Trail Operations Other Zinc Operations Generations 47 Our Pend Oreille mine, located in Washington State, has been on care and maintenance since February 2009. A core  group of employees is working to keep the site ready in the event of a future restart. All regulatory and environmental  requirements are being met. In 2013, we expect to produce in the range of 280,000 to 290,000 tonnes of refined zinc, approximately 87,000 tonnes  of refined lead and approximately 23.5 million ounces of silver.  Construction continued on the new $125 million acid plant, which will replace two existing plants and is expected to  deliver enhanced operating reliability and flexibility as well as improved environmental performance. The new plant is  expected to go into service in the first quarter of 2014. As part of the capital deferrals announced in October 2012, work  on the $210 million No. 4 Furnace Project was deferred as major excavation and construction had not commenced and  detailed engineering had yet to be completed. Our e-waste recycling process treated 12,000 tonnes of material during the year, and we plan to treat about 13,500 tonnes  in 2013. We continue to process zinc alkaline batteries and fluorescent light bulbs as part of our expanded efforts in  recycling post-consumer waste. Operating costs in 2012, before the one-time labour settlement charge of $59 million, rose by $24 million. This was partly  due to higher workforce levels to allow for succession planning, higher wages, increased consumable costs, the use of  additional operating supplies and increased maintenance activity. Record silver production of 22.9 million ounces resulted from increased treatment of silver-bearing concentrate and an  increased capacity to refine silver. Refined lead production of 87,900 tonnes was higher than the 85,600 tonnes produced in 2011, mainly due to higher  feed rates to the KIVCET furnace.  Refined zinc production totalled 284,200 tonnes in 2012, compared with 291,200 tonnes the previous year, as production  was affected by poor operating performance in the zinc electrolytic cell house near the end of the fourth quarter. Trail Operations contributed $64 million to gross profits before depreciation and amortization in 2012, compared with  $256 million in 2011 and $155 million in 2010. Gross profit in 2012 decreased due primarily to a combination of lower  metal prices and a one-time labour settlement charge of $59 million for a five-year labour agreement.  Our Trail Operations in B.C. is one of the world’s largest fully integrated zinc and lead smelting and refining complexes.  It also produces a variety of precious and specialty metals, chemicals and fertilizer products. Trail Operations has a  two-thirds interest in the Waneta hydroelectric dam as well as ownership of the related transmission system. The Waneta  Dam provides low-cost, clean, renewable power to the metallurgical operations.