Jerusalem: The Israeli government has released a comprehensive draft law aimed at reshaping the country’s mineral extraction framework at the Dead Sea, marking one of the most significant reforms in the sector in decades. The proposal seeks to increase state revenues, open the industry to competition, and introduce tougher environmental regulations to protect one of the world’s most fragile ecological regions.
At the heart of the draft law is a plan to replace the long-standing concession system that has allowed Israel Chemicals Ltd. (ICL) to exclusively extract potash, magnesium, and other minerals from the southern basin of the Dead Sea for over 50 years. ICL’s current permit is set to expire in 2030, and recent developments especially the company’s decision to relinquish its right of first refusal have paved the way for the government to pursue a competitive tender for the next concession period.
The government’s proposal envisions a more open and competitive bidding structure, allowing new players to enter what has historically been a single-operator domain. According to officials, this shift is expected to increase transparency and ensure the public receives a fair share of profits from natural resources.
One of the most notable features of the draft law is a substantial increase in state revenue share. Currently, the government receives roughly 35% of the profits generated from Dead Sea mineral extraction. Under the proposed framework, this could rise to nearly 50% through a combination of royalties, corporate taxes, and a reinforced natural resource profits tax.
The Finance Ministry has described the proposed taxation structure as one that “aligns national economic interests with responsible resource management,” emphasizing that any future operator must meet both financial and public-interest standards.
If ICL does not win the new concession, it is eligible to receive compensation estimated at about US$3 billion, reflecting the scale of its long-running investment in the region’s industrial infrastructure.
The draft law also puts environmental protection at the forefront. The Dead Sea, known for its mineral-rich waters and unique geological features, has been shrinking for years due to water diversion, climate pressures, and industrial activity.
Under the new proposal, future operators must adhere to strict environmental safeguards, including:
• Reduced concession area to limit ecological disruption
• Mandatory rehabilitation of mined lands and industrial sites
• Stronger monitoring of water usage and waste discharge
• Enhanced environmental reporting and transparency requirements
Officials emphasized that the new regulations aim to strike a balance between economic development and preservation of the Dead Sea’s delicate ecosystem, which has suffered visible deterioration in recent years.
ICL has signaled that it intends to participate in the upcoming bidding process despite the removal of its exclusive advantage. Industry analysts say the company remains a strong contender due to its deep expertise and established infrastructure in the region.
The draft law now moves to the preliminary approval stage in the Knesset, where it is expected to spark wide-ranging discussions about resource governance, environmental obligations, and long-term economic strategy.
If passed, the legislation will mark a historic milestone redefining how Israel manages one of its most valuable natural resources and setting new standards for transparency, competition, and environmental responsibility.
The government says it is committed to ensuring that the Dead Sea, both a national treasure and a global heritage site, is managed in a way that benefits citizens today while safeguarding its future for generations to come.