1972 operations since ils incorporation at the turn of the century the business pursuits of utah international inc have changed dramatically in its early years utah was primarily a construction company performing heavy earthworks projects in the western united states now an international mining company utah also maintains interests in ocean shipping and land development construction activities have been limited since the sale of the company's heavy construction and dredging assets in 1969 and 1971 yet the transition has not been sudden nor has it required a great change in character for today as in the past utah advances its reputation for reliability among those who consume its products or utilize its services similarly the company continues to recognize its responsibilities to employees and to communities in which it operates contributing to the shift toward the present heavy commitment to mining was the desire to create a more reliable earnings base upon which utah could begin to build the framework for future growth to enhance the predictability of the company's income flow long-term sales contracts for the minerals to be produced were a prerequisite for new mining ventures in most cases these sales contracts contain provisions for escalation of sales prices as costs are increased due to economic forces beyond the company's control the soundness of the decisions to place increasing emphasis upon mining activities and to approach mining projects in this manner is evidenced by utah's earnings pattern which has replaced the cyclical pattern of earlier years with a 20-year history of growth at an average rate of 14 per year further more with a far more substantial equity base and with sustainable annual profits utah today possesses the financial strength for continued expansion into major mine investment programs as opportunities are developed utah's current mining operations including those of affiliated companies involve extraction and varying degrees of processing of metallurgical and steam coals uranium iron ore copper and the by-product minerals molybdenum rhenium and gold these mining ventures are located in australia canada new zealand peru and the united states while the company's land and construction programs are largely conducted in the western united states on the following pages the diverse product interests of utah international are discussed in detail coal in terms of contribution to current earnings as well as to potential earnings growth for the next several years the production of coal is the most important of utah's business enterprises of present coal mining operations steam coal has the longer history beginning with the first deliveries from the navajo mine in 1963 more recently coking coal reserves in the bowen basin of queensland australia have been developed steam coal the navajo mine in northwestern new mexico which is utah's only operating steam coal venture supplies its entire output to satisfy the fuel requirement of the nearby four corners power plant this plant owned by a group of six utility companies generates electricity to satisfy the expanded energy needs of new mexico texas arizona and california under 35-year contracts containing cost escalation protection utah is providing coal to the five electricity-generating units now in operation which have a combined capacity of 2085 megawatts shipments of coal from the navajo mine were down from 1971 levels during the first six months of the 1972 fiscal year due to the installation and start-up of air pollution control equipment on the three original units of the four corners power plant by the third quarter operations had resumed sufficiently for shipments to exceed those of the first two quarters for the steam coal has long played an essential role in satisfying the electrical energy needs of the united states growing demands for all forms of energy coupled with diminishing supplies of other domestic fuels should bring coal into a position of even greater prominence in the years ahead layers oi crushed coal are deposited in long blending piles by rail-mounted stacking units at the navajo mine at finished height each pile will contain 30,000 tons of uniform quality coal ready for delivery over a network of conveyors to the four corners power plant