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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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Friday, 01 May 20
GLOBAL COAL DEMAND TO FALL BY 8% IN Q1 2020 RELATIVE TO Q1 2019 - IEA
We expect global coal demand to fall by 8% in Q1 2020 relative to Q1 2019. This significant drop was driven by lower demand in the electricity sect ...
Friday, 01 May 20
LUKOIL SHARES LUBRICANT EXPERIENCE AFTER FIRST 100 DAYS OF OPERATION ON VLSFO
KNOWLEDGE TO ELEVATE
After 100 days of VLSFO operation, LUKOIL Marine Lubricants is sharing recent experience on VLSFO operation with NAVIGO M ...
Wednesday, 29 April 20
OIL CLOSES IN ON PEAK OVERSUPPLY - WOOD MACKENZIE
Are we now deep in the abyss? Up to our necks in it, if the oil price is any guide. Brent has now tested sub-US$20/bbl in this downturn and WTI sub ...
Monday, 27 April 20
INCIDENT INVESTIGATION: SEARCH FOR THE CAUSE, NOT THE VILLAIN - GARD
Incident investigations often conclude with placing the blame for an incident on the crew. Causes of the incidents are usually identified as proced ...
Monday, 27 April 20
A 58,000DWT VESSEL WAS FIXED DELIVERY SINGAPORE TRIP VIA INDONESIA, RE-DELIVERY WC INDIA, AT $4,500 - BALTIC BRIEFING
Capesize
The tide turned this week for the Capesize market, as voyage rates registered dramatically falling fuel costs. This was led primarily ...
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- Kideco Jaya Agung - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Global Coal Blending Company Limited - Australia
- Riau Bara Harum - Indonesia
- Baramulti Group, Indonesia
- Eastern Coal Council - USA
- Tamil Nadu electricity Board
- Directorate Of Revenue Intelligence - India
- Bhushan Steel Limited - India
- Semirara Mining and Power Corporation, Philippines
- GMR Energy Limited - India
- Edison Trading Spa - Italy
- Price Waterhouse Coopers - Russia
- Global Green Power PLC Corporation, Philippines
- Port Waratah Coal Services - Australia
- Kobexindo Tractors - Indoneisa
- IHS Mccloskey Coal Group - USA
- Ind-Barath Power Infra Limited - India
- Ministry of Finance - Indonesia
- Mintek Dendrill Indonesia
- Sakthi Sugars Limited - India
- PTC India Limited - India
- Grasim Industreis Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- CIMB Investment Bank - Malaysia
- Kaltim Prima Coal - Indonesia
- Heidelberg Cement - Germany
- Kumho Petrochemical, South Korea
- Iligan Light & Power Inc, Philippines
- VISA Power Limited - India
- AsiaOL BioFuels Corp., Philippines
- Bukit Makmur.PT - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Siam City Cement - Thailand
- Lanco Infratech Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Sindya Power Generating Company Private Ltd
- Formosa Plastics Group - Taiwan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- India Bulls Power Limited - India
- Central Java Power - Indonesia
- Georgia Ports Authority, United States
- Coal and Oil Company - UAE
- Renaissance Capital - South Africa
- Malabar Cements Ltd - India
- Global Business Power Corporation, Philippines
- The University of Queensland
- Vedanta Resources Plc - India
- Anglo American - United Kingdom
- Straits Asia Resources Limited - Singapore
- Agrawal Coal Company - India
- Sree Jayajothi Cements Limited - India
- Meralco Power Generation, Philippines
- Metalloyd Limited - United Kingdom
- Holcim Trading Pte Ltd - Singapore
- Intertek Mineral Services - Indonesia
- Power Finance Corporation Ltd., India
- Dalmia Cement Bharat India
- Therma Luzon, Inc, Philippines
- Ambuja Cements Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Central Electricity Authority - India
- Indonesian Coal Mining Association
- GAC Shipping (India) Pvt Ltd
- Australian Coal Association
- TNB Fuel Sdn Bhd - Malaysia
- IEA Clean Coal Centre - UK
- Medco Energi Mining Internasional
- PowerSource Philippines DevCo
- Asmin Koalindo Tuhup - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- London Commodity Brokers - England
- Makarim & Taira - Indonesia
- Minerals Council of Australia
- Directorate General of MIneral and Coal - Indonesia
- Commonwealth Bank - Australia
- Indo Tambangraya Megah - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Interocean Group of Companies - India
- Sarangani Energy Corporation, Philippines
- Barasentosa Lestari - Indonesia
- SN Aboitiz Power Inc, Philippines
- Banpu Public Company Limited - Thailand
- Bulk Trading Sa - Switzerland
- Economic Council, Georgia
- Indika Energy - Indonesia
- Indogreen Group - Indonesia
- Energy Link Ltd, New Zealand
