description of operations mining utah continues to derive a major share of its income from the extraction and sale of basic minerals iron ore uranium copper and coal with the addition of income from the navajo mine in new mexico and the major contract modifications at cedar city and lucky me your company has in sured the continuity of profits from these operations well into the future i ron recent developments at cedar city utah and san nicolas peru have greatly enhanced the long-term outlook for your company's iron ore mining operations ne gotiations with u.s steel have resulted in a favorable new agreement which while possi bly reducing any one year's sales in the event of a temporary decline in the ore require ments of the columbia-geneva mill extends ore sales by approximately eight years until 1975 the extension providing for the de livery of an additional 4.4 million tons of beneficiated ore will enable the company to utilize nearly all of the remaining known reserves in its iron springs deposits near cedar city marcona mining company in which utah holds 50 voting and 41.39 equity in terests has set into motion its expanded facilities for the large-scale concentration and pelletizing of crude ore and is now shipping high-grade sinter and pellet products to cus tomers throughout the world with its modern deepwater port facilities marcona has the ability to accommodate the largest most economical vessels employed in the iron ore trade today the advantages of premium quality products year-round op erating climate a downhill haul from mine to port and efficient ocean transportation will enable marcona to compete for an increas ing share of expanding foreign markets with the increased investment in marcona the company has expressed its confidence in the political and economic stability of peru it is believed that this country has long been among the most dependable in south amer ica and has an awareness of the economic gains to be realized by maintaining a favor able investment climate this year's ore shipments from marcona some 5 million tons were 15 above last year and far in excess of the 2 million ton average during the 1950's with the expanded dragline for stripping overburden navajo coal mine new mexico