SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

                            FORM 10-Q

     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934

               For the Quarter Ended June 30, 1998



                 Commission File Number: 1-13617



                  Freeport-McMoRan Sulphur Inc.



      Incorporated in Delaware               72-1392855
                                 (IRS Employer Identification No.)


       1615 Poydras Street, New Orleans, Louisiana  70112


 Registrant's telephone number, including area code: (504) 582-4000


Indicate by check mark whether the  registrant (1) has filed  all
reports required  to be  filed  by Section  13  or 15(d)  of  the
Securities Exchange Act  of 1934 during  the preceding 12  months
(or for such shorter period that  the registrant was required  to
file such  reports), and  (2) has  been  subject to  such  filing
requirements for the past 90 days. Yes X No


On June 30,  1998, there  were issued  and outstanding  9,740,603
shares of  the registrant's  Common Stock,  par value  $0.01  per
share.


                  FREEPORT-McMoRan SULPHUR INC.

                        TABLE OF CONTENTS


                                                            Page
 Part I.  Financial Information

   Financial Statements:

      Condensed Balance Sheets                                3

      Statements of Operations                                4


      Statements of Cash Flow                                 5


      Notes to Financial Statements                           6


   Remarks                                                    7

   Report of Independent Public Accountants                   8

   Management's  Discussion  and  Analysis  of   Financial
    Condition and Results of Operations                       9


 Part II.  Other Information                                 12


 Signature                                                   13


 Exhibit Index                                              E-1





<PAGE>  2


                  FREEPORT-McMoRan SULPHUR INC.
                 PART I.  FINANCIAL INFORMATION

Item 1. Financial Statements.

<TABLE>
<CAPTION>
                  FREEPORT-McMoRan SULPHUR INC.
              CONDENSED BALANCE SHEETS (Unaudited)

                                       June 30,    December 31,
                                         1998         1997 
                                       --------    ------------  
                                           (In Thousands)
<S>                                    <C>         <C>
ASSETS
Current assets:
Cash and cash equivalents              $ 33,790     $ 21,293
Accounts receivable                      24,875       33,739
Inventories                              23,531       34,421
Prepaid expenses and other               10,142        5,982
                                       --------     --------
      Total current assets               92,338       95,435
Property, plant and equipment, net      100,151      109,833
Deferred tax asset                       53,856       56,757
Other assets                             10,303       11,008
                                       --------     --------
Total assets                           $256,648     $273,033
                                       ========     ========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
 accrued liabilities                   $ 25,191     $ 25,175
Current portion of reclamation
 and mine shutdown reserves              16,349        4,656
                                       --------     --------
      Total current liabilities          41,540       29,831
Reclamation and mine shutdown reserves   52,141       67,518
Accrued postretirement and
 pension benefits                        10,771       15,594
Other liabilities                        46,227       45,693
Stockholders' equity                    105,969      114,397
                                       --------     --------
Total liabilities and
 stockholders' equity                  $256,648     $273,033
                                       ========     ========
</TABLE>

The accompanying notes are an integral part of these financial
statements.

<PAGE> 3

<TABLE>
<CAPTION>
                  FREEPORT-McMoRan SULPHUR INC.
              STATEMENTS OF OPERATIONS (Unaudited)

                          Three Months Ended   Six Months Ended
                              June 30,              June 30,       
                          -----------------   ------------------
                            1998      1997      1998      1997     
                          -------   -------   --------  --------                
                         (In Thousands, Except Per Share Amounts)
<S>                       <C>       <C>       <C>       <C>
Revenues                  $56,672   $54,355   $113,662  $107,750
Cost of sales:
Production and delivery    47,006    43,103     96,032    85,767
Depreciation and
 amortization              10,993     8,614     12,735    16,889
                          -------   -------   --------  --------
      Total cost of sales  57,999    51,717    108,767   102,656
General and
 administrative expenses    2,674     1,927      5,374     3,834
                          -------   -------   --------  --------
  Total costs and expenses 60,673    53,644    114,141   106,490
                          -------   -------   --------  --------
Operating  income (loss)   (4,001)      711       (479)    1,260
Other income, net             432         -        706        -
                          -------   -------   --------  --------
Net income (loss)
 before income taxes       (3,569)      711        227     1,260
Benefit (provision) for
 income taxes               1,235         -        (79)        -
                          -------   -------   --------  --------
Net income (loss)         $(2,334)  $   711   $    148  $  1,260
                          =======   =======   ========  ======== 

Net income (loss) per share of common stock:
  Basic                     $(.24)     $.07       $.01      $.12
  Diluted                   $(.24)     $.07       $.01      $.12

Average common shares outstanding:
  Basic                     9,780    10,347d     9,950    10,347d
  Diluted                   9,780    10,347d    10,031    10,347d

PRO FORMA DATA  
Net income before income taxes
  reported above                    $   711              $ 1,260
Pro forma provision
 for income taxes                      (246)                (436)
                                    -------              -------
Pro forma net income                $   465              $   824
                                    =======              =======
Pro forma net income
 per share                             $.04                 $.08

Pro forma average
 shares outstanding                  10,347               10,347

</TABLE>

The accompanying notes  are an integral  part of these  financial
statements.

