£ |
REGISTRATION
STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
T |
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
£ |
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
£ |
SHELL
COMPANY REPORT PURSUANT TO SECTION 23 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
Title
of each class
|
Name
of each exchange on which registered
|
|
Series A shares, in the form of American Depositary Shares
Series B shares, in the form of American Depositary Shares
|
New York Stock Exchange
New York Stock Exchange
|
Series
A shares
|
142,819,552
|
Series
B shares
|
120,376,972
|
Page
|
||
PRESENTATION
OF INFORMATION
|
iii
|
|
GLOSSARY
|
iii
|
|
CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
|
vi
|
|
PART
I
|
1
|
|
ITEM
1.
|
IDENTITY
OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
|
1
|
ITEM
2.
|
OFFER
STATISTICS AND EXPECTED TIMETABLE
|
1
|
ITEM
3.
|
KEY
INFORMATION
|
1
|
ITEM
4.
|
INFORMATION
ON THE COMPANY
|
12
|
ITEM
5.
|
OPERATING
AND FINANCIAL REVIEW AND PROSPECTS
|
45
|
ITEM
6.
|
DIRECTORS,
SENIOR MANAGEMENT AND EMPLOYEES
|
62
|
ITEM
7.
|
MAJOR
SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
|
74
|
ITEM
8.
|
FINANCIAL
INFORMATION
|
76
|
ITEM
9.
|
THE
OFFER AND LISTING
|
78
|
ITEM
10.
|
ADDITIONAL
INFORMATION
|
81
|
ITEM
11.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
92
|
ITEM
12.
|
DESCRIPTION
OF SECURITIES OTHER THAN EQUITY SECURITIES
|
93
|
PART
II
|
94
|
|
ITEM
13.
|
DEFAULTS,
DIVIDEND ARREARAGES AND DELINQUENCIES
|
94
|
ITEM
14.
|
MATERIAL
MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
PROCEEDS
|
94
|
ITEM
15.
|
CONTROLS
AND PROCEDURES
|
94
|
ITEM
16.
|
RESERVED
|
95
|
ITEM
16.A.
|
AUDIT
COMMITTEE FINANCIAL EXPERT
|
95
|
ITEM
16.B.
|
CODE
OF ETHICS
|
95 |
ITEM
16.C
|
PRINCIPAL
ACCOUNTANT FEES AND SERVICES
|
96
|
ITEM
16.D
|
EXEMPTIONS
FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
|
96
|
ITEM
16.E
|
PURCHASES
OF EQUITY SECURITIES BY THE ISSUERS AND AFFILIATED
PURCHASERS
|
96
|
PART
III
|
97
|
|
ITEM
17.
|
FINANCIAL
STATEMENTS
|
97
|
ITEM
18.
|
FINANCIAL
STATEMENTS
|
97
|
ITEM
19.
|
EXHIBITS
|
97
|
SIGNATURES
|
98
|
|
CONSOLIDATED
FINANCIAL STATEMENTS
|
99
|
|
EXHIBIT
1.1
|
||
EXHIBIT
8.1
|
||
EXHIBIT
12.1
|
||
EXHIBIT
12.2
|
||
EXHIBIT
13.2
|
A
deposit may be classified as an Indicated Mineral Resource when the
nature, quality, amount and distribution of data are such as to allow
the
Competent Person determining the Mineral Resource to confidently
interpret
the geological framework and to assume continuity of mineralization.
Confidence in the estimate is sufficient to allow the appropriate
application of technical and economic parameters and to enable an
evaluation of economic viability.
|
A
deposit may be classified as a Measured Mineral Resource when the
nature,
quality, amount and distribution of data are such as to leave no
reasonable doubt, in the opinion of the Competent Person determining
the
Mineral Resource, that the tonnage and grade of the deposit can be
estimated within close limits and that any variation from the estimate
would not significantly affect potential economic viability. This
category
requires a high level of confidence in, and understanding of, the
geology
and controls of the mineral deposit. Confidence in the estimate is
sufficient to allow the appropriate application of technical and
economic
parameters and to enable an evaluation of economic
viability.
|
* |
The
definitions we use for resources and reserves are based on those
provided
by the “Instituto
de Ingenieros de Minas de Chile”
(Chilean Institute of Mining Engineers).
|
** |
The
definition of a Controller Group that has been provided is the one
that
applies to the Company. Chilean law provides for a broader definition
of a
Controller Group.
