Israel Chemicals Ltd. CEO Stefan Borgas has instructed the management of Rotem Amfert to prepare for the shutdown of the Rotem Amfert plant over the next five years. His instruction was given following a statement by Israel’s Health Minister Yael German that she was opposed to even a pilot plant for testing phosphate mining at the Sde Barir field near the town of Arad in southern Israel. The health minister said that after reading reports and comments by public health officials she concluded that even a pilot project would be wrong as it would give no assurances regarding full scale mining operations.
ICL has warned in the past that without the Sde Barir field the company would have to close down its phosphate and fertilizer operations in Israel for lack of rock supplies. Borgas also instructed Rotem Amfert’s management to cease taking on any new workers, purchase of equipment and a halt to renovations of buildings and equipment. The shutdown of Rotem Amfert would entail the firing of 1,200 workers.
Meanwhile the strike by Rotem Amfert workers over a planned reorganization plan and the firing of 127 workers by ICL is continuing contacts between the union and management resumed on Tuesday. However, the latest instruction by Borgas is likely to further complicate the labor situation at the subsidiary as well as at ICL.
Speaking earlier this week at a conference Borgas said ICL would invest 4,500 to $600 million in a new mine at Sde Barir if the government approved mining operations there.