metallurgical coal in 1966 we reported to you that utah had acquired the right to explore under an australian government authority to prospect a 1600 square mile area in central queensland australia containing potential reserves of coking coal in late 1966 utah formed a joint venture with mitsubishi australia pty limited with utah controlling 85 of the venture for the purpose of carrying out this exploration program intensive exploration and development during the past two years has resulted in the delineation of vast reserves of mineable coking coal an agreement has been reached with the queensland government and has been approved by parliament giving the joint venture certain mining rights to the coal which has been discovered we have commenced negotiating for long-term sales contracts in the japanese market and hope to be able to report favorable results in the near future we anticipate sales contracts which will provide for deliv eries of a minimum of 4 million tons annually over at least a twelve year period an investment of approximately 110 million will be required to pro vide the necessary mining township and port facilities together with 140 miles of railroad construction complete with locomotives and rolling stock the venturers will assume this cost in proportion to their interests in the project utah's share being about 94 million the railroad and part of the port will be owned by the queensland government this will be by far the biggest enterprise and the largest single investment undertaken by utah in its 68 year history but it repre sents an exceptional opportunity metallurgical coal continues to be a premium product which is in growing demand worldwide the japanese steel and chemical industries are the primary markets the deposits are strategically located and the extent to which they will be mined depends on the magnitude of the market that can be de veloped subject to the consummation of satisfactory sales agreements now under discussion the mine could be brought into production for initial deliveries to market during the latter part of 1971 or in 1972 of utah's geologists work at exl lease in northern queensland / vt-s f in teaf •*•* *-«- t — *