|
·
|
the
Company's capital investment program and development of new
products;
|
·
|
trends
affecting the Company's financial condition or results of
operations;
|
·
|
level
of production, quality of the ore and brines, and production
yields;
|
·
|
the
future impact of competition;
|
·
|
any
statements preceded by, followed by, or that include the words "believe,"
"expect," "predict," "anticipate," "intend," "estimate," "should,"
"may,"
"could" or similar expressions; and
|
·
|
other
statements contained in this Form 20-F that are not historical
facts.
|
·
|
SQM's
ability to implement its capital expenditures, including its ability
to
arrange financing when required;
|
·
|
the
nature and extent of future competition in SQM's principal
markets;
|
·
|
political,
economic and demographic developments in the emerging market countries
of
Latin America and Asia where SQM conducts a large portion of its
business;
and
|
·
|
the
factors discussed below under Item 3. Key Information—Risk
Factors.
|
Year ended December 31,
|
||||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||
Income Statement Data
|
(in millions of US$) (1)
|
|||||||||||||||
Chilean
GAAP
|
|
|
|
|
|
|||||||||||
Total
Revenues
|
1,187.5
|
1,042.9
|
896.0
|
788.5
|
691.8
|
|||||||||||
Operating
Income
|
259.5
|
219.9
|
181.2
|
124.1
|
87.3
|
|||||||||||
Non-operating
results, net
|
(27.1
|
)
|
(36.1
|
)
|
(34.4
|
)
|
(17.6
|
)
|
(21.2
|
)
|
||||||
Net
income
|
180.0
|
141.3
|
113.5
|
74.2
|
46.8
|
|||||||||||
Net
earnings per share (2)
|
0.68
|
0.54
|
0.43
|
0.28
|
0.18
|
|||||||||||
Net
earnings per ADS (2) (3)
|
0.68
|
0.54
|
0.43
|
0.28
|
0.18
|
|||||||||||
Dividend
per share (4)(5)
|
0.44
|
0.349
|
0.279
|
0.182
|
0.088
|
|||||||||||
Weighted
average shares outstanding (000s) (2)
|
263,197
|
263,197
|
263,197
|
263,197
|
263,197
|
|||||||||||
U.S.
GAAP
|
|
|
|
|
|
|||||||||||
Total
Revenues
|
1,187.5
|
1,042.9
|
896.0
|
788.5
|
691.8
|
|||||||||||
Operating
Income
|
237.0
|
205.5
|
163.9
|
114.6
|
76.7
|
|||||||||||
Non-operating
results, net (6)
|
1.7
|
(14.1
|
)
|
(6.1
|
)
|
(1.6
|
)
|
(4.3
|
)
|
|||||||
Equity
participation in income (loss) of related companies, net
|
3.6
|
2.0
|
2.6
|
1.8
|
2.2
|
|||||||||||
Net
income
|
192.7
|
154.3
|
125.2
|
86.8
|
57.8
|
|||||||||||
Basic
and diluted earnings per share
|
0.73
|
0.59
|
0.48
|
0.33
|
0.22
|
|||||||||||
Basic
and diluted earnings per ADS (3)
|
0.73
|
0.59
|
0.48
|
0.33
|
0.22
|
|||||||||||
Weighted
average shares outstanding (000s)(2)
|
263,197
|
263,197
|
263,197
|
263,197
|
263,197
|
As of December 31,
|
||||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||
Balance
Sheet Data:
|
(In
millions of US$)
|
|||||||||||||||
Chilean
GAAP:
|
||||||||||||||||
Total
assets
|
1,986.3
|
1,871.2
|
1,640.6
|
1,361.4
|
1,363.5
|
|||||||||||
Long-term
debt
|
486.7
|
480.7
|
100.0
|
200.0
|
260.0
|
|||||||||||
Total
shareholders' equity
|
1,182.4
|
1,085.9
|
1,020.4
|
948.6
|
890.0
|
|||||||||||
Capital
stock
|
477.4
|
477.4
|
477.4
|
477.4
|
477.4
|
|||||||||||
U.S.
