In an effort to save thousands of jobs, the Czech government may consider buying New World Resources’ Czech hard coal mining unit if things get more dire for the financially strapped company. NWR stock plummeted earlier this month, and the company has been unable to gain enough support from bondholders for a restructuring plan. NWR officials said they may have to offload the company’s mining divisions in the Czech Republic (OKD) and Poland (Karbonia) to avoid going bankrupt. Jan Mládek, the Czech industry minister, said it would be best if OKD is taken over by a strategic investor with experience in the coal mining industry. However, if a suitable strategic investor cannot be found, the Czech government may step in and buy OKD, but Mládek admits that the deal may be difficult. Mládek did not say if the government has approached the EU about a possible takeover.
NWR posted €850m in profits last year, most of which was brought in by OKD. The Ostrava-based mine has 14,000 employees. NWR inked a deal with the Czech government in June to keep the mine running until 2017.
