under the amendment stretching out our contract. In 1963 Utah began delivering coal from its mine in New Mexico to fuel two 175 MW generating plants built by Arizona Public Service at the mine site. A year later Arizona Public Service added another 225 MW plant, and profits from this operation were at an all-time high in 1965 since this was the first complete year that the enlarged capacity was in operation. However, earnings from this source in the first six months of 1966 were below the level of the previous year because of a breakdown in one of the turbines which forced the closing of one of the 175 MW plants. This unit will be out of production approximately six months during our fiscal year while the repair is being effected. This is the kind of a breakdown that occurs rarely and before long the Navajo mine will again be making its full and valuable contribution to Utah's profits. NEW MINING DEVELOPMENTS While they have not yet had any impact upon our income statement, three additional mining operations should be given special mention, for they will play an important role in the years ahead. The first of these is the Mt. Goldsworthy iron ore mine in Western Australia, which is being developed in equal interests by Cyprus, Consolidated Gold Fields, and Utah. With a subsidiary of Marcona negotiating the sales and handling the C&F portion of the ocean shipping, a 7-year contract for the sale of Mt. Goldsworthy ore to Japanese steel mills was negotiated and calls for deliveries of 1 1/2 million tons for the 12 months ending April 30, 1967 and 2 1/2 million tons yearly thereafter. - 8 -