• Czech Coal Group
• Czech Coal a.s.
• Vršanská uhelná a.s.
• Litvínovská uhelná a.s.
• Dceřiné společnosti

Yearly Report of the Czech Coal Group:

Business Activities and Sustainable Development in 2009

This Yearly Report of the Czech Coal Group was verified by Det Norske Veritas CZ, s.r.o.

The GRI methodology is applied at level A+.

The Czech Coal Group’s report is based on the Global Reporting Initiative (GRI) international reporting methodology. It has been prepared in keeping with GRI Sustainability Reporting Guidelines Version 3.0, 2006 and the methodology for the extractive industries (GRI Mining and Metals Sector Supplement, 2005). In compliance with the principles of sustainable development, GRI promotes voluntary disclosure of environmental, economic and social indicators by organisations, in particular privately held businesses. The objective of GRI is to support the transparency and credibility of the activities related to sustainable development. More information about the GRI initiative is available at www.globalreporting.org. 

Download: Yearly Report of the Czech Coal Group: Business Activities and Sustainable Development in 2009 (PDF, 12 MB)

Contents

Statement by the Chief Executive Officer of Czech Coal a.s.

Intended Use of this Report

1. GROUP BUSINESS IN 2009

• 1.1 Group Profile
  • Czech Coal Group’s Mission
  • Czech Coal Group’s Core Business
  • Czech Coal Group’s Place of Business
  • Map No. 1 Czech Coal Group Companies and Important Facilities 
in the Ústí nad Labem Region
  • 1.1.1 Shareholder Structure of the Czech Coal Group
    • Ownership structure of the Czech Coal Group as at 1 January 2010
  • 1.1.2 Vision and Strategy of the Czech Coal Group
  • 1.1.3 Management Structure
• 1.2 Business Results of the Czech Coal Group
  • 1.2.1 Consolidated Key Financials for the Group
  • 1.2.2 Tax Liability Compliance
• 1.3 Electricity Trade in Czech Coal a.s.
  • 1.3.1 Electricity Trade in the Czech Republic
  • 1.3.2 Czech Coal’s Trading on the PXE Exchange in 2009
  • 1.3.3 Electricity Pricing
    • The Prices of Energy Generated from Conventional and Renewable Resources
  • 1.3.4 Electricity Trading – Offer to Customers
  • 1.3.5 Electricity Trading Results in 2009 and Outlook for 2010
    • Electricity Trading Outlook with Respect to Economic Recession and Financial Crisis
• 1.4 Brown Coal Trade at Czech Coal a.s.
  • 1.4.1 Brown Coal Trade
    • Results of Brown Coal Trade
    • Czech Coal Group’s Brown Coal Product Range – Data for 2009
    • Market Segments
    • Average Quality Parameters of the Most Brown Coal
  • 1.4.2 Czech Coal Group’s Brown Coal Trade Strategy
    • Business Strategy
    • Brown Coal Pricing and Changes in 2009
    • Provision of Information to Customers and the Treatment of Customer Claims
    • Customer Satisfaction Evaluation
• 1.5 Brown Coal Production
  • History of Coal Mining in the Vicinity of Most
  • Brown Coal Mining in the Czech Coal Group
  • 1.5.1 Litvínovská uhelná a.s. – Production of Brown Coal for the Power Industry and Power and Heat Industry and for Households
    • Profile of the ČSA Surface Mine
  • 1.5.2 Vršanská uhelná a.s. – Production of Brown Coal for Power Plants
    • Profile of the Vršany Surface Mine
  • 1.5.3 Deep Brown Coal Mining – Důl Kohinoor a.s.
  • 1.5.4 Mining Extension, Production and Delivery of Coal Products
    • Map No. 2 Brown Coal Reserves at the Main Sites of the Czech Coal Group
    • Outlooks for Brown Coal Mining
  • 1.5.5 Quality Management and Responsibility for Products
    • Information System for Brown Coal Quality Management
    • Ash Meters, Sulphur Meters, Automatic Samplers
  • 1.5.6 Applied Research
• 1.6 Mechanical Engineering – Krušnohorské strojírny Komořany a.s.
  • Machine Units and Technological Assemblies
  • Varimatik Boilers
  • Calibration Laboratory
• 1.7 Construction and Earthwork – DTS Vrbenský,a.s.
• 1.8 Rubber-related Services – RENOGUM a.s.
  • Conveyer Belt Servicing
  • The Rubber Programme
• 1.9 Other Business Activities in the Group
  • 1.9.1 Shared Services - Czech Coal Services a.s.
  • 1.9.2 Operation of the Main Mine Rescue Station in Most (HBZS) and Fire Brigade (HZS) of Litvínovská uhelná a.s.
  • 1.9.3 Surface Mine Drainage, Operation of Water Treatment and Pumping Facilities – HUMECO, a.s.
  • 1.9.4 Informatics – Infotea s.r.o.
  • 1.9.5 Reclamation – REKULTIVACE a.s.
  • 1.9.6 Support to Sports – HIPODROM MOST a.s.
• 1.10 Overview of ISO Standards and the Stages of Core Product Quality Evaluation 
in the Czech Coal Group
  • 1.10.1 Quality Standards and Quality Management Certificates in the Companies of the Czech Coal Group, 2009
  • 1.10.2 Stages of Quality Assessment within the Core Products’ Useful Lives

