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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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Thursday, 12 April 18
ALWAYS ACCESSIBLE
KNOWLEDGE TO ELEVATE
On 26 March 2018 Mr Justice Knowles determined that the berth warranty ‘always accessible’ must mean the vess ...
Wednesday, 11 April 18
CHINA UTILITIES PLAN NEW COAL IMPORT PRICE INDEX TO CURB VOLATILITY - REUTERS
China’s major utilities are preparing to launch their own coal price index for imports, an official at China Huaneng Group said, in a move th ...
Wednesday, 11 April 18
US-CHINA TARIFF THREATS RAISE GLOBAL TRADE RISKS - FITCH
Escalating tariff proposals by the U.S. and Chinese governments are increasing the risks of a full-blown trade war, says Fitch Ratings. The most li ...
Tuesday, 10 April 18
BUMA GRANTED ADDITIONAL LOAN FACILITY FROM BTMU TO SUPPORT GROWTH
Press Release: PT Delta Dunia Makmur Tbk. is pleased to announce that its subsidiary, PT Bukit Makmur Mandiri Utama ("BUMA"), signed an a ...
Monday, 09 April 18
APRIL INDONESIAN COAL PRICE REFERENCE DROPS TO LOWEST IN 2018
COALspot.com: According to latest ministerial decree, the Indonesian Coal Price Reference (HBA) decline 6.98 per cent in April 2018 compared to Mar ...
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- Makarim & Taira - Indonesia
- The State Trading Corporation of India Ltd
- Borneo Indobara - Indonesia
- Directorate Of Revenue Intelligence - India
- Bukit Makmur.PT - Indonesia
- Carbofer General Trading SA - India
- Samtan Co., Ltd - South Korea
- Indian Energy Exchange, India
- LBH Netherlands Bv - Netherlands
- Oldendorff Carriers - Singapore
- Krishnapatnam Port Company Ltd. - India
- ASAPP Information Group - India
- GN Power Mariveles Coal Plant, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Sojitz Corporation - Japan
- Formosa Plastics Group - Taiwan
- Kalimantan Lumbung Energi - Indonesia
- Mintek Dendrill Indonesia
- San Jose City I Power Corp, Philippines
- Indika Energy - Indonesia
- Parliament of New Zealand
- Sree Jayajothi Cements Limited - India
- Minerals Council of Australia
- Rio Tinto Coal - Australia
- Ministry of Finance - Indonesia
- Essar Steel Hazira Ltd - India
- Deloitte Consulting - India
- Kepco SPC Power Corporation, Philippines
- Australian Coal Association
- GMR Energy Limited - India
- Global Green Power PLC Corporation, Philippines
- SMG Consultants - Indonesia
- Posco Energy - South Korea
- Kideco Jaya Agung - Indonesia
- Altura Mining Limited, Indonesia
- Vizag Seaport Private Limited - India
- CIMB Investment Bank - Malaysia
- PowerSource Philippines DevCo
- London Commodity Brokers - England
- Thai Mozambique Logistica
- Bulk Trading Sa - Switzerland
- Independent Power Producers Association of India
- Uttam Galva Steels Limited - India
- Eastern Coal Council - USA
- Commonwealth Bank - Australia
- Binh Thuan Hamico - Vietnam
- IEA Clean Coal Centre - UK
- Ceylon Electricity Board - Sri Lanka
- Indogreen Group - Indonesia
- Larsen & Toubro Limited - India
- Mercator Lines Limited - India
- Barasentosa Lestari - Indonesia
- Ind-Barath Power Infra Limited - India
- Baramulti Group, Indonesia
- Anglo American - United Kingdom
- Central Java Power - Indonesia
- Siam City Cement - Thailand
- Petrochimia International Co. Ltd.- Taiwan
- European Bulk Services B.V. - Netherlands
- Price Waterhouse Coopers - Russia
- Maharashtra Electricity Regulatory Commission - India
- Therma Luzon, Inc, Philippines
- Karaikal Port Pvt Ltd - India
- Georgia Ports Authority, United States
- Bahari Cakrawala Sebuku - Indonesia
- Coal and Oil Company - UAE
- Bukit Baiduri Energy - Indonesia
- GVK Power & Infra Limited - India
- Meralco Power Generation, Philippines
- Tata Chemicals Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Africa Commodities Group - South Africa
- Pipit Mutiara Jaya. PT, Indonesia
- Dalmia Cement Bharat India
- Holcim Trading Pte Ltd - Singapore
- Indian Oil Corporation Limited
- Antam Resourcindo - Indonesia
- New Zealand Coal & Carbon
- Offshore Bulk Terminal Pte Ltd, Singapore
- Wilmar Investment Holdings
- Malabar Cements Ltd - India
- International Coal Ventures Pvt Ltd - India
- Videocon Industries ltd - India
- Orica Australia Pty. Ltd.
