FREEPORT-McMoRan INC.
                      1992 STOCK OPTION PLAN

                            SECTION 1

       Purpose.  The purposes of the Freeport-McMoRan Inc. 1992 Stock
Option Plan (the "Plan") are to promote the interests of Freeport-McMoRan
Inc. and its stockholders by (i) attracting and retaining executive and
other key employees, as hereinafter defined, of Freeport-McMoRan Inc. and
its affiliates; (ii) motivating such employees by means of
performance-related incentives to achieve longer-range performance goals;
and (iii) enabling such employees to participate in the long-term growth
and financial success of the Company.

                            SECTION 2

       Definitions.  As used in the Plan, the following terms shall have
the meanings set forth below:

       "Award" shall mean any Option, Stock Appreciation Right, Limited
Right or Other Stock-Based Award.

       "Award Agreement" shall mean any written agreement, contract or
other instrument or document evidencing any Award, which may, but need
not, be executed or acknowledged by a Participant.

       "Board" shall mean the Board of Directors of Freeport-McMoRan
Inc.

       "Code" shall mean the Internal Revenue Code of 1986, as amended
from time to time.

       "Committee" shall mean a committee of the Board designated by the
Board to administer the Plan and composed of not fewer than two
directors, each of whom, to the extent necessary to comply with Rule 16b-3 only,
is a "non-employee director" within the meaning of Rule 16b-3
and, to the extent necessary to comply with Section 162(m) only, is an
"outside director" under Section 162(m).  Until otherwise determined by
the Board, the Committee shall be the Corporate Personnel Committee of
the Board.

       "Company" shall mean Freeport-McMoRan Inc.

       "Designated Beneficiary" shall mean the beneficiary designated
by the Participant, in a manner determined by the Committee, to receive
the benefits due the Participant under the Plan in the event of the
Participant's death.  In the absence of an effective designation by the
Participant, Designated Beneficiary shall mean the Participant's estate.

       "Employee" shall mean (i) any person providing services as an
officer of the Company or a Subsidiary, whether or not employed by such
entity, (ii) any employee of the Company or a Subsidiary, including any
director who is also an employee of the Company or a Subsidiary, and
(iii) any person who has agreed in writing to become a person described
in clauses (i) or (ii) within not more than 30 days following the date
of grant of such person's first Award under the Plan.

       "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended from time to time.

       "Incentive Stock Option" shall mean an option granted under
Section 6 of the Plan that is intended to meet the requirements of
Section 422 of the Code or any successor provision thereto.

       "Limited Right" shall mean any right granted under Section 8 of
the Plan.

       "Nonqualified Stock Option" shall mean an option granted under
Section 6 of the Plan that is not intended to be an Incentive Stock
Option.

       "Offer" shall mean any tender offer, exchange offer or series of
purchases or other acquisitions, or any combination of those
transactions, as a result of which any person, or any two or more persons
acting as a group, and all affiliates of such person or persons, shall
own beneficially more than 40% of the Shares outstanding (exclusive of
Shares held in the Company's treasury or by the Company's Subsidiaries).

       "Offer Price" shall mean the highest price per Share paid in any
Offer that is in effect at any time during the period beginning on the
ninetieth day prior to the date on which a Limited Right is exercised and
ending on and including the date of exercise of such Limited Right.   Any
securities or property that comprise all or a portion of the
consideration paid for Shares in the Offer shall be valued in determining
the Offer Price at the higher of (i) the valuation placed on such
securities or property by the person or persons making such Offer, or
(ii) the valuation, if any, placed on such securities or property by the
Committee or the Board.

       "Option" shall mean an Incentive Stock Option or a Nonqualified
Stock Option.

       "Other Stock-Based Award" shall mean any right or award granted
under Section 9 of the Plan.

       "Participant" shall mean any Employee granted an Award under the
Plan.

       "Person" shall mean any individual, corporation, partnership,
association, joint-stock company, trust, unincorporated organization,
government or political subdivision thereof or other entity.

