the equity stock, and the Mount Goldsworthy project, in which we have a one-third interest. Virtually all of the output of Utah's Cedar City operations is sold under long-term contract running until 1975 with U. S. Steel, supplying a portion of the requirements for its Geneva plant at Provo. Shipments of 545, 000 tons during 1966 were down from their normal level of 600, 000 tons annually and well below the 690, 000 tons in 1965 when strike threats resulted in anticipatory buying. This caused our earnings from this source to decline. Marcona Corporation last year produced 6-1/2 million tons of beneficiated iron ore from its extensive deposits in Peru. This ore, which serves all the principal steel producing centers of the world, is shipped through a Marcona subsidiary, San Juan Carriers, which operates one of the world's largest bulk shipping lines. Last year, San Juan carried around 78 billion ton miles of freight in specialized ocean carriers of which approximately 37% was hauled in 8 company-owned ships aggregating 438, 000 deadweight tons and the balance in chartered vessels. Although shipping profits increased in 1966, start-up costs of a new pellet plant at the Marcona mine and slightly lower shipments caused our share of Marcona earnings after distribution of taxes to decline slightly to $4, 143, 000. The Mt. Goldsworthy operation began shipments to Japan in June 1966 from its new mine in Western Australia. As anticipated, this operation made no contribution to Utah's profits on the 500, 000 tons shipped this fiscal year because of the usual start-up expenses and write-off of certain pre-mine -5-