All Posts from July 5, 2017

Israeli government gives green light to Haifa imports

The Israeli government decided on July 3 to permit Haifa Chemicals to receive ammonia via a ship off of Haifa directly to the company’s plant in the city. The decision is seen as a short-term solution for the problem of ammonia supplies to Haifa Chemicals. Haifa Chemicals would be supplied by a marine pipeline directly to its production plant in Haifa. Environmental groups have criticized the decision saying that unlike the storage tank the vessel off of Haifa port has absolutely no protection.

The government also decided on a long-term solutions whereby a relatively small ammonia plant would be built by a private company in southern Israel to supply all other users of ammonia.

Israel investigates ICL leak

Israel’s Environmental Protection Ministry has opened a criminal investigation into the polluting of a dry river bed in southern Israel by Israel Chemicals subsidiary Rotem Amfert.  The investigation will include the questioning of senior Rotem Amfert and ICL officials following the incident on June 30.

ICL said on Monday that it is still too early to assess the damage caused to the company or the environment by the leakage and the partial collapse of a dike of an evaporation pool at its Rotem Amfert fertilizer plant at Mishor Rotem.  Large amounts of highly acidic wastewater from the fertilizer production process were released following the partial collapse on Friday. ICL said that in the meantime it had partially ceased production at the facility which accounts for less than half of the phosphoric acid production at the Rotem Amfert facility.

Israel’s Environmental Protection Ministry estimated that as much as 100,000 cubic meters of water spilled into a dry river bed that leads to the Dead Sea causing “severe ecological damage.”  The phosphogypsum water that accumulates in the pool is a byproduct of the phosphate production process at the plant. The ministry ordered the company to stop using all three evaporation pools at the production plant at Mishor Rotem until a full assessment could be conducted.

The ministry said that the “green police” unit in the ministry would conduct the investigation and determine whether the evaporation pools were properly operated. This is the first time that such an extensive leakage has occurred at an industrial facility in Israel.

ICL said in its statement that “it is currently unable to fully assess the ramifications of the incident that occurred at the facility, including its environmental and financial implications, nor the company’s exposure to any enforcement proceedings that may arise as a result of the event.” The statement added that ICL requested permission to temporarily use an alternative pool and is continuing its efforts, with the help of outside experts, to find solutions for the continued operation of the plant and the short and long term restoration of the pools in coordination of with the authorities.

Indian tax lowered on fertilizers

Just as the goods and services tax in India was to take effect July 1, the government dropped the tax on fertilizers from 12 percent to 5 percent, bowing to pressure from the fertilizer ministry and fertilizer industry. The government also announced it would review also lowering the tax on phosphoric acid and ammonia from the new 18 percent rate under the GST.

The GST caused a great deal of confusion in the industry, including cutting back on import demand for phosphates and urea.

The fertilizer industry argued the current state taxes on fertilizers range from zero to 6 percent. The removal of those taxes and the imposition of the new GST at 12 percent, the industry and fertilizer ministry argued, put an undue burden on farmers.

The GST was designed to supplant a variety of different regional and statewide taxes on goods and services with one national tax.