NEWS
08/27/2015 08:58 EDT | Updated 08/27/2016 01:12 EDT

Freeport-McMoRan lowering spending and production, plans to cut some US mining jobs

PHOENIX — Copper producer Freeport-McMoRan Inc. is lowering its spending and production as it deals with declining copper prices and soft economic conditions worldwide. It plans to cut about 10 per cent of employees and contractors at U.S. mining operations.

Shares gained more than 4 per cent before Thursday's market open.

Freeport-McMoRan said that it expects $4 billion in capital expenditures for 2016, down from a prior estimate of $5.6 billion. Its 2015 capital expenditure budget currently stands at $6.3 billion.

The Phoenix company said that it will reduce copper sales by about 150 million pounds per year in 2016 and 2017 and cut 2016 unit site production by 20 per cent. It also plans to slash 2016 minerals exploration costs from $100 million to $50 million.

The Associated Press