By cambodine
With consideration to Israel Chemicals‘ stated expansion strategy I submit the following reasons as to why ICL and Allana Potash make a perfect fit….
+ ICL is perfectly suited to operate a solution mine and is more knowledgeable and experienced than any other company re: Allana’s location and resource
+ The cost of obtaining and/or JV-ing Allana Potash is very appealing even at the currentNPV and likely buyout or buy-in outlay
+ The vast majority of exploitable carnallite and kainite resource comes at next to nothing and ICL has the expertise to monetize both
+ ICL would secure the logistical and price advantages to their primary existing markets ofIndia and China as well as the high potential COMESA end users
+ $1 billion expense ICL is committed to spending on dredging the Dead Sea is about equal to what would be needed in Capex to build a 2 mtpa mine in Dallol
+ Environmental and other pressures on their Dead Sea operations, as well as a 2030 hand back of assets to the Israeli government make a deal to secure strategically located replacement reserves increasingly necessary
+ All developmental work, costs and permits are done, the project is shovel ready, and potential financing and off take agreements are already highly advanced
+ Synergies, timing and valuations are currently optimal from an Israel Chemicals perspective