Both the Atomic Energy Commission forecasts and those from informed private sources indicate that the potential demand for uranium cannot be met from existing reserves but must depend upon production from new discoveries to fulfill the indicated deficiency. This suggests growing firmness in the price structure and larger markets as the demand increases. It is against this strong economic outlook that the company has made this additional commitment to more than double its uranium production capacity. GOLDSWORTHY Turning next to Mt. Goldsworthy in Western Australia, the indication of additional iron ore reserves has prompted Mt. Goldsworthy to consider the first phase of a planned expansion that would increase the production capacity from the present 4 million tons annually to around 6 million tons by mid-1970, subject to obtaining additional long-term contracts that would justify going forward. Offers of additional ore to the potential Japanese purchasers have been made, and the latest information indicates that the Japanese steel companies will consider them later this year. It is too early to predict the outcome but we are hopeful of being able to conclude the matter on a satisfactory basis. NAVAJO Under contracts concluded earlier we are in the process of expanding our Navajo mine from its present capacity of 2 1/2 million tons a year to 8 1/2 million tons, and this program is on schedule. The additional coal is to be consumed -8-