- Parliament of New Zealand
- Carbofer General Trading SA - India
- Manunggal Multi Energi - Indonesia
- Vizag Seaport Private Limited - India
- Posco Energy - South Korea
- PNOC Exploration Corporation - Philippines
- Bangladesh Power Developement Board
- Eastern Energy - Thailand
- Toyota Tsusho Corporation, Japan
- Neyveli Lignite Corporation Ltd, - India
- Sojitz Corporation - Japan
- Cigading International Bulk Terminal - Indonesia
- Xindia Steels Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- ICICI Bank Limited - India
- Bukit Baiduri Energy - Indonesia
- Indian Oil Corporation Limited
- Star Paper Mills Limited - India
- Gujarat Sidhee Cement - India
- Antam Resourcindo - Indonesia
- European Bulk Services B.V. - Netherlands
- Bharathi Cement Corporation - India
- Madhucon Powers Ltd - India
- MS Steel International - UAE
- Karbindo Abesyapradhi - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- CNBM International Corporation - China
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Gujarat Electricity Regulatory Commission - India
- Billiton Holdings Pty Ltd - Australia
- Rio Tinto Coal - Australia
- South Luzon Thermal Energy Corporation
- Coastal Gujarat Power Limited - India
- LBH Netherlands Bv - Netherlands
- Africa Commodities Group - South Africa
- Karaikal Port Pvt Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Kalimantan Lumbung Energi - Indonesia
- White Energy Company Limited
- Merrill Lynch Commodities Europe
- Larsen & Toubro Limited - India
- Rashtriya Ispat Nigam Limited - India
- Sinarmas Energy and Mining - Indonesia
- Parry Sugars Refinery, India
- The Treasury - Australian Government
- Marubeni Corporation - India
- The State Trading Corporation of India Ltd
- Maharashtra Electricity Regulatory Commission - India
- Electricity Generating Authority of Thailand
- Kepco SPC Power Corporation, Philippines
- Energy Development Corp, Philippines
- Mercuria Energy - Indonesia
- Wilmar Investment Holdings
- Borneo Indobara - Indonesia
- Bayan Resources Tbk. - Indonesia
- Bhatia International Limited - India
- Essar Steel Hazira Ltd - India
- Thai Mozambique Logistica
- Aboitiz Power Corporation - Philippines
- Salva Resources Pvt Ltd - India
- Deloitte Consulting - India
- Semirara Mining Corp, Philippines
- Wood Mackenzie - Singapore
- New Zealand Coal & Carbon
- Altura Mining Limited, Indonesia
- Chettinad Cement Corporation Ltd - India
- TeaM Sual Corporation - Philippines
- Uttam Galva Steels Limited - India
- Videocon Industries ltd - India
- Jaiprakash Power Ventures ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Mineral Development Corp Ltd - India
- Chamber of Mines of South Africa
- Standard Chartered Bank - UAE
- Siam City Cement PLC, Thailand
- Planning Commission, India
- Kapuas Tunggal Persada - Indonesia
- Maheswari Brothers Coal Limited - India
- Australian Commodity Traders Exchange
- Krishnapatnam Port Company Ltd. - India
- Trasteel International SA, Italy
- Coalindo Energy - Indonesia
- GVK Power & Infra Limited - India
- Singapore Mercantile Exchange
- Bhoruka Overseas - Indonesia
- SMG Consultants - Indonesia
- Savvy Resources Ltd - HongKong
- Timah Investasi Mineral - Indoneisa
- International Coal Ventures Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Orica Mining Services - Indonesia
- Ministry of Mines - Canada
- Pendopo Energi Batubara - Indonesia
- Tata Chemicals Ltd - India
- San Jose City I Power Corp, Philippines
- Sical Logistics Limited - India
- Latin American Coal - Colombia
- Indian Energy Exchange, India
- SMC Global Power, Philippines
- ASAPP Information Group - India
- Cement Manufacturers Association - India
- Simpson Spence & Young - Indonesia
- Oldendorff Carriers - Singapore
- Aditya Birla Group - India
- GN Power Mariveles Coal Plant, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Goldman Sachs - Singapore
- Electricity Authority, New Zealand
- Mercator Lines Limited - India
- OPG Power Generation Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Independent Power Producers Association of India
- Binh Thuan Hamico - Vietnam
- Thiess Contractors Indonesia
- Jindal Steel & Power Ltd - India
- Attock Cement Pakistan Limited
- Orica Australia Pty. Ltd.
- Ministry of Transport, Egypt
- Miang Besar Coal Terminal - Indonesia
- Petron Corporation, Philippines
- Mjunction Services Limited - India
- Samtan Co., Ltd - South Korea
- Romanian Commodities Exchange
- Offshore Bulk Terminal Pte Ltd, Singapore
- Leighton Contractors Pty Ltd - Australia
- McConnell Dowell - Australia
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