Freeport-McMoRan, operator of the Climax Mine, announced Friday that it will reduce operations to 50% of regular output at the Lake County molybdenum mine to reduce expenses in the wake of a global downturn in demand.
The smaller-scale operating plan includes a reduction in the number of employees at Climax, though Climax did not specify how many employees will be out of work.
Before reducing the number of employees, Climax will offer a voluntary leave program, which allows for eligible employees to voluntarily leave their job in exchange for additional severance benefits.
Climax plans to maintain the 50% production rate for the rest of 2020.
The Herald contacted Climax with questions about the reduction plan and the voluntary leave program, but was not given information beyond what was included in the statements made by the company.
Freeport-McMoRan said in the press release that the company will focus on existing operations, limiting exploratory operations and analyzing data from past drilling operations.
“Revised operating plans for the molybdenum business also include reductions in operating costs, administrative and centralized support costs, capital spending and implementation of a two-crew mill production schedule,” according to a statement from Climax shared with the Herald.