Students:Mining company group

CZECH COAL GROUP, a.s.

The Czech Coal Group is based in Most and it is one of the biggest suppliers of electricity in the Czech Republic. It includes mainly mining companies Vršanská, Uhelná and Litvínovská Uhelná, Czech Coal a.s. itself is a trader in energy commodities and GHG emission allowances. Czech Coal contributes to the total brown coal extraction in the Czech Republic by 32%. The group holds shares in several power and heat plants. Czech Coal Group is an important regional employer and provides jobs to 5100 people. In the Most region, 6,8% of workers were employed by Czech Coal in 2010. In 2010, The group had annual net income of 3,3 billion (about 130 Million Euros) Czech Crowns.

Mining – past, present and future

Intensive mining for brown coal in the Most region began in the second half of the 19th century. In the first decades, underground mining was applied. In 1901 surface mining began and was intensified after the Second World War, when the national strategy was to extend heavy industry production. After 1989 brown coal mining was reduced from 87 million tonnes to 67 million tonnes in 1993.
In 1998 Mostecká Uhelná the state mining company operating in the Most region, was privatized. Recently renamed to Czech Coal, the company continues with its activities within the given mining limits.

Czech Coal operates in two mines in the North Bohemian Coal Basin– ČSA and Vršany. Vršany will provide an annual amount of 7million tonnes of brown coal till 2052, then it will be closed down. In the ČSA mine the available reserves contain 305 million tonnes of brown coal. More than 4,5 million tonnes were extracted here in 2010, however in 2012 the amount should be reduced by 50% as the company aims to live on the reserves till 2021.

Brown coal reserves located next to ČSA beyond the current mining limits are the biggest in the country: they are estimated to 925 million tonnes, which makes Usti nad Labem Region an attractive long-term investment opportunity and has the potential to become a very important location for the European energy generation. To decrease the EU’s dependency on energy imports, which are already today approximately 50% of energy raw materials, it is absolutely essential to keep up the regional mining activities and to consider the possibility of exceeding the mining limits: the growing lack of energy generation sources in Europe are alarming and it would be absolutely irresponsible to give up this region’s mineral wealth and not to use it to support extensive sustainable development or even reconstruction of the region. Moreover, the Czech energy sector relies on coal and would be even able to export energy, which would generate income and strengthen the economical position of the country.

The energy industry in Czech Republic

The gross electricity generation in 2009 was 82.3 TWh. Thermal power plants cover around 60% of domestic electricity consumption. Up to 90% of brown coal in Czech Republic is used for the generation of power and heat.

In 2014, the new National Energy Concept will come into action. The proposed version from spring 2010 states that the field of coal energy should be supported and further developed as an important source of heat mainly. Highly efficient and clean technologies of coal transformation should be used. In order to eliminate the dependence of energy import, all available coal supplies should be exploited, including those beyond current mining limits which were set by the Government Resolution No. 444/1991.

Company Social Responsibility

The mission of Czech Coal Group is: “Responsible management of the largest coal reserves in the Czech Republic; environmentally friendly coal mining and return of reclaimed landscape to people and nature and investment in clean electrical energy generation from coal and renewable resources.”
The Czech Coal Group fully respects Act No. 44/1988 on the Protection and Utilisation of Mineral Resources requires mining organisations to ensure clean-up and reclamation of the affected land. At the end of 2009, reclamation work was under way on 14% (6444 ha) of the area where the Czech Coal companies operated and ever since 1995 all the mining waste has been deposited in the former mines. A total of 3,2 billion Czech Crowns were invested in reclamation in the period from 1998 to 2009. Apart from forest, agricultural and water reclamation, our daughter company REKULTIVACE a.s. grows energy sorrel in a total area of 60 hectares, which presents our contribution to the promotion of renewable resources. Impacts of mining are minimalised by a Development and Working Face Advance Plan (DWAP), which is taken on board throughout the exploitation period.

Czech Coal Group puts strong emphasis on labour safety and employees’ welfare. This has been approved by the several Golden Permons, a prize awarded by the Czech mining Office and other authorities. Czech Coal Group has a Public Relations Code of Ethics, which refers to international standards such as the Stockholm Charter for example. As a result, Czech Coal runs several projects which improve its economic, environmental and social responsibility. These include the reduction of air pollutants, coal quality monitoring, educational programmes, regional co-operation, sustainable development reporting and a health programme. Czech Coal Group maintains dialogue with regional authorities as well as local communities. A so called Co-existence Centre was founded in Litvínov for these purposes. Also investments are carried out regularly – the total amount of money paid to municipalities in the 1999-2009 period was 540,7 million Crowns.
Czech Coal feels not only responsible for its employees health as also for the health oft the inhabitants living around their mine fields. The very engaged NGO-Group "Protest" sees this point as well: "Air pollution around the Ore Mountains is significant for the health of the inhabitants and the environment."

References

Czech Coal Group, a.s.

SWOT Analysis of Czech Coal Company

Strengthts	Weaknesses
1. vital energy suppliers 2. lobbyism 3. unpopularity of of alternative ressources	1. mining limits 2. obligatory contributions &                   reclamations
Opportunities	Threats
1. new/more coal ressources 2. bussinesses in reclaimed areas 3. new technologies	1. unstable legal & political     conditions 2. preserving limits 3. NGOs / locals 4. media 5. renewable energy