Interior Department Approves Massive Navajo Coal Mine Expansion
September 1, 2026 - The federal government on Monday approved a massive expansion of a coal mine in northwestern New Mexico — which could extend production at the mine by more than a century and produce roughly 503 million tons of coal.
The Navajo Mine, around 22 miles from Farmington, could produce coal at a rate of 5 million to 15 million tons per year, depending on demand, according to the Office of Surface Mining Reclamation and Enforcement. That's the "largest amount of coal authorized to be mined on Indian land in one permit," the agency said in a statement.
The new permit boundary encompasses around 11,500 acres.
The move is part of the "energy dominance" agenda of the Trump administration, which has thrown its support into reviving and expanding the domestic coal industry, despite its status as the most polluting fossil fuel. President Donald Trump often has pointed to what he calls "clean, beautiful coal."
The expansion of the Navajo Mine has divided residents, with some championing the economic effects and critics raising concerns about pollution and other health issues.
"We are committed to ensuring that permitting decisions for surface mining on Indian lands are transparent and based on rigorous environmental review," Lanny Erdos, director of the Office of Surface Mining Reclamation and Enforcement, within the Department of Interior, said in a statement.
"The public participation and public scoping process allowed us to gather valuable input that will help ensure any actions taken honor the sovereignty of the Navajo people, respect their land, and carefully consider potential environmental and community impacts, while also providing the baseload energy to power a nation," Erdos said.
According to the federal government's "record of decision," the agency received comments from 32 people, some of whom raised concerns about the impact to air quality, human health, water quality and more.
A major impetus for the government's decision was economic, according to the document. The Navajo Nation otherwise was set to lose out on revenue from the Navajo Mine after current permits expire in 2041; the mine accounts for around a quarter of the tribe's general fund.
The federal government acknowledged in the record of decision the cleanest option environmentally would be to deny the permit. A spokesperson for the Office of Surface Mining Reclamation and Enforcement told The New Mexican the agency is "committed to responsible stewardship of the environment while fostering energy resilience."
The permit will have to be renewed every five years and would have a "right to renewal," a spokesperson for agency previously said, unless the terms aren't being met or the mine is violating environmental standards.
Navajo Transitional Energy Co., the enterprise arm of the Navajo Nation, operates the Navajo Mine. The company in 2019 became the third biggest coal producer in the U.S.
The mine currently has just one customer, and that power plant has an uncertain future.
The Navajo Mine sells coal to the Four Corners Power Plant, which is operated by Arizona Public Service. The plant was scheduled to retire in 2031, but the Arizona utility now considers continuing its operations until "no later" than 2038 to ensure energy reliability as the state grows.
A spokesperson for Arizona Public Service didn't immediately respond to a request for comment.