when he bulkof our production is no longer committed to lower-priced sales arrangements we are hopeful that significantly higher prices and improved results can be obtained other areas of utah's business were not significantly changed in terms of profitability mineral sales backlog increases utah's mineral sales backlog is a statement of the value of mineral prod ucts to be delivered in future years under existing contracts at the end of 1974 the amount of this backlog stood at 4.85 billion an increase of 1 53 billion during the year increases in con tract prices for coking coal provided most of this gain the backlog now stands at a level 15 times that of ten years ago and this year's increase is greater than the entire backlog at the end of 1968 we are including contracted future steam coal sales from the proposed mine at craig colorado in the backlog for the first time this year as it appears that this mine can be developed on schedule and in compliance with reasonable environmental requirements for surface mining operations an agreement to sell coal from our navajo mine in new mexico to a group of utilities planning to convert the coal into substitute natural gas is not included in the backlog pending receipt of necessary project approvals from several governmental groups outlook in viewing the near-term outlook for utah international one cannot ignore the economic problems orthe political attitudes which currently trouble many countries of the free world neverthe less with the continuing requirements for the basic raw materials which utah supplies and particularly for coking coal and those resources related to the production of energy we view utah's future with considerable optimism barring a worldwide economic downturn of major proportions we expect utah's performance in 1975 to be one of con tinued improvement led by higher price realizations for coking coal and iron ore and by production from the new saraji mine finally it is with thanks that we recognize the efforts of the very talented employees throughout the world that have contributed to utah's successes they are capable of rising to the many challenges the future holds and are worthy of your continued support respectfully submitted chairman of the board j rail-mounted slacker/reclaimer unils at the newly expanded product handling facilities at utah's hay point port in queensland australia is then delivered via conveyor for loading abo ships bound for japanese and european mark