anticipate that Marcona's earnings will improve because of higher volume and improved product mix. During the year Pima Mining Company embarked on still another expansion of its facilities to bring capacity to 30, 000 tons daily by late 1967. We anticipate that 1967 deliveries will approximate 80 million pounds and with the completion of new facilities will reach 116 million pounds thereafter. This additional productive capacity, combined with continuing strength in copper prices, make us optimistic about our earnings from Pima, even though the ore grade is lower. Coupled with the increase in earnings expected from mining affiliates, we anticipate growing earnings from Utah's wholly-owned properties. In 1966 we entered into a series of contracts, the combined effect of which was to increase our backlog of mineral sales by over $500 million, bringing the total, excluding Marcona and Pima, to over $1 billion. To put this in some proper perspective for you, this represents almost 50 years of sales at the 1966 rate for Utah's mining activities. The first of these was a ten-year contract for the sale of coking coal from our Blackwater deposit in Queensland to Japanese steel and chemical companies. The contract calls for deliveries to commence in 1968 with 500, 000 tons the first year, 1 million tons the second year, and 1-1/2 million tons thereafter. This will require a total investment of $18 million on our part and the work is already under way. We are exploring surrounding areas for additional reserves and investigating the sales possibilities in Europe as well as further sales to Japan. -8-