<PAGE>  4

<TABLE>
<CAPTION> 
                  FREEPORT-McMoRan SULPHUR INC.
               STATEMENTS OF CASH FLOW (Unaudited)

                                             Six Months 
                                           Ended June 30,   
                                        -------------------- 
                                         1998          1997
                                        -------      -------
                                            (In Thousands)
<S>                                     <C>          <C>
Cash flow from operating activities:
Net income                              $   148      $ 1,260
Adjustments to reconcile net income
  to net cash provided by
  operating activities:
  Depreciation and amortization          12,735       16,889
  Curtailment gain on Culberson pension and
    postretirement liabilities           (4,148)       -    
  Reclamation and mine shutdown 
    expenditures                         (3,505)      (4,822)
  Utilization of deferred tax asset          79        -    
  Other                                    (307)        (880)
  (Increase) decrease in working capital:
    Accounts receivable                   8,937        2,005
    Inventories                          10,890          578
    Prepaid expenses and other           (1,338)       1,309
    Accounts payable and
     accrued liabilities                   (303)         (71)
                                        -------      -------
Net cash provided by
 operating activities                    23,188       16,268
                                        -------      -------

Cash flow from investing activities:
Capital expenditures                     (2,288)      (2,744)
Sale of assets                              141          891
                                        -------      -------
Net cash used in investing activities    (2,147)      (1,853)
                                        -------      -------

Cash flow from financing activities:
Net distributions to PLP                  -          (15,944)
Purchase of FSC common stock             (8,847)       -    
Other                                       303        -    
                                        -------      -------
Net cash used in financing activities    (8,544)     (15,944)
                                        -------      -------
Net increase (decrease) in cash
 and cash equivalents                    12,497       (1,529)
Cash and cash equivalents 
 at beginning of year                    21,293        3,116
                                        -------      -------
Cash and cash equivalents
 at end of period                       $33,790      $ 1,587
                                        =======      =======

</TABLE>

The accompanying notes are an integral part of these financial
statements.

<PAGE>  5


                  FREEPORT-McMoRan SULPHUR INC.
                  NOTES TO FINANCIAL STATEMENTS

1.  BACKGROUND AND BASIS OF PRESENTATION
Background.    Freeport-McMoRan  Sulphur  Inc.  (FSC)  became  an
independent, publicly held company as of December 22, 1997,  when
Phosphate Resource Partners  Limited Partnership (PLP),  formerly
Freeport-McMoRan   Resource   Partners,   Limited    Partnership,
contributed to  FSC  its  sulphur business,  including  its  58.3
percent interest  in its  Main Pass  sulphur and  oil  operations
(Main Pass), together with the 25.0 percent interest in Main Pass
previously owned  by  IMC  Global Inc.  (IGL),  a  joint  venture
partner with  PLP.   PLP  distributed  10,346,578 shares  of  FSC
common stock pro  rata to its  unitholders (the Distribution)  in
connection with the  merger of Freeport-McMoRan  Inc. (FTX),  the
former administrative managing general partner and majority owner
of PLP, into IGL (the Merger).  FTX distributed the shares of FSC
common stock that it received from  PLP to FTX stockholders on  a
pro rata basis in connection with the Merger.

Basis of Presentation.  FSC operated  as an integral part of  PLP
prior  to  the   Distribution.     For  periods   prior  to   the
Distribution, FSC's financial statements  were prepared from  the
books and records of PLP. FSC's investment in the Main Pass joint
venture is reflected using the proportionate consolidation method
in accordance  with  standard  industry practice.    No  interest
expense was allocated to FSC as  no interest costs were  incurred
in the past  by FSC and  no debt previously  recorded by PLP  was
assumed by FSC. Intercompany balances between PLP and FSC related
to various general and  administrative and similar charges  which
were  settled  monthly.    PLP  is  not  a  taxable  entity   and
historically did  not  provide income  taxes  on the  results  of
operations of  FSC.   Upon formation  of FSC  as a  wholly  owned
taxable  subsidiary  of  PLP  prior  to  being  spun-off  to  PLP
unitholders, a deferred tax asset of $63.8 million was recognized
in 1997  to reflect  the excess  of tax  over book  basis in  the
related assets.  Unaudited pro forma income taxes for the second-
quarter and  six-month  periods  of  1997  are  included  in  the
statements of operations as if FSC were a separate taxable entity
during those periods.

