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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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Sunday, 29 December 19
AUSTRALIA SUFFERS WORST OF CHINA'S COAL CURBS AFTER EARLIER BOOM - BLOOMBERG
Australia is bearing the brunt of China’s year-end coal import restrictions, ceding market share to other exporters including Russia and Mong ...
Saturday, 28 December 19
SUPRAMAX: A 63,000DWT VESSEL, OPEN CIGADING, FIXED A TRIP VIA INDONESIA, REDELIVERY WEST COAST INDIA, AT $8,500 - BALTIC BRIEFING
Capesize
The Capesize market this past week has been attempting to recalibrate itself in consideration of weakening freight levels and increasing ...
Saturday, 28 December 19
CHINESE INDUSTRIAL CITY TO FURTHER CUT COAL CONSUMPTION - XINHUA
Harbin, capital city of Heilongjiang Province in China’s northeastern industrial heartland, is planning to further reduce its coal consumptio ...
Friday, 27 December 19
MISERY LOOMS OVER TOP COAL SHIPPERS AS CHINA TO BUY LESS IN 2020 BLOOMBERG
China isn’t cutting back on consumption of the most-polluting fossil fuel just yet, but it is set to reduce imports.
The world ...
Thursday, 26 December 19
REVIEW OF 2019 AND OUTLOOK FOR 2020 - OPEC
Global economic growth slowed in 2019, impacted by a variety of challenges. Trade issues not only led to reduction in global final consumption but ...
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Showing 1221 to 1225 news of total 6871 |
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- Formosa Plastics Group - Taiwan
- Oldendorff Carriers - Singapore
- Kobexindo Tractors - Indoneisa
- Larsen & Toubro Limited - India
- Vedanta Resources Plc - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Siam City Cement PLC, Thailand
- Sojitz Corporation - Japan
- Coal and Oil Company - UAE
- Krishnapatnam Port Company Ltd. - India
- London Commodity Brokers - England
- Directorate General of MIneral and Coal - Indonesia
- Standard Chartered Bank - UAE
- MS Steel International - UAE
- Bhushan Steel Limited - India
- Mercator Lines Limited - India
- White Energy Company Limited
- Asmin Koalindo Tuhup - Indonesia
- Salva Resources Pvt Ltd - India
- Singapore Mercantile Exchange
- SMC Global Power, Philippines
- Indian Energy Exchange, India
- Lanco Infratech Ltd - India
- Ministry of Finance - Indonesia
- Parry Sugars Refinery, India
- Economic Council, Georgia
- Meenaskhi Energy Private Limited - India
- Romanian Commodities Exchange
- Ind-Barath Power Infra Limited - India
- Bharathi Cement Corporation - India
- Videocon Industries ltd - India
- Kumho Petrochemical, South Korea
- Minerals Council of Australia
- Directorate Of Revenue Intelligence - India
- Mjunction Services Limited - India
- Eastern Coal Council - USA
- Power Finance Corporation Ltd., India
- Pipit Mutiara Jaya. PT, Indonesia
- Simpson Spence & Young - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Binh Thuan Hamico - Vietnam
- Bhatia International Limited - India
- South Luzon Thermal Energy Corporation
- Savvy Resources Ltd - HongKong
- Madhucon Powers Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Star Paper Mills Limited - India
- Independent Power Producers Association of India
- Barasentosa Lestari - Indonesia
- Renaissance Capital - South Africa
- Australian Commodity Traders Exchange
- Offshore Bulk Terminal Pte Ltd, Singapore
- Thai Mozambique Logistica
- Maheswari Brothers Coal Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Central Electricity Authority - India
- Holcim Trading Pte Ltd - Singapore
- Latin American Coal - Colombia
- Aditya Birla Group - India
- Sree Jayajothi Cements Limited - India
- The State Trading Corporation of India Ltd
- Rio Tinto Coal - Australia
- Interocean Group of Companies - India
- Antam Resourcindo - Indonesia
- Essar Steel Hazira Ltd - India
- Australian Coal Association
- International Coal Ventures Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Kideco Jaya Agung - Indonesia
- Uttam Galva Steels Limited - India
- Indian Oil Corporation Limited
- Billiton Holdings Pty Ltd - Australia
- Carbofer General Trading SA - India
- Makarim & Taira - Indonesia
- Aboitiz Power Corporation - Philippines
- Grasim Industreis Ltd - India
- Sindya Power Generating Company Private Ltd
- Karbindo Abesyapradhi - Indoneisa
- IHS Mccloskey Coal Group - USA
- Semirara Mining Corp, Philippines
- Meralco Power Generation, Philippines
- European Bulk Services B.V. - Netherlands
- Riau Bara Harum - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Manunggal Multi Energi - Indonesia
- Chamber of Mines of South Africa
- Maharashtra Electricity Regulatory Commission - India
