By Steven Scheer
JERUSALEM, Dec 3 (Reuters) - Israel on Wednesday published a draft law that aims to boost state revenues from a concession for extracting minerals from the Dead Sea as well as tackling its environmental consequences.
The Finance Ministry said the proposed law intends to redefine the concession to ensure the public and the state get their rightful share, while ensuring the preservation of nature and environmental values.
"The law serves as the basis for allocating the concession and the terms of the future tender for resource extraction from the Dead Sea, with an emphasis on promoting optimal competition, lowering entry barriers, and attracting leading international players," it said.
Fertiliser maker ICL Group has held the concession, giving it exclusive rights to minerals from the Dead Sea site, for five decades, but its permit is set to expire in 2030.
Last month, ICL gave up right of first refusal for its Dead Sea concession under a government plan to open it up for tender, although it would receive some $3 billion if it loses the permit when it expires.
ICL, one of the world's largest potash producers, has previously said its Dead Sea assets were worth $6 billion. ICL extracts mainly potash and magnesium from the concession.
Under the draft law, which still needs preliminary approval from lawmakers, the state's share of concession profits would ultimately rise to an average of 50% from 35% currently, partly through royalties, the ministry said.
The law also aims to tackle negative impacts of resource extraction activities in the Dead Sea, which continues to shrink.
ICL plans to participate in the future tender and has said it believes it is the most suitable candidate to operate the future concession.
Accountant General Yali Rothenberg said the law places emphasis on fair, efficient, and responsible use of one of Israel’s most important natural resources.
It "will ensure that the state maximizes economic value for the public, promotes optimal competition, and protects the unique environment of the Dead Sea region for future generations," he said.
(Reporting by Steven Scheer. Editing by Jane Merriman)