GAAP:
|
||||||||||||||||
Total
assets
|
1,959.6
|
1,846.0
|
1,609.0
|
1,318.5
|
1,319.4
|
|||||||||||
Long-term
debt
|
485.0
|
478.7
|
100.0
|
200.0
|
260.0
|
|||||||||||
Total
shareholders' equity
|
1,084.1
|
994.5
|
923.4
|
856.9
|
794.7
|
|||||||||||
Capital
stock
|
479.3
|
479.3
|
479.3
|
479.3
|
479.3
|
Note:
The Company is not aware of any material differences between
Chilean and
U.S. GAAP that are not addressed in Note 29 to the Consolidated
Financial
Statements of December 31, 2007.
|
(1)
Except shares outstanding, dividend and net earnings per share
and net
earnings per ADS.
(2)
There are no authoritative pronouncements related to the calculation
of
earnings per share in accordance with Chilean GAAP. For comparative
purposes the calculation has been based on the same number of
weighted
average shares outstanding as used for the U.S. GAAP
calculation.
(3)
The ratio of ordinary shares to Series A ADSs was 10:1 for all
periods
reflected in the table. The Series A ADSs were delisted from
the New York
Stock Exchange on March 27, 2008. The ratio of ordinary shares
to Series B
ADSs changed from 10:1 to 1:1 on March 28, 2008. The calculation
of
earnings per ADS is based on the ratio of 1:1.
(4)
Dividends per share are calculated based on 263,196,524 shares
for the
periods ended December 31, 2003, 2004, 2005, 2006 and 2007.
(5)
Dividends may only be paid from net income before amortization
of negative
goodwill as determined in accordance with Chilean GAAP; see Item
8.A.8.
Dividend Policy. For dividends in Ch$ see Item 8.A.8.Dividend
Policy —
Dividends.
(6)
Does not include equity participation in income (loss) of related
companies, net.
|
Year/Month
|
Low (1)
|
High (1)
|
Average
(2)(3)
|
Year/Month
End
|
|||||||||
2003
|
593.10
|
758.21
|
687.50
|
599.40
|
|||||||||
2004
|
|
559.21
|
649.45
|
612.13
|
559.83
|
||||||||
2005
|
509.70
|
592.75
|
559.27
|
514.21
|
|||||||||
2006
|
511.44
|
549.63
|
531.03
|
534.43
|
|||||||||
2007
|
493.14
|
548.67
|
521.95
|
495.82
|
|||||||||
Dec-07
|
495.49
|
506.79
|
499.28
|
495.82
|
|||||||||
Jan-08
|
463.58
|
498.05
|
480.90
|
465.30
|
|||||||||
Feb-08
|
458.02
|
476.44
|
467.22
|
458.02
|
|||||||||
Mar-08
|
431.22
|
454.94
|
442.94
|
439.09
|
|||||||||
Apr-08
|
433.98
|
459.16
|
446.43
|
459.16
|
|||||||||
May-08
|
461.49
|
479.66
|
470.10
|
479.66
|
(1)
|
Observed
exchange rates are the actual high and low on a day-to-day basis,
for each
period.
|
(2)
|
The
yearly average rate is calculated as the average of the exchange
rates on
the last day of each month during the
period.
|
(3)
|
The
monthly average rate is calculated on a day-to-day basis for
each
month.
|
|
|
2007
|
|
2006 (2)
|
|
2005 (3)
|
||||
(in millions
of US$)
|
||||||||||
Capital
Expenditures (1)
|
185.0
|
290.5
|
198.1
|
(1)
|
For
purposes of this item, capital expenditures include investments
aimed at
sustaining, improving or increasing production levels, including
acquisitions and investments in related companies. Amounts set
forth in
this table do not match the consolidated statements of cash flows,
as the
Company does not consolidate development stage
companies.
|
(2)
|
Includes
acquisition of DSM’s Iodine business for a total of US$72 million, plus
all the cash, accounts receivable and final product inventories
minus the
total liabilities of the Chilean and Dutch companies considered
in the
transaction.
|
(3)
|
Includes
acquisition of Kefco in Dubai (US$9.3
million)
|
·
|
the
María Elena project including a new crushing
facility;
|
·
|
completion
of the new prilling and granulating facility located at Coya
Sur;
|
·
|
expansion
of lithium carbonate facility;
|
·
|
construction
of new evaporation ponds at the Salar de Atacama;
|
·
|
upgrade
of our railroad system to handle expanded capacity;
and
|
·
|
various
projects designed to maintain capacity, increase yields and lower
costs.
