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): September 11, 1996
Freeport-McMoRan Copper & Gold Inc.
Delaware 1-9916 74-2480931
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation or organization) File Number) Identification Number)
1615 Poydras Street
New Orleans, Louisiana 70112
Registrant's telephone number, including area code: (504) 582-4000
Item 5. Other events.
On September 11, 1996, Freeport-McMoRan Copper & Gold
Inc. ("FCX") notified the Overseas Private Investment
Corporation ("OPIC"), the Multilateral Investment
Guarantee Agency, and certain other insurers that it has
elected to terminate all of its political risk
insurance. The terminations of individual policies will
be effective at various times through the end of 1996.
The policies were acquired in 1990 and 1991 in
connection with the early expansion of the Grasberg mine
in Indonesia, and were designed primarily to cover
certain breach of contract risks. FCX's termination of
the insurance was a business decision made after a
review of the relative costs and benefits of the
insurance to FCX and its stockholders. Based on that
review, FCX concluded that the potential benefits of
such insurance, which provided a relatively small amount
of coverage in relation to the value of FCX's Indonesian
assets, no longer justify the cost in view of the
maturity of FCX's mining project in Indonesia, the
Indonesian Government's support of the project, and the
Government's record of economic stability and growth
over the last thirty years. Maintenance of this
insurance has not been required by FCX's lenders.
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 Copper & Gold Inc.
By: /s/ Richard C. Adkerson
---------------------------
Richard C. Adkerson
Executive Vice President
and Chief Financial Officer
Date: September 23, 1996
