Israel Chemicals Ltd. (ICL) has reported that its wholly-owned subsidiary, Rotem Amfert Israel Ltd., and other defendants have settled all claims relating to a massive leak and partial collapse of a dyke in an phosphate evaporation pond at Rotem’s fertilizer plant in Mishor Rotem in southern Israel in 2017 (GM July 7, 2017).
The collapse caused extensive damage and contamination to the Ashalim Creek Bed and its surrounding area.
The mediation process was completed and a settlement agreement was signed between Rotem and the Israeli Nature and Parks Authority, as well as other applicants in the proceedings, ICL said in a Dec. 14 statement.
Under the settlement deal, Rotem will pay the public and the class groups NIS115 million (approximately $33.5 million), including the legal and other expenses, “as compensation for, among other things, the restoration of the Ashalim River and its surroundings,” the Israeli company reported.
The settlement agreement will be submitted to the Israeli court, and pending its approval, will conclude the proceeding between the parties, ICL said.
ICL does not expect the projected net financial impact of the settlement agreement on its financial results to be material.
Israel’s Nature and Parks Authority filed its suits against ICL, Rotem Amfert Israel, and certain senior ICL officials in the summer of 2017 and in 2018 (GM May 11, 2018: Aug. 25, 2017). In its 2018 suit, the authority was reported to be demanding $120 million in damages.