ESAT News
Israel Chemicals (ICL) files a 198M dollars compensation suit against the Ethiopian government for losses it incurred due to the latter’s “failure to provide the necessary infrastructures and regulatory framework.”
ICL ended its potash project in Ethiopia in October 2016 after the Ethiopian government assessed what ICL called “unjustified and illegal tax assessment.”
A local newspaper in Addis Ababa reported quoting its sources that the Israeli company has taken the case to the International Court of Arbitration at The Hague, Netherlands.
A five year exploration in Afar region of Ethiopia by the chemical company found 3.2 billion tons of potash and an agreement was signed with the Ethiopian government in 2013.
ICL took over the potash development project in Afar from Allana Potash in 2015, and used Allana’s name for a while till Revenue Authorities levied a 50 million dollar tax. ICL refused to pay the taxes saying it was “unjustified and illegal tax assessment.” The company claims it lost millions of dollars.
Tax authorities say they have tried to settle the matter with ICL outside the court but the company has refused their plea.
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