Navajo Nation purchases coal mine for $85 million

BHP Billiton Ltd. ( BHP ) has signed an agreement to sell a coal mine in New Mexico to the Navajo Nation for roughly US$85 million, part of the mining giant's ongoing efforts to drive down costs and exit smaller operations around the world. A pact between the Australian company and the Native American group had been delayed in mid-June by proposed reforms in Arizona's electricity market. However, the Arizona Corporation Commission last month agreed not to push ahead at this time with the deregulation of the market. "There's nothing of consequence to be negotiated any more; there's just a lot of paper work to go through," said Craig Moyer of law firm Manatt, Phelps & Phillips, who is lead counsel for the Navajo Nation. Mr. Moyer in a telephone interview said the sale is expected to be completed Dec. 1. Ben Shelly, president of the Navajo Nation, in a statement said the agreement would protect more than 800 jobs and revenue for the group. The mine on Navajo land has supplied fuel to the Four Corners Power Plant for about 50 years, generating revenue for the Navajo Nation of more than US$40 million in 2011. The plant supplies power to New Mexico, Arizona, California and Texas...more