UPDATE: Freeport: Cuts 09 Copper Sales Forecast To 3.9 Billion Lbs
January 26 2009 - 8:30AM
Dow Jones News
U.S. producer Freeport McMoRan Copper and Gold Inc. (FCX) is
taking further steps to cope with the deteriorating economic
backdrop and will reduce output further at its North American
operations, the company said Monday.
The reduction, which will reduce mining and crushed leach rates
by a further 25% at its Morenci copper mine in Arizona, will result
in a reduction in the quantity sold in 2009 to 3.9 billion
pounds.
This is 9% down from 4.3 billion lbs that had been expected in
October, which was revised in December to 4 billion lbs.
A further reduction in sales is expected in 2010, with Freeport
cutting its forecast by a massive 17% to 3.8 billion lbs from
October expectations of 4.6 billion lbs.
The cuts and revised sales estimates build on plans announced in
several stages during the fourth quarter of 2008.
The Tenke Fungurume copper-cobalt mine in Congo has still
escaped a delay to its planned startup in the second half of 2009,
but Freeport said it is continuing to assess capital costs and the
timing of expenditures. Tenke is a joint venture with the Lundin
Mining Corp. (LMC) and the government of Congo, through
Gecamines.
-By Andrea Hotter, Dow Jones Newswires; +44 (0)20 7842 9413;
andrea.hotter@dowjones.com
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