Cost of sales was $97.1 million in 2012 compared to $127.3 million in 2011. Cost of sales comprise the direct cash costs of product sold, mine administration cash costs of product sold, idled mine costs, inventory impairments, equipment depreciation, depletion of mineral properties and share-based compensation expense. Of the $97.1 million recorded as cost of sales in 2012, $44.2 million related to mine operations and $53.0 million related to idled mine costs. Cost of sales related to mine operations decreased in 2012 compared to 2011 primarily due to lower sales volumes and lower unit costs, partially offset by coal stockpile impairments totaling $14.2 million. Cost of sales related to idled mine costs primarily consist of period costs, which are expensed as incurred and depreciation expense. The depreciation expense relates to the Company's idled plant and equipment.
Other Operating Expenses:
Other operating expenses in 2012 increased to $54.3 million compared to $29.2 million in 2011. The increase in other operating expenses primarily relates to provisions for doubtful trade and other receivables, an impairment loss on available-for-sale financial assets and an impairment of property, plant and equipment, partially offset by reduced public infrastructure costs.
In 2012, the Company recorded $52.8 million of provisions and impairments in other operating expenses related to the following:
-- Trade and other receivables - the Company recorded a loss provision of $18.4 million in 2012. The loss provision relates to provisions for certain uncollectible trade receivables of $17.4 million and a reduction in the expected insurance proceeds of $1.0 million. The Company anticipates full recovery of its remaining outstanding trade and other receivables.-- Available-for-sale financial asset - in 2012, the Company determined that objective evidence of impairment in the Company's investment in Aspire Mining Limited ("Aspire") existed. Therefore, an impairment loss of $19.2 million was recognized in other operating expenses.-- Property, plant and equipment - the Company recorded $15.2 million of impairment charges to reduce various items of property, plant and equipment to their recoverable amounts. The impairment charges consist of a $13.0 million impairment pertaining to non- refundable prepayments made on cancelled mobile equipment orders to preserve the Company's financial resources, a $1.1 million provision on tires held for sale and a $1.1 million impairment of construction in progress expenditures that were not expected to be recovered.
Public infrastructure costs decreased in 2012 compared to 2011 due to reduced maintenance costs on transportation infrastructure from the Ovoot Tolgoi Mine to the Shivee Khuren Border Crossing and reduced works on the expanded border crossing infrastructure at the Shivee Khuren Border Crossing.
In 2011, other operating expenses primarily consisted of a $16.0 million impairment charge on various capitalized construction projects and $8.1 million of public infrastructure costs.
Administration expenses in 2012 were $24.6 million compared to $28.7 million in 2011. The decrease in administration expenses primarily related to reduced corporate administration and share-based compensation expense, partially offset by increased legal and professional fees. Legal and professional fees were higher due to additional legal fees as a result of the CHALCO proportional takeover bid, the Notice of Investment Dispute and in support of the ongoing investigations (refer to Regulatory Issues section).