       "Rule 16b-3" shall mean Rule 16b-3 promulgated by the SEC under
the Exchange Act, or any successor rule or regulation thereto as in
effect from time to time.

       "SAR" shall mean any Stock Appreciation Right.

       "SEC" shall mean the Securities and Exchange Commission,
including the staff thereof, or any successor thereto.
       
       "Section 162(m)" shall mean Section 162(m) of the Code and all
regulations promulgated thereunder as in effect from time to time.

       "Shares" shall mean the shares of common stock, par value $.01
per share, of Freeport-McMoRan Inc., and such other securities of the
Company or a Subsidiary as the Committee may from time to time designate.

       "Stock Appreciation Right" shall mean any right granted under
Section 7 of the Plan.

       "Subsidiary" shall mean Freeport-McMoRan Copper & Gold Inc.,
Freeport-McMoRan Resource Partners, Limited Partnership, and any
corporation or other entity in which Freeport-McMoRan Inc. possesses
directly or indirectly equity interests representing at least 50% of the
total ordinary voting power or at least 50% of the total value of all
classes of equity interests of such corporation or other entity.


                            SECTION 3

       Administration.  The Plan shall be administered by the Committee. 
Subject to the terms of the Plan and applicable law, and in addition to
other express powers and authorizations conferred on the Committee by the
Plan, the Committee shall have full power and authority to:  (i)
designate Participants; (ii) determine the type or types of Awards to be
granted to an eligible Employee; (iii) determine the number of Shares to
be covered by, or with respect to which payments, rights or other matters
are to be calculated in connection with, Awards; (iv) determine the terms
and conditions of any Award; (v) determine whether, to what extent, and
under what circumstances Awards may be settled or exercised in cash,
whole Shares, other whole securities, other Awards, other property or
other cash amounts payable by the Company upon the exercise of that or
other Awards, or canceled, forfeited or suspended and the method or
methods by which Awards may be settled, exercised, canceled, forfeited
or suspended; (vi) determine whether, to what extent, and under what
circumstances cash, Shares, other securities, other Awards, other
property, and other amounts payable by the Company with respect to an
Award shall be deferred either automatically or at the election of the
holder thereof or of the Committee; (vii) interpret and administer the
Plan and any instrument or agreement relating to, or Award made under,
the Plan; (viii) establish, amend, suspend or waive such rules and
regulations and appoint such agents as it shall deem appropriate for the
proper administration of the Plan; and (ix) make any other determination
and take any other action that the Committee deems necessary or desirable
for the administration of the Plan.   Unless otherwise expressly provided
in the Plan, all designations, determinations, interpretations and other
decisions under or with respect to the Plan or any Award shall be within
the sole discretion of the Committee, may be made at any time and shall
be final, conclusive and binding upon all Persons, including the Company,
any Subsidiary, any Participant, any holder or beneficiary of any Award,
any stockholder of the Company and any Employee.


                            SECTION 4

       Eligibility.  Any Employee who is not a member of the Committee
shall be eligible to be granted an Award.


                            SECTION 5

       (a)  Shares Available for Awards.  Subject to adjustment as
provided in Section 5(b):

       (i)    Calculation of Number of Shares Available.   The number
of Shares with respect to which Awards may be granted under the Plan
shall be 8,000,000.  If, after the effective date of the Plan, an Award
granted under the Plan expires or is exercised, forfeited, canceled or
terminated without the delivery of Shares, then the Shares covered by
such Award or to which such Award relates, or the number of Shares
otherwise counted against the aggregate number of Shares with respect to
which Awards may be granted, to the extent of any such expiration,
exercise, forfeiture, cancellation or termination without the delivery
of Shares, shall again be, or shall become, Shares with respect to which
Awards may be granted.

       (ii)  Substitute Awards.  Any Shares delivered by the Company,
any Shares with respect to which Awards are made by the Company, or any
Shares with respect to which the Company becomes obligated to make
Awards, through the assumption of, or in substitution for, outstanding
awards previously granted by an acquired company or a company with which
the Company combines, shall not be counted against the Shares available
for Awards under the Plan.

