NewLead completes Kentucky plant takeover

INTERNATIONAL shipping firm NewLead Holdings has wrapped up an acquisition of a coal washing facility from an unnamed seller in Kentucky.

Donna Schmidt

The Greek-headquartered company said the plant and attached rail load was operational.

It was expected to generate revenue and positive cash flow immediately, along with decreased transport costs.

The deal was first announced in September, along with NewLead’s acquisition of the Viking mine and 20 million short tons of estimated coal reserves.

It also inked an agreement to purchase the Five Mile mine in Kentucky this year.

Processing averages at the facility since April 2011 have been about 59,000t per month and a contract is in place for the processing of up to 150,000tpa of coal on request.

The contract is scheduled to expire in June 2016.

“The completion of the acquisition of the wash plant is an important step in developing our vertically integrated shipping and commodity model,” chairman and chief executive officer Michael Zolotas said.

He noted that the addition of the wash plant was a significant enhancement to its commodity arm.

“It ameliorates the quality of the coal produced and it produces profits from washing coal for third parties,” he said.

“The use of the rail load allows for a competitive advantage in logistics and transportation over the selling pricing mechanism of high quality coal as compared to our peers.”

NewLead trades common shares on the NASDAQ GSM under NEWL.