Raw Materials & Material Extraction
ICL is built around three main minerals – Potash, Bromine and Phosphate, which are the main raw materials for most of the downstream products along the integrated value chains that we developed throughout the years. ICL is granted concessions and licenses to extract raw materials from locations in Israel, the UK, Spain and China. These provide a consistent, reliable supply of raw materials which are manufactured into products that fulfill the global needs in the agricultural, food and engineered materials markets.
ICL is researching and testing the possibilities of using wastes and byproducts from outside the organization as raw materials. These include using waste products as part of its Phosphate production process. This is a part of ICL’s path towards a circular economy.
ICL produces a significant portion of its primary raw materials. Some primary raw materials acquired from external sources include Sulfur and Ammonia.
The principal raw materials used by ICL Industrial Products (IP) for the manufacture of the end products are Bromine, Chlorine, Phosphorus and Magnesia. Bromine is found naturally in seawater, underground brine deposits and other water reservoirs, such as the Dead Sea. The Dead Sea is the world’s premier source of bromine, with concentration levels significantly higher than in regular seawater, and it accounts for almost half of the global supply (together with the production on the Jordanian side of the Dead Sea). ICL IP uses most of the Bromine produced for self-production of bromine compounds at its production sites in Israel, the Netherlands and China.
ICLs Phosphate Solutions Division is based on a phosphate value chain which uses phosphate rock and fertilizer-grade phosphoric acid to produce specialty products. The Phosphate rock is mined and processed from open pit mines, three of which are located in Israel and the fourth is located in Yunnan province in China. The primary raw materials acquired from external sources are mainly Sulphur, Ammonia different grades of pure Phosphoric Acid and Caustic Soda.
ICL’s Innovative Ag Solutions Segment was established on the foundations of ICL’s speciality fertilizers business. Primary raw materials acquired from external sources by ICL Speciality Fertilizers are KNO3, SOP, Ammonia, NPK granules, Urea, KOH and coating materials.
Royalties
In consideration of the concessions, ICL pays royalties and taxes to the governments of Israel, China, UK and Spain. Below are the royalty amounts paid in 2017, 2018 and 2019 ($ millions):
| Israel | Out of Israel | Total | |
|---|---|---|---|
| 2019 | 82+20* | 3 | 105 |
| 2018 | 71+62* | 4 | 137 |
| 2017 | 64+68* | 4 | 136 |
*In 2019, 2018 and 2017, the Company paid additional amounts in respect of royalties in Israel relating to prior periods.
