UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 20549 

Form 6-K 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934 

For the month of August, 2021. 

Commission File Number 33-65728

CHEMICAL AND MINING COMPANY OF CHILE INC. 

(Translation of registrant’s name into English)

El Trovador 4285, Santiago, Chile (562) 2425-2000 

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F: x    Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Santiago, Chile. August 31, 2021.- Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reports the translation of its financial statements for the three months ended June 30, 2021, the Spanish version of which was filed with the Chilean Commission for the Financial Market (Comisión para el Mercado Financiero or “CMF”) on August 18, 2021.

 

CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

As of June 30, 2021, and for the
periods ended June 30, 2021 and 2020

Sociedad Química y Minera de Chile S.A. and Subsidiaries

In Thousands of United States Dollars

This document includes:

- Consolidated Unaudited Interim Statements of Financial Position

- Consolidated Unaudited Interim Statements of Income

- Consolidated Unaudited Interim Statements of Comprehensive Income

- Consolidated Unaudited Interim Statements of Cash Flows

- Consolidated Unaudited Interim Statements of Changes in Equity

- Notes to the Consolidated Unaudited Interim Financial Statements

    

Notes to the Consolidated Unaudited Interim Financial Statements 
June 30, 2021  

Table of Contents –Consolidated Unaudited Interim Financial Statements

Consolidated Unaudited Interim Classified Statements of Financial Position	1
Consolidated Unaudited Interim Classified Statements of Financial Position	2
Consolidated Unaudited Statements of Income (Unaudited)	3
Consolidated Unaudited Statements of Comprehensive Income (Unaudited)	4
Consolidated Unaudited Interim Statements of Cash Flows (Unaudited)	5
Consolidated Unaudited Statements of Changes in Equity (Unaudited)	7

Note 1 Identification and Activities of the Company and Subsidiaries 10

1.1	Historical background	10
1.2	Main domicile where the Company performs its production activities	10
1.3	Codes of main activities	10
1.4	Description of the nature of operations and main activities	10
1.5	Other background	12
1.6	Covid-19	13
1.7	Capital stock increase	14
1.8	Approval of investment in Mount Holland	14

Note 2	Basis of presentation for the consolidated financial statements	15
2.1	Accounting period	15
2.2	Consolidated financial statements	15
2.3	Basis of measurement	16
2.4	Accounting pronouncements	16
2.5	Basis of consolidation	18
2.6	Investments in associates and joint ventures	19
Note 3	Significant accounting policies	20
3.1	Classification of balances as current and non-current	20
3.2	Functional and presentation currency	20
3.3	Accounting policy for foreign currency translation	20
3.4	Consolidated statement of cash flows	22
3.5	Financial assets	22
3.6	Financial assets impairment	23
3.7	Financial liabilities	23
3.8	Reclassification of financial instruments	23
3.9	Financial instruments derecognition	23
3.10	Derivative and hedging financial instruments	24
3.11	Derivative financial instruments not considered as hedges	25
3.12	Deferred acquisition costs from insurance contracts	25
3.13	Leases	25

      

Notes to the Consolidated Unaudited Interim Financial Statements 
June 30, 2021  

3.14	Inventory measurement	26
3.15	Non-controlling interests	27
3.16	Related party transactions	27
3.17	Property, plant and equipment	27
3.18	Depreciation of property, plant and equipment	28
3.19	Goodwill	28
3.20	Intangible assets other than goodwill	29
3.21	Research and development expenses	30
3.22	Exploration and evaluation expenses	30
3.23	Impairment of non-financial assets	31
3.24	Minimum dividend	31
3.25	Earnings per share	31
3.26	Capitalization of interest expenses	31
3.27	Other provisions	32
3.28	Obligations related to employee termination benefits and pension commitments	32
3.29	Compensation plans	32
3.30	Revenue recognition	33
3.31	Finance income and finance costs	33
3.32	Current income tax and deferred	33
3.33	Operating segment reporting	34
3.34	Primary accounting criteria, estimates and assumptions	34
3.35	Environment	35
Note 4	Financial risk management	36
4.1	Financial risk management policy	36
4.2	Risk Factors	36
4.3	Risk measurement	40
Note 5	Separate information on the main office, parent entity and joint action agreements	41
5.1	Parent’s stand-alone assets and liabilities	41
5.2	Parent entity	41
Note 6	Board of Directors, Senior Management and Key management personnel	42
6.1	Remuneration of the Board of Directors and Senior Management	42
6.2	Key management personnel compensation	44
Note 7	Background on companies included in consolidation and non-controlling interests	45
7.1	Background on companies included in consolidation	45
7.2	Assets, liabilities, results of consolidated subsidiaries as of June 30, 2021 and for the period then ended.	47
7.3	Background on non-controlling interests	51
Note 8	Equity-accounted investees	52
8.1	Investments in associates recognized according to the equity method of accounting	52
8.2	Assets, liabilities, revenue and expenses of associates	54
8.3	Other information	55
Note 9	Joint Ventures	56
9.1	Investment in joint ventures accounted for under the equity method of accounting.	56
9.2	Assets, liabilities, revenue and expenses from joint ventures	59

