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Annual Report and Accounts 2011 / Strategy / Business strategy: delivering on our strategy 

Business strategy: delivering on our strategy

Strategy Priorities Progress 2008

Sustainable
development

Preserving the sustainability of NWR through development of the current reserve base; maintaining excellent relationships with customers; attracting and retaining the best people in the region; maintaining a strong financial performance; and importantly, upholding a high safety record.
Extending reserves to sustain the coal quality mix and adding to mine life. EUR 350 million POP 2010 launched:
early investment in the latest technology to mine further coal seams.

Disposal of non core services of maintenance
Improving health and safety performance. SAFETY 2010 launched: focus on personal protection equipment.

Installation of state-of-the-art mining technology (POP 2010).
Maintaining a strong financial position with a balanced capital structure. IPO on the LSE, PSE and WSE.
Strengthening stakeholder partnerships and relationships. Mining apprenticeship programmes launched.

OKD Foundation launched: develop projects in the Czech Republic.

Operational
excellence

Continuously improving operational excellence and efficiency through operational cost controls and productivity improvements.
Containment of mining unit costs.

Improvement of operational efficiency.
POP 2010 launched to improve mining efficiency.

COP 2010 launched to modernise coking capacity.

Consolidation of internal services/ procurement efforts.

Growth

Actively pursuing growth projects in the CEE region; applying a disciplined approach to M&A in Poland and the Ukraine.
Bringing Dębieńsko into production on time and on budget. Granted 50-year mining licence to extract coal from Dębieńsko.

Began work on engineering studies
needed for Dębieńsko.
  Exploring organic growth opportunities. Cross boarder mining treaty signed
between the Czech and Polish
governments for Morcinek.
  Becoming a regional consolidator
by disciplined pursuit of M&A.
 
2009 2010 2011
Delivery and installation of POP 2010 units – 10 longwall units and 19 sets of development equipment. Approved EIA for Karviná (period 2011–2015), Darkov (period 2011–2020), ČSM (period 2009–2020).

Focus on unexploited hard coal resources in Dębieńsko.

Streamlining of core business – sale of NWR Energy.
Final Board decision to proceed with Dębieńsko taken.

Four-year exploration process of Frenštát announced.

EIA for exploration of hard coal deposit at Frenštát completed.

EIA for exploration of hard coal deposit at Karviná being completed.
Continuous Improvement Programme (‘CIP’) launched: encouraging employees to offer ideas on improving operational efficiency and safety. Completion of SAFETY 2010. Implementation of greater safety driven initiatives around tectonic stress releases.
Partial redemption of 2015 Senior Notes. Refinanced debt with issuance of EUR 500 million Senior Secured Notes – prolonged average debt maturity. Prudent capital structure maintained; EUR 100 million RCF raised.
Signed new long-term collective agreement with three relevant trade unions for period 2010–2012.   Established integrated training centre; cooperation with local technical university.

Reincorportion of NWR to a UK plc; FTSE inclusion improves Company’s exposure to global capital markets.
POP 2010 concluded: installation of 10 longwall sets and 19 sets of development equipment.

Construction of coking battery no.10; modernisation of coking battery 8 and concentration of coking operations onto one site (COP 2010).

CIP launched: encouraging employees to offer ideas on improving operational efficiency and performance.
First year of operation of new longwall sets and development equipment (POP 2010).

Start of trial production at new coking battery; consolidation of coke production onto one site at Svoboda (COP 2010).).

PERSPective 2015 (‘PERSP 2015’) launched to improve operational performance over the next 5 years.
Ongoing replacement and renewal of remaining longwall sets and development equipment.

Coking battery no.10 moves into full production (COP 2010).
Completion of detailed development plan to mine coal at Dębieńsko. Applied for amendment to Dębieńsko mining licence.
 
Commenced detailed feasibility study for Dębieńsko.
Final approval gained for Dębieńsko.

Breaking ground at Dębieńsko.and development of box cut for Slope 1.
Assessment of scope and nature of geological and pre-feasibility work required for Morcinek.   Breaking ground at Dębieńsko.

Exploration continues at Morcinek.

Four-year exploration process announced for Frenštát.
  Offer made for Lubelski Węgiel ‘BOGDANKA’ Spółka Akcyjna.