ICL Rotem | Israel

For over 60 years ICL’s subsidiary, ICL Rotem, has been surface mining phosphate in the Negev Desert. While mining in the Negev requires conventional open pit or quarrying methods, ICL Rotem is careful to minimize its impact by using responsible planning to reclaim depleted mine blocks during mining operations. \

PRODUCTS & RAW MATERIALS

kt = THOUSANDS OF TONNES

PHOSPHATE ROCK

2,170 kt

FERTILIZERS

1,044 kt

GREEN PHOSPHORIC ACID

508 kt

WHITE PHOSPHORIC ACID

176 kt

SPECIALTY FERTILIZERS

95 kt

Phosphorus is one of the essential minerals for human health.

ICL’s subsidiary, ICL Rotem, mines phosphate and processes it in Rotem and Zafir (Oron-Zin) in the Negev Desert. The phosphate rock is processed into fertilizers (phosphorus is a vital plant nutrient), as well as numerous other products used by the food, cosmetics, dental products, detergents, and light emitting diodes (LED) industries, among others. Phosphorus is important for both plants and animals. It helps with the formation of bones and teeth, and for plants it is important in photosynthesis, cell division and development of new tissue.

2 Mining Sites

3 Beneficiation Plants

12 Production Plants

1,200 Direct Employees

Developing Circular Economy Initiatives at ICL Rotem

While ICL Rotem’s core activity is producing phosphate-based products from phosphate rock, ICL has taken upon itself to reuse resources, byproducts, and waste streams for new products.

Mining

ICL Rotem mines phosphate rock from phosphate deposits in the Negev desert in accordance with two mining concessions from the State of Israel which were valid until the end of 2021. In December 2021, the Ministry of Energy granted ICL Rotem an extension to a unified concession (which includes all Rotem’s mining fields) for an additional three years, until the end of 2024. In addition, ICL Rotem has two lease agreements in effect until 2024 and 2041, and an additional lease agreement for the Oron plant.

ICL’s existing phosphate mines in the Negev desert hold limited reserves of phosphate rock that is currently used for phosphoric acid production. ICL is therefore promoting mining activities in the Barir Field to enable the continuation of its mining activities, following the depletion of existing reserves.

Barir Field (Sde Barir)

ICL’s subsidiary, ICL Rotem, has been surface mining phosphate at Rotem and Zafir (Oron- Zin) in the Negev Desert for over sixty years. Mining in the Negev utilizes conventional open pit or quarrying methods. ICL Rotem is careful to minimize impacts of its mining activities through responsible planning that allows for continuous reclamation of depleted mine blocks alongside mining operations.

Our existing phosphate mines in the Negev desert hold limited reserves of phosphate rock that are currently used for phosphoric acid production. The company is working since 2015, to promote a detailed National Outline Plan for mining phosphate in Barir Field, located in the southern part of the South Zohar deposit in the Negev Desert in Israel (the Plan).

During 2018 and 2019, several petitions were submitted to the Israeli High Court of Justice, seeking to revoke the approval of the Plan and address certain health issues they claimed arising from the Plan. In 2020, an inter-ministerial team comprising representatives from the Israeli Treasury, Health, Transportation, Environmental Protection, and Energy ministries reached an outline agreement regarding the examination of the health aspects associated with the Plan. Accordingly, the Israeli High Court of Justice dismissed all the petitions.

However, the former Minister of Environmental Protection, filed a personal petition demanding that the government hold discussions regarding the future of the phosphate industry in Israel, and halt any progress of the Plan until such discussions are held. Accordingly, it was determined to hold such discussion within 180 days (i.e., conclude the discussions by June 2022). However, the discussions have yet to take place, leaving the future of the phosphate industry in Israel uncertain.

The State of Israel has determined that the Barir field is the sole option for phosphate mining in Israel. The Company strongly supports conducting all necessary evaluations to assess potential health risks and mining operations, including completing an Environmental Impact Assessment (EIA), and is committed to doing the right thing. Unfortunately, despite the dismissal of all of the legal petitions against the Plan, the Plan is still on hold, which puts the Israeli phosphate industry, including the Rotem plants, in uncertainty.

Rotem site has been producing phosphate in the Negev for 70 years and currently employees about 1,100 direct and over 10,000 indirect employees, most of them from the Negev area. Rotem provides work for approximately 3,200 members of the Bedouin community and annually contributes about $1bn to the Israeli GDP (based on the 2020 BDO report on ICL’s economic contribution to Israel. For more information see Impact on Israel’s Economy).

For more information on the Barir field issue and related legal proceedings, see Note 18(b) – concessions, leases and permits, in ICL’s 2022 Annual Report.

The Campanian (Upper Cretaceous period) phosphate rock deposits in Israel are part of the Mediterranean phosphate belt extending from Turkey, through Jordan and Israel, and westward through Egypt, Tunisia, and Morocco. Mining in the Negev utilizes conventional open pit or quarrying methods, using drilling, and blasting where necessary, hydraulic excavators and rigid freight trucks or bulldozers with rippers for overburden removal and front-end loaders and trucks for mining phosphate. ICL is careful to minimize the impact of its mining activities through responsible planning that allows for continuous reclamation of depleted mine blocks, alongside ongoing mining operations.

Phosphate rock from the Rotem mine is transported by trucks to Mishor Rotem, where ICL Rotem operates plants to process sulphuric acid, green phosphoric acid, white phosphoric acid, superphosphate, granular fertilizer and MKP. In addition, it operates a gas combustion plant to produce electricity and steam, based on gas from the natural gas network (recently replacing oil shales). ICL also operates beneficiation plantswhich produce phosphate for white phosphoric acid. The remainder of the raw material is sold to other phosphoric acid and fertilizer producers.

Discontinuation of mining activity at Zin

The mining activity at Zin was discontinued in mid-2020, while the mine restoration at the site continues. Following the discontinuation of Zin mine, the remaining inventory of Phosphate rock was transported to Rotem for further processing.

In 2020, an application for a class action was filed against the company, according to which discharge, leakage, and seepage of wastewater from Rotem's Zin site allegedly caused various environmental hazards to the Zin stream, which resulted in damages. In November 2022, the parties signed a procedural arrangement to resort to a mediation process, in attempt to settle the dispute outside of court. For future information, see Note 18 to our 2022 annual report.

Land Rehabilitation and Restorations

ICL Rotem adheres to a long-term strategy for planning and managing its phosphate mining deposits in the Negev. This policy includes conducting comprehensive geological surveys, examining alternatives to mining, defining long-term goals for mining, and sustainable mining.

Ashalim Incident - Rehabilitation

In 2017 ICL Rotem 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 company took immediate action to stop the flow out of the breached pond, in full coordination with the Ministry of Environmental Protection and the Israel Nature and Parks Authority (INPA). Following a multi-year cleanup and monitoring effort in which ICL took a leading role, the Ashalim creek was declared safe for hikers and re-opened to the public by the Israeli authorities in June 2020. During 2017 and 2018, four applications for certification as class actions in relation with the incident were filed against Rotem and other defendants, including by the INPA. In May 2023, the Israeli court rendered it’s approval to a settlement agreement which was signed between Rotem, INPA and the other applicants in the aforesaid proceedings, thus concluding the proceedings between the parties. For more information see Ashalim Creek Incident and Note 18 to ICL 2022 Annual Report.

Sustainability Reporting Disclosures:

Disclosure: 301-1