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Show Coking Coal (continued) tons per year was dedicated to help fulfill contractual commitments with the Japanese steel industry. By 1973, however, output was increased to nearly five million tons to provide tonnage in excess of the Japanese contract requirements for market diversification. Shipments totaled 600,000 tons to European customers and 120,000 tons to Australian receivers. The Peak Downs mine, which commenced shipments in mid-1972, has a design capacity of five million tons per year. In 1973, the first full year of operations, sales totaled 3.1 million tons, of which 1.6 million tons were delivered to Europe and 1.5 million to Japan. Additional long-term sales agreements concluded in 1972 with Japanese and European buyers have justified the construction of a new mine at Saraji, 15 miles south of Peak Downs, where first deliveries are scheduled for 1975. Design capacity of the Saraji mine is 4.5 million tons annually. Utah Development has under consideration a fifth coking coal operation at Norwich Park. Situated some 30 miles south of the Saraji reserves, this mine would be in a position to share some port and water supply facilities and the new town of Dysart now being constructed for the Saraji operation. Located as they are in relatively unpopulated areas, these mines have required substantial investment in infrastructure, consisting of roads, townships, railroads, water, power and communication services. By financing these facilities and providing substantial rail freight revenues to the State of Queensland, Utah plays an important and constructive role in the economic development of the region. Top right: An aerial view of the Peak Downs mine in Queensland, Australia depicts the mining operation, which has a design capacity of 5 million long tons (5 million metric tons) per year. In the lower right foreground, one of four 60-cubic yard (46-cubic meter) draglines performs the initial step in the coal mining process. Lower right: In the coal preparation plant, coarse coal is treated by heavy-media separation and fine coal is treated by froth flotation to produce a high quality coking coal. 8 |