Production was 60% higher for the quarter compared to the same period last year. We have continued to bring on new wellfields to maintain a higher head grade in the wellfield production mix, which has resulted in the higher first quarter production. The higher head grade and other improvements to the extraction processes allow the Inkai operation to produce at its design capacity of 5.2 million pounds per year.
We continued to make solid progress at Cigar Lake in the first quarter and expect commissioning in ore in mid-2013, with the first packaged pounds in the fourth quarter.
During the quarter, the first jet boring unit completed a successful test program in waste rock. The second jet boring unit is expected to be shipped to site and moved underground in the second quarter.
Installation of the underground and surface infrastructure required to begin commissioning in ore in mid-2013 is ongoing and progressing well.
Cigar Lake's licence from the Canadian Nuclear Safety Commission (CNSC) expires at the end of 2013. The current licence allows for various mine construction activities as well as mining of ore for commissioning purposes. We made an application to the CNSC in 2012 to amend the current licence, ahead of its expiry date. The application included a request for a ten-year term. The CNSC held a public hearing on April 3, 2013. We expect a decision during the second quarter and anticipate that Cigar Lake will have the full operating licence in mid-2013.
Fuel services produced 4.7 million kgU in the first quarter, 4% higher than the same period last year. We increased our production target in 2013 to between 15 million and 16 million kgU, so quarterly production is anticipated to be higher than comparable periods in 2012.
The current collective agreements with unionized employees at the Port Hope conversion facility will expire on June 30, 2013. Bargaining began in April 2013. There is risk to production if we are unable to reach an agreement and a work stoppage occurs.
The technical and scientific information discussed in this document for our material properties (McArthur River/Key Lake, Inkai and Cigar Lake) was approved by the following individuals who are qualified persons for the purposes of NI 43-101:
McArthur River/Key Lake-- David Bronkhorst, vice-president, Saskatchewan mining south, CamecoCigar Lake-- Grant Goddard, vice-president, Saskatchewan mining north, CamecoInkai-- Alain G. Mainville, director, mineral resources management, Cameco
CAUTION ABOUT FORWARD-LOOKING INFORMATION
This document includes statements and information about our expectations for the future. When we discuss our strategy, plans, future financial and operating performance, or other things that have not yet taken place, we are making statements considered to be forward-looking information or forward-looking statements under Canadian and United States securities laws. We refer to them in this document as forward-looking information.
Key things to understand about the forward-looking information in this document:
-- It typically includes words and phrases about the future, such as: anticipate, believe, estimate, expect, plan, will, goal, target, forecast, project, strategy and outlook (see examples below).-- It represents our current views, and can change significantly.-- It is based on a number of material assumptions, including those we have listed below, which may prove to be incorrect.-- Actual results and events may be significantly different from what we currently expect, due to the risks associated with our business. We list a number of these material risks below. We recommend you also review our annual information form and our annual and first quarter MD&A, which include a discussion of other material risks that could cause actual results to differ significantly from our current expectations.-- Forward-looking information is designed to help you understand management's current views of our near and longer term prospects, and it may not be appropriate for other purposes. We will not necessarily update this information unless we are required to by securities laws.