EXHIBIT 13.1



                      SELECTED FINANCIAL AND OPERATING DATA

                       1995        1994         1993      1992        1991
                    ----------  ----------  ---------- ----------  ----------
                     (Financial Data In Millions, Except Per Share Amounts)
FINANCIAL DATA a
Years Ended December 31:
Revenues              $995.9      $770.1      $684.7      $940.6     $1,111.7
Operating income
 (loss)                182.9        91.9      (243.4)      (24.6)        45.7
Net income (loss) from:
  Operations           $25.3b     $(35.1)b    $(77.0)     $(27.3)       $36.3
  Discontinued
   operations          340.4       107.7        35.4       215.1         50.9
  Nonrecurring
   gains/
   (losses),
   net c                67.1           -       (48.6)          -          5.0
  Changes in accounting
   principle and
   extraordinary
   loss                    -        (9.1)      (13.6)          -        (51.2)
  Preferred
   dividends           (42.3)d     (22.1)      (22.4)      (18.7)         (.9)
                       -----       -----      ------      ------       ------
Net income (loss)
 applicable to
 common stock         $390.5      $ 41.4     $(126.2)     $169.1       $40. 1
                      ======     =======    ========     =======       ======


Net income (loss) per primary share from:

  Operations            $.97b     $(1.51)b    $(3.26)     $(1.13)       $1.56
  Discontinued
   operations          13.05        4.64        1.50        8.93         2.19
  Nonrecurring
   gains/(losses),
   net c                2.57           -       (2.06)          -          .21
  Changes in accounting
   principle and
   extraordinary
   loss                    -        (.39)       (.58)          -        (2.20)
  Preferred
   dividends           (1.62)d      (.95)       (.95)       (.78)        (.04)
                       -----        ----        ----        ----         ----
Net income
 (loss)
 applicable to
 common stock         $14.97       $1.79      $(5.35)      $7.02        $1.72
                      ======      ======      ======      ======        =====


Average common
 shares
 outstanding            26.1        23.2        23.6        24.1         23.3

Dividends per common share:
  Cash                  $.18      $1.875       $7.50       $7.50        $7.50 
  Property e          108.41       7.768           -        1.05            -
                     -------       -----      ------       -----       ------
                     $108.59      $9.643       $7.50       $8.55        $7.50 
                    ========     =======      ======      ======       ======
At December 31:
Property, plant
 and equipment,
 net                  $999.8      $964.5    $1,102.8    $1,271.2     $1,647.5
Long-term debt,
 less current
 portion               359.5     1,122.1     1,082.8       785.5      1,308.0
Minority interest      196.0       217.8       239.8       418.6        206.5
Stockholders'
 equity                191.9      (230.5)         .6       346.0        388.3 
Total assets         1,320.5     1,649.4     1,888.6     2,157.4      2,587.5

OPERATING
Phosphate fertilizers -primarily  diammonium phosphate (DAP)
  Sales
   (short tons) f  3,427,700   3,193,400   3,346,600   3,984,000    4,027,000
  Average
   realized
   price g
    All phosphate
     fertilizers     $169.07     $144.13     $110.03     $127.27      $147.10
    DAP               175.11      149.32      113.09      132.11       154.07
Phosphate rock
  Sales
   (short tons)f   4,470,400   4,373,400   3,840,300   3,440,500    2,247,000
  Average
   realized
   price g            $22.53      $21.38      $22.02      $26.96       $28.21
Sulphur
  Sales
   (long tons) h   3,049,700   2,087,800   1,973,200   2,346,100    2,528,200
Oil
  Sales (barrels)  2,217,600   2,533,700   3,443,000   4,884,000      350,800
  Average
   realized price     $15.82      $13.74      $14.43      $15.91       $13.34



                      FREEPORT-McMoRan INC.

              SELECTED FINANCIAL AND OPERATING DATA

                              NOTES

a.   Restated to reflect copper/gold business activities as
discontinued operations.  Also reflects the one-for-six reverse
stock split approved in October 1995.

b.   Includes minority interest charges totaling $14.4 million
($0.55 per share) in 1995 and $17.2 million ($0.74 per share) in
1994 because FTX was not paid its proportionate share of FRP
distributions.  Also includes stock option charges totaling $5
million ($0.19 per share) in 1995 caused by the rise in FTX's
common stock price during the year.

c.   In 1995 includes gains primarily related to the settlement
of certain insurance claims ($5.3 million or $0.20 per share), a
tax benefit attributable to the reversal of certain tax accruals
no longer required ($62.8 million or $2.41 per share) and a
charge for an early retirement program ($1 million or $0.04 per
share); in 1993 includes the loss on restructuring activities and
valuation and sale of assets; and in 1991 includes an insurance
settlement gain ($7.3 million or $0.31 per share), net of a loss
on the valuation of assets ($2.3 million or $0.10 per share).

d.   Includes a $33.5 million charge ($1.29 per share) resulting
from the $4.375 Convertible Exchangeable Preferred Stock exchange
offer.

e.   Reflects the fair market value of property distributions
(FCX in 1995 and 1994, MOXY in 1994 and FMPO in 1992).

f.   Reflects FRP's 43.6 percent, 45.1 percent and 46.5 percent
share of IMC-Agrico assets for the years ended June 30, 1996 -
1994, respectively, while FRP received 53.1 percent, 55 percent
and 58.6 percent, respectively, of the cash flow generated during
such periods.

g.   Represents average realization f.o.b. plant/mine.

h.   Includes internal consumption totaling 754,400 tons, 739,900
tons, 1,138,800 tons, 1,654,300 tons and 1,612,400 tons for
1995-1991, respectively.

                      FREEPORT-McMoRan Inc.

              MANAGEMENT'S DISCUSSION AND ANALYSIS

     In July 1995, Freeport-McMoRan Inc. (FTX) declared a special
tax-free dividend of the Class B common stock of Freeport-McMoRan
Copper & Gold Inc. (FCX) to FTX common stockholders (Note 3),
completing a restructuring plan to separate its copper/gold and
agricultural minerals businesses into two independent financial
and operating entities.  Prior to the distribution, FTX completed
certain recapitalization activities, including the sale of 23.9
million FCX Class A common shares for net proceeds of $497.2
million, the conversion/redemption of FTX's preferred stock and
publicly held debt securities (Notes 4 and 7) and the repayment
of FTX's parent company bank borrowings.  FTX also obtained a new
credit facility following the FCX distribution which provides
greater financial flexibility and reduced financing costs.

     FTX's ongoing business operations now essentially consist of
its 51.5 percent ownership in Freeport-McMoRan Resource Partners,
Limited Partnership (FRP).  FRP has benefited from the favorable
pricing trends for its phosphate fertilizer products which began
in mid-1993 and have continued through 1995, as evidenced by its
dramatically improved operating results and significantly higher
operating cash flow.  Phosphate fertilizer market fundamentals
continue to remain positive with the anticipation of increased
global demand coupled with a currently tight supply/demand
situation.  As a result, Standard & Poor's raised FRP's senior
debt rating to an investment grade of BBB-, serving to reduce
financing costs.

     During 1995, FRP built on its already strong asset base by
participating in two separate acquisitions (Note 5);  the
purchase of Pennzoil Co.'s Culberson sulphur mine and related
assets, and the IMC-Agrico Company (IMC-Agrico) purchase of the
animal feed ingredients business of Mallinckrodt Group Inc.  Both
acquisitions served to strengthen FRP's strategic market
position.  The Pennzoil transaction added both sulphur reserves
and a significant sulphur transportation system.  The
Mallinckrodt animal feed ingredients business is one of the
world's largest producers of phosphate-based animal feed
ingredients with an annual capacity in excess of 700,000 tons.
This business is IMC-Agrico's largest phosphoric acid customer,
consuming nearly 300,000 tons per year or about seven percent of
IMC-Agrico's capacity.  FRP continues to evaluate additional
growth opportunities.

RESULTS OF OPERATIONS

Because FTX no longer owns any interest in FCX, FTX's financial
results were restated to reflect FCX's copper/gold business as
discontinued operations.  Additionally, in October 1995, FTX
effected a one-for-six reverse split of its common stock.
Accordingly, all common and per share amounts have been restated.

                                      1995          1994          1993
                                   ----------    ----------    ----------
                                                (In Millions)
Revenues                           $    995.9    $    770.1    $    684.7
Operating income (loss)                 182.9          91.9        (243.4)
Net income (loss) from:
  Operations                       $     25.3a   $    (35.1)a  $    (77.0)
  Discontinued operations (Note 3)      340.4         107.7          35.4
  Nonrecurring gains/
    (losses), net                        67.1b            -         (48.6)c
  Changes in accounting
    principle and extraordinary
    loss                                    -          (9.1)        (13.6)
  Preferred dividends                   (42.3)d       (22.1)        (22.4)
                                   ----------    ----------    ----------
Net income (loss)
  applicable to  common stock      $    390.5    $     41.4    $   (126.2)
                                   ==========    ==========    ==========

a.   Includes minority interest charges totaling $14.4 million in
1995 and $17.2 million in 1994 because FTX was not paid its
proportionate share of FRP distributions, and stock option
charges of $5 million in 1995.

b.   Consists of a $5.3 million gain (included in other income)
primarily related to the settlement of certain insurance claims,
a $62.8 million tax benefit and a $1 million charge for an early
retirement program.

c.   Consists of restructuring, asset sales/recoverability and
other related charges.

d.   Includes a $33.5 million charge resulting from the $4.375
Convertible Exchangeable Preferred Stock exchange offer (Note 7).

1995 Compared With 1994.  FTX benefited from the significant
strengthening in the phosphate fertilizer markets throughout 1995
and the expansion of its sulphur production capacity (see
Selected Financial and Operating Data), resulting in higher
revenues and improved operating results.     Depreciation and
amortization for 1995 decreased $9.6 million from the 1994
amount, primarily caused by a $10.5 million decline relating to
FRP's disproportionate interest in the IMC-Agrico joint venture
cash distributions, partially offset by a $2.7 million increase
resulting from the acquired sulphur assets.

     General and administrative expenses for 1995 increased by
$19.6 million, primarily because of $15.5 million in stock option
charges resulting from the rise in FTX's common stock price
during the year (Note 7) and $3 million for an early retirement
program.

     Interest expense decreased from 1994 as a result of the
significant reduction in average debt levels brought about by
FTX's recapitalization efforts.    Income taxes for 1995 include
a $62.8 million benefit attributable to the reversal of certain
tax accruals no longer required because of the resolution of
certain federal and state tax issues and the realization of tax
credits not previously recognized (Note 6).       Minority
interest's share of net income for 1995 rose reflecting the
increased level of earnings at FRP and includes a $23 million
charge ($26.5 million in 1994) because FTX was not paid its
proportionate share of FRP distributions (Note 2).

