rate of 8 million tons annually by 1974 and extension of the existing railway to serve two new mines which will be opened up at Shay Gap and Kennedy Gap. Funds for this program will be obtained chiefly from Goldsworthy's own cash generation. The remaining $350 million added to the backlog in 1970 is represented by the tentative decision of the company to go forward with the coking coal mine at Peak Downs some 35 miles south of Goonyella. The sales arrangement calls for delivery of 34 1/2 million tons at the rate of 1 1/2 million tons the first year and 3 million tons annually thereafter, beginning one year after Goonyella goes into operation. We are confident that the conditions remaining to be satisfied to validate the sales contract will be met this year, and we have arranged standby financing with a group of commercial banks to provide the $57 million of additional capital required. However, we are actually planning to finance this development through raising capital in the Australian market, partly through loans and partly through the sale of a 10% equity interest in all of our Australian mining operations to the Australian public. This is something we are publicly committed to do, and we believe that we have found an acceptable way not only from our standpoint but a way that meets the sometimes conflicting regulations regarding foreign investment of the United States and Australian governments. We have ended the 1960's on a high note with earnings, dividends, backlog, and share prices all at record levels. As we examine the company and its prospects for 1970, we view with a measure of pardonable pride the progress that we have made. We believe that we have forged a company that -7-