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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 $6.4 million in common shares of NewLead. Such acquisition is subject to a number of terms and conditions and there is no assurance it will be consummated. The management company shall be responsible for managing the daily operations of the coal mines and the excavation of the coal from the properties.
For more details please visit www.newleadholdings.com.
Source: NewLead Holdings
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Tuesday, 27 November 18
PANAMAX AND SUPRAMAX INDICES WITNESSED A DECLINE OF JUST BELOW 14% IN THEIR MEAN ON A MONTH-ON-MONTH COMPARISON - ALLIED SHIPPING
A month of sharp corrections and great asymmetries for the dry bulk sector, with the overall overview of the market shipping rapidly from a state o ...
Monday, 26 November 18
SUPRAMAX: THE ASIAN MARKET STALLED THIS WEEK WITH A BUILD-UP OF TONNAGE - BALTIC BRIEFING
Capesize
It was a positive end to the week, with West Australia/China making significant gains and firing owners’ resolve. There was talk ...
Friday, 23 November 18
GOLDEN ENERGY'S POTENTIAL ACQUISITION OF STANMORE CREDIT POSITIVE - FITCH RATINGS
Golden Energy and Resources Limited's (GEAR, B+/Positive) potential acquisition of Stanmore Coal will help the company diversify its coal opera ...
Friday, 23 November 18
ASSOCIATION CALLS FOR REVISION OF DMO SCHEME FOR COAL - JP
The Indonesian Coal Mining Association (APBI) has called on the government to revise the domestic market obligation (DMO) scheme for coal, which re ...
Friday, 23 November 18
INDONESIA'S REVENUES FROM MINERAL AND COAL INCREASE TO US$ 2.858 BILLION - ANTARA
Indonesia`s non-tax state revenues from the mineral and coal sub-sector reached Rp 41.77 trillion (approximately US$ 2.858 Billion) as of Nov 16, 2 ...
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- Jindal Steel & Power Ltd - India
- Semirara Mining Corp, Philippines
- Indian Oil Corporation Limited
- Orica Mining Services - Indonesia
- Tata Chemicals Ltd - India
- PowerSource Philippines DevCo
- Marubeni Corporation - India
- Oldendorff Carriers - Singapore
- Heidelberg Cement - Germany
- Karaikal Port Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- The University of Queensland
- Gujarat Mineral Development Corp Ltd - India
- SN Aboitiz Power Inc, Philippines
- Parliament of New Zealand
- Africa Commodities Group - South Africa
- TNB Fuel Sdn Bhd - Malaysia
- Siam City Cement - Thailand
- Miang Besar Coal Terminal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Asmin Koalindo Tuhup - Indonesia
- Meralco Power Generation, Philippines
- Mjunction Services Limited - India
- Ceylon Electricity Board - Sri Lanka
- Grasim Industreis Ltd - India
- Attock Cement Pakistan Limited
- Independent Power Producers Association of India
- Formosa Plastics Group - Taiwan
- Wilmar Investment Holdings
- Timah Investasi Mineral - Indoneisa
- Dalmia Cement Bharat India
- Uttam Galva Steels Limited - India
- Rio Tinto Coal - Australia
- Bharathi Cement Corporation - India
- Indian Energy Exchange, India
- Indogreen Group - Indonesia
- Bukit Makmur.PT - Indonesia
- Larsen & Toubro Limited - India
- Jaiprakash Power Ventures ltd
- New Zealand Coal & Carbon
- McConnell Dowell - Australia
- Lanco Infratech Ltd - India
- Banpu Public Company Limited - Thailand
- Sarangani Energy Corporation, Philippines
- Riau Bara Harum - Indonesia
- Globalindo Alam Lestari - Indonesia
- CIMB Investment Bank - Malaysia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Therma Luzon, Inc, Philippines
- Australian Commodity Traders Exchange
- Pendopo Energi Batubara - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Ambuja Cements Ltd - India
- Posco Energy - South Korea
- Romanian Commodities Exchange
- Alfred C Toepfer International GmbH - Germany
- LBH Netherlands Bv - Netherlands
- Wood Mackenzie - Singapore
- Minerals Council of Australia
- SMC Global Power, Philippines
- Coal and Oil Company - UAE
- Ministry of Mines - Canada
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GVK Power & Infra Limited - India
- Thai Mozambique Logistica
- Ind-Barath Power Infra Limited - India
- Renaissance Capital - South Africa
- Aditya Birla Group - India
- Petron Corporation, Philippines
- Latin American Coal - Colombia
- Kepco SPC Power Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Central Java Power - Indonesia
- Planning Commission, India
- Meenaskhi Energy Private Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Global Green Power PLC Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Sojitz Corporation - Japan
- CNBM International Corporation - China
- Neyveli Lignite Corporation Ltd, - India
- Eastern Energy - Thailand
- SMG Consultants - Indonesia
- Singapore Mercantile Exchange
- Sinarmas Energy and Mining - Indonesia
- International Coal Ventures Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- The Treasury - Australian Government
- Bayan Resources Tbk. - Indonesia
- European Bulk Services B.V. - Netherlands
- Edison Trading Spa - Italy
- Kohat Cement Company Ltd. - Pakistan
- GMR Energy Limited - India
- ICICI Bank Limited - India
- Deloitte Consulting - India
- Maheswari Brothers Coal Limited - India
- Siam City Cement PLC, Thailand
- Samtan Co., Ltd - South Korea
- Carbofer General Trading SA - India
- Sree Jayajothi Cements Limited - India
- Energy Link Ltd, New Zealand
- Sindya Power Generating Company Private Ltd
- MS Steel International - UAE
- Agrawal Coal Company - India
- Kumho Petrochemical, South Korea
- Mercuria Energy - Indonesia
- Eastern Coal Council - USA
- Power Finance Corporation Ltd., India
- Jorong Barutama Greston.PT - Indonesia
- Orica Australia Pty. Ltd.
