shipping utah's ocean shipping interests are held through its46%-owned affiliate marcona corporation and utah development company's wholly owned subsidiary utah shippers inc historically the transportation of its own mineral products has been a very significant factor in marcona's shipping operations in the months prior to the peruvian expropriation approximately 60 percent of its shipping capacity was employed in the transport of ore from the peruvian mine the expropriation resulted in a loss of that trade which required marcona to seek third-party cargoes however the suddenness of the expropriation act and the generally de pressed shipping market inhibited prompt and satisfactory redeployment 20 of all the vessels consequently marcona classified a portion of its shipping losses as being directly related to the expropriation marcona has subsequently entered into a contract of affreightment with compania peruana de vapores for the transportation of all iron ore shipped from the former marcona mining com pany properties in peru to marcona's traditional customers between decem ber 11 1975 and december 31 1976 the extent to which ivlarcona's fleet may be redeployed in this trade wit depend on iron ore marketing success during this period at year-end utah had reached agree ment with marcona for the purchase of three of its combination ore-oil carriers however marcona subsequently re ceived another proposal which was con sidered to be a more attractive alternative and the ships were sold to a third party following this sale marcona now owns and operates nine large carriers with a combined capacity of 800,000 dead weight tons in addition to the interest in marcona's shipping activities utah manages and directs charter shipments of the com pany's australian coking coal to euro pean customers and deliveries of copper concentrate production to japan from the island copper mine in fiscal 1976 two new 126,000-ton dry bulk car riers will be delivered to two corporations in which utah development company and japanese interests each have a 50 share managed by utah these ships will transport utah's australian coking coal to europe and iron ore from the atlantic basin to japan the oreo miner is scheduled for delivery in january 1976 and the oreo trader is scheduled for delivery in august 1976 steaming out of san francisco bay the marcona prospector a 108,770-dead weight ton combination ore-oil carrier is among a number of marcona vessels with the capability for hauling either liquid or dry bulk cargoes this feature provides greater flexibility by allowing the ship to trade in either market