Freeport-McMoRan announced Wednesday a “full curtailment” of its Sierrita mine in Pima County that will mean an additional 450 jobs lost.

 

Employees were told Wednesday that in addition to 430 planned layoffs beginning Jan. 12, 450 more jobs will be cut by April. Freeport will keep a skeleton crew of 250 people at the site. The mine also laid off 150 workers in August.

 

Mine officials didn’t address whether or when the mine would ramp up operations again.

 

Sahuarita Mayor Duane Blumberg said he was informed of the plans in an e-mail Wednesday from Freeport McMoRan but had not spoken to company officials yet.

 

Blumberg said he wasn’t sure of the impact on the town, but town officials will continue working with mine employees who are let go just as it has since a reduction announcement in October.

 

“Beyond that, I’m not sure,” he said.

 

In an e-mail to state Sen. Andrea Dalessandro, Richard Bark, Freeport’s director of government relations, cited depressed molybdenum and copper prices for the cuts.

 

“Obviously, it’s very bad news, not only for my district but for the southern Arizona region, especially during the holiday season when people should be celebrating,” said Dalessandro, who lives in and represents Sahuarita. “Unfortunately, there’s not that many good-paying jobs in southern Arizona.”

 

State Rep. Rosanna Gabaldon, who also lives in Sahuarita, said her thoughts are with the employees.

 

“It’s very difficult to have a reduction-in-force,” she said. “I’m working with the town and Sahuarita Unified School District and the Department of Economic Security to see how we can address these employees’ needs.”

 

State Rep. Chris Ackerley, who also lives in Sahuarita, noted that Freeport has operations elsewhere that can take on some of the laid-off employees. He said there is a process to suspending operations at a mine site that could take some time.

 

U.S. Rep. Martha McSally, whose district includes the mine, called it “devastating news” in a statement.

 

“My heart goes out to all who will be affected by this decision,” McSally said. “While we work together as a community to help these families, I’ll continue making it one of my top priorities to expand opportunity for all southern Arizonans.”

 

In October, Freeport reported a sluggish third quarter and that same day announced a 50-percent shutdown of Sierrita. Officials also said they were evaluating a full shutdown.

 

In August, the company said it was suspending investing in long-term projects in its oil and gas markets due to market conditions. In a press release Wednesday, Freeport said it also was evaluating selling “minority interests in certain mining assets and other actions to provide additional proceeds for debt reduction.”

 

James R. Moffett, Freeport’s board chairman, and Richard C. Adkerson, vice chairman, president and CEO, said in a joint statement, “We are taking further actions to strengthen our financial position during a period of weak and uncertain market conditions. While copper prices have weakened in recent weeks and the near-term copper outlook is uncertain, we view the medium and longer term outlook positively, supported by copper’s important role in the global economy and limitations on global supplies.”

 

In 2014, Sierrita produced 195 million pounds of copper and 24 million pounds of molybdenum. In the first nine months of 2015, Sierrita produced 140 million pounds of copper and 17 million pounds of molybdenum, according to a Freeport official.

 

Article from the Internet for reference only