6. found it necessary to open up new faces in order to obtain the flexibility needed to deliver properly sized ore to these mills. Production at both the mine and the mill is increasing and we hope to achieve a normal operating rate in the near future. Currently we expect to ship 76 million pounds of copper in concentrate to the Japanese smelters in 1972 and some 100 million pounds in 1973. We may have to accept some increase in the smelter charges as other copper companies supplying Japan have done. Turning from volume to margins, we must consider selling prices and the currency in which they are paid, costs and the currency in which they are incurred, and the degree of protection afforded by escalation clauses where they are applicable. In iron ore the contract price is generally firm and without escalation, Cedar City being the exception. All iron ore sales contracts are in U.S. dollars and at Goldsworthy and Marcona a substantial portion of the costs are in Australia dollars and Peruvian soles respectively. The Australian dollar has been revalued 6. 55% upward and this hurts the Goldsworthy margin. Goldsworthy's unit costs will also rise appreciably because of the lower volume anticipated, for a substantial portion of these costs are fixed. Although we anticipate lower margins at Goldsworthy, we do expect better margins at Marcona where mining operations in 1971 were hurt by production lost from strikes and by the high ocean shipping rates that prevailed early in the year. In coking coal we are also affected by the devaluation of the U. S. dollar but here we expect relief from the Japanese buyers. With uninterrupted operations coking coal margins should be well maintained.