|
·
|
completion
of lithium carbonate facility
expansion;
|
·
|
new
potassium nitrate production facility at Coya
Sur;
|
·
|
start-up
of investments related to increase production capacity of potassium-based
products at the Salar de Atacama;
|
·
|
upgrade
of our railroad system to handle expanded
capacity;
|
·
|
construction
of a new mining camp at María Elena;
and
|
·
|
various
projects designed to maintain capacity, increase yields and reduce
costs.
|
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||
Specialty
Plant Nutrition
|
49
|
%
|
48
|
%
|
54
|
%
|
54
|
%
|
52
|
%
|
||||||
Iodine
and Derivatives
|
18
|
%
|
21
|
%
|
17
|
%
|
14
|
%
|
12
|
%
|
||||||
Lithium
and Derivatives
|
15
|
%
|
12
|
%
|
9
|
%
|
8
|
%
|
7
|
%
|
||||||
Industrial
Chemicals
|
7
|
%
|
7
|
%
|
8
|
%
|
9
|
%
|
10
|
%
|
||||||
Potassium
Chloride and Other Commodity Fertilizers
|
11
|
%
|
12
|
%
|
12
|
%
|
15
|
%
|
19
|
%
|
||||||
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
(1)
|
participate
in businesses where we are or will be a cost leader supported by
strong
fundamentals;
|
(2)
|
differentiate
ourselves from commodity producers by manufacturing, marketing
and
distributing specialty products that sell at high
value;
|
(3)
|
continually
increase the efficiency of our production processes and reduce
costs;
|
(4)
|
maintain
leadership in our core business areas – specialty plant nutrition,
iodine and lithium – in terms of installed capacity, costs,
production, pricing and development of new products; and
|
(5)
|
pursue
vertical integration into value-added
markets.
|
·
|
are
fully water soluble, allowing their use in hydroponics, fertigation,
foliar applications and other advanced agricultural
techniques;
|
·
|
are
absorbed more rapidly by plants because they do not require nitrification,
unlike ammonia-based fertilizers;
|
·
|
are
free of chlorine content, reducing the risk of scorching roots
and other
problems caused by chlorine;
|
·
|
do
not release hydrogen after application, thereby avoiding increased
soil
acidity;
|
·
|
possess
trace elements, which promote disease resistance in plants and
have other
beneficial effects;
|
·
|
are
more attractive to customers who prefer products of natural origin;
and
|
·
|
are
more efficient than commodity fertilizers because they deliver
more
nutrients per unit of product
applied.
|
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||
Sales
Volume
(in metric tons)
|
||||||||||||||||
Sodium
nitrate
|
45,900
|
43,300
|
63,300
|
58,900
|
62,500
|
|||||||||||
Potassium
nitrate and sodium potassium nitrate
|
695,300
|
615,000
|
690,200
|
707,600
|
696,500
|
|||||||||||
Potassium
sulfate
|
172,000
|
172,400
|
178,600
|
157,700
|
143,200
|
|||||||||||
Blended
and other specialty plant nutrients(1)
|
378,600
|
393,800
|
350,700
|
374,400
|
377,100
|
|||||||||||
Revenues
(in US$ millions)
|
580.8
|
503.1
|
487.8
|
426.8
|
362.8
|
(1)
|
Includes
blended and other specialty plant nutrients. It also includes Yara's
products sold pursuant to our commercial
agreement.
