To facilitate the introduction of a nuclear power program, the government is consider-ing the possibility of using Mexican supplies of uranium and establishing a domestic capability in the fuel cycle industry. Some intensification of uranium exploration is proposed, and development programs in nuclear fuel technology are planned. The Comision Nacional de Energia Nuclear (CNEN) has undertaken explorations in two areas in the state of San Luis Potosi in Salinas where known deposits of uranium are being studied and in the La Huasteca region in the eastern part of the state where indications are favorable. CNEN has presented a study on the Salinas area to the Ministry of National Patrimony. In November 1969, two agreements were published in the Diario Oficial author-izing CNEN to prepare within one year proposals to exploit uranium deposits at El Rodeo, Durango, and the La Preciosa area near Nazas, Durango. Both deposits are located between the cities of Durango and Torreon. According to the annual report of the President of Mexico presented in September 1969, proven uranium ore reserves increased by 637,144 metric tons in 1969 to reach a total of 4.4 million tons containing 2,800 tons of uranium oxide (about 1.28 pounds per short ton). These deposits were discovered as the result of the exploration work of the CNEN. Coal Mexico's principal coal deposits are in the state of Coahuila near Piedras Negras in the Sabrinas Basin. The coal is Cretaceous age, high ash, weak to moderate coking and is in a structurally complex setting. Mining is accomplished by labor-intensive underground methods. The Mexican government, through its mining agency, is conducting an expanded program of coal exploration and development. With the aid of consulting engineering firms, the government is re-evaluating existing coal-producing regions for the purpose of increasing output and exploring other known but undeveloped areas for future production. Reportedly, a new mining area south of Sabinas shows promise of supporting one or more mines. During 1970, the Coahuila district produced almost 3 million metric tons of bituminous coal, of which about 90 percent was used to produce coke. The increased rate of production in 1970 over 1969 which was only $2.5 million is attributed to the opening of a new mine in Coahuila, modernization of mines in Sabinas and Nueva Rosita, and the resumption of operations at the Barroteran mine, which was closed following a disastrous explosion in March 1969. Partly because of this explosion, Mexico was forced to import 542,000 metric tons of coke and 112,500 metric tons of coal from the United States during 1969. In 1970 imports of coal increased to 151,000 tons while coke imports decreased to 340,000 metric tons. Most of the coke required by Mexico is used by Altos Holnos de Mexico for its Monterey blast furnace operations. 46