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The tribe and operator BHP Billiton said they had outlined a plan to transfer ownership of the Navajo operation near Farmington by June 2013.
BHP will continue to operate the mine, which supplies the power for one of two power facilities on the reservation, until 2016.
That plant, Four Corners, gets its supply coal solely from the Navajo operation.
It is operated by the Arizona Public Service Company.
Navajo Nation Council speaker Johnny Naize told the Associated Press Wednesday that making the move would prevent a revenue loss for the tribe and also save their members’ jobs.
A BHP spokesman told the news service that a sale price for the surface operation had not yet been set.
