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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, 21 February 18
SHIPPING MARKET INSIGHT - KONSTANTINOS KONTOMICHIS
2017 proved to be a relatively good year with positive margins for the Dry Bulk market. Especially during the last quarter of the year everyone can ...
Tuesday, 20 February 18
INDIA: COAL IMPORT RISES BY 12 PER CENT TO 18 MILLION TONNES IN JANUARY - PTI
The country’s coal import increased by 12.4 per cent to 18.49 million tonnes (MT) in January, against 16.
44 MT in the same month of the ...
Monday, 19 February 18
JOINT INSURANCE - WHY SHOULD YOU CARE? - SKULD
KNOWLEDGE TO ELEVATE
It is neither controversial nor new to say that co-assureds under a joint insurance policy cannot claim against each othe ...
Friday, 16 February 18
U.S. WEEKLY COAL OUTPUT DOWN 4.5 PER CENT WEEK OVER WEEK, EIA DATA SHOWS
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totaled an estimated 15.2 million short tons ...
Thursday, 15 February 18
INDIA: THERMAL POWER PLANTS UNDER STRESS ON RISING COAL, FREIGHT COSTS - BUSINESS STANDARD
Coal-based power plants are feeling the heat of spike in thermal grade coal prices and railway freight costs.
Prices of thermal grade coal sin ...
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- AsiaOL BioFuels Corp., Philippines
- Independent Power Producers Association of India
- Malabar Cements Ltd - India
- Aboitiz Power Corporation - Philippines
- Gujarat Sidhee Cement - India
- Petrochimia International Co. Ltd.- Taiwan
- Maharashtra Electricity Regulatory Commission - India
- European Bulk Services B.V. - Netherlands
- Samtan Co., Ltd - South Korea
- Holcim Trading Pte Ltd - Singapore
- Kideco Jaya Agung - Indonesia
- Tata Chemicals Ltd - India
- Deloitte Consulting - India
- SN Aboitiz Power Inc, Philippines
- SMC Global Power, Philippines
- Essar Steel Hazira Ltd - India
- Indian Oil Corporation Limited
- Karbindo Abesyapradhi - Indoneisa
- OPG Power Generation Pvt Ltd - India
- Xindia Steels Limited - India
- Siam City Cement - Thailand
- Billiton Holdings Pty Ltd - Australia
- Gujarat Mineral Development Corp Ltd - India
- Wilmar Investment Holdings
- Jorong Barutama Greston.PT - Indonesia
- White Energy Company Limited
- Indogreen Group - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Indian Energy Exchange, India
- LBH Netherlands Bv - Netherlands
- Madhucon Powers Ltd - India
- Krishnapatnam Port Company Ltd. - India
- PTC India Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Timah Investasi Mineral - Indoneisa
- Ministry of Mines - Canada
- Trasteel International SA, Italy
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Jaiprakash Power Ventures ltd
- Attock Cement Pakistan Limited
- Medco Energi Mining Internasional
- Thiess Contractors Indonesia
- GAC Shipping (India) Pvt Ltd
- Meenaskhi Energy Private Limited - India
- Kepco SPC Power Corporation, Philippines
- Carbofer General Trading SA - India
- Interocean Group of Companies - India
- Standard Chartered Bank - UAE
- Latin American Coal - Colombia
- Alfred C Toepfer International GmbH - Germany
- Australian Commodity Traders Exchange
- Sical Logistics Limited - India
- Chettinad Cement Corporation Ltd - India
- Bhoruka Overseas - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Edison Trading Spa - Italy
- Heidelberg Cement - Germany
- Pendopo Energi Batubara - Indonesia
- Singapore Mercantile Exchange
- Maheswari Brothers Coal Limited - India
- Vedanta Resources Plc - India
- The State Trading Corporation of India Ltd
- Directorate General of MIneral and Coal - Indonesia
- Commonwealth Bank - Australia
- Savvy Resources Ltd - HongKong
- Orica Australia Pty. Ltd.
