Itafos Inc. has announced that it has entered into an amendment to its sulfuric acid supply contract (the ‘Sulfuric Acid Supply Agreement’) with Rio Tinto, continuing its long-term relationship with its US copper producer Kennecott, a key supplier of a primary raw material required to produce its phosphate products manufactured at the Company’s Conda, Idaho facility.
Pursuant to the amended Sulfuric Acid Supply Agreement, Itafos will continue to purchase sulfuric acid from the Kennecott mine in Utah. Under the amended agreement, the reference index price will change from the Vancouver Index to the Tampa Index from 1 May 2026 through 31 December 2029. To promote long-term value for both US farming and mining industries, the parties have agreed to an adjusted sulfuric acid price until 31 December 2029 to help address significant price volatility of sulfur over the last four years. Additional modifications to the Sulfuric Acid Supply Agreement around delivered volumes have been negotiated to provide greater flexibility for incremental supply (subject to availability). Conda has historically sourced approximately 60% of its sulfuric acid requirements from Rio Tinto, and it is expected that it will purchase similar volumes under the amended Sulfuric Acid Supply Agreement. After 31 December 2029, it is expected that Itafos will continue to purchase sulfuric acid from Rio Tinto.
David Delaney, Chief Executive Officer of Itafos, commented: “We are pleased to announce this amendment and thank the Rio Tinto team for further strengthening the relationship. The amended contract will allow us to maintain supply of a vital input to our production process while decreasing our exposure to volatility in commodity prices. Rio Tinto has been a reliable supplier to the Conda plant for over three decades, and we are pleased to continue this relationship on terms that are mutually beneficial to both parties.”
“This amended agreement reflects the strength of our long-standing partnership and our shared commitment to reliable supply for the US agriculture sector,” said Rio Tinto Kennecott Managing Director Nate Foster. “Through close collaboration, we are advancing solutions that strengthen domestic resiliency for American farmers while supporting the broader farming community to help keep crop yields strong and supply as consistent as possible.”