WHAT WE DO MATTERS

By svc-ewscms, 16 May, 2025

WHAT WE DO MATTERS

JANUARY 2024

I recently attended an event where a local community leader shared the following: “Never follow a leader who is more interested in the power than the people.” While I think that is sage advice, I would say it a little differently, “never follow anyone who is more interested in themselves than they are in others.”

Certainly, each one of us does things for ourselves – as we should. Everything we do has an element of both serving ourselves while serving others.

Personal safety is a great example. When we take the time to think through the work before we begin, follow an SOP with its full intent, stop work when unsafe conditions exist or simply watch where we are walking, we are looking out for ourselves first and foremost while also preventing knock on impacts to others. It’s when we, as individuals, choose to take a short cut or not pay attention to what is right in front of us-become self-focused or distracted- that bad things happen.

People treating people like people is at the center of everything we are trying to accomplish. Our ability to stay focused, safely execute our operating plans and proudly put our name on everything that we do each day will continue to build a future for NMOPS that is far bigger than any of us as individuals.

Randy Ellison

∎ ∎ ∎

Generational Wealth

As temperatures rose last summer, one of Chino’s oldest plants turned to one of its newest pieces of equipment to do what it does best—generate power, tip the economic scales and carry on a family tradition.

To an outsider, the power plant at Chino’s southern operation can seem almost like a time capsule. First constructed out of necessity in the early 1900s, it is now a treasure trove of equipment from the past century, each a different chapter in the greater story of Chino’s adaptability.

“When it was first built, local infrastructure simply couldn’t support the heavy loads we needed,” explained Ray Gutierrez, Superintendent of Shared Services-New Mexico Operations. “Since then, it's helped us keep running and keep costs lower against a variety of unexpected events.”

Some of those events include wars and an energy crisis, with the power plant being adapted to run on everything from coal to jet fuel to natural gas in response. This summer, the power plant switched on its latest addition: a gas turbine capable of generating 50 megawatts—more power than is used by the whole of Silver City. On average, the turbine currently produces around 38 megawatts for Chino.

Even though the 5,700-foot altitude impacts its performance, its use last summer still translated to $1.7 million in savings over a two-month period. In addition to a reduction in Chino’s purchased power, Tyrone Mine and sites in Arizona benefited more from the less expensive contract power that would typically be consumed by Chino.

Those savings could continue in the future as well. While a transition to renewables is not in the immediate plans for NMO, Gutierrez said options are being looked at for the future. In the meantime, discussions have centered around the running of a combined cycle at the Hurley power plant. In a combined cycle, the exhaust from the gas turbine would be run through the boiler, creating steam that then is used to power a turbine generator.

The upgrades necessary to run a combined cycle would be considerable, according to Gutierrez, but he also believes the “free power” generated by the steam turbine would pay for itself in a few short years. Regardless of the form it takes, the power plant is as likely to play a role in Chino’s future as it did its past.

That certainty suits Gutierrez just fine. For him, the power plant is not just an integral part of the mine’s story, but also his own—and that story is a generational one. “My grandfather retired from the power plant, my father retired from Tyrone, and I hope to retire from FMI,” he said. “Both my sons show interest in the mine, too. I would be a proud father if they decide to go this route.” ∎

When it comes to safety, Tyrone Mine is really cooking.

In January, Tyrone hosted a celebratory breakfast for its employees in recognition of ending 2023 with a total recordable incident rate, or TRIR, of .91—below its target of 1.02.

While safe production has always been the top priority for Freeport, efforts were made to course correct following a companywide uptick of incidents last year—and New Mexico operations took the challenge to heart.

At Tyrone, which has not had an incident since May, the site rolled out the company’s safety commitment cards, continued the red hat program for new employees, looked for innovative ways to remove employees from potentially dangerous situations and renewed its focus on Fatal Risk Management.

“Tyrone leadership and employees agreed that last year’s incidents were unacceptable, and so a collaborative effort was made to develop and verify stronger controls and empower everyone to speak up,” said Rachel Adams, Health and Safety Manager-Tyrone. “At the end of the day, you are only always one decision away from a totally different outcome—the time is worth taking to make the right choice.”

