Research (Investicniweb.cz)
Czech markets  |  June 04, 2012 16:54:50

NWR: What does Debiensko stop the project?



NWR has decided to pause and rethink the whole project Debiensko Polish. The two main reasons for the revision of several of the project were higher than projected costs of Polish suppliers (about 10 to 20%) and higher costs associated with pumping and desalination of groundwater. (Source: CONSEQ)

Partial suspension of work will reduce capital expenditures for 2012 to around 5 million euros from the originally planned 40 to 50 million.

Stop operations is perceived negatively because Debiensko an important part of NWR's coal reserves (190 million tons of coal). At the same time after the completion of preparatory work prior to the extraction should be the most efficient company mine NWR .

Thus, if the Board of Directors of NWR finds that current problems within the project profitability is solvable, decides to continue preparations for extraction.On the other hand, experienced management so that in case of significant risks leading to nerentabilitě project would be abandoned by him and focused on the acquisition of other mining companies.

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