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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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Thursday, 02 March 23
DRY BULK MARKET: THE WAY CHINA GOES, SO GOES THE MARKET - BIMCO
We expect demand growth within the 1.5-2.5% range in 2023, driven by China’s economic recovery. Improvements in consumer sentiment should hel ...
Thursday, 02 March 23
INDIA, CHINA DEMAND BOOST LOW-RANK THERMAL COAL PRICES IN ASIA - RUSSELL, REUTERS
Signs of stronger import demand from India have arrested the decline in price of the thermal coal grades most commonly sought by the world’s ...
Thursday, 02 March 23
INDIA CHEERS THE RETURN OF ‘KING COAL’ AS INDUSTRY SEES BUOYANT FUTURE - REUTERS
India’s coal industry celebrated the return of its major conference after a three-year pandemic hiatus by presenting a bullish view of demand ...
Wednesday, 01 March 23
GEO CONNECT ASIA RETURNS IN MARCH TO ACCELERATE THE REGION’S GEOSPATIAL AND LOCATION INTELLIGENCE CAPABILITIES
Press Release: The third edition of GCA will be held in conjunction with Digital Construction Asia and the inaugural Drones Asia – an event d ...
Wednesday, 01 March 23
THE DECLINE IN THE COAL PRICE SINCE THE BEGINNING OF THE YEAR HAS BEEN SIGNIFICANT - INTERMODAL
Last week, the front-month API2 future rose by 3.5%, but since the beginning of the year the future has fallen by 39% to $136.65/t, while the Newca ...
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- Central Electricity Authority - India
- Karbindo Abesyapradhi - Indoneisa
- Indogreen Group - Indonesia
- The Treasury - Australian Government
- Parry Sugars Refinery, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Orica Mining Services - Indonesia
- Aboitiz Power Corporation - Philippines
- The State Trading Corporation of India Ltd
- Coal and Oil Company - UAE
- Ministry of Finance - Indonesia
- Therma Luzon, Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Star Paper Mills Limited - India
- McConnell Dowell - Australia
- Bangladesh Power Developement Board
- Sakthi Sugars Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Thai Mozambique Logistica
- Banpu Public Company Limited - Thailand
- Petron Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bharathi Cement Corporation - India
- Georgia Ports Authority, United States
- Sinarmas Energy and Mining - Indonesia
- GVK Power & Infra Limited - India
- Intertek Mineral Services - Indonesia
- Pendopo Energi Batubara - Indonesia
- Ministry of Transport, Egypt
- Vedanta Resources Plc - India
- IHS Mccloskey Coal Group - USA
- Lanco Infratech Ltd - India
- European Bulk Services B.V. - Netherlands
- Krishnapatnam Port Company Ltd. - India
- Heidelberg Cement - Germany
- Kaltim Prima Coal - Indonesia
- PTC India Limited - India
- Antam Resourcindo - Indonesia
- Globalindo Alam Lestari - Indonesia
- Formosa Plastics Group - Taiwan
- Simpson Spence & Young - Indonesia
- Wood Mackenzie - Singapore
- Meenaskhi Energy Private Limited - India
- Makarim & Taira - Indonesia
- Mercator Lines Limited - India
- GN Power Mariveles Coal Plant, Philippines
- PNOC Exploration Corporation - Philippines
- SMG Consultants - Indonesia
- Sree Jayajothi Cements Limited - India
- Australian Coal Association
- Sarangani Energy Corporation, Philippines
- Independent Power Producers Association of India
- Semirara Mining Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- MS Steel International - UAE
- Barasentosa Lestari - Indonesia
- Straits Asia Resources Limited - Singapore
- Orica Australia Pty. Ltd.