     

Notes to the Consolidated Unaudited Interim Financial Statements 
June 30, 2021  

9.3	Other Joint Venture disclosures	60
9.4	Disclosure of interests in joint ventures	61
9.5	Joint Ventures	61
Note 10	Cash and cash equivalents	62
10.1	Types of cash and cash equivalents	62
10.2	Short-term investments, classified as cash equivalents	62
10.3	Information on cash and cash equivalents by currency	63
10.4	Amount restricted cash balances	63
10.5	Short-term deposits, classified as cash equivalents	64
10.6	Net Debt reconciliation	66
Note 11	Inventories	67
Note 12	Related party disclosures	69
12.1	Related party disclosures	69
12.2	Relationships between the parent and the entity	69
12.3	Detailed identification of related parties and subsidiaries	70
12.4	Detail of related parties and related party transactions	73
12.5	Trade receivables due from related parties, current:	74
12.6	Trade payables due to related parties, current:	74
12.7	Other disclosures:	74
Note 13	Financial instruments	75
13.1	Types of other current and non-current financial assets	75
13.2	Trade and other receivables	76
13.3	Hedging assets and liabilities	79
13.4	Financial liabilities	80
13.5	Trade and other payables	91
13.6	Financial asset and liability categories	92
13.7	Fair value measurement of finance assets and liabilities	94
13.8	Estimated fair value of financial instruments	97
Nota 14	Right-of-use assets and Lease liabilities	98
14.1	Right-of-use assets	98
14.2	Lease liabilities	99
Note 15	Intangible assets and goodwill	106
15.1	Balances	106
Note 16	Property, plant and equipment	113
16.1	Types of property, plant and equipment	113
16.2	Conciliation of changes in property, plant and equipment by type:	115
16.3	Detail of property, plant and equipment pledged as guarantee	119
16.4	Cost of capitalized interest, property, plant and equipment	119
Note 17	Other current and non-current non-financial assets	120
Note 18	Employee benefits	122
18.1	Provisions for employee benefits	122
18.2	Policies on defined benefit plan	122
18.3	Other long-term benefits	123

     

Notes to the Consolidated Unaudited Interim Financial Statements 
June 30, 2021  

18.4	Post-employment benefit obligations	123
18.5	Staff severance indemnities	124
18.6	Executive compensation plan	125
Note 19	Provisions and other non-financial liabilities	126
19.1	Types of provisions	126
19.2	Description of other provisions	127
19.3	Other non-financial liabilities, Current	128
19.4	Changes in provisions	129
Note 20	Disclosures on equity	130
20.1	Capital management	130
20.2	Operational restrictions and financial limits	130
20.3	Disclosures on preferred share capital	132
20.4	Disclosures on reserves in Equity	133
20.5	Dividend policies	135
20.6	Interim and provisional dividends	136
20.7	Potential and provisional dividends	137
Note 21	Contingencies and restrictions	138
21.1	Lawsuits and other relevant events	138
21.2	Environmental contingencies	140
21.3	Tax Contingencies	140
21.4	Contingencies regarding to the Contracts with Corfo	141
21.5	Contingencies associated with conflicts between shareholders of the Abu Dhabi Fertilizer Industries Company	141
21.6	Restricted or pledged cash	141
21.7	Securities obtained from third parties	141
21.8	Indirect guarantees	141
Note 22	Gains (losses) from operating activities in the statement of income of expenses, included according to their nature	142
22.1	Revenue from operating activities customer activities	142
22.2	Cost of sales	144
22.3	Other income	145
22.4	Administrative expenses	145
22.5	Other expenses	146
22.6	Other losses	146
22.7	(Impairment) /reversion of value of financial assets impairment losses	147
22.8	Summary of expenses by nature	147
22.9	Finance expenses	148
22.10	Finance income	148
Note 23	Reportable segments	149
23.1	Reportable segments	149
23.2	Reportable segment disclosures:	151
23.3	Statement of comprehensive income classified by reportable segments based on groups of products	153
23.4	Disclosures on geographical areas	155

