POP 2010, Karviná Mine
POP 2010, Karviná Mine
POP 2010, Karviná Mine
In 2007, we took a major strategic decision to improve the efficiency and profitability of our business.
POP 2010 is a two phase project. Phase I has been completed on time and to budget and all longwall and gateroad equipment is in operation. Phase II is on schedule. Delivery commenced in February 2009 with all gateroad equipment in operation and the last longwall equipment scheduled to operate in December 2009.
The first months of operation of the new longwall and development sets justified the capital expenditure – with labour productivity and employee safety significantly increased.
The programme involves a significant recapitalisation to upgrade our underground longwall and development equipment at all four of our mining facilities. This will replace existing assets with state-of-the-art equipment.
In March 2008, following exhaustive testing, approximately 150,000 pieces of equipment were dispatched from an array of European manufacturing plants, most notably the Bucyrus* headquarters in Lünen. More than 1,100 trucks were used for the transport. All this required extensive logistical planning.
Once delivered, the equipment was unloaded and transported to the mining work areas, where it was assembled and installed in the individual coalfaces under the supervision of Bucyrus experts.
At the same time, the equipment operators were taken through a wide-ranging training programme. This was carried out partly in Germany, and partly in our individual mines.
The POP 2010 equipment is more technologically advanced relative to our older equipment and hence, less prone to breakdown and this should require less maintenance. Also, health and safety features are materially enhanced, for example reductions in dust and noise.
With the new equipment, we will be able to boost productivity, reduce costs and mine in areas which were previously not safe to access.
The outstanding committed CAPEX related to Phase II of POP 2010 is approximately EUR 163 million. EUR 116 million will be paid as CAPEX in 2009, while EUR 47 million has been deferred into 2010, although all the equipment will be delivered during 2009. NWR expects to finance these equipment purchases out of existing cash or funds borrowed under a secured loan arrangement. The Company is evaluating several secured financing options.
In addition to POP 2010, we are implementing our Coking Plant Optimisation Programme (“COP 2010”) which is progressing to schedule.
The refurbishment of the first section of Svoboda coke plant battery No. 8 has been completed and heating has started. The start-up of the chamber took place in December 2008.
Preparatory work for the construction of the new No. 10 coking battery at the Svoboda plant has also started.
The COP 2010 investments will also help improve the efficiency of our coking operations.
These programmes are transforming NWR into a world-class business, which will be ready to take advantage of any global economic recovery.
NWR continues to review the implementation of its investment plans to ensure optimum scheduling and cash flow enhancement.
* Bucyrus DBT Europe GmbH, the German subsidiary of Bucyrus International, Inc., a mining equipment manufacturer.
Performance increase of new POP 2010 equipment vs old
| Mine | Output per day increase |
Output per man per shift increase |
|---|---|---|
| Karviná | 2.3x | 4.0x |
| Darkov | 3.0x | 2.3x |
| ČSM | 3.0x | 3.4x |
POP 2010 Equipment delivery schedule
| Longwall mining equipment | Gateroad development equipment | ||||
|---|---|---|---|---|---|
| Low seam | Mid seam | High seam | Roadheaders | Jumbos and loaders |
|
| Phase I | |||||
| Karviná | *1 set | *1 set | *1 set | *2 sets | |
| Darkov | *1 set | *1 set | |||
| Paskov | *2 sets | ||||
| ČSM | *1 set | *1 set | |||
| Phase II | |||||
| Karviná | 1 set | *2 sets | |||
| Darkov | 1 set | *1 set | |||
| Paskov | 1 set | 2 sets | |||
| ČSM | 1 set | 1 set | *1 set | ||
| * indicates delivered and operational | |||||