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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, 10 April 19
KOSPO INVITED BIDS FOR 160K MT OF MIN. 3700 NCV COAL FOR JUNE LOADING
COALspot.com: South Korea state-owned utility Korea Southern Power Co. Ltd (KOSPO) issued a tender for 160,000 MT of min. 3,800 Kcal/kg ~max.4,100 ...
Wednesday, 10 April 19
CHINA'S GROWING THERMAL COAL SUPPLY TO PRESSURE EXPORTERS - FITCH RATINGS
Growing Chinese thermal coal supply is likely to lead to further tightening of import controls by the government, putting pressure on seaborne coal ...
Wednesday, 10 April 19
SHIPPING MARKET INSIGHT - INTERMODAL
The tragedy in Brazil’s Vale Brumadinho where a tailings dam collapsed in January ranks among the world’s worst mining disasters. It co ...
Monday, 08 April 19
5TH INDIA NUCLEAR NEW BUILD CONGRESS 2019
5th India Nuclear New Build Congress 2019
The congress in Mumbai aims to bring together representatives from governments, regulators ...
Monday, 08 April 19
THERMAL COAL PRICES FALL, INDIAN POWER PLANTS TO SEE LIMITED GAINS - BUSINESS STANDARD
Thermal coal prices are on a downward spiral globally. Australian coal prices have fallen nearly 20 per cent in the past week, and 40 per cent from ...
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- Straits Asia Resources Limited - Singapore
- Minerals Council of Australia
- The Treasury - Australian Government
- Rashtriya Ispat Nigam Limited - India
- Manunggal Multi Energi - Indonesia
- Orica Australia Pty. Ltd.
- Tamil Nadu electricity Board
- Offshore Bulk Terminal Pte Ltd, Singapore
- Borneo Indobara - Indonesia
- Vedanta Resources Plc - India
- European Bulk Services B.V. - Netherlands
- Edison Trading Spa - Italy
- Mjunction Services Limited - India
- Bharathi Cement Corporation - India
- Toyota Tsusho Corporation, Japan
- Merrill Lynch Commodities Europe
- Bhatia International Limited - India
- Africa Commodities Group - South Africa
- Price Waterhouse Coopers - Russia
- Interocean Group of Companies - India
- Kapuas Tunggal Persada - Indonesia
- Sojitz Corporation - Japan
- Global Green Power PLC Corporation, Philippines
- Gujarat Sidhee Cement - India
- Ministry of Mines - Canada
- Uttam Galva Steels Limited - India
- GAC Shipping (India) Pvt Ltd
- Bangladesh Power Developement Board
- Gujarat Mineral Development Corp Ltd - India
- GVK Power & Infra Limited - India
- Eastern Coal Council - USA
- Indian Energy Exchange, India
- Bhoruka Overseas - Indonesia
- Siam City Cement - Thailand
- Electricity Generating Authority of Thailand
- Kideco Jaya Agung - Indonesia
- Sarangani Energy Corporation, Philippines
- Semirara Mining Corp, Philippines
- Simpson Spence & Young - Indonesia
- PowerSource Philippines DevCo
- Meenaskhi Energy Private Limited - India
- Anglo American - United Kingdom
- Ministry of Transport, Egypt
- PNOC Exploration Corporation - Philippines
- Siam City Cement PLC, Thailand
- Xindia Steels Limited - India
- Maharashtra Electricity Regulatory Commission - India
- South Luzon Thermal Energy Corporation
- Ministry of Finance - Indonesia
- Grasim Industreis Ltd - India
- Renaissance Capital - South Africa
- Maheswari Brothers Coal Limited - India
- Pendopo Energi Batubara - Indonesia
- Medco Energi Mining Internasional
- IEA Clean Coal Centre - UK
- Kobexindo Tractors - Indoneisa
- ASAPP Information Group - India
- McConnell Dowell - Australia
- Kumho Petrochemical, South Korea
- Electricity Authority, New Zealand
- Central Java Power - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Star Paper Mills Limited - India
- Indogreen Group - Indonesia
- Intertek Mineral Services - Indonesia
- Chettinad Cement Corporation Ltd - India
- Barasentosa Lestari - Indonesia
- Port Waratah Coal Services - Australia
- SMG Consultants - Indonesia
- Central Electricity Authority - India
- Karaikal Port Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Thai Mozambique Logistica
- International Coal Ventures Pvt Ltd - India
- CNBM International Corporation - China
- Sree Jayajothi Cements Limited - India
- Altura Mining Limited, Indonesia
- Sindya Power Generating Company Private Ltd
- Australian Commodity Traders Exchange
- PTC India Limited - India
- Directorate Of Revenue Intelligence - India
- India Bulls Power Limited - India
- Thiess Contractors Indonesia
- TeaM Sual Corporation - Philippines
- Neyveli Lignite Corporation Ltd, - India
- Mercator Lines Limited - India
