New World Resources B.V.
Tuesday, November 20th, 2007
New World Resources B.V., a leading producer of hard coal in the Czech Republic and Central Europe, announce plans for a major capital investment programme of approximately â‚¬300 million at its wholly-owned subsidiary OKD a.s., the Czech Republicâ€™s largest hard coal mining company.
The capital investment programme involves the acquisition of 10 new systems of longwall mining equipment and 12 new sets of gateroad development equipment for OKDâ€™s mining operations and is expected to be purchased and rolled out in phases over the coming 24 months. A Letter of Intent to purchase the equipment has been signed with the supplier. The new equipment purchased as part of the capital investment programme is expected to increase operating efficiency and to enhance productivity and safety.
Mike Salamon, Chairman of NWR said: â€˜â€™The capital investment programme is consistent with NWRâ€™s broader growth strategy in the Central and East European region, and signifies our commitment to investing in our mining operations to ensure that they are safe, efficient and productive.â€™â€™
Klaus-Dieter Beck, a Board Director of NWR and the Chief Executive Officer of OKD, said: â€œThis capital investment programme is an essential component of a three-year productivity optimization programme that NWR is implementing at OKD. It will have a positive impact on the productivity and efficiency levels of our Czech mining operations, and will result in OKD being able to safely mine deeper, which will assist in the conversion of resources into reserves.â€