Health, safety and employees

We have implemented stringent and sophisticated safety programmes and monitoring systems and practices throughout our mines and coking plants. Hard coal mining involves a degree of risk, particularly given the depth of our mines at OKD. Tragically seven of our employees died in 2008. The risks emanating from geological hazards, including rock falls as well as gas explosions, are always present and have to be adequately managed.

We strive to learn from all accidents and to implement further measures in order to prevent similar events from occurring in the future. Investigations into the cause of every fatal accident are conducted by a committee normally comprising of members of the mining community, management and the trade union.

Time lost to injuries is a clear measure of the general safety procedures in force. In this respect, our safety record is comparable to worldwide standards. Furthermore, it is continuing to improve; the LTIFR for 2008 showed a substantial decrease, down by over 17 per cent at OKD and 39 per cent at OKK, compared to 2007.

Employees

NWR operates in regions of the Czech Republic where mining has been a traditional career. Our success and growth as a company, coupled with our belief in the future, show our commitment to building on that tradition into the twenty-first century by upgrading our whole business to make it more advanced and efficient.

We are providing significant levels of training both for our new equipment as well as to strengthen existing skill-sets. Our employees can take advantage of an internal training scheme to provide them with skills additional to the day-to-day requirements of their employment. Not only does this develop their potential, it can also help employees pursue alternative career paths.

Mining salaries and wages are substantially higher than average remuneration of Central European industries. NWR is no exception in this regard and we also pay specific bonuses, including summertime, holiday, Christmas and long service bonuses. Bonuses are performance-related, dependant on productivity and overall Company performance.

Apprenticeship scheme

We continually try to identify new ways to invest in the future of the Company and its people. In September 2008, we announced our latest initiative, the launch of a mining apprenticeship programme.

We have an agreement with Karviná Technical and Service High School, a leading Czech technical college, which has established new apprenticeship courses for underground mechanics and underground electricians. NWR will support three-year apprenticeship courses for 30 underground mechanics and 30 underground electricians each year. The town of Karviná is close to our mines in the north-eastern part of the Czech Republic.

The initiative reiterates our commitment to improve the skill-sets of our employees and is an example of our commitment to strengthening partnerships within the communities in which we are present.

The first intake of apprentices commenced at the start of the 2009 school year. The courses include practical work experience at our mine surface facilities.