ICL Signs MOU for Namibian Phosphate Operation

ICL (NYSE:ICL) today signed a Memorandum of Understanding (“MOU”) with LLNP Ltd., a Namibian subsidiary of the Leviev Group. LLNP has been engaged to perform a feasibility study to establish a world-scale phosphates and downstream production business in Namibia, including fertilizer-grade phosphoric acid, white phosphoric acid, bulk fertilizers (e.g. MAP and DAP) and specialty fertilizers. LLNP holds permits and exploration rights to mine phosphate deposits that are estimated to total approximately one billion tonnes.
According to the ICL press release:

Over the next several months, ICL and LLNP will finalize the technology development required to produce phosphate downstream products from marine deposits, including the establishment of a local industrial pilot plant. Upon its successful completion, a detailed feasibility study will be prepared to secure financing for the project. […]
The partnership with LLNP follows ICL’s recent formation of a phosphate joint venture with Yunnan Yuntianhua, China’s leading phosphate company (“YTH”). The Chinese JV is comparable to the planned operation in Namibia based on a mine producing ~2.5 million tonnes of phosphate rock per year.

Stefan Borgas, CEO of ICL commented:;

We are delighted to enter into this partnership with the Leviev Group and to join such a long-standing and well-regarded investor in the country. Our joint platform will enable ICL to serve the evolving and fast-growing needs of the food and agro markets on the African continent. In the short term, we will focus on proving the technology required for this project and to demonstrate that it will enable us to operate as one of the world’s cost leaders in integrated phosphate specialties. The majority of the substantial investment in the project is expected to commence in 3 to 4 years. This initiative is meant to serve as the next wave in ICL’s expansion of its specialty business after most of our existing growth projects are completed. We do not expect this project to represent an additional financial burden on our company over the short term.

Click here to read the full press release.