Agricultural Minerals Operations - FTX's agricultural minerals
operations, which include FRP's fertilizer and phosphate rock
operations (conducted through IMC-Agrico) and its sulphur
business, reported 1995 operating income of $205.9 million on
revenues of $960 million compared with operating income of $123.8
million on revenues of $730.4 million in 1994.  Significant items
impacting operating income are as follows (in millions):

Agricultural minerals operating income -1994        $    123.8
                                                    ----------
Increases (decreases):                                         
  Sales volumes                                           81.3
  Realizations                                           147.7
  Other                                                    0.6
                                                    ----------
    Revenue variance                                     229.6
  Cost of sales                                         (135.4)a
  General and administrative                             (12.1)b
                                                    ----------
                                                          82.1
                                                    ----------
Agricultural minerals operating income -1995        $    205.9
                                                    ==========

a.   Includes a reduction to depreciation and amortization of
$26.3 million and $15.8 million for 1995 and 1994, respectively,
caused by FRP's disproportionate interest in IMC-Agrico cash
distributions.

b.   Includes $10.3 million of the stock option charge discussed
above.

     FRP's 1995 phosphate fertilizer sales volumes were 7 percent
higher than those in 1994, with IMC-Agrico experiencing continued
excellent export demand and strong domestic sales for diammonium
phosphate (DAP), its principal fertilizer product.  The increased
demand resulted in IMC-Agrico phosphate fertilizer facilities
operating near capacity for the majority of 1995.  Despite recent
industrywide capacity utilization above 100 percent, domestic
phosphate fertilizer producer inventories remain below normal.
This tight supply/demand situation is reflected in improved
phosphate fertilizer realizations, with FRP's average DAP
realization increasing 17 percent from 1994.  FRP's 1995 DAP
realizations included large forward sales to China at prices
which were ultimately below market prices at the time of
shipment.  FRP's phosphate fertilizer unit production costs were
increased from 1994, reflecting higher raw material costs for
ammonia and phosphate rock.

     Fertilizer prices continued to rise during the fourth
quarter of 1995 and are expected to remain firm for the near
term, as the increased global demand for phosphate fertilizers
comes at a time when essentially no operable idle capacity
exists.  Furthermore, worldwide grain stocks are projected to be
at their lowest-ever levels in the upcoming fertilizer season,
strengthening grain prices and improving the outlook for this
spring's fertilizer use.  As a result, strong domestic demand is
anticipated to continue into the spring with an expected 13
percent increase in planted corn acreage.  Additionally, in late
1995 IMC-Agrico reached an agreement with China providing for
significant shipments of DAP throughout 1996 at market-related
prices at the time of shipment.

     FRP's 1995 phosphate rock sales volumes were slightly higher
than in 1994.  Increased demand from phosphate fertilizer
producers and the addition of a long-term supply contract in
October 1994 were offset by the expiration of a contract in
October 1995 providing annual sales of 1.5 million tons net to
FRP.  Because of the low margin associated with sales under the
expired contract, the impact to FRP's earnings is not
significant.

     FRP's increased sulphur production capacity resulting from
the Culberson mine purchase, combined with continued strong
demand from the domestic phosphate fertilizer industry, resulted
in a 46 percent increase in sales volumes.  FRP also benefited
from the strengthening in Tampa, Florida sulphur prices during
1995.  To the extent U.S. phosphate fertilizer production remains
strong, improved sulphur demand is expected to continue, although
the availability of Canadian sulphur limits the potential for
significant price increases.  Main Pass unit production costs for
1995 were virtually unchanged from 1994.

Oil and Gas Operations - In mid-1994, FTX distributed
substantially all its non-Main Pass oil and gas exploration
activities to its common stockholders as part of the McMoRan Oil
& Gas Co. (MOXY) distribution (Note 5).  Since then, FTX's only
significant oil and gas operation is FRP's production of oil at
Main Pass, as follows:

                                      1995           1994
                                    ---------     ---------
Sales (barrels)                     2,217,600     2,533,700
Averaged realized price                $15.82        $13.74
Operating income (in millions)           $1.9          $2.8

     In 1995, Main Pass oil operating income was impacted by $1.8
million for the previously discussed stock option charge.  Net
production for 1996 is estimated to approximate 1995 levels, as
drilling activities are expected to generate production
sufficient to offset declining reservoir production.

1994 Compared With 1993.  FTX's 1994 results primarily reflect
the improvement in the phosphate fertilizer market during the
year and the benefits from the formation of IMC-Agrico and other
restructuring activities undertaken in 1993, discussed below.
Partially offsetting these positive factors were increased raw
material prices for ammonia and reduced oil sales volumes.

     During 1993, FTX undertook a restructuring of its
administrative organization.  This restructuring represented a
major step by FTX to lower the costs of operating and
administering its businesses in response to weak market prices of
commodities produced by its operating units.  As part of this
restructuring, FTX significantly reduced the number of employees
engaged in administrative functions, changed its management
information systems environment to achieve efficiencies, reduced
its needs for office space, outsourced a number of administrative
functions and took other actions to lower costs.  The
restructuring process resulted in FTX incurring certain one-time
costs (Note 10).

     Depreciation and amortization during 1994 declined by $67.3
million compared with 1993, primarily consisting of a $26.6
million decrease relating to the disproportionate interest in
IMC-Agrico cash distributions, a $15.3 million reduction from
Main Pass oil operations caused by the decline in sales volumes
between periods and the $18.7 million in restructuring charges
recorded in 1993.  These decreases were partially offset by a $6
million increase in sulphur depreciation because of higher Main
Pass sulphur production.

     General and administrative expenses reflect the benefits
from the formation of IMC-Agrico and the other 1993 restructuring
activities.  The 1993 amount includes $9.5 million in
restructuring related charges.  Interest expense in 1994
increased as a result of the Main Pass sulphur project becoming
operational for accounting purposes in July 1993 (previously,
related interest costs totaling $11.1 million in 1993 were
capitalized) and rising interest rates.      See Note 6 to the
financial statements for information on the provision for income
taxes.  Minority interest's share of net income reflected a $26.5
million charge in 1994 because FTX was not paid its proportionate
share of distributions from FRP.

     FTX's 1994 earnings include a $9.1 million charge from the
early extinguishment of debt (Note 4).  Earnings for 1993 include
a $13.6 million charge for the cumulative effect of changes in
accounting principle for periodic scheduled maintenance costs,
deferred charges and costs of management information systems
(Note 1).  These changes were adopted to improve the measurement
of operating results by recognizing cash expenditures as expense
when incurred unless they directly relate to long-lived
additions.  These changes did not have a material impact on
operating income.

Agricultural Minerals Operations - FTX's agricultural minerals
operations reported 1994 operating income of $123.8 million on
revenues of $730.4 million compared with an operating loss of
$105 million on revenues of $619.3 million in 1993.  Significant
items impacting operating income are as follows (in millions):

Agricultural minerals operating loss -1993          $   (105.0)
                                                    ----------
Increases (decreases):
  Sales volumes                                           15.8 
  Realizations                                           102.7
  Other                                                   (7.4)
                                                    ----------
    Revenue variance                                     111.1
  Cost of sales                                           46.8a,b
  1993 provision for restructuring charges                33.9 
  1993 loss on valuation and sale of assets, net          14.8 
  General and administrative and other                    22.2a
                                                    ----------
                                                         228.8 
                                                    ----------
Agricultural minerals operating income -1994        $    123.8 
                                                    ==========

a.   1993 included $17.5 million in cost of sales and $7.3
million in general and administrative expenses resulting from the
restructuring project.

b.   1994 included a $15.8 million reduction and 1993 included a
$10.8 million increase to depreciation and amortization caused by
FRP's disproportionate interest in IMC-Agrico cash distributions.

     FRP's 1994 phosphate fertilizer sales volumes were slightly
below 1993 levels.  Producer inventories remained at prior year
levels despite a rise in industrywide production.  As a result,
phosphate fertilizer prices rose sharply from the near 20-year
lows experienced during 1993, with FRP's average DAP realization
increasing 32 percent.  Unit production costs benefited from
efficiencies at IMC-Agrico, somewhat offset by higher raw
material prices for ammonia.

     FRP's phosphate rock sales volumes rose 14 percent during
1994, reflecting increased demand and the advent of a supply
contract in October 1994 adding annual sales of approximately 0.8
million tons net to FRP through 2004.

     Main Pass sulphur production increased during 1994, reducing
unit production costs below 1993 levels.  With increased Main
Pass production, FRP ceased operating the marginally profitable
Caminada mine in January 1994.  Average sulphur realizations for
1994 were lower, reflecting the decline in prices which occurred
throughout 1993.  However, improved phosphate fertilizer
operating rates, coupled with reduced imports, resulted in
sulphur price increases during the second half of 1994.

Oil and Gas Operations - FTX's non-Main Pass oil and gas
operations generated a 1994 loss of $11.9 million, including
exploration expense of $5.2 million.  Earnings for 1993 totaled
$20 million as FTX recognized a $69.1 million gain from the $95.3
million cash sale of the undeveloped reserves discovered at East
Cameron Blocks 331/332 offshore Louisiana, partially offset by
exploration expense of $22.3 million and $24.4 million of charges
resulting from the restructuring project.

     Main Pass oil operations achieved the following:

                                             1994           1993
                                            ---------     ---------
Sales (barrels)                             2,533,700     3,443,000 
Average realized price                         $13.74        $14.43 
Operating income (in millions)                   $2.8        $(61.5)

     Main Pass oil production was limited during 1994 because of
a redevelopment program which involved drilling two additional
wells and recompleting three existing wells.  Oil realizations
recovered somewhat from the significant decline which occurred in
late 1993.  The 1993 price decline resulted in a $60 million
charge to FRP's earnings for the excess net book value of its oil
assets over the estimated future net cash flow to be received.

CAPITAL RESOURCES AND LIQUIDITY

FTX's recapitalization and restructuring activities significantly
reduced its parent company obligations.  However, FTX still has
certain cash requirements related to its past business
activities, including oil and gas payments and employee benefit
liabilities.  It potentially could also have future cash
requirements relating to its FM Properties Inc. debt guarantee
(Note 9).  FTX anticipates that its cash distributions from FRP
and amounts available to it under the new credit facility will be
sufficient to meet these obligations.  The new credit facility
provides $400 million of credit available to FTX/FRP ($183
million of additional borrowings available at February 6, 1996),
$75 million of which is available to FTX as the holding company.
In August 1995, the FTX Board of Directors established a new
dividend policy for FTX common stock, declaring a regular
quarterly cash dividend of 9 cents per common share.  The new
dividend policy allows FTX to use additional available funds to
purchase FTX stock, purchase FRP units and/or invest in new
growth opportunities.  The timing of FTX stock and FRP unit
purchases is dependent upon many factors, including their price,
FTX's financial condition and general economic and market
factors.