- PowerSource Philippines DevCo
- Ceylon Electricity Board - Sri Lanka
- Power Finance Corporation Ltd., India
- Essar Steel Hazira Ltd - India
- CIMB Investment Bank - Malaysia
- Anglo American - United Kingdom
- Cigading International Bulk Terminal - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Oldendorff Carriers - Singapore
- Minerals Council of Australia
- Ministry of Mines - Canada
- Metalloyd Limited - United Kingdom
- Agrawal Coal Company - India
- GMR Energy Limited - India
- Billiton Holdings Pty Ltd - Australia
- Economic Council, Georgia
- Larsen & Toubro Limited - India
- Jindal Steel & Power Ltd - India
- LBH Netherlands Bv - Netherlands
- ICICI Bank Limited - India
- Aditya Birla Group - India
- Pipit Mutiara Jaya. PT, Indonesia
- Chettinad Cement Corporation Ltd - India
- South Luzon Thermal Energy Corporation
- Kohat Cement Company Ltd. - Pakistan
- Maheswari Brothers Coal Limited - India
- Global Business Power Corporation, Philippines
- Vizag Seaport Private Limited - India
- White Energy Company Limited
- International Coal Ventures Pvt Ltd - India
- Mercuria Energy - Indonesia
- India Bulls Power Limited - India
- Siam City Cement - Thailand
- Baramulti Group, Indonesia
- Borneo Indobara - Indonesia
- San Jose City I Power Corp, Philippines
- Wilmar Investment Holdings
- Sojitz Corporation - Japan
- Miang Besar Coal Terminal - Indonesia
- Dalmia Cement Bharat India
- ASAPP Information Group - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- VISA Power Limited - India
- Thiess Contractors Indonesia
- Attock Cement Pakistan Limited
- Directorate Of Revenue Intelligence - India
- Toyota Tsusho Corporation, Japan
- Mjunction Services Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Latin American Coal - Colombia
- Price Waterhouse Coopers - Russia
- Neyveli Lignite Corporation Ltd, - India
- Asmin Koalindo Tuhup - Indonesia
- Salva Resources Pvt Ltd - India
- Indonesian Coal Mining Association
- Global Green Power PLC Corporation, Philippines
- Merrill Lynch Commodities Europe
- Trasteel International SA, Italy
- Gujarat Sidhee Cement - India
- London Commodity Brokers - England
- Deloitte Consulting - India
- Kideco Jaya Agung - Indonesia
- Global Coal Blending Company Limited - Australia
- Xindia Steels Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Marubeni Corporation - India
- Parliament of New Zealand
- Eastern Coal Council - USA
- Carbofer General Trading SA - India
- Vijayanagar Sugar Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Electricity Generating Authority of Thailand
- Jaiprakash Power Ventures ltd
- Goldman Sachs - Singapore
- Savvy Resources Ltd - HongKong
- AsiaOL BioFuels Corp., Philippines
- The University of Queensland
- Alfred C Toepfer International GmbH - Germany
- Bhoruka Overseas - Indonesia
- Kobexindo Tractors - Indoneisa
- Tamil Nadu electricity Board
- Kalimantan Lumbung Energi - Indonesia
- Romanian Commodities Exchange
- Directorate General of MIneral and Coal - Indonesia
- Renaissance Capital - South Africa
- Energy Link Ltd, New Zealand
- Indian Oil Corporation Limited
- Meralco Power Generation, Philippines
- Indian Energy Exchange, India
- Standard Chartered Bank - UAE
- Rashtriya Ispat Nigam Limited - India
- Interocean Group of Companies - India
- Karaikal Port Pvt Ltd - India
- Indika Energy - Indonesia
- New Zealand Coal & Carbon
- Malabar Cements Ltd - India
- Cement Manufacturers Association - India
- Bahari Cakrawala Sebuku - Indonesia
- Grasim Industreis Ltd - India
- Madhucon Powers Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Eastern Energy - Thailand
- Chamber of Mines of South Africa
- Coastal Gujarat Power Limited - India
- IEA Clean Coal Centre - UK
- Gujarat Mineral Development Corp Ltd - India
- Altura Mining Limited, Indonesia
- Indo Tambangraya Megah - Indonesia
- Tata Chemicals Ltd - India
- SN Aboitiz Power Inc, Philippines
- Ind-Barath Power Infra Limited - India
- Bhatia International Limited - India
- Holcim Trading Pte Ltd - Singapore
- Bukit Makmur.PT - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Commonwealth Bank - Australia
- Singapore Mercantile Exchange
- Manunggal Multi Energi - Indonesia
- Port Waratah Coal Services - Australia
- Kepco SPC Power Corporation, Philippines
- Semirara Mining and Power Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- OPG Power Generation Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Australian Commodity Traders Exchange
- Samtan Co., Ltd - South Korea
- Kapuas Tunggal Persada - Indonesia
- Medco Energi Mining Internasional
- Bulk Trading Sa - Switzerland
- Bhushan Steel Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Energy Development Corp, Philippines
- Mintek Dendrill Indonesia
- GAC Shipping (India) Pvt Ltd
- Africa Commodities Group - South Africa
- Iligan Light & Power Inc, Philippines
- Sical Logistics Limited - India
- Gujarat Electricity Regulatory Commission - India
- Central Java Power - Indonesia
- Uttam Galva Steels Limited - India
- Coalindo Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Bukit Baiduri Energy - Indonesia
- Ambuja Cements Ltd - India
- TeaM Sual Corporation - Philippines
- Edison Trading Spa - Italy
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kartika Selabumi Mining - Indonesia
- Posco Energy - South Korea
- Binh Thuan Hamico - Vietnam
- Kumho Petrochemical, South Korea
- CNBM International Corporation - China
- Planning Commission, India
- Videocon Industries ltd - India
- Electricity Authority, New Zealand
- Rio Tinto Coal - Australia
- Bayan Resources Tbk. - Indonesia
- SMC Global Power, Philippines
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