Quebrada Blanca Quebrada Blanca is located in northern Chile, 240 kilometres southeast of the city of Iquique. We own a 76.5% share  interest of Quebrada Blanca; the other shareholders are Inversiones Mineras S.A. (13.5%) and Empresa Nacional de  Minería (ENAMI) (10%). The operation mines ore from an open pit and leaches the ore to produce copper cathodes  via a conventional solvent extraction and electrowinning (SX-EW) process. Gross profit before depreciation and  amortization was $82 million in 2012, compared with $255 million in 2011 and $406 million in 2010. Gross profit was  lower in 2012, due to substantially higher operating costs and lower copper prices. In 2012, Quebrada Blanca produced 62,400 tonnes of copper cathode, compared to 63,400 tonnes in 2011. The operation  continued to experience operating difficulties due to severe weather conditions, maintenance requirements for aging  plant equipment and the transition towards more dump leach production.  A restructuring plan was announced in the fourth quarter of 2012 in response to increasing operating costs — the result  of lower copper grades and reduced reserves of the supergene, as well as other operational-related challenges. The  restructuring plan is expected to reduce operating costs in an effort to sustain the operation while the Quebrada Blanca  Phase 2 project is developed. Production of approximately 50,000 to 60,000 tonnes of copper cathode is expected in 2013. Quebrada Blanca’s supergene orebody is expected to be mined out by 2017, but residual copper cathode production  is expected to continue, at declining production rates, through 2018. In 2012, we completed the feasibility study for the Quebrada Blanca Phase 2 project. The study estimates a capital  cost for the development of the project of US$5.6 billion on a 100% basis (in January 2012 dollars, not including  working capital or interest during construction), of which our funding share would be $4.8 billion. The study contemplates  the construction of a 135,000-tonne-per-day concentrator and related facilities connected to a new port facility by  165-kilometre concentrate and desalinated water pipelines. As part of the project work plan for 2012, the Social Environmental Impact Assessment (SEIA) for the project was  submitted to the Chilean regulatory authorities during the second quarter. This was subsequently voluntarily withdrawn  in order to prepare responses to the comments and questions from the Chilean authorities, and to collect and analyze  some additional baseline environmental data. It is anticipated that the SEIA will be re-filed by the end of the second  quarter of 2013.  Discussions are ongoing with the other shareholders of Quebrada Blanca concerning financing options for the project,  which may include limited recourse project financing and, possibly, bringing in a new funding partner.  We have a 90% share interest in the Carmen de Andacollo mine in Chile, which is located 350 kilometres north of  Santiago. The remaining 10% is owned by ENAMI. Copper and gold in concentrate and copper cathode are produced  from the mine. Gross profit before depreciation and amortization was $225 million in 2012, compared with $288 million  in 2011, and $91 million in 2010. Gross profit was lower in 2012, due to lower copper prices and higher operating costs,  partially offset by higher copper production. Carmen de Andacollo Carmen de Andacollo produced 75,800 tonnes of copper contained in concentrate in 2012, compared with 66,100 tonnes  in 2011. Copper cathode production was 4,000 tonnes in 2012, compared with 6,300 tonnes in 2011. A 20,000 tonnes per day pre-crushing plant that was commissioned during the third quarter of 2012 was primarily  responsible for the increase in concentrator throughput.  We expect 2013 production to be 70,000 to 80,000 tonnes of copper in concentrate as well as 5,000 tonnes of  copper cathode. 38 Teck 2012 Annual Report