     FTX is primarily a holding company and its main source of
cash flow is distributions from its ownership in FRP.  Publicly
owned FRP units have cumulative rights to receive quarterly
distributions of 60 cents per unit through the distribution for
the quarter ending December 31, 1996 before any distributions may
be made to FTX.  On January 19, 1996, FRP declared a distribution
of 62.5 cents per publicly held unit ($31.3 million) and 67.35
cents per FTX-owned unit ($35.9 million), payable February 15,
1996, reducing the unpaid distributions to FTX by $2.6 million.
The remaining $379.9 million of unpaid distributions to FTX are
recoverable from one-half of any excess of future quarterly FRP
distributions over 60 cents per unit for all units.  FRP's future
distributions will be dependent on the distributions received
from IMC-Agrico and cash flow from FRP's sulphur and oil
operations.  Distributable cash in January 1996 included $64.3
million from IMC-Agrico.  Future distributions from IMC-Agrico
will depend primarily on the phosphate fertilizer market,
discussed earlier, and FRP's share of IMC-Agrico cash
distributions (Current Interest).  FRP's Current Interest is
presently 53.1 percent through June 30, 1996, changing to 53.5
percent for the twelve months ended June 30, 1997 and declining
to 40.6 percent thereafter.  However, in January 1996 FRP and its
joint venture partner in IMC-Agrico agreed to an increase in
FRP's Current Interest of 0.85 percent and a modification of
certain product pricing between IMC-Agrico and the joint venture
partner.  This agreement is subject to the joint venture partner
consummating a merger.

     Net cash provided by (used in) continuing operations was
$241 million in 1995 (excludes $138.6 million from discontinued
operations), $170.6 million in 1994 (excludes $336.2 million from
discontinued operations) and $(41.2) million in 1993 (excludes
$158.5 million from discontinued operations).  These increases
primarily reflect the improvement in FRP's agricultural minerals
earnings.  Also benefiting the 1995 and 1994 periods were working
capital reductions achieved by IMC-Agrico and the sale of
receivables (Note 1).

     Net cash used in investing activities totaled $368.9 million
for 1995, $694.2 million for 1994 and $429 million for 1993,
which included significant expenditures by its discontinued
operations.  Based on current estimates, capital expenditures
related to the FRP operations will approximate $45 million for
1996.  Capital expenditures for the non-FRP continuing operations
have declined significantly following the MOXY distribution.
Investing cash flows for 1995 also included the Mallinckrodt
acquisition.  Sales of various non-core assets generated proceeds
of $26.9 million in 1995, $112 million in 1994 and $145.2 million
in 1993.

     Net cash provided by (used in) financing activities totaled
$(14) million for 1995, $207.2 million for 1994 and $(30) million
for 1993.  Net debt repayments (including debt offerings,
redemptions and infrastructure sales) totaled $153.7 million in
1995 compared with net borrowings of $398.3 million in 1994 and a
net repayment of $160 million in 1993.  During 1995, FTX sold
23.9 million FCX Class A common shares for net proceeds of $497.2
million, which was used to retire all parent company debt.
During 1994 and 1993, FCX sold preferred stock to finance its
significant expansion-related capital expenditures.
Distributions to FCX minority interests declined in 1995
reflecting the mid-year distribution of FCX.  During 1995, FTX's
equity purchases totaled $160.8 million, acquiring 1 million of
its common shares for an aggregate $44.8 million, 5.3 million FCX
shares for an aggregate $111.7 million and 0.3 million FRP units
for an aggregate $4.3 million.  During 1994, FTX's equity
purchases primarily consisted of 0.6 million of its common shares
for $67.7 million and 2.2 million FCX Class A common shares for
$47.6 million.  During 1993, 0.2 million FTX common shares and
0.8 million FCX Class A common shares were purchased for an
aggregate $38.7 million.  The reduction in cash dividends results
from changes in FTX's dividend policy (Note 7) and the conversion
of FTX's preferred stock to common stock in mid-1995.

ENVIRONMENTAL

FTX has a history of commitment to environmental responsibility.
Since the 1940s, long before public attention focused on the
importance of maintaining environmental quality, FTX has
conducted preoperational, bioassay, marine ecological and other
environmental surveys to ensure the environmental compatibility
of its operations.  FTX's Environmental Policy commits its
operations to compliance with local, state and federal laws and
regulations, and prescribes the use of periodic environmental
audits of all facilities to evaluate compliance status and
communicate that information to management.  FTX has access to
environmental specialists who have developed and implemented
corporatewide environmental programs.  FTX's operating units
continue to study methods to reduce discharges and emissions.

     Federal legislation (sometimes referred to as "Superfund")
requires payments for cleanup of certain waste sites, even though
waste management activities were performed in compliance with
regulations applicable at the time.  Under the Superfund
legislation, one party may, under certain circumstances, be
required to bear more than its proportional share of cleanup
costs at a site where it has responsibility pursuant to the
legislation, if payments cannot be obtained from other
responsible parties.  Other legislation mandates cleanup of
certain wastes at operating sites.  States also have regulatory
programs that can mandate waste cleanup.  Liability under these
laws involves inherent uncertainties.

     FTX has received notices from governmental agencies that it
is one of many potentially responsible parties at certain sites
under relevant federal and state environmental laws.  Further,
FTX is aware of additional sites for which it may receive such
notices in the future.  Some of these sites involve significant
cleanup costs; however, at each of these sites other large and
viable companies with equal or larger proportionate shares are
among the potentially responsible parties.  The ultimate
settlement for such sites usually occurs several years subsequent
to the receipt of notices identifying potentially responsible
parties because of the many complex technical and financial
issues associated with site cleanup.  FTX believes that the
aggregation of any costs associated with the potential
liabilities at those sites for which notification has been
received will not exceed amounts accrued and expects that any
costs would be incurred over a period of years.  The costs
associated with those sites for which notifications have not been
received are uncertain and cannot be estimated at present.
However, FTX believes that these costs, should they be incurred,
will not have a material adverse effect on its operations or
financial position.

     FTX maintains insurance coverage in amounts deemed prudent
for certain types of damages associated with environmental
liabilities which arise from unexpected and unforeseen events and
has an indemnification agreement covering certain acquired sites
(Note 9).

     In June 1994, a sinkhole was found at a phosphogypsum
storage area at IMC-Agrico's New Wales, Florida facility.  The
Florida Department of Environmental Protection was notified and
IMC-Agrico pumped grout material into the sinkhole, thereby
plugging it and preventing further collapse.  Groundwater
monitoring wells indicate that, to date, any impacts from the
sinkhole have been contained on-site.  This issue continues to be
monitored.  If there were contamination, which IMC-Agrico
considers unlikely, the costs that would be required are
uncertain and cannot be estimated at the present.  If significant
costs were incurred it would be necessary to determine the
applicability of insurance coverage maintained by IMC-Agrico, and
separately by FRP, and for the sharing of costs between the joint
venture partners.

     FTX has made, and will continue to make, expenditures at its
operations for protection of the environment.  Continued
government and public emphasis on environmental issues can be
expected to result in increased future investments for
environmental controls, which will be charged against income from
future operations.  Present and future environmental laws and
regulations applicable to FTX's operations may require
substantial capital expenditures and may affect its operations in
other ways that cannot now be accurately predicted.

              --------------------------------

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



                      REPORT OF MANAGEMENT

Freeport-McMoRan Inc. (the Company) is responsible for the
preparation of the financial statements and all other information
contained in this Annual Report.  The financial statements have
been prepared in conformity with generally accepted accounting
principles and include amounts that are based on management's
informed judgments and estimates.

     The Company maintains a system of internal accounting
controls designed to provide reasonable assurance at reasonable
costs that assets are safeguarded against loss or unauthorized
use, that transactions are executed in accordance with
management's authorization and that transactions are recorded and
summarized properly.  The system is tested and evaluated on a
regular basis by the Company's internal auditors, Price
Waterhouse LLP.  In accordance with generally accepted auditing
standards, the Company's independent public accountants, Arthur
Andersen LLP, have developed an overall understanding of our
accounting and financial controls and have conducted other tests
as they consider necessary to support their opinion on the
financial statements.

     The Board of Directors, through its Audit Committee composed
solely of non-employee directors, is responsible for overseeing
the integrity and reliability of the Company's accounting and
financial reporting practices and the effectiveness of its system
of internal controls.  Arthur Andersen LLP and Price Waterhouse
LLP meet regularly with, and have access to, this committee, with
and without management present, to discuss the results of their
audit work.

Rene L. Latiolais                                 Charles W. Goodyear
President and                                Executive Vice President and
Chief Executive Officer                        Chief Financial Officer



                      FREEPORT-MCMORAN INC.

                         BALANCE SHEETS

                                         December 31,
                                   ------------------------
                                      1995          1994
                                   ----------    ----------
                                          (In Thousands)
ASSETS
Current assets:
Cash and short-term investments    $   23,496    $   13,810
Accounts receivable:
  Customers                            58,220        46,831
  Other                                42,774        43,094
Inventories:
  Products                             83,924        79,377
  Materials and supplies               35,086        30,300
Prepaid expenses and other              4,499         7,433
                                   ----------    ----------
  Total current assets                247,999       220,845
                                   ----------    ----------
Property, plant and equipment       1,978,065     1,905,410
Less accumulated depreciation
 and amortization                     978,225       940,871
                                   ----------    ----------
  Net property, plant and
   equipment                          999,840       964,539
                                   ----------    ----------
Investment in FCX                           -       328,880
Other assets                           72,631       135,178
                                   ----------    ----------
Total assets                       $1,320,470    $1,649,442
                                   ==========    ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued
 liabilities                       $  180,766    $  191,553
Long-term debt, less current
 portion                              359,501     1,122,070
Accrued postretirement benefits
 and pension costs                    170,542       158,707
Reclamation and mine shutdown
 reserves                             128,981       112,777
Other liabilities and deferred
 credits                               92,722        77,034
Minority interest                     196,021       217,768
Stockholders' equity:
Convertible exchangeable preferred
 stock, par value $1, at
 liquidation value, authorized
 50,000,000 shares                     50,084       250,000
Common stock, par value $0.01
 and $1 per share, respectively,
 authorized 100,000,000 shares
 and 300,000,000 shares,
 respectively                             337       166,365
Capital in excess of par value
 of common stock                      522,694             -
Retained earnings (deficit)            92,746      (221,925)
Cumulative foreign currency
 translation adjustment                     -        (2,555)
Common stock held in treasury
  -6,016,800 and 4,863,200 shares,
  respectively, at cost              (473,924)     (422,352)
                                   ----------    ----------
                                      191,937      (230,467)
                                   ----------    ----------
Total liabilities and
 stockholders' equity              $1,320,470    $1,649,442
                                   ==========    ==========

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


                      FREEPORT-McMoRan INC.

