The struggling New York-listed owner said the purchase, which it firstflagged in September, will provide earnings with a much needed shot in the arm.
Despite securing a recent debt-for-equity deal, the company has warned investors over its cash position and raised doubts over its ability to remain a going concern.
The plant has a contract in place to process up to 150,000tonnes of coal per month until 2016 though it has only averaged 59,000 monthlysince April 2011.
Michael Zolotas-led NewLead did not put a final price on thetransaction but three months ago it said it would invest a total of $68m in twomines and the coal wash facility.
"The completion of the acquisition of the wash plant isan important step in developing our vertically integrated shipping andcommodity model,” Zolotas said in an exchange filing.
"The acquisition.....greatly enhances NewLead's commodityarm because it is a vital part of coal production process.
"It ameliorates the quality of the coal produced and itproduces profits from washing coal for third parties.”
The plant is serviced by a rail road allowing delivery ofthe coal direct to market, reducing the cost of transportation and givingNewLead a competitive advantage, Zolotas added.
Situation still precarious
NewLead continues to invest in new assets despite theprecariousness of its financial position.
New York’s supreme court approved a debt-for-equity swap earlierthis month that saw the Magna Group investment fund take a 9.92% stake.
However, just days later, NewLead raised a red flag overits ability to remain a going concern for much longer without improving itscash flow.
In addition to the new plant the company has purchased stakes in several USmines and recently returned to the sale and purchase market for a handysizenewbuilding.
The 35,000-dwt eco-type vessel is due for delivery from anunnamed yard in the third quarter of next year, suggesting a resale.
