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Friday, 18 January 13
NEWLEAD HOLDINGS LTD. TO ACQUIRE TWO COAL PROPERTIES WITH ESTIMATED COAL RESERVES OF 18.6 MMT & 143.1 MMT
 NewLead Holdings Ltd. Announces Signing Agreement to Acquire Properties with Estimated Coal Reserves of 18.6 Million Tons; Signing Agreement to Acquire Properties with Estimated Coal Reserves of 143.1 Million Tons and Securing 3-year Coal Supply Contracts Expected to Generate $873.5 million of Revenue
NewLead Holdings Ltd., is an international, vertically integrated shipping and commodity company that manages product tankers and dry bulk vessels, yesterday announced that the Company has entered into an agreement to acquire title and excavation rights in properties containing 18.6 million tons of estimated coal reserves for $11.0 million.
According to a press release posted on Company’s website, NewLead also entered into an agreement to acquire ownership and leasehold interests in properties containing approximately 143.1 million tons of coal for $55.0 million. Michael Zolotas, President and Chief Executive Officer of NewLead, stated, "We have expanded our recently launched commodities business with the agreement to acquire an estimated 18.6 million tons of coal reserves. We are in the process of acquiring additional coal properties with reserves estimated at approximately 143.1 million tons. Once we have acquired all of the assets, our coal reserves will consist primarily of sub bituminous B coal, which is 13,500 BTU with low sulfur. We will also have 'Blue Gem' and 'Rich Mountain' seams of coal, highly sought after in the international market. We believe that our international shipping expertise will allow us to exploit the demand for these coal reserves."
Michael Zolotas continued, "In entering the mining business, we undertook to secure supply contracts for the coal reserves. Consequently, we entered into two agreements to supply coal to third parties. These agreements are expected to generate $873.5 million of revenue over a three-year period. Based on our projections of operating costs, we believe that these sales will have healthy margins and will generate significant cash flow with which to fund continued growth. We intend to supplement the supply agreements by allowing contract miners to mine and pay us a royalty for coal removed."
Coal and Natural Gas Reserve Acquisitions
As of December 28, 2012, NewLead entered into an agreement to acquire title and mineral excavation rights to 5,000 acres of land in Kentucky. The coal reserves in these properties are estimated to be approximately 18.6 million tons. The transaction is subject to execution and delivery of certain definitive agreements and other closing conditions, but is currently expected to close by January 29, 2013. There can be no assurance that the transaction will be consummated. The consideration of $11.0 million was paid in the form of notes maturing on January 29, 2013. The notes do not accrue interest, but remain subject to a guaranty by the initial purchaser and are secured by a mortgage lien and a security interest in the assets being purchased.
NewLead has also entered into an agreement to acquire ownership and leasehold interests in 18,335 acres in Tennessee containing coal and natural gas and other natural resources. The agreement contemplates that the Company will acquire rights, title, permits and leases to coal mines with total reserves estimated at 143.1 million tons. The transaction is subject to execution and delivery of certain definitive agreements and other closing conditions, but is currently expected to close in February 2013. There can be no assurance that the transaction will be consummated. The agreement contemplates that consideration of $55.0 million shall be payable in cash in two installments; $30.0 million at closing and the remaining $25.0 million on the first anniversary of the closing.
The estimated reserves stated above are as determined by independent appraisals. The methodology used by the independent appraisers was not compliant with the methodology required by the Securities and Exchange Commission ("SEC") in reserve reports and, accordingly, should not be relied upon. Such reserve information is only provided to give the best currently available information. NewLead is undertaking to obtain reserve reports that comply with SEC methodology. Such reports may differ materially from the information provided herein.
The properties in Tennessee and Kentucky also include natural gas wells and projects relating to extraction of timber, sand, gravel, fly ash and dimension stone. Third parties are currently extracting these commodities on the properties and paying royalties.
Coal Supply Contracts
NewLead signed two coal supply contracts with creditworthy counterparties for the sale of coal to such parties. Annual revenue from these two contracts is expected to be $184.7 million in the first year, $318.4 million in the second year and $370.4 million for the third and final year.
The first contract provides for the sale of 70,000 tons of coal per month for the first 12 months (840,000 tons annually), increasing to 140,000 tons per month for the second year (1.68 million tons annually) and 210,000 tons per month for the third year (2.52 million tons annually). All tonnage is subject to a variation of 5%. The price was established based on the prevailing market price for coal at the time the contract was entered into.
The second contract provides for the sale of 130,000 metric tons per month for the first 12 months (1.56 million metric tons annually), increasing to 210,000 metric tons per month for the second and third years (2.52 million metric tons annually). All tonnage is subject to a variation of 5%. The price was established based on the prevailing market price for coal at the time the contract was entered into.