                    STATEMENTS OF OPERATIONS


                                     Years Ended December 31,
                             ----------------------------------------
                                1995          1994            1993
                             ----------    ----------      ----------
                             (In Thousands, Except Per Share Amounts)
Revenues                     $  995,857    $  770,112      $  684,650 
Cost of sales:
Production and delivery         688,260       556,746         574,940
Depreciation and
 amortization                    46,784        56,411         123,679
                             ----------    ----------      ----------
  Total cost of sales           735,044       613,157         698,619
Exploration expenses                  -         6,672          31,331
Provision for
 restructuring charges                -             -          46,350
Loss on valuation and
 sale of assets, net                  -             -          64,114 
General and administrative
 expenses                        77,933        58,379          87,661
                             ----------    ----------      ----------
  Total costs and expenses      812,977       678,208         928,075
                             ----------    ----------      ----------
Operating income (loss)         182,880        91,904        (243,425)
Interest expense, net           (49,655)      (71,565)        (59,542)
Other income (expense), net       9,624        (1,245)             86
                             ----------    ----------      ----------
Income (loss) before income
 taxes and minority interest    142,849        19,094        (302,881)
Income tax benefit               50,983        13,138          68,674
Minority interest in net
 (income) loss of
 consolidated subsidiaries     (101,432)      (67,364)        108,627
                             ----------    ----------      ----------
Income (loss) from
 continuing operations           92,400       (35,132)       (125,580)
Discontinued operations         340,424       107,715          35,387
                             ----------    ----------      ----------
Income (loss) before
 extraordinary item and
 changes in accounting
 principle                      432,824        72,583         (90,193)
Extraordinary loss on
 early extinguishment
 of debt, net                         -        (9,108)              -
Cumulative effect of
 changes in accounting
 principle, net                       -             -         (13,642)
                             ----------    ----------      ----------
Net income (loss)               432,824        63,475        (103,835)
Preferred dividends             (42,283)      (22,032)        (22,368)
                             ----------    ----------      ----------
Net income (loss)
 applicable to common
 stock                       $  390,541    $   41,443      $ (126,203)
                             ==========    ==========      ==========

Net income (loss) per primary share:
Continuing operations             $3.54        $(1.51)         $(5.32)
Discontinued operations           13.05          4.64            1.50
Extraordinary loss                    -          (.39)              -
Cumulative effect of changes
 in accounting principle              -             -            (.58)
Preferred dividends               (1.62)         (.95)           (.95)
                                  -----         -----            ----
                                 $14.97        $ 1.79          $(5.35)
                                 ======       =======          ======
Net income (loss) per fully diluted share:
Continuing operations             $3.70        $(1.51)         $(5.32)
Discontinued operations           11.64          4.64            1.50
Extraordinary loss                    -          (.39)              -
Cumulative effect of changes
 in accounting principle              -             -            (.58)
Preferred dividends               (1.14)         (.95)           (.95)
                                  -----         -----            ----
                                 $14.20        $ 1.79          $(5.35)
                                 ======       =======          ======
Average common and common equivalent shares outstanding:
  Primary                        26,081        23,204          23,599 
                                 ======       =======         =======
  Fully diluted                  29,240        23,204          23,683 
                                 ======       =======         =======
Dividends per common share:
  Cash                             $.18        $1.875           $7.50 
  Property                       108.41         7.768               -
                                 ------      --------            ----
                                $108.59        $9.643           $7.50 
                                =======       =======          ======

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

                      FREEPORT-MCMORAN INC.

               STATEMENTS OF STOCKHOLDERS' EQUITY

                                           Years Ended December 31,
                                   -------------------------------------- 
                                      1995          1994          1993
                                   ----------    ----------    ----------
                                                (In Thousands)
$1.875 Convertible exchangeable preferred stock:
Balance at beginning of year       $        -    $    6,286    $    7,453 
Conversions to common stock and
 redemptions                                -        (6,286)       (1,167)
                                   ----------    ----------    ----------
  Balance at end of year                    -             -         6,286 
                                   ----------    ----------    ----------

$4.375 Convertible
 exchangeable preferred stock:
Balance at beginning of year          250,000       250,000       250,000 
Conversions to common stock          (199,916)            -             -
                                   ----------    ----------    ----------
  Balance at end of year               50,084       250,000       250,000 
                                   ----------    ----------    ----------

Common stock:
Balance at beginning of year          166,365       165,293       164,818 
Conversions to common stock
 and other                             32,649         1,072           475 
One-for-six reverse stock split
 and change in par value             (198,677)            -             -
                                   ----------    ----------    ----------
  Balance at end of year                  337       166,365       165,293 
                                   ----------    ----------    ----------

Capital in excess of par value of common stock:
Balance at beginning of year                -        21,868       186,032 
Dividends on preferred stock                -             -       (20,499)
Dividends on common stock              (1,427)      (35,600)     (131,992)
Distribution of FCX                  (240,721)            -             -
Conversions to common stock
 and other                            566,165        13,732       (11,673)
One-for-six reverse stock split
 and change in par value              198,677             -             -
                                   ----------    ----------    ----------
  Balance at end of year              522,694             -        21,868 
                                   ----------    ----------    ----------

Retained earnings (deficit):
Balance at beginning of year         (221,925)      (81,224)       68,532 
Net income (loss)                     432,824        63,475      (103,835)
Dividends on preferred stock          (42,283)      (22,032)       (1,869)
Dividends on common stock             (39,166)     (182,144)      (44,052)
Sale of Freeport Copper Company
 to FCX                                15,600             -             -
Distribution of FCX                   (52,304)            -             -
                                   ----------    ----------    ----------
  Balance at end of year               92,746      (221,925)      (81,224)
                                   ----------    ----------    ----------

Cumulative foreign currency translation adjustment:
Balance at beginning of year           (2,555)       (7,187)            -
Adjustment                              2,555         4,632        (7,187)
                                   ----------    ----------    ----------
  Balance at end of year                    -        (2,555)       (7,187)
                                   ----------    ----------    ----------

Common stock held in treasury:
Balance at beginning of year         (422,352)     (354,387)     (330,814)
Purchase of 981,300, 638,600
 and 221,000 shares, respectively     (44,752)      (67,747)      (22,229)
Other                                  (6,820)         (218)       (1,344)
                                   ----------    ----------    ----------
  Balance at end of year             (473,924)     (422,352)     (354,387)
                                   ----------    ----------    ----------
Total stockholders' equity         $  191,937    $ (230,467)   $      649 
                                   ==========    ==========    ==========

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

                      FREEPORT-McMoRan INC.

                     STATEMENTS OF CASH FLOW

                                           Years Ended December 31,
                                   ---------------------------------------
                                      1995          1994          1993
                                   ----------    ----------    -----------
                                               (In Thousands)
Cash flow from operating activities:
Net income (loss)                  $  432,824    $   63,475    $ (103,835)
Adjustments to reconcile net
 income (loss) to net cash provided
 by operating activities:
  Cumulative effect of changes in
   accounting principle                     -             -        20,717 
  Extraordinary loss on early
   extinguishment of debt                   -         9,108             -
  Depreciation and amortization        99,622       137,038       199,506 
  Other noncash charges to income           -             -        33,194 
  Provision for restructuring
   charges, net of payments                 -             -        23,890 
  Loss on valuation and sale
   of assets, net                           -             -        64,114 
  Oil and gas exploration expenses          -         5,231        26,710 
  (Recognition) deferral of
   unearned income                    (36,207)       36,207             -
  Amortization of debt discount
   and  financing costs                16,112        37,128        41,166 
  Gain on FCX securities
   transactions                      (435,060)     (114,750)      (44,116)
  Loss on recapitalization of
   FTX securities                      44,371             -             -
  Deferred income taxes                46,290        96,065       (39,035)
  Minority interests' share
   of net income (loss)               184,425       168,951       (61,689)
  Cash distributions from
   IMC-Agrico in excess of
   interest in capital                 40,835        43,293             -
  Reclamation and mine
   shutdown expenditures              (10,545)       (9,837)       (9,980)
  (Increase) decrease in
   working capital, net of
   effect of acquisitions
   and dispositions:
    Accounts receivable                11,374       (44,614)        2,821 
    Inventories                       (22,851)      (76,527)        4,475 
    Prepaid expenses and other          1,705         7,350       (10,873)
    Accounts payable and
     accrued liabilities               (6,337)      163,283       (24,590)
  Other                                13,025       (14,574)       (5,186)
                                   ----------    ----------    ----------
Net cash provided by
 operating activities                 379,583       506,827       117,289 
                                   ----------    ----------    ----------

Cash flow from investing activities:
Capital expenditures:
  FCX                                (308,099)     (743,470)     (463,512)
  FRP                                 (39,485)      (29,681)      (52,170)
  Other                                (2,070)      (33,070)      (58,530)
Sale of assets:  
  Oil and gas                               -             -        95,250 
  Geothermal                                -        36,910        23,000 
  Other                                26,906        75,092        26,961 
Mallinckrodt purchase                 (46,200)            -             -
                                   ----------    ----------    ----------
Net cash used in
 investing activities              $ (368,948)   $ (694,219)   $ (429,001)
                                   -----------   -----------   ----------
Cash flow from financing activities:
Proceeds from sale of equity securities:
  FCX Class A common shares        $  497,166    $        -    $        -
  FCX preferred stock                       -       252,985       561,090 
Purchase of FTX common shares         (44,752)      (67,747)      (22,229)
Purchase of FCX Class A
 common shares                       (111,747)      (47,596)      (16,482)
Purchase of FRP units                  (4,314)       (1,342)            -
Distributions paid to minority interests:
  FCX                                 (59,970)     (110,312)      (74,848)
  FRP                                (121,439)     (121,184)     (121,180)
Distribution of MOXY shares                 -       (35,441)            -
Net proceeds from
 infrastructure financing             228,899       110,825        20,000 
Proceeds from debt                    510,896       669,928       441,376
Repayment of debt                    (597,700)     (501,901)     (621,381)
Proceeds from (purchase of)
 debt securities:
  ABC debentures                     (280,826)            -             -
  6.55% Senior notes                  (14,955)            -             -
  10 7/8% Senior debentures                 -      (142,919)            -
  FRP 8 3/4% Senior
   Subordinated Notes                       -       146,125             -
  FCX 9 3/4% Senior notes                   -       116,276             -
Cash dividends paid:
  Common stock                         (5,168)      (44,467)     (175,890)
  Preferred stock                      (8,757)      (22,110)      (22,384)
Other                                  (1,380)        6,088         1,962 
                                   ----------    ----------    ----------
Net cash provided by
 (used in) financing activities       (14,047)      207,208       (29,966)
                                   ----------    ----------    ----------
Net increase (decrease) in cash
 and short-term investments            (3,412)       19,816      (341,678)
Net (increase) decrease
 attributable to discontinued
 operations                            13,098       (30,454)      358,044
Cash and short-term investments
 at beginning of year                  13,810        24,448         8,082
                                   ----------    ----------    ----------
Cash and short-term investments
 at end of year                    $   23,496    $   13,810    $   24,448
                                   ==========    ==========    ==========

Interest paid                      $   85,861    $   94,631    $   94,557 
                                   ==========    ==========    ==========

Income taxes paid                  $   72,458    $   42,576    $   15,925 
                                   ==========    ==========    ==========

The accompanying notes, which include information in Notes 1-5, 7
and 10 regarding noncash transactions, are an integral part of
these financial statements.

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation.  The consolidated financial statements of
Freeport-McMoRan Inc. (FTX) include all majority-owned
subsidiaries and publicly traded partnerships.  Investments in
joint ventures and partnerships (other than publicly traded
entities) are reflected using the proportionate consolidation
method in accordance with standard industry practice.  All
significant intercompany transactions have been eliminated.
Certain prior year amounts have been reclassified to conform to
the 1995 presentation.

