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Annual Report and Accounts 2011 / Overview / Our operations and customer base 

Our operations and customer base

Our operations

Our operations

Our mines are located near to our major customers’ operations in Central Europe, giving us a significant advantage over our seaborne competitors due to our lower transportation costs and our market’s landlocked location. We predominantly transport our coal and coke via the railway network directly to our customers.

We operate state-of-the-art mining technology for longwall production and gateroad development. We mine deep underground compared to most of the world’s mines, at around 1,000 metres below the surface. Our deepest active floor is located at the Paskov Mine at a depth of 1,120 metres below the surface.

 1  Karviná Mine

2011 coal production: 4.1 million tonnes Reserves: 89 million tonnes Coal type: Semi-soft coking/hard coking/thermal

 2  ČSM Mine

2011 coal production: 2.9 million tonnes Reserves: 45 million tonnes
Coal type: Hard coking/thermal

 3  Darkov Mine

2011 coal production: 3.2 million tonnes
Reserves: 37 million tonnes
Coal type: Semi-soft coking/thermal

 4  Paskov Mine

2011 coal production: 1.0 million tonnes
Reserves: 24 million tonnes
Coal Type: Hard coking

 5  Svoboda coking plant

Capacity: 800 kilo tonnes 2011 production: 770 kilo tonnes
Coke type: Blast furnace/foundry/other

 

 6  Dębieńsko

development project
Final approval for the project was received in June 2011 with ground breaking in December 2011
Reserves: 190 million tonnes
Coal type: Semi-soft coking/hard coking/thermal

 7  Morcinek

development project
Morcinek development project adjacent to our operation (ČSM Mine)
On going drilling and geological work.
Coal type: Semi-soft coking

 8  Frenštát

development project
Four year exploration process to ascertain the feasibility of the mine.
Hard coal resources: approximately 1.6 billion tonnes1Mining area: 63 km2

Our customer base 

Our customer base

NWR is strategically located in Central Eastern Europe and supplies to a blue chip customer base of steel makers and power generators in the area.

We principally produce both coking (also known as ‘metallurgical coal’) and thermal coal (also known as ‘steam coal’). Coking coal is used as a raw material in steel production and we supply to customers including ArcelorMittal, Moravia Steel, U.S. Steel, and voestalpine. We sell thermal coal to regional utilities with coal fired power stations including ČEZ, Dalkia and Verbund. Additionally, NWR supplies both foundry and blast furnace coke to steel customers throughout the region.

We have long-term framework agreements with our customers with quarterly pricing negotiations for coking coal and coke, and pricing terms for thermal coal are agreed on a calendar year basis.

Our customer base