Historical Comment The Utah Construction Company, as it was known until 1959, was founded in Ogden, Utah in 1900. As its earlier name would imply, the company was formed to participate with those who would satisfy a demand for civil engineering projects that characterized the development of the Western United States at the turn of the century. Successful in that phase of its development, the company was soon to become a world leader in the heavy construction field. Today Utah Construction & Mining Co. is essentially a mining company, operating on an international scale. However, its activities are not confined to that industry, as evidenced by an interest in a fleet of owned and chartered bulk cargo ships, a sizeable investment in dredging equipment and California real estate, and an interest in a lim-ited partnership engaged in construction of commercial buildings and facilities. The dredging and commercial construction are all that remain of Utah's construction in-terests, as its heavy construction activities were sold in 1969. Earnings Trend Up Sharply As the emphasis at Utah has moved away from construction and turned toward a heavy commitment in mining ventures, the character of the company's financial per-formance has changed radically. From the outset, the fortunes of the construction industry were such that the company's earnings varied widely from year to year, usually approaching an annual level of $2 million in good times. Finally, in the com-pany's 50th year, this upper limit was broken, setting the stage for the surge in the growth in earnings levels that has been enjoyed since that time, most particularly in the past seven years. Utah is now at a point in time where earnings of $30.3 million in 1970 represent record levels, and of equal significance a series of important new operations, or expansions of existing projects, are scheduled to come on stream at various times during the course of the next three years. The backlog of mineral sales, i.e., a reflection of the future mineral product deliveries to be made under existing sales contracts, stands at nearly $2.5 billion, some 35% above the comparable figure of a year earlier, and rep-resents a reliable stream of future revenues. It is significant to note that 77% of this backlog is represented by contracts containing provisions for price escalation designed to reflect changing economic factors. Iron Ore Utah's earliest mining ventures were well represented by iron ore, and today this product still represents an important component of the product mix. Through a 46% equity ownership in Marcona Corporation, Utah participates in the activities of a com-pany that each year produces and sells some 10 million tons of iron ore products throughout the world. This production is drawn from deposits on concession areas in Peru, and output levels there are soon to be increased as a result of a new agreement reached with the government of that country. Marcona also operates a fleet of large ocean carriers which carry its own products as well as bulk cargo shipments for others. An operation in which Marcona has a substantial interest will begin production of iron ore from extensive iron sands holdings in New Zealand later this year. A one-third participation in Mount Golds-worthy Mining Associates provides Utah Development Company, a 90% owned subsidiary, representation in a venture produc- ing in excess of 6 million tons of iron ore per year from Western Australia. By bringing nearby reserves into development, the annual output of Mount Goldsworthy will be increased to 8 million tons by 1973. On a smaller scale, near Cedar City, Utah, the company produces iron ore from its own properties and performs contract mining for another company. Uranium The Lucky Mc mine and mill, in the Gas Hills of Wyoming, were opened in 1958 to fulfill contracts entered into for the sale of uranium concentrates to the Atomic Energy Commission. Shipments to the Atomic Energy Commission were completed in De-cember, 1970, and the future annual production of 2 million pounds of U3O8 is now sold out, through 1975, with some sales into the second half of the decade. Commencing production early this year, Utah's renewed Shirley Basin mine and new mill will have a rated capacity of 2.3 million pounds of U3O8 per year, and as in the case of Lucky Mc, this output is presold through 1975. Initially operated as an underground mine and later as a solution mining venture, this second Wyoming proj-ect will now become an open pit complex with its own new milling facilities, utilizing the most efficient techniques currently known within the industry. Coal The Navajo Mine, in the energy laden Four Corners area of New Mexico, began pro-duction in 1963, providing steam coal at a rate of approximately 2 million tons per year to fuel Arizona Public Service Company's nearby power plant. In 1966, a group of six utility companies entered into an agreement under which new large generat- ing units would be constructed to utilize this vast and low cost fuel source. With the second of the two new generating units now on line, the output of this open cut mine approached 5 million tons in 1970 and is expected to reach its rated annual production level of 8 million tons this year. In Australia, Utah Development Company operates the Blackwater Mine in Central Queensland. An open cut coal mine, with modern coal processing facilities, Blackwater produced nearly 3 million tons of coking coal in 1970, mostly for Japanese buyers. Under approved expansion plans, transportation and shiploading capabilities are to be increased by 1972 to allow the production of this mine to rise to 4 million tons per year. Two other major coking coal projects in Queensland are now under development, and both involve Utah Development Company as manager, with an 85% interest. The first of these is the Goonyella Mine, scheduled to begin operation in mid 1971, with output rising to its planned level of 4 million tons per year near the end of the first 12 months of operation. The second is the Peak Downs Mine, and its development schedule will follow that for Goonyella by one year, reaching its full production level of 5 million tons per year by mid 1973. The two operations will utilize some common facilities and upon completion will represent an investment by Utah of $180 million. Copper Utah holds a 25% interest in Pima Mining Company, which owns a copper mine and an attendant mill and concentrator near Tucson, Arizona. Pima has made significant contributions to Utah's profits and cash flow, and is now in the process of expanding production levels by increasing the mill