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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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Tuesday, 05 May 20
SUPRAMAXES: YTD SLIDE HAS BEEN 45%, WITH THE AVERAGE FOR 2020 TCA HOLDING AT US$5,793 - ALLIED
It has been almost three months since the WHO officially categorized the current coronavirus outbreak as a global pandemic, an outbreak that has br ...
Monday, 04 May 20
U.S. ESTIMATED COAL PRODUCTION FALL 39.4% YEAR ON YEAR IN THE WEEK ENDED APRIL 25 - EIA
Estimated U.S. coal production totaled about 8.6 million short tons (MMst) For the week ended April 25, 2020, says EIA in its latest report.
E ...
Saturday, 02 May 20
SUPRAMAX: ASIA, STRONGER NUMBERS - A 55.000-DWT WAS FIXED FROM INDONESIA TO CHINA IN THE MID $6,000S - BALTIC BRIEFING
Capesize
A tepid week for the big ships, as macro concerns continued to weigh heavily on the index. All of the major voyage routes lost value, ...
Friday, 01 May 20
KOSPO INVITED OFFER FOR 5600 NCV COAL FOR Q3 2020 LOADING
COALspot.com: Korea Southern Power Co., Ltd. (KOSPO) has issued an International tender for 260,000 Metric Tons (MT) steam coal for Boryeong Power ...
Friday, 01 May 20
GLOBAL COAL DEMAND TO FALL BY ABOUT 8% IN 2020,THE LARGEST DROP SINCE WORLD WAR II - IEA
We expect global coal demand to fall by about 8% in 2020, the largest drop since World War II, with coal use declining in virtually every sector of ...
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- Thiess Contractors Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Carbofer General Trading SA - India
- PTC India Limited - India
- Makarim & Taira - Indonesia
- Latin American Coal - Colombia
- Petron Corporation, Philippines
- Gujarat Sidhee Cement - India
- Parry Sugars Refinery, India
- Indian Oil Corporation Limited
- Aboitiz Power Corporation - Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Mjunction Services Limited - India
- Oldendorff Carriers - Singapore
- Siam City Cement PLC, Thailand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Eastern Coal Council - USA
- Semirara Mining Corp, Philippines
- Chettinad Cement Corporation Ltd - India
- Banpu Public Company Limited - Thailand
- Holcim Trading Pte Ltd - Singapore
- Goldman Sachs - Singapore
- Tamil Nadu electricity Board
- Ceylon Electricity Board - Sri Lanka
- Aditya Birla Group - India
- Directorate Of Revenue Intelligence - India
- Africa Commodities Group - South Africa
- Neyveli Lignite Corporation Ltd, - India
- TeaM Sual Corporation - Philippines
- Minerals Council of Australia
- Thai Mozambique Logistica
- Independent Power Producers Association of India
- European Bulk Services B.V. - Netherlands
- Baramulti Group, Indonesia
- Georgia Ports Authority, United States
- Intertek Mineral Services - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Energy Link Ltd, New Zealand
- Romanian Commodities Exchange
- Energy Development Corp, Philippines
- Kideco Jaya Agung - Indonesia
- Indian Energy Exchange, India
- ICICI Bank Limited - India
- Wilmar Investment Holdings
- Wood Mackenzie - Singapore
- IEA Clean Coal Centre - UK
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Siam City Cement - Thailand
- New Zealand Coal & Carbon
- Parliament of New Zealand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sojitz Corporation - Japan
- Agrawal Coal Company - India
- GMR Energy Limited - India
- India Bulls Power Limited - India
- Global Business Power Corporation, Philippines
- London Commodity Brokers - England
- Sical Logistics Limited - India
- Interocean Group of Companies - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Singapore Mercantile Exchange
- Sinarmas Energy and Mining - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bhatia International Limited - India
- CIMB Investment Bank - Malaysia
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- Pendopo Energi Batubara - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Chamber of Mines of South Africa
- Deloitte Consulting - India
- Bayan Resources Tbk. - Indonesia
- Toyota Tsusho Corporation, Japan
- Vedanta Resources Plc - India
- Merrill Lynch Commodities Europe
- ASAPP Information Group - India
- Bhoruka Overseas - Indonesia
- GAC Shipping (India) Pvt Ltd
- Xindia Steels Limited - India
- Bharathi Cement Corporation - India
- Sakthi Sugars Limited - India
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- Pipit Mutiara Jaya. PT, Indonesia
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- White Energy Company Limited
