6- term of the agreement runs approximately 35 years from the time when the first two units go into operation but may be extended up to 55 years if the utility company exercises all its options. Initial coal requirements would be about one million and a half tons annually, could reach 3.6 million tons if the options are exercised. We view this contract as an important step forward for several reasons. First, it is the largest single contract ever signed by our company in terms of gross revenues involved. Second, the contract provides for the sale of energy units, not tons of coal, and we hold the hope that we may find additional profitable uses for this large reserve of hydrocarbons in the field of coal chemicals. Third, it gives us a long-term stream of earnings derived from the relatively stable utility industry serving the rapidly expanding Phoenix area. Next to mining, our largest source of profits comes from our 41-1/4% ownership of Compania San Juan, S. A., a Panamanian corporation, with ownership common to Marcona, This company is responsible for the sale and transportation of iron ore purchased from Marcona f.o.b. Peru and sold on a delivered basis to steel mills in the United States, Europe, and Japan. The bulk of the transportation is now provided by vessels chartered from Cia, San Juan's wholly-owned Liberian subsidiary, San Juan Carriers, Ltd., which owns five large specialized bulk carriers aggregating 176,000 dead weight tons and has a sixth vessel of 18,000 tons being built in a Japanese shipyard. The balance of the shipping requirements are provided by charters on the open market. Backhaul cargoes are taken when it pays to do so and range from a long-term contract of affreightment with Standard of California to carry Sumatra crude to California refineries