     In July 1995, FTX completed the distribution of its
ownership in Freeport-McMoRan Copper & Gold Inc. (FCX) in the
form of a tax-free dividend to the FTX common stockholders (Note
3).  As a result of FTX no longer owning any interest in FCX,
FTX's financial statements have been restated to reflect
activities related to FCX's operations as discontinued.  Except
where otherwise indicated, the following notes relate to
continuing operations consisting principally of FTX's ownership
of Freeport-McMoRan Resource Partners, Limited Partnership (FRP).

Use of Estimates.  The financial statements have been prepared in
conformity with generally accepted accounting principles and
include amounts that are based on management's informed judgments
and estimates.

Cash and Short-Term Investments.  Highly liquid investments
purchased with a maturity of three months or less are considered
cash equivalents.  Cash and short-term investments held by
consolidated entities are not available to FTX until a
distribution is paid to all owners of an entity's equity
securities.

Accounts Receivable.  IMC-Agrico Company (IMC-Agrico) has an
agreement whereby it can sell on an ongoing basis up to $65
million of accounts receivable.  FTX's accounts receivable at
December 31, 1995 and 1994 were net of $28.3 million and $17.9
million of receivables sold, respectively.

Inventories.  Inventories are generally stated at the lower of
average cost or market.

Property, Plant and Equipment.  Property, plant and equipment are
carried at cost, including capitalized interest during the
construction and development period.  Expenditures for
replacements and improvements are capitalized.  Depreciation for
mining and production assets, including mineral interests, is
determined using the unit-of-production method based on estimated
recoverable reserves.  Other assets are depreciated on a
straight-line basis over estimated useful lives of 17 to 30 years
for buildings and 5 to 25 years for machinery and equipment.

     In March 1995, the Financial Accounting Standards Board
issued Statement No. 121 (FAS 121) which requires a reduction of
the carrying amount of long-lived assets to fair value when
events indicate that their carrying amount may not be
recoverable.  FTX adopted FAS 121 effective January 1, 1995, the
effect of which was not material.

Oil and Gas Costs.  FTX follows the successful efforts method of
accounting for its oil and gas operations.  Costs of leases,
productive exploratory wells and development activities are
capitalized.  Other exploration costs are expensed.  Depreciation
and amortization is determined on a field-by-field basis using
the unit-of-production method.   Gain or loss is included in
income when properties are sold.

Environmental Remediation and Compliance.  Environmental
expenditures that relate to current operations are expensed or
capitalized as appropriate.  Expenditures resulting from the
remediation of an existing condition caused by past operations,
and which do not contribute to current or future revenue
generation, are expensed.  Liabilities are recognized for
remedial activities when the efforts are probable and the cost
can be reasonably estimated.

     Estimated future expenditures to restore properties and
related facilities to a state required to comply with
environmental and other regulations are accrued over the life of
the properties.  The future expenditures are estimated based on
current costs, laws and regulations.  As of December 31, 1995,
FTX had accrued $53.9 million for abandonment and restoration of
its non-operating sulphur assets, approximately one-half of which
will be reimbursed by third parties, $42.7 million for
reclamation of land relating to mining and processing phosphate
rock and $21.1 million for the dismantlement and abandonment of
certain oil and gas properties.  FTX estimates that FRP's share
of abandonment and restoration costs for its two operating
sulphur mines will total approximately $50 million, $17.6 million
of which had been accrued at December 31, 1995, with essentially
all costs being incurred after mine closure.  These estimates are
by their nature imprecise and can be expected to be revised over
time due to changes in government regulations, operations,
technology and inflation.

Net Income Per Share.  All common share and per share amounts
reflect the common stock split discussed in Note 7.  Primary net
income per share is computed by dividing net income applicable to
common stock by the average common and common equivalent shares
outstanding.  Fully diluted net income per share is computed
assuming all convertible securities, if dilutive, were converted
at the beginning of the period or date of issuance, whichever is
later.  During 1995, a portion of FTX's $4.375 Convertible
Exchangeable Preferred Stock and 6.55% Convertible Subordinated
Notes were exchanged for FTX common stock.  Had these conversions
occurred on January 1, 1995, primary net income from continuing
operations would have been $3.53 per share for 1995.

Changes in Accounting Principle.  During 1993, FTX adopted the
following changes in accounting principle:

     Periodic Scheduled Maintenance - These costs are expensed
when incurred.  Previously, costs were capitalized when incurred
and amortized.

     Deferred Charges - Costs that directly relate to the
acquisition, construction and development of assets and to the
issuance of debt and related instruments are deferred.
Previously, certain other costs that benefited future periods
were deferred.

     Management Information Systems (MIS) - MIS equipment and
software that have a material impact on net income are
capitalized.  Other MIS costs, including equipment and purchased
software, that involve immaterial amounts (currently individual
expenditures of less than $0.5 million) and short estimated
productive lives (currently less than three years) are charged to
expense when incurred.  Previously, most expenditures for MIS
equipment and purchased software were capitalized.

2.  FREEPORT-McMoRAN RESOURCE PARTNERS, LIMITED PARTNERSHIP

FTX's fertilizer and sulphur operations and its Main Pass oil
operations are conducted through its publicly traded affiliate,
FRP.  FTX owned 51.5 percent of the FRP units outstanding at
December 31, 1995.

     In July 1993, FRP and IMC Global Inc. (IGL) formed the IMC-
Agrico joint venture, operated by IGL, for their respective
phosphate fertilizer businesses, including phosphate rock.  FRP's
"Current Interest", reflecting cash to be distributed from
ongoing operations, initially was 58.6 percent and its "Capital
Interest", reflecting the purchase or sale of long-term assets or
any required capital contributions, was 46.5 percent.  These
ownership percentages (53.1 percent and 43.6 percent,
respectively, at December 31, 1995) decline in annual increments
to 40.6 percent for the fiscal year ending June 30, 1998 and
remain constant thereafter.  In January 1996, FRP and IGL agreed
to an increase in FRP's Current and Capital Interest of 0.85
percent, subject to IGL consummating a merger.  At December 31,
1995, FRP's investment in IMC-Agrico totaled $429.2 million.
IMC-Agrico's assets are not available to FRP until distributions
are paid by the joint venture.

     Publicly owned FRP units have cumulative rights to receive
quarterly distributions of 60 cents per unit through the
distribution for the quarter ending December 31, 1996 before any
distributions may be made to FTX.  On January 19, 1996, FRP
declared a distribution of 62.5 cents per publicly held unit
($31.3 million) and 67.35 cents per FTX-owned unit ($35.9
million), reducing the unpaid distributions to FTX to $379.9
million.  Unpaid FTX distributions are recoverable from one-half
of any amount by which future quarterly distributable cash
exceeds a 60 cents per unit distribution.

     In February 1992, FRP sold publicly 19.5 million new units,
resulting in a gain to FTX of $136.6 million which was deferred
because of the FRP public unitholders' distribution priority.
Even though FTX was not paid its proportionate share of FRP
distributions, FTX reflected its proportionate share of FRP's
earnings through recognition of portions of the deferred gain
($32.6 million in 1994 and $62.2 million in 1993).  However, in
1994 the remaining deferred gain was utilized and FTX recognized
an additional minority interest charge of $23 million in 1995 and
$26.5 million in 1994.  In 1996, to the extent that public
unitholders receive a disproportionately large share of FRP
distributions FTX will recognize a smaller share of FRP's
reported earnings than would be represented by its percentage
ownership of FRP.  To the extent the cumulative unpaid
distributions are reduced, FTX will recognize a
disproportionately greater share of FRP's reported earnings.

3.  FREEPORT-McMoRAN COPPER & GOLD INC.

In July 1995, FTX distributed 117,909,323 shares of FCX Class B
common stock to FTX common stockholders.  As a result of FTX no
longer owning any interest in FCX, FTX's financial statements
have been restated to reflect activities related to FCX's
operations as discontinued.  In connection with a
recapitalization of its liabilities, prior to the FCX
distribution, FTX sold 23.9 million shares of FCX Class A common
stock in 1995 to The RTZ Corporation PLC (RTZ) for net proceeds
of $497.2 million, recognizing a pretax gain of $435.1 million.
Discontinued operations results follow (in thousands):

                                      1995          1994          1993
                                   ----------    ----------    ----------

Revenues                           $  830,275    $1,212,284    $  925,932
                                   ==========    ==========    ==========

Income from discontinued
 operations                        $  221,927    $  256,079    $  121,959
Minority interest                     (82,992)     (101,588)      (44,159)
Provision for taxes                   (95,436)     (115,357)      (65,692)
                                   ----------    ----------    ----------
                                       43,499        39,134        12,108
Gain on FCX securities
 transactions                         435,060       114,750        44,116
Recapitalization losses (Note 4)      (44,371)            -             -
Provision for taxes                   (93,764)      (46,169)      (20,837)
                                   ----------    ----------    ----------
                                   $  340,424    $  107,715    $   35,387
                                   ==========    ==========    ==========

     Income from discontinued operations includes allocated
interest from FTX totaling $16.6 million in 1995, $21.8 million
in 1994 and $5.2 million in 1993.

     In September 1995, FCX paid FTX $25 million cash for 100
percent of the stock of Freeport Copper Company whose sole asset
is a 50 percent interest in a joint venture with ASARCO Santa
Cruz, Inc. controlling approximately 7,600 contiguous acres in
Arizona.  The joint venture is involved in a research project for
an experimental in-situ leaching process that would be used to
mine copper.

4.  LONG-TERM DEBT

                                          December 31,
                                   -----------------------
                                      1995          1994 
                                   ----------    ----------
Notes payable:                          (In Thousands)
  FTX credit agreement, average 
    rate 7.1% in 1995 and 5.4% in
    1994                           $  196,400    $  370,000
  Other                                13,440        13,951
Publicly traded notes and debentures:
  Zero Coupon Convertible
   Subordinated Debentures                  -       270,196
  6.55% Convertible
   Subordinated Notes                       -       318,237
  FRP 8 3/4% Senior Subordinated
   Notes due 2004                     150,000       150,000
                                   ----------    ----------
                                      359,840     1,122,384
Less current portion, included in
 accounts payable                         339           314
                                   ----------    ----------
                                   $  359,501    $1,122,070
                                   ==========    ==========
Notes Payable.  In 1995, FTX obtained a new variable rate
revolving credit facility (the Credit Agreement).  The facility
provides $400 million of credit, all of which is available to FRP
($213 million of additional borrowings available at December 31,
1995) and $75 million of which is available to FTX as the holding
company, through July 2000.  Under this facility, FTX is required
to retain control of FRP and FRP is not permitted to enter into
any agreement restricting its ability to make distributions or
create liens on its assets.  As security for the banks, FTX has
pledged units representing 50.1 percent of FRP, while FRP has
pledged its interest in IMC-Agrico and Main Pass oil.  The Credit
Agreement provides for FRP minimum working capital requirements,
specified cash flow to interest coverage, maximum debt to
capitalization ratios and restrictions on other borrowings.

