Management Report on Company Business
Activities and Assets

CAPITAL INVESTMENT

The Company expended CZK 1,536 million on acquisitions of tangible and intangible fixed assets. Almost 75% of funding was channelled into structures, supplies, reconstruction, and modernization directly linked to the mines’ extraction operations. The capital investment programme also included environmental construction, primarily intended to find solutions for wastewater treatment.

Capital Investment Projects at Doly Nástup Tušimice

  • construction of a new removal and spreader belt line at the Overburden Unit
  • construction of the first removal belt line for the new coal corridor at the Quarry Unit and commencement of the construction of the second belt line
  • assembly of a new SchRs 1550 excavator and its transportation to the extraction site
  • commencement of the construction of a new central control room for the Quarry Unit
  • construction of protective wooded embankments near Černovice

Capital Investment Projects at Doly Bílina

  • commencement of Phase Two of the number 3 coal conveyor, following on from Phase One, completed in 2000
  • reconstruction of the wheel discharger tip on the K 2000 excavator and commencement of the same reconstruction work on KU 800/19 and KU 800/18 excavators
  • reconstruction of the chassis of the K 650 excavator
  • commencement of the fourth and final phase of the programme to modernize the outdated technology control system at the Ledvice Coal Preparation Facility
  • commencement of the reconstruction of the mine’s main distribution framework
  • wastewater treatment plant for water from the Ledvice Coal Preparation Facility
  • construction project for the expansion of retail sales, including a vehicle loading ramp area
  • commencement of the reconstruction of a pit water treatment plant

Principal Suppliers and Contractors

The main technology suppliers are VÍTKOVICE – PRODECO, KLEMENT Řehlovice, and UNEX Uničov. The main construction contractors are KLEMENT Řehlovice and Stavební společnost Jaroslav Oršuliak.

Key Contractual Relations

In 1997, the Company signed a pre-contract agreement with VÍTKOVICE – PRODECO for the supply of a set of three pieces of heavy extraction equipment for Doly Nástup Tušimice. Under this framework agreement, a contract for a spreader machine was signed; this equipment was put into operation in 2000. Another contract was signed for the supply of an initial excavator, which was transported from the assembly plant to the excavation site in December 2001. A decision on whether to sign a contract for a second excavator will be made in 2002.
In 2001, a contract was concluded with KLEMENT Řehlovice for the construction of Phase Two of the third coal conveyor at Doly Bílina. Other contracts signed by the Company with KLEMENT Řehlovice were for the construction of a new removal and spreader belt line for overburden and two removal belt lines for a new coal corridor at Doly Nástup Tušimice.
In 2001, contracts were signed with UNEX Uničov for the reconstruction of two KU 800 excavators and a K 650 excavator for Doly Bílina.

Investment Strategy and Future Investments

The long-term investment programme includes projects intended to safeguard mining processes at the quarries by renewing mining technology, reconstructing and modernizing current mining technology, and reconstructing and modernizing auxiliary operations. At Doly Nástup Tušimice, over the next few years the Company is preparing for the completion of new removal belt lines, the reconstruction and modernization of excavators and conveyor belts, the assembly of a new overburden excavator, the reconstruction and modernization of technology at the ÚDUT II Crushing Plant, the completion of the new coal operation central control room, the renewal of railway operation security facilities, the modernization of the main pit distribution system, and an increase in the capacity of and the modernization of the pit water treatment plant.
The next few years at Doly Bílina should see the completion of the third coal conveyorthe reconstruction and modernization of excavators and conveyor belts, the modernization of the pit ’s main distribution system, the completion of technology replacement at the Ledvice Coal Preparation Facility, including a control system and the renewal of railway operation security equipment.