UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 30, 1998
FREEPORT-McMoRan SULPHUR INC.
(Exact name of registrant as specified in its charter)
Delaware 1-13617 72-1392855
(State of incorporation) (Commission (IRS Employer
File Number) Identification
Number)
1615 Poydras Street, New Orleans, Louisiana 70112
(Address of principal executive officers) (Zip Code)
(504) 582-4000
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Item 5. Other Events.
The following new release was made by Freeport-McMoRan Sulphur
Inc. on June 30,1998:
FREEPORT-McMoRan SULPHUR INC. ANNOUNCES DECISION
TO PERMANENTLY CLOSE ITS CULBERSON COUNTY, TEXAS SULPHUR MINE
NEW ORLEANS, LA., June 30, 1998 - Freeport-McMoRan Sulphur Inc.
(NYSE:FSC) announced today that it will permanently discontinue
sulphur production at its Culberson County, Texas mining
operation, which produced 872,000 long tons of sulphur during
1997 and currently produces at an annual rate of 600,000 long
tons. Production at the mine is expected to decline over the
coming three-month period and to cease in September 1998. FSC's
second-quarter 1998 financial results will include non-cash
after-tax charges totaling approximately $3.9 million resulting
from the mine closure.
Robert M. Wohleber, President and Chief Executive Officer of
FSC said, "Since its inception in 1969, the Culberson mine has
produced 45 million long tons of sulphur. This action to close
our Culberson mine is being taken because sulphur prices have
been driven down to a level at which it is no longer economically
feasible to operate the mine. These adverse market conditions
are the direct result of the importation of recovered sulphur,
primarily from Canada, which is being dumped into the U.S.
market. FSC will continue to meet its sulphur customers'
requirements from production at our remaining mine, Main Pass
299, located offshore Louisiana in the Gulf of Mexico, which is
commercially viable in the current adverse market environment,
and from third party purchases of recovered sulphur from oil and
gas operations. Near-term commitments will be fulfilled
primarily by liquefying solid inventories held at FSC's Port
Sulphur, Louisiana terminal."
Additionally, Mr. Wohleber said, "A key element of FSC's
growth strategy is to expand its sulphur services business which
involves the purchase, transportation, terminaling and sale of
sulphur. Substantially all of the transportation and terminaling
assets used in connection with the Culberson production will be
re-deployed in our sulphur services business. We are confident
these actions will strengthen FSC financially under current
market conditions, which will further enhance FSC's ability to
operate profitably and meet the needs of its customers."
FSC is engaged in the mining, purchasing, transporting,
terminaling and marketing of sulphur, and the production of
related oil reserves.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
FREEPORT-McMoRan SULPHUR INC.
By: \s\ C. Donald Whitmire, Jr.
---------------------------
C. Donald Whitmire, Jr.
Vice President and
Controller -
Financial Reporting
Date: July 2, 1998