      

Notes to the Consolidated Unaudited Interim Financial Statements 
June 30, 2021  

23.5	Disclosures on main customers	155
23.6	Segments by geographical areas	156
Note 24	Effect of fluctuations in foreign currency exchange rates	157
Note 25	Disclosures on the effects of fluctuations in foreign currency exchange rates	159
Note 26	Income tax and deferred taxes	165
26.1	Current and non-current tax assets	165
26.2	Current tax liabilities	166
26.3	Income tax and deferred taxes	167
Note 27	Events occurred after the reporting date	175
27.1	Authorization of the financial statements	175
27.2	Disclosures on events occurring after the reporting date	175

      

Notes to the Consolidated Unaudited Interim Financial Statements 
June 30, 2021  

Consolidated Unaudited Interim Classified Statements of Financial Position

			As of
			June 30,		As of
			2021		December 31,
			(Unaudited)		2020
ASSETS	Note N°		ThUS$		ThUS$
Current Assets
Cash and cash equivalents		10.1		1,242,853		509,102
Other current financial assets		13.1		709,453		348,069
Other current non-financial assets		17		53,655		57,399
Trade and other receivables, current		13.2		453,203		365,206
Trade receivables due from related parties, current		12.5		54,538		62,601
Current inventories		11		1,095,626		1,093,028
Current tax assets		26.1		149,971		132,224
Total current assets other than those classified as held for sale or disposal				3,759,299		2,567,629
Non-current assets or groups of assets classified as held for sale				637		1,629
Total non-current assets held for sale				637		1,629
Total current assets				3,759,936		2,569,258
Non-current assets
Other non-current financial assets		13.1		26,147		51,925
Other non-current non-financial assets		17		76,339		22,042
Non-current trade receivables,		13.2		11,425		11,165
Investments classified using the equity method of accounting		8.1-9.1		53,880		85,993
Intangible assets other than goodwill		15.1		176,172		178,407
Goodwill		15.1		41,966		41,966
Property, plant and equipment net		16.1		1,743,091		1,737,319
Right-of-use assets		14.1		37,917		30,024
Non-current tax assets		26.1		90,364		90,364
Total non-current assets				2,257,301		2,249,205
Total assets				6,017,237		4,818,463

The accompanying notes form an integral part of these consolidated interim financial statements.

1 

      

Notes to the Consolidated Unaudited Interim Financial Statements 
June 30, 2021  

Consolidated Unaudited Interim Classified Statements of Financial Position

			As of			As of
			June 30,			December 31,
			2021			2020
Liabilities and Equity	Note N°		ThUS$			ThUS$
Current liabilities
Other current financial liabilities		13.4		42,137			68,955
Lease liabilities, current		14.2		7,770			5,528
Trade and other payables, current		13.5		227,289			203,933
Trade payables due to related parties, current		12.6		-			606
Other current provisions		19.1		116,436			104,166
Current tax liabilities		26.2		12,302			22,643
Provisions for employee benefits, current		18.1		10,181			9,096
Other current non-financial liabilities		19.3		165,203			60,955
Total current liabilities				581,318			475,882
Non-current liabilities
Other non-current financial liabilities		13.4		1,898,493			1,899,513
Non-current lease liabilities		14.2		31,448			25,546
Non-current trade and other payables		13.5		11,767			4,027
Other non-current provisions		19.1		58,449			62,617
Deferred tax liabilities		26.3		167,304			156,101
Non-current provisions for employee benefits		18.1		28,496			32,199
Total non-current liabilities				2,195,957			2,180,003
Total liabilities				2,777,275			2,655,885
Equity
Equity attributable to owners of the Parent		20
Share capital				1,578,024			477,386
Retained earnings				1,648,137			1,638,267
Other reserves				(24,219	)		7,432
Equity attributable to owners of the Parent				3,201,942			2,123,085
Non-controlling interests				38,020			39,493
Total equity				3,239,962			2,162,578
Total liabilities and equity				6,017,237			4,818,463

The accompanying notes form an integral part of these consolidated interim financial statements.

