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North America

19 May 2026

Itafos, Rio Tinto tighten sulphuric acid deal for US ag

Written by Natalie Noor-Drugan

Itafos Inc., a phosphate and specialty fertiliser producer listed in Canada and the US, has signed an amendment to its sulphuric acid supply agreement with Rio Tinto’s Kennecott copper business. The amended deal locks in a new pricing basis and more flexible volumes to support US phosphate production at Itafos’ Conda, Idaho plant through 2029, strengthening a relationship that has underpinned unit for more than 30 years.

Under the amended deal, the reference index price used in the contract shifts from the Vancouver index to the Tampa index for the period from 1 May 2026 to 31 December 2029. Over the same period, the parties have agreed an adjusted sulphuric acid price aimed at smoothing out the impact of the sharp sulphur price volatility seen over the last four years. The contract changes are framed as a way to promote long-term value for both the US farming and mining industries by stabilising a critical raw material for domestic phosphate production.

The companies have also tweaked volume provisions to make delivered tonnes more flexible. Additional options for incremental supply have been negotiated, subject to availability, which Itafos says will give Conda more room to respond to market needs. Historically, the Conda facility has sourced about 60% of its sulphuric acid requirements from Rio Tinto, and Itafos expects to maintain a similar share under the amended agreement. Both sides signal that purchases from Kennecott are expected to continue beyond 2029, even though the current pricing changes run only to the end of that year.

Itafos CEO David Delaney said the amendment will help the company “maintain supply of a vital input” while reducing exposure to commodity price swings. He thanked Rio Tinto for “further strengthening the relationship” and highlighted the importance of having a reliable sulphuric acid supplier for Conda’s production plans. Rio Tinto Kennecott managing director Nate Foster said the revised contract reflects the strength of the long-standing partnership and a shared commitment to reliable supply for the US agriculture sector, arguing that the arrangement supports domestic resilience and helps keep crop yields and supply consistent for American farmers.

Itafos positions itself as a phosphate and specialty fertiliser company with a portfolio spanning three continents. In the US, Conda is a vertically integrated phosphate fertiliser business in Idaho with capacity to produce about 550,000 tonnes per year of MAP, MAP+, superphosphoric acid and merchant‑grade phosphoric acid, and roughly 27,000 tonnes per year of hydrofluorosilicic acid. In Brazil, the Arraias complex in Tocantins is a vertically integrated phosphate fertiliser business targeting output of SSP, PAPR and DAPR after a proposed beneficiation restart, alongside around 40,000 tonnes per year of excess sulphuric acid from a 220,000 tonne per year gross capacity. The company also controls the Farim high‑grade phosphate mine project in Guinea‑Bissau and the Santana integrated high‑grade phosphate mine and fertiliser plant project in Pará, Brazil.

Natalie Noor-Drugan

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