Mining Operations Utah's wholly owned mines are all in the western part of the United States. Our Iron Springs Mine out of Cedar City, Utah, sells virtually all of its output to the Columbia-Geneva Division of United States Steel Corporation under a long-term contract running until 1968. Our uranium interests are in Wyoming with the principal operation at Lucky Mc in the Gas Hills District and a lesser operation in the Shirley Basin area. Currently we are mining no coal since we closed down our metallurgical coal mine in Arkansas last year, but we are now at work bringing into production a sub-bituminous coal mine in the Four Corners area of New Mexico on the Navajo Reservation. Here we have entered into a fuel agreement with Arizona Public Service Company which has under construction two generating units having a total capacity of 350,000 kw. The agreement between our companies runs approximately 35 years from the time when the first two units go into operation, but may be extended up to 55 years if the utility company exercises all its options. Initial coal requirements would be about one and a half million tons annually and could reach 3.6 million tons as additional generating facilities are added and purchase options are exercised. We expect to commence stripping on this property in 1962 with actual coal shipments beginning in substantial amounts in 1963. Land Development Projects Time does not permit any detailed discussion of our individual land development projects. We own or control some 10,000 acres in California, and these embrace residential, commercial and industrial properties. Our largest holdings are in the San Francisco Bay area. Other significant developments are located near the 6 Vandenberg Missile Base; the Pauma Valley property, which is acreage around a golf course located between Los Angeles and San Diego, and a newly acquired 200-acre parcel of industrial land in El Segundo, California, not far from the Los Angeles Airport. Our land development activities last year and this year have made a modest contribution to our earnings, but we are confident that the present value of our land is substantially in excess of our cost and this added value will reflect itself in profits spread out over future years. Construction Activities Second only to the Mormon missionaries, I believe that our construction people have done as much to make the name of Utah known around the world as any other group. They have not always made the name known as favorably as the missionaries, for there have been instances where our boys did not always observe the word of wisdom. However, for the most part, we have good reason to be proud of the performance of our personnel and their hard work. They have built significant works of lasting benefit to the many countries in which we have operated. Today you will find our people working in the French Congo, in Pakistan, in Australia, in Peru, and other foreign countries, as well as in the United States. While the construction activities of the company no longer are our primary source of income, I am pleased to be able to report to you that our construction staff has not lost its skill. This year we were awarded a special Certificate of Appreciation by the United States Corps of Engineers for the outstanding performance of our group in constructing an important missile project at the Schilling Air Force Base. Our Construction Division utilizes less capital than either Mining or Land Development, but employs substantially more of our people. Quite apart from the results that construction may have achieved as an ac- 7