In a statement, ICL said: "The interim recommendations of the Sheshinski Committee are an economic and social mistake that practically force ICL to go back on most of its investments in Israel, focus on optimisation and cost-cutting, and drive ICL out of Israel."

If approved, the recommendations would create a further significant competitive disadvantage for ICL's Israeli assets and have a severe impact on employment of 30,000 families in the Negev region, the company said.

ICL added that the potash and bromine operations in the Dead Sea will be ceased, and the phosphate operations in the Negev will be further deteriorated.

Headed by economics professor Eytan Sheshinski of The Hebrew University of Jerusalem, the committee was appointed by Israel's Finance Minister Yair Lapid in June 2013 to review the country's tax regime for resources and ensure that the public receives its due from natural resources.

The committee said that the proposed tax regime would add ILS500 ($144.5m) to Israel's annual budget, and also recommended imposing 5% royalty on natural resources instead of the 2%-10% regime in place.

ICL said it will explore further cost-cutting measures to ease the impact of the proposed cash pay-out.

The company produces and markets fertilisers, metals and other chemical products primarily for the agriculture, food and engineered sectors.