Freeport-McMoRan Copper and Gold Inc. plans to cut molybdenum production due to a rapid decline in the price of the metal used as a hardening agent in steel.

The Phoenix miner is said to also be considering cuts in the production of copper, which has seen a dramatic decline in price, as well.

Freeport said Monday that it would cut production by 25 percent, or about 10 million pounds, at its Henderson mine near Empire, Colo., one of the largest primary molybdenum-producing mines in the world, and lay off 14 percent of the mine's 700 workers, or about 100 people. About 150 contract workers also were cut.

The company is also eyeing cutbacks in molybdenum production at the Bagdad and Sierrita mines in Arizona. Freeport earlier called off expansion plans at the two mines.

Molybdenum is byproduct of copper production at Bagdad and Sierrita and had been a significant revenue source for the company while prices soared.

But fear that the weakening global economy will cut demand for steel has sent molybdenum prices into a tailspin. The Metals Week molybdenum dealer oxide price was $12 per pound on Monday, down from about $30 in mid-October, the company said.

As a result Freeport also announced it is suspending work at its Climax molybdenum mine near Leadville, Colo., which it hoped to reopen in 2010, after a $500 million investment. Climax is the largest molybdenum mine in the world and has been closed since 1995. About 450 contract employees were let go. – The Arizona Republic