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Utah's Headwaters completes sale of coal cleaning plants

Published January 22, 2013 8:58 am

This is an archived article that was published on sltrib.com in 2013, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Headwaters Inc., a South Jordan-based building products company, said it has completed the sale of its eight remaining coal cleaning facilities to Bowie Refined Coal and its affiliates.

Proceeds from the sale include approximately $3.8 million in cash at closing with an additional $10 million to be paid by the end of 2013.

Under terms of the sale, Bowie agreed to pay Headwaters potential royalties and deferred purchase price totaling up to $43.7 million over the next eight years.

"We are pleased to have completed the sale of all of our coal cleaning facilities," Kirk A. Benson, Headwaters' CEO, said in a statement announcing the deal. "In addition to eliminating a distraction from our light building products and heavy construction materials business, this transaction generates cash to further strengthen our balance sheet."

Headwaters' coal-cleaning technology is designed to address the problems associated with more than 6,000 massive heaps of low-grade coal known as "gob piles" that are found in coal mining regions throughout the country.

Untreated, those mounds, which contain an estimated 3 billion to 5 billion tons of coal, are of little value because they contain too much ash, sulphur and mercury.