5- 4. Land development activities have a tough target to hit since 1962 was a record year for this division. It will be hard to duplicate last year's performance. But the story of 1963 would not be complete unless I also brought to your notice some of the steps that have been taken to lay the base for expanded earnings in the future. Much of the decline has resulted from decisions deliberately made with the full knowledge that this year's earnings would be adversely affected, but this seemed to be a reasonable price to pay for the greater profits that will result in the future. Among the more recent developments of special significance in the long run are these: 1. A new agreement with the Columbia-Geneva Division of U. S. Steel which extends the contract by 4. 4 million tons or approximately eight years and modifies the specifications of the products to be delivered so that we may utilize virtually all our remaining iron ore reserves in the Utah area. 2. Notification from Arizona Public Service that it will require 64% more coal from our Navajo Mine to fuel the additional capacity it expects to have in operation by June, 1964. 3. The indicated increase in total pounds of uranium to be sold under the new contract under negotiation with the A. E. C. 4. The end of calendar 1963 will see the completion of an important program for our Peruvian iron ore operations that will expand mining and shipping capacity and make possible the production of premium products from the vast primary ore reserves that cannot