2. SUSTAINABLE DEVELOPMENT, 2009

• 2.1 Sustainable Development Performance Management and Control
  • 2.1.1 Environmental and Social Responsibility Development in the Group
    • Targets of the Group’s Environmental and Social Responsibility
    • Facts Concerning Transformation in the Sector of Brown Coal Surface Mining
    • Labour Safety Awards Won by the Companies of the Czech Coal Group
    • Award for Field Monitoring at Mining Activities
  • 2.1.2 Sustainable Development Performance Management and Control
    • Management to Minimise the Impacts of the Organisation’s Operating Activities on Communities
    • Projects that Enhance Economic, Environmental and Social Responsibility in the Czech Coal Group
    • Responsibility for Products in the Marketing Communication Area
    • Involvement in Public Policy
    • Promoting an Open and Transparent Market
    • Compliance with Legislation and Adherence to Legal Regulations
    • Major Litigations, Inspections and Incidents, Accidents, Charges and Fines
    • Internal Codes of Ethics and the Economic, Environmental and Social Performance Principles, Methodologies and Policies
• 2.2 Risks and Opportunities of the Business of the Czech Coal Group
  • 2.2.1 Risks to the Business of the Czech Coal Group
    • Risk of Reduction of Energy Supply from Traditional Resources (coal, nuclear power)
    • Risks that May Arise from the Proposed Amendments to Brown Coal Mining Legislation 
and from Imposition of Charges and Taxes on Brown Coal, its Extraction and Sale 
and on the Energy Generated from it
    • Risks that May Arise from Future Changes to the Clean Air Legislation
    • Risks in the Social Area and the Impact of Recession
  • 2.2.2 The Group’s Opportunities in Sustainable Business Development
    • Full Liberalisation of the Electricity Market and More Consistent Unbundling
    • EU Perspective on the Use of Coal for Energy Generation
    • Investments in Renewable Resources
    • Reclamation and Revitalisation after Coal Extraction
• 2.3 Relationships with the Stakeholders of the Czech Coal Group
  • Principles of Relationships with Stakeholders
  • Types of Stakeholders and the Usual Methods of Communication
  • Reporting the Views of the Inhabitants of the Region, 2009
• 2.4 Rules of Non-financial Reporting
  • Priorities
  • Reporting Limits
  • Reporting Methodology
  • Changes in the Group’s Ownership and Organisation
• 2.5 Sustainable Development and the Position of Brown Coal Power Generation in the Czech Republic
  • 2.5.1 Environmental Development – Air Quality in the Czech Republic
    • Environmental Impact of Power Generation – the Air
  • 2.5.2 Environmental Impact of the Energy Sector – Air Quality in the Ústí nad Labem Region
    • Energy Sector in the Ústí nad Labem Region: its Importance and Impact
    • Reduction of Pollutant Emissions in the Past Decade
    • Reduction of the Weight Concentration of Dust and Sulphur Dioxide in the Air of the Ústí nad Labem Region
    • A Doubtful Assertion: „Households Return to Brown Coal Use for Heating“
    • Relationship between Better Health and Cleaner Air
    • Evaluation of Air Quality Development Trends in the Ústí nad Labem Region in 1990-2008 and the Importance of Coal-Firing Energy
  • 2.5.3 Issues of Energy Sector Regulation and Health Benefits for the Population
  • 2.5.4 Outlook of Brown Coal Power Generation in the Czech Republic
    • Brown Coal Reserves in the North Bohemian Coal Basin and the Mining Limits
    • Brown Coal Production in the Czech Republic
    • Proportion of Electricity Generated from Brown Coal in the Czech Republic
    • Current and Projected Use of Graded Coal in the Czech Republic
  • 2.5.5 Strategic Documents on the Development of Energy Management in the Czech Republic