2 

Notes to the Consolidated Unaudited Interim Financial Statements 
June 30, 2021  

Consolidated Unaudited Statements of Income (Unaudited)

			For the period from January to June of the year						For the period from April to June of the year
			2021			2020			2021			2020
Consolidated Interim Statements of Income	Note N°		ThUS$			ThUS$			ThUS$			ThUS$
Revenue		22.1		1,116,472			850,510			587,995			458,473
Cost of sales		22.2		(793,925	)		(614,918	)		(402,091	)		(330,626	)
Gross profit				322,547			235,592			185,904			127,847
Other income		22.3		14,739			6,472			11,971			4,229
Administrative expenses		22.4		(53,883	)		(48,918	)		(29,248	)		(24,384	)
Other expenses		22.5		(14,560	)		(12,068	)		(13,462	)		(7,540	)
Impairment of financial assets and reversal of impairment losses		22.7		(644	)		1,889			(1,884	)		119
Other losses		22.6		(4,865	)		(5,820	)		(4,870	)		(6,520	)
Profit from operating activities				263,334			177,147			148,411			93,751
Finance income		22.10		1,886			10,319			1,088			3,558
Finance costs		16-23.9		(39,333	)		(44,357	)		(19,414	)		(21,291	)
Share of profit of associates and joint ventures accounted for using the equity method		8.1-9.3		5,561			6,393			3,322			4,775
Foreign currency translation differences		24		(8,743	)		(6,747	)		(6,417	)		(4,085	)
Profit before taxes				222,705			142,755			126,990			76,708
Income tax expense		26.3		(62,080	)		(46,066	)		(36,079	)		(25,473	)
Net profit				160,625			96,689			90,911			51,235
Profit attributable to:
Profit attributable to Owners of the Parent				157,773			95,821			89,801			50,835
Profit attributable to Non-controlling interests				2,852			868			1,110			400
				160,625			96,689			90,911			51,235

		For the period from January to June of the year				For the period from April to June of the year
		2021		2020		2021		2020
Earnings per share	Note N°	ThUS$		ThUS$		ThUS$		ThUS$
Common shares
Basic earnings per share (US$ per share)			0.5524		0.3641		0.3144		0.1931
Diluted common shares
Diluted earnings per share (US$ per share)			0.5524		0.3641		0.3144		0.1931

The accompanying notes form an integral part of these consolidated interim financial statements.

3 

Notes to the Consolidated Unaudited Interim Financial Statements 
June 30, 2021  

Consolidated Unaudited Statements of Comprehensive Income (Unaudited)

	For the period from January to June of the year						For the period from April to June of the year
	2021			2020			2021			2020
Consolidated Statements of Comprehensive Income	ThUS$			ThUS$			ThUS$			ThUS$
Net profit		160,625			96,689			90,911			51,235
Items of other comprehensive income that will not be reclassified to profit for the year, before taxes
Gains from measurements of defined benefit plans		4,399			143			1,168			423
(Losses) gains from financial assets measured irrevocably at fair value through other comprehensive income		(13,351	)		816			(17,163	)		2,810
Total other comprehensive income (loss) that will not be reclassified to profit for the year, before taxes		(8,952	)		959			(15,995	)		3,233
Items of other comprehensive income that will be reclassified to profit for the year, before taxes
Foreign currency exchange gains (losses)		2,130			(1,087	)		579			5,367
(Losses) from cash flow hedges		(20,444	)		(15,946	)		(23,326	)		2,494
Total other comprehensive income that will be reclassified to profit for the year		(18,314	)		(17,033	)		(22,747	)		7,861
Other items of other comprehensive income, before taxes		(27,266	)		(16,074	)		(38,742	)		11,094
Income taxes related to items of other comprehensive income that will not be reclassified to profit for the year
Income (tax) benefit relating to measurement of defined benefit pension plans through other comprehensive income		(780	)		(220	)		86			(758	)
Income benefit (tax) relating to (losses) gains on financial assets measured irrevocably at fair value through other comprehensive income		4,163			(18	)		4,634			(96	)
Total income tax relating to components of other comprehensive income that will be not reclassified to profit for the year		3,383			(238	)		4,720			(854	)
Income taxes relating to components of other comprehensive income that will be reclassified to profit for the year
Income tax benefit (expense) related to (losses) gains from cash flow hedges		5,520			4,305			6,298			(674	)
Total income tax relating to components of other comprehensive income that will be reclassified to profit for the year		5,520			4,305			6,298			(674	)
Total other comprehensive (loss) income		(18,363	)		(12,007	)		(27,724	)		9,566
Total comprehensive income		142,262			84,682			63,187			60,801
Comprehensive income attributable to
Comprehensive income attributable to owners of the parent		139,292			83,480			62,038			60,507
Comprehensive income attributable to non-controlling interest		2,970			1,202			1,149			294
		142,262			84,682			63,187			60,801

