Czech-based coal miner New World Resources has announced that its wholly-owned subsidiary OKD has signed an extension of the memorandum of understanding (MoU) with the Czech government on the closure of its Paskov coking coal mine in the Ostrava region. The validity of the memorandum has been extended by one month until April 30, 2014.
NWR signed the memorandum of understanding with the Czech government in January this year according to which the parties would explore the option of OKD extending the operation of the mine until December 31, 2016 at its own risk and account after which ownership of the mine will be transferred to the Czech State for a symbolic CZK 1 for closure.
NWR had decided to shut down the Paskov coking coal mine last year to cut operational costs by €100 million amid falling commodity prices.