

the Karviná square really livened up

ahead of Christmas!

Carps fl oating above OrlováThe OKD Foundation also installed its

BezBar refreshment facility next to the

skating rink in Orlová for a few days

in mid-December, with refreshments

prepared and served by wheel-chair

The skating rinks in both towns were never left empty. Young people in particular found

skating on the main square very popular.

The Gas-to-Energy company

Customised drilling & drainage

Innovative end-to-end solutions

CHP operate over 8,000 hours per year

Safer underground working conditions

Solid track record: 110 MW installed capacity

Visit greengas.net for more information and

how to contact us.

Safer mining conditions and a high energy output

800,534Car emissions

120 MILLION M3

Waste (Methane) Gas destroyed

Heat generated for

8,000 HOUSES

1.8 MILLIONTons CO2 mitigated

650 GIGAWATT HOURSAnnual electricity

production

CH4