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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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Monday, 06 November 17
MARINE BUNKER EXCHANGE EXPECTS BUNKER PRICES WILL CONTINUE UPWARD TREND NEXT WEEK
World fuel indexes rose during the week, supported by main oil producers’ statements about possible extension of oil production cut agreement ...
Monday, 06 November 17
THE THERMAL COAL MARKET CAME UNDER SOME PRESSURE AS THE OUTLOOK FOR DEMAND WEAKENED - DANIEL HYNES
Commodities were mixed as investors grappled with a revised tax plan in the US amid a rising USD said Daniel Hynes in his linked in post.
Acco ...
Monday, 06 November 17
THE FREIGHT MARKET WAS CONTINUED TO SOFTEN THIS PAST WEEK; BCI DOWN 184 POINT WEEK OVER WEEK
COALspot.com: The freight market was continued to soften this past week compared to the previous week, as BDI and all segments except Panamax index ...
Friday, 03 November 17
U.S. COAL PRODUCTION FELL WEEK-OVER-WEEK, EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 14.5 million short ton ...
Wednesday, 01 November 17
SHIPPING MARKET INSIGHT - KONSTANTINOS KONTOMICHIS
As it was expected, the strong dry bulk freight market of the past couple of months has inspired similar activity in the second-hand market. Noneth ...
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Showing 1896 to 1900 news of total 6871 |
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- Holcim Trading Pte Ltd - Singapore
- Australian Coal Association
- Mintek Dendrill Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Edison Trading Spa - Italy
- Samtan Co., Ltd - South Korea
- Indo Tambangraya Megah - Indonesia
- Rio Tinto Coal - Australia
- Aditya Birla Group - India
- IEA Clean Coal Centre - UK
- Minerals Council of Australia
- Makarim & Taira - Indonesia
- SMC Global Power, Philippines
- The Treasury - Australian Government
- Cigading International Bulk Terminal - Indonesia
- New Zealand Coal & Carbon
- Kapuas Tunggal Persada - Indonesia
- Chettinad Cement Corporation Ltd - India
- PTC India Limited - India
- Jaiprakash Power Ventures ltd
- GMR Energy Limited - India
- CIMB Investment Bank - Malaysia
- Agrawal Coal Company - India
- Star Paper Mills Limited - India
- Billiton Holdings Pty Ltd - Australia
- Sinarmas Energy and Mining - Indonesia
- Formosa Plastics Group - Taiwan
- Australian Commodity Traders Exchange
- Antam Resourcindo - Indonesia
- Videocon Industries ltd - India
- Coal and Oil Company - UAE
- Parry Sugars Refinery, India
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- Orica Australia Pty. Ltd.
- Renaissance Capital - South Africa
- Barasentosa Lestari - Indonesia
- Coalindo Energy - Indonesia
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- Mercuria Energy - Indonesia
- Sakthi Sugars Limited - India
- Siam City Cement PLC, Thailand
- Independent Power Producers Association of India
- Heidelberg Cement - Germany
- TeaM Sual Corporation - Philippines
- Globalindo Alam Lestari - Indonesia
- Attock Cement Pakistan Limited
- LBH Netherlands Bv - Netherlands
- Tata Chemicals Ltd - India
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- Lanco Infratech Ltd - India
- Energy Development Corp, Philippines
- Thiess Contractors Indonesia
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- Bulk Trading Sa - Switzerland
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- Indian Oil Corporation Limited
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- Global Green Power PLC Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Central Electricity Authority - India
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- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Madhucon Powers Ltd - India
- Goldman Sachs - Singapore
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- AsiaOL BioFuels Corp., Philippines
- Alfred C Toepfer International GmbH - Germany
- South Luzon Thermal Energy Corporation
- Mercator Lines Limited - India
- Mjunction Services Limited - India
- Kepco SPC Power Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Posco Energy - South Korea
- VISA Power Limited - India
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- Pendopo Energi Batubara - Indonesia
- Petron Corporation, Philippines
- Deloitte Consulting - India
- GN Power Mariveles Coal Plant, Philippines
- Vedanta Resources Plc - India
- Indian Energy Exchange, India
- Binh Thuan Hamico - Vietnam
- Kobexindo Tractors - Indoneisa
- Ministry of Finance - Indonesia
- Jindal Steel & Power Ltd - India
