4. To supply the production that this backlog calls for the company initiated an expansion program in 1968 running through 1973 under which we expect to spend in excess of $310 million to expand our mining facilities. Of this amount $125 million had been expended at the end of our last fiscal year and we anticipate spending an additional $125 million this year, $51 million in 1972, and the balance in 1973. This is apart from expansion programs being carried out and independently financed by Marcona and Pima. As a result of this program we expect our share of production capacity to increase as follows: Iron ore, up 22% by mid '73; steam coal up 45% this year, uranium up 100% this year; coking coal up 288% by late 1973; and copper up 380% by early '72. Shipments may possibly show somewhat lower gains, certainly in the case of uranium where last year we made shipments out of inventory and in steam coal where not all installed capacity is being fully utilized. Specifically, this capacity increase is being accomplished by bringing in new mines as well as the expansion of existing mining facilities in which we have an interest. The parent company has already completed a program increasing the productive capacity of Navajo Mine to 8 1/2 million tons annually, although we expect shipments will be below this figure based on our experience to date. We are doubling our uranium mining and milling capacity by building a mill at Shirley Basin and converting the mine to open pit operation. The mill is completed and being tested now but the mining program has fallen behind schedule because of a slide in the pit and other difficulties that have delayed our stripping schedule. Work is also under way on the Island Copper mine and mill, and we anticipate that this will be in operation about the beginning of 1972. In full operation we expect it to produce 230, 000 tons of concentrates yearly containing approximately 55, 000 tons of copper metal with molybdenum and possibly rhenium as by-products. The copper concentrates are committed under long term contracts to Japanese smelters. Utah Development Company expects to increase the capacity of the Blackwater mine from 3 million tons to 4 million tons with the new facilities operational by the end of 1972. The Goonyella mine is sized to produce 4 million tons of coking coal with shipments scheduled to begin in the last quarter of this year. The mining facilities, wash plant, and railroad construction are all on schedule but a combination of construction difficulties, labor stoppages, and bad weather have put the construction of harbor facilities behind schedule, and this may cause some modest delays unless these conditions are corrected and overcome. The Peak Downs mine is scheduled for completion a year later with an initial capacity of 3 million tons and increasing to 5 million tons by mid 1973. Mount Goldsworthy, in which Utah Development Company has a 1/3 interest, plans to increase its production from 6 million tons of iron ore annually to 8 million tons by mid 1973. This will be accomplished by opening up two new mines at Shay Gap and Kennedy Gap, extending the railroad, and providing the additional mining facilities.