4. 500,000 tons to Japan with the hope of shifting this portion of their 1972 overall sales program of 9 1/2 million tons to Europe or the United States markets. However Australian and other iron ore displaced from the Japanese market will also be seeking a home elsewhere, if it can compete in other markets. In coking coal the situation is quite different, for high quality coking coal is not abundant and a worldwide shortage is in prospect. The Japanese had not been able to purchase all the coking coal they thought they would need and consequently the readjustment process is now less painful. Also European mills are becoming aware of the need for new supply sources. The cost structure of U. S. coking coal suppliers has increased substantially with the new labor contract, environmental pressures, and the new safety legislation, and their export pricing has reflected this. With the revision of the Japanese 1975 steel production goal downward, the anticipated quantity of coking coal to be imported in 1975 decreased from 80 million tons to 58 million tons. However the significant change from our standpoint was that the quantity to be brought in from Australia was increased from 27 million tons to 29 million tons, and Utah is the largest supplier. Until recently the Japanese mills have been taking their contract quantity, their 5% optional tonnage, and buying additional quantities in the spot market at higher margins to Utah. Unfortunately labor difficulties prevented us from delivering any spot purchases in the last 13 months, and this hurt our profits again in the first quarter of 1972. We anticipate that the Japanese will continue to take the contract quantities and we have placed the remaining production for 1972 with European buyers on a very satisfactory basis. Our problem in coking coal is one of producing what we have already sold and now with a recently