Monday, November 10, 2008

Freeport cutting moly production; copper cuts coming too?

Phoenix-based Freeport McMoRan Copper & Gold is cutting molybdenum production due to the recent price drop (from $30 to $12 per pound in just the past month). This involves cuts at their Henderson moly mine, delaying the restart of the Climax mine in Colorado, and "assessing the potential to curtail molybdenum production at its by-product mines." The latter would include the Bagdad [right, credit Freeport] and Sierrita mines in Arizona.

The company also said, "FCX is continuing to review its copper mining operations and is preparing revised plans at each of its operations to establish lower operating and administrative costs, exploration costs and reduced capital spending budgets." Freeport operates the Morenci and Safford copper mines in Arizona.

But announcement of the Chinese economic stimulus plan and speculation that another US plan will focus on infrastruction and on the car companies, pushed the price of copper up today to $1.86, up from $1.65.

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