Czech government ready for talks with NWR over Paskov mine

PRAGUE, Oct (HKSE: 3366-OL.HK - news) 5 (Reuters) - The Czech government is ready to hold talks with New World Resources (LSE: NWR.L - news) (NWR) to keep its Paskov coal mine open after a fall in coal prices raised doubts over its future, Prime Minister Bohuslav Sobotka said on Monday.

The government agreed in 2014 to provide 600 million crowns ($24.83 million) to cover the social costs of closing Paskov if the Dutch-registered mining company kept the unprofitable operation open until the end of 2017, rather than closing it earlier.

The deal included a clause allowing for renegotiation if coking coal benchmark prices dropped below $110 a tonne for three straight quarters, which probably happened last quarter.

Sobotka said on Monday his centre-left cabinet had approved new talks to involve the finance, industry and labour ministers.

The state wants to avoid an early closure and the loss of up to 3,000 jobs. Without a valid deal in place, NWR is free to close the mine when it chooses.

NWR's mining unit OKD said in September it had written to the government asking for the current deal to get a six-month extension to give the sides time to reach a new agreement.

($1 = 24.1630 Czech crowns) (Reporting by Jason Hovet; editing by Adrian Croft)