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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, 12 February 20
COAL INDIA WILL EXCEED LAST YEAR'S PRODUCTION FIGURES: OFFICIAL - PTI
Despite coal production being hampered at Dipka mines due to prolonged rains, Coal India Ltd will exceed last year’s production figures, a to ...
Wednesday, 12 February 20
MARKET INSIGHT - INTERMODAL
The recent Coronavirus outbreak in China has led to a global health emergency by World Health Organization and it is yet to be seen how long the ph ...
Wednesday, 12 February 20
CHANGES IN LNG MARKET COULD UNDERCUT PLANS FOR NEW JAPANESE COAL PLANTS - CLYDE RUSSELL
Reuters: Clyde Russell
The collapse in the spot price of liquefied natural gas (LNG) in Asia is a short-term phenomenon that may wel ...
Wednesday, 12 February 20
THE SHIPPING INDUSTRY SEES FREIGHT MARKETS IN A COMPLETE STATE OF COLLAPSE AS DEMAND GETS PARALYZED DUE TO CORONAVIRUS OUTBREAK - ALLIED
With China and the world still trying to contain the effects and come to terms with the Wuhan novel coronavirus outbreak, the shipping industry see ...
Wednesday, 12 February 20
WORLD STEEL PRODUCTION IN 2019 - BANCHERO COSTA
In a worrying development, global steel production slowed down considerably in the fourth quarter of 2019. In the final 3 months of 2019, total cru ...
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- Agrawal Coal Company - India
- Singapore Mercantile Exchange
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Heidelberg Cement - Germany
- Kideco Jaya Agung - Indonesia
- Gujarat Sidhee Cement - India
- Karbindo Abesyapradhi - Indoneisa
- Altura Mining Limited, Indonesia
- Commonwealth Bank - Australia
- Parliament of New Zealand
- Global Green Power PLC Corporation, Philippines
- Wood Mackenzie - Singapore
- Madhucon Powers Ltd - India
- Coastal Gujarat Power Limited - India
- Central Electricity Authority - India
- New Zealand Coal & Carbon
- Energy Link Ltd, New Zealand
- Cement Manufacturers Association - India
- IHS Mccloskey Coal Group - USA
- Jorong Barutama Greston.PT - Indonesia
- Orica Australia Pty. Ltd.
- Sakthi Sugars Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Bayan Resources Tbk. - Indonesia
- OPG Power Generation Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Goldman Sachs - Singapore
- Merrill Lynch Commodities Europe
- ICICI Bank Limited - India
- Ministry of Finance - Indonesia
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- Ambuja Cements Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Global Coal Blending Company Limited - Australia
- Formosa Plastics Group - Taiwan
- Romanian Commodities Exchange
- Petrochimia International Co. Ltd.- Taiwan
- Sindya Power Generating Company Private Ltd
- Indian Oil Corporation Limited
- Energy Development Corp, Philippines
- GVK Power & Infra Limited - India
- McConnell Dowell - Australia
- Mjunction Services Limited - India
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- Latin American Coal - Colombia
- Pipit Mutiara Jaya. PT, Indonesia
- Petron Corporation, Philippines
- Malabar Cements Ltd - India
- Kumho Petrochemical, South Korea
- TeaM Sual Corporation - Philippines
- Sojitz Corporation - Japan
- Vedanta Resources Plc - India
- Essar Steel Hazira Ltd - India
- Semirara Mining Corp, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Central Java Power - Indonesia
- Standard Chartered Bank - UAE
- Globalindo Alam Lestari - Indonesia
- Samtan Co., Ltd - South Korea
- Videocon Industries ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Carbofer General Trading SA - India
- Directorate Of Revenue Intelligence - India
- Indika Energy - Indonesia
- Posco Energy - South Korea
- Bulk Trading Sa - Switzerland
- Anglo American - United Kingdom
- European Bulk Services B.V. - Netherlands
- Larsen & Toubro Limited - India
- Borneo Indobara - Indonesia
- Renaissance Capital - South Africa
- Uttam Galva Steels Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- SMG Consultants - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Aditya Birla Group - India
- MS Steel International - UAE
- Toyota Tsusho Corporation, Japan
- Sical Logistics Limited - India
- Antam Resourcindo - Indonesia
- Mintek Dendrill Indonesia
- Binh Thuan Hamico - Vietnam
- Kobexindo Tractors - Indoneisa
- Lanco Infratech Ltd - India
- Independent Power Producers Association of India
- Power Finance Corporation Ltd., India
- Rashtriya Ispat Nigam Limited - India
- Meralco Power Generation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Savvy Resources Ltd - HongKong