Tyrone currently has over 240 reportable-free days and is now aiming to achieve a full year on the heels of that success and last year’s TRIR. ∎

Gary Benavidez, Truck Driver II-Tyrone, needs a five-year plan—or rather, a new one.

When he started as part of Chino Mine’s utility crew in 2018, Benavidez had clear milestones he wanted to reach. “Freeport has lots of jobs,” said Benavidez, “but a career means doing more than just showing up. So, I knew I wanted to get carded on the rubber tire, blade and dozer.”

In addition to his certifications – which he achieved – Benavidez also set a goal of progressing to Truck Driver II. In 2018, the same year he was hired, he advanced to Truck Driver Trainee, followed by Truck Driver I in 2019. After that, he also made the move to Tyrone Mine. Truck Driver II, however, proved more difficult for Benavidez.

Fortunately, New Mexico operations came up with a solution. In early 2023, their Technical Training Department contracted a tutor to assist employees with math, reading, study skills, test anxiety and more. Since being made available, employees from both sites have used this resource to achieve their promotions after previous unsuccessful attempts. Thanks to a little help from the tutor and a lot of perseverance on his part, Benavidez was one of them.

And where is Benavidez setting his sights after this accomplishment? Having recognized the amount of support he received during his own LOP journey, he now looks to be the same sort of mentor that was available to him and point others towards the resources that can help advance their careers. ∎ 

A new piece of equipment has the potential to turn Tyrone Mine into a well-oiled machine. 

In August, Tyrone commissioned LS30, a new lube truck. While just seeing new equipment already may create some buzz in Tyrone, the LS30 has generated actual excitement, particularly among those who fully understand the impact this upgrade can have on the operation.

With a fuel and lube service body sitting on a CAT chassis, LS30 towers over its predecessors at Tyrone. With that size come some clear advantages, including its 5,500-gallon diesel tank and its 250-gallon used oil evacuation tank.

Featuring the capability of fueling several haul trucks right from the field and fully evacuating the used oil from some heavy and auxiliary equipment, LS30 will promote efficiency by eliminating the need for vehicles to travel to fuel stations or wait for used oil to be drained in batches. For operations, that means critical savings in both time and unnecessary fuel costs.

"Fleet availability is the lifeblood of mining," said Ron Gerdes, Hydromet Manager-Tyrone. "Thanks to this exciting new resource, Tyrone will be able to more efficiently and effectively service our critical equipment in the field, allowing for savings in time, material and manpower."

To ensure availability and help this vital piece of equipment realize its full potential, an effort is underway to fully train every lube truck driver on the LS30. ∎

New Mexico operations have announced the recipients of their 2023 Community Investment Funds, with $450,000 being allocated to support programs and projects throughout Silver City, Tyrone and the Mining District.

"All around us are the signs of how the company and the community can come together in support of each other," said Randy Ellison, General Manager-Chino. "What would have been unthinkable just a few short years ago is now proof of the success we've had in reaching out to the community."

This year, the City of Bayard is the largest recipient, with $143,000 being awarded for their community center. The monies will be used to revitalize one of the most significant public resources in their community, including much-needed roof repairs.

The Tyrone Water and Wastewater Association also was awarded significant funding. The townsite has been earmarked $112,000 so it can assess and make repairs to the aging water tower that provides their only water access.

A combined $195,000 of additional funding was allotted for a community food project, behavioral health asset mapping, a therapeutic classroom, a community outreach building, and a transitional trade center.

“The Community Investment Fund demonstrates Freeport's continued commitment to strengthening community resiliency and creating lasting benefits,” said Sharon Offutt, Senior Social Performance Specialist-New Mexico Operations. “These grants are important because a committee of local community members make the selections, deciding what matters most and what will have the biggest impact.”

Every year, the Freeport-McMoRan Foundation awards funds to communities neighboring its mining operations. In 2023, the Foundation awarded over $3 million to projects in Arizona, Colorado, Iowa, New Mexico and Texas. ∎ 

© Freeport-McMoRan

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