ore moves by trainload frc at cedar city it cedar city labora mount goldsworthy open pit mine in wester australia dwarfs automobile in foreground letters of intent except two had been replaced by firm contracts and it is ex pected that these letters covering 2,576,000 pounds of uso will be con verted to definitive contract terms early in 1971 sales for forward deliveries after november 1 1975 amount to more than 2.7 million pounds and we believe that after that date market demand for uranium oxide will be stronger and prices will rise as its use as fuel increases iron ore profits from our iron ore activities and interests continued at satisfactory levels and recorded an increase for the year results of domestic operations including both production from the company's own iron springs mine near cedar city utah and contract mining of a nearby deposit for cf&i steel corporation were substantially unchanged from the prior year shipments from utah's mine to united states steel corporation's geneva works near provo utah amounted to approximately 600,000 tons under a contract which runs until june 30 1975 subject to possible extension operations at cf&i's comstock mine consisting of stripping mining and ore deliveries as directed by the owner were maintained under a contract which extends to august 31 1974 substantially higher profits resulting from a sharp rise in iron ore shipments were recorded at the mount goldsworthy mine in western australia utah devel opment company consolidated gold fields australia limited and cyprus mines corporation each own a one-third interest in this project approximately 6 million tons of ore of about 64 fe grade was mined and shipped to the japanese steel industry chiefly under contracts but partly on a spot sales basis this volume amounts to 27 more than the 4.8 million tons shipped in 1969 and reflects the increase in mining capacity which was made effective in april 1970 three new long term contracts for the sale of 52.6 million tons of iron ore were concluded in 1970 by the mount goldsworthy co-owners for deliveries to japanese buyers over a period of 10 years the contracts have a total value of approximately 430 million of which utah development company's one-third share amounts to 143 million to provide for these increased com mitments further expansion of the mount goldsworthy project has been authorized by the co-owners reserves at shay gap and kennedy gap located about 40 miles to the east are to be brought into production in sequence at a later date the existing railroad now running only to the mount goldsworthy mine will be extended to these mines and other supporting installations will be provided by this expansion the rate of production of iron ore from reserves controlled by the mount goldsworthy co-owners will be increased to 8 million tons annually by mid-1973 the utah group's share of the capital cost involved is estimated at 21 million marcona corporation an affiliate in which utah construction & mining co and cyprus mines corporation each own 46 of the equity interest and 50 of the voting stock engages through sub sidiaries in the mining and beneficiation of iron ore from deposits in peru and carries on shipping operations through a fleet of large ocean carriers some owned and some chartered notwith standing shipments of iron ore were higher than in 1969 there was a moderate 13