OCR

Utah's fuel contract provides for the delivery of energy which will be the equivalent of 1,500, 000 tons of coal annually for 35 years. Arizona Public Service Company has options to extend this term an additional 15 years and to purchase additional fuel as it increases the generating capacity to 800,000 kw. Uranium Operating under contract allocation from the Atomic Energy Commission, Utah mines uranium ore at its Lucky Mc open pit mine and at its underground Shirley Basin mine, processing these ores at its Lucky Mcmill. Shipments from the more recently developed Shirley Basin mine increased during the year, and a continuing reduc- tion in mining and milling unit costs was achieved. Copper During the year Utah began work under contract for Pima on the construction phase of an authorized $4 million expansion program which is designed to enlarge operations and increase the life of the mine by utilizing reserves of lower grade ore. Mineral Development and Geology A. portion of 1962's expedition was devoted to the Mt. Goldsworthy development in Western Australia, a joint venture in which Utah has a one - third interest along with Cyprus Mines and Consolidated Gold Fields of South Africa. Substantial progress had been made and preliminary indications were that this was a major iron ore district containing many millions of tons of high grade direct shipping ore. The mineral develop- ment program also included a substantial amount of field work and drilling on a potential coking coal field in Queensland, Australia, and on an iron ore deposit at Dayton, Nevada. At Craig, Colorado, development drilling established the existence of a sizable reserve of economically strippable coal. 1962 Balance Sheet Current Assets $ 29,409,241 Investments 53,331,469 Other Assets 7,980,267 Construction and Mining Equipment 28,985,010 $119,705,987 Current Liabilities $ 15, 499, 018 Long-term Liabilities 40,882,685 Stockholders' Equity 63, 324, 284 $119,705,987