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Dec 9 (Reuters) - Diversified U.S. miner and oil producer
Freeport-McMoRan Inc FCX.N said it had suspended its annual
dividend of 20 cents per share to save cash amid a slump in
commodity prices.
The dividend suspension is expected to result in annual cost
savings of about $240 million and enhance its liquidity, the
company said on Wednesday.
Freeport, under pressure from activist investor Carl Icahn,
further reduced its capital spending plans for 2016 and 2017 on
Wednesday.
The company also said it was looking at other financing
alternatives, including a potential sale of minority interests
in certain mining assets.
Freeport cut 2016 capital expenditure budget for its oil and
gas operations by 10 percent to $1.8 billion, and slashed its
2017 budget by 40 percent to $1.2 billion.
The company, in October, said it will add two new directors
to its board under an agreement with Carl Icahn. Icahn owned 8.8
percent of Freeport as of Sept. 22.
Shares of the miner, which were up marginally at $6.87 in
premarket trade, have fallen 71 percent this year. They closed
at $6.74 on the New York Stock Exchange on Tuesday.