New World Resources to Close Paskov Coal Mine

Mineweb reported that New World Resources plc, a Czech coal miner, plans to close its Paskov mine now that a review has revealed it will remain uncompetitive in the medium term.

As quoted in the market news:

NWR spokesman Petr Jonak said that, without any external aid, the pit would be open until the end of 2014 and hundreds of workers would stay somewhat longer to complete the closure.

‘The board confirmed what we have been saying, that Paskov is not sustainable,’ he said.

NWR has been hit by a drop in prices of the coking and thermal coal it produces at some of the highest costs globally due to tough geological conditions. Coal prices have been driven down by the growth of shale gas extraction in the United States.

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