TORONTO (miningweekly.com) – US diversified miner Freeport-McMoRan (FCX) has altered its 2016 capital expenditure (capex) plan once more, announcing a 29% reduction from $5.6-billion to $4-billion, as it grapples with low commodity prices.

The company advised on Thursday that savings would come from reducing mining capex by 25% to $2-billion and cutting oil and gas capex by 30% to $2-billion.

The Phoenix, Arizona-based miner advised that in response to the weak market environment and to preserve its resources for when market conditions rebounded, it had initiated a plan to reduce operating rates at its Sierrita mine, in Arizona, in response to low copper and molybdenum prices.

Initially, the plan involved operating the Sierrita mine at half of its current operating rate, with management evaluating the economics of a full shutdown. This would remove about 100-million pounds of copper and ten-million pounds of molybdenum a year. Combined with the previously announced curtailments, the consolidated impact would see mining output reduce by 250-million pounds of copper and 20-million pounds of molybdenum a year.

FCX was also reviewing strategic options for its oil and gas business, including a spin-off or a joint venture. FCX was considering an initial public offering (IPO) for its oil and gas business, which filed for an IPO in June.

The separation of the oil and gas business would leave FCX with its mainly copper and gold mining assets – about 60% of the company's 2014 revenue came from copper, while 20% was derived from its oil and gas business.

FCX noted that while it was taking near-term steps in response to the currently weak market conditions, it remained confident about the longer-term outlook for copper prices based on the global demand and supply fundamentals.

A main objective in future would be to significantly reduce FCX's $20.7-billion debt level, management stressed.

For the three months ended September 30, NYSE-listed FCX reported a net loss attributable to common stock of $3.8-billion, or $3.58 a share, compared with net attributable income of $552-million, or $0.53 a share.

After adjusting for a net charge of $3.7-billion, or $3.43 a share, the third-quarter adjusted net loss attributable to common stock was $156-million, or $0.15 a share, below the average analyst forecast of a loss of $0.08 a share.

The company lowered its full-year copper sales guidance to 4.1-billion pounds from 4.2-billion pounds and expected copper output to reach 5.2-billion pounds in 2016.

Revenue fell 35% year-on-year to $3.68-billion.

FCX’s stock had declined nearly 50% since the start of the year and on Thursday closed up just more than 0.5% at $12.02 apiece.