- Maheswari Brothers Coal Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Sindya Power Generating Company Private Ltd
- Electricity Generating Authority of Thailand
- McConnell Dowell - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- SN Aboitiz Power Inc, Philippines
- Vizag Seaport Private Limited - India
- Africa Commodities Group - South Africa
- GVK Power & Infra Limited - India
- Carbofer General Trading SA - India
- Parliament of New Zealand
- Tamil Nadu electricity Board
- Ministry of Transport, Egypt
- Semirara Mining and Power Corporation, Philippines
- Oldendorff Carriers - Singapore
- Kumho Petrochemical, South Korea
- Medco Energi Mining Internasional
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- Sarangani Energy Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Vijayanagar Sugar Pvt Ltd - India
- Cement Manufacturers Association - India
- Baramulti Group, Indonesia
- ASAPP Information Group - India
- Manunggal Multi Energi - Indonesia
- Bukit Baiduri Energy - Indonesia
- The State Trading Corporation of India Ltd
- Electricity Authority, New Zealand
- Simpson Spence & Young - Indonesia
- Altura Mining Limited, Indonesia
- Bangladesh Power Developement Board
- Bhushan Steel Limited - India
- Eastern Energy - Thailand
- European Bulk Services B.V. - Netherlands
- Singapore Mercantile Exchange
- Indonesian Coal Mining Association
- Chamber of Mines of South Africa
- Jorong Barutama Greston.PT - Indonesia
- Price Waterhouse Coopers - Russia
- Iligan Light & Power Inc, Philippines
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- Dr Ramakrishna Prasad Power Pvt Ltd - India
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- Offshore Bulk Terminal Pte Ltd, Singapore
- Metalloyd Limited - United Kingdom
- Eastern Coal Council - USA
- ICICI Bank Limited - India
- International Coal Ventures Pvt Ltd - India
- MS Steel International - UAE
- Gujarat Mineral Development Corp Ltd - India
- Wilmar Investment Holdings
- Sical Logistics Limited - India
- Banpu Public Company Limited - Thailand
- Commonwealth Bank - Australia
- Uttam Galva Steels Limited - India
- Bhoruka Overseas - Indonesia
- Ind-Barath Power Infra Limited - India
- Anglo American - United Kingdom
- Miang Besar Coal Terminal - Indonesia
- Directorate Of Revenue Intelligence - India
- India Bulls Power Limited - India
- Sree Jayajothi Cements Limited - India
- Kaltim Prima Coal - Indonesia
- Grasim Industreis Ltd - India
- Riau Bara Harum - Indonesia
- The University of Queensland
- PNOC Exploration Corporation - Philippines
- Power Finance Corporation Ltd., India
- OPG Power Generation Pvt Ltd - India
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- Global Coal Blending Company Limited - Australia
- Economic Council, Georgia
- Global Business Power Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Salva Resources Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Ceylon Electricity Board - Sri Lanka
- Borneo Indobara - Indonesia
- Standard Chartered Bank - UAE
- Energy Link Ltd, New Zealand
- Ministry of Mines - Canada
- Coastal Gujarat Power Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Romanian Commodities Exchange
- London Commodity Brokers - England
- Wood Mackenzie - Singapore
- Therma Luzon, Inc, Philippines
- Merrill Lynch Commodities Europe
- Semirara Mining Corp, Philippines
- Xindia Steels Limited - India
- IHS Mccloskey Coal Group - USA
- Marubeni Corporation - India
- Siam City Cement - Thailand
- Bayan Resources Tbk. - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Bhatia International Limited - India
- San Jose City I Power Corp, Philippines
- Georgia Ports Authority, United States
- Orica Mining Services - Indonesia
- Sojitz Corporation - Japan
- SMG Consultants - Indonesia
- Bharathi Cement Corporation - India
- Meralco Power Generation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Pipit Mutiara Jaya. PT, Indonesia
- GAC Shipping (India) Pvt Ltd
- Rashtriya Ispat Nigam Limited - India
- Port Waratah Coal Services - Australia
- White Energy Company Limited
- Asmin Koalindo Tuhup - Indonesia
- Planning Commission, India
- Dalmia Cement Bharat India
- Essar Steel Hazira Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Maharashtra Electricity Regulatory Commission - India
- Trasteel International SA, Italy
- Interocean Group of Companies - India
- Malabar Cements Ltd - India
- CNBM International Corporation - China
- Gujarat Sidhee Cement - India
- Bahari Cakrawala Sebuku - Indonesia
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