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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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Friday, 10 November 17
U.S. COAL OUTPUT FOR THE FIRST 10 MONTHS OF 2017 IS ESTIMATED AT AROUND 656 MMST; UP10% YOY - EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 15 million short tons ...
Wednesday, 08 November 17
COAL MARKETS WERE MIXED; COKING COAL EKING OUT SOME GAINS; THERMAL COAL STRUGGLING - DANIEL HYNES
Coal markets were mixed, with coking coal eking out some gains, while thermal coal struggled amid the falling oil prices, ANZ Strategist said in a ...
Wednesday, 08 November 17
WEEKLY SHIPPING MARKET INSIGHT
If you are a dry bulk owner today you are definitely feeling the pressure of the past couple of years off and given the admittedly unexpected growt ...
Wednesday, 08 November 17
NEW QUAY OPENED AT THE INDUSTRIAL PORT IN BREMEN,GERMAN
Press Release: After a building period lasting three-and-a-half years, the port logistics firm Weserport, the “bremenports” comp ...
Tuesday, 07 November 17
ING JOINS FORCES ON BLOCKCHAIN-BASED PLATFORM FOR ENERGY COMMODITIES SECTOR
Blockchain technology. It’s often been described as the most important invention in computing in a generation.
So it should come as no s ...
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Showing 1886 to 1890 news of total 6871 |
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- CIMB Investment Bank - Malaysia
- Minerals Council of Australia
- Asmin Koalindo Tuhup - Indonesia
- Chamber of Mines of South Africa
- Madhucon Powers Ltd - India
- Edison Trading Spa - Italy
- The Treasury - Australian Government
- Indogreen Group - Indonesia
- Orica Australia Pty. Ltd.
- Billiton Holdings Pty Ltd - Australia
- Coastal Gujarat Power Limited - India
- Latin American Coal - Colombia
- GAC Shipping (India) Pvt Ltd
- PowerSource Philippines DevCo
- Attock Cement Pakistan Limited
- Ministry of Finance - Indonesia
- Parry Sugars Refinery, India
- Dalmia Cement Bharat India
- Krishnapatnam Port Company Ltd. - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Malabar Cements Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Bhushan Steel Limited - India
- Energy Link Ltd, New Zealand
- CNBM International Corporation - China
- Indo Tambangraya Megah - Indonesia
- Directorate Of Revenue Intelligence - India
- Vizag Seaport Private Limited - India
- Bangladesh Power Developement Board
- Chettinad Cement Corporation Ltd - India
- PTC India Limited - India
- Mercator Lines Limited - India
- Antam Resourcindo - Indonesia
- Kumho Petrochemical, South Korea
- Eastern Energy - Thailand
- McConnell Dowell - Australia
- Global Business Power Corporation, Philippines
- Marubeni Corporation - India
- Kartika Selabumi Mining - Indonesia
- European Bulk Services B.V. - Netherlands
- Kohat Cement Company Ltd. - Pakistan
- Makarim & Taira - Indonesia
- Romanian Commodities Exchange
- Grasim Industreis Ltd - India
- Ministry of Mines - Canada
- Siam City Cement - Thailand
- Uttam Galva Steels Limited - India
- International Coal Ventures Pvt Ltd - India
- Parliament of New Zealand
- Price Waterhouse Coopers - Russia
- Indian Energy Exchange, India
- Meenaskhi Energy Private Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Toyota Tsusho Corporation, Japan
- Bayan Resources Tbk. - Indonesia
- Vedanta Resources Plc - India
- Australian Commodity Traders Exchange
- South Luzon Thermal Energy Corporation
- Gujarat Sidhee Cement - India
- Cement Manufacturers Association - India
- GVK Power & Infra Limited - India
- Altura Mining Limited, Indonesia
- Barasentosa Lestari - Indonesia
- Africa Commodities Group - South Africa
- Iligan Light & Power Inc, Philippines
- Formosa Plastics Group - Taiwan
- Agrawal Coal Company - India
- PetroVietnam Power Coal Import and Supply Company
- Georgia Ports Authority, United States
- Baramulti Group, Indonesia
- Australian Coal Association
- Holcim Trading Pte Ltd - Singapore
- Global Coal Blending Company Limited - Australia
- Carbofer General Trading SA - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Binh Thuan Hamico - Vietnam
- GMR Energy Limited - India
- Deloitte Consulting - India
- Jaiprakash Power Ventures ltd
- Jindal Steel & Power Ltd - India
- Posco Energy - South Korea
- Mercuria Energy - Indonesia
- Petron Corporation, Philippines
- Aditya Birla Group - India
- IHS Mccloskey Coal Group - USA
- AsiaOL BioFuels Corp., Philippines
- The State Trading Corporation of India Ltd
- Bharathi Cement Corporation - India
