Why Freeport McMoRan Copper & Gold (FCX) Is Down Today (Update)

Update (4:23 p.m.): Updated with Friday market close information.

NEW YORK (TheStreet) -- Freeport-McMoRan Copper & Gold  (FCX) dipped 4.85% to $32.19, down $1.64 from its previous close of $33.83, at the close of the trading day on Friday after the Democratic Republic of the Congo, the largest copper producer in Africa, announced to miners that it would start an electricity-rationing program and that its state-run power company would cease signing new contracts.

The restrictions are due to a power shortage in the nation that will take years to solve, according to BusinessWeek. Freeport-McMoRan said Friday that the rationing should not affect its short-term operations, specifically the enormous Tenke Fungurume Mining project in Katanga, but future expansion plans would need a stable energy supply, according to Reuters.

"There is currently sufficient power available for TFM to run its operations," Freeport-McMoRan spokesman Eric Kinneburg said in an email to Reuters. "We have experienced intermittent outages over the last several months and have been working with authorities to resolve the issues."

Kinneburg also said TFM plans invest approximately $220 million to obtain stable power. The company has started to refurbish four turbines at a local hydropower station, he told Reuters.

The stock nearly doubled its average volume of 10,946,100, as 20,011,873 shares changed hands on Friday. It hit a high of $33.46 and a low of $32.03 for the day; the stock holds a one-year high of $38.09 and a one-year low of $26.37.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you liked this article you might like

Intermediate Trade: Freeport-McMoRan

Freeport-McMoRan Looks a Little Vulnerable

When it Drops, it's Time to Shop: Cramer's 'Mad Money' Recap (Tuesday 9/12/17)

RH, Walt Disney, Wynn Resorts, Nvidia: 'Mad Money' Lightning Round

Playing the Gold Miners ETF