NewLead intends to source the coal to meet such contracts from the estimated reserves discussed above, but to the extent it is unable to do so, it will be required to seek to source the coal from other suppliers at the prevailing prices.
Management Company
NewLead also entered into an agreement to acquire a local coal mining management company in exchange for compensation, paid in the form $3.0 million in common shares of NewLead and a warrant for $6.4 million in common shares of NewLead. Such acquisition is subject to a number of terms and conditions and there is no assurance it will be consummated. The management company shall be responsible for managing the daily operations of the coal mines and the excavation of the coal from the properties.
For more details please visit www.newleadholdings.com.
Source: NewLead Holdings
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Monday, 20 July 20
COAL INDIA LAUNCHES SPECIAL CATEGORY OF E-AUCTION FOR COAL IMPORTERS - BUSINESS STANDARD
Coal India (CIL) on Friday launched a special category of e-auction for importers of coal. This is in line with the government’s declaration ...
Monday, 20 July 20
OIL PRICE OF $40-43 PER BARREL MORE OR LESS BALANCED - NOVAK | TASS
The Russian Ministry of Energy considers the current oil price of $40-43 per barrel more or less balanced and does not expect price changes after t ...
Monday, 20 July 20
SUPRAMAX: A 63,000 OPEN NORTH CHINA FIXING AN AUSTRALIAN ROUND IN THE LOW $10,000S - BALTIC BRIEFING
Capesize
The capesize market showed some resistance this week to recent losses as all routes saw a small uptick in value to end the week. With ...
Friday, 17 July 20
MISC MALAYSIA ENTERS INTO PURCHASE AGREEMENTS AND TIME CHARTER PARTIES FOR SIX VLECS
MISC Berhad (MISC) has entered into Memorandum of Agreements (MOAs) with six indirect wholly-owned subsidiaries of Zhejiang Satellite Petrochem ...
Wednesday, 15 July 20
HOW MEANINGFUL ARE SOME ESTIMATES FOR INDIA’S COAL CONSUMPTION DATA? - IEEFA
In recent years, BP's estimates for India have contained what appears to be a record of over-optimistic projections
BP’s a ...
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- Timah Investasi Mineral - Indoneisa
- Star Paper Mills Limited - India
- Grasim Industreis Ltd - India
- Agrawal Coal Company - India
- Holcim Trading Pte Ltd - Singapore
- LBH Netherlands Bv - Netherlands
- Rio Tinto Coal - Australia
- TeaM Sual Corporation - Philippines
- Chettinad Cement Corporation Ltd - India
- Indonesian Coal Mining Association
- Dalmia Cement Bharat India
- Karbindo Abesyapradhi - Indoneisa
- Sindya Power Generating Company Private Ltd
- Therma Luzon, Inc, Philippines
- Indo Tambangraya Megah - Indonesia
- Mjunction Services Limited - India
- Minerals Council of Australia
- Vedanta Resources Plc - India
- London Commodity Brokers - England
- Tata Chemicals Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Electricity Generating Authority of Thailand
- Bangladesh Power Developement Board
- Eastern Coal Council - USA
- CIMB Investment Bank - Malaysia
- The State Trading Corporation of India Ltd
- Ministry of Finance - Indonesia
- Globalindo Alam Lestari - Indonesia
- ICICI Bank Limited - India
- Ambuja Cements Ltd - India
- Parliament of New Zealand
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- Commonwealth Bank - Australia
- Lanco Infratech Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Standard Chartered Bank - UAE
- Kohat Cement Company Ltd. - Pakistan
- Maheswari Brothers Coal Limited - India
- Manunggal Multi Energi - Indonesia
- Aditya Birla Group - India
- Australian Commodity Traders Exchange
- IEA Clean Coal Centre - UK
- Carbofer General Trading SA - India
- Energy Development Corp, Philippines
- The University of Queensland
- SN Aboitiz Power Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Binh Thuan Hamico - Vietnam
- Coastal Gujarat Power Limited - India
- Leighton Contractors Pty Ltd - Australia
- South Luzon Thermal Energy Corporation
- Coalindo Energy - Indonesia
- SMC Global Power, Philippines
- Alfred C Toepfer International GmbH - Germany
- The Treasury - Australian Government
- Thai Mozambique Logistica
- Coal and Oil Company - UAE
- Marubeni Corporation - India
- Central Electricity Authority - India
- Ministry of Mines - Canada
- Latin American Coal - Colombia
- Aboitiz Power Corporation - Philippines
- Chamber of Mines of South Africa
- Bukit Asam (Persero) Tbk - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- IHS Mccloskey Coal Group - USA
- Larsen & Toubro Limited - India
- Mercuria Energy - Indonesia
- Tamil Nadu electricity Board
- Africa Commodities Group - South Africa
- Heidelberg Cement - Germany
- Sarangani Energy Corporation, Philippines
- Planning Commission, India
- Meenaskhi Energy Private Limited - India
- Gujarat Sidhee Cement - India
