London, Dec 13, 2017 (PR) - Blackjewel LLC (“Blackjewel”), Javelin Global Commodities (“Javelin”) and Uniper SE (“Uniper”) announce the formation of a joint venture called Blackjewel Marketing and Sales Holdings LLC (the “Joint Venture”).
The Joint Venture will market 100% of the thermal and metallurgical coal produced at Blackjewel’s mines, via exclusive marketing arrangements with Javelin for the domestic and export sale of metallurgical coal and domestic sale of thermal coal and Uniper for the sale of export thermal coal. Javelin and Uniper will provide hedging, logistics, execution and optimization services to Blackjewel through the Joint Venture which will be managed by Javelin. Blackjewel’s agreement to market coal with Noble will be cancelled.
Blackjewel is a leading Central Appalachian coal producer, with 28 mines, 5 wash plants and 7 loadout facilities on the CSX and NS railroads located throughout Kentucky, Virginia and West Virginia. The portfolio currently produces 5 million tons per annum and is expected to grow to 11 million tons per annum by 2020, of which 7 million tons will be metallurgical coal. In addition, Blackjewel recently acquired the combined 35-40 million ton per annum Bell Ayr and Eagle Butte mines located in Wyoming from Contura Energy. All of Blackjewel’s mine production will be marketed through the Joint Venture.
Jeff Hoops, Chairman, President, and Chief Executive Officer of Blackjewel, said: “Blackjewel is extremely excited to have the opportunity to partner with Javelin and Uniper. We expect the Joint Venture to make an immediate impact by developing new strategies for marketing our thermal and metallurgical coal in both the domestic and export markets.”
Peter Bradley, Chief Executive Officer of Javelin noted: “We are honoured that Blackjewel have placed their trust in us to help carry out their strategic vision to manage and market coal for the Joint Venture, and in addition we are delighted to further our strategic partnership with Uniper. Javelin’s marketing agreement helps expand our range of metallurgical coals for our customers in the domestic and international steel industry. We are particularly pleased to work with a company like Blackjewel, which has such a strong history of growth and broad suite of high quality met and steam coals, which fits well with Javelin’s desire to become a dynamic force in the global coal markets.”
Keith Martin, Chief Executive Officer of Uniper Global Commodities SE, said: “We’re delighted to have secured a stake in the Joint Venture. It’s the ideal marriage of assets and know-how, coupling our coal and freight hedging and optimization expertise with a leading 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 U.S. coal markets.”