The accompanying notes form an integral part of these consolidated interim financial statements.

4 

Notes to the Consolidated Unaudited Interim Financial Statements 
June 30, 2021  

Consolidated Unaudited Interim Statements of Cash Flows (Unaudited)

		For the period from January to June of the year
		2021			2020
Consolidated Interim Statements of Cash Flows	Note N°	ThUS$			ThUS$
Cash flows from (used in) operating activities
Classes of cash receipts from operating activities
Cash receipts from sales of goods and rendering of services			1,101,159			957,104
Cash receipts from premiums and benefits, annuities and other benefits from policies entered			1,357			1,051
Cash receipts derived from sub-leases			104			105
Classes of Payments
Cash payments to suppliers for the provision of goods and services			(794,335	)		(781,212	)
Cash payments relating to variable leases			(380	)		(578	)
Other payments related to operating activities			(9,814	)		(15,056	)
Net cash generated from operating activities			298,091			161,414
Dividends received			1,403			4,310
Interest paid			(41,576	)		(36,466	)
Interest paid on lease liabilities			(720	)		(572	)
Interest received			2,375			12,043
Income taxes paid			(71,587	)		(80,601	)
Other cash inflows (1)			43,916			66,858
Net cash generated from operating activities			231,902			126,986
Cash flows from (used in) investing activities
Proceeds from the sale of equity instruments			10,123			1,148
Proceeds from the sale of property, plant and equipment			49			25
Other payments to acquire interest in joint ventures			-			(562	)
Acquisition of property, plant and equipment			(167,099	)		(156,931	)
Proceeds from sales of intangible assets			12,147			3,925
Proceeds (payments) related to futures, forward options and swap contracts			(578	)		(243	)
Purchases of intangible assets			-			(287	)
Loans to related parties			15,000			(3,500	)
Cash flows proceeds from the sale of interests in joint ventures			8,339			-
Other cash (outflows) inflows (2)			(380,440	)		492
Cash flow used in investing activities			(502,459	)		(155,933	)

(1) Other inflows of cash from operating activities include net increases (decreases) of value added tax, banking expenses, expenses associated with obtaining loans and taxes associated with interest payments.

(2) Other inflows (outflows) of cash include investments and redemptions of time deposits and other financial instruments that do not qualify as cash and cash equivalent in accordance with IAS 7, paragraph 7, since they mature in more than 90 days from the original investment date.

The accompanying notes form an integral part of these consolidated interim financial statements.

5 

Notes to the Consolidated Unaudited Interim Financial Statements 
June 30, 2021  

Consolidated Unaudited Interim Statements of Cash Flows (Unaudited)

 

			For the period from January to June of the year
			2021			2020
Consolidated Statements of Cash Flows	Note N°		ThUS$			ThUS$
Cash flows generated from (used in) financing activities
Repayment of lease liabilities				(3,967	)		(3,467	)
Proceeds from long-term loans				-			400,000
Repayment of borrowings				(7,055	)		(257,506	)
Paidd dividends				(77,285	)		(116,121	)
Capital stock increase				1,100,639			-
Net cash generated from  financing activities				1,012,332			22,906
Net Increase in cash and cash equivalents before the effect of changes in the exchange rate				741,775			(6,041	)
Effects of exchange rate fluctuations on cash and cash equivalents				(8,024	)		(858	)
Increase (decrease) in cash and cash equivalents				733,751			(6,899	)
Cash and cash equivalents at beginning of period				509,102			588,530
Cash and cash equivalents at end of period		10		1,242,853			581,631

The accompanying notes form an integral part of these consolidated interim financial statements.

