Navajo Nation in Negotiations to Buy BHP Billiton's Navajo Mine

Native News Network Staff in Native Currents. Discussion »

WINDOW ROCK, ARIZONA – The Navajo Nation is set to be begin negotiations now that Navajo Nation President Ben Shelly signed a non-binding Memorandum of Understanding to negotiate the acquisition of BHP Billiton's Navajo Mine located on the Navajo Nation.

To Strengthen Our Sovereignty

BHP Billiton owns Navajo Mine, located near Burham, New Mexico and leases the land from the Navajo Nation.

“The Navajo Nation is in a position to acquire a coal mine, which is part of my vision for the Navajo Nation. Two years ago, we developed an updated Navajo Nation Energy Policy that would guide the Nation through such a transaction. For generations, our leaders have constantly looked for opportunities that would strengthen our sovereignty, and fortify our independence as the Navajo Nation and today we have begun the process of acquiring Navajo Mine,”

President Shelly said.

President Shelly, Navajo Council Speaker Johnny Naize and Deputy Attorney General Dana Bobroff signed the MOU on behalf of the Navajo Nation. Pat Risner, BHP Billiton New Mexico Coal asset president, signed on behalf of BHP Billiton.

“This is a giant step for the Navajo Nation. However, we must exercise our authority to ensure the Navajo Nation and its citizens will benefit from the acquisition of the mine. There are many issues to consider and we must work diligently to meet deadlines with a thorough and comprehensive understanding of all the issues regarding Navajo Mine, #8221;

President Shelly said.

The Navajo Nation is scheduled to acquire the mine by June 2013, while BHP Billiton would continue managing the mine until 2016. The mine employs about 400 people, of which about 85 percent are American Indian.

The Navajo Nation would buy all shares of BHP Navajo Coal Company, then merge the coal company with a Navajo company yet to be determined. The Navajo owned company would receive all equipment, improvements, workforce, tangible and intangible intellectual property rights, and permits.

Navajo Mine is the sole provider of coal to Four Corners Power Plant, which is owned by Arizona Public Service. APS officials estimate that Four Corners Power Plant would need about six to eight million tons of coal per year to continue the operations beyond 2016.

Last year, Navajo Mine supplied about 8.1 million tons of coal to Four Corners Power Plant, which generated more than$40 million for the Navajo Nation.

“My priority as President of the Navajo Nation is the protection of Navajo jobs. This mine is on the Navajo Nation, and we must do all we can to protect jobs at the mine and Four Corners Power Plant, while maintaining a steady stream of revenue for the Navajo Nation,”

President Shelly said.

posted December 24, 2012 6:40 am est