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Freeport-McMoRan’s Tyrone mine in New Mexico.
Shares in Freeport-McMoRan (NYSE:FCX) were trading more than 7.5% lower on Monday morning at about $7 after the company announced its co-founder James Moffett was stepping down as chairman and quitting the board.
The move comes a few months after the world’s largest publicly traded copper producer added two new directors under pressure from billionaire investor Carl Icahn.
Moffett, who has been appointed chairman emeritus, will remain involved as a consultant to Freeport-McMoRan’s board, including advising the miner on its Indonesia operations. He will receive with an annual fee of $1.5 million.
The leaving executive was key in the discovery and development of the giant Grasberg mine in Indonesia, one of the world’s biggest gold and copper deposits.
Moffett was key in the discovery and development of the giant Grasberg mine in Indonesia, one of the world’s biggest gold and copper deposits.
The Phoenix, Arizona-based firm has appointed Gerald Ford non-executive chairman, effective Dec. 31. Ford has been Freeport’s lead independent director since 2013.
Earlier this month Freeport announced it would continue with spending and production cutbacks as it battles to preserve cash in a deepening commodity prices slump.
The measures include slashing expenditures at its energy operations, additional restrictions in copper and molybdenum output and the suspension of its common stock dividend.
4 Comments
Andjelo Mwembya
Also involved in the DR Congo since 1997 and 12-year in a so-called exploration in Tenke-Fugurume while they were already mining and taking advantage of the taxes breaks and exemption (in bed wih the most corrupted government of the DR Congo) Currently mining the largest deposit in world of Cobalt and Copper in the DR Congo… This current situation with this company is due to all the wrongdoings over a period of time
geosteff
It is very easy to complain and blame, and I don’t doubt that TFM have been guilty of misconduct in the DRC, but as somebody who has been working in and visiting Katanga on and off since 2006, I can see a lot of positive effects from FMC’s operations. At least they did not cut back production like Glencore and cause a major quake in the town as has taken place in Kolwezi. However, ALL DRC copper companies are guilty of exporting a semi-raw product and not collectively trying to establish a manufacturing industry to add value. I realise that without suitable political backing, it will not take place ……an issue that is the real basis of the so called “resource curse” all over Africa. In the meanwhile, the newly tarred road between Likasi and Lubumbashi is getting hammered by ingot and acid-laden lorries as nobody seems willing to upgrade the rail infrastructure….familiar story??
Restless Boomers
Activist shareholders like Icahn may end up doing long term damage to capital markets. It’s one thing to unlock legitimate shareholder value but quite another to pillage, scavenge, burn and run, leaving others to wrestle with the huge debts they leave in their wake.
paul
GOOD RIDDANCE ANOTHER OVERPRICED INCOMPETENT TRAIN WRECK!