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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, 21 August 17
INDIA'S COAL IMPORTS DECLINE TO 192 MT IN FY17 - PTI
Import of coal saw a decline of 6.37 per cent to 191.95 million tonnes (MT) in 2016-17 on higher production by CIL that saw the country move to a r ...
Monday, 21 August 17
FIRM DEMAND FOR CAPES CONTINUE TO SUPPORT DRY BULK SHIPPING
COALspot.com: The freight market was continued to rose this past week compared to the previous weeks, as BDI, Cape and Panamax indexes show a posit ...
Friday, 18 August 17
U.S. WEEKLY COAL OUTPUT UP 2.1% WEEK OVER WEEK, SAYS EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 16.5 million short ton ...
Thursday, 17 August 17
DESPITE A HOLIDAY-DISRUPTED WEEK IT HAS BEEN A NEW ACTIVE WEEK FOR THE PANAMAXES - FEARNLEYS
Supramax
A very quiet start to the week with holidays in several countries. USG still bringing good results supported by a tight tonnage availabl ...
Monday, 14 August 17
CENTURIES ON, AND DRY BULK STILL RULES THE WAVES... - SARAH HOLDEN | CLARKSONS
By the late 1800s, the shipping industry had been transformed by the introduction of steam power and iron ships. Coal and grain were two of the mos ...
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Showing 1966 to 1970 news of total 6871 |
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- Siam City Cement - Thailand
- Baramulti Group, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Banpu Public Company Limited - Thailand
- Indonesian Coal Mining Association
- Semirara Mining Corp, Philippines
- Parry Sugars Refinery, India
- Energy Development Corp, Philippines
- Billiton Holdings Pty Ltd - Australia
- Heidelberg Cement - Germany
- Coalindo Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Interocean Group of Companies - India
- CIMB Investment Bank - Malaysia
- VISA Power Limited - India
- Indo Tambangraya Megah - Indonesia
- Petron Corporation, Philippines
- European Bulk Services B.V. - Netherlands
- New Zealand Coal & Carbon
- White Energy Company Limited
- Kapuas Tunggal Persada - Indonesia
- Simpson Spence & Young - Indonesia
- Vedanta Resources Plc - India
- Kartika Selabumi Mining - Indonesia
- Aditya Birla Group - India
- Kumho Petrochemical, South Korea
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- Carbofer General Trading SA - India
- Sarangani Energy Corporation, Philippines
- Marubeni Corporation - India
- Electricity Generating Authority of Thailand
- Samtan Co., Ltd - South Korea
- Mercator Lines Limited - India
- Central Electricity Authority - India
- Borneo Indobara - Indonesia
- Salva Resources Pvt Ltd - India
- Formosa Plastics Group - Taiwan
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- International Coal Ventures Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Coastal Gujarat Power Limited - India
- Gujarat Electricity Regulatory Commission - India
- OPG Power Generation Pvt Ltd - India
- Australian Commodity Traders Exchange
- Electricity Authority, New Zealand
- Indian Energy Exchange, India
- Singapore Mercantile Exchange
- Bulk Trading Sa - Switzerland
- Maharashtra Electricity Regulatory Commission - India
- Indogreen Group - Indonesia
- GVK Power & Infra Limited - India
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- Rio Tinto Coal - Australia
- Parliament of New Zealand
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- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Eastern Coal Council - USA
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- Bhoruka Overseas - Indonesia
- Meralco Power Generation, Philippines
- Coal and Oil Company - UAE
- Mjunction Services Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- PNOC Exploration Corporation - Philippines
- The State Trading Corporation of India Ltd
- Energy Link Ltd, New Zealand
- Aboitiz Power Corporation - Philippines
- Trasteel International SA, Italy
- Central Java Power - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Ind-Barath Power Infra Limited - India
- Cement Manufacturers Association - India
- Jorong Barutama Greston.PT - Indonesia
- Essar Steel Hazira Ltd - India
- Commonwealth Bank - Australia
- Sojitz Corporation - Japan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Eastern Energy - Thailand
- GAC Shipping (India) Pvt Ltd
- Ministry of Transport, Egypt
- Tamil Nadu electricity Board
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- Globalindo Alam Lestari - Indonesia
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- Cigading International Bulk Terminal - Indonesia
- MS Steel International - UAE
- Leighton Contractors Pty Ltd - Australia
- Oldendorff Carriers - Singapore
- Metalloyd Limited - United Kingdom
- Iligan Light & Power Inc, Philippines
- Renaissance Capital - South Africa
- Thiess Contractors Indonesia
- Economic Council, Georgia
- Sakthi Sugars Limited - India
- Bayan Resources Tbk. - Indonesia
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- Bangladesh Power Developement Board
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- Planning Commission, India
- Indian Oil Corporation Limited
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- TNB Fuel Sdn Bhd - Malaysia
- Miang Besar Coal Terminal - Indonesia
- Star Paper Mills Limited - India
- Ministry of Mines - Canada
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- SMC Global Power, Philippines
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- Ministry of Finance - Indonesia
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- CNBM International Corporation - China
- Makarim & Taira - Indonesia
- Global Coal Blending Company Limited - Australia
- Deloitte Consulting - India
- Tata Chemicals Ltd - India
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- Rashtriya Ispat Nigam Limited - India
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- Australian Coal Association
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- Toyota Tsusho Corporation, Japan
- Straits Asia Resources Limited - Singapore
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- Directorate General of MIneral and Coal - Indonesia
- Holcim Trading Pte Ltd - Singapore
- The University of Queensland
- Kobexindo Tractors - Indoneisa
- Price Waterhouse Coopers - Russia
- Wood Mackenzie - Singapore
- PowerSource Philippines DevCo
- IHS Mccloskey Coal Group - USA
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- Wilmar Investment Holdings
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- The Treasury - Australian Government
- Dalmia Cement Bharat India
- ASAPP Information Group - India
- Savvy Resources Ltd - HongKong
- Minerals Council of Australia
- Altura Mining Limited, Indonesia
- Ambuja Cements Ltd - India
- Chamber of Mines of South Africa
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- Kaltim Prima Coal - Indonesia
- Georgia Ports Authority, United States
- Pipit Mutiara Jaya. PT, Indonesia
- Orica Australia Pty. Ltd.
- Independent Power Producers Association of India
- Thai Mozambique Logistica
- LBH Netherlands Bv - Netherlands
- Directorate Of Revenue Intelligence - India
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- Global Business Power Corporation, Philippines
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- Latin American Coal - Colombia
- AsiaOL BioFuels Corp., Philippines
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- Antam Resourcindo - Indonesia
- Africa Commodities Group - South Africa
- Anglo American - United Kingdom
- IEA Clean Coal Centre - UK
- Romanian Commodities Exchange
- Agrawal Coal Company - India
- Malabar Cements Ltd - India
- Pendopo Energi Batubara - Indonesia
- Larsen & Toubro Limited - India
- Vizag Seaport Private Limited - India
- Bharathi Cement Corporation - India
- Semirara Mining and Power Corporation, Philippines
- Standard Chartered Bank - UAE
- Manunggal Multi Energi - Indonesia
- Mintek Dendrill Indonesia
- Goldman Sachs - Singapore
- Ceylon Electricity Board - Sri Lanka
- Medco Energi Mining Internasional
- Asia Pacific Energy Resources Ventures Inc, Philippines
- SMG Consultants - Indonesia
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- Edison Trading Spa - Italy
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