By: Mining.com

Israel’s Finance Ministry published a draft law on Wednesday aimed at reforming the decades-long concession for extracting minerals from the Dead Sea. The proposed legislation seeks to increase state revenues from the resources and address the environmental consequences of extraction activities as the Dead Sea continues to shrink.

The law would redefine the terms for the concession, which is currently held by fertilizer giant ICL Group and set to expire in 2030. It aims to ensure "the public and the state get their rightful share" by raising the state’s average profit share to 50%, up from the current 35%, partly through royalties. The framework is designed to promote competition and attract international players when the concession is put out to tender.

ICL Group, which holds exclusive extraction rights and estimates its Dead Sea assets at $6 billion, recently gave up its right of first refusal under a government plan to open the tender. The company would receive approximately $3 billion in compensation if it loses the permit and has stated it plans to participate in the future tender, believing it is the most suitable operator.

The draft law requires preliminary parliamentary approval. Accountant General Yali Rothenberg stated that the legislation emphasizes the fair, efficient, and responsible use of the resource, aiming to maximize economic value for the public while protecting the unique environment of the Dead Sea region for future generations.