marcona mining company utah construction company owns a 41 25 interest in the equity stock and a 50 interest in the voting stock of marcona mining company marcona is a western hemisphere trade corporation engaged in the mining of iron ore in peru during 1958 a magnetic beneficiation plant was installed to treat certain of the finely-crushed ores produced by the mine lowered demand for iron ores occasioned by decreased steel production activity throughout most of the world resulted in reduced profits for the marcona mining company it reported a net profit of 4,854,000 for the twelve months ended october 31 1958 compared to 7,356,000 realized the preceding year and 3,023,000 for the fiscal year ended october 31 1956 during the current fiscal year utah received dividends from marcona in the amount of 1,324 184 compared with 1,350,432 received during the preceding fiscal period 132 received during the preceding fiscal period view of ore carrier ready for loading by conveyer belt from iron or stockpiles of marcona mining company in the background crusl ing and screening of the ore is done adjacent to the mine approj imately 17 miles from the port at san juan bay in southern peri pima mining company pima mining company which operates a copper mine and mill near tucson arizona is owned 25 each by utah construction company and union oil company of california and 50 by cyprus mines corporation profits of 916,000 for the twelve months ended october 31 1958 were reported b pima in the face of depressed copper prices prevailing throughout most of the year it is encouraging to note that during the last half of 1958 the price of copper advanced from a low of 24 cents to better than 28 cents per pound as of the end of october shown here is an aerial view of the pima mining company opt copper mine near tucson arizona ore and wa te rock ure ho to the surface from the bottom of the pit in 22 ton kip open on an inclined railway normal production is 3500 to 4000 ton ozark-ph1lpott mine since 1949 utah construction company has operated the ozark-philpott mine in arkansas producing high quality metallurgical coal by strip mining methods from a coal seam only 1 8 inches thick coal mined at this operation is sold to a major steel producer remaining coal reserves that are sufficiently shallow to be strip mined are limited and probably will be exhausted within a few years however the feasibility of mining the coal by underground methods is currently being studied if thin seam underground mining proves successful the coal reserves of the property will be greatly increased and the life of the property will be extended for many years shipping cia san juan s a in which utah construction company has a 41.25 ownership interest is engaged in the sale and ocean transportation of peru vian iron ore under an exclusive contract with the marcona mining com pany as well as transportation of other bulk commodities shipments are made in vessels chartered in the world market and from a wholly owned subsidiary of cia san juan s a san juan carriers ltd san juan carriers ltd owns one 16,000 ton and two 32,000 ton ore carriers a new 47,000 ton combination ore and oil carrier was launched in september and delivery is expected in february a sister ship will be delivered in may more efficient use of owned and chartered vessels has resulted from the development of backhaul of bulk cargoes which complement the movement of iron ore from peru in 1958 a five year charter was negotiated with a major oil producer to transport approximately one million barrels of petroleum products annually from the caribbean area to peru other bulk cargoes amounted to approximately 500,000 tons cia san juan's consolidated earnings were 2,530,000 for the 12 months ending october 31 1 95 8 a decrease of $ 1 240,000 from the preceding year dividends of $ 1 00 per share on class a stock and 8.00 per share of class b stock were paid during the year aggregating 2,000,100 no dividends have been paid by the corporation in preceding periods ore shipments were 2,635,000 tons a decrease of 26 from the comparative prior twelve month period reflecting the world-wide reduction in steel production keel laying hull no.s-738 47 oooqwhrpeobeioil carrier for messrs san joan carriers ltd at tsurutll shiftaeto nippon kokank.k 15th sept 1958 the scene above is descriptive of the keel laying c san juan traveller 47,000 ton ore and o ship of the san juan merchant this at scheduled for completion in may 1959 the san juan merchant 47,000 ton combination ore and oil carrier is shown after launching at tsurumi shipyard in japan this ship will join the san juan fleet in february 1959 an impres sive picture of the launching appears on the inside back cover of this report