The Future of Mining and Business Opportunities for OKD after 2025

Record coal prices led OKD last year to its best results in the last 11 years, which they achieved with only one functioning mine. It is practically certain that the company will not surpass this result, as mining in the Karvina region will end in 2025. That is why the state-owned company is now diligently focusing on what to do next. It will not only be about mine remediation, but also about business that generates profit.

“We have the space, equipment, and skilled people to be able to mix blends from thermal coal. We will import and process coal in the Czech Republic,” explained OKD CEO Roman Sikora in an interview for HN. According to him, the capacity of the mixing station will be 650,000 tons of coal per year. The main customers are expected to be heating plants and cement plants. In addition, OKD intends to use its land – in Karvina alone, it has 707 hectares designated for construction.

According to the original plans, coal mining in OKD was supposed to end at the end of 2022. In the end, the deadline was extended to 2025. What does the extension of mining mean?

I can only imagine it is difficult. Already because after 2025, we will not have enough people to ensure mining. There are no new miners in the Czech Republic, and convincing young people to start their careers in mining is impossible. The labor market only offers workers with practical experience, who have already passed through the gates of OKD once, received their pensions, or requalified. However, only a handful of them returned. The only option for us are miners from Poland, where mining will continue until 2049. There are enough miners there who have reached the age when they can retire from mining in Poland and be available for OKD. We will use a lot of them through subcontracting companies. About 800 people work for us, the vast majority of them are Poles. I think that 2025 really means the definitive end of coal mining.

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How is OKD preparing for the end of coal mining in the Karvina region through diversification and exploring renewable energy options?

Company is now focusing on diversifying its business and exploring renewable energy options.

Last year, OKD, a Czech coal mining company, experienced record-breaking coal prices, leading them to achieve their best financial results in the past 11 years. Surprisingly, this milestone was accomplished with only one operational mine. However, the company faces a bleak future as mining in the Karvina region, where OKD operates, is expected to cease by 2025.

With the certainty of an imminent end to coal mining, OKD has made the prudent decision to shift its focus towards diversification and exploring renewable energy opportunities. The company recognizes that it cannot solely rely on coal as a sustainable source of revenue. As a result, they are actively seeking alternative business ventures that align with the transitioning global energy landscape.

This strategic shift emphasizes OKD’s commitment to adapt to changing market dynamics and contribute to a greener future. By embracing renewable energy options, the company aims to mitigate the financial challenges it will face once coal mining operations come to an end. This proactive approach will not only protect OKD’s economic stability but also enable them to be part of the solution in combating climate change.

Although achieving their highest financial results in over a decade is undoubtedly a commendable feat, OKD acknowledges that surpassing this record will be unlikely. However, the company remains optimistic about its future prospects by exploring new horizons in the energy sector. By embracing innovation, OKD is determined to secure its place in the evolving market and play a leading role in the renewable energy industry.

As the end of coal mining in the Karvina region looms closer, OKD’s journey towards diversification marks a significant turning point in the company’s history. By recognizing the need to adapt to new energy trends, OKD is not only safeguarding its future sustainability but also embracing a cleaner and more eco-friendly approach. This shift symbolizes their commitment to leaving a positive legacy and contributing to a greener and more sustainable world.