Three groups have formed together to launch an international commodities marketing and trading enterprise. It will be based in London and called Javelin Global Commodities Holdings. The new company will be owned by Murray Energy Corp. and E.ON Global Commodities.
Javelin’s focus is coal and electric power, although it intends to expand to other commodities. It has gone into a long-term export marketing and domestic advisory agreement with Murray Energy and a long-term hedging and credit line with E.ON.
David Finch, E.ON’s Chief Commercial Officer for Coal, LNG and Freight, said: "We're delighted to have secured a stake in Javelin. It's the ideal marriage of assets and know-how, coupling our coal and freight hedging and optimisation expertise with a leading coal producer and a hugely experienced team of coal marketers. This transaction represents a key step in our long-term strategic vision and a vehicle to continue to grow our presence in US coal and electric power markets."
Peter Bradley, CEO of Javelin, noted: "We are pleased that our investors, Murray Energy and E.ON, have placed their trust in us to help them carry out their strategic visions. We could not be off to a better start with such key players in the coal and other commodities markets supporting us. The onset of shale gas production has changed the energy landscape in the US and abroad and we aim to provide services to clients to better manage their business in this dynamic environment."
Robert D. Moore, Executive Vice President, Chief Operating Officer and Chief Financial Officer of Murray Energy, and President and CEO of Foresight Energy, said: "We're no longer just competing with fellow coal producers. Today we're also in a head-to-head battle with low natural gas prices. Javelin will assist Murray Energy in offering new products to our customers to allow them to compete in the electric power marketplace, such as variable pricing and volume fuel options, and contracts that include physical power offtake, tolling and power price hedging to lock-in margins.
Edited from Press Release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/coal/23062015/a-new-enterprise-is-launched-2457/