6 

Notes to the Consolidated Unaudited Interim Financial Statements 
June 30, 2021  

Consolidated Unaudited Statements of Changes in Equity (Unaudited)

	Share capital	Foreign currency translation reserves		Hedge reserves		Gains and losses from financial assets reserve		Actuarial gains and losses from defined benefit plans reserve		Other miscellaneous reserves		Total reserves		Retained earnings		Equity attributable to owners of the Parent		Non- controlling interests		Total Equity
Consolidated Statements of Changes in Equity	ThUS$	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Equity at January 1, 2021	477,386	(11,569	)	4,491		6,872		(8,680	)	16,318		7,432		1,638,267		2,123,085		39,493		2,162,578
Net profit	-	-		-		-		-		-		-		157,773		157,773		2,852		160,625
Other comprehensive income	-	2,045		(14,924	)	(9,188	)	3,586		-		(18,481	)	-		(18,481	)	118		(18,363	)
Comprehensive income	-	2,045		(14,924	)	(9,188	)	3,586		-		(18,481	)	157,773		139,292		2,970		142,262
Sale of equity instruments irrevocably recognized in OCI	-	-		-		(9,764	)	-		-		(9,764	)	9,764		-		-		-
Dividends (1)	-	-		-		-		-		-		-		(157,773	)	(157,773	)	(4,443	)	(162,216	)
Capital stock increase	1,100,638	-		-		-		-		-		-		-		1,100,638		-		1,100,638
Other (decrease) increase in equity	-	-		-		-		-		(3,406	)	(31,651	)	106		(3,300	)	-		(3,300	)
Total changes in equity	1,100,638	2,045		(14,924	)	(18,952	)	3,586		(3,406	)	(3,406	)	9,870		1,078,857		(1,473	)	1,077,384
Equity as of June 30, 2021	1,578,024	(9,524	)	(10,433	)	(12,080	)	(5,094	)	12,912		(24,219	)	1,648,137		3,201,942		38,020		3,239,962

	Share capital	Foreign currency translation reserves		Hedge reserves		Gains and losses from financial assets reserve		Actuarial gains and losses from defined benefit plans reserve		Other miscellaneous reserves	Total reserves		Retained earnings		Equity attributable to owners of the Parent		Non- controlling interests		Total Equity
Consolidated Statements of Changes in Equity	ThUS$	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Equity at January 1, 2020	477,386	(25,745	)	7,196		(270	)	(9,490	)	14,086	(14,223	)	1,623,104		2,086,267		48,205		2,134,472
Net Profit	-	-		-		-		-		-	-		95,821		95,821		868		96,689
Other comprehensive income	-	(1,406	)	(11,641	)	595		111		-	(12,341	)	-		(12,341	)	334		(12,007	)
Comprehensive income	-	(1,406	)	(11,641	)	595		111		-	(12,341	)	95,821		83,480		1,202		84,682
Dividends (1)	-	-		-		-		-		-	-		(95,821	)	(95,821	)	(2,756	)	(98,577	)
Other increase (decrease) in equity	-	-		-		-		-		1,368	1,368		-		1,368		(2,279	)	(911	)
Total changes in equity	-	(1,406	)	(11,641	)	595		111		1,368	(10,973	)	-		(10,973	)	(3,833	)	(14,806	)
Equity as of June 30, 2020	477,386	(27,151	)	(4,445	)	325		(9,379	)	15,454	(25,196	)	1,623,104		2,075,294		44,372		2,119,666

(1) See Note 20.7

The accompanying notes form an integral part of these consolidated interim financial statements.

7 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

Glossary

The Following capitalized terms un these notes will have the following meaning:

“ADS’’ American Depositary Shares;

“CAM’’ Arbitration and Mediation Center of the Santiago Chamber of Commerce;

“CCHEN’’ Chilean Nuclear Energy Commission;

“CCS’’ cross currency swap;

“CINIIF’’ International Financial Reporting Interpretations Committee;

“CMF’’ Financial Market Commission;

“Directors’ Committee” The Company’s Directors’ Committee;

“Corporate Governance Committee’’ The Company’s Corporate Governance Committee;

“Health, Safety and Environment Committee’’ The Company’s Health, Safety and Environment Committee;

“Lease Agreement’’ the mining concessions lease agreement signed by SQM Salar and Corfo in 1993, as subsequently amended;

“Project Contract” project contract for Salar de Atacama undersigned by Corfo and SQM Salar in 1993, as subsequently amended”;

“Corfo” Chilean Economic Development Agency;

“DCV’’ Central Securities Depository;

