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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, 25 July 18
TANKER MARKET INSIGHT - DIMITRIS KOURTESIS
We are now into the second half of 2018, which so far has not been a fruitful year for tankers. With 2020 quickly approaching we need to consider t ...
Tuesday, 24 July 18
TANKER MARKET : IN TERMS OF TRADE, THE STEPS THAT WERE SLOWLY BEING TAKEN BY OPEC AND RUSSIA - GEORGE LAZARIDIS
Despite the fact that the tanker market still seems to be in the midst of a perfect storm, there are still strong indicators that better sailing da ...
Thursday, 19 July 18
VINACOMIN PRODUCES OVER 20 MLN TONNES OF RAW COAL FROM YEAR'S START - VNA
The Vietnam National Coal and Mineral Industries Group (Vinacomin) has produced over 20 million tonnes of raw coal and 19.3 million of clean coal f ...
Wednesday, 18 July 18
INDONESIA TO AUCTION 16 MINING SITES - JP
Indonesia will soon auction 16 mining sites as no proposal submissions have been submitted by state-owned enterprises (BUMN) and regional administr ...
Wednesday, 18 July 18
SHIPPING MARKET INSIGHT - VASILIS MOIRIS
The new regulations for Chinese flag restricting import of Tier I ships have dominated market sentiment during the past days as buyers have been tr ...
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- Mintek Dendrill Indonesia
- Meenaskhi Energy Private Limited - India
- Sindya Power Generating Company Private Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indo Tambangraya Megah - Indonesia
- Carbofer General Trading SA - India
- GMR Energy Limited - India
- Marubeni Corporation - India
- Savvy Resources Ltd - HongKong
- Maharashtra Electricity Regulatory Commission - India
- Toyota Tsusho Corporation, Japan
- Minerals Council of Australia
- Energy Development Corp, Philippines
- Lanco Infratech Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Altura Mining Limited, Indonesia
- Kaltim Prima Coal - Indonesia
- Bukit Baiduri Energy - Indonesia
- Sakthi Sugars Limited - India
- Indian Oil Corporation Limited
- Edison Trading Spa - Italy
- The Treasury - Australian Government
- Petrochimia International Co. Ltd.- Taiwan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Orica Mining Services - Indonesia
- Salva Resources Pvt Ltd - India
- Economic Council, Georgia
- Grasim Industreis Ltd - India
- Barasentosa Lestari - Indonesia
- Goldman Sachs - Singapore
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- Star Paper Mills Limited - India
- Borneo Indobara - Indonesia
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- PNOC Exploration Corporation - Philippines
- Miang Besar Coal Terminal - Indonesia
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- Merrill Lynch Commodities Europe
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- Medco Energi Mining Internasional
- Kohat Cement Company Ltd. - Pakistan
- Gujarat Mineral Development Corp Ltd - India
- Bayan Resources Tbk. - Indonesia
- Africa Commodities Group - South Africa
- European Bulk Services B.V. - Netherlands
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- ASAPP Information Group - India
- Electricity Generating Authority of Thailand
- Mercator Lines Limited - India
- Rio Tinto Coal - Australia
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- Coal and Oil Company - UAE
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- Renaissance Capital - South Africa
- Kideco Jaya Agung - Indonesia
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- Australian Coal Association
- Indian Energy Exchange, India
- Ambuja Cements Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Pipit Mutiara Jaya. PT, Indonesia
- Madhucon Powers Ltd - India
- Parliament of New Zealand
- London Commodity Brokers - England
- Directorate Of Revenue Intelligence - India
- TeaM Sual Corporation - Philippines
- Global Business Power Corporation, Philippines
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- Indika Energy - Indonesia
- MS Steel International - UAE
- Baramulti Group, Indonesia
- Agrawal Coal Company - India
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- GN Power Mariveles Coal Plant, Philippines
- Sarangani Energy Corporation, Philippines
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- Kartika Selabumi Mining - Indonesia
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- Asmin Koalindo Tuhup - Indonesia
