steam coal the present australian government as to the desirability of future capital inflow a schedule to begin development of norwich park and market its output has not yet been established utah development's coking coal mines are efficient modern open-cut operations in relatively remote locations the queens land government has encouraged and assisted with these projects as a result networks for transportation power and communications have reached into new areas and the economic development of the state has advanced materially steam coal steam coal derives its name from its primary historical use — it is burned in the process of converting water to steam which in turn provides the energy to drive electric generators and other machinery supplementing this traditional use technology exists to convert the energy content of this coal to a product similar to natural gas utah's most substantial interest in steam coal is in the four corners area of new mexico there the navajo mine has operated since 1963 to fuel the four corners power plant an important source of electricity for the southwestern united states this plant which is today owned by a group of six utility companies began as a two generating unit development with a rated capacity of 350,000 kilowatts three units added subsequently have raised that capacity to 2,085,000 kilowatts and corresponding increases in the requirement for coal have made the navajo mine the largest coal mine in the united states deliveries from the navajo mine in 1973 were at a record level of 7.1 million short tons exceeding the 6.6 million tons sold in 1972 when mechanical difficulties experienced at the power plant limited operations fuel supply contracts with the power plant owners extend to the year 2004 and contain renewal options and price escala tion provisions of the 1.1 billion tons of coal at the navajo mine recoverable by strip mining methods less than one-third is committed under these agreements the balance of the navajo mine re serves has been conditionally committed to two utility companies as an energy supply for as many as four substitute natural gas sng plants these plants will convert the coal into pipeline quality gas for use in the southern california area it is expected that each of these plants will produce 250 million cubic feet of gas per day and will require annual coal purchases of approximately 9.6 million tons with prompt acceptance of the program by appropriate governmental agencies the first unit is expected to commence operation by 1978 eight miles north of the navajo mine utah operates the san juan mine as a contractor for western coal company which controls strippable coal reserves near a new power plant owned by two utilities deliveries from this operation commenced in april 1973 and shipments for the year totaled 263,000 tons reserves near craig colorado and kanab utah comprise the balance of utah's proven steam coal holdings approximately one-half of the craig reserves are dedicated to a power plant scheduled to begin operations in 1978 large and efficient equipment is used in the mining of steam coal at the navajo mine with careful quality control and the use of blending techniques huge piles of uniform quality coal are readied for delivery to the nearby four corners power plant