Itafos is demonstrating the benefits of integrated phosphate production in a strained market
Founded in 1999 to develop an integrated phosphate mining and fertilizer business in Brazil, Itafos was entirely reshaped when it acquired the Conda mine and manufacturing plant in 2018. Since then, Conda has become the company’s core operation, and Itafos has deployed more than $250 million to extend the life of the asset and optimize the plant. Alongside Conda, the organization also operates the Arraias phosphate facility in Tocantins, Brazil, as well as two undeveloped projects: Farim, a high-grade phosphate mine project located in Guinea-Bissau; and Santana, a vertically integrated high-grade phosphate mine and fertilizer plant project located in Pará, Brazil.
CEO David Delaney elaborates on the operations and evolution behind the success of Itafos. “At Conda, we produce phosphate fertilizer across two primary products: monoammonium phosphate (MAP), a dry fertilizer that is used by farmers across North America, and superphosphoric acid (SPA), a liquid fertilizer that is primarily used as a ‘starter’ that is applied concurrently with planting, mostly for corn,” he begins. “Conda also manufactures MAP with micronutrients (MAP+), merchant grade phosphoric acid (MGA), and hydrofluoric acid (HF). In total, Conda produces about 550,000 short tons of fertilizer products per year, with MAP representing about 70 percent and SPA representing about 25 percent of the total annual production.
“At our Arraias plant in Brazil, we manufacture sulfuric acid for sales to domestic customers, as well as a variety of lower grade phosphate fertilizers that meet the needs of the local farmers. We produce direct application phosphate rock (DAPR), which is essentially crushed phosphate rock; partially acidulated phosphate rock (PAPR), which provides a higher phosphate concentration and some sulfur; and a granulated version of PAPR (G-PAPR) that allows for a more uniform application. We are currently upgrading our plant with an aim to produce single superphosphate (SSP), which is in high demand in Brazil. When the upgrades are complete, we expect to be able to produce around 170,000 tons of SSP at Arraias on an annual basis.”
Itafos sources all the phosphate ore for its fertilizers from mines it leases. “The current H1/NDR mine was permitted in 2023 and extended the mine life at Conda to 2037, which we believe is a conservative estimate,” David says. “The H1/NDR mines are located about 15 miles away from the Conda plant and cover about 1000 acres across two federal leases and one state phosphate lease. Ore from the mines is shipped to the production facility via rail lines. In a typical year, we will mine and process about two million tons of phosphate ore from our mines at the plant.”
However, securing the permit for the H1/NDR mine was far from routine, as the previous site, Rasmussen Valley, was running out of ore. “There was some risk that we would have to shut in operations at Conda if we could not secure the permit for the new mine,” David reflects. “Working with local, state, and federal officials, we secured the new permit, began development of the new mines, and kept the production plant working seamlessly throughout. It is a testament to the hard work and resourcefulness of our team, and someone looking at our operating results and financial statements would not be able to tell just how precarious things got as the deadlines approached.
“Since 2024, we have spent over $126 million to develop the new mines, adding a new tipple and loadout facility, creating new haul roads, and optimizing our railcar inventory. Mechanical completion was achieved in 2025, and we sent the first ore from the new mine to the Conda plant late last year. Through this process, we have maintained utilization rates at the plant at or above 100 percent and funded all the expansion capital through operating cash flows, all while maintaining industry-leading safety metrics.”
On the topic of safety, David details how Itafos embeds its principles in the company’s culture. “We’re focused on getting everyone who works here, whether they are full-time employees or contractors, home safely every day,” he states. “We’re constantly evaluating our practices and systems, learning from times when things don’t go to plan. We empower people to stop work if they see anything of concern, and we don’t restart until the question has been answered or the problem has been solved.”
Similarly, Itafos adopts an employee-centric mentality when it comes to sustainability. “Our employees and contractors all live where they work and they live there for a reason: Idaho is beautiful and the local environment has a tremendous amount to offer to the folks living there,” David highlights. “Our work is inherently intrusive to the landscape, so we want to make sure that when we are done, we have made as little impact on the local environment as possible and that we do our best to restore things to the way they were before we got there.
“We are currently working on two major mine reclamation projects at Lanes Creek and Rasmussen Valley and are constantly working to ensure that the groundwater is safe, wildlife is protected, and our work is monitored well into the future. Our employees will be the first ones to recognize if there are any issues as this is where they live. The ownership they have over the business is demonstrated by their commitment to making sure their local environment is well maintained, and we encourage them to step up with new ideas, processes, and policies if they see a way to make things even better.”
Despite the company’s continued progress, current market conditions have tested the entire industry. Input costs, especially for sulfur, were on the rise before the war in Iran started, but the disruption to global supply chains has only made things worse. High sulfur prices and limited availability have forced some of the world’s largest producers to restrict operating rates, but Itafos has avoided that fate through long-standing supplier relationships. The company sources most of its sulfuric acid from Rio Tinto, for instance, under a contract that has been in effect in various forms for about 30 years.
“In May [2026], we adjusted our supply contract with Rio Tinto to insulate us from the extreme pricing that has impacted the industry, and in return, we granted price protection on the downside,” David explains. “The revised terms have been instrumental in allowing us to keep Conda running at full rates, which has helped our operating margins and enabled us to continue to supply fertilizer to American farmers.”
With changing market conditions characterizing the first half of 2026, Itafos is looking forward to maintaining its industry-leading operating rates at Conda for the rest of the year. “I am excited about where the company is positioned and how we can make a positive impact on the industry around the globe,” David shares. “Over the next five years, I anticipate that Conda will still be operating at full capacity and that we’ll be well on the way to securing the permit for our next mine. Idaho has a tremendous phosphate resource base, and we think there are ample reserves to keep us operating throughout the remainder of the century.
“I see Arraias producing single superphosphate for the important Brazilian market in the near future and continuing to add value to local farmers by delivering products that meet their unique needs. I believe that Farim has the potential to grow significantly over the next three to five years. The reserves there are world class, and their development can help alleviate long-term global supply concerns while helping to grow the economy and infrastructure of Guinea-Bissau.”
