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Annual Report and Accounts 2011 / Strategy / Growth 

Growth

Upper Silesian Coal Basin

Upper Silesian Coal Basin

Our growth strategy is focused on two main areas: first, by way of accessing new areas from our existing mines to sustain our production volumes and quality mix over time; and second, through the development of organic growth projects, with Dębieńsko being the most high profile of our development initiatives. Additionally, we continue to believe in the long-term rationale for consolidation in the Central and Eastern European coal sector, and monitor developments in the region for potential acquisitions. Our strong financial position gives us the flexibility needed to react quickly to a prospect. We retain a disciplined approach to acquisitions, carefully considering the opportunities in line with Company objectives.

Coal basins in Poland and the Ukraine

Coal basins in Poland and the Ukraine

Development projects overview

  Early stages/
geological survey
Feasibility study/
EIA
Implementation Expected
completion

A Dębieńsko

  • Strategic growth project
  • 190 million tonnes of reserves
  • Expected coal mix of 7/8 coking coal
  • and 1/8 thermal coal
  • Expected coking coal mix of 2/3 hard coking coal and 1/3 semi-soft coking coal
  • First coal expected in 2017
  • Average yearly production of 2 million tonnes
  • Total costs of EUR 544 million: EUR 411 million of development CAPEX and EUR 133 million pre-production operating costs
  • 3 longwall sets operational with one spare
  • Expected mining unit costs of EUR 70/tonne1
  • Project manager: NWR KARBONIA
Development projects overview  2017
  Early stages/
geological survey
Feasibility study/
EIA
Implementation Expected
completion

B Karviná project 1 – Karviná

  • Extension of current operations
  • Expansion project at the Karviná Mine
  • Aim to extract more than 20 million tonnes of coking coal via existing Karviná Mine
  • Project manager: OKD
Development projects overview 2016-2017
  Early stages/
geological survey
Feasibility study/
EIA
Implementation Expected
completion

C Karviná project 2 – Orlová-Výhoda

  • Extension of current operations
  • Expansion project into the Orlová-Výhoda district in the Karviná area
  • Aim to extract approximately 10 million tonnes of coking coal from the site
  • Project manager: OKD
Development projects overview  2016-2017
  Early stages/
geological survey
Feasibility study/
EIA
Implementation Expected
completion

D Shaft deepening projects

  • Extension of current operations
  • Expansion project at the ČSA mining site of the Karviná Mine
  • A further 312 metres underground; total depth to reach approximately 1,270 metres by 2015
  • Shaft sinking at the Lazy mining site of the Karviná Mine
  • Project manager: OKD
Development projects overview  2017-2020
  Early stages/
geological survey
Feasibility study/
EIA
Implementation Expected
completion

E Frenštát

  • Long-term project
  • 1.6 billion tonnes hard coal resource
  • 4-year exploration process underway
  • Project manager: OKD
Development projects overview
  Early stages/
geological survey
Feasibility study/
EIA
Implementation Expected
completion

F Morcinek

  • Long-term project
  • Granted a 12-year exploration licence in 2003 for Morcinek 1
  • Granted additional 6-year exploration licence for Morcinek 2 in 2008
  • Project manager: NWR KARBONIA
Development projects overview 1 in 2011
prices.