January 22, 2015 / 6:41 PM / 3 years ago

New World Resources revives plans for Polish coal mine

LONDON, Jan 22 (Reuters) - Eastern Europe-focused miner New World Resources (NWR) said it was exploring ways to fund a revival plan for its Debiensko coal mine in Poland, a project it had previously deemed uneconomic and shelved.

The miner said it had now found ways to reduce capital and operational expenditure required for the project in southern Poland and it was now looking to attract funding for a two-year feasibility stage for the project.

Loss-making NWR, which also has coal mines in the Czech Republic, has struggled to adjust to falling coal prices and last year had to undergo a restructuring. It said in November it would return to generating cash by the end of this year.

An independent review of the Debiensko mine, carried out by DMT Consulting GmbH, found the mine had proven coal reserves of 263 million tonnes which could yield 186 million tonnes of marketable hard coking coal.

“NWR has made further improvements to the project’s business, development and mining plan, and has undertaken a value engineering exercise,” the company said in a statement.

The review has forecast a long-term price for hard coking coal from Debienkso at 130 euro per tonne.

NWR had shelved plans to build a mine at Debiensko in 2012 after the company was awarded a 50-year mining licence at the site in 2008.

The company produced 2.269 million tonnes of coking coal in the last quarter of 2014, bringing its annual output to 8.601 million tonnes, just below its target range. (Reporting by Karolin Schaps. Editing by Jane Merriman)

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