Jan 18 2007
Headwaters Incorporated announced today that its wholly owned subsidiary, Covol Engineered Fuels, LC (CEF), is beginning construction of a coal preparation facility near Terre Haute, Indiana. CEF has entered into a mineral lease with Resource Land Holdings, LLC, a Colorado-based investment firm, to recover and process nine million tons of discarded coal reserves present at the site. CEF is designing and will soon begin construction of its coal plant, which will recover the valuable coal resources that were originally discarded from the operation of less efficient coal mine preparation plants. The recovered coal from this underutilized resource base will be marketed for steam production in utility and industrial boilers.
Under the terms of its mineral lease, CEF is not assuming any environmental liability, but the Company will perform site reclamation upon the completion of its recovery activities.
This will restore the land, under the rules and regulations of the State of Indiana, to a useful state. “This is an excellent opportunity to add to the resource base of one of our country’s most utilized sources of energy – coal,” said Ken Frailey, President of Headwaters Energy Resources, the parent company of CEF. “And,” continued Jim O’Neil, Sr. Vice President of CEF, “We can do this while promoting good corporate citizenship by restoring the property to a useful state for the benefit of the citizens of Indiana.”
Commencing in the fourth calendar quarter of 2007, CEF anticipates that its plant will produce up to 600,000 tons per year of high quality 10,100 btu coal. The plant and associated field operations will employ 19 people when in full operation.
The Indiana property will add to the CEF portfolio of over 150 million tons of discarded coal in Alabama. CEF is currently upgrading its Alabama facility and anticipates construction of two additional facilities in Alabama during 2007.