The cost of product sold in the first quarter, before transportation and depreciation charges, was $47 per tonne compared with $59 per tonne (restated for deferred stripping), 20% lower than in the same period a year ago. In the current period, $140 million dollars of cash production costs were capitalized on the balance sheet in accordance with the requirements of the deferred stripping accounting standard compared to $142 million in the restated period a year ago. Under the new accounting standards for stripping costs, we expect our 2013 annual cost of product sold to be in the range of $51 to $58 per tonne, based on our current production plans.
Cost reduction efforts at the mines, which accompanied the reduction in production levels beginning in mid-August 2012, have been successful and are ongoing. Cash production costs in the first quarter were nearly $12 per tonne lower than a year ago. This decrease resulted from reductions in the consumption of repair parts and minimizing the use of maintenance contractors, contract miners and consultants. In addition, costs were positively impacted by reductions in overtime, a hiring freeze, shutdowns of higher cost equipment and shutdowns on statutory holidays.
Transportation costs in the first quarter were $36 per tonne, $2 per tonne or 6% higher compared with the same quarter a year ago. This increase was primarily due to higher demurrage charges incurred throughout the quarter, resulting from the large number of vessels at anchor at the west coast ports associated with the Westshore Berth 1 outage. We continue to expect our 2013 transportation costs to be approximately $36 to $40 per tonne.
Depreciation and amortization increased by $6 per tonne to $26 per tonne primarily due to the significant increase in capital assets to be depreciated under the new deferred stripping accounting standard, which are depreciated on a units of production basis. Also contributing to the increase were investments in capital equipment made over the course of 2012, which are now commissioned and operating at our sites. We expect depreciation and amortization expense to be in the range of $26 to $30 per tonne in 2013 as we continue to defer and amortize overburden removal costs.
The Quintette re-start project continues to progress on the basis of the study, which estimated a capital cost of approximately $860 million, of which $188 million has been spent to date. The Mines Act Permit Amendment ("MAPA") application process is proceeding and we continue to expect to receive the permit approval in the second quarter with first coal production expected in the first half of 2014. Early works activities, procurement of long-lead equipment and engineering, are progressing to support the project timeline. During the first quarter, a five-year labour agreement was ratified with the union. By the fourth quarter of 2014, Quintette is expected to be producing at an annualized rate of three million tonnes.
Neptune Bulk Terminals, in which we have a 46% ownership interest, is expanding its annual coal throughput capacity from 9 million tonnes to 12.5 million tonnes by the end of the second quarter of 2013 with the addition of a second stacker reclaimer. Completion of the feasibility study for the next expansion phase, which will further increase capacity from 12.5 million tonnes to 18.5 million tonnes, was completed in the fourth quarter of 2012. The proposed upgrades will include a second railcar dumper and associated conveying system, a new rail track within the existing rail loop, the replacement of a ship loader and foundation reinforcement of the loading berth.
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