Freeport-McMoRan eliminates 600 U.S. copper and moly jobs

Freeport-McMoRan’s aggressive response to poor metals market conditions has resulted in cutbacks at the company’s U.S. copper and molybdenum mines.

RENO, NV -

Less than a week after Freeport-McMoRan Copper & Gold delayed start-up and reduced production at its Colorado molybdenum mines, the company announced Monday it will cut 600 jobs at its U.S. copper and moly operations.

In an e-mail Monday, Freeport Director, External Communications Eric Kinneberg told Mineweb, "Most of these employees were recently hired, many in anticipations of expansions, which have been deferred."

The reduction at the 4,000-employee Morenci copper mine involved 402 jobs, along with 66 jobs eliminated at Bagdad, 70 at Sierrita, 59 at Safford, all located in Arizona, and 36 positions at the Tyrone mine in New Mexico. All are copper mines.

Last month the company announced it would delay expansions at the Sierrita Mine and the Bagdad Mine, and to restart the mine at Miami.

Last week, 95 employees were laid off out of a 940-person workforce at the Chino copper mine near Silver City, New Mexico, while the re-opening of the Climax molybdenum mine was delayed near Leadville, Colorado, and production cut at the Henderson moly mine, also in Colorado.

Henderson had 700 employees at the beginning of this month, but will lose 58 employees due to a 25% or 10 million-pound cut in production. The mine is the largest primary moly producer in the world.

There has been no word yet if Freeport is also considering cutbacks or delays at its massive Tenke Fungurume project, believed to be the largest high-grade copper/cobalt project in the world today. The project is located in the Katanga Province of the Democratic Republic of the Congo.

In a news release issued last week, FCX CEO Richard Adkerson said, "We are responding aggressively to the current market conditions which have weakened dramatically in recent weeks."