The key elements of our strategy are continued improvement in the efficiency, profitability and sustainability of our mining and coking operations, and an active pursuit of growth opportunities in our region.
Debiensko
We hold a 50-year mining licence for Debiensko, which is located in southern Poland, 40km from the Czech border.
Debiensko is our most advanced expansion project and holds 190 million tonnes of coking coal reserves, under the current licence, which covers the exploration of deeper seams, 1km underground. Our Polish subsidiary, NWR KARBONIA, completed an alternative development plan that explores the option of also developing the shallower thermal coal seams.
This new approach reduces the investment cost and development time to bring the mine on stream, compared with the original plan. We are in the process of applying for an amendment to the current 'Debiensko 1' licence to include further coal reserves related to the shallower seams, to those already included in the currently held licence.
Morcinek
Our second development project in Poland, Morcinek is also located in southern Poland, near the border of the Czech Republic.
The cross-border treaty signed by the Czech and Polish authorities in August 2008, opens up the opportunity to reopen the Morcinek mine. We signed a Letter of Intent with Jastrzebska Spolka Weglova S.A., a Polish mining company who were the last company to explore the area.
We are assessing the scope and nature of the geological and pre-feasibility work required to proceed with the project, when appropriate.
Longer term, we believe the future privatisation of the Polish mining industry will present major merger and acquisition opportunities for NWR. Our track record in revitalising our Czech assets and expertise in the geology of the upper Silesian coal basin, combined with the relationships we have already established with the Polish authorities on the Debiensko and Morcinek projects mean we are well positioned to exploit these opportunities when they arise.
Frenstat
Development project in the Czech Republic. The Frenstat Mine is mothballed. We are obliged by Czech law to preserve the coal deposit for any possible future exploitation.
