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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, 22 December 22
RUSSIAN OIL EXPORTS CRATER BY 54% IN THE FIRST FULL WEEK OF THE EU'S EMBARGO AMID A SHORTAGE OF TANKERS WILLING TO CARRY CARGOES - BUSINESS INSIDER
Since the European Union imposed its seaborne crude sanctions, Russian oil exports have tumbled by more than half, according to data compiled by Bl ...
Thursday, 22 December 22
CHINA TIGHTENS VERIFICATION OF SHIPS’ ENERGY CONSUMPTION DATA - GARD
From 22 December 2022, ships trading to Chinese ports must record their energy consumption data in accordance with the requirements of their Ship E ...
Thursday, 22 December 22
AN OVERVIEW OF THE LNG MARKET - VESSELSVALUE
LNG values have continued to strengthen, spurred by skyrocketing earnings that have surpassed last year’s record breaking peaks. In November, ...
Thursday, 22 December 22
COKING COAL SLUMPS AS TALKS ON AUSTRALIA-CHINA TRADE RIFT LOOM - REUTERS
Chinese coking coal futures dropped more than 3 per cent on Tuesday (Dec 20), extending losses, as supply of the steelmaking input might increase i ...
Thursday, 22 December 22
COAL AND GAS PRICE CAPS MAY COMPOUND POLITICAL RISK FOR AUSTRALIAN CORPORATES - FITCH RATINGS
Australia’s introduction of temporary price caps on domestic sales of gas and coal used for electricity generation will probably have limited ...
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- Neyveli Lignite Corporation Ltd, - India
- Singapore Mercantile Exchange
- Intertek Mineral Services - Indonesia
- McConnell Dowell - Australia
- Attock Cement Pakistan Limited
- India Bulls Power Limited - India
- Electricity Generating Authority of Thailand
- Metalloyd Limited - United Kingdom
- Riau Bara Harum - Indonesia
- Kartika Selabumi Mining - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Toyota Tsusho Corporation, Japan
- Bukit Makmur.PT - Indonesia
- Bhushan Steel Limited - India
- Edison Trading Spa - Italy
- Thai Mozambique Logistica
- The Treasury - Australian Government
- Wood Mackenzie - Singapore
- Standard Chartered Bank - UAE
- Meenaskhi Energy Private Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Eastern Coal Council - USA
- Karaikal Port Pvt Ltd - India
- Planning Commission, India
- South Luzon Thermal Energy Corporation
- SMG Consultants - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- GAC Shipping (India) Pvt Ltd
- Merrill Lynch Commodities Europe
- Electricity Authority, New Zealand
- Maharashtra Electricity Regulatory Commission - India
- Tamil Nadu electricity Board
- Timah Investasi Mineral - Indoneisa
- European Bulk Services B.V. - Netherlands
- Banpu Public Company Limited - Thailand
- ICICI Bank Limited - India
- Mintek Dendrill Indonesia
- Cement Manufacturers Association - India
- Kapuas Tunggal Persada - Indonesia
- Chamber of Mines of South Africa
- Global Green Power PLC Corporation, Philippines
- Orica Australia Pty. Ltd.
- Gujarat Mineral Development Corp Ltd - India
- Africa Commodities Group - South Africa
- Trasteel International SA, Italy
- Barasentosa Lestari - Indonesia
- Indonesian Coal Mining Association
- Jindal Steel & Power Ltd - India
- Videocon Industries ltd - India
- Ind-Barath Power Infra Limited - India
- Sojitz Corporation - Japan
- Kaltim Prima Coal - Indonesia
- Power Finance Corporation Ltd., India
- PetroVietnam Power Coal Import and Supply Company
- Ministry of Finance - Indonesia
- Independent Power Producers Association of India
- Port Waratah Coal Services - Australia
- LBH Netherlands Bv - Netherlands
- Heidelberg Cement - Germany
- Antam Resourcindo - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Coal and Oil Company - UAE
- Price Waterhouse Coopers - Russia
- Manunggal Multi Energi - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Leighton Contractors Pty Ltd - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Posco Energy - South Korea
- Semirara Mining Corp, Philippines
- Bharathi Cement Corporation - India
- Sakthi Sugars Limited - India
- Tata Chemicals Ltd - India
- Kumho Petrochemical, South Korea
- The State Trading Corporation of India Ltd
- Rio Tinto Coal - Australia
- Rashtriya Ispat Nigam Limited - India
- Minerals Council of Australia
- Larsen & Toubro Limited - India
- Parry Sugars Refinery, India
- New Zealand Coal & Carbon
- Deloitte Consulting - India
- Australian Commodity Traders Exchange
- Formosa Plastics Group - Taiwan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indogreen Group - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Samtan Co., Ltd - South Korea
