(EnergyAsia, October 10 2011, Monday) — Mercuria Energy Group Holdings SA, a wholly owned subsidiary of Switzerland’s Mercuria Energy Group Ltd, said it has completed a financing transaction and partnership with US coal producer Bowie Resources LLC.

Mercuria Energy Group has taken over from another company as Bowie’s primary senior lender and is also providing the US firm additional sources of funding. Mercuria said its other subsidiaries have acquired warrants in Bowie and are providing marketing and risk management services to expand opportunities to optimise current and future sales.

The transaction comes shortly after the re-start of longwall operations at the Bowie No. 2 Mine in Delta County, Colorado in June, concluding nearly three years of new development.

From 2000 through 2007, Bowie produced an average of five million tons per year of super compliance (12,000 Btu – 0.5% sulphur) bituminous coal. With a recoverable reserve base estimated at 40 million tons, Bowie has started a new drilling programme to further define and quantify additional potential reserves.

Mercuria is a privately-owned international group of companies active in investing and trading the global energy markets including crude oil and refined oil products, natural gas, LNG, power, coal, biodiesel, vegetable oils and carbon emissions.

Bowie Resources is a wholly owned subsidiary of Cedars Energy LLC, a privately held energy investment company. Bowie began commercial coal production in 1997 and started longwall operations in 2000.