Iron sulfide is a chemical compound (different from a mixture of Iron and Sulfur, show by its different physical and chemical properties). It is made of iron and sulfide ions.It has iron in its +2 oxidation state. It is found in the ground as the mineral pyrite.It is shiny like a metal, but it does not conduct electricity. It can make sparks when it is powdered (ground finely).t is made of iron and sulfide ions. It has iron in its +2 oxidation state. It is found in the ground as the mineral pyrite. It is shiny like a metal, but it does not conduct electricity.