Itafos idles it plant in Brazil
The Canadian company Itafos announced that it would stop the operation of Itafos Arraias (Brazil) and suspend the implementation of the previously announced repurpose plan which was aimed at optimizing finished fertilizer production. This decision is driven by the need to optimize capital in the face of downward trend in world prices for mineral fertilizers.
“While we have demonstrated the viability of the repurpose plan at Itafos Arraias, including producing and commercializing new premium products, market prices have continued to decline and have currently reached unsustainable levels. As a result of these external factors, we have decided to idle Itafos Arraias to manage the cycle, while we evaluate strategic options for the business,” said Dr. Mhamed Ibnabdeljalil, interim CEO of Itafos.
To enable the repurpose plan Itafos entered into a multi-year phosphate rock agreement to purchase higher grade phosphate rock from the Moroccan OCP Group for Itafos Arraias. As of today, the company has idled Itafos Arraias’ existing mines, tailings dam and the beneficiation plant.
Itafos Arraias’ production and sales capacity is approximately 500 thousand tons of mineral fertilizers per year, mainly phosphate ones.