Ashalim Creek (Nahal Ashalim) Incident

In June 2020, following a multi-year cleanup and monitoring effort in which ICL took a leading role, the Ashlim Creek was declared safe for hiking and re-opened to the public by the Israeli authorities. \

On June 30, 2017, ICL Rotem, a subsidiary of ICL located in Israel’s Negev region, experienced a significant environmental incident in which approximately 100,000 cubic meters of acidic phosphogypsum liquid were released into the surrounding environment as a result of a breach in a detainment pond. The liquid entered the nearby Ashalim Creek, a dry riverbed that leads from the vicinity of the Rotem industrial zone to the Dead Sea. Ashalim Creek flows through an area designated as a nature reserve and managed by the Israel Nature and Parks Authority (INPA). The incident has since been under investigation, led by Israel’s Ministry of Environmental Protection. In May 2023, a settlement agreement, between ICL Rotem, INPA and all class actions applicants, was approved by the court, concluding the proceedings between the parties.

The company took immediate action to stop the flow out of the breached pond, in full coordination with the Ministry and the INPA. ICL worked closely with the various authorities in the region, primarily under the direct instructions and supervision of the INPA. Coordination and continued follow up of restoration activities are being conducted by ‘HaMaarag’ (Israel’s National Ecosystem Assessment program).

The initial focus was on providing immediate relief to reduce the environmental impact on wildlife and vegetation along the path of the flow. Activities included a massive operation to pump out water holes along the dry riverbed where liquids accumulated. The liquid was then transported back to ICL Rotem for treatment.

In parallel, ICL cooperated with the ongoing investigation.

Rehabilitation efforts at the Ashalim riverbed- Helicopters used to position the needed pumping equipment within the creek canyon

Rehabilitation Efforts Continue– the pumping process within the creek

Concurrently, arrangements were made to irrigate impacted trees and transport potable water, as well as to create alternative drinking areas for the wildlife population in the region. In addition, various monitoring schemes were established by the INPA to monitor soil, water, and vegetation.

During 2020, ICL collected the water pipes that were brought to the creek for watering the trees. Now that the creek is recovering, there is no longer a need for these water pipes.

Installing Drip Irrigation Systems for the Acacia Trees

Drinking spots for wildlifed

Irrigation fo the Acacia Trees

Mitigation efforts were also taken at the lower reaches of Ashalim Creek near the Dead Sea where the flow collected in the Ashalim reservoir, as well as in an abandoned ICL quarry that has since been developed into a small saltwater wetland. ICL conducted a range of detainment, diversion, monitoring and neutralization operations in these lower reaches of the Ashalim Creek. While some damage to the wetland was observed in the immediate months following the incident, most of the vegetation has recovered.

detainment efforts of the spill

spill flowing into the saltwater wetland

salt wetland

Following the incident, the INPA closed the nature reserve to the public. However, during the 2018 rainy season, there were two major rain events that caused the Ashalim Creek to flow vigorously. Measurements, taken following that rainy season by the INPA, indicated a significant improvement in environmental parameters. The Ami-Az trail above the canyon was also opened to the public in 2018. During the 2019 rainy season the Creek flowed vigorously with rainfall on another three occasions. Findings of the monitoring program (operated by the Maarag and the INPA) indicated that pH levels in the water cisterns returned to normal levels (see below). Furthermore, the Acacia trees along the creek were found to be uninfluenced, and improvement of chemical and biological parameters have continued. Nonetheless, indications of the incident’s impact remained present.

In 2019, per the requirement of the Ministry of Environmental Protection, ICL conducted a risk assessment process along the creek. The assessment was meant to assure that the creek hiking trails can be reopened and do not pose risks to the returning hikers’ health, pending approval of reopening by the necessary authorities. The process was conducted by leading experts from Israel and abroad, utilizing advanced methodologies.

The risk assessment was completed in late 2019 and the results were presented to the authorities. The creek was found to be safe for reopening to the public and was reopened in June 2020.

The Creek was found to be safe for re-opening to the public, and was re-opened to the general public in June 2020.

As part of the reopening, ICL committed to the continued monitoring of environmental parameters of the creek’s cisterns, and formulated a monitoring plan with the relevant authorities.

In 2020, a mediation process was initiated between INPA, Ministry of Environmental Protection and private citizens and ICL, pursuant to class actions that were filed against the Company. The mediation process was completed 3 years after its inception and a settlement agreement was signed and approved by the court in May 2023. According to the settlement agreement, Rotem will pay the public and the class groups, NIS 115 million (approximately $33.5 million), including legal and other expenses, as compensation for, among other things, the restoration of the Ashalim Creek and its surroundings. As part of the agreement, the continuation of the monitoring activities and the restoration of the stream will be carried out by INPA.

For additional information regarding the settlement agreement please see Note 18 to ICL 2022 Annual Report.

For more information on the restoration of the Ashalim creek click here for the INPA website (Hebrew only).