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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 October 17
COAL MARKETS REMAINED SUBDUED - DANIEL HYNES
Coal markets remained subdued.
Daniel Hynes, Senior Commodity Strategist at ANZ, Coking coal prices were unchanged amid an absence of fresh of ...
Wednesday, 25 October 17
SHIPPING MARKET REPORT - INTERMODAL
While the majority of perspective Buyers in the dry bulk second-hand market is currently focusing on modern tonnage, there is also increased activi ...
Tuesday, 24 October 17
KOMIPO INVITED BIDS FOR MIN. 4600 NAR BLENDED SUB-BITUMINOUS COAL OF INDONESIAN ORIGIN FOR BORYEONG OR NEW BORYEONG POWER PLANT
COALspot.com: South Korea state-owned utility Korea Midland Power (KOMIPO) issued an another new tender for 5,000,000 Metric Tons of blended sub-bi ...
Tuesday, 24 October 17
CHINA'S INSATIABLE APPETITE FOR THIS ENERGY COMMODITY CONTINUES STRONG - GEORGE LAZARIDIS
Crude oil prices have been seeing some support emerge this past week as supply disruptions in Iraq and a drop in US drilling has helped bolster oil ...
Friday, 20 October 17
U.S COAL PRODUCTION FELL 1.45 PER CENT WEEK OVER WEEK - EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 14.9 million short ton ...
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Showing 1906 to 1910 news of total 6871 |
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- VISA Power Limited - India
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- Coal and Oil Company - UAE
- Carbofer General Trading SA - India
- Renaissance Capital - South Africa
- Ministry of Mines - Canada
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mjunction Services Limited - India
- Economic Council, Georgia
- Australian Coal Association
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- Bahari Cakrawala Sebuku - Indonesia
- SN Aboitiz Power Inc, Philippines
- Price Waterhouse Coopers - Russia
- New Zealand Coal & Carbon
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- ICICI Bank Limited - India
- Sojitz Corporation - Japan
- Parliament of New Zealand
- Alfred C Toepfer International GmbH - Germany
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- The State Trading Corporation of India Ltd
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- Wood Mackenzie - Singapore
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- European Bulk Services B.V. - Netherlands
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- Jaiprakash Power Ventures ltd
- The University of Queensland
- Indian Oil Corporation Limited
- Energy Development Corp, Philippines
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- Romanian Commodities Exchange
- Straits Asia Resources Limited - Singapore
- Bhatia International Limited - India
- ASAPP Information Group - India
- Gujarat Electricity Regulatory Commission - India
- Samtan Co., Ltd - South Korea
- LBH Netherlands Bv - Netherlands
- Antam Resourcindo - Indonesia
- Commonwealth Bank - Australia
- GMR Energy Limited - India
- India Bulls Power Limited - India
- Cement Manufacturers Association - India
- Singapore Mercantile Exchange
- Malabar Cements Ltd - India
- London Commodity Brokers - England
- Eastern Energy - Thailand
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- Ministry of Finance - Indonesia
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- Bulk Trading Sa - Switzerland
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- Therma Luzon, Inc, Philippines
- Videocon Industries ltd - India
- SMC Global Power, Philippines
- Iligan Light & Power Inc, Philippines
- Interocean Group of Companies - India
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- Merrill Lynch Commodities Europe
- Wilmar Investment Holdings
- Aboitiz Power Corporation - Philippines
- McConnell Dowell - Australia
- Larsen & Toubro Limited - India
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- Kartika Selabumi Mining - Indonesia
- Anglo American - United Kingdom
- Sindya Power Generating Company Private Ltd
- Orica Australia Pty. Ltd.
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- Dalmia Cement Bharat India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
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- Kumho Petrochemical, South Korea
- Baramulti Group, Indonesia
- Pendopo Energi Batubara - Indonesia
- Indo Tambangraya Megah - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- International Coal Ventures Pvt Ltd - India
- Siam City Cement - Thailand
- Aditya Birla Group - India
- Attock Cement Pakistan Limited
- Jindal Steel & Power Ltd - India
- PNOC Exploration Corporation - Philippines
- Coastal Gujarat Power Limited - India
- Georgia Ports Authority, United States
- Central Electricity Authority - India
- Australian Commodity Traders Exchange
- Ministry of Transport, Egypt
- IEA Clean Coal Centre - UK
- Semirara Mining Corp, Philippines
- Metalloyd Limited - United Kingdom
- Ceylon Electricity Board - Sri Lanka
- Neyveli Lignite Corporation Ltd, - India
- Bukit Baiduri Energy - Indonesia
- Directorate Of Revenue Intelligence - India
- Posco Energy - South Korea
- Siam City Cement PLC, Thailand
- Energy Link Ltd, New Zealand
- Coalindo Energy - Indonesia
- White Energy Company Limited
- Global Coal Blending Company Limited - Australia
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- Vedanta Resources Plc - India
- Kobexindo Tractors - Indoneisa
- Sarangani Energy Corporation, Philippines
- Thai Mozambique Logistica
- Petrochimia International Co. Ltd.- Taiwan
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- GAC Shipping (India) Pvt Ltd
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- Bangladesh Power Developement Board
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- Oldendorff Carriers - Singapore
- MS Steel International - UAE
- Binh Thuan Hamico - Vietnam
- TNB Fuel Sdn Bhd - Malaysia
- Parry Sugars Refinery, India
- Barasentosa Lestari - Indonesia
- CNBM International Corporation - China
- Madhucon Powers Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Electricity Generating Authority of Thailand
- Bhoruka Overseas - Indonesia
- Africa Commodities Group - South Africa
- Sical Logistics Limited - India
- Bhushan Steel Limited - India
- AsiaOL BioFuels Corp., Philippines
- Ambuja Cements Ltd - India
- Mercator Lines Limited - India
- Trasteel International SA, Italy
- Minerals Council of Australia
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- Formosa Plastics Group - Taiwan
- GVK Power & Infra Limited - India
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- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Banpu Public Company Limited - Thailand
- Goldman Sachs - Singapore
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- Thiess Contractors Indonesia
- Globalindo Alam Lestari - Indonesia
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- Petron Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Indian Energy Exchange, India
- Bharathi Cement Corporation - India
- Intertek Mineral Services - Indonesia
- Mintek Dendrill Indonesia
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- Holcim Trading Pte Ltd - Singapore
- Kaltim Prima Coal - Indonesia
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- PetroVietnam Power Coal Import and Supply Company
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- Vijayanagar Sugar Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- Chamber of Mines of South Africa
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- Power Finance Corporation Ltd., India
- Rashtriya Ispat Nigam Limited - India
- Toyota Tsusho Corporation, Japan
- TeaM Sual Corporation - Philippines
- Global Business Power Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Agrawal Coal Company - India
- IHS Mccloskey Coal Group - USA
- Lanco Infratech Ltd - India
- Karaikal Port Pvt Ltd - India
- Edison Trading Spa - Italy
- Simpson Spence & Young - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Independent Power Producers Association of India
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- Bayan Resources Tbk. - Indonesia
- Meralco Power Generation, Philippines
- Rio Tinto Coal - Australia
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