- Dalmia Cement Bharat India
- Indonesian Coal Mining Association
- Commonwealth Bank - Australia
- Jaiprakash Power Ventures ltd
- Wood Mackenzie - Singapore
- Mercuria Energy - Indonesia
- Energy Development Corp, Philippines
- Romanian Commodities Exchange
- Riau Bara Harum - Indonesia
- Chamber of Mines of South Africa
- Ceylon Electricity Board - Sri Lanka
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Trasteel International SA, Italy
- TNB Fuel Sdn Bhd - Malaysia
- Eastern Energy - Thailand
- Attock Cement Pakistan Limited
- Holcim Trading Pte Ltd - Singapore
- Standard Chartered Bank - UAE
- Singapore Mercantile Exchange
- Semirara Mining and Power Corporation, Philippines
- Makarim & Taira - Indonesia
- CIMB Investment Bank - Malaysia
- Bulk Trading Sa - Switzerland
- Ind-Barath Power Infra Limited - India
- Georgia Ports Authority, United States
- Indika Energy - Indonesia
- Sical Logistics Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Sakthi Sugars Limited - India
- New Zealand Coal & Carbon
- Tata Chemicals Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Salva Resources Pvt Ltd - India
- Deloitte Consulting - India
- Indo Tambangraya Megah - Indonesia
- Independent Power Producers Association of India
- Baramulti Group, Indonesia
- Banpu Public Company Limited - Thailand
- Coastal Gujarat Power Limited - India
- Wilmar Investment Holdings
- SN Aboitiz Power Inc, Philippines
- Energy Link Ltd, New Zealand
- Coal and Oil Company - UAE
- Ambuja Cements Ltd - India
- GMR Energy Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Baiduri Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mintek Dendrill Indonesia
- Indian Oil Corporation Limited
- Bhushan Steel Limited - India
- White Energy Company Limited
- ICICI Bank Limited - India
- Goldman Sachs - Singapore
- Metalloyd Limited - United Kingdom
- Meralco Power Generation, Philippines
- Parry Sugars Refinery, India
- Krishnapatnam Port Company Ltd. - India
- Orica Mining Services - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Kaltim Prima Coal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Asmin Koalindo Tuhup - Indonesia
- Lanco Infratech Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- PetroVietnam Power Coal Import and Supply Company
- Sinarmas Energy and Mining - Indonesia
- The State Trading Corporation of India Ltd
- IHS Mccloskey Coal Group - USA
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Larsen & Toubro Limited - India
- Rio Tinto Coal - Australia
- Cement Manufacturers Association - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Latin American Coal - Colombia
- Carbofer General Trading SA - India
- Vizag Seaport Private Limited - India
- Planning Commission, India
- Videocon Industries ltd - India
- Alfred C Toepfer International GmbH - Germany
- Coalindo Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- The University of Queensland
- Power Finance Corporation Ltd., India
- Jindal Steel & Power Ltd - India
- Bayan Resources Tbk. - Indonesia
- Petron Corporation, Philippines
- Aditya Birla Group - India
- Globalindo Alam Lestari - Indonesia
- VISA Power Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Parliament of New Zealand
- San Jose City I Power Corp, Philippines
- Antam Resourcindo - Indonesia
- Iligan Light & Power Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Global Coal Blending Company Limited - Australia
- Marubeni Corporation - India
- Kepco SPC Power Corporation, Philippines
- London Commodity Brokers - England
- SMC Global Power, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Savvy Resources Ltd - HongKong
- Essar Steel Hazira Ltd - India
- Malabar Cements Ltd - India
- Posco Energy - South Korea
- Aboitiz Power Corporation - Philippines
- Binh Thuan Hamico - Vietnam
- Bukit Makmur.PT - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Economic Council, Georgia
- Samtan Co., Ltd - South Korea
- Heidelberg Cement - Germany
- Miang Besar Coal Terminal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- MS Steel International - UAE
- Oldendorff Carriers - Singapore
- Timah Investasi Mineral - Indoneisa
- Leighton Contractors Pty Ltd - Australia
- Agrawal Coal Company - India
- Therma Luzon, Inc, Philippines
- Madhucon Powers Ltd - India
- OPG Power Generation Pvt Ltd - India
- Australian Coal Association
- Formosa Plastics Group - Taiwan
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