Israel Chemicals Ltd. (TASE: ICL) UK unit Cleveland Potash Ltd. has won a ₤15 million grant from a British government jobs growth fund for Teeside and the northeast. Cleveland Potash plans to use the grant to begin the world’s first commercial production of polyhalite, a complex mineral which can be crushed for use as an organic fertilizer.
A geologic survey found polyhalite reserves estimated at over a billion tons lying more than 1.5 kilometers offshore in the North Sea, and will require construction of a plant to process the mineral. The reserves lie beneath potash deposits that are already mined.
Cleveland Potash managing director Graham Clarke said, “We are pleased that our Government and our parent company, Israel Chemicals, recognize that polyhalite represents a truly unique opportunity and are supporting us fully. Polyhalite has the potential to make a positive impact on world agriculture while safeguarding the long-term future of the Boulby Mine and providing a much-needed boost to the local and regional economy."
ICL Fertilizers CEO Danny Chen said, "The large polyhalite reserves at our English mines indicate an important strategic development for ICL Fertilizers in Europe. Expansion of our mining operations in England will enable us to continue expansion our fertilizer business around the world, and reduce our dependence on a particular mine or production facility." He added, "Israel Chemicals will continue to review increasing investment in foreign subsidiaries that obtain funding from the local government."
Israel Chemicals' share price rose 0.5% by mid-afternoon to NIS 60.34, giving a market cap of NIS 76.25 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on April 12, 2011
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