       (iii)  Sources of Shares Deliverable Under Awards.  Any Shares
delivered pursuant to an Award may consist of authorized and unissued
Shares or of treasury Shares, including Shares held by the Company or a
Subsidiary and acquired in the open market or otherwise obtained by the
Company or a Subsidiary.

       (b)  Adjustments.  In the event that the Committee determines
that any dividend or other distribution (whether in the form of cash,
Shares, Subsidiary securities, other securities or other property),
recapitalization, stock split, reverse stock split, reorganization,
merger, consolidation, split-up, spin-off, combination, repurchase or
exchange of Shares or other securities of the Company, issuance of
warrants or other rights to purchase Shares or other securities of the
Company, or other similar corporate transaction or event affects the
Shares such that an adjustment is determined by the Committee to be
appropriate to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan, then the
Committee may, in its sole discretion and in such manner as it may deem
equitable, adjust any or all of (i) the number and type of Shares (or
other securities or property) with respect to which Awards may be
granted, (ii) the number and type of Shares (or other securities or
property) subject to outstanding Awards, and (iii) the grant or exercise
price with respect to any Award or, if deemed appropriate, make provision
for a cash payment to the holder of an outstanding Award or, if deemed
appropriate, adjust outstanding Awards to provide the rights contemplated
by Section 9(b) hereof; provided, in each case, that with respect to
Awards of Incentive Stock Options no such adjustment shall be authorized
to the extent that such authority would cause the Plan to violate Section
422(b)(1) of the Code or any successor provision thereto; and provided
further, that the number of Shares subject to any Award denominated in
Shares shall always be a whole number.


                            SECTION 6

       (a)  Stock Options.  Subject to the provisions of the Plan, the
Committee shall have sole and complete authority to determine the
Employees to whom Options shall be granted, the number of Shares to be
covered by each Option, the option price therefor and the conditions and
limitations applicable to the exercise of the Option.   The Committee
shall have the authority to grant Incentive Stock Options, Nonqualified
Stock Options or both.   In the case of Incentive Stock Options, the
terms and conditions of such grants shall be subject to and comply with
such rules as may be required by Section 422 of the Code, as from time
to time amended, and any implementing regulations.  Except in the case
of an Option granted in assumption of or substitution for an outstanding
award of a company acquired by the Company or with which the Company
combines, the exercise price of any Option granted under this Plan shall
not be less than 100% of the fair market value of the underlying Shares
on the date of grant.

       (b)  Exercise.  Each Option shall be exercisable at such times
and subject to such terms and conditions as the Committee may, in its
sole discretion, specify in the applicable Award Agreement or thereafter,
provided, however, that in no event may any Option granted hereunder be
exercisable after the expiration of 10 years after the date of such
grant.  The Committee may impose such conditions with respect to the
exercise of Options, including without limitation, any condition relating
to the application of Federal or state securities laws, as it may deem
necessary or advisable. 

       (c)  Payment.  No Shares shall be delivered pursuant to any
exercise of an Option until payment in full of the option price therefor
is received by the Company.  Such payment may be made in cash, or its
equivalent, or, if and to the extent permitted by the Committee, by
applying cash amounts payable by the Company upon the exercise of such
Option or other Awards by the holder thereof or by exchanging whole
Shares owned by such holder (which are not the subject of any pledge or
other security interest), or by a combination of the foregoing, provided
that the combined value of all cash, cash equivalents, cash amounts so
payable by the Company upon exercises of Awards and the fair market value
of any such whole Shares so tendered to the Company, valued (in
accordance with procedures established by the Committee) as of the
effective date of such exercise, is at least equal to such option price.


