8. Within the framework of this basic management philosophy Utah Construction & Mining Co. has emerged as the kind of a mining company we designed it to be. Although it is differently designed from other mining companies, we contend that it is well designed to serve the continuing long range interests of its shareholders. Utah has demonstrated its ability to discover the minerals it seeks. The minerals that it has sought and found are those serving growing markets, and this has made it possible to increase profits by expansion of existing mines as well as by bringing in new mines. Industry estimates point to production of steam coal in the Far West increasing from 15 million tons in 1970 to 59 million tons in 1980. Utah's uranium production is sold out through 1975 and the free world market growth for uranium oxide is expected to increase from 37, 000 tons in 1975 to 73, 000 tons by 1980. The imports of coking coal into Europe and Japan anticipate a growth from 79 1/2 million tons in 1970 to 136 million tons by 1975 with exports from Australia expected to more than double during this period. Sea-borne iron ore, which increased from 152 million tons in 1965 to 204 million tons last year, is expected to hit 440 to 500 million tons by 1980. Much of our output goes to Japan, and this is a source of strength or weakness, depending on your viewpoint. You can't have it both ways and, although we expect the Japanese economy to slow down, we believe that its growth rate for the products we sell will still exceed by a sub-stantial margin that of the rest of the industrialized world. Peru excepted, our mines are in politically stable countries. In Peru we are experiencing unauthorized labor stoppages that are interfering with production but the government in Peru has thus far not taken discriminatory actions particularly adverse to our interests. Utah is engaged primarily in the mining and, where applicable, the concentrating or beneficiating of ore. We are not engaged in its smelting or refining nor do we intend to be. We are not seeking vertical integration at this time, believing we can employ our capital and our skills more profitably in doing more of what we are doing. Our company operations are capital intensive with relatively low labor content. We are a low-cost producer and others envy the margins we enjoy. The prices for steam coal, coking coal, iron ore, and uranium are set on a negotiated basis and not subject to the wide swings in world prices that characterize the market for the major non-ferrous metals.