2.  NEW ACCOUNTING STANDARDS
In February 1997, the Financial Accounting Standards Board (FASB)
issued Statement of Financial Accounting Standards No. 128  (SFAS
128), "Earnings Per Share,"  which simplifies the computation  of
earnings per share.  FSC adopted  SFAS 128 in the fourth  quarter
of 1997.

     Basic net  income per  share of  common stock  for the  1998
periods was  calculated  by  dividing net  income  applicable  to
common stock  by the  weighted-average  number of  common  shares
outstanding during the periods. Diluted  net income per share  of
common stock was calculated by dividing net income applicable  to
common stock  by the  weighted-average  number of  common  shares
outstanding during the  period plus  the net  effect of  dilutive
stock options. Options to  purchase approximately 741,000  shares
of common stock at an average exercise price of $11.09 during the
second quarter  of 1998  were excluded  from the  calculation  as
anti-dilutive considering  FSC's second-quarter  loss.   Dilutive
stock  options  representing  approximately  81,000  shares  were
included for the six-month 1998 period. 

     Options to  purchase  15,676  shares and  18,676  shares  of
common stock at average exercise prices  of $13.81 per share  and
$13.77 per  share,  respectively,  were  outstanding  during  the
second-quarter and six-month periods  of 1998, respectively,  but
were not included in  the computation of  diluted net income  per
share of common stock. These options were excluded because  their
exercise prices were greater than the average market price of the
common stock during the respective periods.

     Basic and diluted net income per  share of common stock  for
the 1997 periods were calculated by  dividing net income for  the
applicable period by the number of shares distributed on December
22, 1997 (10,346,578  shares).   FSC had  no options  outstanding
prior to the fourth quarter of 1997.

     In June  1998, the  FASB issued  SFAS 133,  "Accounting  for
Derivative Instruments and  Hedging Activity," which  establishes
accounting  and   reporting   standards  requiring   that   every
derivative instrument (including  certain derivative  instruments
embedded in other contracts) be recorded in the balance sheet  as
either an asset or  liability measured at its  fair value.   SFAS
133 requires  that  changes in  the  derivative's fair  value  be
recognized currently in earnings unless specific hedge accounting
criteria are met. Special accounting for qualifying hedges allows
a derivative's gains and losses to offset related results on  the
hedged item in the income statement, and requires that a  company
must formally document, designate and assess the effectiveness of
transactions  that  receive  hedge  accounting.    SFAS  133   is
effective for fiscal  years beginning  after June  15, 1999  with
earlier application permitted beginning as early as July 1, 1998.

<PAGE>  6

FSC is currently assessing the impact that adoption of SFAS  133
would have on its current accounting for the financial  contracts
discussed below and on its financial statements, if any, and  has
not yet determined the timing or method of adoption of SFAS  133;
however, it could impact earnings and other comprehensive income.

3.   FINANCIAL CONTRACTS
FSC has entered into financial contracts to manage certain  risks
resulting from fluctuations  in the price  of natural gas,  which
comprises a  significant  portion  of its  production  costs,  by
creating offsetting exposures.   FSC views  all of its  financial
contracts as  hedges  for its  future  purchases of  natural  gas
consumed in its operations.  Gains or losses on the contracts are
recognized with the  hedged transaction.   Also, gains or  losses
are recognized if the hedged transaction is no longer expected to
occur or if  deferral criteria  are not  met.   FSC monitors  its
credit risk on  an ongoing basis  and considers this  risk to  be
minimal because  its  contracts  are with  a  financially  strong
counterparty.