     In February 1994, IMC-Agrico entered into a three-year $75
million variable rate credit facility (the IMC-Agrico Facility).
Borrowings under the IMC-Agrico Facility are unsecured with a
negative pledge on substantially all of IMC-Agrico's assets.  The
IMC-Agrico Facility has minimum capital, fixed charge and current
ratio requirements for IMC-Agrico; places limitations on debt at
IMC-Agrico; and restricts the ability of IMC-Agrico to make cash
distributions in excess of distributable cash generated.

     FTX and FRP entered into interest rate swaps to manage
exposure to interest rate changes on a portion of their variable
rate debt.  Under 1986 interest rate exchange agreements, FTX
pays an average fixed rate of 8.2 percent on $150.1 million of
financing until April 1996.  FTX and FRP pay 10.2 percent on
interest rate exchange agreements entered into in late 1987 and
early 1988 on $55.3 million of financing at December 31, 1995,
reducing annually through 1999.  Interest on comparable floating
rate debt averaged 6.1 percent in 1995, 4.4 percent in 1994 and
3.4 percent in 1993, resulting in additional interest costs of
$5.4 million, $9.8 million and $12.8 million, respectively.
Based on market conditions at December 31, 1995, unwinding these
interest swaps would require an estimated $6.3 million.

Publicly Traded Notes and Debentures.  In June 1995, FTX redeemed
$749.2 million principal amount of its Zero Coupon Convertible
Subordinated Debentures (ABC Debentures) for $280.8 million
(equal to book value) and redeemed $16.4 million face amount of
6.55% Convertible Subordinated Notes (6.55% Notes), with a book
value of $14.1 million, for $15 million.  Prior to the
redemption, FTX increased the number of FTX common shares that
would be received upon conversion of the 6.55% Notes.  Holders of
$356.6 million face amount of 6.55% Notes converted their notes
at the enhanced rate into 3.3 million FTX common shares.  FTX
recorded a pretax loss on recapitalization of the ABC Debentures
and 6.55% Notes totaling $44.4 million.

     In February 1994, FRP sold publicly $150 million of 8 3/4%
Senior Subordinated Notes.  Based on the December 31,1995 closing
market price, this debt had a fair value of $151.9 million.

     During 1994, FTX defeased $125.3 million of its 10 7/8%
Senior Subordinated Debentures resulting in a $9.1 million after-
tax extraordinary loss.

Minimum Principal Payments.  Payments scheduled for each of the
five succeeding years based on the amounts and terms outstanding
at December 31, 1995 are $0.3 million, $0.4 million, $0.5
million, $0.5 million and $196.4 million.

Capitalized Interest.  Capitalized interest totaled $11.1 million
in 1993.

5.  ACQUISITIONS AND MOXY DISTRIBUTION

Pennzoil.  In January 1995, FRP acquired essentially all of the
domestic assets of Pennzoil Co.'s sulphur division.  Pennzoil
will receive quarterly payments from FRP over 20 years based on
the prevailing price of sulphur.  The installment payments may be
terminated earlier either by FRP through the exercise of a $65
million call option or by Pennzoil through a $10 million put
option.  Neither option may be exercised prior to 1999.  The
purchase price allocation is as follows (in thousands):

Current assets                                      $    5,635
Property, plant and equipment                           48,837
Current liabilities                                     (7,499)
Reclamation and mine shutdown reserves                 (15,200)
Accrued long-term liabilities                          (31,773)
                                                    ----------
  Net cash investment                               $        -
                                                    ==========

     Accrued long-term liabilities include the estimated future
installment payments based on the prevailing sulphur price at the
time of acquisition.

Mallinckrodt.       In October 1995, IMC-Agrico acquired the
animal feed ingredients business of Mallinckrodt Group Inc. for
$110 million cash.  FRP funded its  portion of the purchase price
with borrowings under the Credit Agreement.  The purchase price
allocation is as follows (in thousands):

Current assets                                      $   19,503
Property, plant and equipment                           35,329
Current liabilities                                     (8,632)
                                                    ----------
  Net cash investment                               $   46,200
                                                    ==========

McMoRan Oil & Gas Co. (MOXY).  In 1994, FTX distributed common
shares of its newly formed, wholly owned subsidiary, MOXY, to
FTX's stockholders.  MOXY was organized to carry on substantially
all of the oil and gas exploration activities previously
conducted by FTX.  The net assets transferred to MOXY at FTX's
historical cost follow (in thousands):

Cash and short-term investments                     $   35,441 
Property, plant and equipment                           13,052 
Other assets                                            10,113 
Current liabilities                                     (1,138)
                                                    ----------
                                                    $   57,468 
                                                    ==========

6.  INCOME TAXES

Income taxes are recorded pursuant to Statement of Financial
Accounting Standards No. 109.  The components of FTX's deferred
taxes follow:

                                         December 31,
                                   -----------------------
                                      1995          1994
                                   ----------    ----------
Deferred tax asset:                     (In Thousands)
  Net operating loss carryforwards $        -    $  121,248
  Alternative minimum tax credits      49,780        47,183
  Other tax carryforwards              31,256        45,637
  Deferred compensation,
   postretirement and
   pension benefits                    52,216        55,039
  Reclamation and shutdown reserve     29,492        24,908
  Basis in subsidiaries                 8,094             -
  Other                                20,141        14,440
  Valuation allowance                 (11,489)      (45,637)
                                   ----------    ----------
    Total deferred tax asset          179,490       262,818
                                   ----------    ----------
Deferred tax liability:
  Property, plant and equipment      (127,113)     (116,215)
  Basis in subsidiaries                     -       (39,380)
  Other                               (38,963)      (42,155)
                                   ----------    ----------
    Total deferred tax liability     (166,076)     (197,750)
                                   ----------    ----------
Net deferred tax asset
 (included in other assets)        $   13,414    $   65,068
                                   ==========    ==========

     During 1995, primarily because of the distribution of FCX
and related recapitalization efforts, FTX was able to utilize all
of its net operating loss carryforwards.  FTX believes that no
valuation allowance is needed for its alternative minimum tax
(AMT) credits because historically it has been able to use
substantially all of its tax benefits and AMT credits can be
carried forward indefinitely.  During 1995, as a result of using
its net operating loss carryforwards, FTX determined that it is
more likely than not that the majority of its other tax credits
will be utilized and, accordingly, reduced the previously
established valuation allowance by $27.4 million.  FTX has
provided a valuation allowance for its charitable contribution
carryforwards as they are limited to ten percent of taxable
income and substantially all expire between 1996 and 2000.

     FTX does not provide deferred taxes for financial and income
tax reporting basis differences related to its investment in FRP
which are considered permanent in duration (approximately $320
million).  FTX believes it will ultimately be able to eliminate
these differences on a tax-free basis.  If ownership in FRP were
to fall below 50 percent or if FTX were to determine that such
difference will not be eliminated tax-free, FTX would be required
to charge earnings for taxes on the difference between the book
and tax basis of its investment.

     The income tax benefit from continuing operations consists
of the following:

                                      1995          1994          1993
                                   ----------    ----------    ----------
                                                (In Thousands)
Current income taxes:
  Federal                          $  116,920    $   (7,206)   $    6,430
  State                                13,286           788        (4,241)
                                   ----------    ----------    ----------
                                      130,206        (6,418)        2,189
                                   ----------    ----------    ----------
Deferred income taxes:
  Federal                             (62,218)       20,482        55,808
  State                               (17,005)         (926)       10,677
                                   ----------    ----------    ----------
                                      (79,223)       19,556        66,485
                                   ----------    ----------    ----------
                                   $   50,983    $   13,138    $   68,674
                                   ==========    ==========    ==========

     Reconciliations of the differences between income taxes from
continuing operations computed at the federal statutory tax rate
and income taxes recorded follow:

                            1995                1994            1993
                      -----------------  -----------------  ---------------
                       Amount   Percent   Amount   Percent   Amount  Percent
                      --------  -------  --------  -------  -------- -------
                                      (Dollars In Thousands)
Income taxes computed at the
 federal statutory tax
 rate                 $(49,997)    35%   $ (6,683)    35%   $106,008    35%
(Increase) decrease
 attributable to:
  Statutory
   depletion             5,594     (4)      1,780     (9)      2,016     1
  Partnership minority
   interests            38,139    (27)     25,342   (133)    (45,057)  (15)
  Taxes no longer
   required             35,449    (25)          -      -           -     -
  Change in valuation
   allowance            27,350    (19)          -      -           -     -
  Minimum and state
   taxes                (3,719)     3        (138)     1       6,436     2
  Other                 (1,833)     1      (7,163)    37        (729)    -
                      --------   ------  --------  -------  --------  ------
Income tax
 benefit              $ 50,983    (36)%  $ 13,138    (69)%  $ 68,674    23%
                      ========  =======  ========  =======  ========  ======

7.  STOCKHOLDERS' EQUITY

Preferred Stock.  In April 1995, FTX exchanged 1.9 million FTX
common shares for 4 million shares of its $4.375 Convertible
Exchangeable Preferred Stock ($4.375 Preferred Stock) in
accordance with an exchange offer whereby FTX temporarily
increased the FTX shares issuable upon conversion.  As a result
of the exchange offer, FTX recorded a noncash charge of $33.5
million to preferred dividends.  As of December 31, 1995, one
million shares of $4.375 Preferred Stock remained outstanding and
are convertible into FTX common stock at a conversion price of
$27.36 per share or the equivalent of 1.8 shares of FTX common
stock for each share of $4.375 Preferred Stock.  Beginning March
1997, FTX may redeem this preferred stock for cash at $52.1875
per share (declining ratably to $50 per share in March 2002) plus
accrued and unpaid dividends.

Common Stock.  In October 1995, FTX effected a one-for-six
reverse stock split of its common stock and changed the par value
from $1.00 per share to $0.01 per share.

     In June 1994, FTX changed its dividend policy and
distributed quarterly 0.075 FCX common shares for each FTX common
share owned in lieu of paying a $1.875 quarterly cash dividend to
its stockholders.  FTX recorded a pretax gain of $105.5 million
in 1994 related to these property dividends which is included in
discontinued operations.  In August 1995, FTX established a new
dividend policy declaring a regular quarterly cash dividend of 9
cents per FTX common share.

Stock Options.  FTX's stock option plans provide for the issuance
of stock options and stock appreciation rights (SARs) at no less
than market value at time of grant. FTX can grant options to
employees to purchase up to 1.6 million shares under its 1992
stock option plans.  The 1988 Stock Option Plan for Non-Employee
Directors authorizes FTX to grant options to purchase up to
250,000 shares.  Under certain options, FTX will pay cash to the
optionee equal to an amount based on the maximum individual
federal income tax rate in effect at the time of exercise.  In
connection with the distribution of FCX and MOXY shares, each
option was adjusted to preserve the economic value of the option.
Additionally, the FCX distribution resulted in an adjustment to
the average option price based on the value of the distribution.
Generally, stock options terminate ten years from the date of
grant.  A summary of stock options outstanding, including 0.4
million SARs, follows:

                                   1995                          1994
                         --------------------------    ---------------------
                          Number of      Average       Number of   Average
                           Options     Option Price     Options  Option Price
                         ----------    ------------    --------- ------------
Beginning of year         2,613,588       $98.76       2,290,498   $106.14
Granted                      21,667       105.36         297,867    116.52
Adjustments                  63,105                      159,027
Exercised                (1,177,285)       23.98        (114,908)    95.40
Expired                     (63,035)       89.46         (18,896)   107.40
                         ----------                   ----------
End of year               1,458,040        18.84       2,613,588     98.76
                         ==========                   ==========

     At December 31, 1995, stock options representing one million
shares were exercisable at an average option price of $18.53 per
share.  Options for approximately 325,000 shares and 80,000
shares were available for new grants under the 1992 and 1988
Stock Option Plans, respectively, as of December 31, 1995.

