Israel Chemicals Ltd. (TASE: ICL) CEO Stefan Borgas has ordered management of Amfert Rotem Negev to prepare a plan to close the phosphates unit, if the government decides not to allow mining at Sde Barir. It would be hard for the company to carry out this threat, however. Earlier today, Minister of Health Yael German said that she would oppose even a pilot project at Sde Barir because of the health hazard to Arad and local Bedouin. The decision is based on a report by Prof. Jonathan Samet.
Borgas has also instructed Amfert Negev to stop hiring new employees, and to stop investments and procurements of equipment, renovations of buildings and facilities, except for safety purposes or to protect the environment.
In response to German's announcement, Israel Chemicals said, "Prof. Samet concluded that the Sde Barir field has no significant effect on the health of local residents. Prof. Samet found that Sde Barir will increase illness in the area, and at worst, the increased illness would be a negligible 0.06%. Prof. Samet totally disproves the data the Ministry of Health has used to date, which indicate a 100-fold increase than found by Prof. Samet. Despite Samet's clear findings, and despite previous statements, the minister of health is not basing the ministry's decision on the report, and prefers to take a narrow and limited decision that is unbalanced and irresponsible with regard to the national and social interests of the State of Israel in general of the Negev in particular.
"Minister German is passing the buck to the government, which will have to take a balanced and responsible decision. If the Israeli government acts according to German's principles, all factories in cities will have to be closed, ban public transport and travel by car, prevent the IDF's move to the Negev, ban energy production and its use, and so on. A decision to ban mining at Sde Barir is tantamount to deciding to close Israel's phosphates industry costing the livelihoods of 9,000 families. It is a lethal blow to the Negev and its residents, and to the ability to maintain stable communities and society there. Israel Chemicals will be able to deal with such a decision be means of foreign alternatives. The Israeli government will now have to decide whether the Negev and its residents will be able to cope with such a decision."
The NGO To Live Without Mines, organized by residents of Arad, Kasaifeh, and al-Fur'a to oppose mining at Sde Barir, said, "We welcome the decision by the health minister and the Ministry of Health officials, headed by the director of Public Health Services, to stand on guard to protect the health of the residents of Arad and surrounding communities. Prof. Samet once again showed that the risk of mining in the area of Arad, Kasiafa, and el-Poraa is higher than the acceptable standard in the West and is therefore unacceptable."
Published by Globes [online], Israel business news - www.globes-online.com - on April 3, 2014
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