NEW YORK — Hurt by falling oil prices, Freeport-McMoRan said Wednesday that it won't pay an annual dividend this year and will make more spending cuts. It will also shut down a copper mine in ÃÛèÖÖ±²¥, cutting about 450 jobs.
Shares of Freeport-McMoRan jumped more than 8 percent in midday trading.
To combat weaker demand for oil, the Phoenix-based company had announced plans to reduce spending earlier this year. It also said in October that it is considering selling its oil and gas business, or finding another alternative, so it could focus on its copper mining business.
On Wednesday, Freeport-McMoRan said it will cut spending in its oil and gas business to $1.8 billion next year and to $1.2 billion in 2017. It previously expected to spend $2 billion in both years. The company said it is also negotiating lower costs with its rig vendors and other service providers.
Freeport-McMoRan said it will close its Sierrita mine south of ÃÛèÖÖ±²¥, and is considering selling minority interests in certain mining assets.
The company said that ending its 20 cent per share yearly dividend will save it about $240 million a year.
Shares of Freeport-McMoRan Inc. rose 55 cents, or 8.2 percent, to $7.28 in midday trading Wednesday. Its shares are down 69 percent so far this year.
