Henderson Mill & Mine announce second round of layoffs | SkyHiNews.com
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Henderson Mill & Mine announce second round of layoffs

More layoffs are coming to Grand County.

Freeport-McMoRan, the company that operates the Henderson Mill and Mine Complexes, announced last week an additional round of layoffs at their facilities in Grand and Clear Creek County. A total of approximately 130 jobs are expected to be cut from the two facilities. This fresh round of layoffs is in addition to the 80 jobs Freeport-McMoRan announced it was cutting from the two facilities in August; bringing the total layoffs announced this year to 210.

Officials from Freeport-McMoRan confirmed the layoffs Wednesday morning. The layoffs are anticipated to begin on Jan. 12, 2016 and finish around Jan. 26, 2016.



Eric Kinneberg, Director of External Communications with Freeport-McMoRan explained some of the companies reasoning for the job cuts stating, “In light of a continued deterioration in the molybdenum market, Henderson will curtail molybdenum production by an additional 45 percent, to a 10 million pounds per year rate from the 18 million pound rate announced in August. The annual production rate prior to the cut-backs was 27 million pounds.”

“In light of a continued deterioration in the molybdenum market, Henderson will curtail molybdenum production by an additional 45 percent, to a 10 million pounds per year rate from the 18 million pound rate announced in August. The annual production rate prior to the cut-backs was 27 million pounds.”Eric Kinneberg, Director of External Communications with Freeport-McMoRan

Along with reductions in production overall Henderson will suspend development of new mining areas after development of the 7700SW panel is finished, expected to be sometime in early 2016.



A large part of what is driving the reduction in molybdenum production is lower consumption levels for high-grade steel and stainless steel. The ongoing decline of oil and gas drilling and lower overall investments in the heavy machinery required for those endeavors have resulted in a sizable drop in the per-pound price of molybdenum since the beginning of the year.

According to information provided to Henderson’s Community Partnership Panel the price of molybdenum oxide has declined from $9.50 per pound at the beginning of 2015 to $6.50 per pound in August when the first round of layoffs were announced. The price has since dropped to the current price of $4.50 per pound.


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