- IEA Clean Coal Centre - UK
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Petron Corporation, Philippines
- Indonesian Coal Mining Association
- Bulk Trading Sa - Switzerland
- Bukit Makmur.PT - Indonesia
- GMR Energy Limited - India
- Therma Luzon, Inc, Philippines
- Global Business Power Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Sarangani Energy Corporation, Philippines
- San Jose City I Power Corp, Philippines
- Ambuja Cements Ltd - India
- MS Steel International - UAE
- Price Waterhouse Coopers - Russia
- Goldman Sachs - Singapore
- Posco Energy - South Korea
- Pipit Mutiara Jaya. PT, Indonesia
- Tamil Nadu electricity Board
- South Luzon Thermal Energy Corporation
- Parliament of New Zealand
- Merrill Lynch Commodities Europe
- Oldendorff Carriers - Singapore
- Coal and Oil Company - UAE
- Chamber of Mines of South Africa
- Energy Link Ltd, New Zealand
- Barasentosa Lestari - Indonesia
- TeaM Sual Corporation - Philippines
- Sojitz Corporation - Japan
- Dalmia Cement Bharat India
- Eastern Coal Council - USA
- Ind-Barath Power Infra Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Jindal Steel & Power Ltd - India
- Bangladesh Power Developement Board
- Mercuria Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Thai Mozambique Logistica
- International Coal Ventures Pvt Ltd - India
- Baramulti Group, Indonesia
- Planning Commission, India
- Vijayanagar Sugar Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- ASAPP Information Group - India
- Eastern Energy - Thailand
- Electricity Generating Authority of Thailand
- Bhushan Steel Limited - India
- Ministry of Transport, Egypt
- Bharathi Cement Corporation - India
- Energy Development Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Metalloyd Limited - United Kingdom
- Central Java Power - Indonesia
- London Commodity Brokers - England
- Miang Besar Coal Terminal - Indonesia
- Iligan Light & Power Inc, Philippines
- Bhatia International Limited - India
- CNBM International Corporation - China
- Borneo Indobara - Indonesia
- Straits Asia Resources Limited - Singapore
- Kartika Selabumi Mining - Indonesia
- Directorate Of Revenue Intelligence - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- GN Power Mariveles Coal Plant, Philippines
- SMG Consultants - Indonesia
- Global Coal Blending Company Limited - Australia
- Meralco Power Generation, Philippines
- Mercator Lines Limited - India
- Wood Mackenzie - Singapore
- Electricity Authority, New Zealand
- Kumho Petrochemical, South Korea
- Kobexindo Tractors - Indoneisa
- CIMB Investment Bank - Malaysia
- Australian Coal Association
- Neyveli Lignite Corporation Ltd, - India
- Cement Manufacturers Association - India
- Globalindo Alam Lestari - Indonesia
- India Bulls Power Limited - India
- Economic Council, Georgia
- Lanco Infratech Ltd - India
- Orica Mining Services - Indonesia
- The Treasury - Australian Government
- Agrawal Coal Company - India
- Mintek Dendrill Indonesia
- Romanian Commodities Exchange
- Mjunction Services Limited - India
- Sinarmas Energy and Mining - Indonesia
- PNOC Exploration Corporation - Philippines
- Altura Mining Limited, Indonesia
- VISA Power Limited - India
- Anglo American - United Kingdom
- Gujarat Electricity Regulatory Commission - India
- Semirara Mining and Power Corporation, Philippines
- Parry Sugars Refinery, India
- PetroVietnam Power Coal Import and Supply Company
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sakthi Sugars Limited - India
- Minerals Council of Australia
- Renaissance Capital - South Africa
- Ceylon Electricity Board - Sri Lanka
- Vizag Seaport Private Limited - India
- Makarim & Taira - Indonesia
- Intertek Mineral Services - Indonesia
- New Zealand Coal & Carbon
- Formosa Plastics Group - Taiwan
- Aditya Birla Group - India
- Bukit Baiduri Energy - Indonesia
- PowerSource Philippines DevCo
- Manunggal Multi Energi - Indonesia
- Sindya Power Generating Company Private Ltd
- Indo Tambangraya Megah - Indonesia
- McConnell Dowell - Australia
- Sree Jayajothi Cements Limited - India
- Uttam Galva Steels Limited - India
- Antam Resourcindo - Indonesia
- Larsen & Toubro Limited - India
- Marubeni Corporation - India
- Salva Resources Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Ministry of Finance - Indonesia
- Riau Bara Harum - Indonesia
- Star Paper Mills Limited - India
- Grasim Industreis Ltd - India
- Coalindo Energy - Indonesia
- Global Green Power PLC Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Semirara Mining Corp, Philippines
- Power Finance Corporation Ltd., India
- GVK Power & Infra Limited - India
- Port Waratah Coal Services - Australia
- Kapuas Tunggal Persada - Indonesia
- Coastal Gujarat Power Limited - India
- Videocon Industries ltd - India
- Central Electricity Authority - India
- Indika Energy - Indonesia
- Georgia Ports Authority, United States
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Rio Tinto Coal - Australia
- ICICI Bank Limited - India
- Karaikal Port Pvt Ltd - India
- The University of Queensland
- Toyota Tsusho Corporation, Japan
- Binh Thuan Hamico - Vietnam
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bayan Resources Tbk. - Indonesia
- Africa Commodities Group - South Africa
- Siam City Cement PLC, Thailand
- Banpu Public Company Limited - Thailand
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