Press releases

OKD 2010: Improved safety, efficiency and financial results

PRAGUE (13 June 2011) – Last year proved to be a good year for hard coal producer OKD. Investments in modern mining technologies resulted in both miner safety and mining efficiency improvements. Net profit rose from the CZK 1.5 billion achieved in 2009 to CZK 6.3 billion in 2010. “We achieved reasonably good financial results but what we see as most important is that there was yet another improvement in the area of safety. Our people realised that it is necessary to perform their jobs in a safer manner, plus the company invested considerable resources into personal protective equipment as well as new mining technologies,” said Klaus-Dieter Beck, CEO of OKD.

 

Extensive investments made by OKD in the past three years have completely transformed the underground working environment as well as the company's outlook for the future. Since 2008, the company has invested nearly 10 billion Czech koruna into new mining technologies and more than half a billion more into protective and technical aids for the miners. “New technologies mean improved mining efficiency. They thus contributed to our positive financial result last year,” Beck added.

 

Perspective

At the beginning of 2010, the company management announced a new programme called “Perspektiva 2015”. The essence of the new programme is directed at caring for employees, improving work productivity, rigorously utilising coal reserves, emphasising occupational safety and ensuring the predictable reliability of the company when it comes to relationships with customers and other stakeholders. OKD intends to take full advantage of the exceptional investments realised in 2008 - 2010.

 

Key events of 2010

 

Productivity Optimisation Programme 2010 (POP 2010)

In 2010, OKD finished the implementation of an exceptional investment – the acquisition of brand new mining technologies with expenditure that amounted to more than nine billion koruna. The technologies - longwall and development sets, complete with cutters, roadheaders and loaders – were all sourced from globally renowned manufacturers. The company invested a total of CZK 4.5 billion in 2010 overall, of which CZK 2.4 billion was invested under the POP 2010 programme.

“POP 2010 comprised one of the most extensive investments in the history of the new-era Czech economy. The new technologies have helped us to increase our work productivity and tackle the effects of the global economic downturn,” Beck observed.

 

Safety 2010

From 2008 to 2010, the company invested more than half a billion koruna in occupational safety, making it a truly revolutionary investment in the sphere of safety, not only in terms of what has been historically realised in the Ostrava-Karviná mining district, but also in the whole of the Czech Republic. The investment contributed to a decrease in the incidence of occupational injuries – the most exact safety indicator, the LTIFR (Lost Time Injury Frequency Rate) decreased from the 2009 value of 11.29 injuries per million hours worked to 8.61 in 2010. The company is striving to decrease the LTIFR rate to 7 in 2011, while the next target is to realise a rate of 5 injuries per million hours worked over the next five years.

 

New protective and technical aids for the miners

 

TOTAL

In 2010

  • Safety helmets

15,197

5,678

  • Personal lamps

15,383

7,363

  • Working clothes

57,283

32,241

  • T-shirts with reflective strips

60,092

31,906

  • Shirts with reflective strips

111,384

52,173

  • Work boots

38,963

17,487

  • Self-rescue devices

15,000

2,000

  • Indication and detection devices

823

228

 

All of the equipment is rated as the best in class currently available on the global market.

 

Revival of vocational mining education

The positive outlook of OKD towards the future is also demonstrated by the company's interest in educating the people who will become its future employees. After nearly 20 years, the company, in collaboration with the Secondary School of Technology and Services in Karviná, in 2009 restored the mining curriculum. By 2010, two year-classes had been established, comprising 70 future mining electricians and locksmiths. OKD is preparing a comparable cooperation with a secondary school in Havířov-Šumbark, which will commence in September 2011. OKD provides the trainees with a CZK 1,000 monthly stipend and internship opportunities at the surface operations of individual pits.

 

Corporate social responsibility of the company

OKD endeavours to undertake its business both efficiently and responsibly.

  • Reclamation works worth nearly CZK 150 million.
  • Sponsoring of prominent sport and cultural projects with an amount exceeding CZK 34 million.
  • Supporting the OKD Foundation with at least one per cent of profit before tax annually; in 2010, the company donated to the Foundation nearly CZK 20 million (based on the 2009 profit before tax).
  • The OKD Foundation in 2010 distributed nearly CZK 24 million among publicly beneficial projects realised by nonprofit organisations and municipalities.
  • The average salary within the company greatly exceeds both the regional and national averages. In 2010, the average monthly wage of workers increased year-on-year by 10 per cent to CZK 32,583.

 

 

Key information on OKD in 2010

 

Coal

The core business sphere of OKD is the mining of hard coal, which divides into two basic types:

a)  coking coal (used to produce coke which in turn is used in blast furnaces to make crude iron) – in 2010, the company sold 6 million tonnes of coking coal, i.e. approximately 52% of total sales;

b)  thermal coal (used to fire power stations) – in 2010, the company sold 5.5 million tonnes of thermal coal, i.e. approximately 48% of total sales

 

Main financial indicators

 

2010

2009

Production (tonnes)

11,193

10,621

Coal sales (tonnes)

11,515

10,939

Turnover (CZK billion)

44,0  

31,5

Profit before tax (CZK billion)

7,104

1,991

Profit after tax (CZK billion)

6,323

1,480

 

Mines

OKD produces coal in four mines in the Karviná and Frýdek-Místek areas:

  • Karviná Mine
  • Darkov Mine
  • ČSM Mine
  • Paskov Mine

 

Subsidiaries

OKD has a single subsidiary: OKD, HBZS.

This subsidiary safeguards the operation of the Central Mine Rescue Station in Ostrava, with the core mission of providing rescue services in mines and collaboration in ensuring underground safety.

 

Ownership

OKD belongs to the group New World Resources (NWR).

 

 

Vladislav Sobol, Spokesman for OKD, a.s.

 

Telephone:

596 262 293

Mobile:

725 595 417

E-mail:

vladislav.sobol@okd.cz

Website:

www.okd.cz

 

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