4.   SUBSEQUENT EVENT
On August 3, 1998, McMoRan Oil & Gas Co. (MOXY) and FSC announced
that they  had signed  a definitive  agreement to  combine  their
operations.  In the proposed transaction, a new holding  company,
McMoRan Exploration Co. (McMoRan), would issue approximately  6.1
million McMoRan common shares in exchange for all of FSC's common
shares and  approximately 8.6  million McMoRan  common shares  in
exchange for all of MOXY's common shares.  FSC shareholders would
receive 0.625  McMoRan  shares  for  each  common  share  of  FSC
outstanding and  MOXY  shareholders would  receive  0.20  McMoRan
shares for each  common share of  MOXY outstanding.   Immediately
following the transaction, McMoRan would have approximately  14.7
million  common   shares   outstanding  that   would   be   owned
approximately 58.5 percent by MOXY's existing common shareholders
and  approximately  41.5   percent  by   FSC's  existing   common
shareholders.  McMoRan's   Board  of   Directors  and   executive
management will include current members of the Board of Directors
and executive management of both MOXY  and FSC.  The  transaction
would be tax-free with respect to both MOXY and FSC  shareholders
and will  be  reported  on  the  basis  of  purchase  accounting,
reflecting MOXY as the acquiring entity.   The completion of  the
merger transaction  is  subject  to  approval  by  MOXY  and  FSC
shareholders and applicable regulatory approvals.

                     ----------------------
                             Remarks

The information furnished  herein should be  read in  conjunction
with FSC's  financial statements  contained  in its  1997  Annual
Report on Form 10-K.   The information furnished herein  reflects
all  adjustments  which  are,  in  the  opinion  of   management,
necessary for a fair statement of  the results for the periods.  
All such  adjustments are,  in the  opinion of  management, of  a
normal recurring nature. 

<PAGE>  7





            REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS


To The Board of Directors and Stockholders of
Freeport-McMoRan Sulphur Inc.:


    We have reviewed the accompanying condensed balance sheet  of
Freeport-McMoRan Sulphur Inc. (a Delaware corporation) as of June
30, 1998,  and the related statements of operations for the three
and six-month  periods ended  June 30,  1998  and 1997,  and  the
statements of cash flow for the six-month periods ended June  30,
1998  and  1997  for   Freeport-McMoRan  Sulphur  Inc.  and   its
predecessor.  These financial  statements are the  responsibility
of the Company's management.

    We  conducted  our  review   in  accordance  with   standards
established  by  the  American  Institute  of  Certified   Public
Accountants.  A review of interim financial information  consists
principally of applying analytical  procedures to financial  data
and making  inquiries of  persons responsible  for financial  and
accounting matters.  It  is substantially less  in scope than  an
audit conducted in  accordance with  generally accepted  auditing
standards, the objective of which is the expression of an opinion
regarding  the   financial  statements   taken  as   a  whole.   
Accordingly, we do not express such an opinion.

    Based on  our  review,  we are  not  aware  of  any  material
modifications that  should be  made to  the financial  statements
referred to above  for them to  be in  conformity with  generally
accepted accounting principles.

    We have  previously  audited, in  accordance  with  generally
accepted auditing  standards,  the  balance  sheet  of  Freeport-
McMoRan Sulphur Inc.  as of December  31, 1997,  and the  related
statements of operations, stockholders' equity and cash flow  for
the year then ended  (not presented herein),  and, in our  report
dated January 20,  1998, we expressed  an unqualified opinion  on
those financial statements. In  our opinion, the information  set
forth in the accompanying condensed balance sheet as of  December
31, 1997, is fairly stated, in all material respects, in relation
to the balance sheet from which it has been derived.


                                     ARTHUR ANDERSEN LLP


New Orleans, Louisiana
July 21, 1998 (except with
 respect to Note 4, as to 
 which the date is August
 3, 1998)

<PAGE>  8

                              


Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.

OVERVIEW
As discussed  in  Note  1, Freeport-McMoRan  Sulphur  Inc.  (FSC)
became an independent, publicly held  company as of December  22,
1997 and  prior to  that date  operated as  an integral  part  of
Phosphate Resource  Partners Limited  Partnership (PLP).    FSC's
1998 financial  results  reflect  the operating  results  of  the
assets previously owned by PLP and  the 25.0 percent interest  in
the Main Pass sulphur and oil joint venture (Main Pass)  acquired
from IMC Global Inc. (IGL).  FSC's 1997 financial results reflect
only the operating results of the assets previously owned by PLP.

     FSC's sulphur business consists of the sale of sulphur,  the
marketing of logistics services, and the operation of  a  sulphur 
mine and a logistics  system consisting of sulphur transportation
and terminaling assets. FSC's sulphur operations include the Main
Pass mine located offshore  Louisiana in the Gulf of Mexico, five
sulphur terminals located across  the Gulf Coast,  and marine and 
rail  transportation assets.  The oil operations consist of FSC's 
interest in the Main Pass operations, where crude oil is produced  
in conjunction  with FSC's sulphur mining operations.

