UPDATE 3-Freeport cuts molybdenum output, may cut copper

(Adds analyst comment, paragraphs 6-7,14)

By Euan Rocha

NEW YORK, Nov 10 (Reuters) - Freeport-McMoRan Copper & Gold Inc (FCX.N: Quote, Profile, Research) said on Monday it would cut molybdenum production and may cut output of copper due to weak demand and prices, but its shares rose after China announced a huge stimulus package.

Prices for base metals like copper and minor metals including molybdenum have collapsed in recent weeks on mounting concerns about the health of the world economy.

However, prices for copper and other metals rallied Monday after China announced a $586 billion economic stimulus plan, helping to push up Freeport's shares by as much as 11 percent before giving up much of that gain.

Freeport, the world's biggest publicly traded copper producer, said it was preparing revised plans at each of its copper operations to reduce costs and capital spending.

The company said it would provide an update on its revised operating plans in December.

Charles Bradford of Bradford Research/Soleil said the Chinese stimulus package was important, but cautioned that the plan was unlikely to be a quick fix.

"When you try to stimulate infrastructure building it's not instantaneous," said Bradford. "Even if you have projects, just to put them out to bid takes months."