By Felecia Fonseca | Associated Press
An energy company created by the Navajo Nation agreed Thursday to purchase a coal mine in northwestern New Mexico.
The tribe has an abundance of coal, but the $85 million deal with Australian-based BHP Billiton Ltd. that is expected to close Dec. 1 marks the Navajo Nation’s first venture in the coal mining business.
The tribe formed Navajo Transitional Energy Co. LLC earlier this year to look into buying the Navajo Mine near Farmington, which produces up to 8.5 million tons of coal annually. It is the sole provider of coal to the nearby Four Corners Power Plant, which provides electricity to about 300,000 households in Arizona, New Mexico and Texas.
The amount of coal extracted from the mine and the number of jobs likely will decrease as the plant’s operator, Arizona Public Service Co., follows through with plans to shut down three of the units and acquire ownership of two other units.