- Jorong Barutama Greston.PT - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kapuas Tunggal Persada - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Siam City Cement - Thailand
- Interocean Group of Companies - India
- Metalloyd Limited - United Kingdom
- Riau Bara Harum - Indonesia
- Iligan Light & Power Inc, Philippines
- Borneo Indobara - Indonesia
- Kepco SPC Power Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Simpson Spence & Young - Indonesia
- Karaikal Port Pvt Ltd - India
- Edison Trading Spa - Italy
- Directorate Of Revenue Intelligence - India
- Antam Resourcindo - Indonesia
- Thiess Contractors Indonesia
- Deloitte Consulting - India
- Global Business Power Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Samtan Co., Ltd - South Korea
- Ind-Barath Power Infra Limited - India
- Straits Asia Resources Limited - Singapore
- GMR Energy Limited - India
- Semirara Mining and Power Corporation, Philippines
- McConnell Dowell - Australia
- Altura Mining Limited, Indonesia
- Bukit Makmur.PT - Indonesia
- Indian Energy Exchange, India
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- Pendopo Energi Batubara - Indonesia
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- Parry Sugars Refinery, India
- Uttam Galva Steels Limited - India
- Bhoruka Overseas - Indonesia
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- Siam City Cement PLC, Thailand
- Romanian Commodities Exchange
- Kobexindo Tractors - Indoneisa
- Formosa Plastics Group - Taiwan
- Sojitz Corporation - Japan
- Directorate General of MIneral and Coal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- PTC India Limited - India
- Central Java Power - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- CNBM International Corporation - China
- Sree Jayajothi Cements Limited - India
- International Coal Ventures Pvt Ltd - India
- Petron Corporation, Philippines
- Meralco Power Generation, Philippines
- Bharathi Cement Corporation - India
- Renaissance Capital - South Africa
- Ministry of Transport, Egypt
- Global Coal Blending Company Limited - Australia
- Trasteel International SA, Italy
- New Zealand Coal & Carbon
- Independent Power Producers Association of India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Port Waratah Coal Services - Australia
- Georgia Ports Authority, United States
- Economic Council, Georgia
- VISA Power Limited - India
- Bhatia International Limited - India
- Sical Logistics Limited - India
- India Bulls Power Limited - India
- Orica Australia Pty. Ltd.
- Oldendorff Carriers - Singapore
- Mintek Dendrill Indonesia
- Merrill Lynch Commodities Europe
- ASAPP Information Group - India
- Electricity Authority, New Zealand
- Bukit Baiduri Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Posco Energy - South Korea
- European Bulk Services B.V. - Netherlands
- Miang Besar Coal Terminal - Indonesia
- Singapore Mercantile Exchange
- MS Steel International - UAE
- Malabar Cements Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Semirara Mining Corp, Philippines
- Intertek Mineral Services - Indonesia
- Energy Link Ltd, New Zealand
- Medco Energi Mining Internasional
- Global Green Power PLC Corporation, Philippines
- Vizag Seaport Private Limited - India
- PowerSource Philippines DevCo
- Krishnapatnam Port Company Ltd. - India
- Essar Steel Hazira Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Billiton Holdings Pty Ltd - Australia
- Kumho Petrochemical, South Korea
- GAC Shipping (India) Pvt Ltd
- Banpu Public Company Limited - Thailand
- Kaltim Prima Coal - Indonesia
- White Energy Company Limited
- Indika Energy - Indonesia
- Bhushan Steel Limited - India
- Baramulti Group, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Cigading International Bulk Terminal - Indonesia
- Jaiprakash Power Ventures ltd
- Indogreen Group - Indonesia
- PNOC Exploration Corporation - Philippines
- Makarim & Taira - Indonesia
- Savvy Resources Ltd - HongKong
- Madhucon Powers Ltd - India
- Barasentosa Lestari - Indonesia
- Wood Mackenzie - Singapore
- Asmin Koalindo Tuhup - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Bulk Trading Sa - Switzerland
- San Jose City I Power Corp, Philippines
- Bayan Resources Tbk. - Indonesia
- Australian Coal Association
- Xindia Steels Limited - India
- Power Finance Corporation Ltd., India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kalimantan Lumbung Energi - Indonesia
- Orica Mining Services - Indonesia
- Jindal Steel & Power Ltd - India
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- Mercator Lines Limited - India
- Price Waterhouse Coopers - Russia
- Eastern Energy - Thailand
- Kartika Selabumi Mining - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Attock Cement Pakistan Limited
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- SMG Consultants - Indonesia
- Indian Oil Corporation Limited
- Sakthi Sugars Limited - India
- Anglo American - United Kingdom
- Wilmar Investment Holdings
- Goldman Sachs - Singapore
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