     During 1995, FTX recorded charges totaling $15.5 million for
the cost of stock options resulting from the rise in FTX's common
stock price.  In October 1995 the Financial Accounting Standards
Board issued Statement of Financial Accounting Standards No. 123
(FAS 123) "Accounting for Stock-Based Compensation," effective
for FTX at December 31, 1996.  Under FAS 123, companies can
either record expense based on the fair value of stock-based
compensation upon issuance or elect to remain under the current
APB Opinion No. 25 method whereby no compensation cost is
recognized upon grant.  Entities electing to remain with the
accounting in APB Opinion No. 25 must make disclosures as if FAS
123 had been applied.  FTX anticipates it will continue to
account for its stock-based compensation plans under APB Opinion
No. 25.

8.   PENSION AND OTHER EMPLOYEE BENEFITS

The FTX pension plan covers substantially all United States and
certain overseas employees.  Employees covered by collective
bargaining agreements and most nonresident aliens, many of whom
are covered by other plans, are not included.  Benefits are based
on compensation levels and years of service.  FTX funds its
pension liability in accordance with Internal Revenue Service
guidelines.  Additionally, for those participants in the
qualified defined benefit plan whose benefits are limited under
federal income tax laws, FTX sponsors an unfunded nonqualified
plan.  Information on the two plans follows:

                                           December 31,
                                   ------------------------
                                      1995          1994
                                   ----------    ----------
                                        (In Thousands)
Actuarial present value of
 benefit obligations
 (projected unit credit method):
  Vested                           $  136,836    $   90,396 
  Nonvested                             3,961         1,643 
                                   ----------    ----------
Accumulated benefit obligations    $  140,797    $   92,039 
                                   ==========    ==========

Projected benefit obligations
 (projected unit credit method)    $ (174,074)   $ (114,599)
Less plan assets at fair value        130,970       108,326 
                                   ----------    ----------
Projected benefit obligations
 in excess of plan assets             (43,104)       (6,273)
Unrecognized net (gain) loss
 from past experience different
 from that assumed                     22,202        (5,179)
Unrecognized prior service costs        3,848         4,340 
Unrecognized net asset being
 recognized over 19 years              (3,288)       (3,763)
                                   ----------    ----------
Accrued pension cost               $  (20,342)   $  (10,875)
                                   ==========    ==========

     In determining the present value of benefit obligations for
1995 and 1994, FTX used a 7 percent and 8.25 percent discount
rate, respectively, a 5 percent annual increase in future
compensation levels and a 9 percent average expected rate of
return on assets.

     Net pension cost for continuing operations includes the
following:

                                      1995          1994          1993
                                   ----------    ----------    ----------
                                                (In Thousands)
Service cost                       $    4,429    $    5,668    $    8,573 
Interest cost on projected
 benefit obligations                   10,083         9,008         9,739 
Actual return on plan assets          (26,526)          126        (9,388)
Net amortization and deferral          17,450        (8,814)        1,423 
Termination benefits                    4,292         2,404            26 
                                   ----------    ----------    ----------
Net pension cost                   $    9,728    $    8,392    $   10,373 
                                   ==========    ==========    ==========

     As of January 1, 1996, FM Services Company (FMS), a newly
formed entity owned 50 percent each by FTX and FCX, will provide
certain administrative, financial and other services that were
previously provided by FTX on a similar cost-reimbursement basis.
As of January 1, 1996, all U.S. and expatriate employees
performing direct services for FCX or its affiliates, other than
those employed by FMS, became FCX employees.  FCX and FMS will
establish their own plans which will assume liabilities equal to
the accumulated benefit obligation for the transferred employees
and FTX will transfer assets equal to the liabilities assumed,
while providing essentially the same benefits to employees.

     The operator of IMC-Agrico maintains non-contributory
pension plans that cover substantially all of its employees.  As
of July 1, 1995, FRP's share of the actuarial present value of
the vested projected benefit obligation was $10 million, based on
a discount rate of 8.2 percent and a 5 percent annual increase in
future compensation levels, with its share of plan assets
totaling $2.7 million.  FRP's share of the expense related to
these plans totaled $4.6 million in 1995, $3.6 million in 1994
and $1.5 million in 1993.

     FTX provides certain health care and life insurance benefits
for retired employees.  The related expense for continuing
operations totaled $10.5 million in 1995 ($1.5 million for
service cost and $9 million in interest for prior period
services), $12.3 million in 1994 ($1.3 million and $10 million,
respectively) and $11.3 million in 1993 ($1.8 million and $9.5
million, respectively).  These benefits will be provided by FMS
beginning in 1996.  Summary information of the plan follows:

                                         December 31,
                                   ------------------------
                                      1995          1994 
                                   ----------    ----------
                                        (In Thousands)
Actuarial present value of accumulated
 postretirement obligation:
  Retirees                         $  111,151    $  109,356
  Fully eligible active
   plan participants                   11,248         8,806
  Other active plan participants       16,980         4,611
                                   ----------    ----------
Total accumulated
 postretirement obligation            139,379       122,773
Unrecognized net gain (loss)           (7,498)        4,037
                                   ----------    ----------
Accrued postretirement
 benefit cost                      $  131,881    $  126,810
                                   ==========    ==========

     The initial health care cost trend rate used was 11.5
percent for 1993, decreasing 0.5 percent per year until reaching
6 percent.  A one percent increase in the trend rate would
increase the amounts by approximately 10 percent.  The discount
rate used was 7  percent in 1995 and 8.25 percent in 1994.  FTX
has the right to modify or terminate these benefits.

     The operator of IMC-Agrico provides certain health care
benefits for retired employees.  At July 1, 1995, FRP's share of
the accumulated postretirement obligation was $4.2 million, which
was unfunded.  FRP's share of expense has not been material.  The
initial health care cost trend rate used was 9.8 percent,
decreasing gradually to 5.5 percent in 2003.  The discount rate
used was 8.2 percent.  Employees are not vested and benefits are
subject to change.

     FTX has an Employee Capital Accumulation Program which
permits eligible employees to defer a portion of their pretax
earnings and has an unfunded excess benefits plan for employees
to defer amounts in excess of the limitations imposed by the
Internal Revenue Code.  FTX matches employee deferrals up to 5
percent of basic earnings.  FTX has other employee benefits
plans, certain of which are related to its performance, which
costs are recognized currently in general and administrative
expense.

9.  COMMITMENTS AND CONTINGENCIES

Litigation.  While FTX is a defendant in various lawsuits
incurred in the ordinary course of its businesses, management
believes the potential liability in such lawsuits is not material
or is adequately covered by insurance, third party indemnity
agreements or reserves previously established.  FTX maintains
liability and other insurance customary in its businesses, with
coverage limits deemed prudent.

Environmental.  FTX has made, and will continue to make,
expenditures at its operations for protection of the environment.
FTX is subject to contingencies as a result of environmental laws
and regulations.  The related future cost is indeterminable
because of such factors as the unknown timing and extent of the
corrective actions that may be required and the application of
joint and several liability.

     In June 1994, a sinkhole was found at a phosphogypsum
storage area at IMC-Agrico's New Wales, Florida facility.  The
Florida Department of Environmental Protection was notified and
IMC-Agrico pumped grout material into the sinkhole, thereby
plugging it and preventing further collapse.  Groundwater
monitoring wells indicate that, to date, any impacts from the
sinkhole have been contained on-site.  This issue continues to be
monitored.  If there were contamination, which IMC-Agrico
considers unlikely, the costs that would be required are
uncertain and cannot be estimated at the present.  If significant
costs were incurred it would be necessary to determine the
applicability of insurance coverage maintained by IMC-Agrico,
and separately by FRP, and for the sharing of costs between the
joint venture partners.

     FRP has an indemnification for environmental remediation
costs in excess of an aggregate $5 million on certain identified
sites (FRP has previously accrued the $5 million).  In
anticipation of reaching the $5 million indemnity, the third
party has assumed management of response activities for the
indemnified sites.  Based on FRP's review of the potential
liabilities and the third party's financial condition, FRP
concluded that it is remote that FRP would have any additional
liability at the indemnified sites.  FTX believes its exposure on
other sites for which notification has been received will not
exceed amounts accrued and expects that any costs would be
incurred over a period of years.  The costs associated with those
sites for which notifications have not been received are
uncertain and cannot be estimated at present.  However, FTX
believes that these costs, should they be incurred, will not have
a material adverse effect on its operations or financial
position.

FM Properties Inc. (FMPO).  In 1992, FTX transferred
substantially all of its domestic oil and gas properties and real
estate held for development by it and certain of its subsidiaries
to a partnership which is currently 99.8 percent owned by FMPO
(FTX owns a 0.2 percent interest in the partnership and serves as
its managing general partner).  FTX subsequently distributed the
FMPO common stock to the FTX common stockholders, with FTX
guaranteeing FMPO's debt.  As part of the FCX distribution (Note
3), FCX assumed an obligation to guarantee up to $90 million of
this indebtedness (FTX is responsible for the first $45 million
and amounts in excess of FCX's $90 million up to an additional
$12.3 million) and FTX is paying an annual three percent fee to
FCX based on the amount guaranteed.  During 1995, FMPO was able
to extend its debt maturities until 1997 and is managing its
assets with an objective of reducing its debt.  Selected
financial information of FMPO follows:

                                      1995          1994
                                   ----------    ----------
Statements of Operations:                (In Thousands)
  Revenues                         $   48,170    $   40,435 
  Operating loss                       (4,104)     (123,739) *
  Net income (loss)                       153       (86,290)
Cash Flow:
  Operating activities                 47,655        11,968 
  Investing activities                (35,242)       29,019 
  Financing activities                (11,331)      (42,270)
Balance Sheets at December 31:
  Current assets                        9,591         6,857 
  Current liabilities                   8,100        22,146
  Investment in real estate           180,040       198,453 
  Total assets                        194,803       214,365 
  Long-term debt                      121,294       132,075 
  Stockholders' equity                 59,523        59,370 

  *  Includes a $115 million pretax, noncash write-down.

Long-Term Contracts and Operating Leases.  FTX's minimum annual
contractual charges under noncancelable long-term contracts and
operating leases which extend to 2009 total $363.9 million, with
$45.3 million in 1996, $41.5 million in 1997, $40.4 million in
1998, $29.8 million in 1999 and $39.2 million in 2000.  Total
expense under long-term contracts and operating leases amounted
to $44.3 million in 1995, $30 million in 1994 and $27.5 million
in 1993.

