Non-operating income, net of expenses, includes items that arise from financial and other matters and includes such items as foreign exchange, debt refinancing, realized gains or losses on marketable securities. In the first quarter of 2013, other non-operating expense was $13 million. This compares with a $347 million expense in the first quarter of 2012, which included a $414 million charge on the redemption of a portion of our high-yield debt notes.
Income and resource taxes for the quarter were $203 million, or 38% of pre-tax profit, which is higher than the Canadian statutory income tax rate of 25%. This is due mainly to the effect of resource taxes and higher tax rates in foreign jurisdictions. We are currently shielded from cash income taxes, but not resource taxes in Canada. We remain subject to cash taxes in foreign jurisdictions.
OPERATING CASH FLOW, FINANCIAL POSITION AND LIQUIDITY
Cash flow from operations, before changes in non-cash working capital items, was $776 million in the first quarter compared with $1.1 billion a year ago, with the reduction primarily a result of the effect of significantly lower coal prices in the period.
Changes in non-cash working capital items were minimal in the first quarter compared with a $251 million use of cash in the same period a year ago. The buildup of working capital in 2012 primarily related to increased coal inventories and timing of royalty and bonus payments.
Expenditures on property, plant and equipment were $388 million in the first quarter and included $166 million on sustaining capital and $222 million on major development projects. The largest components of sustaining expenditures were at our coal operations which totalled $80 million. Major development expenditures included $70 million for Highland Valley Copper's mill modernization project, $39 million at the Quebrada Blanca hypogene project, $46 million at Frontier Energy and $21 million at our coal operations. The expenditures at our coal operations are largely to enable us to incrementally expand production at existing operations. Expenditures on investments and other assets totaled $82 million in the first quarter, which was mainly our $71 million share of spending on the Fort Hills Oils Sands Project.
Capitalized stripping costs, excluding capitalized depreciation, were $210 million in the quarter compared with $189 million in the first quarter of 2012. We expect to capitalize similar amounts each quarter for the remainder of the year.
We have a committed bank credit facility of $1.0 billion, which matures in 2016, all of which is unused.
We continue to experience volatile markets for our products. Commodity markets have historically been volatile, prices can change rapidly and customers can alter shipment plans, which can have a substantial impact on our business. The uncertainty over the ongoing economic conditions may affect both prices and shipments to our customers.
Foreign Exchange, Debt Revaluation and Interest Expense
The sales of our products are denominated in U.S. dollars, while a significant portion of our expenses are incurred in local currencies, particularly the Canadian dollar. Foreign exchange fluctuations can have a significant effect on our operating margins, unless such fluctuations are offset by related changes to commodity prices.
Our U.S. dollar denominated debt is subject to revaluation based on changes in the Canadian/U.S. dollar exchange rate. As at March 31, 2013, all of our U.S. dollar denominated debt is designated as a hedge against our U.S. dollar denominated foreign operations. As a result, any foreign exchange gains or losses arising on our designated U.S. dollar debt are recorded in other comprehensive income.
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