Music to my ears. Electricity transmission takes 26% of all copper produced. China increased its copper usage by 14% last year. They imported 2.49 million tonnes of scrap. China is building the Three Gorges dam, the biggest hydro project the world has seen. Think of the transmission lines. And then today we had the following news:
Phelps Dodge Notifies Chino, Tyrone and Sierrita Operations of
1/25/1 9:3 (New York)
Possible
Production Curtailments
PHOENIX, Jan. 25 /PRNewswire/ -- Phelps Dodge Corporation (NYSE: PD) today
announced that it will notify all 2,350 employees of its Chino and Tyrone,
N.M., and Sierrita, Ariz., operations of the possibility of production
curtailments. The company attributes high energy-related costs as the primary
threat to continuing production at the New Mexico facilities, and a
combination of low molybdenum prices and high energy costs as the reason for
notification of Sierrita employees.
Phelps Dodge Chairman, President and CEO J. Steven Whisler, said: "The
electricity crisis in California, and its impact on energy prices, had a
significant impact on our fourth quarter 2000 results, with our U.S.
electricity, diesel fuel and natural gas costs 65 percent higher than in the
fourth quarter of 1999. Our Chino, Tyrone and Sierrita operations are the
most energy-cost sensitive in the Phelps Dodge portfolio. After a review of
the near-term market outlook for energy prices and a thorough analysis of the
molybdenum market, we believe it necessary to notify our employees that we may
not be able to maintain production cost-effectively at the Chino, Tyrone or
Sierrita operations. The situation remains fluid and we have not reached
final decisions about curtailments at any of these facilities.
"Until the California power crisis is resolved its negative impact on
industrial facilities in surrounding states, including our New Mexico and
Arizona operations, will be huge in terms of additional plant closings and
employee layoffs. In the meantime, Phelps Dodge will continue to work
aggressively, diligently and creatively to pursue every opportunity to
minimize the impact of these extraordinary circumstances on our businesses and
our employees."
Employees will receive Worker Adjustment and Retraining Notification
(WARN) Act letters by mail this week advising them that temporary production
curtailments could become effective following a legally required, 60-day
notification period. The unions which represent some of the employees at
Chino also will receive WARN Act notices this week.
The company will closely monitor the energy and molybdenum markets
throughout the 60-day period to determine whether curtailment actions may be
necessary at any of the three facilities. No details about possible
production curtailments will be provided unless final decisions to curtail
production have been made by the company.
In 2000, Chino Mines Company produced 271 million pounds of copper through
its workforce of about 990 people. Copper production at Phelps Dodge Tyrone,
Inc. was 159 million pounds in 2000; the operation employs a full-time
workforce of nearly 620 people. Phelps Dodge Sierrita, Inc. produced
245 million pounds of copper and 22 million pounds of molybdenum in 2000, and
employs approximately 740 full-time employees.
This is about 337,000 tonnes.
Phelps Dodge Corporation is the world's second largest producer of copper.
The company also is the world's largest producer of continuous-cast copper rod
and molybdenum, and is among the largest producers of carbon black and magnet
wire. Phelps Dodge has operations and investments in mines and manufacturing
facilities in 27 countries and employs approximately 15,500 people worldwide.
For related Phelps Dodge news, refer to the company's fourth quarter and
full year 2000 earnings press release issued today. |
