I am pleased to report that the acquisition and operation of the Navajo Mine is proceeding according to plan. The Navajo Nation’s leadership is to be commended for having the foresight to protect the economic well-being of the Navajo people, to make a wise financial investment in the mine and to position the nation to transition its economy to a cleaner energy future.
The Navajo Nation is part of the future of a cleaner energy industry. By reinvesting a meaningful portion of its profits, the acquisition of the mine enables the nation to proactively transition its economy from one based on coal-fired electricity generation to a cleaner and more renewable future. The Navajo legislation founding the Navajo Transitional Energy Company and its establishing documents require that the company invest in renewable energy and alternative fuels. Based on current energy policy trends, the long-term outlook for coal-fired power plants is uncertain.
As such, it is a strategic imperative that NTEC invest in this transition to cleaner energy to grow the Navajo economy and ensure that future generations of Navajos can enjoy expanded prosperity.
The Navajo Mine is a foundation of the Navajo economy. In 2013, the elected leadership of the Navajo Nation formed a wholly owned company, NTEC, to purchase the mine from BHP Billiton.
In 2011, the nation’s leadership also approved a 25-year extension of the Four Corners Power Plant lease.
Our leadership recognized that the nation’s largest export is electricity, and that the economic well-being of many Navajos depends on the continued operation of the power plant and the mine.
These two decisive acts of self-determination preserved 800 jobs and more than $35 million of rent, taxes and royalties paid annually to the Navajo Nation.
The mine also purchases more than $40 million in contract services each year, providing more opportunities for the Navajo people.
The closure of the mine and the plant would have devastated the economy of the Navajo Nation and the immediate surrounding area.
Buying the mine was a wise investment. By purchasing the mine, the Navajo Nation has invested in a cornerstone of the regional electric power industry.
While the U.S. coal mining and coal-fired electric power industries struggle, the combination of the Four Corners Power Plant and the mine provide a stable source of reliable electricity to the Southwest region.
The stability of this combination lies in long-term leases, coal supply agreements and the need for base-load power.
For these reasons, the nation’s investment in NTEC and the mine will prove to be a savvy financial decision.
The Navajo leadership determined that the continued operation of the power plant and the mine is in the best interests of the Navajo Nation, as is managing the mine in accordance with Navajo stewardship practices.
NTEC is well positioned to ensure proper reclamation of the mine occurs. The company is continuously engaged in contemporaneous reclamation and is setting aside reserves to pay for the cost of final reclamation.
As a Navajo-owned company governed by a board comprised of a majority of Navajos, NTEC will ensure the land is restored and returned to the Diné.
By acquiring the Navajo Mine and extending the Four Corners Power Plant lease, the Navajo Nation is putting its natural resources to work for the benefit of the Diné.
It has exercised its right to self-determination to maintain a solid economic foundation on which the Diné can build prosperity and take an active role in transitioning the local and broader U.S. energy economy to a cleaner future.
I am honored to be a part of this great endeavor.
Steve Gundersen is chairman of the board of the Navajo Transitional Energy Company and is an enrolled member of the Navajo Nation.
