Court docket orders ICL to pay NIS 250m for Lifeless Sea water

For the reason that Nineteen Sixties, the Lifeless Sea Works, presently managed by ICL, has held the concession to mine minerals within the Lifeless Sea area, and pays annual royalties to the Israeli authorities, claiming its exempt from a separate cost for its use of Lifeless Sea water.

“A concession will not be a metropolis of refuge”

The Excessive Court docket of Justice dominated at present that the water tariff reform, which got here into impact in 2017, which modified the manufacturing levy regime that had been in place till then, requiring concession holders to provide and provide water to pay for brackish water, additionally applies to the Lifeless Sea.

Decide Dafna Barak-Erez dominated that the Water Authority, by means of Mekorot, can be required to gather water charges from the Lifeless Sea vegetation. In her view, water charge funds don’t infringe on the rights granted to the Lifeless Sea vegetation and are separate from the financial association established with operators within the concession. “A concession will not be a ‘metropolis of refuge’ from the applying of common reforms,” she added. Decide Ofer Grosskopf believes that the best to acquire water “doesn’t embody immunity from regulatory adjustments.”

The petitions have been filed after Mekorot despatched the corporate cost calls for for a complete of greater than NIS 83 million for 2018-2020, which haven’t been paid. The Excessive Court docket of Justice has now ordered Mekorot to cost the corporate once more and to pay the court docket prices. This choice is predicted to have an effect on not solely the state coffers, however primarily the coverage of exploiting pure sources in Israel. It sends the message that even holders of historic concessions can be required to adjust to new regulatory guidelines.

ICL: The ruling is disproportionate

ICL mentioned, “We categorical disappointment with the ruling, which in our opinion is disproportionate and clearly contradicts each the state’s place on the matter and the letter of the regulation. That is in reality a change within the phrases of the concession throughout its time period – a transfer that when once more raises appreciable regulatory uncertainty as a result of phrases of the brand new tender for the Lifeless Sea concession.”

Foyer 99 authorized advisor Dr. Einat Solnik mentioned, “Foyer 99 is combating to decrease the price of dwelling and is performing primarily in opposition to large firms that exploit their energy amongst decision-makers opposite to the general public curiosity. We welcome the ruling, which contributes to the essential wrestle, as in keeping with Mekorot’s evaluation, the water charges that ICL pays will result in decrease water tariffs for all Israeli residents. There is no such thing as a motive for us to subsidize the very worthwhile actions of this firm, which is especially busy exploiting the pure sources within the Lifeless Sea that belong to the whole public, whereas blatantly shirking its duties.”

Adv. Meirav Abadi, Director of Regulation at Adam Teva Ve Din, who performed the case, mentioned: “Phrases can’t describe the magnitude of the achievement, each vis-à-vis the Lifeless Sea Works the state, which needed to exempt them from cost. The ruling is a precedent and does justice for the general public, who again and again are robbed of their pure sources, with out receiving compensation for it. If it weren’t for this wrestle, the state’s authorized opinion would have led to NIS 500 million being deducted from the general public purse. This achievement is particularly essential nowadays, when the tender for the renewal of the concession is on the agenda, which can determine the destiny of this pure marvel. Adam Teva Ve Din will proceed to work to return the Lifeless Sea to the general public and to protect it for future generations.”

Revealed by Globes, Israel enterprise information – en.globes.co.il – on December 3, 2025.

© Copyright of Globes Writer Itonut (1983) Ltd., 2025.