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ICL extracts three main minerals – Potash, Bromine and Phosphate which are raw materials for most of the downstream products that are part of the integrated value chains it has developed over the years. ICL is granted concessions and licenses to extract raw materials from mines located in Israel, the UK, Spain and China. They provide a consistent, reliable supply of raw materials, which are manufactured into products that fulfill global needs in agricultural, food and engineered materials markets.
ICL has successfully passed a certification audit under UNE 22470 and 22480 standards which accredit the Company as a sustainable mining company. As a result, ICL is the first large-scale underground mining company of non-arid minerals in Spain and Europe certified in Sustainable Mining for all its activity.
In 2021, the Cabanasses ramp became operational, after about nine years of construction. It is a key part of ICL Iberia's industrial project, helping to make its activity safer, more efficient and sustainable from both an economic and environmental perspective.
The finalization of the ramp has already eliminated the circulation of hundreds of trucks which used to transport the extracted mineral to the Suria plant (now it's done through a series of conveyors belts), which help reduce our CO2 emissions and increase road safety. It has also immediately helped increase air circulation in the mine, thus improving working conditions and our employees' safety. In terms of production, it is helping to gradually increase the production levels, which are expected to reach one million tonnes per year.
Read MoreICL is researching and testing the possibilities of using waste and byproducts from both inside and outside the Company as raw material. This is a part of ICL’s path towards a circular economy.
For example, excess salt in ICL DS is being used in various circular economy projects in infrastructure and restoration. Another example was created during mapping and testing of various by-products, as ICL discovered that a by-product created as part of its magnesium production process is beneficial in a new market and it is now marketed and sold as a new product.
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ICL produces a significant portion of its primary raw materials.
The principal raw materials used by our Industrial Products segment for the manufacturing of its end products are bromine, chlorine, phosphorus and magnesia. The segment produces a significant portion of its raw materials through operations to extract Dead Sea minerals. Bromine is produced from the end brines (salt solutions) that are a by-product of the process of production of potash. The brine is pumped into ICL Industrial Products’ plant in Sdom, where bromine is produced in an oxidation process using chlorine and steam.
Chlorine is produced by electrolysis of sodium chloride and as a by-product of the metal magnesium production process of Dead Sea Magnesium Ltd. (“Dead Sea Magnesium”). The electrolysis facility and the magnesium plant are located next to the bromine production facility in Sdom. The sodium chloride used in the electrolysis process is also a by-product of the potash production in Sdom.
Industrial Products uses elemental bromine to manufacture bromine compounds at its facilities in Israel, the Netherlands and China. The remainder of the bromine is sold to third parties.
The Potash segment produces potash in Israel and Spain. Potash does not require additional chemical conversion to be used as a plant-nutrient fertilizer. Nevertheless, it can also serve as a raw material in the production of certain specialty fertilizers.
The other primary utilities used by us to support our potash production are natural gas, electricity, industrial water and neutralization materials.
The Phosphate Solutions segment produces most of the raw materials it uses to produce its commodities and specialties products.
The segment produces phosphate rock as the primary raw material for its backward integrated value chain, commencing from mining of phosphate rock, through production of green phosphoric acid and up to the production of phosphate-based fertilizers, purified phosphoric acid and specialty phosphates.
The primary raw materials acquired from external sources are, mainly, sulphur, ammonia, different grades of purified phosphoric acid, soda ash, caustic soda and potassium hydroxide.
ICL’s Innovative Ag Solutions segment develops, manufactures, markets and sells fertilizers that are based primarily on nitrogen, potash (potassium chloride) and phosphate. The primary raw materials acquired from external sources are mainly KNO3, SOP, ammonia, NPK granules, Urea, KOH, coating materials, micronutrients and biostimulants ingredients.
In addition, our specialty fertilizer business benefits from its backward integration to raw materials produced by the Company, such as KCl, MGA, GTSP and Polyhalite.
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 2019, 2020 and 2021 ($ millions):
| Israel | Out of Israel | Total | |
|---|---|---|---|
| 2021 | 75 | 3 | 78 |
| 2020 | 75 | 3 | 78 |
| 2019 | 82+20* | 3 | 85 |
*In 2019 and 2018, the Company paid additional amounts of $20 million and $62 million, respectively, regarding royalties in Israel relating to prior periods. For further information regarding royalties, see Note 18 to our Audited Financial Statements.
