steam coal coking coal continued point is substantially complete although the addition of a second berth and ship loader has been beset with unusual and costly delays these postpone ments however are not expected to restrict saraji coal shipments utah's share of the cost of the saraji mine and supporting facilities was initially expected to be approximately 120 million however net unfavorable currency revaluations and construction difficulties principally on the addition of the second berth and shiploader have added approximately 77 million to utah's share of the expected cost the saraji service facilities where practical were also designed to accom modate the norwich park reserves following a plan similar to that used at goonyella and peak downs port rail way and new town facilities were all planned to satisfy requirements of two rnines present contracts for blackwater coal which require delivery of 3.5 million tons annually expire at the end of 1977 coa sales agreements for goonyella and peak downs coal with japanese steel gas and chemical companies were executed in 1969 and provide for deliveries of 4 million tons of coal per yearthrough 1984 from the goonyella reserves and 3 million tons of coal per yearthrough 1984 from the peak downs mine additional long-term sales agree ments with european and japanese buyers were entered into during 1972 for coking coal deliveries which were initiated in 1974 the european con tracts call for delivery of 16 million tons over a six-year period and 13.5 million tons over the succeeding four years the japanese agreements provide for delivery of 2.6 million tons annually over the same ten-year period of the quan tities required under the 1972 contracts it is expected that peak downs will furnish 1.5 million tons annually the remaining amount will be provided by the saraji mine which is expected to reach its full operational capacity of 4.5 million tons annually by 1976 situated in northwestern new mexico on the navajo indian reservation is utah's navajo mine its output supplies the entire fuel requirements for the four corners power plant this plant located adjacent to the mine and owned by a group of six utility companies has a rated capacity of 2,085,000 kilowatts supplying electricity to substantial areas of the southwestern united states it was originally constructed in 1963 with two generating units having a capacity of 350,000 kilowatts one addi tional unit constructed in 1964 and two units added by mid-1970 have increased the capacity of the generating plant to its present level prior to the construction of the gen erating units utah had established a coal deposit estimated to contain 1.1 billion tons of sub-bituminous coal all recoverable by strip mining methods the deposit is located in an area of 31 000 acres held under lease from the navajo nation capacity of the mine in its present configuration is approxi mately 8 million short tons annually coal is being supplied by utah to the group of utilities under two fuel supply agreements for a period of 35 years expiring in 2004 with buyers options to renew for an additional 15 years both fuel contracts contain escalation pro visions which protect utah against most cost increases fulfillment of the terms of the agreements will require delivery of up to 326 million tons of coal from the navajo reserves shipments during 1974 totaling 7.1 million short tons were essentially equivalent to those of 1973 during february 1973 utah signed a 25-year contract with two major utilities to supply the coal and water necessary to operate a coal gasification plant in the immediate vicinity of the navajo mine the agreements condi tionally commit the remaining navajo reserves as an energy supply for up to four substitute natural gas sng plants each of which is expected to produce 250 million cubic feet of sng per day from annual production of approxi mately 9.6 million tons of navajo coal commencement of the project is pending the approval of the federal power commission execution of a plant site lease between the utilities and the navajo nation as well as receipt of gov ernment permits required for the con struction and operation of the plant an environmental impact statement is now in final stages of preparation current plans call for the first coal deliveries in early 1978 assuming the conditions can be met during 1975 the navajo mine staff also operates a coal mine which provides fuel for the san juan power plant just north of the navajo mine for western coal company under terms of a mining contract deliveries from this operation for 1974 were 867,000 tons as compared to 263,000 tons during approximately six months of operations in 1973 development of utah's coal reserves located near craig colorado is pro gressing contracts entered into with a group of utilities during april 1973 call for deliveries of up to 78 million tons of coal at an average rate of 2.1 million tons annually commencing in 1977 initial deliveries will be stockpiled and the first of two 350,000-kilowatt gen erating units is scheduled for start-up in 1978 with the second unit planned for commercial operation in 1979 construc tion of the mine office and shop facilities for the craig operation will be com pleted during 1975 and initial mine stripping is anticipated to begin late in 1976 discussions are currently under way with a utility company for delivery of steam coal from our kanab utah re serves to two separate generating stations but no final agreement has been reached 3uilt in 1974 to transport steam coal from ncreasingly distant areas of the mining opera ion the new navajo mine railroad hauls 1,000 ons of coal on each nine-mile trip between the iouthern reaches of the mine and the centralize rushing and blending facilities adjacent to the our corners power plant m