14 - Marcona is also a leading participant in an international joint venture which is studying the economic and technical feasibility of establishing a steel mill complex in Saudi Arabia, 50$ owned by Petromin, Saudi Arabia's oil and mining development agency, and 50% by Marsteel, a consortium of Japanese, European, and U. S. steel companies with Marcona the largest owner. The plan calls for Brazilian ore processed into pellet feed, brought to Saudi Arabia in Marcona ships and then converted into steel, using for energy the cheap natural gas now being flared in Saudi Arabia. In Peru, Marcona is in negotiation with a special governmental commission appointed to consider acquiring the Peruvian assets of Marcona's wholly-owned subsidiary, Marcona Mining Company, which mines ore under a Peruvian concession expiring in 1982 and beneficiates this ore into pellets and other iron ore products. Clearly the Peruvian Government would like to take over the operations now. But Marcona controls the marketing and the transportation of the ore, and it would not appear prudent for Peru to attempt to take over the property without working out an understanding with Marcona. If both parties are negotiating in good faith, it should be possible to work out a deal that is fair and satisfactory to all concerned. Domestically Utah plans to expand its steam coal activities on several fronts. A deal has already been made on the Craig, Colorado deposits and production is scheduled to begin in 1977 and to average 2.1 million tons annually over the 35 year contract period. Discussions have been held on the possible use of the reserves at Kanab, Utah. Most importantly, Utah has over one-half billion tons of reserves at its Navajo Mine which are not committed to existing electric generating plants. These are expected to be the source of fuel for a