Sustainable Production from Natural Resources: The SQM Experience

Patricio Contesse G.Chief Executive Officer

SQM

Nuestros productos

World major producer potassium nitrate, iodine and lithium

Earnings 2013: US$ 467.1 millions 4,700 employees and 5,400 contractors Production: + 2.5 million ton/year; delivered to 115

countries

35% Iodine and derivatives

21% Specialty Plant Nutrition

24% Potassium

11% Lithium and derivatives

8% Industrial Chemicals

Business Lines

Natural Resources

Caliche Brines

Nitrate

Iodine

Potassium

Lithium

Sustainable Development Policy

Safe workplace for workers Care for the environment Efficient use of resources Costumer satisfaction Good neighbor to the community

Safety, Health, Environment, Quality and Community Management Systems

Objectives

Certification on Responsible Care, international protocol for the Chemical Industry

We operate near sensitive sites … Salar de Atacama

In its borders there are • Lagoons, meadows and wetlands

with reach wildlife• Some areas are National Reserve• Indegenous communities

Pampa del Tamarugal and Salar de Llamara• Tamarugo forest (protected

specie)• Wildlife• Lagoons with stromatolites• Some areas are National Reserve• Local small farmers

Care for the Environment

Care for the Environment We apply high standards …

Minimize potential impact implementing control and mitigation measures Develop extensive scientific studies ; basis for environmental assessment and

operation All operations are audited regularly by authorities; decades without fines

Care for the Environment We apply high standards …

Develop environmental education programs for the community; jointly with public organizations

Contribute with scientific studies to increase knowledge of valuable ecological systems

Environmental Education Center at Pampa del Tamarugal

Care for the Environment

EnergyBiodiversity

82.7 Million GJ total energy consumption

92% of energy used is solar energy

Specialized Studies on biota and hydrogeology

Robust Monitoring Plans at Salar de Atacama and Pampa del Tamarugal

Thousands of variables monitored

WaterEmissions to

AirWaste

Handling

Recirculation to processes

Monitoring of environmental impact

846 l/s average consumption, equivalent to irrigation water for aprox. 300 hectares

Air quality monitoring

Reduction of PM10 at Maria Elena and Tocopilla Port

Estimation of GHG emissions

Authorized management systems

Over 50% of dangerous waste is disposed for recycling

Our products contribute to Non-Conventional Renewable Energy Projects …

Solar salts are used for thermal accumulation of solar energy; allows for continuous energy supply (day/night)

Mixture of 60% sodium nitrate and 40% potassium nitrate, both produced by SQM

For every 50 MW project -> 30 Th MT of solar salts.

There are a total of 1,600 MW of Solar Plants operating with thermal storage systems

A new plant will be installed in northern Chile (110 MW)

Care for the Environment

“We mantain a close and long term relationship with our neighbors,

based on respect, trust and mutual development”.

Strategic Guidelines

Relationship with the Community

Open dialogue with representatives of the communities near our operations and authorities.

Local development programs aligned with the needs of the community, emphasizing Education Culture and historical heritage Social development

Open Dialogue

Relationship with the Community

Annual communication program with members of the community• Delivery of regular information on

environmental issues• Involvement in environmental

monitoring and auditing fieldwork• Presentation of results of annual

independent audit

Open visits to our operation facilities Participation of local community in external

auditing program SQM participates in significant local events

Cultural heritage • Research an publications on local cultural

heritage• Participation in several Saltpeter Heritage

Corporations• Improvements in Historical Area at Maria ElenaEducation • Literary contest about the Saltpeter heritage• School support on Math and extracurricular

activities• Support cultural and artistic expressions,

traditional festivals and carnivals Support Micro-entrepreneurship• Micro-entrepreneurship Fund • Tourism Development Program • Atacama Tierra Fertil Program

Relationship with the Community

Social Development Programs Valued by the local community; developed

jointly with the community and based on their interests

Supported by authorities Agricultural Program “Atacama Tierra Fertil”

has proven to be a success for local farmers Hydroponics: lettuce, strawberries, tomatos Alfalfa crops with modern irrigation systems Includes educational program at local

technical school: Liceo Likan Antai

Relationship with the Community

Final Remarks

We develop our business with a long term perspective …

… a profitable business, committed with our employees, care for the environment and the

development of the community.