ICL’s Spanish subsidiary, ICL Iberia (Catalonia, Spain) and AkzoNobel (Amsterdam, the Netherlands; www.akzonobel.com) signed a non-binding memorandum of understanding to collaborate on the longterm production and marketing of vacuum salt and white potash. The MOU calls for the production and marketing of 1.5 million metric tons (m.t.) of high-quality vacuum salt, as well as 50,000 m.t. of white potash.
High-purity vacuum salt, manufactured from a salt by-product of potash mining, is used in a variety of applications by the chemical industry and also applied for specialty grades in the food and feed industries. Under the MOU, the vacuum salt will be produced by a future joint venture between AkzoNobel Chemicals International B.V and ICL Iberia and sold by AkzoNobel Chemicals International B.V. The MOU also calls for AkzoNobel Chemicals International B.V to enter into an off-take agreement with the joint venture for all of the vacuum salt produced by the joint venture. The white potash will be produced and marketed by ICL Iberia.
ICL is currently constructing a production facility for the two products at its mining facility located in Suria mine in Catalonia, Spain, within the scope of a previously announced, €170-million Phoenix Project, to increase ICL’s potash mining and production capacity at its Spanish facilities.
The parties will benefit from strong synergies including ICL’s extensive mining and production capabilities in Spain, as well as AkzoNobel’s experience and technical know-how to produce the planned volumes of salt and its sales and marketing networks.