Environmental Performance

Raw Materials & Material Extraction

ICL is a leading industrial company - its products are distributed and used worldwide. To manufacture these products ICL utilizes a broad range of materials. Although ICL mines most of its raw materials, it is unique in its material use efficiency, building on industrial symbiosis within its internal value chain to create highly specialized minerals and chemicals. In its ever-growing search for sustainable solutions, ICL is also researching alternative raw materials that advance a circular economy. \

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 areas in Israel, the UK, Spain and China. These provide a consistent, reliable supply of raw materials which are manufactured into products that fulfill the world’s needs in the agricultural, food and engineered materials markets.

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 use 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 2016, 2017 and 2018 ($ millions):

	Israel	Out of Israel	Total
2018	71	4	75
2017	64	4	68
2016	58	9	67

In 2018 and 2017, the Company paid additional amounts of $62 million and $68 million, respectively in respect of royalties in Israel relating to prior periods.

Sustainability Reporting Disclosures: