Itafos Inc. entered into an amendment to its sulfuric acid supply contract with Rio Tinto, continuing its long-term relationship with its U.S. 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 May 1, 2026 through December 31, 2029.
The parties have agreed to an adjusted sulfuric acid price until December 31, 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 December 31, 2029, it is expected that Itafos will continue to purchase sulfuric acid from Rio Tinto.
