West Cumbria Mining and Murray Energy

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West Cumbria Mining entered into “an exclusive marketing and offtake agreement”  with Javelin Global Commodities .whose major stakeholder is Murray Energy on October 14th .  On October 29th the New York Times reported that Murray Energy had filed for bankruptcy.  

West Cumbria Mining say that “The agreement will see Javelin purchasing 100% of WCM’s production output”.   The major stakeholder of Javelin Global Commodities is Murray Energy.  Javelin was founded as a joint venture between Murray Energy Corporation and Uniper. (Uniper has interests in nuclear decommissioning and waste.)

Now CNN business reports that:

‘Nervous and scared.’ Coal workers fear for pensions after Murray Energy bankruptcy

New York (CNN Business)

“Tom Kacsmar worked underground at a coal mine for nearly four decades. The promise of a decent pension and healthcare for life kept him at this dangerous job.

Now, Kacsmar fears those benefits will get washed away by the bankruptcy of Murray Energy, America’s largest private coal mining company.
“I was a proud, hard-working coal miner my entire life. With the stroke of a pen, they’re going to cut my healthcare,” the 76-year-old retiree told CNN Business.
Kacsmar never worked a day for Murray Energy, the mining giant founded by coal king Robert Murray. But like countless other retirees, the fate of his benefits is inextricably linked to the company, which is seeking to “dramatically” slash its liabilities, including $8 billion of pension and retiree healthcare obligations.”

Major force behind Javelin Global Commodities – the new partner of WCM has now gone into the US bankruptcy procedure….hot off the press

West Cumbria Mining entered into partnership with Javelin Global Commodities whose major stakeholder is Murray Energy on October 14th.

Today the New York Times reports….

Credit…Joshua Roberts/Reuters

Murray Energy, once a symbol of American mining prowess, has become the eighth coal company in a year to file for bankruptcy protection. The move on Tuesday is the latest sign that market forces are throttling the Trump administration’s bid to save the industry.

The collapse of the Ohio-based company had long been expected as coal-fired power plants close across the country.

Its chief executive, Robert E. Murray, has been an outspoken supporter and adviser of President Trump. He had lobbied extensively for Washington to support coal-fired power plants.

Mr. Murray gave up his position as chief executive and was replaced on Tuesday by Robert Moore, the former chief financial officer. Mr. Murray, who will remain chairman, expressed optimism that the company would survive with a lighter debt load.

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“Although a bankruptcy filing is not an easy decision, it became necessary to access liquidity,” he said in a statement, “and best position Murray Energy and its affiliates for the future of our employees and customers and our long-term success.”

Murray, the nation’s largest privately held coal company, has nearly 7,000 employees and operates 17 mines in six states across Appalachia and the South as well as two mines in Colombia. It produces more than 70 million tons of coal annually.

But with utilities quickly switching to cheap natural gas and renewable sources like wind and solar power, Murray and other coal companies have been shutting down mines and laying off workers. Murray’s bankruptcy follows those of industry stalwarts like Cloud Peak Energy, Cambrian Coal and Blackjewel.

Murray was most closely identified with Trump administration promises to reverse the industry’s fortunes.

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Mr. Murray contributed $300,000 to Mr. Trump’s inauguration. Shortly after, he wrote Mr. Trump a confidential memo with his wish list for the industry, including shaving regulations on greenhouse gas emissions and ozone and mine safety, along with cutting the staff at the Environmental Protection Agency by at least 50 percent. Several of the suggestions were adopted.

 

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New Partner – Javelin Global Commodities “aims to ramp up its coal trading”

This is PLANNED Under the Irish Sea just five miles from Sellafield – what could go wrong? We need to STOP THIS! 

New partner for West Cumbria Mining. London-based Javelin launched in 2015 and is 34 percent owned by U.S. coal miner Murray Energy, 28 percent owned by German utility E.ON and 38 percent owned by its principal traders, some of whom were previously at Goldman Sachs…
WCM have just published this here:
“West Cumbria Mining is pleased to announce that it has entered into an exclusive marketing and offtake agreement with Javelin Global Commodities.

This agreement represents a major milestone in the development of WCM’s flagship Woodhouse Colliery project and is a key step towards a world class underground metallurgical coal mine. It also demonstrates the confidence that Javelin has in a premium UK source of steelmaking coal and the long-term market demand for this sector critical product.

The agreement will see Javelin purchasing 100% of WCM’s production output and selling this to steelmaking customers in the UK and Europe, on terms which will reduce the payment time for coal deliveries from weeks to days. The structure will free up several million pounds of working capital facility on WCM’s balance sheet, providing significant assistance during the early years of the mine’s production.

West Cumbria Mining CEO, Mark Kirkbride, commented; ‘I am delighted to be able to announce this exclusive agreement with Javelin, following on from extensive dialogue and a very clear joint objective to ensure that Cumbrian steelmaking coal is supplied into the UK and European steel industry via a world class, highly respected specialist commodity trader. This is a key step for the project, and my team and I are looking forward to working collaboratively with Javelin to demonstrate real value and innovation to our customers.’

Peter Bradley, CEO of Javelin Global Commodities, (formerly MD of Goldman Sachs) commented; ‘Javelin is very pleased to be partnering with such an outstanding mining project and with a group of management and investors that have a history of delivering world class mining operations.

I am particularly excited to introduce this strong steel making coal to the domestic UK and European export markets at a time where competitively priced feedstock is needed to support the industry in its efforts to compete with low cost imports of steel. I am confident the project will get the final funding it needs, and Javelin looks forward to supporting West Cumbria throughout the development.”

SUPERFICIALLY this is being given a most shiny PR SPIN.   But there is a lot for sceptics to take notice of.
One of our Keep Cumbrian Coal in the Hole colleagues has made the observations that:
“Firstly, Javelin has been going less time than WCM has.  Founded in 2015 it has a complex control and accounting structure but it is essentially a couple of city blokes backed by a German finance company and a US coal company.  Secondly, you can see from both Kirkbride’s and Bradley’s comments that they are having difficulties getting funding and for why that might be you only need to research Sirius Mineralsover in the NYMNP.  Thirdly, Javelin has picked bad’uns before, see here.  Finally, Murray Energy, the coal company, are the main backers of Javelin and they are in deep trouble.  All in all they can spin it up but this looks like desperation from both of them.”