- Commonwealth Bank - Australia
- Kartika Selabumi Mining - Indonesia
- Coalindo Energy - Indonesia
- IEA Clean Coal Centre - UK
- PNOC Exploration Corporation - Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Agrawal Coal Company - India
- Bahari Cakrawala Sebuku - Indonesia
- Central Java Power - Indonesia
- Africa Commodities Group - South Africa
- Rashtriya Ispat Nigam Limited - India
- Pendopo Energi Batubara - Indonesia
- Karaikal Port Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Cigading International Bulk Terminal - Indonesia
- Timah Investasi Mineral - Indoneisa
- Mintek Dendrill Indonesia
- Ministry of Mines - Canada
- Indogreen Group - Indonesia
- Medco Energi Mining Internasional
- Ceylon Electricity Board - Sri Lanka
- Indonesian Coal Mining Association
- Neyveli Lignite Corporation Ltd, - India
- TeaM Sual Corporation - Philippines
- Goldman Sachs - Singapore
- Banpu Public Company Limited - Thailand
- Merrill Lynch Commodities Europe
- Bhoruka Overseas - Indonesia
- Iligan Light & Power Inc, Philippines
- Coastal Gujarat Power Limited - India
- Baramulti Group, Indonesia
- Sinarmas Energy and Mining - Indonesia
- Xindia Steels Limited - India
- Intertek Mineral Services - Indonesia
- Anglo American - United Kingdom
- Bayan Resources Tbk. - Indonesia
- OPG Power Generation Pvt Ltd - India
- Heidelberg Cement - Germany
- CNBM International Corporation - China
- ICICI Bank Limited - India
- Price Waterhouse Coopers - Russia
- Bukit Makmur.PT - Indonesia
- India Bulls Power Limited - India
- PowerSource Philippines DevCo
- AsiaOL BioFuels Corp., Philippines
- Sarangani Energy Corporation, Philippines
- Bukit Baiduri Energy - Indonesia
- VISA Power Limited - India
- Leighton Contractors Pty Ltd - Australia
- Energy Development Corp, Philippines
- GAC Shipping (India) Pvt Ltd
- Borneo Indobara - Indonesia
- Petron Corporation, Philippines
- The Treasury - Australian Government
- Tamil Nadu electricity Board
- Kepco SPC Power Corporation, Philippines
- Tata Chemicals Ltd - India
- Therma Luzon, Inc, Philippines
- Deloitte Consulting - India
- Sakthi Sugars Limited - India
- Gujarat Electricity Regulatory Commission - India
- GVK Power & Infra Limited - India
- SMG Consultants - Indonesia
- Parliament of New Zealand
- Jindal Steel & Power Ltd - India
- Georgia Ports Authority, United States
- Sical Logistics Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Planning Commission, India
- Miang Besar Coal Terminal - Indonesia
- LBH Netherlands Bv - Netherlands
- Electricity Authority, New Zealand
- GN Power Mariveles Coal Plant, Philippines
- Wilmar Investment Holdings
- Indika Energy - Indonesia
- San Jose City I Power Corp, Philippines
- Chettinad Cement Corporation Ltd - India
- Kaltim Prima Coal - Indonesia
- The University of Queensland
- McConnell Dowell - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Energy Link Ltd, New Zealand
- Wood Mackenzie - Singapore
- Orica Australia Pty. Ltd.
- Bangladesh Power Developement Board
- Siam City Cement - Thailand
- ASAPP Information Group - India
- Kohat Cement Company Ltd. - Pakistan
- Vizag Seaport Private Limited - India
- Cement Manufacturers Association - India
- Orica Mining Services - Indonesia
- Straits Asia Resources Limited - Singapore
- Ambuja Cements Ltd - India
- SN Aboitiz Power Inc, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Ministry of Transport, Egypt
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Thiess Contractors Indonesia
- Globalindo Alam Lestari - Indonesia
- Dalmia Cement Bharat India
- Alfred C Toepfer International GmbH - Germany
- New Zealand Coal & Carbon
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Eastern Energy - Thailand
- Attock Cement Pakistan Limited
- Global Coal Blending Company Limited - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Global Green Power PLC Corporation, Philippines
- Marubeni Corporation - India
- Semirara Mining and Power Corporation, Philippines
- GMR Energy Limited - India
- CIMB Investment Bank - Malaysia
- Edison Trading Spa - Italy
- Gujarat Sidhee Cement - India
- Jaiprakash Power Ventures ltd
- Altura Mining Limited, Indonesia
- Mercuria Energy - Indonesia
- Posco Energy - South Korea
- Kapuas Tunggal Persada - Indonesia
- Port Waratah Coal Services - Australia
- Malabar Cements Ltd - India
- Global Business Power Corporation, Philippines
- Trasteel International SA, Italy
- Toyota Tsusho Corporation, Japan
- Samtan Co., Ltd - South Korea
- Kalimantan Lumbung Energi - Indonesia
- PTC India Limited - India
- Electricity Generating Authority of Thailand
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