1974 operations coking coal favorably affected by an unprecedented worldwide demand for coking coal were deliveries from utah's three pro ducing coking coal mines in queens land australia extra-contractual coking coal price increases of approximately 50 were realized during mid-1974 from both japanese and european cus tomers the price adjustments were in addition to price increases resulting from cost escalation provisions con tained in essentially all of utah's long term coking coal contracts the higher prices combined with increased overall production and shipments from the operating mines contributed substan tially to utah's increased consolidated earnings when compared to those of 1973 and to the results of prior years utah's interests in australia are represented by a 90 ownership in utah development company a corpor ation operating solely within australia the remaining ownership is held by utah mining australia limited a com pany owned by some 9,000 australian investors shipments from the new mine at saraji commenced early in fiscal 1975 when full production levels are attained there the total production capacity of utah's queensland opera tions will be increased by 4.5 million tons to a new level of approximately 17.5 million tons annually if necessary approvals of the australian govern ment can be obtained utah could proceed with the development of a fifth coking coal mine at norwich park situated some 30 miles from saraji clarification of government policy with respect to foreign investment in australia is presently being sought the blackwater mine commenced shipments in 1968 originally designed to supply 1.5 million tons of coal annually to satisfy contract commit ments with the japanese steel industry capacity has been increased to approxi mately 4 million tons annually as addi tional sales arrangements have justified expansion shipments during 1974 from blackwater totaled 3.4 million tons compared to 3.3 million tons in 1973 the goonyella peak downs and saraji mines all located 100 to 150 miles north of the blackwater mine are 85 owned by utah development with the remaining interest held by a major japanese trading company utah development manages the operations the goonyella mine which com menced shipments in october 1971 has commitments with japanese steel cus tomers for 4 million tons annually ship ments during 1974 of 3.7 million tons were substantially less than the 5 million tons delivered in 1973 continuing labor problems the effects of a cyclonic storm early in the year and unusual stripping and mining difficulties encountered as a result of spoil pile failures which caused excessive overburden re handling all contributed to the decline in shipments the peak downs mine commenced shipments during july 1972 and has a capacity of 5 million tons per year de liveries during 1974 benefitted from a relaxed ash specification agreed to by the buyers which had the effect of increasing washplant output by nearly 10 resulting in a higher shipping rate than otherwise could have been achieved additionally significant operating improvements were effected and as a result deliveries for 1974 totaled 4.8 million tons compared to 3.1 million tons in 1973 the first full year of peak downs operations satisfactory progress has been made in the development of the new saraji mine the first dragline began stripping operations during july the coal prepa ration plant was commissioned in october and completion of the railway allowed shipments to hay point to begin in december expansion of on-land handling and stockpiling facilities at hay at the new sataji mine coking coal is tran by a fleet of 120-ton haul trucks to prepar facilities located nearby there it is upgra prior to delivery by rail to hay point port