VOL. 07  |  ISSUE 4  |  December 2024

New General Managers Focused on Immediate, Long-term Futures for Henderson and Climax Sites

With one general manager reporting to the other, the arrangement arguably was unorthodox, but the individuals themselves were not. To those who knew them, it was two men with proven track records of success. What else was there to say?

Well, that depends on who was asked.

As it turned out, the pair themselves had a lot to say – about molybdenum, about each other and, of course, about One Colorado. It might be surprising to learn that Climax Molybdenum is not in the mining business.

According to Eric Wiese, new General Manager-Henderson, it is in the business of creating a product – a product the site does mine but also mills, refines and processes to its customers’ exact specifications. And it is that vertical integration, that oversight over so many steps of the process from the extraction to final sale, that he believes keeps those customers coming back.

“You don’t always go with the cheapest supplier,” Wiese said. “You go with the supplier that offers you quality and consistency. That’s who keeps you running. That’s what we offer.”

With a background in global supply chain, it is no surprise that Wiese sees his business in those terms, and why he sees an inherent strength in One Colorado, a strategy that aligns all aspects toward a singular goal of creating that final product.

And he’s not alone.

For John Wilmot, new General Manager-Colorado Operations, that alignment is the key to creating long-term sustainability for Climax Molybdenum.

The Molybdenum Market

Between the limitations of their own pre-sales and the disproportionate influence that some countries have on the price of molybdenum, cost savings need to occur internally – even as unavoidable commodities, such as diesel and natural gas, have increased in price.

It is, Wilmot concedes, a tricky equation.

“We need to insulate our operations from the influence of the international markets,” Wilmot said. “That means doing more with what we have.”

With the completion of some major capital projects, Wilmot is more hopeful about the immediate future.

But he also is thinking about the long term.

“The goal is to make ourselves competitive right now,” Wilmot said. “But we have a clearly defined resource here, so we’re looking at plans that keep this mine running 10, 20 or even 30 years in the future.”

That means creating an organization that is leaner and more agile, he said, adding that they are trying to build a culture that understands the big picture and can execute resources across the entirety of Colorado operations.

Wilmot’s approach also reflects his history with the company.

Another of Freeport’s employees with family ties, Wilmot’s two decades with the company have taken him from the Americas to Indonesia, where he went on to oversee the same mill that his father once ran. And with that experience comes the understanding that success takes time, and that the resiliency the company needs requires both incremental change and buy-in.

Thankfully, Wilmot believes he already has the right partner to help realize those plans.

Getting to know John Wilmot

Years with Freeport: 22
Education: Bachelor’s degree in chemical engineering from the University of Nevada-Reno and a doctorate in chemical and materials engineering from the University of Nebraska-Lincoln
Hobbies: Handcrafting pens
What has your hobby taught you about leadership: “Patience, patience, patience. You’re never going to be perfect at anything the first time, but if you have the long-range vision and the patience to get there, nothing’s impossible.”

Two leaders, One Colorado

When it comes to Henderson’s general manager, Wilmot admits he was one of those surprised by the unconventional selection.

He also admits it did not take him long to get on board.

“Five minutes after meeting Eric, we were exactly aligned,” Wilmot said, “aligned in how we approach problems, how we approach people, how we approach changing the culture of an operation.”

Wiese agrees.

“We just clicked,” Wiese said. “There was some uncertainty over how this relationship was going to work – whether he was a leader, a mentor or a peer – but John told me to just run my business, and he’d be there to help me.”

Regardless of how others want to define that arrangement, Wiese said he is humbled and privileged to work with Wilmot and learn from the career trajectory of Colorado operations’ new general manager. For Wiese, not only is it an opportunity for himself but also for One Colorado, with this reporting structure serving as a prime example of breaking down barriers, removing employees from their silos and streamlining the operations.

“We are multiple sites with multiple downstream processes,” Wiese said. “Ultimately, though, we’re still one company. We need to act like it.”

The Road Less Traveled

Colorado Operations Embarks on a More Effective, Efficient Path Forward

Born of families that have resided in Colorado mining towns since the 1870s, Mike Kendrick knows as well as anyone those mountains are filled with stories.

He also knows that not all of them are in its past.

Now, the President of Climax Molybdenum is on a mission to start a new chapter, using three sites and two managers to tell a tale of One Colorado.

In June, Kendrick announced organizational changes at Climax Molybdenum, placing two Freeport veterans – John Wilmot and Eric Wiese – in key positions, shaking up some established norms in the process.

As part of that change, Wilmot was named General Manager-Colorado Operations, giving him direct oversight of Climax and overall responsibility for the Henderson mine. Wiese was named General Manager-Henderson, where he oversees its mine and mill but reports to Wilmot.

While announcements such as this are not uncommon, the reporting structure it introduced blurred the lines between hierarchy and partnership – and it raised some questions.

But according to Kendrick, those questions have a simple answer.

“It’s all about integration,” he said. “Integrating and streamlining our communications, our workforce, our whole operation into One Colorado.”

One Colorado, Kendrick said, is about using those operational improvements to become more effective and efficient. The goal is to utilize resources from across his operations – from extraction to sales – to create a company that can thrive in the molybdenum market.

Changing leadership for changing times

The idea of tapping into broader organizational resources also is reflected in the selection of Wilmot and Wiese, who not only are longtime Freeport veterans but also share a long working history with Kendrick. And from their professional experiences to their personal qualities, he has no doubt he made the right choice with both men.

“We’re not just extracting product, we’re extracting value,” Kendrick said. “John and Eric immediately understood the need to do more with what we have, and they have the unbounded energy, commitment and intelligence to make that happen.”
Even with that assurance, some viewed the selection of Wiese as unconventional. According to Kendrick, the decision partially was informed by the way the mining industry has evolved.

In the past, he explained, there was a time when engineers and metallurgists worked more independently at the sites; now, a greater number of the company’s employees are in administration, with key roles centralized around mine planning, maintenance, supply chain and other areas of operational improvement.

For Kendrick, this decision was about recognizing the strength in diversity, even when that diversity goes beyond things like gender and race.

“Diversity is also about our skills,” Kendrick said. “If we’re too focused on developing leadership from only one perspective, we lose valuable insight into the reality of how our entire operation runs.”

The road to One Colorado and beyond

By gaining that operational insight, Kendrick believes that Wilmot and Wiese will be able to leverage it into a clear roadmap for the future of Colorado Operations.

“It’s all about the right pounds at the right time,” he said, echoing a mantra of Josh Olmsted, President and Chief Operating Officer-Americas. In the face of numerous economic headwinds, Kendrick knows his sites need to mine what makes sense in a way that makes sense.

Illustrative of that, he points to the use of contractors in Colorado, which has increased in recent years and added considerable cost to his operations.

While Kendrick concedes that scope, skill and speed always will necessitate the use of contractors for some projects, they should not be considered as the basis for their core operations. The cost of that convenience, he says, is untenable.

To help ensure Climax Molybdenum remains viable for years and even generations to come, Kendrick looks to meet his sites’ needs internally instead, investing in the development of a highly skilled workforce, including everything from new hires and training to providing more employee housing solutions.

That emphasis on employees is no surprise, given that Kendrick views them as essential to the success of One Colorado.
“That mineralized rock has always been here,” Kendrick said. “But turning that into a profitable product means having the right people, in the right place, making the right decisions – at every level.”