10- call for a substantial growth in the demand for imported ores - the 19 70 level being twice that of 1962. Marcona is in an excellent position to obtain its share of this expanding market because of the quality of its products and its comparatively low costs of operation. Marcona's proven reserves of ore are in excess of 200 million tons, some of which is usable as direct shipping ore. The remainder can be processed to produce a merchantable concentrate. The overall iron content is relatively high, averaging better than 56%, and the ore lends itself easily to economical beneficiation. In 1963 Marcona is marking its first 10 years of operation with the effective completion of a 5-stage 50 million dollar expansion program. Begun in 1960 the expansion program was planned in stages which would enable early production while increasing plant capacity. The completion of this program, late this calendar year, will enable Marcona to process its large magnetic ore reserves and produce premium quality high grade sinter and pellet products. In addition to more than 1 million tons of direct shipping ore, the present annual plant capacity of Marcona is 3 million tons of beneficiated products. By year's end capacity for beneficiated products should approach 5 million tons and total capacity will be 6 million tons a year. Of this quantity 3 million tons will be of a quality unexcelled in any major mining operation known to us. This is an important factor in today's market, for the iron makers of the