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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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Tuesday, 12 February 13
GOVERNMENT DECLARED INDONESIAN THERMAL COAL PRICE INCHES UP IN FEBRUARY
COALspot.com - The Indonesian government has declared bench mark price for coal has moved upwards in February 2013.
The monthly coal refere ...
Monday, 11 February 13
NEWCASTLE PORT SHIPPED 23.01 PERCENT MORE COAL W-O-W
COALspot.com - Newcastle port in Australia has loaded 2,967,761 MT of thermal and coking coal for week ended 0700 hours 11 February 2013, Newc ...
Sunday, 10 February 13
INDONESIA SUB-BIT SWAPS: "UP" - CFR SOUTH CHINA SWAPS: "DOWN"
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for average Q2’ 2013 delivery has gained 0.72 percent W-O-W and CFR South China coal shipme ...
Sunday, 10 February 13
DRY BULK OVERSUPPLY OF TONNAGE SEEN WANING IN THE COMING MONTHS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
It seems that the tide could be shifting in the dry bulk market, in terms of tonnage oversupply, according to the latest data figures. This could ex ...
Sunday, 10 February 13
HIGHER BUNKER PRICE PUSHES SEA FREIGHTS FIRM - REDDY
COALspot.com - The freight market was soft and all at same levels with Chinese year holidays next week.
The BDI was slightly down by 0.27 pct ad ...
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- Global Green Power PLC Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Economic Council, Georgia
- IEA Clean Coal Centre - UK
- AsiaOL BioFuels Corp., Philippines
- VISA Power Limited - India
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- PNOC Exploration Corporation - Philippines
- Kumho Petrochemical, South Korea
- Independent Power Producers Association of India
- Karbindo Abesyapradhi - Indoneisa
- London Commodity Brokers - England
- Agrawal Coal Company - India
- Orica Mining Services - Indonesia
- The Treasury - Australian Government
- IHS Mccloskey Coal Group - USA
- Central Electricity Authority - India
- Toyota Tsusho Corporation, Japan
- Globalindo Alam Lestari - Indonesia
- Mercuria Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- SN Aboitiz Power Inc, Philippines
- Ind-Barath Power Infra Limited - India
- Bukit Baiduri Energy - Indonesia
- Coal and Oil Company - UAE
- Offshore Bulk Terminal Pte Ltd, Singapore
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- Deloitte Consulting - India
- European Bulk Services B.V. - Netherlands
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- Trasteel International SA, Italy
- ASAPP Information Group - India
- Heidelberg Cement - Germany
- Ministry of Mines - Canada
- Kobexindo Tractors - Indoneisa
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- Goldman Sachs - Singapore
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- Oldendorff Carriers - Singapore
- TNB Fuel Sdn Bhd - Malaysia
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- Metalloyd Limited - United Kingdom
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- Timah Investasi Mineral - Indoneisa
- MS Steel International - UAE
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- Ministry of Transport, Egypt
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- Alfred C Toepfer International GmbH - Germany
- Bukit Makmur.PT - Indonesia
- Africa Commodities Group - South Africa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
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- Port Waratah Coal Services - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Siam City Cement - Thailand
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- Petron Corporation, Philippines
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- Bahari Cakrawala Sebuku - Indonesia
- Bulk Trading Sa - Switzerland
- Vedanta Resources Plc - India
- GVK Power & Infra Limited - India
- Global Coal Blending Company Limited - Australia
- Indogreen Group - Indonesia
- Attock Cement Pakistan Limited
- Energy Link Ltd, New Zealand
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- Videocon Industries ltd - India
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- Sojitz Corporation - Japan
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- SMC Global Power, Philippines
- McConnell Dowell - Australia
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- Cigading International Bulk Terminal - Indonesia
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- PetroVietnam Power Coal Import and Supply Company
- Eastern Coal Council - USA
- Pipit Mutiara Jaya. PT, Indonesia
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- Mercator Lines Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Rashtriya Ispat Nigam Limited - India
- Straits Asia Resources Limited - Singapore
- LBH Netherlands Bv - Netherlands
- Sindya Power Generating Company Private Ltd
- Riau Bara Harum - Indonesia
- Formosa Plastics Group - Taiwan
- Salva Resources Pvt Ltd - India
- Parry Sugars Refinery, India
- Wood Mackenzie - Singapore
- Singapore Mercantile Exchange
- Star Paper Mills Limited - India
- Ministry of Finance - Indonesia
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- White Energy Company Limited
- Bayan Resources Tbk. - Indonesia
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- Global Business Power Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Anglo American - United Kingdom
- Holcim Trading Pte Ltd - Singapore
- Power Finance Corporation Ltd., India
- Electricity Generating Authority of Thailand
- CIMB Investment Bank - Malaysia
- Minerals Council of Australia
- Thai Mozambique Logistica
- Eastern Energy - Thailand
- Coalindo Energy - Indonesia
- Xindia Steels Limited - India
- Vizag Seaport Private Limited - India
- Commonwealth Bank - Australia
- Sakthi Sugars Limited - India
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- GMR Energy Limited - India
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- Australian Coal Association
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- Asia Pacific Energy Resources Ventures Inc, Philippines
- Mjunction Services Limited - India
- South Luzon Thermal Energy Corporation
- Kalimantan Lumbung Energi - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Australian Commodity Traders Exchange
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- Directorate General of MIneral and Coal - Indonesia
- Thiess Contractors Indonesia
- PowerSource Philippines DevCo
- Altura Mining Limited, Indonesia
- Romanian Commodities Exchange
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- Price Waterhouse Coopers - Russia
- Standard Chartered Bank - UAE
- Carbofer General Trading SA - India
- Dalmia Cement Bharat India
- Bhatia International Limited - India
- Kaltim Prima Coal - Indonesia
- Malabar Cements Ltd - India
- Asmin Koalindo Tuhup - Indonesia
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- Cement Manufacturers Association - India
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- Renaissance Capital - South Africa
- Energy Development Corp, Philippines
- PTC India Limited - India
- Kideco Jaya Agung - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Directorate Of Revenue Intelligence - India
- San Jose City I Power Corp, Philippines
- Marubeni Corporation - India
- Medco Energi Mining Internasional
- Edison Trading Spa - Italy
- Parliament of New Zealand
- Kapuas Tunggal Persada - Indonesia
- Larsen & Toubro Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Banpu Public Company Limited - Thailand
- Uttam Galva Steels Limited - India
- The University of Queensland
- Sarangani Energy Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- ICICI Bank Limited - India
- Samtan Co., Ltd - South Korea
- Semirara Mining and Power Corporation, Philippines
- Lanco Infratech Ltd - India
- Chettinad Cement Corporation Ltd - India
- Baramulti Group, Indonesia
- Indonesian Coal Mining Association
- Tamil Nadu electricity Board
- Jindal Steel & Power Ltd - India
- Interocean Group of Companies - India
- Merrill Lynch Commodities Europe
- International Coal Ventures Pvt Ltd - India
- Wilmar Investment Holdings
- Binh Thuan Hamico - Vietnam
- Indian Energy Exchange, India
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