MDU Resources Group Inc.’s subsidiary Knife River Corp. has acquired substantial additional aggregate deposits in Texas, which will augment existing company operations and enhance its ability to sell aggregates to third parties.
The 570 acres of land near Marble Falls, Texas, were purchased from Capitol Aggregates Inc. Financial details of the acquisition were not disclosed.
The “Honey Creek” property has access to a major rail line, and Knife River anticipates adding a rail loading facility to the site to transport aggregates to existing company locations in Waco, Bryan and Beaumont, Texas, as well as to third parties.
Knife River is pursuing the necessary permits to harvest the aggregates. Once permitted, Knife River expects this source will provide an approximately 40-year supply of high-quality aggregates to Knife River’s existing Texas markets.
“This acquisition supports our strategy of focusing on vertical integration,” said David L. Goodin, president and CEO of MDU Resources. “High-quality construction materials are centrally important to Knife River, and we believe that growing our aggregates position in Texas and owning more of our source rock is a good business decision.”