iron ore cedar city mine the domestic iron ore operations of the company are located near cedar city utah production is by open pit mining and also by the use of a dragline which feeds iron-bearing alluvial material to a mobile magnetic plant ore mined from pits and field concentrate from the alluvium plant are transported to a beneficiation plant for final upgrading prior to shipment substantially all iron ore produced has been delivered to the united states steel corporation's geneva works steel mill near provo utah under a sales contract that expires june 30 1975 and calls for the delivery of ore at a rate of about 600 000 tons annually contract stripping and mining utah op erates open pit iron ore mines near cedar city utah owned by cf & i steel corpo ration under a contract running to august 31 1974 which requires stripping mining and the delivery of iron ore as directed by c f & i income from the cedar city mine oper ations and contract stripping and mining were not substantially changed from the prior year the o s proc through a beneficiation plant to improve the product grade prior to shipment to the u.s steel plant at geneva utah a central control panel is utilized in the plant operation bottom ; during 1969 approximately 4.6 million tons of iron ore were mined and shipped from the mount goldsworthy mine in western australia to japanese steel companies the loading and hauling of the ore to the plant is being handled by a 4va cubic yard shovel and 65 ton haul units this operation also uses a 7 cubic yard shovel and 110 ton haul units mount goldsworthy mine the company holds an undivided one-third interest in the mount goidsworthy iron ore operation in western australia the other partici pants in this venture are cyprus mines corporation and consolidated gold fields australia limited approximately 4.8 million long tons of iron ore were mined transported by rail to port hedland australia 70 miles from the mine site and shipped to the japanese steel industry during the past fiscal year 79 of these sales consisted of tonnage under contract with the balance sold on a spot basis 1969 deliveries compare with 4.2 million long tons shipped in the 1968 fiscal year higher sales and lower costs allowed mount goldsworthy to in crease substantially its contribution to our profits the present production capacity of the operation is 4.5 to 5.0 million long tons a year which rate is sufficient to meet the original and subsequent long-term con tracts plus spot sales the remaining ton nage to be shipped under these contracts through 1980 approximates 22 million tons on november 21 1969 an additional long-term sale was concluded covering 52.6 million tons of iron ore for delivery to japanese steel mills the ore to be pro duced to meet this contract will be de rived from the mount goldsworthy mine and from the shay gap and kennedy gap reserves in the area the total project shipping rate will be increased to 8 million tons annually by 1974 to meet the remain ing commitments of the contracts totaling direct shipping iron ore is mined at mount goldsworthy and transported by rail to port hedla for further shipment this high grade ore is blendf with other ores in blast furnaces for the ultimate production of steel and steel products about 74 million long tons of iron ore capital expenditures required to open up the two new mines extend the railroad and provide additional mining facilities will be obtained chiefly from cash gener ated from operations goldsworthy mining limited the capital stock of this australian company organ ized in 1965 is beneficially owned one third each by the participants in the mount goldsworthy project it is a service com pany that handles the mining crushing and screening rail hauling of the mount goldsworthy ore to port hedland and stock piling and loading of ore onto ships for export goldsworthy mining limited gml is compensated for these services by the several participants in the mining venture on the basis of actual costs in curred plus a fee the facilities owned by gml consist primarily of the railroad roll ing stock and port installations