|
Sales
Breakdown
|
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||
Central
and South America
|
28
|
%
|
29
|
%
|
29
|
%
|
29
|
%
|
26
|
%
|
||||||
North
America
|
23
|
%
|
22
|
%
|
22
|
%
|
22
|
%
|
18
|
%
|
||||||
Europe
|
19
|
%
|
19
|
%
|
20
|
%
|
19
|
%
|
20
|
%
|
||||||
Others
|
20
|
%
|
21
|
%
|
20
|
%
|
20
|
%
|
27
|
%
|
||||||
Chile
|
10
|
%
|
9
|
%
|
9
|
%
|
10
|
%
|
9
|
%
|
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||
Sales
Volume (thous. metric tons)
|
||||||||||||||||
Iodine
and iodine derivatives
|
9.1
|
9.8
|
8.1
|
7.7
|
6.6
|
|||||||||||
Revenues
(in US$ millions)
|
215.1
|
217.7
|
149.1
|
110.5
|
84.6
|
Sales
Breakdown
|
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||
Europe
|
31
|
%
|
34
|
%
|
30
|
%
|
27
|
%
|
34
|
%
|
||||||
North
America
|
38
|
%
|
40
|
%
|
37
|
%
|
38
|
%
|
40
|
%
|
||||||
Central
and South America
|
5
|
%
|
5
|
%
|
13
|
%
|
13
|
%
|
6
|
%
|
||||||
Others
|
26
|
%
|
21
|
%
|
20
|
%
|
22
|
%
|
20
|
%
|
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||
Sales
Volume (thous. metric tons)
|
||||||||||||||||
Lithium
carbonate and derivatives
|
28.6
|
30.4
|
27.8
|
31.2
|
27.4
|
|||||||||||
Revenues
(in US$ millions)
|
179.8
|
128.9
|
81.4
|
62.6
|
49.7
|
Sales
Breakdown
|
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||
Europe
|
34
|
%
|
32
|
%
|
33
|
%
|
32
|
%
|
31
|
%
|
||||||
North
America
|
21
|
%
|
24
|
%
|
25
|
%
|
26
|
%
|
29
|
%
|
||||||
Asia
and Oceania
|
38
|
%
|
36
|
%
|
31
|
%
|
37
|
%
|
37
|
%
|
||||||
Others
|
7
|
%
|
8
|
%
|
11
|
%
|
5
|
%
|
3
|
%
|
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||
Sales
Volume (metric tons)
|
||||||||||||||||
Industrial
nitrates
|
175,200
|
162,000
|
176,300
|
192,800
|
193,200
|
|||||||||||
Boric
Acid
|
9,200
|
9,700
|
6,300
|
6,120
|
10,700
|
|||||||||||
Revenues
(in US$ millions)
|
81.2
|
71.3
|
70.5
|
68.8
|
66.7
|
Sales
Breakdown
|
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||
North
America
|
40
|
%
|
41
|
%
|
42
|
%
|
38
|
%
|
39
|
%
|
||||||
Europe
|
34
|
%
|
29
|
%
|
28
|
%
|
23
|
%
|
25
|
%
|
||||||
Central
and South America
|
17
|
%
|
17
|
%
|
17
|
%
|
24
|
%
|
12
|
%
|
||||||
Others
|
9
|
%
|
13
|
%
|
13
|
%
|
15
|
%
|
24
|
%
|
·
|
Securing
the health, safety and well-being of persons at work;
|
·
|
Protecting
nearby communities against risks to health or safety arising out
of or in
connection with mining operations in the vicinity;
|
·
|
Controlling
the use and storage of explosive, highly flammable or otherwise
dangerous
substances;
|
·
|
Controlling
the emission or pollution into the atmosphere of noxious or offensive
substances.
|
Main subsidiaries
|
Activity
|
Country of
Incorporation
|
SQM Beneficial
Ownership
Interest
(Direct/Indirect)
|
|||
SQM Nitratos S.A.
|
Extracts and sells caliche ore to subsidiaries and
affiliates of SQM
|
Chile
|
100%
|
|||
SQM
Industrial S.A.
|
Produces
and markets the Company’s products directly and through other
subsidiaries and affiliates of SQM
|
Chile
|
100%
|
|||
SQM
Salar
S.A.
|
Exploits
the Salar de Atacama to produce and market the Company’s products directly
and through other subsidiaries and affiliates of SQM
|
Chile
|
100%
|
|||
Minera
Nueva Victoria S.A.
|
Produces
and markets the Company’s products directly and through other subsidiaries
and affiliates of SQM
|
Chile
|
100%
|
|||
Servicios
Integrales de Tránsitos y Transferencias S.A. (SIT)
|
Owns
and operates a rail transport system and also owns and operates
the
Tocopilla port facilities
|
Chile
|
100%
|
|||
Soquimich
Comercial S.A.
|
Markets
the Company’s specialty plant nutrition products domestically and imports
fertilizers for resale in Chile
|
Chile
|
61%
|
|||
Ajay-SQM
Chile S.A.
|
Produces
and markets the Company’s iodine and iodine derivatives
|
Chile
|
51%
|
|||
Sales
and distribution subsidiaries in the United States, Belgium, Brazil,
Venezuela, Ecuador, Peru, Argentina, Mexico, South Africa and other
locations.