     On  June  30,  1998,  FSC  announced  plans  to  permanently
discontinue sulphur  production  at its  Culberson  sulphur  mine
because sulphur prices had fallen to  a level at which it was  no
longer economically feasible to operate the  mine.  As a  result,
FSC recorded net charges totaling  $6.0 million ($3.9 million  to
net income or  $0.40 per share)  in the second  quarter of  1998,
including charges of $9.5 million ($6.2 million to net income) to
depreciation  and  amortization  expense for  a  writedown of the
Culberson mine  assets  and $0.6  million  ($0.4 million  to  net
income) to  production  costs for  other  closure-related  costs,
partially offset by a $4.1 million  benefit ($2.7 million to  net
income) to production  costs for a  related reduction in  pension
and postretirement benefit liabilities. Production at the mine is
expected to cease in August 1998.  FSC will continue to meet  its
customers' sulphur requirements in the long term from  production
at its Main Pass mine and from third party purchases of recovered  
sulphur  and,  in the short term, by liquefying solid inventories 
held at its Port Sulphur,  Louisiana terminal.

RESULTS OF OPERATIONS
Summary comparative results for the second-quarter and  six-month
periods   follow   (dollar    amounts   in   thousands,    except
realizations):
<TABLE>
<CAPTION>
                             Second Quarter        Six Months         
                            ----------------   --------------------
                            1998(a)  1997(b)    1998(a)    1997(b) 
                            -------  -------   ---------  ---------
<S>                         <C>      <C>       <C>        <C>
Revenues:
  Sulphur                   $50,887  $46,563   $ 101,680  $  91,422
  Oil                         5,785    7,792      11,982     16,328
                            -------  -------   ---------  ---------
    Total revenues          $56,672  $54,355   $ 113,662  $ 107,750
                            =======  =======   =========  =========
Operating income (loss):
  Sulphur                   $(6,463) $  (781)  $  (5,956) $  (2,965)
  Oil                         2,462    1,492       5,477      4,225
                            -------  -------   ---------  ---------
    Total operating 
      income (loss)         $(4,001) $   711   $    (479) $   1,260
                            =======  =======   =========  =========

Sulphur sales (long tons)   844,200  738,900   1,678,000  1,476,900
Sulphur average realized 
  price per long ton         $59.71   $61.23      $59.98     $60.29
Oil sales (barrels)         451,400  443,700     907,600    867,500
Oil average realized 
  price per barrel           $12.21   $17.52      $12.88     $18.78

</TABLE>
a. Includes net charges to sulphur operating  income totaling $6.0
   million for the Culberson mine shutdown.
b. Results for 1997 represent  the operating results of the assets
   previously  owned  by  PLP that  were  transferred  to  FSC  on
   December  22, 1997.   These  results do  not include  the  25.0
   percent interest in Main Pass previously owned by IGL prior  to
   December 22, 1997 when it was contributed to FSC.

     Sulphur operations reported operating losses of $6.5 million
in the second quarter of 1998  and $6.0 million in the  six-month
1998 period compared  with operating losses  of $0.8 million  for
the 1997 quarter and $2.9 million for the 1997 six-month  period.
The 1998 periods  include net charges  of $6.0  million for  the
Culberson shutdown discussed above.

<PAGE>  9

      Average sulphur realized prices for the  1998 periods  were
lower than  the 1997 periods, while  sulphur sales  volumes  rose
because of FSC's additional  25.0 percent interest acquired  from
IGL and an increase  in recovered sulphur purchases.   FSC has  a
long-term  supply  contract  with  IMC-Agrico  Company  (a  joint
venture partnership between IGL and PLP) which extends as long as
IMC-Agrico Company's operations  have  a requirement for sulphur.  
As a percentage of total FSC  sulphur sales, sales to  IMC-Agrico
Company totaled 73 percent in the 1998 periods and 63 percent  in
the 1997 periods. 

     Overall average sulphur unit production costs, excluding the
$3.5 million net benefit related to the Culberson  shutdown, were
slightly higher in  the 1998 periods  primarily because of  lower
production and higher  drilling costs  at Main  Pass.   Increased
drilling activity during  the first  half of  1998, coupled  with
increasing water levels, is expected to increase second-half 1998
production and improve unit costs for Main Pass sulphur operations.
Culberson operations are  expected to  have a  minimal impact  on
third-quarter 1998  net  income  as  the  facilities  shut  down.
Depreciation  and  amortization  expense  in  the  1998   periods
includes $9.5 million to  write  off  the  Culberson mine assets.  
Unit  depreciation  rates  were   significantly  lower  in   1998
following a third-quarter 1997  write-down of asset values  based
on an impairment assessment of sulphur assets resulting in a $4.2
million  decrease  in  second-quarter  1998  depreciation   costs
compared with second-quarter 1997 and an $8.0 million decrease in
the first six months of 1998 compared with the 1997 period. 

