ICL said it would write off $170 million and accuses the Ethiopian government of not providing infrastructures and a regulatory framework.
Israel Chemicals (TASE: ICL: NYSE: ICL) has notified the TASE and NYSE that it is closing down its potash operations in Ethiopia. ICL said it will write off $170 million, which is the net book value of the project.
In March, ICL acquired the full stake of Allana Potash for $109 million. Allana had mining rights for potash in northeastern Ethiopia and ICL controlling shareholder Idan Ofer declared, "We will make Ethiopia the potash center of Africa."
However, ICL now accuses the Ethiopian government of "failure to provide the necessary infrastructures and regulatory framework for the project." ICL added that "This follows the Ethiopian Tax Authority's rejection of Allana Afar's appeal regarding the unjustified and illegal tax assessment, which Allana Afar has declined to pay."
Published by Globes [online], Israel business news - www.globes-online.com - on October 6, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016
Israel Chemicals Photo: Eyal Yizhar