OCR

Commission called for uniform annual deliveries through 1966. In exchange for stretching out thse deliveries through 1968, the A. E.C would purchase two additional years' requirements at a reduced price. Another advantage of the new program would be the opportunity for the Company to consolidate its controlled allocations and to supply concentrate rem those properties which allow optimum economy and operating flexibility. While reducing current profits ,the new contract would produce greater total earnings and help Utah maintain active uranium operations until the large-scale applications of nuclear fuels to peacetime uses becomes economically feasible. When that time arrives, Utah will then be in an excellent position to compete for private sales and will have reserves sufficient to support many years of uninterrupted production. Mineral Development & Geology In a joint venture with Cyprus Mines Corporation and Consolidated Goldfields of South Africa, Ltd. , Utah directed a considerable portion of 1960'ss development expenditures toward the completion of drilling and economic evaluation of the Mt. Goldsworthy iron ore properties in Western Australia. An export license for the annual shipment of 4 million tons has now been granted. Marketing efforts and selection of a suitable pert site then became major areas of endeavor. Near Dayton, Nevada, the Company controls one of the larger proven iron ore reserves in the Western United States. Geological studies, mine layout and beneficiation plans are essentially complete, and emphasis has been directed toward the development of a suitable market. 1968 sales negotiations were aimed at exporting one million tons of beneficiated iron ore products annually. Additional expenditures of $1, 074, 858 were made on mineral development and exploratory activities in areas which offered worthwhile economic opportunities at tolerable levels of risk. Construction Utah closed the year with its backlog of uncompleted work divided almost equally between domestic and overseas locations. Joint venture participations in the San Luis Dam and the San Luis Canal, two primary units of California's Central Valley Project, and the Wells Hydroelectric Project on the Columbia River, Washington, will replace the nearly completed Taum Sauk pumped storage facility in Missouri. Results at Round Butte Dam, near Madras, Oregon, had been disappointing. Work there was accelerated, however, and was expected to be finished, ahead of schedule, in the summer of 1964. The NORAD underground defense center near Colorado Springs, Colorado, and Minuteman facilities at Warren Air Force Base, Wyoming, were progressing smoothly and were expected to be near completion toward the end of the 1964 fiscal year.