ties a peiletizing plant and a new deep water pier installation including shiploader and complete pierhead facilities already an important producer of iron ore to the international market the expansion pro gram will provide upgrading of marcona's products and will permit utilization of hun dreds of millions of tons contained in the main ore body these new facilities are designed to meet the changing needs of the world's steel makers by providing the beneficiated and prepared ores that are commanding pre mium prices your company has a 50 voting and 41!4 equity interest in marcona whose principal operations are in peru marcona's earnings affected by two work stoppages during the year higher unit costs and lower prices were off from last year's record achievement utah's share of this year's earnings after allowance for distribution taxes was 1,754,200 compared with 2,771,109 last year ocean shipping and ore sales marcona's ore is marketed throughout the world by cia san juan s a in which utah has the same equity and voting interest as in marcona cia san juan's wholly owned subsidiary san juan carriers ltd owns six ships with a combined carrying capacity of 250,000 deadweight tons with a new ves sel the ss san juan pioneer of 70,000 deadweight tons joining the fleet in october 1962 to replace the ss san juan trader which was then sold two other 70,000-ton ships are under construction and with the addition of these ships the capacity will be 390,000 deadweight tons in addition to san juan's fleet 55 other ships were char tered together these ships moved 34 billion ton miles of iron ore and other bulk cargoes during the last year utah's share of cia san juan's consoli dated earnings after distribution taxes de clined to 1,038,694 from 1,497,284 in 1961 reflecting the increased competitive pressure in the international iron ore and shipping market in the long run however cia san juan will continue to be in a posi tion to meet this competition effectively particularly with the completion of the larger ships with their lower operating costs coal the development of the navajo mine continued with erection of a giant 40 cubic yard dragline and the beginning of pre-mine stripping operations the 350,000 kw four corners power generating plant being built by arizona public service co neared completion and utah will begin supplying fuel to aps in january 1963 this will culminate efforts begun by your company over nine years ago with its development of this coal field the initial 350,000 kw plant can supply enough elec tricity for a city with a population of 500,000 leased from the navajo indian tribe this 25,000-acre coal deposit contains one of the largest low-cost thermal energy reserves in the western united states it is estimated that this 600 million ton reserve can supply enough fuel to generate 2,500 000 kw for more than 60 years utah's fuel contract provides for the de livery of energy which will be the equiva lent of 1,500,000 tons of coal annually for 35 years arizona public service company has options to extend this term an additional 15 years and to purchase additional fuel as it increases the generating capacity to 800,000 kw uranium operating under contract allo cations from the atomic energy commis sion utah mines uranium ore at its lucky me open pit mine and at its underground shirley basin mine processing these ores at its lucky me mill shipments from the more recently developed shirley basin mine increased during the year and a continuing reduction in mining and milling unit costs was achieved under present volumes at both locations during the year these operating factors combined with a price revision produced earnings from uranium higher than those of last year copper utah's interest in copper consists of its 25 % equity in pima mining company which operates an open pit mine and mill ing facilities near tucson arizona during the year your company began work under contract for pima on the construction phase of an authorized 4 million expansion pro gram which is designed to enlarge opera tions and increase the life of the mine by utilizing reserves of lower grade ore utah's share of pima's earnings this fiscal year was 483,952 and exceeded the 323 092 earned during the twelve months ended october 31 1961 mineral development andgeology your company has long recognized that mineral reserves conveniently located to markets constitute unique and valuable long-term assets also mining is not a static business and even long life mineral deposits must ultimately be replaced con sistent with this philosophy utah has con