- Mercuria Energy - Indonesia
- Straits Asia Resources Limited - Singapore
- Bhatia International Limited - India
- Bangladesh Power Developement Board
- Ministry of Transport, Egypt
- Bharathi Cement Corporation - India
- Australian Coal Association
- Intertek Mineral Services - Indonesia
- Indonesian Coal Mining Association
- PetroVietnam Power Coal Import and Supply Company
- Baramulti Group, Indonesia
- Simpson Spence & Young - Indonesia
- IEA Clean Coal Centre - UK
- Rio Tinto Coal - Australia
- Global Business Power Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- London Commodity Brokers - England
- Karaikal Port Pvt Ltd - India
- Coalindo Energy - Indonesia
- Pendopo Energi Batubara - Indonesia
- LBH Netherlands Bv - Netherlands
- The State Trading Corporation of India Ltd
- Miang Besar Coal Terminal - Indonesia
- Xindia Steels Limited - India
- PowerSource Philippines DevCo
- Sree Jayajothi Cements Limited - India
- Eastern Coal Council - USA
- GMR Energy Limited - India
- Electricity Authority, New Zealand
- SMC Global Power, Philippines
- Planning Commission, India
- CIMB Investment Bank - Malaysia
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- GAC Shipping (India) Pvt Ltd
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- Bank of Tokyo Mitsubishi UFJ Ltd
- Africa Commodities Group - South Africa
- Therma Luzon, Inc, Philippines
- Leighton Contractors Pty Ltd - Australia
- CNBM International Corporation - China
- Cigading International Bulk Terminal - Indonesia
- Interocean Group of Companies - India
- Mercator Lines Limited - India
- Georgia Ports Authority, United States
- Salva Resources Pvt Ltd - India
- Chamber of Mines of South Africa
- Aboitiz Power Corporation - Philippines
- South Luzon Thermal Energy Corporation
- PTC India Limited - India
- Star Paper Mills Limited - India
- Ceylon Electricity Board - Sri Lanka
- Kaltim Prima Coal - Indonesia
- Price Waterhouse Coopers - Russia
- India Bulls Power Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Economic Council, Georgia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Vizag Seaport Private Limited - India
- Kartika Selabumi Mining - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Timah Investasi Mineral - Indoneisa
- ASAPP Information Group - India
- Billiton Holdings Pty Ltd - Australia
- Kepco SPC Power Corporation, Philippines
- Barasentosa Lestari - Indonesia
- VISA Power Limited - India
- Semirara Mining and Power Corporation, Philippines
- Ministry of Mines - Canada
- The Treasury - Australian Government
- Jaiprakash Power Ventures ltd
- Bukit Baiduri Energy - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Siam City Cement - Thailand
- Bukit Makmur.PT - Indonesia
- Minerals Council of Australia
- Bhushan Steel Limited - India
- Siam City Cement PLC, Thailand
- Orica Mining Services - Indonesia
- Ind-Barath Power Infra Limited - India
- Edison Trading Spa - Italy
- Gujarat Electricity Regulatory Commission - India
- Bhoruka Overseas - Indonesia
- Manunggal Multi Energi - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Metalloyd Limited - United Kingdom
- Parry Sugars Refinery, India
- Grasim Industreis Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indian Energy Exchange, India
- Makarim & Taira - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Coal and Oil Company - UAE
- Australian Commodity Traders Exchange
- Thiess Contractors Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
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- Offshore Bulk Terminal Pte Ltd, Singapore
- Oldendorff Carriers - Singapore
- Iligan Light & Power Inc, Philippines
- White Energy Company Limited
- Indogreen Group - Indonesia
- Tata Chemicals Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Tamil Nadu electricity Board
- Sarangani Energy Corporation, Philippines
- Eastern Energy - Thailand
- Riau Bara Harum - Indonesia
- Port Waratah Coal Services - Australia
- Marubeni Corporation - India
- Holcim Trading Pte Ltd - Singapore
- Jindal Steel & Power Ltd - India
- Thai Mozambique Logistica
- Medco Energi Mining Internasional
- Sinarmas Energy and Mining - Indonesia
- The University of Queensland
- International Coal Ventures Pvt Ltd - India
- Electricity Generating Authority of Thailand
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- PNOC Exploration Corporation - Philippines
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- TNB Fuel Sdn Bhd - Malaysia
- Wilmar Investment Holdings
- Attock Cement Pakistan Limited
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