     In April  1998,  FSC  entered  into  contracts  to  purchase
450,000 million british  thermal units (mmbtu's)  of natural  gas
per month (approximately 75 percent  of FSC's expected Main  Pass
natural gas purchases)for $2.175 per mmbtu through December 1998.
Pursuant  to  the  terms  of  the contracts, the supplier has the 
option to put 450,000 mmbtu's per month to  FSC  at  a  price  of 
$2.175 per  mmbtu  during  1999.  As  of  June  30,  1998,  these
contracts had a fair value of approximately $0.9 million.  

     Main Pass operating income from oil operations totaled  $2.5
million in the second  quarter of 1998 and  $5.5 million for  the
six-month 1998 period  compared with $1.5  million in the  second
quarter of 1997 and  $4.2 million in  the six-month 1997  period.
Higher sales volumes in the 1998 periods reflect FSC's additional
25.0 percent interest  acquired from IGL,  partially offset by  a
natural production decline. Gross  oil production averaged  6,900
barrels per day in the second  quarter of 1998 and 9,700  barrels
per day in  the second quarter  of 1997. The  benefits of  higher
sales volumes were more than offset by an approximate 30  percent
decline  in  average  realized  prices  compared  with  the  1997
periods.  Quarterly oil sales volumes are expected to decline  as
the reserves continue to deplete over a period expected to extend
through the year 2002.  Revised  unit depreciation rates in  1998
resulted in  a  $2.6  million  decrease  in  second-quarter  1998
depreciation expense compared  with the 1997  quarter and a  $4.9
million decrease in six-month 1998 depreciation expense  compared
with the 1997 six-month period.  FSC's share of 1998 oil sales is
expected to approximate 1.7 million barrels,  compared  with  1.6
million barrels in 1997.

     The original oil and gas lease holder of the oil reserves at
Main Pass owns a  royalty equal to 25  percent of revenues  (less
transportation costs) from oil production, limited to 50  percent
of net profit, after 36 million barrels of oil have been produced
at Main Pass.  FSC exceeded 36 million barrels of cumulative  oil
production in June 1998 and, as a result, will now be required to 
pay royalties  to  the original lease  holder  at the rate  of 50 
percent  of net  profit from Main Pass oil production. 

   General  and administrative expenses were  higher in the  1998
periods compared with the 1997 periods primarily because of FSC's
increased interest  in Main  Pass  and certain  employee  benefit
costs.

OUTLOOK
In response to a weak sulphur market, FSC curtailed production at 
its Culberson mine in early 1998 and announced on  June 30,  1998
that it planned to permanently cease operations at the mine.  The 
closure of the Culberson mine is  expected  to  improve near-term
sulphur market fundamentals, and FSC is seeking  an  increase  in 
third-quarter 1998 sulphur contract prices compared  with  prices 
realized in the first half of 1998, although  the  major  sulphur
consumers are strongly resisting any price increase. Negotiations
are currently ongoing and no assurance can  given  that  a  price 
increase will be realized.

CAPITAL RESOURCES AND LIQUIDITY
Net cash provided by  operating activities totaled $23.2  million
for the first six months of 1998, compared with $16.3 million for
the first six months of 1997.  A reduction in sulphur inventories
was the primary reason for higher net cash provided by  operating
activities in the 1998 period compared with the 1997 period.

     Capital expenditures, which primarily relate to  maintaining
current levels of production, totaled  $2.3 million for the  six-
month 1998 period and $2.7 million for the six-month 1997 period.
Capital  expenditures   for   1998   are   expected   to   total
approximately $6.0 million, slightly higher than for 1997 because
of the  addition  of  IGL's  former  25.0  percent  interest  and 
additional drilling activities  scheduled  in  1998  to  maintain
required levels of  water treatment capacity  for sulphur  mining
operations at Main Pass. 

<PAGE> 10

     In May  1998  FSC's Board  of  Directors expanded  the  open
market share purchase program from a total of  1.0 million shares
of its common stock to up to  1.6 million shares.  The timing  of
the purchases is dependent upon many factors, including the price
of FSC's common  stock, FSC's operating  results, cash flows  and
financial position, and general  economic and market  conditions.
FSC purchased 125,700 shares  in the second  quarter of 1998  for
$1.8 million (an average of $14.09 per share).  Through June  30,
1998, FSC  has  purchased 646,100  shares  for $8.8  million  (an
average of $13.69 per share) under its share purchase program.