|
Market
the Company’s products throughout the world
|
Various
|
Exploitation Concessions
|
Exploration Concessions
|
Total
|
|||||||||||||||||
Mines (1)
|
Total
number
|
Hectares
|
Total
number
|
Hectares
|
Total
number
|
Hectares
|
|||||||||||||
Pedro de Valdivia
|
585
|
149,128
|
5
|
900
|
590
|
150,028
|
|||||||||||||
Maria
Elena
|
619
|
185,049
|
24
|
8,100
|
643
|
193,149
|
|||||||||||||
Pampa
Blanca
|
463
|
136,888
|
1
|
400
|
464
|
137,288
|
|||||||||||||
Nueva
Victoria (2)
|
344
|
89,466
|
77
|
27,800
|
421
|
117,266
|
|||||||||||||
Salar
de Atacama
|
409
|
266,965
|
209
|
61,800
|
618
|
328,765
|
|||||||||||||
Subtotal
mines
|
2,420
|
827,496
|
316
|
99,000
|
2,736
|
926,496
|
|||||||||||||
Other
caliche areas
|
7,039
|
1,586,168
|
1,058
|
301,400
|
8,097
|
1,887,568
|
|||||||||||||
Other
salars and other areas
|
581
|
117,756
|
308
|
81,400
|
889
|
199,156
|
|||||||||||||
Subtotal
other areas
|
7,620
|
1,703,924
|
1,366
|
382,800
|
8,986
|
2,086,724
|
|||||||||||||
Total
|
10,040
|
2,531,421
|
1,682
|
481,800
|
11,722
|
3,013,221
|
(1)
|
We
have included in this table both concessions that have been granted
and
concessions in the process of being
granted.
|
(2)
|
Nueva
Victoria amounts include the Mapocho and Soronal properties, which
were
presented separately in our 2006 Annual Report on Form 20-F.
|
(Values in thousands unless otherwise stated)
|
2007
|
2006
|
2005
|
|||||||
Pedro de
Valdivia
|
||||||||||
|
||||||||||
Metric
tons of ore mined
|
10,670
|
11,652
|
12,362
|
|||||||
Average
grade nitrate (% by weight)
|
7.5
|
7.4
|
7.2
|
|||||||
Iodine
(parts per million (ppm))
|
354
|
399
|
402
|
|||||||
Metric
tons of crystallized nitrate produced
|
423
|
454
|
476
|
|||||||
Metric
tons of iodine produced
|
2.3
|
2.5
|
2.6
|
|||||||
|
||||||||||
María
Elena (1)
|
||||||||||
|
||||||||||
Metric
tons of ore mined
|
4,651
|
5,682
|
5,917
|
|||||||
Average
grade nitrate (% by weight)
|
7.4
|
7.5
|
8.0
|
|||||||
Iodine
(ppm)
|
363
|
399
|
428
|
|||||||
Metric
tons of crystallized nitrate produced
|
424
|
504
|
479
|
|||||||
Metric
tons of iodine produced
|
1.0
|
1.3
|
1.4
|
|||||||
|
||||||||||
Pampa
Blanca
|
||||||||||
|
||||||||||
Metric
tons of ore mined
|
3,108
|
4,832
|
5,309
|
|||||||
Iodine
(ppm)
|
527
|
530
|
520
|
|||||||
Metric
tons of iodine produced
|
1.1
|
1.4
|
1.5
|
|||||||
|
||||||||||
Nueva
Victoria (2)
|
||||||||||
|
||||||||||
Metric
tons of ore mined
|
12,285
|
14,635
|
7,140
|
|||||||
Iodine
(ppm)
|
495
|
941
|
504
|
|||||||
Metric
tons of iodine produced
|
3.7
|
4,6
|
2.2
|
|||||||
|
||||||||||
Salar
de Atacama
|
||||||||||
Metric
tons of lithium carbonate produced (3)
|
30
|
29
|
27
|
|||||||
Metric
tons of potassium chloride produced
|
611
|
539
|
632
|
|||||||
Metric
tons of potassium sulfate produced
|
157
|
170
|
162
|
|||||||
Metric
tons of boric acid produced
|
7
|
8
|
9
|
(1)
|
Includes
production at Coya Sur from treatment of fines from María Elena and Pedro
de Valdivia and nitrates from pile treatment at Pampa
Blanca.
|
(2)
|
Includes
the Iris mining property, which was acquired in 2006 and was presented
separately in the 2006 Annual Report on Form 20-F. Nueva Victoria
extraction yields were higher in 2006 than they were in 2007 because
they
reflect extraction yields from the Iris property, which SQM continued
to
exploit for the first six months of 2006, subsequent to the acquisition.
