New World plans UK move

Central European coal miner New World Resources has benefited from higher volumes and increased coal prices in the third quarter and it intends to reincorporate in the UK so that it is eligible for the FTSE 250 index. A feasibility study has commenced and the move should happen in the first half of 2011. Becoming part of an FTSE index will make the company a more attractive investment opportunity to international investors. Operating income from continuing operations was €181.4m in the nine months to September 2010, against a €9.96m loss in the same period last year. Lower costs of production helped the coke operations return to profit. The cost of mining coal increased but that part of the business still more than trebled its contribution. New World is in the middle of a €857m bid for Polish coal producer Bogdanka. Net operating cash flow was €182m in the first nine months of 2010. New World's net debt was €370m at the end of September 2010. Steel production is rising and that means demand for metallurgical coal is recovering. Negotiations have begun with customers about 2011 prices. New World is continuing to control its costs and improve efficiency.