Sustaining a Nation: How Navajo Transitional Energy Company Impacts the Navajo Nation
By Lauren Burgess, Head of Communications, NTEC
In the spring of 2013, disputes between Navajo Mine owner, BHP Billiton, and Four Corners Power Plant owner, Arizona Public Service, threatened to shut down both the mine and the plant. The effects on the Navajo Nation would have been devastating, amounting to losses of more than $30 million in royalties annually to the Nation, over 600 Navajo jobs and billions flowing through the Navajo economy.
In an unprecedented move, to assert sovereignty over their natural resources and prevent economic devastation, the Navajo Nation formed Navajo Transitional Energy Company (NTEC) to purchase the Navajo Mine and, eventually, a 7% stake in the Four Corners Power Plant. This indeed saved jobs and retained critical revenue, but equally important, it resulted in a corporate partner with a long-term vested interest in the nation.
Since then, NTEC has grown to be the third-largest coal producer in the United States, with its acquisition of Cloud Peak assets in the Powder River Basin. NTEC coal is delivered to customers across the U.S. and to Asia, which strengthens NTEC’s position in the industry and provides new opportunities to the nation. Continued growth means continued investment by NTEC, in time and money, into the Navajo community — $132 million in 2022, to be exact, in direct royalties, taxes, contributions, wages, scholarships and in-kind donations. NTEC has an entire team dedicated to working with the community through energy planning, development, crisis response, celebration and tradition. Proud to be Navajo-owned, NTEC has never lost sight of its founding purpose — to improve the lives of the Navajo people.
NTEC Core Values
Navajo Transitional Energy Company was founded on four core values that illustrate a commitment to the Navajo Nation and its people. These values are the cornerstone of everything NTEC does, from how it runs its business to how it cleans up the environment. These core tenets are: “Do the Right Thing,” “Empower People and Communities,” “Create Multi-Generational Solutions,” and “Operate a World-Class Energy Company.”
NTEC employs these values in coal operations at the Navajo Mine and Four Corners Power Plant, which today contribute 42% of the Navajo Nation’s General Fund and employ more than 620 people, 80% of whom are Navajo. In addition, NTEC is always evaluating ways to add value to the Navajo Nation through strategic development. The launch of NTEC Helium in 2021 added more than $1.3 million in royalties to the Nation in 2022 and is expected to grow significantly over the next few years. Future developments in lithium, rare earths and renewables are all aimed to ensure that NTEC can continue to provide these crucial revenues to the Navajo Nation.
While the economic contribution is obviously critical, NTEC believes in going above and beyond for Navajo communities. From donating coal to heat homes and empowering Navajo students, to funding local non-profits and supporting cultural events, NTEC is a proud and active part of the communities it serves.
Heating the Hogan
Rich in natural resources but socioeconomically disadvantaged, the Navajo people are some of the poorest in the United States. With more than 40% unemployment and a significant number of homes without running water or electricity, the Navajo have not always benefited from their natural bounty. NTEC strives to change this through initiatives that improve the day-to-day lives of Navajo citizens. These include projects such as adding solar to individual homes on the Nation and the Community Heating Resource Program (CHRP).
CHRP, a longstanding tradition at the Navajo Mine, provides high-quality coal to Navajo families, free of charge, to heat their homes in the winter. This program is lifesaving for families living without central heat during long winter months. The importance of this program was highlighted in 2022, a particularly cold year, when NTEC gave out 16,611 tons of coal worth more than $3.7 million. Coal is distributed at Navajo Mine from October through March, including bulk deliveries to 84 communities to ensure everyone has access. Each year CHRP continues to grow, with more than 12,000 visitors coming to the site last year.
Mining for Potential
As NTEC selects high-quality bituminous coal used to warm homes on the Nation, it also seeks to develop the top talent and potential in Navajo youth. Through scholarships, sponsorships and direct donations, NTEC gives more than $100,000 to Navajo education initiatives each year to provide opportunities for Navajo youth. By supporting costs, or building educational programs, NTEC hopes to prepare the next generation of Navajo youth to lead and grow the nation.
In addition to direct donations to Navajo universities like Diné College, Navajo Technical University and San Juan College, NTEC awards more than 30 merit-based scholarships directly to students planning to study a variety of disciplines related to science, technology, engineering, and math (STEM). The scholarship recipients are Navajo students who demonstrate exemplary academic achievement with plans to pursue a degree or certification in a STEM subject. The funds help students defray the rising costs of higher education.
NTEC also supports primary education through a variety of STEM projects. These include Carbon Rocks! to educate teachers in Navajo schools about carbon technology; Girl Scouts STEM Camp; and a variety of STEM-station events at area high schools in partnership with other companies. Beyond the company’s annual events, it supports causes throughout the year that also give to children such as Backpacks for Kids and career exploration programs.
Amplifying Community Engagement
There are many organizations doing great work in and for the Navajo Nation. Non-profits provide children with school lunches, teach healthy habits, plant crops, beautify parks, help with taxes, build playgrounds and trails, tackle addiction and so much more. NTEC established the Community Benefit Fund to amplify the efforts of local community groups through funding and promotional support.
Each year, NTEC provides $250,000 to local non-profits that support the Navajo community through microgrants. To date, NTEC has awarded more than $1.8 million in microgrants to support organizations such as the Navajo Way, San Juan County Life Skills Foundation, 4Corners K-9 Search+Rescue, Don’t Meth With Us Foundation and many more. In total, NTEC awards more than 20 microgrants each calendar year. Combined with participation in events, NTEC is present in the day-to-day lives of all Navajo citizens.
Celebrating the Navajo Way of Life
The strength of the Navajo community comes from its people and traditions. Fairs, parades, picnics and other annual events bring together generations from across the nation. They celebrate their heritage, share meals and remember their rich history. More than gatherings, these events serve as important reminders of their past and bring hope for the future. NTEC proudly supports these traditions through sponsorship and volunteerism. The company is dedicated to the continuity of Navajo culture and traditions.
Each year, NTEC is the primary sponsor of the Miss Navajo Nation Pageant. The pageant celebrates the traditions of the Navajo people through competitions in Navajo language, cooking and sheep butchering. It is one of the prime draws to the Navajo Nation Fair, which NTEC also sponsors. The company supports a variety of Navajo fairs throughout the year, participating in the parades, staffing educational booths and sponsoring events.
NTEC also leads Missing and Murdered Indigenous Woman Awareness (MMIW) Week events throughout the Nation. They teach classes on healthy relationships, and self-defense to empower women across the Nation.
These are just a few of the many community events that NTEC supports. The Navajo Nation has a proud and colorful history. NTEC is committed to continuing that legacy. Whether the company is helping to heat a home, offering educational opportunities, supporting non-profits, or continuing traditions, its focus is on the health, wealth and happiness of the Navajo people.
From the beginning, Navajo Transitional Energy Company has been owned and operated for the benefit of the Navajo Nation. That remains the focus today. Through strategic investments, dedication to the community and innovations in clean energy, NTEC plans to continue this work well into the future.