Politics and business have long been tightly entwined in the Czech Republic, but political attention is becoming a growing problem for Czech coal tycoon Zdenek Bakala, who is playing an important, if uncomfortable, role in that country’s ongoing parliamentary election campaign.
His problem started when New World Resources. the Dutch-registered coal miner that is controlled by BXR Group, his investment vehicle, announced that it was going to have to close its Paskov coking coal mine by next year.
By Nicholas Watson of bne
The creation of New World Resources by tycoon Zdenek Bakala out of the remnants of the Czech coal industry and its subsequent IPO was aimed at producing a miner capable of consolidating Central Europe’s fragmented coal industry.
Not for want of trying, NWR’s efforts have so far been in vain, and its new chairman now says the miner intends to spread its net wider, including as far afield as the US.
Central Europe’s economies are slowing, but the region is still doing better than much of the rest of the continent, the reason that regional coal miner New World Resources says it was able to beat expectations for the second quarter of the year.
The company reported sales of €347.5m for the quarter, down 24 per cent over the same period a year earlier and in line with expectations, while net income came to €28.3m, down by 66 per cent but better than the average estimate of €18.3m in a Reuters poll, in large part due to successful cost cutting.