Freeport-McMoRan Defers $1 Billion Worth of Mining Projects in Arizona and Colorado

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Researched by Industrial Info Resources (Sugar Land, Texas)--In a move to conserve cash in a down-trending market, Freeport-McMoRan Copper & Gold Incorporated (NYSE:FCX) (Phoenix, Arizona) has delayed development on several copper and molybdenum mining projects in Arizona and Colorado because of a drop in commodity metals prices and the deteriorating global economy. All together, six major projects totaling about $1 billion have been delayed or placed on hold, including the $500 million restart of the Climax Molybdenum Mine in Colorado. The Industrial Company (Steamboat Springs, Colorado) is the general contractor on the project.

Structural steel arrived at the site in June 2008 and buildings are being erected. Building shell construction will be completed by the end of the year and it looks like the project team will be sent home at that time. With the declining price of molybdenum, which has dropped by more than 50% since the beginning of the year, the company has decided to delay construction for an undetermined amount of time.

A revised plan of operation being developed by the company could include additional production cutbacks and layoffs. The announcement will be made by the end of the year.

In addition to the Climax Molybdenum Mine restart delay, other projects deferred include a restart of the Miami Copper Mine, as well as expansions at the Bagdad and Serrita mines.

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