- Coalindo Energy - Indonesia
- Oldendorff Carriers - Singapore
- Jaiprakash Power Ventures ltd
- Ministry of Mines - Canada
- Heidelberg Cement - Germany
- Uttam Galva Steels Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Bank of Tokyo Mitsubishi UFJ Ltd
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- Billiton Holdings Pty Ltd - Australia
- Kobexindo Tractors - Indoneisa
- Port Waratah Coal Services - Australia
- Coastal Gujarat Power Limited - India
- Siam City Cement - Thailand
- Metalloyd Limited - United Kingdom
- Timah Investasi Mineral - Indoneisa
- Intertek Mineral Services - Indonesia
- Leighton Contractors Pty Ltd - Australia
- White Energy Company Limited
- AsiaOL BioFuels Corp., Philippines
- Vedanta Resources Plc - India
- Antam Resourcindo - Indonesia
- Thiess Contractors Indonesia
- Independent Power Producers Association of India
- Mjunction Services Limited - India
- Wood Mackenzie - Singapore
- Krishnapatnam Port Company Ltd. - India
- Makarim & Taira - Indonesia
- GVK Power & Infra Limited - India
- Binh Thuan Hamico - Vietnam
- Georgia Ports Authority, United States
- Indogreen Group - Indonesia
- Central Electricity Authority - India
- Chettinad Cement Corporation Ltd - India
- Formosa Plastics Group - Taiwan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ministry of Transport, Egypt
- Mercuria Energy - Indonesia
- Electricity Authority, New Zealand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Maheswari Brothers Coal Limited - India
- Sojitz Corporation - Japan
- Holcim Trading Pte Ltd - Singapore
- IHS Mccloskey Coal Group - USA
- Iligan Light & Power Inc, Philippines
- Bangladesh Power Developement Board
- Interocean Group of Companies - India
- Wilmar Investment Holdings
- Attock Cement Pakistan Limited
- Siam City Cement PLC, Thailand
- Jindal Steel & Power Ltd - India
- Karaikal Port Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Commonwealth Bank - Australia
- Larsen & Toubro Limited - India
- Central Java Power - Indonesia
- GAC Shipping (India) Pvt Ltd
- Gujarat Sidhee Cement - India
- CIMB Investment Bank - Malaysia
- Global Coal Blending Company Limited - Australia
- Kumho Petrochemical, South Korea
- Ceylon Electricity Board - Sri Lanka
- Planning Commission, India
- Ind-Barath Power Infra Limited - India
- Bukit Makmur.PT - Indonesia
- CNBM International Corporation - China
- India Bulls Power Limited - India
- The State Trading Corporation of India Ltd
- Samtan Co., Ltd - South Korea
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- Thai Mozambique Logistica
- Kapuas Tunggal Persada - Indonesia
- South Luzon Thermal Energy Corporation
- Orica Australia Pty. Ltd.
- Therma Luzon, Inc, Philippines
- Bharathi Cement Corporation - India
- McConnell Dowell - Australia
- Directorate General of MIneral and Coal - Indonesia
- Chamber of Mines of South Africa
- Global Green Power PLC Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- OPG Power Generation Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Kepco SPC Power Corporation, Philippines
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- Rashtriya Ispat Nigam Limited - India
- ICICI Bank Limited - India
- Petron Corporation, Philippines
- Xindia Steels Limited - India
- Dalmia Cement Bharat India
- Bulk Trading Sa - Switzerland
- VISA Power Limited - India
- Eastern Coal Council - USA
- Australian Commodity Traders Exchange
- Energy Link Ltd, New Zealand
- Semirara Mining Corp, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Bhatia International Limited - India
- Cigading International Bulk Terminal - Indonesia
- Singapore Mercantile Exchange
- Aditya Birla Group - India
- Aboitiz Power Corporation - Philippines
- Indonesian Coal Mining Association
- Tata Chemicals Ltd - India
- Sinarmas Energy and Mining - Indonesia
- SN Aboitiz Power Inc, Philippines
- Trasteel International SA, Italy
- Eastern Energy - Thailand
- IEA Clean Coal Centre - UK
- PowerSource Philippines DevCo
- Power Finance Corporation Ltd., India
- Price Waterhouse Coopers - Russia
- Malabar Cements Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Meralco Power Generation, Philippines
- Manunggal Multi Energi - Indonesia
- Standard Chartered Bank - UAE
- Bhoruka Overseas - Indonesia
- The University of Queensland
- International Coal Ventures Pvt Ltd - India
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