Israel Chemicals Ltd. is negotiating to form a joint venture for mining and selling phosphates to emerging markets. The company said the potential deal would involve the investment of hundreds of millions of dollars.
ICL said that the deal involved investment in a mine and the construction of downstream fertilizer plants. The company has been looking to expand its fertilizer business abroad specifically in the phosphate field as the Israeli government has so far refused to approve mining operations at the Sde Barir field in the northern Negev region. Israel’s Health Minister Yael German has expressed opposition to mining in the area due to its proximity to the town of Arad and the potential health implications for residents of the region.
Last year ICL signed a memorandum of understanding with Vietnam’s Duc Giang to build and expand a phosphate mine in Vietnam. The agreement calls for the project to include a phosphate mine as well as factories to process the material in Bao Thang province in Vietnam. The production facilities would be for a variety of downstream products. ICL is Israel’s largest chemical manufacturer focusing on potash, phosphates, fertilizers and industrial chemicals.
Duc Giang is a producer of thermal acid and is in the process of expanding its fertilizer activities and produce phosphoric acid for the fertilizer and food industries.
The announcement by ICL was made in conjunction with plans to go public on the New York Stock Exchange later this month. The Israel Corp, ICL’s parent company said it planned to sell 62 million shares in ICL for $522.4 million on Sept. 24. ICL currently trades only on the Tel Aviv Stock Exchange. Morgan Stanley and Barclays are the lead underwriters for the ICL offering.