1963

              1963
Utah continued to derive z major share of its income from the
extraction and sale of basic minerals:   iron ore, uranium, copper and
coal.   With the addition of income from the Navajo Mine in New Mexico and
the major contract modifications at Cedar City and Lucky Mc, Utah had
insured the continuity of profits from these operations well into the future.
Recent developments at Cedar City, Utah, and San Nicolas, Peru,
greatly enhanced the long-term outlook for Utah's iron ore mining
operations      Negotiations with U. S. Steel resulted in a favorable new
agreement which, while possibly reducing any one year's sales in the
event of a temporary decline in the ore requirements of the Columbia -
Columbia-   extended ore sales by approximately eight years until 1975.
The extension, providing for the delivery of an additional 4.4 million tons
beneficiated ore, would enable the Company to utilize nearly all of the
remaining known reserves in its Iron Springs deposits near Cedar City.
Marcona Mining Company, in which Utah holds 50% voting and
41. 39% equity interests, had set into motion its expanded facilities for
the large-scale concentration and pelletizing of crude ore and was thus
able to ship high-grade sinter and pellet products to customers throughout
the world.
With its modern deepwater port facilities, Marcona has the ability
to accomodate the largest, most economical vessels employed in the
iron ore trade.   The advantage of premium quality products, year-round
operating climate, a downhill haul from mine to port, and efficient ocean
transportation now enable Marcona to compete for an increasing share of
expanding foreign markets .
With the increased investment in Marcona, the Company thus
expressed its confidence in the political and economic stability of Peru.
This country has long been among the most dependable in South America
and has an awareness of the economic gains to be realized by maintaining
a favorable investment climate.
1963's ore shipments from Marcona, some 5 million tons, were
15% above 1962 and far in excess of the 2 million ton average during the
1950's .   With the expanded facilities, total production capacity advanced to
6 million tons per year.   In spite of increased output, Marcona's earnings
were slightly down from 1962 due to lower profit margins and the startup
costs of the new facilities.   Utah's share of earnings, after all;,allowance for
distribution taxes was $1,550, 770.