The Iris property has not been exploited since mid-2006, and it
represents
a future extension of the Nueva Victoria
operations.
|
(3)
|
Lithium
carbonate is extracted at the Salar de Atacama and processed at
our
facilities at the Salar del Carmen.
|
Mine
|
Proven Reserves (1)
(millions of metric tons)
|
Nitrate Average Grade
(percentage by weight)
|
Iodine Average Grade
(parts per million)
|
|||||||
Pedro de
Valdivia
|
152.3
|
7.1
|
%
|
370
|
||||||
María
Elena
|
134.8
|
7.3
|
%
|
415
|
||||||
Pampa
Blanca
|
74.9
|
6.3
|
%
|
549
|
||||||
Nueva
Victoria (2)
|
283.8
|
5.7
|
%
|
427
|
Mine
|
Probable Reserves (1) (3)
(millions of metric tons)
|
Nitrate Average Grade
(percentage by weight)
|
Iodine Average Grade
(parts per million)
|
|||||||
Pedro de
Valdivia
|
136.8
|
6.8
|
%
|
428
|
||||||
María
Elena
|
97.6
|
7.3
|
%
|
380
|
||||||
Pampa
Blanca
|
429.4
|
6.0
|
%
|
524
|
||||||
Nueva
Victoria (2)
|
129.9
|
5.5
|
%
|
407
|
(1) |
The
proven and probable reserves set forth in the tables above are
shown
before losses related to exploitation and metallurgical treatment.
Proven
and probable reserves are affected by mining exploitation methods,
which
result in differences between the estimated reserves that are available
for exploitation in the mining plan and the recoverable material
that is
finally transferred to the leaching vats or heaps. The average
mining
exploitation factor for our different mines ranges between 80%
and 90%,
whereas the average global metallurgical recoveries of processes
for
nitrate and iodine contained in the recovered material vary between
55%
and 65%.
|
(2) |
Proven
and probable reserves for Nueva Victoria include the Soronal and
Mapocho
mining properties, which were presented separately in the Company’s 2006
Annual Report on Form 20-F. Nueva Victoria also includes the reserves
for
the Iris mining property, which was acquired in 2006 and whose
reserves
had not yet been estimated at the time the 2006 Form 20-F was
filed.
|
(3) |
Probable
reserves amounts can be transformed in order to obtain amounts
expressed
as proven reserves. On average, the transformation factor to express
probable reserves as proven reserves is higher than 60%. This factor
depends on geological conditions and caliche ore continuity, which
vary
from mine to mine. The difference between the probable reserve
amounts and
the transformed probable reserve amounts is the result of the lower
degree
of certainty pertaining to probable reserves compared with proven
reserves.
|
Proven Reserves (1)
(millions of metric tons)
|
Probable Reserves (1)
(millions of metric tons)
|
||||||
Potassium (K
+)
(2)
|
49.9
|
7.3
|
|||||
Sulfate
(SO4 2-)
(3)
|
36.1
|
1.3
|
|||||
Lithium
(Li +)
(4)
|
3.0
|
2.0
|
|||||
Boron
(B 3+)
(5)
|
1.2
|
0.1
|
(1) |
Metric
tons of potassium, sulfate, lithium and boron considered in the
proven and
probable reserves are shown before losses from evaporation processes
and
metallurgical treatment. The recoveries of each ion depend on both
brine
composition, which changes over time, and the process applied to
produce
the desired commercial products.
|
(2) |
Recoveries
for potassium vary from 47% to 68%.
|
(3) |
Recoveries
for sulfate vary from 27% to 44%.
|
(4) |
Recoveries
for lithium vary from 28% to 32%.
|
(5) |
Recoveries
for boron are approximately 29%.
|
Location
|
Type of Facility
|
Approximate Size (1) (Hectares)
|
|||||
Pedro de Valdivia
|
Nitrates
and iodine production
|
126
|
|||||
María
Elena
|
Nitrates
and iodine production
|
110
|
|||||
Coya
Sur
|
Nitrates
and iodine production
|
232
|
|||||
Pampa
Blanca
|
Concentrated
nitrate salts and iodine production
|
86
|
|||||
Nueva
Victoria
|
Iodine
production
|
11
|
|||||
Salar
de Atacama (2)
|
Potassium
chloride, lithium chloride, potassium sulfate and boric
acid
|
2,288
|
|||||
Salar
del Carmen, Antofagasta
|
Lithium
carbonate and lithium hydroxide production
|
32
|
|||||
Tocopilla
|