NWR Moves Forward with Optimization Plans, Acquires Stake in Ferrexpo


Mike Salamon (left) executive chairman NWR, and Klaus Dieter Beck, chairman and CEO, OKD.
Czech coal mining company, New World Resources (NWR), which will produce 12.8 million metric tons (mt), announced that its investment program, Productivity Optimization Program (POP 2010), continues to progress according to plan. “The POP 2010 program at our Czech operations is on track and we have also commenced preparation works for shaft site drilling at our Debiensko development project in southern Poland,” said Mike Salamon, executive chairman, NWR. The company will drill two 100-m deep boreholes as well as a 1,400-m hole, an important steps in the final feasibility study for Debiensko that will show the geological, geotechnical and hydrological issues NWR will face during shaft sinking. Of the Phase I development sections, all four roadheaders and both drill and load equipment sets are in operation and performing as expected and thus outperforming the old equipment sets. Phase II has been initiated and the first roadheader has already been delivered. The next three sets are currently being manufactured. Of the five Phase I longwall sets, three are in operation and performing as expected. The fourth is in the final stage of underground installation and the fifth is being delivered underground.

NWR also announced that it would acquire approximately 25% of of Ferrexpo, a deal valued at GBP 126.6 million. “The acquisition is consistent with NWR’s strategy of continuing to expand its reserve base and long term production by actively seeking growth opportunities in Central Europe and other markets which complement NWR’s current operations,” said Salamon. “This transaction will provide NWR with a significant shareholding in one of CEE’s largest iron ore pellet producers.” Ferrexpo is a Swiss-headquartered resources group and controls one of Europe’s largest iron ore resources—6.5 billion mt of JORC resources plus approximately 14 billion mt of further Soviet-classified resources in Ukraine.

As featured in Womp 08 Vol 10 - www.womp-int.com