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Show Production (long tons) 1973 10,006,000 1972 7,333,000 1971 3,467,000 1970 3,005,000 1969 1,867,000 Coking Coal Coking coal, or metallurgical coal, is a product characterized by qualities suitable for use in the steel making process. Utah's interests in coking coal are represented by a 90% ownership in Utah Development Company, an enterprise operating in Australia. The remaining ownership of Utah Development is held by Australians. Utah Development Company carried out an extensive coal exploration program in the early 1960's to locate those areas where coking coal reserves might be profitably developed. Utah subsequently obtained exploration rights from the State of Queensland over a large area of potential coal land, and in 1964 development of the company's first coking coal mine was commenced. Utah Development currently operates three coking coal mines in the Bowen Basin of Central Queensland, capable of producing 14 million tons annually. A fourth mine is scheduled to commence shipments early in 1975, increasing the aggregate design capacity to 18.5 million tons per year. All of the mines are modern open-cut operations with efficient coal preparation facilities to improve the quality of the delivered product. These coking coal mines serve as important and reliable supply sources for the Japanese and European steel mills. The Blackwater mine, first of the existing mines, is wholly owned by Utah Development, while newer mines at Goonyella, Peak Downs and Saraji are 85%-owned by Utah Development with the balance held by Japanese interests. Blackwater, from which initial shipments were made in 1968, was originally developed to supply 1.5 million tons annually to the Japanese steel industry. Later sales arrangements justified expansions of the Blackwater operation and the installation of additional rail and port facilities. In 1973 shipments from the Blackwater mine were at a record high of 3.3 million tons. With a recent expansion of mine and shipping facilities, future production increases are expected. In order to meet sales contracts for the annual delivery of an additional seven million tons of coking coal to Japanese buyers, Utah began development of two new mines to be located at Goonyella and Peak Downs in 1969. A mine-to-port railroad, the new port of Hay Point and the town of Moranbah were all built at a scale to accommodate both mines. The port of Hay Point, constructed by Utah, is among the most modern of the world's coal loading facilities. Vessels of up to 120,000 DWT in size can be accommodated and coal is loaded at the rate of about 75,000 tons per day. Situated 150 miles north of Blackwater, the Goonyella mine made its initial shipments in late 1971. Its entire anticipated output of four million At the Goonyella mine in Queensland, Australia, overburden is loosened by drilling and blasting prior to being moved by four draglines, which have a combined annual capability of moving up to 66 million cubic yards (51 million cubic meters). 6 |