JERUSALEM, Oct 6 (Reuters) -
* Israel Chemicals (ICL) said on Thursday its board
had decided to terminate its potash project in Ethiopia.
* ICL, one of the largest suppliers of crop nutrient
potash to China, India and Europe, cited the Ethiopian
government's "failure to provide the necessary infrastructures
and regulatory framework" for the project.
* It also follows the Ethiopian tax authority's "rejection
of Allana Afar's appeal regarding the unjustified and illegal
tax assessment, which Allana Afar has declined to pay".
* Allana Afar is a unit of ICL.
* The Ethiopian project was meant to be an alternative
source of potash in case ICL failed to get its Israeli Dead Sea
licence renewed after 2030 as well as an uncertain business and
regulatory environment in Israel.
* ICL said the net book value of the investment in the
project as of June 30 was $170 million. It will recognise in its
financial reports an impairment of the investment amount as well
as a provision for expected closing costs.
(Reporting by Steven Scheer)