Copper stocks in the LME, Shanghai and COMEX warehouses increased 8% or 45,000 tonnes during the year.  Total reported global stocks (which include producer, consumer, merchant and terminal stocks) stood at an estimated  24 days of global consumption versus the 25-year average of 28 days of global consumption. Production disruptions continued to affect the market in 2012, with estimates of close to 0.9 million tonnes of planned  production lost during the year. Total copper mine production increased by only 3.8% in 2012, which was well below  the estimated 10.1% increase projected at the beginning of the year. Wood Mackenzie, a commodity research  consultancy, is expecting a 12% increase in global mine production in 2013 as new mining projects begin to ramp up;  at the same time, Wood Mackenzie is also expecting an 11% increase in smelter production. Based on a history of  industry production shortfalls over the past eight years combined with the continuing difficulties in bringing new  production to market on time, we continue to expect unplanned production disruptions through 2013. We therefore  expect smelter capacity utilization to remain under pressure in 2013, with the concentrate market remaining in deficit.  With global copper metal demand projected by Wood Mackenzie to increase by 5.0% in 2013, projected supply  is expected to exceed demand slightly, moving the refined market into balance. If mine production continues to  disappoint in 2013 from current projections, the refined market could again slip into deficit in 2013. $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 Tonnes 0 150 300 450 600 750 ■  US$/pound ■ Tonnes (000’s) 2012 2011 2010 2009 2008 ■  China ■ Rest of the world 0 Tonnes 5 10 15 20 25 2012 2008 2004 2000 1996 1992 1988 2012 2011 2010 2009 2008 0 Days 10 15 20 25 35 30 0 Tonnes 300 600 900 1,500 1,200 ■ Tonnes (000’s) ■ Days of global consumption ■ 25-year average days inventory Copper Inventories  Source: ICSG, LME, COMEX, SHFE Global Demand for Copper  (Tonnes in millions)  Source: ICSG, Wood Mackenzie Copper Price and LME Inventory  Source: LME Teck 2012 Annual Report 40