marcona mining company's pellets produced at san nicolas peru are among the world's highest grade iron ore products these photographs provide a partial description of how they are made initially pellet filter cake is produced in the magnetic separation plant lower left and then formed into green pellets in three 19vi foot diameter rotating discs ( 1 ) . the latter are conveyed through the indurating machine 2 on a 165 foot long traveling grate 4 where they are progressively dried and tired to a hardened finished product 6 . the hot pellets then pass through a cooling drum 5 and are removed by c the opert beneflciation plant's red frc n 3 of its earnings after provision for distribution taxes exceeded 1964 by 56 this affiliate has undertaken an additional expansion program to permit even greater utilization of its reserves based on a revision of the basic mining concession with the santa cor poration corporacion peruana del santa , an agency of the peru vian government the revision is now being consummated with the peruvian government utilizing utah's engineering and con struction personnel marcona is modifying its existing pellet plant to increase the capacity from 1 million tons to 1.3 million tons per year and is now adding a new pelletizing unit having an annual capacity of 2 million tons this program which is scheduled for completion in the summer of 1966 will give marcona the capacity for an annual output of 5 million tons of beneficiated products in addition to some direct shipping ore utah also participates in ocean shipping through san juan car riers ltd a wholly-owned subsidiary of the 43 owned affiliate cia san juan s.a whose principal role is the marketing and trans portation of marcona ore by assuming responsibility for delivery of marcona's products to the dock or other terminal facilities of mar cona's customers cia san juan is able to assure dependable low cost transportation through the design and operation of very large specialized ore vessels and five of the world's largest combination ore/oil ships in service by arranging for vessel employment in com plementary backhaul lifting petroleum coal and other bulk com modities the company has expanded its general transportation capa bilities reduced iron ore delivery costs increased vessel operating profits and diversified operating risks this fleet consisting of seven carriers and augmented by charter vessels completed 63 billion ton miles of cargo transportation during fiscal 1965 the addition of a 62,000 deadweight ton ship in 1966 and a 90,000 dwt vessel in 1967 will increase wholly-owned capacity to 530,000 deadweight tons in 1965 utah's share of cia san juan's consolidated earnings after provision for distribution taxes was 1,749,335 this compares with 1,261,955 for 1964 during fiscal year 1966 utah's iron ore mining operations will