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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, 17 April 19
ONCE AGAIN WE FACED WITH THE SITUATION OF THE DRY BALTIC INDEX BEING BELOW 1,000 POINTS - INTERMODAL
Once again we are faced with the situation of the Dry Baltic Index being below 1,000 points. In a market where the feeling of insecurity is almost ...
Wednesday, 17 April 19
LNG WESTERN AFRICA CONFERENCE 2019
The only LNG Focus Platform to Accelerate Investment and Cooperation in Western African Countries
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Saturday, 13 April 19
IMO 2020 - DON'T SCRUB IT! - IVAR MYKLEBUST
KNOWLEDGE TO ELEVATE
Höegh Autoliners stands firm on its decision not to implement scrubbers but comply with the IMO 2020 regulations by ...
Saturday, 13 April 19
CAPESIZE: WEST AUSTRALIA TO CHINA IRON ORE CARGOES LIFTING FROM $4.60 PMT TO ABOVE $5.00 - BALTIC BRIEFING
Capesize
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Friday, 12 April 19
OIL MARKET REPORT: MIXED SIGNALS - IEA
The huge increase in oil production we saw in 2H18 has reversed following the implementation of the new Vienna Agreement and the increasing effecti ...
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- Carbofer General Trading SA - India
- Port Waratah Coal Services - Australia
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- Deloitte Consulting - India
- Ind-Barath Power Infra Limited - India
- Lanco Infratech Ltd - India
- London Commodity Brokers - England
- Latin American Coal - Colombia
- Sindya Power Generating Company Private Ltd
- South Luzon Thermal Energy Corporation
- Planning Commission, India
- Electricity Generating Authority of Thailand
- Straits Asia Resources Limited - Singapore
- New Zealand Coal & Carbon
- Aditya Birla Group - India
- Directorate Of Revenue Intelligence - India
- GAC Shipping (India) Pvt Ltd
- Energy Development Corp, Philippines
- ICICI Bank Limited - India
- ASAPP Information Group - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Posco Energy - South Korea
- Australian Coal Association
- Global Business Power Corporation, Philippines
- Chamber of Mines of South Africa
- Parliament of New Zealand
- Cigading International Bulk Terminal - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Africa Commodities Group - South Africa
- Intertek Mineral Services - Indonesia
- Bhatia International Limited - India
- Banpu Public Company Limited - Thailand
- Savvy Resources Ltd - HongKong
- AsiaOL BioFuels Corp., Philippines
- PetroVietnam Power Coal Import and Supply Company
- Singapore Mercantile Exchange
- GVK Power & Infra Limited - India
- Salva Resources Pvt Ltd - India
- Rio Tinto Coal - Australia
- Binh Thuan Hamico - Vietnam
- Trasteel International SA, Italy
- PNOC Exploration Corporation - Philippines
- Holcim Trading Pte Ltd - Singapore
- Vedanta Resources Plc - India
- Bhushan Steel Limited - India
- Indonesian Coal Mining Association
- Minerals Council of Australia
- Bukit Baiduri Energy - Indonesia
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- VISA Power Limited - India
- International Coal Ventures Pvt Ltd - India
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- Baramulti Group, Indonesia
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- Vijayanagar Sugar Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Semirara Mining Corp, Philippines
- San Jose City I Power Corp, Philippines
- Ministry of Mines - Canada
- Kaltim Prima Coal - Indonesia
- CNBM International Corporation - China
- Gujarat Mineral Development Corp Ltd - India
- Interocean Group of Companies - India
- Indo Tambangraya Megah - Indonesia
- Sical Logistics Limited - India
- Karaikal Port Pvt Ltd - India
- Madhucon Powers Ltd - India
- Manunggal Multi Energi - Indonesia
- LBH Netherlands Bv - Netherlands
- Essar Steel Hazira Ltd - India
- Videocon Industries ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- CIMB Investment Bank - Malaysia
- Maharashtra Electricity Regulatory Commission - India
- Sinarmas Energy and Mining - Indonesia
- Eastern Coal Council - USA
- Agrawal Coal Company - India
- Alfred C Toepfer International GmbH - Germany
- Star Paper Mills Limited - India
- Tamil Nadu electricity Board
- Chettinad Cement Corporation Ltd - India
- Aboitiz Power Corporation - Philippines
- Kepco SPC Power Corporation, Philippines
- SMC Global Power, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Bayan Resources Tbk. - Indonesia
- Sakthi Sugars Limited - India
- Kobexindo Tractors - Indoneisa
- Jaiprakash Power Ventures ltd
- Maheswari Brothers Coal Limited - India
- Ceylon Electricity Board - Sri Lanka
- Global Coal Blending Company Limited - Australia
- Meralco Power Generation, Philippines
- Central Java Power - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Semirara Mining and Power Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Cement Manufacturers Association - India
- Bhoruka Overseas - Indonesia
- Thai Mozambique Logistica
- Coalindo Energy - Indonesia
- Orica Australia Pty. Ltd.