- Medco Energi Mining Internasional
- Directorate Of Revenue Intelligence - India
- Petrochimia International Co. Ltd.- Taiwan
- Bukit Baiduri Energy - Indonesia
- Madhucon Powers Ltd - India
- Therma Luzon, Inc, Philippines
- International Coal Ventures Pvt Ltd - India
- Economic Council, Georgia
- Aditya Birla Group - India
- Thiess Contractors Indonesia
- Cigading International Bulk Terminal - Indonesia
- Wilmar Investment Holdings
- TeaM Sual Corporation - Philippines
- Latin American Coal - Colombia
- Indian Oil Corporation Limited
- Sarangani Energy Corporation, Philippines
- Georgia Ports Authority, United States
- Vizag Seaport Private Limited - India
- Binh Thuan Hamico - Vietnam
- Sical Logistics Limited - India
- Meralco Power Generation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Holcim Trading Pte Ltd - Singapore
- Ministry of Mines - Canada
- Star Paper Mills Limited - India
- Siam City Cement PLC, Thailand
- Straits Asia Resources Limited - Singapore
- Billiton Holdings Pty Ltd - Australia
- Krishnapatnam Port Company Ltd. - India
- Asmin Koalindo Tuhup - Indonesia
- Bulk Trading Sa - Switzerland
- Uttam Galva Steels Limited - India
- Malabar Cements Ltd - India
- Borneo Indobara - Indonesia
- SN Aboitiz Power Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- Mercuria Energy - Indonesia
- Renaissance Capital - South Africa
- CIMB Investment Bank - Malaysia
- Indo Tambangraya Megah - Indonesia
- Xindia Steels Limited - India
- Oldendorff Carriers - Singapore
- Aboitiz Power Corporation - Philippines
- Commonwealth Bank - Australia
- Kobexindo Tractors - Indoneisa
- MS Steel International - UAE
- Carbofer General Trading SA - India
- Siam City Cement - Thailand
- Essar Steel Hazira Ltd - India
- Bhoruka Overseas - Indonesia
- Eastern Energy - Thailand
- Agrawal Coal Company - India
- Bayan Resources Tbk. - Indonesia
- Gujarat Sidhee Cement - India
- Ministry of Transport, Egypt
- PowerSource Philippines DevCo
- CNBM International Corporation - China
- Anglo American - United Kingdom
- The University of Queensland
- Marubeni Corporation - India
- Ambuja Cements Ltd - India
- GMR Energy Limited - India
- PNOC Exploration Corporation - Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ceylon Electricity Board - Sri Lanka
- Vijayanagar Sugar Pvt Ltd - India
- SMC Global Power, Philippines
- Romanian Commodities Exchange
- Kepco SPC Power Corporation, Philippines
- ASAPP Information Group - India
- Baramulti Group, Indonesia
- Kideco Jaya Agung - Indonesia
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- Interocean Group of Companies - India
- Simpson Spence & Young - Indonesia
- Bhatia International Limited - India
- Grasim Industreis Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- IHS Mccloskey Coal Group - USA
- Bank of Tokyo Mitsubishi UFJ Ltd
- Maheswari Brothers Coal Limited - India
- Globalindo Alam Lestari - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Orica Mining Services - Indonesia
- Makarim & Taira - Indonesia
- Dalmia Cement Bharat India
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- PTC India Limited - India
- Pendopo Energi Batubara - Indonesia
- Petron Corporation, Philippines
- Vedanta Resources Plc - India
- OPG Power Generation Pvt Ltd - India
- London Commodity Brokers - England
- Coastal Gujarat Power Limited - India
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- Altura Mining Limited, Indonesia
- Bangladesh Power Developement Board
- Jaiprakash Power Ventures ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Karbindo Abesyapradhi - Indoneisa
- VISA Power Limited - India
- Global Coal Blending Company Limited - Australia
- Global Business Power Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Lanco Infratech Ltd - India
- Goldman Sachs - Singapore
- Coalindo Energy - Indonesia
- Chettinad Cement Corporation Ltd - India
- Energy Link Ltd, New Zealand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Semirara Mining and Power Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Australian Coal Association
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Indian Energy Exchange, India
- IEA Clean Coal Centre - UK
- Indika Energy - Indonesia
- Energy Development Corp, Philippines
- Parliament of New Zealand
- Mjunction Services Limited - India
- San Jose City I Power Corp, Philippines
- Mercator Lines Limited - India
- Sindya Power Generating Company Private Ltd
- White Energy Company Limited
- Sree Jayajothi Cements Limited - India
- Central Electricity Authority - India
- GVK Power & Infra Limited - India
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