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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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Wednesday, 15 July 20
CHINA'S JUNE COAL IMPORTS FALL 6.7% Y/Y ON PORT CURBS - REUTERS
China’s coal imports dropped 6.7% in June from the same period last year, as stringent import restrictions at ports impeded purchases by trad ...
Wednesday, 15 July 20
MARKET INSIGHT - INTERMODAL
The Covid-19 virus spread around the world has obviously impacted the global oil demand while the situation remains fluid. The overall constraint ...
Tuesday, 14 July 20
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX UP 0.75 PCT - XINHUA
China Taiyuan coal transaction price index stood at 126.01 points Monday, up 0.75 percent week on week.
The index, released by China ...
Tuesday, 14 July 20
TURKEY - A CASE OF UNDECLARED BUNKER - GARD
KNOWLEDGE TO ELEVATE
Undeclared/excess bunkers can be considered a criminal act by Turkish customs officials with the ship's crew being ac ...
Monday, 13 July 20
PANAMAX: A TUMULTUOUS WEEK IN THE PANAMAX MARKET ENSURED ALL MARKETS GAINED VALUE ON THE WEEK - BALTIC BRIEFING
Capesize
This week witnessed the dreaded correction in the Capesize market, with the time charter average shedding almost 18 per cent to close ...
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- Semirara Mining and Power Corporation, Philippines
- Indika Energy - Indonesia
- Binh Thuan Hamico - Vietnam
- Directorate Of Revenue Intelligence - India
- Sical Logistics Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Energy Development Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- IHS Mccloskey Coal Group - USA
- AsiaOL BioFuels Corp., Philippines
- Thiess Contractors Indonesia
- Australian Commodity Traders Exchange
- Energy Link Ltd, New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Singapore Mercantile Exchange
- ASAPP Information Group - India
- GVK Power & Infra Limited - India
- Eastern Energy - Thailand
- Asmin Koalindo Tuhup - Indonesia
- Kepco SPC Power Corporation, Philippines
- Antam Resourcindo - Indonesia
- Aditya Birla Group - India
- Global Green Power PLC Corporation, Philippines
- Dalmia Cement Bharat India
- OPG Power Generation Pvt Ltd - India
- Ministry of Mines - Canada
- New Zealand Coal & Carbon
- Indo Tambangraya Megah - Indonesia
- ICICI Bank Limited - India
- Star Paper Mills Limited - India
- Ind-Barath Power Infra Limited - India
- Globalindo Alam Lestari - Indonesia
- Parry Sugars Refinery, India
- Kohat Cement Company Ltd. - Pakistan
- Krishnapatnam Port Company Ltd. - India
- Kartika Selabumi Mining - Indonesia
- PowerSource Philippines DevCo
- South Luzon Thermal Energy Corporation
- Latin American Coal - Colombia
- GAC Shipping (India) Pvt Ltd
- Electricity Generating Authority of Thailand
- Formosa Plastics Group - Taiwan
- Maharashtra Electricity Regulatory Commission - India
- Chettinad Cement Corporation Ltd - India
- Sarangani Energy Corporation, Philippines
- Bhushan Steel Limited - India
- Makarim & Taira - Indonesia
- Iligan Light & Power Inc, Philippines
- VISA Power Limited - India
- Grasim Industreis Ltd - India
- CIMB Investment Bank - Malaysia
- Meralco Power Generation, Philippines
- Sakthi Sugars Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Trasteel International SA, Italy
- TeaM Sual Corporation - Philippines
- Ministry of Transport, Egypt
- Savvy Resources Ltd - HongKong
- Heidelberg Cement - Germany
- Marubeni Corporation - India
- Edison Trading Spa - Italy
- Sree Jayajothi Cements Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- European Bulk Services B.V. - Netherlands
- Bulk Trading Sa - Switzerland
- Siam City Cement PLC, Thailand
- Deloitte Consulting - India
- Electricity Authority, New Zealand
- Xindia Steels Limited - India
- Indonesian Coal Mining Association
- Neyveli Lignite Corporation Ltd, - India
- Merrill Lynch Commodities Europe
- Interocean Group of Companies - India
- Banpu Public Company Limited - Thailand
- Ministry of Finance - Indonesia
- Karaikal Port Pvt Ltd - India
- The University of Queensland
- SN Aboitiz Power Inc, Philippines
- Riau Bara Harum - Indonesia
- Coal and Oil Company - UAE
- Power Finance Corporation Ltd., India
- McConnell Dowell - Australia
- Central Electricity Authority - India
- Straits Asia Resources Limited - Singapore
- Intertek Mineral Services - Indonesia
- Holcim Trading Pte Ltd - Singapore
