by two new generating plants, each having a capacity of 755 megawatts. The first of these new units is scheduled to start operations by mid-May 1969 and the second one year later. No progress worthy of reporting has been made on additional sales from this source but we continue to be in touch with and answer inquiries from potential customers who have continued to show interest in contracting for a substantial portion of the large remaining uncommitted reserves at Navajo. ISLAND COPPER Our exploratory and development work continues to go forward on Vancouver Island, and we anticipate completing feasibility studies on this Island copper deposit some time in the Spring of this year. Until this report is in hand, we can only say that our additional work has been encouraging and has tended to confirm or enlarge our initial appraisal of the size of the mineral deposit, the grade of the ore, and the size of the operation that it would support. While my letter of August 1968 indicated the possibility of a mill capable of treating 20, 000 tons of ore daily and a possible investment of $3 8 1/2 million, we are now studying the feasibility of larger scale operations with attendant increased investment costs. Subsequent developments on this project will be reported to you when it is timely to do so. QUEENSLAND I am particularly pleased to report to you that our plans for mining metallurgical coal in Central Queensland have materialized and in a more favorable fashion than we had -9-