- Allegiance Coal (AHQ) appoints Javelin Global Commodities as the exclusive marketing and sales agent for its coal production in Alabama, USA
- Javelin will market coal from both Allegiance’s Mary Lee and Blue Creek coal produced at its operating Black Warrior mine and its proposed Short Creek mine
- Under the agreement, Javelin will also provide logistics management services and up to US$25 million (A$33.5 million) in rolling finance
- Under the contract, Javelin will be entitled to an undisclosed fee based on a percentage of the achieved sales price for the sales and marketing and logistics services
- AHQ shares are steady, trading at 62 cents
Allegiance Coal (AHQ) has appointed Javelin Global Commodities as the exclusive marketing and sales agent for its coal production in Alabama, USA.
Javelin will market coal from both Allegiance’s Mary Lee and Blue Creek coal produced at its operating Black Warrior mine and its proposed Short Creek mine.
In the agreement, Javelin will also provide logistics management services including managing the entire logistics chain from the moment the coal is loaded on the barge to the sale to the end customers.
Financially, Javelin will provide up to US$25 million (A$33.5 million) in rolling finance for inventory once landed at port and receivables once loaded in the vessel.
Chairman and CEO of Allegiance Mark Gray calls Javelin a “recognised and highly respected global commodity trading house” that has managed projects that produce over 50 million tonnes of coal per year.
“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,” Mr Gray said.
Mr Gray also commented that a partnership with Javelin will “extend [the company’s] brand with the global steel mills and improve [Allegiance’s] working capital financing”.
Under the contract, Javelin will be entitled to an undisclosed fee based on a percentage of the achieved sales price for the sales and marketing and logistics services.
AHQ shares were steady, trading at 62 cents at 12:46 pm AEST.