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Itafos signs phosphate rock supply agreement with OCP Group

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World Fertilizer,

Itafos has provided an update to the repurpose plan at Itafos Arraias and announced that it has signed a multi-year phosphate rock supply agreement with the OCP Group.

The repurpose plan, which is aimed at optimising finished fertilizer production with a multi-product portfolio of higher grade SSP, micronutrient SSP and value added premium PK compound products, is intended to significantly enhance Itafos Arraias’ competitive positioning and profitability while reducing its operational and environmental risk profile. To enable the repurpose plan, the company intends to procure higher grade phosphate rock from third parties and, once operational, from Itafos Farim. Consistent with its strategy, the company has today reached agreement to procure higher grade phosphate rock from the OCP Group.

“Signing a phosphate rock supply agreement with the OCP Group represents a key milestone in the implementation of the repurpose plan by securing quality phosphate rock from a leading global supplier,” said Dr. Mhamed Ibnabdeljalil, CEO of Itafos.

In addition, the company has been advancing other aspects of the repurpose plan, including activities related to third party phosphate rock logistics, site preparation and product portfolio transition. Third party phosphate rock delivery is in progress, new equipment is being commissioned and approvals have been received to sell the new products. Also in connection with advancing implementation of the repurpose plan, the company has idled Itafos Arraias’ existing mines, tailings dam and the beneficiation plant. Notwithstanding, Itafos Arraias will maintain all licenses and permits in good standing and comply with existing regulations.

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