- Vedanta Resources Plc - India
- Kartika Selabumi Mining - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Bhushan Steel Limited - India
- Central Electricity Authority - India
- Neyveli Lignite Corporation Ltd, - India
- Banpu Public Company Limited - Thailand
- Mjunction Services Limited - India
- Indo Tambangraya Megah - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Bharathi Cement Corporation - India
- Karbindo Abesyapradhi - Indoneisa
- Bhoruka Overseas - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Sarangani Energy Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Ambuja Cements Ltd - India
- Straits Asia Resources Limited - Singapore
- Tamil Nadu electricity Board
- Trasteel International SA, Italy
- OPG Power Generation Pvt Ltd - India
- PTC India Limited - India
- Medco Energi Mining Internasional
- White Energy Company Limited
- Jorong Barutama Greston.PT - Indonesia
- TeaM Sual Corporation - Philippines
- MS Steel International - UAE
- Semirara Mining and Power Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Thiess Contractors Indonesia
- Kumho Petrochemical, South Korea
- Globalindo Alam Lestari - Indonesia
- Simpson Spence & Young - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Attock Cement Pakistan Limited
- Sindya Power Generating Company Private Ltd
- Parry Sugars Refinery, India
- Ministry of Mines - Canada
- Singapore Mercantile Exchange
- Goldman Sachs - Singapore
- Orica Mining Services - Indonesia
- Semirara Mining Corp, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Port Waratah Coal Services - Australia
- Chettinad Cement Corporation Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- CNBM International Corporation - China
- Alfred C Toepfer International GmbH - Germany
- McConnell Dowell - Australia
- Global Business Power Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- Interocean Group of Companies - India
- VISA Power Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Timah Investasi Mineral - Indoneisa
- Energy Development Corp, Philippines
- The University of Queensland
- GAC Shipping (India) Pvt Ltd
- Toyota Tsusho Corporation, Japan
- Cement Manufacturers Association - India
- Mercuria Energy - Indonesia
- Lanco Infratech Ltd - India
- Salva Resources Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Siam City Cement PLC, Thailand
- Manunggal Multi Energi - Indonesia
- Bangladesh Power Developement Board
- India Bulls Power Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Coalindo Energy - Indonesia
- Energy Link Ltd, New Zealand
- Jindal Steel & Power Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Economic Council, Georgia
- Sakthi Sugars Limited - India
- Merrill Lynch Commodities Europe
- Power Finance Corporation Ltd., India
- Riau Bara Harum - Indonesia
- Savvy Resources Ltd - HongKong
- The Treasury - Australian Government
- Heidelberg Cement - Germany
- Intertek Mineral Services - Indonesia
- Standard Chartered Bank - UAE
- Xindia Steels Limited - India
- IHS Mccloskey Coal Group - USA
- Iligan Light & Power Inc, Philippines
- Planning Commission, India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- South Luzon Thermal Energy Corporation
- Ministry of Transport, Egypt
- Sical Logistics Limited - India
- Jaiprakash Power Ventures ltd
- Miang Besar Coal Terminal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Madhucon Powers Ltd - India
- Agrawal Coal Company - India
- Latin American Coal - Colombia
- Aditya Birla Group - India
- Wood Mackenzie - Singapore
- Maheswari Brothers Coal Limited - India
- ICICI Bank Limited - India
- Edison Trading Spa - Italy
- Marubeni Corporation - India
- Petron Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Eastern Energy - Thailand
- Electricity Authority, New Zealand
- PNOC Exploration Corporation - Philippines
- Global Coal Blending Company Limited - Australia
- Romanian Commodities Exchange
- Grasim Industreis Ltd - India
- Bhatia International Limited - India
- AsiaOL BioFuels Corp., Philippines
- Indonesian Coal Mining Association
- SMC Global Power, Philippines
- Coastal Gujarat Power Limited - India
- Bayan Resources Tbk. - Indonesia
- Kaltim Prima Coal - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Meenaskhi Energy Private Limited - India
- Renaissance Capital - South Africa
- Gujarat Sidhee Cement - India
- Electricity Generating Authority of Thailand
- Australian Commodity Traders Exchange
- SN Aboitiz Power Inc, Philippines
- Star Paper Mills Limited - India
- Chamber of Mines of South Africa
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