NWR1 at a glance
In 2011 New World Resources Plc (‘NWR’) reincorporated in the United Kingdom
We announced our intention to move domicile from the Netherlands to the United Kingdom in October 2010 and completed this process in May 2011. NWR remains headquartered in the Netherlands and remains a Dutch tax resident.
In June NWR was included in the FTSE series index, namely the FTSE 250 and FTSE 350 Mining indices. The process of reincorporating NWR in the UK included a share-for-share recommended exchange – holders of shares in NWR NV were given the opportunity to exchange one share in NWR NV2 for one share in the new NWR Plc. Shares were exchanged in voluntary exchanges with 0.22 per cent of NWR NV’s share capital currently subject to squeeze out proceedings.
This annual report covers NWR’s activities for the financial year ended 31 December 2011.
We have three principal subsidiaries:
OKD, a.s. (‘OKD’)
Our principal wholly owned subsidiary OKD is the Czech Republic’s only hard coal mining company and second largest private employer. Its four operating mines are located in Northern Moravia, south of the Polish border and are part of the Upper Silesian Coal Basin. Please refer to the Coal section of this report from page 34onwards for further information.
OKK Koksovny, a.s. (‘OKK’)
Our wholly owned coking subsidiary, situated at the Svoboda coking plant site in Ostrava, produces both foundry and blast furnace coke from four batteries. Please refer to the Coke section of this report from page 40 onwards for further information.
NWR KARBONIA S.A. (‘NWR KARBONIA’)
NWR KARBONIA oversees two development projects in southern Poland – Dębieńsko and Morcinek. Please refer to the Development projects section of this report from page 46 onwards for further information.
Who we are
NWR is one of Central Europe’s leading hard coal and coke producers. We access coal from deep underground. NWR is headquartered in Amsterdam, listed on stock exchanges in London, Prague and Warsaw and included in the FTSE 250 and FTSE 350 Mining indices. NWR has four working mines and several development projects in the Czech Republic and Poland. NWR employs over 18,000 people and as at 1 January 2012 had 385 million tonnes of JORC3 total reserves.
What we do
NWR is a trusted supplier of coal and coke. We principally produce coking and thermal coal for the steel and energy markets in Central Europe through our mining operations located in the Czech Republic. Our coke subsidiary is the largest producer of foundry coke in Europe. In 2011 total production of NWR reached
11.2 million tonnes of coal and NWR externally sold 4.4 million tonnes of coking coal, 6.2 million tonnes of thermal coal and 555 thousand tonnes of coke. NWR supplies to a blue chip customer base of steel makers and power generators in the Central European region, one with which we have developed longstanding relationships.
How we create value
The region suffers from supply constraints arising from limited port capacity and freight infrastructure and NWR is thus well positioned to serve its customer base more efficiently than overseas producers. We have invested in technologies, streamlined the business and extended our reserve base. We set the region’s standards in terms of health and safety, technology, corporate governance and customer service. We have a track record of attracting and retaining the best people in the region.
What our aim is
Our aim is to leverage our credentials as the first privatised, restructured and modernised coal business in Central Europe to create long-term value for our shareholders. We will achieve this by serving customers in the region’s power and steel sectors, and by capitalising on opportunities to develop new reserves, organically as well as through regional consolidation.
1 NWR or the ‘Company’ refers to New World Resources Plc. The ‘Group’ or ‘NWR Group’ refers to New World Resources Plc and its subsidiaries.
2 Refers to the entity New World Resources N.V.
3 Full name: Joint Ore Reserves Committee. The Group currently uses the JORC system to report reserves and resources. The Group employs a certified geologist who prepares the reserve numbers and is the designated ‘Competent Person’ as defined by the JORC code.