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OKD will merge management of Lazy Mine and ČSA Mine

OKD will merge management of Lazy Mine and ČSA Mine

Ostrava, 31st March 2008 – OKD will merge the management at Lazy Mine and ČSA Mine that are mining coal under Karviná and Orlová at the beginning of April. Both mines will operate under the new name of Karviná Mine. The united management structure should improve mutual coordination and improve coal production efficiency as well as safety conditions for miners. “It is a logical outcome of cooperation of both mines that were interconnected underground years ago. There will be no changes in the underground operations, we also maintain the planned coal production level as well,” stated Klaus-Dieter Beck, OKD CEO and Chairman of the Board of Directors.


“The financials of the merged mine will be better that when they were managed separately. However, we expect to see the greatest benefits in streamlining the operations management, better accessibility of workplaces and better organization of work of surface and underground employees,” explained Mr. Beck.


Karviná Mine will be managed by Pavel Hadrava, the up-to-now General Manager of Paskov Mine. He will be replaced at Paskov Mine by Vladislav Szmek from Darkov Mine.


The previous General Managers of Lazy Mine and CSA Mine will take over newly created  important senior management positions within of OKD’s organization.


There will be no change in the OKD headcount after the merger. “In the course of this year, we will gradually finalize the change in management structure that will induce a headcount reduction in some management functions. Most of employees disengaged from Karviná Mine will find jobs at other mines and operations of the company where OKD needs experienced experts,” said Mr. Hadrava.


At the end of February, OKD employed approximately 15,200 employees and further almost 1,500 employees in its subsidiaries. Another more 3,500 miners work for OKD under contractor agreements. Besides Karviná Mine with its Lazy and ČSA sites, OKD mines coal at ČSM Mine and Darkov Mine in Karviná District and at Paskov Mine at Frýdek-Místek District.


The OKD joint-stock company is owned by the Dutch company New World Resources B. V.