9- the effect of enlarging the reserves that can be mined, increasing the total profits that can be earned, and extending the potential life of these particular mines. Also at Marcona and at Pima we have expanded their capacity to mine and to process ores, making possible greater annual volume. IRON ORE The new agreement with ColumbiaGeneva would not have been possible without the investment in beneficiation facilities. Because the new agreement adds concentrates to the products sold and because Utah agrees to a flexible delivery schedule when steel operations are below normal, annual profits will be somewhat lower. However, the increase in total tonnage sold gives Utah much greater profits than were possible under the old agreement. Utah's Iron Springs mine is tied directly to Columbia-Geneva and its rate of operation will be determined by that company's market for steel in the fast-growing Far West. Marcona, on the other hand, is subject to the factors that influence the worldwide supply-demand ratio for iron ore, for it Competes successfully in all the major steel producing centers of the world. In the past several years there has been a slackening of demand unfortunately timed with the arrival in the market of new sources of supply. Marcona has been able to sell all that it could produce but there has been pressure on margins. However, there are indications of an upswing in demand and the long-range forecasts