Our development projects are located in the Upper Silesian Coal Basin, on the border between the Czech Republic and Poland, where we have extensive mining expertise.
Circumstances in 2013 obliged us to focus on optimising the current mining operations, which inevitably resulted in a slowed approach towards all our development projects during the year.
At Karviná, we continued to purchase surface properties, albeit on a somewhat smaller scale than previously planned. As part of CAPEX savings, we will for example not deepen the shaft at the ČSA part of Karviná‘s mine for the time being. We will however take the Karviná development project further, and we continue to expect its completion by 2017.
During 2013 CAPEX spend at Dębieńsko was approximately EUR 4 million, enabling us to continue purchasing surface properties. In 2014 we will continue to focus on value engineering, i.e. we will look at how best we can develop the project in relatively low-cost ways that maximise value in the current market. We recognised EUR 9 million of impairment with regard to Debieńsko in 2013 due to reduced long-term price expectations for our products, and re-assesment of our mine plan.
At Morcinek non-material CAPEX was spent on securing surface properties and plots of land. In 2014 we will continue with our engineering work in connection with OKD’s ČSM mine, which sits nearby on the Czech side of the border.
We divide our development projects into three major groups of strategic, near-term and long-term to reflect the respective stages of development timelines to completion and the level of investment.
Strategic project – Dębieńsko
Near-term projects – Karviná project 1, Karviná project 2 (jointly referred to as Karviná expansion) and Karviná shaft deepening
Long-term projects – Frenštát and Morcinek