Navajo Transitional Energy Company Announces New Contract Miner for Navajo Mine
Published December 10, 2015
SHIPROCK, NEW MEXICO – Navajo Transitional Energy Company, LLC (NTEC), a business enterprise of the Navajo Nation, announced Bisti Fuels Company, LLC, a subsidiary of The North American Coal Corporation (North American Coal), as the new contract mine operator for Navajo Mine on December 9, 2015.
“We are proud to bring in an experienced coal mining company to Navajo Mine. Given the unique structure of Navajo Mine, we believe that North American Coal is the best fit to meet our contractual duties with Four Corners Power Plant,” said Clark Moseley, NTEC CEO.
NTEC’s Management Committee approved the Contract Mining Agreement with Bisti Fuels Company, LLC, during their quarterly meeting on Dec. 5.
On December 9, NTEC and Bisti Fuels signed a 15-year contract for Bisti Fuels to provide mining services for NTEC and will begin transitioning into their role staring in January 2016.
“This ensures the Navajo Nation will continue to receive coal royalties and revenues for the coming years,” Moseley said.
Last year, NTEC provided $37 million in royalty and tax payments to the Navajo Nation. In addition, Navajo Mine employs about 320 people, most of whom are Navajo.
BHP Billiton New Mexico Coal, the current operator and a subsidiary of BHP Billiton, is scheduled to exit the mine as the contract miner at the end of 2016.
NTEC expects to mine an estimated 6 million tons of coal a year during the length of the contract. The coal is sold to Four Corners Power Plant, NTEC’s sole customer.
NTEC began the process of seeking a new miner earlier this year. In May, companies submitted proposals to NTEC to operate Navajo Mine. By July, the field was narrowed to four companies, and in October, NTEC began formal contract negotiations with North American Coal.
“We did our due diligence. With each proposing company, we weighed our needs at Navajo Mine against the strengths of each company. North American Coal submitted a compelling proposal which illustrated they could clearly meet our needs. We are proud to have them aboard at Navajo Mine,” Moseley said.
For NTEC, the signing of the Contract Mining Agreement is another step in a series of milestones established by the Navajo Nation to become a robust business entity which provides revenues and jobs.
“This is a move that shows self-determination in action. NTEC was created by our Navajo Nation, and now we are making strides that demonstrate both our strength and our resilience as Navajo people,” said Steve Gundersen, NTEC board chairman.
NTEC was created by the Navajo Nation in 2013 to purchase Navajo Mine from BHP Billiton. The move secured the future of more than 700 workers at Navajo Mine and Four Corners Power Plant, and secured more than $120 million of annual revenue for the Navajo Nation.