Phelps Dodge

Phelps Dodge Corporation
Company type	Public
Industry	Mining, copper, molybdenum, coal, lumber
Founded	1834
Founder	Anson Greene Phelps, William Earle Dodge, Sr., Daniel James
Defunct	2007-03-19
Fate	Acquired by Freeport-McMoRan
Headquarters	Phoenix, United States
Area served	United States, Peru, Democratic Republic of the Congo
Key people	Dr. James Douglas (first president after restructuring)
Products	Copper, molybdenum, coal, lumber
Number of employees	13,500+
Parent	Freeport-McMoRan (after 2007)

Phelps Dodge Corporation originated as an American mining enterprise established in 1834, initially functioning as an import-export business founded by Anson Greene Phelps alongside his sons-in-law William Earle Dodge, Sr. and Daniel James. While Dodge and James managed the Liverpool-based branch known as Phelps, James & Co., the firm primarily exported cotton from the Deep South of the United States to England and imported vital industrial metals such as tin, iron, and copper. As settlement expanded westward across North America, Phelps Dodge acquired various mining properties, including the notable Copper Queen Mine in Arizona and coal operations in Dawson, New Mexico, eventually controlling its own mining sites and railroad lines. By the end of the 19th century, it had transformed into a prominent mining corporation.

On March 19, 2007, Freeport-McMoRan finalized a $25.9 billion merger with Phelps Dodge Corporation.

History

In 1821, Anson G. Phelps entered into a partnership with merchant Elisha Peck based in New York City to establish an import-export company focused on shipping American cotton to England and bringing in metals crucial for industrial development. Peck relocated to Liverpool to oversee operations there but was succeeded in 1834 by Daniel James, who directed the Liverpool office until his passing in 1876. This era marked the formal inception of Phelps Dodge and Company’s commercial activities.

Expansion

Following Anson G. Phelps' death, his sons-in-law acquired his ownership stake while maintaining the company’s original name and its import-export business model. In 1880, Phelps Dodge invested in Arizona Territory’s Detroit Copper Company. They enlisted Dr. James Douglas to assess the property, which led to mining endeavors in the Warren District with the acquisition of the Atlanta Copper Mine in 1882. By 1885, the Atlanta and Copper Queen mines merged into the Copper Queen Consolidated Mining Company, which emerged as one of Arizona’s most productive mining operations during the early 20th century.

Concentrating on copper wire and cable manufacturing, Phelps Dodge leveraged industrial growth during the Industrial Revolution. To minimize expenses, it financed railroad construction that enabled efficient transportation between its mines and key rail hubs servicing eastern markets.

In 1895, Phelps Dodge entered into an agreement with Nichols Copper Company to supply more than one million pounds of blister copper over three years. This collaboration continued until 1922 and accounted for 90% of Nichols’ blister copper requirements. Throughout the 1920s, Phelps Dodge invested $3.5 million toward modernizing Nichols’ plant in return for equity stakes, substantially increasing output. Following Dr. William Henry Nichols’ death in 1930, Phelps Dodge acquired Nichols’ Laurel Hill facility.

By the late 1800s, aside from metals production, Phelps Dodge had also become one of the leading lumber producers in the United States.

In 1900, after Tombstone Consolidated Mines Company declared bankruptcy in 1909 due to unsuccessful attempts at revitalizing mining operations there, Phelps Dodge purchased its claims.

In 1908, with the original founders deceased, Phelps Dodge restructured as a public holding company to manage its varied business interests. Dr. Douglas was appointed as its inaugural president.

Labor relations

The company became well-known for its anti-union measures, particularly the 1917 Bisbee Deportation. Working alongside local residents and the county sheriff, it deputized roughly 2,000 posse members who detained close to 1,300 striking miners connected with the Industrial Workers of the World (IWW) in Bisbee, Lowell, and Warren, Arizona. By portraying the IWW as saboteurs, the company forcibly expelled them to Hermanas, New Mexico, while intercepting communications to prevent information from spreading.

At its Morenci copper mine in Arizona, Phelps Dodge encountered a prolonged and violent strike between 1983 and 1986, which ended with one of the largest union decertifications recorded in U.S. labor history.

Subdivisions

Phelps Dodge operated significant copper mining ventures in Peru within South America. In Africa’s Democratic Republic of the Congo, it held a controlling stake in the Tenke Fungurume project—recognized as one of the world’s largest undeveloped copper and cobalt reserves.

Its subsidiary Climax Molybdenum ranks as the leading primary producer of molybdenum globally. Since 1976, the Henderson mine near Empire, Colorado, has yielded over 160 million tons of ore and approximately 770 million pounds of molybdenum. Climax also controls the Climax molybdenum mine located near Leadville, Colorado.

In 1906, Phelps Dodge expanded into coal mining by acquiring New Mexico’s Dawson Fuel Company to support its smelting activities. The Dawson Stag Canyon No. 2 mine explosion remains one of the deadliest coal mining disasters in U.S. history, with 264 fatalities.

Worldwide, the company employed more than 13,500 individuals.

Expansion and acquisition

On November 19, 2006, Freeport-McMoRan revealed plans to purchase Phelps Dodge for $25.9 billion in a combination of cash and stock. After receiving shareholder approval on March 14, 2007, the transaction was finalized on March 19, forming the largest publicly traded copper company globally with a workforce of 25,000.

At the time of acquisition, Phelps Dodge operated extensive copper mining operations throughout Arizona—including Bagdad, Morenci, Sahuarita, Safford, and Miami—and New Mexico locations such as Tyrone and El Chino Mine near Bayard. Several sites also produced molybdenum. Development was underway at the Safford Mine near Safford, Arizona. In 2006, Phelps Dodge reported revenues of $11.91 billion, operating income of $4.23 billion, and net income totaling $3.02 billion.

Environmental record

By 2013, the Political Economy Research Institute ranked Phelps Dodge as the 41st-largest corporate emitter of Air pollution in the United States, releasing around 4.5 million pounds of hazardous substances annually. These included sulfuric acid, chromium compounds, lead compounds, and chlorine. The Center for Public Integrity identified Phelps Dodge as potentially responsible for contamination at no fewer than 13 Superfund toxic waste sites, highlighting environmental issues tied to its operations.

Worker death

In June 1998, Reynaldo Delgado, an employee at Phelps Dodge’s smelting facility in Hurley, New Mexico, was ordered by supervisors to enter a tunnel alone during an emergency "runaway" situation to clear an overflowing ladle containing molten slag. Despite his lack of proper qualifications and repeated objections, Delgado was forced to carry out this task. An explosion occurred inside the tunnel causing severe burns; he later succumbed to third-degree burns. This tragedy emphasizes significant safety and operational hazards within Phelps Dodge’s industrial processes.

References

External links

Phelps, Dodge & Co. archival materials at the New York Public Library