As an extensive global trader and supplier of steam coal, Javelin can buy directly from producers ex-mine or free-on-board. We consequently supply the coal by ocean freight to clients either at discharge port or directly to customers' power stations by barge or rail cars.
Javelin enters into short-term and long-term fuel supply agreements where we are able to provide flexible delivery volumes dependent on customer’s demand. In addition, we tailor the price to the client’s individual needs through fixed price, indexed price or even price linked to customer’s underling revenue stream (such as power) to help reduce the margin compression caused by the volatility in the input and output commodities.
Javelin enters into short-term and long-term coal offtake agreements with producers, giving the producer access to Javelin’s global network of clients. We are able to provide short or long-term structures with flexible delivery and pricing structures tailored to the supplier’s needs. When required, Javelin is willing to provide capital for the delivery chain in a form of prepay, or by taking delivery further upstream such as into stockpile at the port.
Javelin is capable of providing delivered station gate fuel contracts, managing all aspects of the physical delivery including ocean freight, barge or rail logistics as well as the delivery of pre-blended products at ports globally. For producers, we are able to combine multiple supply sources to move low cost product to export and to manage regular monthly shipments by rail or barge, allowing the client to benefit from economies of scale in the logistics chain.
The coal market is undergoing dramatic changes where the importance of one coal in a fuel mix can vary depending on a multitude of variables. These variables include local and global supply and demand, local and global emission requirements, and shipping and logistics costs from origin. As a result, coal consumers need to constantly test new types of coal to ensure they are benefitting from the lowest fuel cost specific for the location of the station.
Our team of leading boiler experts work alongside our commercial teams to identify new sources of coal appropriate to test at power stations. We then work alongside our client’s production team to support them through the trial process. Once the coal has been successfully tested, we offer a reduction in price for adding this fuel to the product mix under a pre-agreed fuel agreement.
The same technical team can also support producers when bringing a new coal product to market by introducing it to the right clients and supporting the fuel process.
The technical teams also support the coal teams and clients to address any problems with quality and resolve any other issues.
Javelin has extensive experience in supporting clients in designing the technical coal specifications for any boiler as well as providing long term fuel supply to match their fuel specifications needed. It is critical that the boiler fuel specification matches the lowest cost fuel of the future delivered to the location of the power station. Our commercial and technical teams work with the designers to maximise efficiency by minimising upfront capital expenditure whilst minimising long term operating costs.
As part of the process, Javelin is able to work with local authorities and developers to design power purchase agreements with embedded fuel price adjustments that can be easily hedged using international fuel indices.
With the extensive balance sheet and low cost access to funding, Javelin is able to invest capital to support customer activities. This can be as simple as prepayments or delayed payment terms. We can also offer more complex structures such as customer inventory financing or more sophisticated debt and equity products.