Tags: Freeport-McMoran | job | cuts | mining

Freeport-McMoran to Cut Jobs, Spending on Mining Business

Thursday, 27 Aug 2015 09:35 AM

Diversified U.S. miner and energy producer Freeport-McMoran Inc. said it would cut 10 percent of its U.S. mining workforce and lowered the amount it plans to spend on mining in 2016 by 25 percent to $2 billion as commodity prices continue to fall.

Shares of the company, which also plans to lower production at and suspend operations at some U.S. mines, rose nearly 7 percent to $8.47 in premarket trading on Thursday.

Freeport had earlier this month also cut its 2016 and 2017 capital budget for its oil and gas operations by 31 percent to $2 billion per year.

The lower budgets means Freeport's 2016 capital budget is $4.0 billion, about 29 percent lower than the $5.6 billion it had forecast on July 23.

The company, which operates seven open-pit copper mines in North America, plans to suspend mining at its Miami mine in Arizona, it said in a statement on Thursday.

The company said it will also reduce mining rates by half at its Tyrone mine in New Mexico and "adjust" mining rates at its other mines in the United States.

Freeport employed 13,200 in the United States as of Dec. 31. It was not clear how many of them were part of the company's mining business.

The company also lowered its estimate for copper sales in 2016 and 2017 by about 150 million pounds. It had earlier forecast selling 5.4 billion pounds of copper in 2016.

© 2017 Thomson/Reuters. All rights reserved.

 
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Diversified U.S. miner and energy producer Freeport-McMoran Inc. said it would cut 10 percent of its U.S. mining workforce and lowered the amount it plans to spend on mining in 2016 by 25 percent to $2 billion as commodity prices continue to fall.
Freeport-McMoran, job, cuts, mining
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2015-35-27
Thursday, 27 Aug 2015 09:35 AM
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