14. Utah continues an aggressive minerals exploration program primarily in the United States, Canada, and Australia. Among the principal exploration targets are uranium, coal, copper and nickel. Naturally we expect this program to be productive of new opportunities in the future as it has been in the past. Marcona is also aggressively pursuing new mining opportunities outside of Peru and has currently agreed with Japanese companies to construct a new 3 million ton pellet plant in Peru, subject to Peruvian government approval. This program will be financed by the Japanese who will also purchase the pellets under a long term contract. Marcona has surplus funds available for investment and has underway a number of prospects that it is pursuing. Marcona has just acquired Dillingham's aragonite operations in the Bahamas and expects to develop growing markets for this exceptionally pure form of calcium carbonate in serving the cement, glass, and other industries and in beach restoration. Another prospect that is particularly promising concerns a project in which Marcona would have a 49% interest with a Brazilian company to mine iron ore from proven deposits controlled by the Brazilian company, transport these to the coast by a pipeline to be constructed, and pelletize the iron ore at a plant to be erected on the coast. Engineering and feasibility studies are underway, and the Brazilian Government appears to look on the project with enthusiasm. Based on the information that has been developed to date, the project would appear to offer very attractive possibilities. Given these prospects and others, I would suspect that Marcona's income will expand in the future and that the company may become less rather than more dependent on the shipping side of