a range of beneficiated iron ore products and last year shipped approximately 10 million tons of beneficiated products, of which 3. 4 million tons were in the form of pellets. These facilities are currently being expanded and modified to improve the product mix and by the close of this calendar year production capacity should approximate 10-1/2 million tons of which 4 million tons will be pellets. Even more important from a standpoint of its present contribution to profits is the ocean shipping activity carried out by San Juan Carriers Ltd. which owns 10 vessels aggregating 890,000 DW tons, 9 of which are combination ore-oil carriers. In addition San Juan operates approximately 16 other vessels under long and short term charters. The ton miles of freight carried has increased from 3. 3 billion ton-miles in calendar 1953 to 132 billion ton-miles in 197 0. Currently the charter market is extremely strong and San Juan has arranged its fleet to take good advantage of this situation within the constraint that a portion of its fleet is necessarily committed to transporting Marcona ore to market at rates entered into earlier and substantially below the current market. While profits from the Peruvian mine are expected to decline in the current year, earnings from shipping activities should more than compensate the carry Marcona's total earnings into record levels. Utah's share of Marcona earnings has fluctuated over the years. In 197 0 this share amounted to $6.7 million after an appropriate provision for taxes and the establishment of reserves against future losses from a Marcona affiliate engaged in salt mining in Chile. This was down from the record of $8 million set in 1969 but we anticipate that 1971 results will be the best ever. 10.