* Plans to sell coking coal on quarterly basis
* Q2 avg price up 35 pct for coking coal
* Sees demand buoying prices, keeps 2011 targets
* Shares fall with market, contracts priced in
(Adds CFO quotes, shares, UK incorporation)
By Jan Korselt and Jason Hovet
PRAGUE, April 11 (Reuters) - Strong coal demand will keep prices up this year, Czech coal miner New World Resources (NWR) said on Monday after agreeing a 35 percent quarter-on-quarter price rise in second-quarter coking coal deliveries.
Economic recovery in central Europe has boosted the region's automotive and construction sectors, leading to higher demand from NWR's steel sector clients.
The miner, owner of the largest Czech hard coal mines, said said it would begin selling all coking coal on a quarterly basis to align pricing with international markets.
"Our issue today is not the market, our issue is how quickly can we get coal out of the ground to supply the huge demand that we see," Chief Financial Officer Marek Jelinek said on a conference call.
"So I don't think there is any strong fundamental reason to expect any dramatic weakening in the coking coal prices in the third and subsequent quarters."
NWR shares rose in early trade before falling in the morning, losing 0.8 percent by 0908 GMT. The Prague index <
> also turned negative, losing 0.2 percent from Friday.Analysts said the second quarter price rises announced had mostly been priced in the market.
NWR said it agreed the average price for coking coal sales in the second quarter at 215 euros per tonne. The average price for coke sales in the second quarter rose 19 percent from the first quarter to 400 euros per tonne.
It sold 1,062 kilotonnes of coking coal in the first quarter at an average price of 159 euros per tonne and 180 kilotonnes of coke in the quarter at an average price of 337 euros per tonne.
NWR sold 1,575 kilotonnes of thermal coal, for which it has a yearly contract, in the first quarter at an average realised price of 70 euros per tonne.
The miner expects to sell 10.3 million tonnes of coal in 2011, split between coking and thermal coal, and 720 kilotonnes of coke. Production is planned at 11 million tonnes of coal.
"Production volumes and achieved selling volumes in the first quarter are relatively weak. Still, we see NWR's targets achievable given the expected gradual improvement during the year," Ceska Sporitelna analyst Petr Bartek said.
"Overall, the announced prices for second quarter point to very strong results in 2011, but should not be a surprise for the market."
Dutch-registered NWR is also closer to a planned reincorporation in the United Kingdom, which would allow access to FTSE UK indices. Jelinek said preparations should be ready before June revisions of the indices. [
]NWR plans a one-for-one share offer in connection with the reincorporation, giving existing shareholders one share in the new UK company for each existing share. (Writing by Jason Hovet; Editing by Louise Heavens and Jon Loades-Carter)