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Capital spending
----------------------------------------------------- three months ended December 31(thousands) 2012 2011 change-----------------------------------------------------Capital spending $8,300 $3,400 +144%---------------------------------------------------------------------------------------------------------- year ended December 31(thousands) 2012 2011 change-----------------------------------------------------Capital spending $17,500 $12,700 +38%--------------------------------------------------------------------------------- objective(thousands) 2013----------------------------Capital spending $18,000----------------------------
We spent $18 million in capital this year to begin construction of a pair of new ore passes, add to the underground mobile fleet, improve underground pastefill and water drainage infrastructure, replace the surface concrete batch plant, and continue mine development. In 2011 we spent $13 million to engineer the new ore passes, purchase mobile equipment, install column flotation cells and a conveyor dust collection system in the mill, add surface water runoff capacity, and continue our mine development.
2013 outlook for capital spending
We expect to spend $18 million on capital in 2013, including $6 million on mine development and $5 million to complete the upgrade of our ore pass system to address deterioration that has accumulated over time from normal abrasion.
Las Cruces
---------------------------------------------------------------------------- three months ended December 31(100 percent) 2012 2011 change----------------------------------------------------------------------------Tonnes of ore processed (000's) 276 231 +19%----------------------------------------------------------------------------Copper grades (percent) 6.9 6.9 -----------------------------------------------------------------------------Plant recoveries (percent) 90 86 +5%----------------------------------------------------------------------------Cathode copper production (tonnes) 17,300 14,100 +23%----------------------------------------------------------------------------Cost per pound of cathode produced $1.14 $1.21 -6%-------------------------------------------------------------------------------------------------------------------------------------------------------- year ended December 31(100 percent) 2012 2011 change----------------------------------------------------------------------------Tonnes of ore processed (000's) 1,082 776 +39%----------------------------------------------------------------------------Copper grades (percent) 7.1 6.5 +9%----------------------------------------------------------------------------Plant recoveries (percent) 88 84 +5%----------------------------------------------------------------------------Cathode copper production (tonnes) 67,700 42,100 +61%----------------------------------------------------------------------------Cost per pound of cathode produced $1.12 $1.54 -27%----------------------------------------------------------------------------