    • National Energy Concept, Mining Limits and Coal Production in the Czech Republic
• 2.6 Economic Relationships of the Czech Coal Group with the Local Communities
  • 2.6.1 Funds Generated by the Czech Coal Group
  • 2.6.2 Financial Benefits from Brown Coal Extraction to Communities in the Most and Chomutov Area
• 2.7 Environmental Protection
  • 2.7.1 Environmental Care Principles and Basic Data
    • Pollution Source Controls
    • Water Protection
    • Waste Management
    • Management and Disposal of Equipment with Possible PCB Content
    • Management of Chemical Substances and Chemical Products
  • 2.7.2 Summarised Data on the Environmental Impact of the Group’s Production Companies
    • Pollution Sources in the Production Companies of the Czech Coal Group in 2009
    • Summarised Environmental Indicators of the Group’s Production Companies, 2009
  • 2.7.3 Environmental Protection in Brown Coal Production
    • Total emissions and the production of waste generated during coal extraction and processing in the Czech Coal Group
    • Air Quality Protection in Brown Coal Grading and Preparation
    • Impact of the Transportation of the Main Czech Coal Products
    • Use of Energy By-products from the Coal Combustion Process
    • Measuring Air Pollution and Noise Levels Caused by Surface Mine Operation
    • System of Monitoring the Side Slopes of the ČSA Surface Mine
    • Other measurement performed
  • 2.7.4 Tables Showing Energy and Material Requirements in the Czech Coal Group
• 2.8 Reclamation in the Czech Coal Group
  • Basic Reclamation Data for the Czech Coal Group
  • Reclamation costs, 1994–2009
  • Current Reclamation Projects in the Czech Coal Group
  • Energy Crop Growing in the Reclaimed Area
• 2.9 Human Resources
  • 2.9.1 Shared Principles of Labour Safety in the Czech Coal Group
    • Safety at Work
    • Employee Benefits
  • 2.9.2 Human Resources Management
    • Principles of Employment Management
    • Cooperation with Schools – Student Training and Projects
    • Respect to Human Rights and Measures against Unethical Conduct
    • Equal Remuneration for Men and Women
    • Restructuring, Operating Changes and their Impacts on Employees
    • Employee Education and Psychological Services
    • Employees in Pre-retirement Age and the Issues of Outplacement
  • 2.9.3 Employee Participation in Company Management
    • The Importance of Collective Agreements
    • The Structure and Activities of the Trade Union Organisation
    • Collective Bargaining in 2009
• 2.10 Regional Cooperation
  • 2.10.1 Principles of Regional Policy in the Czech Coal Group
    • Provision of Information
  • 2.10.2 Direct Support to Regional Development by Czech Coal Group Companies
    • Direct Support to Welfare Projects
    • Support to Regional Development in the Ústí nad Labem Region
    • Czech Coal Group’s Regional Policy Programme in 2009
    • Partnerships with Municipalities
    • The Spolužití (Coexistence) Programme
    • Year-round Sponsoring
    • Selected Results of the Regional Policy Programme
    • Excursions and the Coal Safari
    • Clever Minds for the North – a New Programme for 2010
    • Support to Nation-wide Social and Educational Projects
  • 2.10.3 Reporting of Benefits and Impacts on the Local Communities, 2009
  • 2.10.4 Project to Unlock Brown Coal Reserves for Future Generations
    • Direct Negotiations with Property Owners and Other Citizens of Horní Jiřetín and Černice
    • Offer of Settlement for the Citizens of Horní Jiřetín in the Case of Resettlement

3. ANNEXES

• 3.1 List of the Czech Coal Group Companies Referred to in this Report
• 3.2 GRI Tables
• 3.3 Verification – GRI Version 3.0, 2006
• 3.4 Pictures
• 3.5 Report Evaluation – Survey