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NWR - Update on Paskov negotiations

22.04.2014 14:18
New World Resources Plc (the 'Company' or 'NWR') announces today that its wholly owned subsidiary OKD a.s. ('OKD') has reached an agreement with certain members of government on a proposal to be submitted to government as regards financial support of the closure of its Paskov Mine.

The main elements of the proposal are:

  • OKD extends the operation of the mine until 31 December 2017 for its own account
  • the state provides an amount of CZK 600 million covering the social costs of the closure
  • if coking coal prices drop below 110 USD per tonne for three consecutive quarters (according to the International hard coking coal benchmark) in period of between 1 July 2014 and 31 December 2017, the agreement is invalid and both parties will renegotiate the agreement in good faith
  • OKD retains the flexibility to continue mining at Paskov after 2017 should it decide so; the agreement also becomes invalid if the net result of the Paskov mine is positive (in sum) for at least four consecutive quarters.

The proposal is expected to be discussed by the Czech government by the end of April. After approval by the Czech government the agreed support needs to be approved by the European Commission.


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