Large commodities trading group formed
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An international commodities marketing and trading enterprise was formed by Murray Energy and two others recognized as among the leading coal marketing and trading, coal production and sales and electric power generation entities in the world.
London-based Javelin Global Commodities Holdings LLP will be owned by Murray Energy Corp. and E.ON Global Commodities SE of Germany.
The companies said in a news release the primary focus of the venture will be on coal and electric power, but 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 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 U.S. longwall coal producer, grew through its 2013 acquisition of Consolidation Coal Co., producing 62 million tons of high quality, thermal coal in 2014. This year, Murray Energy invested in Foresight Energy LP, which produces 25 million tons of coal per year. Murray’s combined annual production is 87 million tons of coal, primarily from the Illinois and Northern Appalachian basins.
E.ON, already a leading commodities marketer, is active in electric power, natural gas, carbon, LNG, freight and coal trading.
“We could not be off to a better start with such key players in the coal and other commodities markets supporting us,” said Peter Bradley, CEO of Javelin. “The onset of shale gas production has changed the energy landscape in the U.S. 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.”