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Bethel Finance news:
Dec 25 (Reuters) - Israel Chemicals (ICL) will have to finance 90 percent of the cost of harvesting salt from the Dead Sea and pay higher royalties under a Finance Ministry plan, Israeli media said on Sunday.
The cost of harvesting salt by ICL's unit Dead Sea Works is around 3.8 billion shekels ($1 billion), financial newspapers said. Israel's government would finance the remaining 10 percent.
Finance Minister Yuval Steinitz said he has made a final offer to ICL, the second largest company traded in Tel Aviv and one of the world's biggest potash producers, but his office declined to say what the proposal entailed.
The ministry said the state should benefit from its natural resources and that royalties ICL would pay to the government for extracting minerals from the Dead Sea would be doubled. ICL currently pays royalties of 5 percent.
Steinitz has given ICL until Tuesday at midnight (2200 GMT) to respond to his offer, according to a statement.
Should ICL reject the offer, Steinitz said he would set up a committee to determine how much the state should receive from harvesting the Dead Sea of salt to prevent flooding caused by ICL's mining activities.
A similar government-appointed panel earlier this year recommended imposing a 20 percent to 50 percent tax on profits from natural gas finds.
ICL said talks were ongoing and would not confirm the details of the media reports.
"Dead Sea Works has every intention and willingness to get to and reach an agreement regarding the funding issue of the Dead Sea salt harvest," ICL said in a statement. ($1=3.78 shekels)
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