8th Apr 2014 10:55
LONDON (Alliance News) - New World Resources PLC Tuesday said that no definitive agreement has been made regarding arrangements for the closure of its Paskov Mine in the Czech Republic.
The mining company was responding to media speculation that a deal has been reached to delay the closure, stating that discussions are ongoing and at this point but no firm deal had been reached.
The Wall Street Journal said on Monday that the parties had reached an agreement to delay the closure for three years, with financial backing coming from the state.
The agreement would keep the Paskov mine operating until the end of 2017, with the Czech state contributing roughly USD30.1 million to fund social programmes for miners at the site, the WSJ said.
The company said last year that it would close the site at the end of 2014.
Earlier in the month, the company's subsidiary OKD signed an extension of the memorandum of understanding on the closure of its Paskov Mine until April 30.
However, the company said on Tuesday that it has not yet come to an agreement and it will continue its dialogue with all stakeholders with the aim of reaching a definitive agreement in the near future.
The news comes a day after the company announced another fatality at the operations of its Czech mining subsidiary OKD, occurring on Saturday.
It was the second death at the company's operations in as many months despite New World Resources announcing in February that it is committed to achieving fatality-free operations.
New World Resources shares were down 5.0% to 37.75 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
New World Resources