7. efforts to discover new uranium deposits. 3. Our other entry in the energy field is steam coal usable in the generation of electricity or as a feed stock for the production of synthetic natural gas. Our Navajo Mine supplies five electric generating stations in the Four Corners area and annual sales depend upon the operating rates of these plants. 1972 volume was below normal because some of the units were down for the installation of air pollution control devices. With this equipment in place and operating, we anticipate a modest improvement in 1973. Beginning in mid 1973 we will realize additional earnings from contract mining in the Navajo area, for we have agreed to mine Western Coal Company's reserves with our personnel and equipment and deliver such coal to the San Juan Power Plant now under construction and owned by Public Service Company of New Mexico and Tucson Gas and Electric. Annual volume is estimated at 1,300,000 tons. 4. Copper earnings are the most volatile and most unpredictable segment of our operations. Copper prices change in strange and wonderful ways that often defy logical analysis. There are two major markets and market prices -- the U. S. Producers' Price, now the basis of settlement for about 2/3 of Pima's current production -- and the London Metal Exchange, the basis of settlement for all of Island Copper's production which is sold to Japanese smelters. A long range appraisal of copper supply and demand would indicate a modest but digestible surplus of copper through at least 1975 if world copper facilities operate near capacity. The problem is that they rarely do and production lost for a wide variety of reasons in Chile, Peru, Zambia, Rhodesia, or the United States can convert a surplus into a