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OKD’s billion-worth investment provided safety enhancement, better economic results and higher income for employees

OKD’s billion-worth investment provided safety enhancement, better economic results and higher income for employees
OSTRAVA (June 28, 2012) – In 2011, the hard-coal mining company OKD reported its profit before tax of CZK 7.5 billion; we have also managed to reduce the lost-time injury frequency rate down to 7.87 from previous years number of 8.53 in 2010. “These results confirm that we are on the right track. Since 2008, we have invested more than CZK 11 billion in the state-of-the-art mining equipment providing safer working conditions to our miners as well as better productivity. Thanks to such investment, OKD remains the driving force of the Czech industry even in times of economic recession providing jobs to our employees and tens of thousands suppliers and contractors who are linked to hard coal production,” said Klaus-Dieter Beck, OKD CEO and Chairman of the Board.

OKD’s production has a significant share on Czech economy, in particular in the operations of the Moravian-Silesian steel, heat and power plants. “In 2011, OKD sold 11.2 million tons of coal of which 5.1 million tons on domestic markets; 41% of our thermal coal and 40% of our metallurgical coal are consumed in the Moravian-Silesian Region. In 2011, OKD has been supplied materials and spare parts from ca. 185 regional suppliers in the volume of CZK 3.6 billion and further substantial funds are spent for services provided to our operations In total, OKD’s CAPEX equaled CZK 4.5 billion, of which CZK 3.5 billion were spent on new technologies, mine development projects and safety enhancement features. OKD also belongs to one of the major regional tax payers and was ranking 8th on the national list; the company paid CZK 3.423 billion in taxes and OKD employees paid further CZK 1.431 billion in employee tax deductions.

In 2011, OKD launched sustainability reporting and contributed to the first comprehensive NWR Sustainability Report 2011. The report was prepared according to GRI (Global Reporting Initiative) reporting framework at the highest application level A.

Employee care is one of the top OKD’s priorities and the company employees can touch many above-standard benefits. Besides others, miners are entitled to six weeks of vacation or to reconditioning stays. The average monthly pay of employees at mines went up in 2011 by almost 6% (by CZK 2,051) on a year-on-year basis to CZK 36,498 which is some 50 percent above the regional average. The company invested more than CZK 3.5 million in education and training of its employees and mining apprentices, which is almost four times more than in 2010.

The company is also taking care of the reclamation of areas impacted by coal mining. “When looking at pictures of Karviná ten or twenty years ago, the progress is exceptional. Our efforts to restore the undermined areas are not just a plain statement,” added Mr. Beck.

The donations to the OKD Foundation, municipalities and communities in the regions were almost fivefold reaching CZK 146 million.

Vladislav Sobol, OKD Spokesperson
Cell phone: 725 595 417 E-mail: vladislav.sobol@okd.cz

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