Israel Chemicals is partnering with a Vietnamese company in a phosphates mining and processing venture for the local and Southeast Asia markets, according to Globes.
Israel Chemicals signed a memorandum of understanding with Vietnamese chemicals company Duc Giang to extract phosphates in Vietnam.
The agreement is part of its plan to expand and diversify its mining sources outside of Israel, broaden its global phosphate operations, and provide a growth engine for its primary markets, the company said.
Israel Chemicals said, “Building the platform in Vietnam is not intended to replace Israel Chemicals’ activities in Israel, but aims to strengthen its overall franchise in the phosphate markets globally, especially in Asia. The new joint company may also supply several Israel Chemicals customers and plants currently served by the company’s Israeli platform located in the Negev, should activities there cease due to the expiration of mining permits several years from now.”
The company’s phosphate mining in the Negev is nearing depletion, and plans to develop a new mine at Sde Barir have faced resistance from local residents and the Ministry of Health.