- GN Power Mariveles Coal Plant, Philippines
- Merrill Lynch Commodities Europe
- Bank of Tokyo Mitsubishi UFJ Ltd
- MS Steel International - UAE
- Star Paper Mills Limited - India
- Manunggal Multi Energi - Indonesia
- Sical Logistics Limited - India
- Cigading International Bulk Terminal - Indonesia
- San Jose City I Power Corp, Philippines
- Planning Commission, India
- Sojitz Corporation - Japan
- Indian Oil Corporation Limited
- Wilmar Investment Holdings
- Vijayanagar Sugar Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Power Finance Corporation Ltd., India
- Globalindo Alam Lestari - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Interocean Group of Companies - India
- India Bulls Power Limited - India
- Mintek Dendrill Indonesia
- Samtan Co., Ltd - South Korea
- Thiess Contractors Indonesia
- SMG Consultants - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Ambuja Cements Ltd - India
- Meralco Power Generation, Philippines
- London Commodity Brokers - England
- Kalimantan Lumbung Energi - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Anglo American - United Kingdom
- Leighton Contractors Pty Ltd - Australia
- Central Electricity Authority - India
- VISA Power Limited - India
- Karbindo Abesyapradhi - Indoneisa
- ICICI Bank Limited - India
- Heidelberg Cement - Germany
- Tata Chemicals Ltd - India
- Sree Jayajothi Cements Limited - India
- IEA Clean Coal Centre - UK
- Electricity Authority, New Zealand
- Maharashtra Electricity Regulatory Commission - India
- Coal and Oil Company - UAE
- Ceylon Electricity Board - Sri Lanka
- Karaikal Port Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Coalindo Energy - Indonesia
- Bukit Makmur.PT - Indonesia
- Indika Energy - Indonesia
- Videocon Industries ltd - India
- OPG Power Generation Pvt Ltd - India
- New Zealand Coal & Carbon
- Trasteel International SA, Italy
- Essar Steel Hazira Ltd - India
- Timah Investasi Mineral - Indoneisa
- Bhoruka Overseas - Indonesia
- Global Green Power PLC Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Therma Luzon, Inc, Philippines
- Wood Mackenzie - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Banpu Public Company Limited - Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Goldman Sachs - Singapore
- Economic Council, Georgia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sakthi Sugars Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Xindia Steels Limited - India
- Medco Energi Mining Internasional
- Thai Mozambique Logistica
- Sinarmas Energy and Mining - Indonesia
- Oldendorff Carriers - Singapore
- Bhatia International Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Renaissance Capital - South Africa
- Standard Chartered Bank - UAE
- Simpson Spence & Young - Indonesia
- ASAPP Information Group - India
- TeaM Sual Corporation - Philippines
- Borneo Indobara - Indonesia
- Lanco Infratech Ltd - India
- Salva Resources Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Independent Power Producers Association of India
- Singapore Mercantile Exchange
- Orica Mining Services - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- LBH Netherlands Bv - Netherlands
- Ministry of Transport, Egypt
- Semirara Mining Corp, Philippines
- Aboitiz Power Corporation - Philippines
- Riau Bara Harum - Indonesia
- Energy Development Corp, Philippines
- Bulk Trading Sa - Switzerland
- Larsen & Toubro Limited - India
- Indonesian Coal Mining Association
- Kepco SPC Power Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Mjunction Services Limited - India
- Intertek Mineral Services - Indonesia
- Rashtriya Ispat Nigam Limited - India
- The University of Queensland
- Kapuas Tunggal Persada - Indonesia
- Rio Tinto Coal - Australia
- PNOC Exploration Corporation - Philippines
- Eastern Coal Council - USA
- SN Aboitiz Power Inc, Philippines
- SMC Global Power, Philippines
- Tamil Nadu electricity Board
- Sindya Power Generating Company Private Ltd
- Maheswari Brothers Coal Limited - India
- Commonwealth Bank - Australia
- Metalloyd Limited - United Kingdom
- Directorate General of MIneral and Coal - Indonesia
- Kobexindo Tractors - Indoneisa
- Straits Asia Resources Limited - Singapore
- Ind-Barath Power Infra Limited - India
- Kideco Jaya Agung - Indonesia
- Kaltim Prima Coal - Indonesia
- Central Java Power - Indonesia
- Savvy Resources Ltd - HongKong
- Port Waratah Coal Services - Australia
- Bukit Baiduri Energy - Indonesia
- Electricity Generating Authority of Thailand
- White Energy Company Limited
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