     Based on current projections,  management believes that  FSC
will generate sufficient  cash flow from  operations to fund  its
ongoing  working  capital  requirements,  reclamation  costs  and
projected capital  expenditures  for  the  foreseeable  future.  
Additionally, in  December 1997  FSC established  a $100  million
revolving credit facility  to further enhance  its liquidity  and
financial flexibility.   No amounts were  outstanding under  this
facility as of July 21, 1998.  As of June 30, 1998, FSC held cash
balances totaling  $33.8  million  which are  available  to  fund
working  capital  requirements,   reclamation  costs,   projected
capital expenditures and other growth opportunities which FSC may
pursue in the future.

     On August 3, 1998, FSC and McMoRan  Oil  &  Gas  Co.  (MOXY) 
announced they had signed a definitive agreement to combine their 
operations (see Note 4).   FSC's  merger with MOXY is expected to 
be completed during  the  fourth  quarter  of  1998,  subject  to 
approval by shareholders of FSC and MOXY and applicable regulatory 
agencies.

CAUTIONARY STATEMENT
Management's discussion and analysis  of financial condition  and
results  of  operations   contains  forward-looking   statements,
including  without   limitation,  FSC's   reserve   expectations,
operating  costs,  demand  for   sulphur,  the  availability   of
financing, the  ability to  satisfy future  cash obligations  and
environmental costs.   Important  factors that  may cause  future
results to differ from these projections include the reliance  on
IMC-Agrico Company as a continuing customer, the seasonality  and
volatility of  sulphur  markets,  competition  and  environmental
issues as described in more detail under the heading  "Cautionary
Statements" in FSC's Form 10-K   for the year ended December  31,
1997.

                      --------------------
The results of operations reported  and summarized above are  not
necessarily indicative of future operating results.

<PAGE> 11


PART II.   OTHER INFORMATION


Item 4.  Submission of Matters to a Vote of Security Holders.


     (a)  The Annual Meeting of Stockholders of  Freeport-McMoRan
Sulphur Inc.  (FSC)  was  held  on May    12,  1998  (the  Annual
Meeting).   Proxies were  solicited  pursuant to  Regulation  14A
under the Securities Exchange Act of 1934, as amended.

     (b)  At the Annual  Meeting, J.  Terrell Brown  and Rene  L.
Latiolais were elected to serve until the 2001 annual meeting  of
stockholders.  In addition to the directors elected at the Annual
Meeting, the terms of the following directors continued after the
Annual Meeting:  Richard C. Adkerson, Thomas D. Clark, Jr., James
R. Moffett, B.M. Rankin, Jr. and Robert M. Wohleber.

     (c)  At the  Annual  Meeting,  holders of  shares  of  FSC's
Common Stock elected two directors with the number of votes  cast
for or withheld from each nominee as follows:

Name                  For                 Withheld
-----------------     ---------           --------
J. Terrell Brown      8,963,452           143,211
Rene L. Latiolais     8,972,767           133,896

With respect to  the election of  directors, there were  no abstentions  or
broker non-votes.

     At the Annual  Meeting, the stockholders  also voted on  and
approved a proposal to ratify the appointment of Arthur  Andersen
LLP to act  as the independent public  accountants  to  audit the  
financial statements of FSC and its subsidiaries for the year 1998. 
Holders of 9,014,582 shares voted for,  holders of  59,035 shares  
voted against and holders of 33,046 shares  abstained from voting  
on, such proposal. There were no broker non-votes with respect to
such proposal.

     At the Annual  Meeting, the stockholders  also voted on  and
approved FSC's  1997 Stock  Option Plan.   Holders  of  8,216,237
shares voted for,  holders of  768,508 shares  voted against  and
holders  of  121,918  shares  abstained  from  voting  on,   such
proposal.  There were  no broker non-votes  with respect to  such
proposal.

Item 6.   Exhibits and Reports on Form 8-K.

          (a)  The exhibits  to this  report  are listed  in  the
               Exhibit Index beginning on Page E-1 hereof.
          (b)  During the quarter for which this report is filed,
               the registrant filed one Current Report on Form 8-
               K dated June 30, 1998 reporting information  under
               Item 5.

<PAGE> 12






                            SIGNATURE


    Pursuant to the requirements  of the Securities Exchange  Act
of 1934, the registrant has duly caused this report to be  signed
on its behalf by the undersigned hereunto duly authorized.


                         FREEPORT-McMoRan SULPHUR INC.