- The University of Queensland
- Gujarat Electricity Regulatory Commission - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Green Power PLC Corporation, Philippines
- Indian Oil Corporation Limited
- Wilmar Investment Holdings
- Ambuja Cements Ltd - India
- Riau Bara Harum - Indonesia
- Energy Link Ltd, New Zealand
- Mintek Dendrill Indonesia
- Krishnapatnam Port Company Ltd. - India
- The State Trading Corporation of India Ltd
- Price Waterhouse Coopers - Russia
- Power Finance Corporation Ltd., India
- Marubeni Corporation - India
- Sojitz Corporation - Japan
- Miang Besar Coal Terminal - Indonesia
- Pendopo Energi Batubara - Indonesia
- Siam City Cement - Thailand
- White Energy Company Limited
- Kohat Cement Company Ltd. - Pakistan
- Eastern Energy - Thailand
- Gujarat Sidhee Cement - India
- Sree Jayajothi Cements Limited - India
- Independent Power Producers Association of India
- Commonwealth Bank - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Sarangani Energy Corporation, Philippines
- Standard Chartered Bank - UAE
- Altura Mining Limited, Indonesia
- Metalloyd Limited - United Kingdom
- Formosa Plastics Group - Taiwan
- Mercator Lines Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Heidelberg Cement - Germany
- Anglo American - United Kingdom
- OPG Power Generation Pvt Ltd - India
- Petron Corporation, Philippines
- Romanian Commodities Exchange
- Directorate General of MIneral and Coal - Indonesia
- Electricity Authority, New Zealand
- Karbindo Abesyapradhi - Indoneisa
- TeaM Sual Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- Bharathi Cement Corporation - India
- GMR Energy Limited - India
- Bulk Trading Sa - Switzerland
- Petrochimia International Co. Ltd.- Taiwan
- Wood Mackenzie - Singapore
- The Treasury - Australian Government
- IHS Mccloskey Coal Group - USA
- Georgia Ports Authority, United States
- Bukit Asam (Persero) Tbk - Indonesia
- Indogreen Group - Indonesia
- Simpson Spence & Young - Indonesia
- Thiess Contractors Indonesia
- Mercuria Energy - Indonesia
- MS Steel International - UAE
- Therma Luzon, Inc, Philippines
- Coastal Gujarat Power Limited - India
- Barasentosa Lestari - Indonesia
- SMG Consultants - Indonesia
- Kideco Jaya Agung - Indonesia
- Merrill Lynch Commodities Europe
- Dalmia Cement Bharat India
- Attock Cement Pakistan Limited
- Goldman Sachs - Singapore
- Indika Energy - Indonesia
- PTC India Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Xindia Steels Limited - India
- Indian Energy Exchange, India
- Samtan Co., Ltd - South Korea
- Ministry of Finance - Indonesia
- Medco Energi Mining Internasional
- Uttam Galva Steels Limited - India
- Globalindo Alam Lestari - Indonesia
- Makarim & Taira - Indonesia
- Ministry of Transport, Egypt
- Kumho Petrochemical, South Korea
- Renaissance Capital - South Africa
- GN Power Mariveles Coal Plant, Philippines
- Orica Mining Services - Indonesia
- Larsen & Toubro Limited - India
- Edison Trading Spa - Italy
- Coal and Oil Company - UAE
- PowerSource Philippines DevCo
- European Bulk Services B.V. - Netherlands
- Malabar Cements Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Economic Council, Georgia
- IEA Clean Coal Centre - UK
- Grasim Industreis Ltd - India
- Iligan Light & Power Inc, Philippines
- Oldendorff Carriers - Singapore
- India Bulls Power Limited - India
- Parry Sugars Refinery, India
- Jindal Steel & Power Ltd - India
- Vizag Seaport Private Limited - India
- Central Electricity Authority - India
- Antam Resourcindo - Indonesia
- Toyota Tsusho Corporation, Japan
- Australian Commodity Traders Exchange
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- McConnell Dowell - Australia
- Bukit Makmur.PT - Indonesia
- Timah Investasi Mineral - Indoneisa
- Tata Chemicals Ltd - India
- Leighton Contractors Pty Ltd - Australia
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