Wednesday, December 03, 2008

Freeport cuts production, dividend; suspends Chino mine

Freeport McMoRan Copper & Gold plans a 25% reduction in the mining and milling rates at Morenci, a 50% reduction in the mining and stacking rates at the newly commissioned Safford mine, a 50% in the mining rate at the Tyrone mine in New Mexico and a suspension of mining and milling activities at the Chino mine [right] near Silver City, New Mexico. The Chino mine will lay off 600 of 830 workers.

Freeport also suspended its quarterly dividend. A wide range of other operational reductions world wide were also announced by the company.

The price of copper hit $1.63 a pound on Monday, compared to an average for most of this year of $3.61. Moly is down to $9 a pound, compared to $30 in October.

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