- IEA Clean Coal Centre - UK
- Baramulti Group, Indonesia
- Vedanta Resources Plc - India
- Toyota Tsusho Corporation, Japan
- Renaissance Capital - South Africa
- Goldman Sachs - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- PNOC Exploration Corporation - Philippines
- Kaltim Prima Coal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Bukit Makmur.PT - Indonesia
- Indian Oil Corporation Limited
- Maheswari Brothers Coal Limited - India
- Mjunction Services Limited - India
- Directorate General of MIneral and Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Meenaskhi Energy Private Limited - India
- Ambuja Cements Ltd - India
- Lanco Infratech Ltd - India
- GMR Energy Limited - India
- Videocon Industries ltd - India
- Siam City Cement - Thailand
- MS Steel International - UAE
- PTC India Limited - India
- Gujarat Electricity Regulatory Commission - India
- Planning Commission, India
- Rashtriya Ispat Nigam Limited - India
- Borneo Indobara - Indonesia
- Jaiprakash Power Ventures ltd
- Samtan Co., Ltd - South Korea
- Uttam Galva Steels Limited - India
- Indian Energy Exchange, India
- Vijayanagar Sugar Pvt Ltd - India
- London Commodity Brokers - England
- Bhoruka Overseas - Indonesia
- Africa Commodities Group - South Africa
- Port Waratah Coal Services - Australia
- Miang Besar Coal Terminal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- Oldendorff Carriers - Singapore
- Bukit Baiduri Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Leighton Contractors Pty Ltd - Australia
- Posco Energy - South Korea
- SMC Global Power, Philippines
- Bayan Resources Tbk. - Indonesia
- Agrawal Coal Company - India
- India Bulls Power Limited - India
- Price Waterhouse Coopers - Russia
- Commonwealth Bank - Australia
- Independent Power Producers Association of India
- Bangladesh Power Developement Board
- Global Coal Blending Company Limited - Australia
- Cement Manufacturers Association - India
- Medco Energi Mining Internasional
- Rio Tinto Coal - Australia
- Eastern Coal Council - USA
- Bahari Cakrawala Sebuku - Indonesia
- Parliament of New Zealand
- Mercuria Energy - Indonesia
- San Jose City I Power Corp, Philippines
- Alfred C Toepfer International GmbH - Germany
- Vizag Seaport Private Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Tata Chemicals Ltd - India
- Kobexindo Tractors - Indoneisa
- Barasentosa Lestari - Indonesia
- Orica Mining Services - Indonesia
- Mercator Lines Limited - India
- Kumho Petrochemical, South Korea
- Metalloyd Limited - United Kingdom
- Kalimantan Lumbung Energi - Indonesia
- The State Trading Corporation of India Ltd
- Standard Chartered Bank - UAE
- Orica Australia Pty. Ltd.
- Thai Mozambique Logistica
- Malabar Cements Ltd - India
- The Treasury - Australian Government
- Economic Council, Georgia
- White Energy Company Limited
- Central Java Power - Indonesia
- Jindal Steel & Power Ltd - India
- Coalindo Energy - Indonesia
- Chamber of Mines of South Africa
- LBH Netherlands Bv - Netherlands
- Madhucon Powers Ltd - India
- Larsen & Toubro Limited - India
- Attock Cement Pakistan Limited
- Wilmar Investment Holdings
- CNBM International Corporation - China
- Therma Luzon, Inc, Philippines
- Anglo American - United Kingdom
- Mintek Dendrill Indonesia
- Essar Steel Hazira Ltd - India
- Indogreen Group - Indonesia
- Bhatia International Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Kideco Jaya Agung - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Minerals Council of Australia
- Carbofer General Trading SA - India
- Manunggal Multi Energi - Indonesia
- Sojitz Corporation - Japan
- Wood Mackenzie - Singapore
- Salva Resources Pvt Ltd - India
- Timah Investasi Mineral - Indoneisa
- Aboitiz Power Corporation - Philippines
- Romanian Commodities Exchange
- Gujarat Mineral Development Corp Ltd - India
- SMG Consultants - Indonesia
- Coastal Gujarat Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- Sindya Power Generating Company Private Ltd
- Georgia Ports Authority, United States
- Gujarat Sidhee Cement - India
- Altura Mining Limited, Indonesia
- Semirara Mining Corp, Philippines
- Bharathi Cement Corporation - India
- Petron Corporation, Philippines
- Australian Coal Association
- Tamil Nadu electricity Board
- Sinarmas Energy and Mining - Indonesia
- Global Business Power Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Cigading International Bulk Terminal - Indonesia
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