- Simpson Spence & Young - Indonesia
- India Bulls Power Limited - India
- Indonesian Coal Mining Association
- Trasteel International SA, Italy
- Savvy Resources Ltd - HongKong
- Tamil Nadu electricity Board
- Kartika Selabumi Mining - Indonesia
- Central Electricity Authority - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Barasentosa Lestari - Indonesia
- Intertek Mineral Services - Indonesia
- Kaltim Prima Coal - Indonesia
- Makarim & Taira - Indonesia
- Chettinad Cement Corporation Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Bhoruka Overseas - Indonesia
- Standard Chartered Bank - UAE
- IHS Mccloskey Coal Group - USA
- Videocon Industries ltd - India
- Semirara Mining and Power Corporation, Philippines
- Malabar Cements Ltd - India
- PNOC Exploration Corporation - Philippines
- Vizag Seaport Private Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ministry of Transport, Egypt
- Bhushan Steel Limited - India
- Billiton Holdings Pty Ltd - Australia
- Interocean Group of Companies - India
- Directorate Of Revenue Intelligence - India
- Georgia Ports Authority, United States
- Australian Coal Association
- Parry Sugars Refinery, India
- Cement Manufacturers Association - India
- Maharashtra Electricity Regulatory Commission - India
- Rashtriya Ispat Nigam Limited - India
- Altura Mining Limited, Indonesia
- Binh Thuan Hamico - Vietnam
- Holcim Trading Pte Ltd - Singapore
- Chamber of Mines of South Africa
- Essar Steel Hazira Ltd - India
- Madhucon Powers Ltd - India
- Medco Energi Mining Internasional
- ASAPP Information Group - India
- Global Business Power Corporation, Philippines
- VISA Power Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Merrill Lynch Commodities Europe
- TeaM Sual Corporation - Philippines
- Leighton Contractors Pty Ltd - Australia
- Manunggal Multi Energi - Indonesia
- Electricity Generating Authority of Thailand
- South Luzon Thermal Energy Corporation
- Sical Logistics Limited - India
- Indo Tambangraya Megah - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Coastal Gujarat Power Limited - India
- Aboitiz Power Corporation - Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Salva Resources Pvt Ltd - India
- Sakthi Sugars Limited - India
- Vedanta Resources Plc - India
- Goldman Sachs - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Bhatia International Limited - India
- Kideco Jaya Agung - Indonesia
- Economic Council, Georgia
- Thiess Contractors Indonesia
- Borneo Indobara - Indonesia
- Bangladesh Power Developement Board
- Kobexindo Tractors - Indoneisa
- Coalindo Energy - Indonesia
- Commonwealth Bank - Australia
- Metalloyd Limited - United Kingdom
- Gujarat Electricity Regulatory Commission - India
- GN Power Mariveles Coal Plant, Philippines
- IEA Clean Coal Centre - UK
- Anglo American - United Kingdom
- London Commodity Brokers - England
- Indika Energy - Indonesia
- Ministry of Finance - Indonesia
- Bulk Trading Sa - Switzerland
- Baramulti Group, Indonesia
- GAC Shipping (India) Pvt Ltd
- Xindia Steels Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- White Energy Company Limited
- PetroVietnam Power Coal Import and Supply Company
- Mercator Lines Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Toyota Tsusho Corporation, Japan
- Mintek Dendrill Indonesia
- Kapuas Tunggal Persada - Indonesia
- Star Paper Mills Limited - India
- AsiaOL BioFuels Corp., Philippines
- Port Waratah Coal Services - Australia
- Electricity Authority, New Zealand
- Energy Development Corp, Philippines
- Price Waterhouse Coopers - Russia
- The State Trading Corporation of India Ltd
- Global Coal Blending Company Limited - Australia
- Antam Resourcindo - Indonesia
- Gujarat Sidhee Cement - India
- Straits Asia Resources Limited - Singapore
- PTC India Limited - India
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