14 October, 2019
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, 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.’