                            SECTION 7

       (a)  Stock Appreciation Rights.   Subject to the provisions of
the Plan, the Committee shall have sole and complete authority to
determine the Employees to whom Stock Appreciation Rights shall be
granted, the number of Shares to be covered by each Stock Appreciation
Right, the grant price thereof and the conditions and limitations
applicable to the exercise thereof.  Stock Appreciation Rights may be
granted in tandem with another Award, in addition to another Award, or
freestanding and unrelated to any other Award.  Stock Appreciation Rights
granted in tandem with or in addition to an Option or other Award may be
granted either at the same time as the Option or other Award or at a
later time.  Stock Appreciation Rights shall not be exercisable after the
expiration of 10 years after the date of grant.   Except in the case of
a Stock Appreciation Right granted in assumption of or substitution for
an outstanding award of a company acquired by the Company or with which
the Company combines, the grant price of any Stock Appreciation Right
granted under this Plan shall not be less than 100% of the fair market
value of the Shares covered by such Stock Appreciation Right on the date
of grant or, in the case of a Stock Appreciation Right granted in tandem
with a then outstanding Option or other Award, on the date of grant of
such related Option or Award.

       (b)  A Stock Appreciation Right shall entitle the holder thereof
to receive an amount equal to the excess, if any, of the fair market
value of a Share on the date of exercise of the Stock Appreciation Right
over the grant price.  Any Stock Appreciation Right shall be settled in
cash, unless the Committee shall determine at the time of grant of a
Stock Appreciation Right that it shall or may be settled in cash, Shares
or a combination of cash and Shares.


                            SECTION 8

       (a)  Limited Rights.   Subject to the provisions of the Plan, the
Committee shall have sole and complete authority to determine the
Employees to whom Limited Rights shall be granted, the number of Shares
to be covered by each Limited Right, the grant price thereof and the
conditions and limitations applicable to the exercise thereof.  Limited
Rights may be granted in tandem with another Award, in addition to
another Award, or freestanding and unrelated to any Award.  Limited
Rights granted in tandem with or in addition to an Award may be granted
either at the same time as the Award or at a later time.   Limited Rights
shall not be exercisable after the expiration of 10 years after the date
of grant and shall only be exercisable during a period determined at the
time of grant by the Committee beginning not earlier than one day and
ending not more than ninety days after the expiration date of an Offer. 
Except in the case of a Limited Right granted in assumption of or
substitution for an outstanding award of a company acquired by the
Company or with which the Company combines, the grant price of any
Limited Right granted under this Plan shall not be less than 100% of the
fair market value of the Shares covered by such Limited Right on the date
of grant or, in the case of a Limited Right granted in tandem with a then
outstanding Option or other Award, on the date of grant of such related
Option or Award.

       (b)  A Limited Right shall entitle the holder thereof to receive
an amount equal to the excess, if any, of the Offer Price on the date of
exercise of the Limited Right over the grant price.  Any Limited Right
shall be settled in cash, unless the Committee shall determine at the
time of grant of a Limited Right that it shall or may be settled in cash,
Shares or a combination of cash and Shares.


                            SECTION 9

       (a)  Other Stock-Based Awards.  The Committee is hereby
authorized to grant to eligible Employees an "Other Stock-Based Award",
which shall consist of an Award, the value of which is based in whole or
in part on the value of Shares, that is not an instrument or Award
specified in Sections 6 through 8 of this Plan.  Other Stock-Based Awards
may be awards of Shares or may be denominated or payable in, valued in
whole or in part by reference to, or otherwise based on or related to,
Shares (including, without limitation, securities convertible or
exchangeable into or exercisable for Shares), as deemed by the Committee
consistent with the purposes of the Plan.   The Committee shall determine
the terms and conditions of any such Other Stock-Based Award.   Except
in the case of an Other Stock-Based Award granted in assumption of or in
substitution for an outstanding award of a company acquired by the
Company or with which the Company combines, the price at which securities
may be purchased pursuant to any Other Stock-Based Award granted under
this Plan, or the provision, if any, of any such Award that is analogous
to the purchase or exercise price, shall not be less than 100% of the
fair market value of the securities to which such Award relates on the
date of grant.

       (b)  Dividend Equivalents.  In the sole and complete discretion
of the Committee, an Award, whether made as an Other Stock-Based Award
under this Section 9 or as an Award granted pursuant to Sections 6
through 8 hereof, may provide the holder thereof with dividends or
dividend equivalents, payable in cash, Shares, Subsidiary securities,
other securities or other property on a current or deferred basis.

