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Annual Report and Accounts 2011 / Additional Information / Glossary 

Glossary

B

Benzole absorption cooler, or benzole washing unit: an apparatus designed to absorb benzole from the coke oven gas using washing oil.

Benzole washing unit, or benzole absorption cooler: an apparatus designed to absorb benzole from the coke oven gas using washing oil./p>

Benzole stripping column: a still distillation column, also commonly referred to as a benzole stripper. The apparatus is used to remove benzole from the washing oil by means of steam.

Blast furnace coke: coke used to power blast furnaces. This coke must have a high strength to support heavy loads in the blast furnace without disintegration. Also known as metallurgical coke.

Brownfield sites: abandoned or underused industrial and commercial facilities available for re use.

By-product: material other than the principal product generated by an industrial process.

Box-cut: a small open cut created to provide a secure and safe portal as access to a decline to an underground mine.

C

CAGR: Compound Annual Growth Rate, number that describes the steady rate at which the initial value would have to grow every year to achieve the specific end value.

Coal: a readily combustible rock, formed from plant remains that have been compacted, chemically altered and metamorphosed by heat and pressure over millions of years.

Coke: the solid carbonaceous material derived from the destructive distillation of coal.

Coke conversion costs: reflects the operating costs incurred in converting coking coal into coke. It does not include the cost of internally or externally purchased coking coal. The main line items are the consumption of material and energy, services, personnel and other operating expenses. It does not include Depreciation and Amortisation.

Coking coal: high volatility coal used to create coke, which is consumed in the steel reduction process.

Continuous Improvement Programme: short form ‘CIP’, NWR’s programme to improve efficiency by rewarding employees who submit innovative ideas and suggestions.

COP 2010: NWR’s Coking Plant Optimisation Programme, a capital investment programme designed to improve the productivity of its coking operation.

D

Deposit: refers to an area of coal resources or reserves identified by surface mapping, drilling or development.

Detailed Feasibility Study: a study to determine definitively whether to proceed with the project, which will provide the budget figures for the project. Detailed feasibility studies require a significant amount of formal engineering work.

E

Environmental impact assessment: short form ‘EIA’ is a procedure that ensures that the environmental implications of decisions are taken into account before the decisions are made. Environmental assessment can be undertaken for individual projects on the basis of Directive 85/337/EEC, as amended (known as ‘Environmental Impact Assessment’ – EIA Directive).

Emerging Europe: refers to European countries that are in the process of growth and industrialisation.

Emission: pollution discharged into the atmosphere by commercial or industrial facilities, or by motor vehicle, locomotive or aircraft exhausts.

Extraction: the process of mining and removal of coal or ore from a mine.

EXW/ex works: a trade term requiring the seller to deliver goods at his or her own place of business. All other transportation costs and risks are assumed by the buyer.

F

Foundry coke: coke used in furnaces to produce cast and ductile iron products. It is a source of heat and also helps maintain the required carbon content of the metal product. Foundry coke production requires lower temperatures and longer times than blast furnace coke.

FTSE 250: a capitalisation-weighted index of 250 UK domiciled companies on the London Stock Exchange.

FTSE 350 Mining: a capitalisation– weighted index of 350 UK domiciled mining companies on the London Stock Exchange.

G

GDP: Gross Domestic Product, the total value of all goods and services produced in a particular economy.

Greenfield sites: undeveloped land in a city or rural area either used for agriculture, landscape design, or left to naturally evolve. These areas of land are usually agricultural or amenity properties being considered for urban development.

H

Hard coal: another name for anthracite, the coal with the highest level of carbon and the lowest level of impurities. Both metallurgical coking coal and thermal coal are forms of hard coal.

Hard coking coal: refers to a type of coking coal which enables the coke to be more efficient in steel making when it converts iron ore to raw steel.

J

JORC: the Joint Ore Reserves Committee.

K

Kt: kilotonne, one thousand (1,000) metric tonnes.

L

Longwall mining: a fully mechanised underground mining technique in which a coal face is excavated by a shearer and then transported to the surface by conveyor belt.

LTIFR: Lost Time Injury Frequency Rate represents the number of reportable injuries causing at least three days of absence per million hours worked. Includes contractors.

M

M1 category: equipment classified under the M1 category may be operated, unlike M2 category equipment, under conditions of increased methane concentrations, exceeding 1.5 per cent. That allows the controller to maintain a continuous oversight of the presence and movement of employees within monitored areas of the mine. Being fitted with an accumulator and a battery, the equipment remains operational even during a power-supply failure.

