Freeport: Eyeing Molybdenum Market For Possible Climax Restart

LONDON -(Dow Jones)- Freeport-McMoRan Copper & Gold Inc. (FCX) is keeping a close watch on molybdenum market conditions to determine when to restart its Climax project, the U.S. producer said Wednesday.

Construction was suspended at Climax in October 2008 in response to market conditions and is still on hold. Climax is planned to have an annual capacity of 30 million pounds, with "significant" expansion options.

"Freeport is investing $60 million to advance certain construction activities during the next several months to provide flexibility in startup timing options," the company said.

Freeport is the world's largest producer of molybdenum and the second-biggest producer of copper after Chile's Codelco.

Once a decision to resume construction is made, the project could be completed within 18 months. Freeport said the estimated remaining costs for the project are about $500 million.