Allegiance Coal Ltd has appointed Javelin Global Commodities (UK) Ltd or any of its affiliates as the exclusive marketing and sales agent for its Mary Lee and Blue Creek coal produced at its operating Black Warrior mine, and its proposed Short Creek mine, both located in Alabama.
Chairman and CEO, Mark Gray, commented: “Javelin is a recognised and highly respected global commodity trading house responsible for handling over 50 million tpy of coal. It handles an enormous amount of thermal and metallurgical coal in the Gulf of Mexico, including from McDuffie Coal Terminal in the Port of Mobile which handles Black Warrior exports and the proposed Short Creek mine exports once in production. We are very excited to work with Javelin to extend our brand with the global steel mills and to improve our working capital financing. This is a wonderful partnership for us and I very much look forward to working with the team at Javelin.”
Javelin CEO, Peter Bradley, added: “Javelin is extremely pleased to enter into this long term partnership with Allegiance, an experienced and high quality coal producer, to help build the Mary Lee and Blue Creek coal brands from both the Black Warrior and proposed Short Creek mines. We are confident that the combination of Allegiance’s world class development and production expertise and Javelin’s marketing and logistics expertise, and working capital financing, will prove to be a winning combination for many years to come.”
Javelin will be entitled to a fee based on a percentage of the achieved sales price for the sales and marketing and logistics services, as is usual in contracts of this nature.
The US$25 million rolling financing facility will attract interest at the rate of 3-month LIBOR + 10% per annum and will be secured against the coal along with the assets of Black Warrior subordinated to any senior debt we may introduce (excluding the coal).
Read the article online at: https://www.worldcoal.com/coal/05052022/javelin-global-commodities-appointed-sales-and-marketing-agent-for-alabama-coal-production/