10.  RESTRUCTURING AND VALUATION CHARGES

Restructuring Charges.  During 1993, FTX recognized restructuring
expenses totaling $46.3 million (excluding $20.8 million
associated with its discontinued operations).  The charges
consisted of $22 million for personnel related costs, $11.8
million for excess office space and furniture and fixtures
resulting from staff reductions, $2.1 million for downsizing its
MIS structure, $8.8 million for IMC-Agrico formation costs and
$1.6 million of deferred charges relating to FTX's credit
facilities which were substantially revised.

     In connection with the restructuring project, FTX changed
its accounting systems and undertook a detailed review of its
accounting records and valuation of various assets and
liabilities.  As a result of this process, FTX recorded charges
totaling $48.8 million (excluding $16.3 million associated with
its discontinued operations), comprised of (a) $16.2 million of
production and delivery costs consisting of $9.9 million for
revised estimates of prior year costs and $6.3 million for
revised estimates of environmental liabilities, (b) $18.7 million
of depreciation and amortization consisting of $11.5 million for
estimated future abandonment and reclamation costs and $7.2
million for the write-down of miscellaneous properties, (c) $4.4
million of exploration expenses for the write-down of an unproved
oil and gas property and (d) $9.5 million of general and
administrative expenses consisting of $5.4 million to downsize
FTX's MIS structure and $4.1 million for the write-off of
miscellaneous assets.

Asset Sales/Recoverability.  During 1993, FTX sold a nonproducing
oil and gas property recognizing a gain of $69.1 million, and FRP
sold assets, primarily certain previously mined phosphate rock
acreage, recognizing a gain of $11.8 million.  FRP also sold its
remaining interests in producing geothermal properties for $63.5
million, consisting of $23 million in cash and $40.5 million of
interest-bearing notes, recognizing a $31 million charge to
expense and recording a $9 million charge for impairment of its
undeveloped geothermal properties.  In 1994, FRP received
prepayment of these notes.

     FTX charged $105 million to expense during 1993 for the
recoverability of certain assets, primarily FRP's Main Pass oil
($60 million) and non-Main Pass sulphur assets.

11.  SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED)

Proved and probable mineral reserves, including proved oil
reserves, follow:

                                        December 31,
                     --------------------------------------------------
                       1995      1994       1993      1992       1991
                     -------   -------    --------  --------   --------
                                         (In Thousands) 
Sulphur-long
 tons a               55,185    41,018      38,637    41,570     42,780
Phosphate
 rock-short tons b   186,375   206,661     215,156   208,655    206,183
Oil-barrels            6,638     7,279       9,962    13,861     18,496

a.   Main Pass reserves are subject to a 12.5 percent federal
royalty based on net mine revenues.  Culberson reserves totaled
15.4 million tons for 1995 and are subject to a 9 percent royalty
based on net mine revenues.

b.   For 1995-1993, represents FRP's share, based on its Capital
Interest ownership, of the IMC-Agrico reserves.  Contains an
average of 68 percent bone phosphate of lime.

12.  QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

                                             Net Income      Net Income Per
                                             Applicable       Common Share
                                Operating     To Common  ---------------------
                   Revenues       Income        Stock    Primary Fully Diluted
                  ----------    ----------    ---------- ------- -------------
                             (In Thousands, Except Per Share Amounts)
1995
  1st Quarter a   $  254,479    $   49,874    $   19,391 $   .85    $  .85
  2nd Quarter b      233,398        47,184       265,485   10.78      8.98
  3rd Quarter a,c    243,066        31,631        24,503     .86       .86
  4th Quarter a,d    264,914        54,191        81,162    2.86      2.86
                  ----------    ----------    ----------
                  $  995,857e   $  182,880    $  390,541   14.97     14.20
                  ==========    ==========    ==========

1994
  1st Quarter f   $  183,441    $   12,258    $   12,373  $  .53    $  .53 
  2nd Quarter f      186,946        20,073         4,634     .20       .20 
  3rd Quarter a      189,803        25,254         6,044     .26       .26 
  4th Quarter a      209,922        34,319        18,392     .80       .80 
                  ----------    ----------    ----------
                  $  770,112e   $   91,904    $   41,443    1.79      1.79
                  ==========    ==========    ==========

  a. Because FTX was not paid its proportionate share of FRP
distributions, additional minority interest charges to net income
were $5.5 million ($0.24 per share), $5.2 million ($0.18 per
share) and $4.1 million ($0.15 per share) in the first, third and
fourth quarters of 1995, respectively.  Similar charges of $7.1
million ($0.31 per share) and $10.1 million ($0.44 per share)
were recorded in the third and fourth quarters of 1994,
respectively.

b.   Net income includes a $33.5 million charge ($1.36 per share)
for the $4.375 Convertible Exchangeable Preferred Stock exchange
offer.

c.   Net income includes a $3.9 million charge ($0.14 per share)
for stock option costs caused by the rise in FTX's common stock
price.

d.   Net income includes a $1.8 million charge ($0.06 per share)
for stock option costs and an early retirement program, a $5.3
million gain ($0.19 per share) for the reversal of certain
insurance accruals no longer required and a $62.8 million gain
($2.21 per share) for the reversal of certain tax accruals no
longer required.

e.   No customers accounted for ten percent or more of total
revenues.  Export sales to Asia, Australia, Latin America and
Canada approximated 41 percent, 38 percent and 32 percent of
total revenues for 1995-1993, respectively.

f.   Net income includes a $5.5 million charge ($0.23 per share)
in the first quarter and a $3.6 million charge ($0.16 per share)
in the second quarter related to early extinguishment of debt.




     REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

TO THE STOCKHOLDERS AND BOARD OF DIRECTORS OF FREEPORT-McMoRan
INC.:

We have audited the accompanying balance sheets of Freeport-
McMoRan Inc. (the Company), a Delaware Corporation, and
consolidated subsidiaries as of December 31, 1995 and 1994, and
the related statements of operations, cash flow and stockholders'
equity for each of the three years in the period ended December
31, 1995.  These financial statements are the responsibility of
the Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audits.  We
did not audit the financial statements of IMC-Agrico Company (the
Joint Venture).  The Company's share of the Joint Venture
constitutes 44 percent and 32 percent of assets as of December
31, 1995 and 1994, and 80 percent, 85 percent and 37 percent of
the Company's total revenues for the years ended December 31,
1995, 1994 and 1993, respectively.  Those statements were audited
by other auditors whose reports have been furnished to us, and
our opinion, insofar as it relates to the amounts included for
the Company's interest in the Joint Venture, is based solely on
the reports of the other auditors.

     We conducted our audits in accordance with generally
accepted auditing standards.  Those standards require that we
plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements.  An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
We believe that our audits and the reports of other auditors
provide a reasonable basis for our opinion.

     In our opinion, based on our audits and the reports of other
auditors, the financial statements referred to above present
fairly, in all material respects, the financial position of
Freeport-McMoRan Inc. and consolidated subsidiaries as of
December 31, 1995 and 1994 and the results of its operations and
its cash flow for each of the three years in the period ended
December 31, 1995 in conformity with generally accepted
accounting principles.

     As discussed in Note 1 to the consolidated financial
statements, effective January 1, 1993, the Company changed its
method of accounting for periodic scheduled maintenance costs,
deferred charges and costs of management information systems.

                                             Arthur Andersen LLP

New Orleans, Louisiana,

  January 23, 1996




                       SHAREHOLDER INFORMATION


COMMON SHARES/REVERSE STOCK SPLIT.  Our common shares trade on the
New York Stock Exchange (NYSE) under the symbol "FTX."  The FTX
share price is reported daily in the financial press under
"FrptMc" in most listings of NYSE securities.  At yearend 1995
the number of holders of record of our common stock was 21,182.

     On October 20, 1995, FTX's common shareholders approved an
amendment to its certificate of incorporation effecting a one-
for-six reverse split of FTX common stock, reducing the par value
of FTX common stock and decreasing the number of authorized
shares of FTX common stock.

     Common share price ranges on the NYSE composite tape,
reflecting the one-for-six reverse stock split, during 1995 and
1994 were:

                                      1995                1994
                               ------------------  ------------------
                                 High      Low       High       Low
                               -------   -------    -------    -------
First Quarter                  $111.78   $102.00    $130.50    $112.50
Second Quarter                  111.78    101.28     118.50      97.50
Third Quarter                   145.50*    27.00*    120.00      96.78
Fourth Quarter                   41.13     33.00     119.28     100.50


* Share prices include periods before and after FTX's July 28,
1995 tax-free distribution of FCX Class B common stock, which had
a market value of $106.85 per FTX share.

RESTRUCTURING PLAN/COMMON SHARE DIVIDENDS.  On July 5, 1995, FTX
announced that its Board of Directors declared a special tax-free
dividend whereby FTX would distribute its ownership in FCX to FTX
common shareholders.  FTX distributed 4.210404 shares of FCX
Class B common stock for each FTX common share of record on July
17, 1995.  This special tax-free dividend completed FTX's
restructuring announced in 1994.

     Cash and property dividends paid during 1995 and 1994, which
reflect the one-for-six reverse stock split, were:

                              1995
---------------------------------------------------------------
Dividend Per FTX Share          Record Date        Payment Date
-----------------------         -------------      -------------
0.075 FCX.A share *             Feb. 15, 1995      Mar.  1, 1995
4.210404 FCX shares *           Jul. 17, 1995      Jul. 28, 1995
$0.09                           Aug. 15, 1995      Sep.  1, 1995
$0.09                           Nov. 15, 1995      Dec.  1, 1995

                              1994
---------------------------------------------------------------
Dividend Per FTX Share          Record Date        Payment Date
-----------------------         -------------      -------------
$1.875                          Feb. 15, 1994      Mar. 1, 1994
0.075 FCX.A share *             May 16, 1994       Jun. 1, 1994
0.6 MOXY share *                May 20, 1994       May 20, 1994
0.075 FCX.A share *             Aug. 15, 1994      Sep. 1, 1994
0.075 FCX.A share *             Nov. 15, 1994      Dec. 1, 1994

* Below is a summary of the cost basis of shares for the property
dividends.


                                          Per Share Amount
                                           for Calculation
                                           of Cash in Lieu
                              Cost Basis   of a Fractional
   Record Date       Share    Per Share         Share
---------------     -------   -----------  ----------------
Feb. 15, 1995       FCX.A        $20.9375          $20.8125
Jul. 17, 1995       FCX                **           24.1250
May 16, 1994        FCX.A         24.1875           24.4375
May 20, 1994        MOXY           4.5000            5.4933
Aug. 15, 1994       FCX.A         22.7500           21.0625
Nov. 15, 1994       FCX.A         20.0625           22.0625

** The cost basis for each share of FTX stock should be reduced
to 21 percent of its former amount and the remaining 79 percent
of the FTX cost basis should be established as the cost basis for
the FCX shares and cash in lieu of a fractional share.