MARKETS

NewLead Holdings signs $148 million deal

INTERNATIONAL shipping company NewLead Holdings has signed an agreement expected to generate about $148 million in revenue to supply and deliver 1.48 million metric tons of steam coal to a third-party buyer.

Staff Reporter
NewLead Holdings signs $148 million deal

The contract provides for the sale of 130,000 metric tons of coal, starting in March, followed by 150,000 metric tons per month from April until the end of 2013.

The price was established based on the prevailing steam coal market price at the time the contract was entered.

Loading of the steam coal is expected to start by the end of next month. Delivery will be via NewLead's fleet of existing or newly chartered-in vessels.

Chairman, president and CEO of NewLead, Michael Zolotas, said the company was integrating its commodity and transport operations.

“We secured a contract not only to profitably supply steam coal, but to also profitably transport this coal to our buyer, a creditworthy counterparty,” he said.

“Our vertically integrated operation provides various profitable sectors and, we believe, an advantage over other competitors."

The company also announced it had extended the closure date on previously announced acquisitions in Kentucky and Tennessee. It has been extended to March 5 to accommodate financial delay.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions

editions

Mining Magazine Intelligence Exploration Report 2023 (feat. Opaxe data)

A comprehensive review of current exploration rates, trending exploration technologies, a ranking of top drill intercepts and a catalogue of 2022 Initial Resource Estimates and recent discovery successes.