Israel Chemicals proposes limiting phosphate mining

The company proposes a commitment to stop work when the wind blows toward Arad.

Israel Chemicals Ltd. (TASE: ICL) plans to propose to the government and the Southern Regional Planning and Building Commission to allow it to mine phosphates at Sde Barir, near Arad, in exchange for a commitment to stop work when the wind blows toward the town and to use more water to reduce particle dust.

Last Thursday, Minister of Health Yael German announced that she opposed all mining at Sde Barir, including a pilot project, because of the health hazard to local residents. In response, Israel Chemicals threatened to close its phosphates division, Rotem Amfert Negev. Notwithstanding German's objections, the company plans to focus its efforts on the Southern Regional Planning and Building Commission, ministers, and MKs to create a lobby to allow the company to mine Sde Barir in the future.

Israel Chemicals executives believe that its proposal will guarantee the health of local residents on the basis of the company's commitment that the maximum added illness rate from mining is 0.06%, which it calls "negligible".

Tonight, Israel Chemicals executives are scheduled to meet Manufacturers Association of Israel president Zvika Oren to examine ways to cooperate against German's decision. In a statement the Manufacturers Association said, "We deeply regret the Health Minister's decision on Sde Barir. In the coming days, we will hold extensive consultancies to create a situation in which the district commission will recognize the importance of the many considerations in favor of keeping Rotem Amfert in business, including jobs and its contribution to the Negev's development. The opinion on which the ministry's decision is based is important and there is a place for it, but no one should allow any agency to have a veto that will result in the closing of the enterprise and the firing of thousands of workers in the periphery. The decision on keeping Rotem Amfert in business should be balanced, after reviewing all the relevant factors."

Published by Globes [online], Israel business news - www.globes-online.com - on April 6, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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