Navajo Nation - Economy

Economy

In recent historical times, the Navajo economy was based on sheep and cattle herding, wool and yarn production, blanket and rug production, and turquoise and silver jewelry making. More recently additional arts such as sand painting, feather work, pottery and others have been added.

Mining, especially of coal and uranium, provided significant income to the tribe in the second half of the 20th century. The uranium market slowed near the end of that period, and the Nation has suffered considerable environmental contamination from poorly regulated mines. As of 2005, it has prohibited further uranium mining. The volume of coal mined has declined in the early 21st century. "The Navajo Nation's extensive mineral resources are among the most valuable held by Native American nations within the United States."

An important business within the reservation is the operation of handmade arts and crafts shops to sell the high-quality goods made by the people. A 2004 study by the Navajo Division of Economic Development found that at least 60 percent of all families have at least one member making arts and crafts. The Navajo work at stores and other businesses on the reservation or in nearby towns, and the Navajo government employs thousands in civil service and administrative jobs.

Until 2004, the Navajo Nation declined to join other Native American nations within the United States that had opened gambling casinos. That year, the nation signed a compact with New Mexico to operate a casino at To'hajiilee, near Albuquerque. Navajo leaders also negotiated with Arizona officials for casinos near Flagstaff, Lake Powell, Winslow, Sanders (Nahata Dziil Chapter), and Cameron (the Grand Canyon entrance). The Dine Development Corporation was formed in 2004 to promote Navajo business and seek viable business development to make use of casino revenues.

The Black Mesa and Lake Powell railroad serves one of the coal mines in the Diné region, carrying coal to the Navajo Generating Station at Page, Arizona. Peabody Energy's Black Mesa coal mine near Kayenta, a controversial strip mine, was shut down on December 31, 2005 for its emission credits. This mine had fed the Mohave Power Station at Laughlin, Nevada, via a slurry pipeline that used water from the Black Mesa aquifer.

In early 2008, the Navajo Nation and Houston-based IPP entered into an agreement to monitor wind resources, with the potential to build a 500-megawatt wind farm some 50 miles (80 km) north of Flagstaff. Known as the Navajo Wind Project, it will be the second commercial wind farm in Arizona after Iberdrola's Dry Lake development. The Navajo Council approved the development by overriding a tribal presidential veto in December 2010. Disagreement between the central Navajo government and the local Navajo Cameron Chapter have led to confusion as to whether the development will be built.

The unemployment level fluctuates between an overall 40 and 45 percent for the nation of reported taxed income. In some communities, it can go as high as 85 percent or as low as 15 percent.