                         By:/s/C. Donald Whitmire, Jr.
                            ------------------------------
                             C. Donald Whitmire, Jr.
                             Vice President and
                             Controller-Financial Reporting
                             (authorized signatory and
                             Principal Accounting Officer)

Date:  August 11, 1998

<PAGE> 13







                         Freeport-McMoRan Sulphur Inc.
                               EXHIBIT INDEX



Number                       Description
------     ------------------------------------------------------
  2.1      Contribution and Distribution Agreement by and  among
           Freeport-McMoRan Inc. (the Company), Freeport-McMoRan Inc.
           (FTX)  and  Freeport-McMoRan  Resource  Partners,  Limited
           Partnership (FRP), dated as of  August 26, 1997(1)

  2.2      Assignment and Assumption Agreement by and between IMC
           Global Inc. (IGL) and FRP dated as of December 22, 1997(2)

  3.1      Certificate of Incorporation of the Company(1)

  3.2      By-laws of the Company(1)

  4.1      Form of the Company's Common Stock certificate(1)

  4.2      Stockholder Protection  Rights  Agreement  between
           Freeport-McMoRan Sulphur Inc. and Mellon Securities Trust
           Company, as Rights Agent(3)

  10.1     Employee Benefits Agreement by and between FTX and the
           Company(2)

  10.2     Asset Sale Agreement for  Main Pass Block 299  between
           FRP and Chevron USA, Inc. dated as of May 2, 1990(1)

  10.3     Main Pass 299 Sulphur and Salt Lease, effective May  1,
           1988(1)

  10.4     Joint  Operating  Agreement by  and  between  FRP,  IMC-
           Fertilizer, Inc. and  Felmont Oil      Corporation,  dated
           June 5, 1990(1)

  10.5     Joint  Operating  Agreement by  and  between  FRP,  IMC-
           Fertilizer, Inc. and Felmont  Oil  Corporation, dated  May
           1, 1988(1)

  10.6     Agreement  to Coordinate  Operating Agreements  by  and
           between FRP, IMC-Fertilizer and   Felmont Oil Corporation,
           dated May 1, 1988(1)

  10.7     Asset Purchase  Agreement  between FRP  and  Pennzoil
           Company dated as of October  22, 1994 (the Asset  Purchase
           Agreement)(1)

  10.8     Amendment No.  1 to the Asset Purchase Agreement  dated
           as of January 3, 1995(1)

  10.9     Agreement  for Sulphur Supply,  as amended,  dated as  of
           July 1,  1993  among  FRP,  IMC  Fertilizerand  IMC-Agrico
           Company (the Sulphur Supply Agreement)(1)(4)

  10.10    Side  letter  with IGL  regarding  the  Sulphur  Supply
           Agreement(1)
                         
  10.11    Processing and Marketing Agreement between the  Freeport
           Sulphur Company (a division  of     FRP) and Felmont  Oil
           Corporation  dated   June   19,   1990   (the   Processing
           Agreement)(1)

  10.12    Amendment Number 1 to the Processing Agreement(1)

  10.13    Amendment Number 2 to the Processing Agreement(1)

  10.14    Services Agreement dated as of December 23, 1997 between
           the Company and FM Services Company (FMS)(2)

<PAGE> E-1

  10.15    Credit Agreement dated as of December 12, 1997 among  the
           Company, as  borrower,  the financial  institutions  party
           thereto, the Chase Manhattan Bank, as administrative agent
           and documentary agent, and Hibernia National Bank, as  co-
           agent(2)

  Executive Compensation Plans and Arrangements
  (Exhibits 10.16 through 10.19)

  10.16    1997 Stock Option Plan for Non-Employee Directors(1)

  10.17    Company Adjusted Stock Award Plan(1)

  10.18    Freeport Sulphur 1997 Stock Option Plan(1)

  10.19    Letter Agreement dated December 22, 1997 between FMS and
           Rene L. Latiolais(2)

  15.1     Letter dated  July 21,  1998 from  Arthur Andersen  LLP
           regarding unaudited interim  financial                       
           statements.

  27.1     Financial Data Schedule

----------------------
(1) Incorporated by reference from the Company's Registration
    Statement on Form S-1 (Registration No. 333-40375) filed with
    the Securities and Exchange Commission on November 17, 1997.
(2) Incorporated by reference from the Company's Annual Report on
    Form 10-K for the year ended December 31, 1997.
(3) Incorporated by reference from the Company's Current Report
    on Form 8-K dated December 16, 1997.
(4) Portions of this Exhibit have been omitted pursuant to a
    confidentiality request filed with the Securities and Exchange
    Commission in connection with the filing of the Registration
    Statement on Form S-1.

<PAGE> E-2