10 - make a significant contribution to Utah's earnings. The primary cause of Utah's ability to report a 50% increase in earnings in the first half of 1975 over the comparable period last year was coking coal, now far and away our most important product. Our coking coal interests are held through Utah Development Company, now 89.2% owned. UDC owns 100% of the Blackwater Mine and through Central Queensland Coal Associates 85% of the mines at Goonyella, Peak Downs, and Saraji. All of these mines are in Queensland, Australia. All are surface mines and probably the lowest cost coking coal producers in the world. Together they represent a gross investment of over $US 540 million, over half of which went for infrastructure. Utah International's share of production was about 10 million metric tons in 1974 and is expected to exceed 12 million tons this year and reach 13 million tons in 1976. Most of this coal is sold under long term contracts with approximately 75% sold in Japan and the balance in Europe. Because coking coal prices have sharply escalated since these contracts were made, Utah has negotiated with the receivers several extra-contractual price increases. A price increase for Japanese deliveries was effective April 1, 1974 which raised prices from roughly $20 a ton to $30. Two changes in the European contracts came later and in differing amounts. It is these price increases, coupled with production increases from Saraji and from the three original mines where continuing wet weather and floods had held down production in the first half of 1974, that have caused our first half profits to soar. It was this expectation that has caused us to report to our shareholders that 1975 should be another year of record earnings despite adverse developments in some aspects