                            SECTION 10

       (a)  Amendments to the Plan.   The Board may amend, suspend or
terminate the Plan or any portion thereof at any time, provided that no
amendment shall be made without stockholder approval if such approval is
necessary to comply with any tax or regulatory requirement. 
Notwithstanding anything to the contrary contained herein, the Committee
may amend the Plan in such manner as may be necessary for the Plan to
conform with local rules and regulations in any jurisdiction outside the
United States.

       (b)  Amendments to Awards.   The Committee may amend, modify or
terminate any outstanding Award with the holder's consent at any time
prior to payment or exercise in any manner not inconsistent with the
terms of the Plan, including without limitation, (i) to change the date
or dates as of which an Award becomes exercisable, or (ii) to cancel an
Award and grant a new Award in substitution therefor under such different
terms and conditions as it determines in its sole and complete discretion
to be appropriate.

       (c)  Adjustment of Awards Upon the Occurrence of Certain Unusual
or Nonrecurring Events.  The Committee is hereby authorized to make
adjustments in the terms and conditions of, and the criteria included in,
Awards in recognition of unusual or nonrecurring events (including,
without limitation, the events described in Section 5(b) hereof)
affecting the Company, or the financial statements of the Company or any
Subsidiary, or of changes in applicable laws, regulations, or accounting
principles, whenever the Committee determines that such adjustments are
appropriate to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan.

       (d)  Cancellation.  Any provision of this Plan or any Award
Agreement to the contrary notwithstanding, the Committee may cause any
Award granted hereunder to be canceled in consideration of a cash payment
or alternative Award made to the holder of such canceled Award equal in
value to such canceled Award.  The determinations of value under this
subparagraph shall be made by the Committee in its sole discretion.


                            SECTION 11

       (a)  Delegation.  Subject to the terms of the Plan and applicable
law, the Committee may delegate to one or more officers of the Company
the authority, subject to such terms and limitations as the Committee
shall determine, to grant Awards to, or to cancel, modify or waive rights
with respect to, or to alter, discontinue, suspend, or terminate Awards
held by, Employees who are not officers or directors of the Company for
purposes of Section 16 of the Exchange Act, or any successor section
thereto, or who are otherwise not subject to such Section.

       (b)  Award Agreements.   Each Award hereunder shall be evidenced
by a writing delivered to the Participant that shall specify the terms
and conditions thereof and any rules applicable thereto, including but
not limited to the effect on such Award of the death, retirement or other
termination of employment of the Participant and the effect thereon, if
any, of a change in control of the Company.

       (c)  Withholding.   A Participant may be required to pay to the
Company, and the Company shall have the right to deduct from all amounts
paid to a Participant (whether under the Plan or otherwise), any taxes
required by law to be paid or withheld in respect of Awards hereunder to
such Participant.   The Committee may provide for additional cash
payments to holders of Awards to defray or offset any tax arising from
the grant, vesting, exercise or payment of any Award.

       (d)  Transferability.  No Awards granted hereunder may be
transferred, pledged, assigned or otherwise encumbered by a Participant
except: (i) by will; (ii) by the laws of descent and distribution; (iii)
pursuant to a domestic relations order, as defined in the Code, if
permitted by the Committee and so provided in the Award Agreement or an
amendment thereto; or (iv) as to Options only, if permitted by the
Committee and so provided in the Award Agreement or an amendment thereto,
(a) to Immediate Family Members, (b) to a partnership in which Immediate
Family Members, or entities in which Immediate Family Members are the
owners, members or beneficiaries, as appropriate, are the partners, (c)
to a limited liability company in which Immediate Family Members, or
entities in which Immediate Family Members are the owners, members or
beneficiaries, as appropriate, are the members, or (d) to a trust for the
benefit of Immediate Family Members; provided, however, that no more than
a de minimus beneficial interest in a partnership, limited liability
company or trust described in (b), (c) or (d) above may be owned by a
person who is not an Immediate Family Member or by an entity that is not
beneficially owned solely by Immediate Family Members.  "Immediate Family
Members" shall be defined as the spouse and natural or adopted children
or grandchildren of the Participant and their spouses.  To the extent
that an Incentive Stock Option is permitted to be transferred during the
lifetime of the Participant, it shall be treated thereafter as a
Nonqualified Stock Option.  Any attempted assignment, transfer, pledge,
hypothecation or other disposition of Awards, or levy of attachment or
similar process upon Awards not specifically permitted herein, shall be
null and void and without effect.  The designation of a Designated
Beneficiary shall not be a violation of this Section 11(d).

