May 18 2007
HEADWATERS INCORPORATED, today announced that its wholly owned subsidiary, Covol Engineered Fuels, LC (“CEF”), has begun construction of another new coal cleaning facility located in Brookwood, Alabama at the Jim Walter Resources (“JWR”) Mine No. 4 site. This plant represents the 3rd coal cleaning facility constructed by Headwaters to date. The facility is expected to clean and recover waste coal fines from the property whose rights were obtained in an acquisition Headwaters announced in May of 2006. CEF designed the process to allow for improved recoveries meeting market product quality requirements. The recovered coal from this under-utilized resource base is expected to be marketed for steam production in utility and industrial boilers.
“We are pleased to have this facility under construction. This facility will be the next in a series of facilities that CEF is planning to build as we continue our goal to produce high quality coal from waste coal resources”, said Ken Frailey, President of Headwaters Energy Services, the parent company of CEF. Jim O’Neil, Sr. Vice President of CEF, continued, “We’re pleased with the additional coal resources which will expand market opportunities.”
The facility should commence operations by the end of calendar 2007. CEF anticipates that this facility will produce approximately 400,000 tons per year of high quality 11,000 – 12,000 btu coal.
In addition to this facility, CEF currently anticipates the construction of two additional facilities in Alabama during 2007, along with the planned construction of its Chinook facility located near Terre Haute, Indiana.