Czech Government may buy debt-ridden NWR’s coal unit to save jobs

Note* - All images used are for editorial and illustrative purposes only and may not originate from the original news provider or associated company.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from any location or device.

Media Packs

Expand Your Reach With Our Customized Solutions Empowering Your Campaigns To Maximize Your Reach & Drive Real Results!

– Access the Media Pack Now

– Book a Conference Call

– Leave Message for Us to Get Back

Related stories

Canada Faces Copper Trade Risk as Trump Tariff Looms

United States President Donald Trump‘s decision to impose a...

Argentina and France Strengthens Lithium Deal Pact

Argentina's government has made a lithium deal with France...

EACON Boosts Autonomous Mining Technology in Australia

In a Series D fundraising round, EACON Mining Technology,...

Japan to Start Rare Earth Mud Mining Near Minamitori Island

The leader of the government-backed project said on Friday...

The Czech Republic Government may buy New World Resources’ (NWR) black coal unit, OKD, in an effort to prevent thousands of redundancies.

 

NWR announced last week that it would have to sell OKD in Czech and Karbonia in Poland if it fails to reach an agreement with investors on capital restructuring by this September. The company is reeling under $1.12bn of debt.

 

Czech Republic Industry and Trade Minister Jan Mladek said the government would want OKD to be acquired by a strategic investor, preferably a company engaged in the same field.

 

The government intends to save around 14,000 jobs in OKD.

 

OKD operates four mines in the Czech Republic, which contributed to a major part of NWR’s €850m revenue in 2013.

 

However, falling coal prices and an increasing use of cheaper and cleaner energy sources, such as natural gas, have hit the company’s performance.

 

In the quarter ending in March, NWR’s earnings were down to €26.9m from €110.2m year-on-year.

 

In September last year, OKD announced that it plans to close down the Dul Paskov mine at Frýdek-Místek in North Moravia by the end of this year, as the mine is uncompetitive and running at a loss. The Paskov unit employs 2,500 workers.

 

In June, NWR signed a deal with the government agreeing to keep the mine open until 2017, while the government would provide CZK600m to laid-off workers, reported Radio Prague.

Latest stories

Related stories

Canada Faces Copper Trade Risk as Trump Tariff Looms

United States President Donald Trump‘s decision to impose a...

Argentina and France Strengthens Lithium Deal Pact

Argentina's government has made a lithium deal with France...

EACON Boosts Autonomous Mining Technology in Australia

In a Series D fundraising round, EACON Mining Technology,...

Japan to Start Rare Earth Mud Mining Near Minamitori Island

The leader of the government-backed project said on Friday...

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from any location or device.

Media Packs

Expand Your Reach With Our Customized Solutions Empowering Your Campaigns To Maximize Your Reach & Drive Real Results!

– Access the Media Pack Now

– Book a Conference Call

– Leave Message for Us to Get Back