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Strategy / Fully optimise current operations by the end of 2014 

Fully optimise current operations by the end of 2014

The deteriorating market conditions during 2013 led to our decision to accelerate the first leg of our 2017 strategy. We embarked on a range of business and portfolio optimisation steps, and announced ‘2014 targets’ to make NWR a sustainable business respecting the strategic priorities and core principles of our sustainability approach and being a responsible partner for our stakeholders1. Hitting these targets is at the same time necessary for the delivery of our 2017 strategy.

Cash mining unit costs

The 2014 year-end target was achieved mainly through cuts in total personnel costs and by eliminating the high-cost parts of our mining operations. The strategic review highlighted less competitive parts of our current mining operations and in September 2013, we announced the closure of the Paskov mine in order to significantly improve the overall cost profile of our mining operations. The phasing-out of the mine continues into 2015 with permanent closure expected by year-end 2017. 

Coking coal in the sales mix

To maximise the output of coking coal from our mining operations, a new, more selective mine plan was created for implementation in 2014 and onwards. Longer-term we envisage leveraging our customer relationships to complement our coking coal deliveries with sales of suitable coking coal qualities from overseas.

LTIFR

In pursuit of our target LTIFR rate of less than 5 by year end 2015, we continuously promote a safety-first attitude amongst our employees through constant training and campaigns aimed at promoting employee engagement and discipline.