NWR’s $1.2bn Polish coal bid lapses
“A $1.2bn hostile bid by New World Resources for Poland’s profitable Bogdanka coal mine has lapsed after failing to attract enough interest from the pension funds that are its main shareholders.”
- The Bogdanka mine in Southern Poland was privatised in 2009 and reported roughly $60mln profit. Pension funds are the majority shareholders of the mine.
- New World Resources (NWR) operates four hardcoal mines in the Czech Republic. The company is headquartered in the Netherlands and reported €1.1bln revenues in 2009 at a €62mln net loss.
- Although this specific deal has fallen through, the offer indicates a renewed interest of investors in mining in Eastern Europe. The improved political stability, infrastructure and workforce skills and privatisation of mining assets make some of the coal and mineral deposits in countries like Poland, Czech Republic and the Ukraine suitable candidates to supply Western Europe.
©2010 | Wilfred Visser | thebusinessofmining.com