Freeport-McMoRan today announced actions in response to market conditions, including plans for a full shut-down of its Sierrita mine in Arizona. The compnay is “continuing to evaluate its mining operating plans in response to market conditions and will make further adjustments as required,” according to a press released issued today.
The move will eventually cost the region an estimated 1000 jobs.
According to the company, it “continues to review its capital projects and costs to maximize cash flow in a weak commodity price environment and to preserve its resources for anticipated improved future market conditions. FCX previously announced a 25 percent reduction in its capital spending for its mining business for 2016 (from $2.7 billion to $2.0 billion, including $0.6 billion in sustaining capital) and announced curtailments at its North America and South America mines totaling 250 million pounds of copper and 20 million pounds of molybdenum per year.”
The political environment in southern Arizona has made mining in the “Copper State” nearly impossible.