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- Krishnapatnam Port Company Ltd. - India
- Miang Besar Coal Terminal - Indonesia
- Indonesian Coal Mining Association
- Bangladesh Power Developement Board
- Trasteel International SA, Italy
- Maharashtra Electricity Regulatory Commission - India
- Ministry of Finance - Indonesia
- Bukit Baiduri Energy - Indonesia
- Australian Commodity Traders Exchange
- MS Steel International - UAE
- Bulk Trading Sa - Switzerland
- Alfred C Toepfer International GmbH - Germany
- Coalindo Energy - Indonesia
- Edison Trading Spa - Italy
- Petrochimia International Co. Ltd.- Taiwan
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- Posco Energy - South Korea
- Cigading International Bulk Terminal - Indonesia
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- SN Aboitiz Power Inc, Philippines
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- Kartika Selabumi Mining - Indonesia
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- Meenaskhi Energy Private Limited - India
- Renaissance Capital - South Africa
- OPG Power Generation Pvt Ltd - India
- Ministry of Transport, Egypt
- Dalmia Cement Bharat India
- Straits Asia Resources Limited - Singapore
- Grasim Industreis Ltd - India
- Heidelberg Cement - Germany
- Global Green Power PLC Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Essar Steel Hazira Ltd - India
- Orica Australia Pty. Ltd.
- McConnell Dowell - Australia
- Salva Resources Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Kohat Cement Company Ltd. - Pakistan
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- South Luzon Thermal Energy Corporation
- Jaiprakash Power Ventures ltd
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- Mintek Dendrill Indonesia
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- Simpson Spence & Young - Indonesia
- Price Waterhouse Coopers - Russia
- VISA Power Limited - India
- Savvy Resources Ltd - HongKong
- Indogreen Group - Indonesia
- Electricity Generating Authority of Thailand
- Cement Manufacturers Association - India
- PNOC Exploration Corporation - Philippines
- PowerSource Philippines DevCo
- Antam Resourcindo - Indonesia
- The State Trading Corporation of India Ltd
- TNB Fuel Sdn Bhd - Malaysia
- Commonwealth Bank - Australia
- Ministry of Mines - Canada
- Uttam Galva Steels Limited - India
- Kumho Petrochemical, South Korea
- Kaltim Prima Coal - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Malabar Cements Ltd - India
- Billiton Holdings Pty Ltd - Australia
- The Treasury - Australian Government
- Medco Energi Mining Internasional
- Formosa Plastics Group - Taiwan
- Port Waratah Coal Services - Australia
- Central Electricity Authority - India
- Madhucon Powers Ltd - India
- Australian Coal Association
- PetroVietnam Power Coal Import and Supply Company
- Bank of Tokyo Mitsubishi UFJ Ltd
- Rashtriya Ispat Nigam Limited - India
- Electricity Authority, New Zealand
- Asmin Koalindo Tuhup - Indonesia
- Planning Commission, India
- LBH Netherlands Bv - Netherlands
- Samtan Co., Ltd - South Korea
- Maheswari Brothers Coal Limited - India
- Global Coal Blending Company Limited - Australia
- IHS Mccloskey Coal Group - USA
- Anglo American - United Kingdom
- Sarangani Energy Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Central Java Power - Indonesia
- Marubeni Corporation - India
- Power Finance Corporation Ltd., India
- Lanco Infratech Ltd - India
- Economic Council, Georgia
- Bhushan Steel Limited - India
- Kobexindo Tractors - Indoneisa
- Larsen & Toubro Limited - India
- Meralco Power Generation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Ambuja Cements Ltd - India
- Star Paper Mills Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Tata Chemicals Ltd - India
- Jindal Steel & Power Ltd - India
- Metalloyd Limited - United Kingdom
- The University of Queensland
- Bukit Makmur.PT - Indonesia
- Orica Mining Services - Indonesia
- Altura Mining Limited, Indonesia
- AsiaOL BioFuels Corp., Philippines
- Barasentosa Lestari - Indonesia
- Standard Chartered Bank - UAE
- Mercator Lines Limited - India
- Ind-Barath Power Infra Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
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- Eastern Energy - Thailand
- SMC Global Power, Philippines
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- Kapuas Tunggal Persada - Indonesia
- Attock Cement Pakistan Limited
- Coal and Oil Company - UAE
- International Coal Ventures Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- CNBM International Corporation - China
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