Metallurgical coal: an informally recognised name for bituminous coal that is suitable for making coke by industries that refine, smelt and work with iron. Generally, this coal will have less than 1 per cent sulphur and less than 8 per cent ash on an air-dried basis. Metallurgical coal is sometimes referred to as coking coal.

Mining face: the working area where the extraction of coal takes place in an underground mine.

Mining licence: permission to mine minerals from a mineral rights area.

Mining unit cash costs: reflect the operating costs incurred in the Coal Segment for mining both coking coal and thermal coal. The main line items are the consumption of material and energy, services, personnel and other operating expenses. It does not include Depreciation and Amortisation.

Mt: one million (1,000,000) tonnes.

N

NOx: gases that are oxides of nitrogen.

O

OECD: Organisation for Economic Co-operation and Development, an organisation that acts as a meeting ground for 30 countries which believe in the free market system and provides a forum for discussing issues and reaching agreements, some of which are legally binding.

Open-pit mining: mining in which the coal is extracted after removing the overlying strata or overburden.

P

Preparation plant: a plant used to make raw coal a product suitable for a particular use.

Project: a mineral deposit with insufficient data available on the mineralisation to determine if it is economically recoverable, but warranting further investigation and not currently included in the Group’s future mining plans.

POP 2010: NWR’s Productivity Optimisation Programme, a major capital investment programme designed to improve the productivity of its mines.

PCI: Pulverised Coal Injection. PCI is injected into a blast furnace as a supplementary fuel to reduce the amount of coke consumed, having a knock on effect on reducing operating costs in the production of pig iron, and ultimately crude steel.

PERSPective 2015 programme: short form PERSP 2015 is NWR’s programme to maximise the returns on our recent investments in state of the art technology and health and safety. The plan focuses on five main areas: People, Efficiency, Reserves, Safety and Predictability.

Q

Quenching tower: water spraying tower for cooling coke after it emerges from the furnace.

R

Reclamation: the restoration of land and environmental value to a surface mine site after the coal is extracted. Reclamation operations usually get underway as soon as the coal has been removed from a mine site. The process includes restoring the land to its approximate original appearance by restoring topsoil and planting native grasses and ground covers.

RFID: Radio Frequency Identification, a data collection technology that uses electronic tags for storing data.

Reserves: those parts of mineral resources for which sufficient information is available to enable detailed or conceptual mine planning and for which such planning has been undertaken. Reserves are classified as either proved or probable.

Resources: all of the potential minerals in a defined area based on points of observation and extrapolations from those points. Potential minerals are defined as minerals which have been or could be beneficiated to give a quality acceptable for commercial usage in the foreseeable future and excludes minor mineral occurrences.

Redomiciliation/reincorporation: the process by which a company moves its domicile from one jurisdiction to another by changing the country under whose laws it is registered or incorporated, whilst maintaining the same legal identity.

S

Seam: a geological structure containing a series of layers of coal, shale and other mineral materials of varying thicknesses.

Shaft: a mine working (usually vertical) used to transport miners, supplies, ore and waste.

Sludge: high ash reject material from the fine coal washing circuits that can be recovered and re-processed to sell as additional coal by blending it with other products. Steam coal: coal that will be used for steam generation principally in thermal power plants.

T

Tectonic stress release: the result of energy releases in the mass of rock from the creation of empty underground spaces. The rock is stressed by the extraction of ore, pressure is created in it and energy is accumulated, which can be released in an instant by a rockfall. Bumps and slides occur mainly in saddle seams, where there is solid overlying rock.

Thermal coal: coal used in combustion processes by power producers and industrial users to produce steam for power and heat. Also called steam coal.

Tonne: a metric tonne, a measure of mass equal to one thousand (1,000) kilogrammes or approximately two thousand, two hundred and five (2,205) pounds.

U

Underground mining: the extraction of coal or its products from layers of rock by underground mining methods such as room-and-pillar mining and longwall mining.

Upper Silesian Basin: a coal basin in Silesia in Poland and the Czech Republic. The area contains a number of mineable resources including lead, silver and zinc; and resources of coal reach depths of 1000 metres below ground, approximately seventy (70) billion tonnes of coal.

UHF tags: a RFID tag that works in a portion of the ultra high frequency (UHF) range.