Mon, Jul 06, 2009

Business

Freeport lays off 500-plus in S. Ariz.

Freeport firm lays off total of 633, the bulk from operations in state
By Gabriela Rico
Arizona Daily Star
Tucson, Arizona | Published: 11.18.2008
In summer of last year, Arizona miners were getting signing bonuses and incentives such as free housing to work in Safford.
But on Monday, 59 of the town's mineworkers were among more than 500 in Southern Arizona and 600 in all who were told that it was their last day of work for Freeport McMoRan Copper & Gold Inc., based in Phoenix.
The ongoing squeeze on the economy and plummeting copper prices resulted in cuts at four of the company's Arizona mines and one in New Mexico.
The layoffs were announced — and effective — Monday.
"We have made a reduction in force in response to the current economic conditions," Freeport spokesman Richard Peterson said.
Last month the company announced it would put off plans to expand the Sierrita Mine, south-southwest of Tucson and west of Green Valley, and to restart the mine at Miami, north of Tucson. It also delayed an expansion project at its Bagdad mine, which lies about midway between Prescott and Lake Havasu City.
Earlier this month, Freeport cut molybdenum production and announced it would lay off 14 percent of its work force at a Colorado mine.
Peterson said the positions eliminated Monday were from various departments and that the majority of employees were recently hired in anticipation of expansion projects that have been put on hold.
In Safford, about 90 miles northeast of Tucson, the $550 million mining project that broke ground in 2007 was the first major new U.S. copper mine in 30 years.
Copper production began late last year as copper prices began a dramatic ascension. On May 5, the metal's peak price reached $4.26 a pound. On Monday, copper closed at $1.65 a pound, down a nickel from last week.
Monday's layoffs totaled 633 from among 7,477 positions at the five mining sites. Peterson said he was unable to discuss any compensation or severance package the employees received.
Freeport is the world's largest publicly traded copper producer and was Southern Arizona's ninth-ranked employer in this year's Star 200 survey of the area's biggest employers. The company operates 14 mines in Africa, Indonesia, South America and the U.S.
In 2007, Freeport posted revenue of $16.9 billion, which came primarily from copper production (78 percent), followed by molybdenum (12 percent) and gold (10 percent).
● Contact Gabriela Rico at 573-4232 or grico@azstarnet.com.