Murray takes stake in three-prong Javelin

A NEW international commodities marketing and trading enterprise, Javelin Global Commodities Holdings, has been formed by three groups which are involved in coal’s marketing, trading, production, sales and electric power generation.

Lou Caruana

The new London-based company will be owned by veteran worldwide marketing and trading groups Murray Energy Corporation of the US and E.ON Global Commodities of Germany.

While the primary focus of the new venture will be on coal and electric power, there will be expansion into other commodities.

Murray Energy is the largest privately owned coal company in the United States, and E.ON is one of the largest investor-owned electric power and gas companies in Europe. Javelin has entered into a long-term export marketing and domestic advisory agreement with Murray Energy and a long term hedging and credit line with E.ON.

Murray Energy, the leading US longwall coal producer, has grown through its 2013 acquisition of the Consolidation Coal Company, producing over 62 million tonnes of underground mined thermal coal in 2014.

This year Murray Energy invested in Foresight Energy and entered an agreement for the management of its operations, which produce about 25Mtpa of coal.

Murray Energy’s combined production is now at about 87Mtpa, primarily from the Illinois and Northern Appalachian Basins.

E.ON, already a commodities marketer, is active in electric power, natural gas, carbon, LNG, freight and coal trading.

E.ON chief commercial officer for coal, LNG and freight David Finch 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.”

Javelin CEO Peter Bradley said: “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.”

Murray Energy CEO Robert E Murray said “Murray Energy is extremely excited to have the opportunity to become a part of this new venture. We expect Javelin to have an immediate impact by developing new strategies for marketing and trading our coal in both the domestic and export markets.”