       (e)  Share Certificates.  All certificates for Shares or other
securities delivered under the Plan pursuant to any Award or the exercise
thereof shall be subject to such stop transfer orders and other
restrictions as the Committee may deem advisable under the Plan or the
rules, regulations, and other requirements of the SEC, any stock exchange
upon which such Shares or other securities are then listed, and any
applicable federal or state laws, and the Committee may cause a legend
or legends to be put on any such certificates to make appropriate
reference to such restrictions.

       (f)  No Limit on Other Compensation Arrangements.   Nothing
contained in the Plan shall prevent the Company from adopting or
continuing in effect other compensation arrangements, which may, but need
not, provide for the grant of options, stock appreciation rights and
other types of Awards provided for hereunder (subject to stockholder
approval of any such arrangement if approval is required), and such
arrangements may be either generally applicable or applicable only in
specific cases.

       (g)  No Right to Employment.   The grant of an Award shall not
be construed as giving a Participant the right to be retained in the
employ of the Company or any Subsidiary.  The Company or any Subsidiary
may at any time dismiss a Participant from employment, free from any
liability or any claim under the Plan, unless otherwise expressly
provided in the Plan or in any Award Agreement.   No Employee,
Participant or other person shall have any claim to be granted any Award,
and there is no obligation for uniformity of treatment of Employees,
Participants or holders or beneficiaries of Awards.

       (h)  Governing Law.   The validity, construction, and effect of
the Plan, any rules and regulations relating to the Plan and any Award
Agreement shall be determined in accordance with the laws of the State
of Delaware.

       (i)  Severability.  If any provision of the Plan or any Award is
or becomes or is deemed to be invalid, illegal, or unenforceable in any
jurisdiction or as to any Person or Award, or would disqualify the Plan
or any Award under any law deemed applicable by the Committee, such
provision shall be construed or deemed amended to conform to applicable
laws, or if it cannot be construed or deemed amended without, in the
determination of the Committee, materially altering the intent of the
Plan or the Award, such provision shall be stricken as to such
jurisdiction, Person or Award and the remainder of the Plan and any such
Award shall remain in full force and effect.

       (j)  No Trust or Fund Created.  Neither the Plan nor any Award
shall create or be construed to create a trust or separate fund of any
kind or a fiduciary relationship between the Company and a Participant
or any other Person.  To the extent that any Person acquires a right to
receive payments from the Company pursuant to an Award, such right shall
be no greater than the right of any unsecured general creditor of the
Company.

       (k)  No Fractional Shares.  No fractional Shares shall be issued
or delivered pursuant to the Plan or any Award, and the Committee shall
determine whether cash, other securities or other property shall be paid
or transferred in lieu of any fractional Shares or whether such
fractional Shares or any rights thereto shall be canceled, terminated,
or otherwise eliminated.

       (l)  Headings.  Headings are given to the subsections of the Plan
solely as a convenience to facilitate reference.   Such headings shall
not be deemed in any way material or relevant to the construction or
interpretation of the Plan or any provision thereof.


                            SECTION 12

       Effective Date of the Plan.  The Plan shall be effective as of
the date of its approval by the stockholders of the Company.


                            SECTION 13

       Term of the Plan.  No Award shall be granted under the Plan after
the fifth anniversary of the effective date of the Plan; however, unless
otherwise expressly provided in the Plan or in an applicable Award
Agreement, any Award theretofore granted may, and the authority of the
Committee to amend, alter, adjust, suspend, discontinue, or terminate any
such Award or to waive any conditions or rights under any such Award
shall, extend beyond such date.