minine activities utah construction & mining co is engaged directly in the mining of iron ore coal and uranium through affiliated companies it is also involved in mining iron ore in peru and copper and uranium in the united states during 1959 the parent company's mining income was derived from its iron springs mine near cedar city utah see below and its metallurgical coal mine near ozark arkansas see right . a substantial portion of the iron ore from iron springs is sold to the columbia-geneva division of united states steel corporation under a long term contract with nine years to run the metallurgical coal from ozark is sold to colorado fuel and iron co under contract expiring in early 1960 during 1959 the company began the sinking of a 400-foot shaft in the shirley basin area of wyoming where the company has large uranium ore reserves averaging in excess of 0.5 uranium oxide this property has re ceived an aec allocation of 256,000 pounds of uranium oxide yearly through march 1962 and 350,000 pounds thereafter until december 31 1966 the shirley basin field is one of the most significant uranium discoveries in recent years and our company holds about one-half of the presently known reserves in that area utah construction & mining co continues to carry on a vigorous exploration and development program and has under its control a number of other mineral properties that should prove valuable in the future perhaps the most significant of these is the large coal deposit under lease from the navajo tribe of indians near farmington new mexico while no contract has yet been signed our com pany is in substantial agreement with a major public util ity under which we will sell btu's to a generating plant for a 35-year period finalization of the agreement is dependent upon certain negotiations now in progress be tween the navajo tribe and the utility company the management anticipates that mining income will increase in 1960 and subsequent years