“DGA’’ General Directorate of Water Resources;

“Board” The Company’s Board of Directors;

“Dollar’’ o “US$’’ Dollars of the United States of America;

“DPA’’ Deferred Prosecution Agreement;

“EIEP’’ Passive foreign investment company;

“United States” United States of America;

“FNE’’ Chilean National Economic Prosecutor's Office;

“Management’’ the Company’s management;

"SQM Group’’ The corporate group composed of the Company and its subsidiaries

“Pampa Group’’ Jointly the Sociedad de Inversiones Pampa Calichera S.A., Potasios de Chile S.A. and Inversiones Global Mining (Chile) Limitada;

“IASB’’ International Accounting Standards Board;

“SSI’’ Staff severance indemnities;

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Notes to the Consolidated Interim Financial Statements
June 30, 2021   

“IFRIC’’ International Financial Reporting Interpretations Committee;

“IPC” Consumer Price Index;

“IRS” interest rate swap;

“Securities Market Law” Securities Market Law No. 18,045;

“Corporate Law'' Ley 18,046 on corporations;

“ThUS$'' thousands of Dollars;

“MUS$'' millions of Dollars;

“IAS” International Accounting Standard;

“IFRS” International Financial Reporting Standard;

“ILO” International Labour Organization;

“WHO” World Health Organization;

“Pesos’’ or “Ch$” Chilean pesos, legal tender in Chile;

“SEC’’ Securities and Exchange Commission;

“Sernageomin’’ National Geology and Mining Service;

“SIC’’ Standard Interpretations Committee;

“SII” Chilean Internal Revenue Service;

“SMA” Environmental Superintendent’s Office;

“Company” Sociedad Química y Minera de Chile S.A.;

“SQM Industrial’’ SQM Industrial S.A.;

“SQM NA’’ SQM North America Corporation;

“SQM Nitratos’’ SQM Nitratos S.A.;

“SQM Potasio’’ SQM Potasio S.A.;

“SQM Salar’’ SQM Salar S.A.;

“Tianqi’’ Tianqi Lithium Corporation; and

“UF’’ Unidad de Fomento (a Chilean Peso based inflation indexed currency unit);

“WACC’’ Weighted Average Cost of Capital.

9 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

Note 1   Identification and Activities of the Company and Subsidiaries

1.1 Historical background

Sociedad Química y Minera de Chile S.A. is an open stock corporation founded under the laws of the Republic of Chile and its Chilean Tax Identification Number is 93.007.000-9.

The Company was incorporated through a public deed dated June 17, 1968 by the public notary of Santiago Mr. Sergio Rodríguez Garcés. Its existence was approved by Decree No. 1,164 of June 22, 1968 of the Ministry of Finance, and it was registered on June 29, 1968 in the Registry of Commerce of Santiago, on page 4,537 No. 1,992. SQM’s headquarters are located at El Trovador 4285, Floor 6, Las Condes, Santiago, Chile, The Company's telephone number is +(56 2) 2425-2000.

The Company is registered in the CMF under number 184 of March 18, 1983 and is therefore subject to oversight by that entity.

1.2 Main domicile where the Company performs its production activities

The Company’s main domiciles are: Calle Dos Sur plot No. 5 - Antofagasta; Arturo Prat 1060 - Tocopilla; Administration Building w/n - Maria Elena; Administration Building w/n Pedro de Valdivia - María Elena, Anibal Pinto 3228 - Antofagasta, Kilometer 1378 Ruta 5 Norte Highway - Antofagasta, Coya Sur Plant w/n - Maria Elena, kilometer 1760 Ruta 5 Norte Highway - Pozo Almonte, Salar de Atacama (Atacama Saltpeter deposit) potassium chloride plant w/n - San Pedro de Atacama, potassium sulfate plant at Salar de Atacama w/n – San Pedro de Atacama, Minsal Mining Camp w/n CL Plant CL, Potassium– San Pedro de Atacama, formerly the Iris Saltpeter office w/n, Commune of Pozo Almonte, Iquique.

1.3 Codes of main activities

The codes of the main activities as established by the CMF, as follows:

-      1700 (Mining)

-      2200 (Chemical products)

-      1300 (Investment)

1.4 Description of the nature of operations and main activities

The products of the Company are mainly derived from mineral deposits found in northern Chile where mining takes place and caliche and brine deposits are processed.

(a) Specialty plant nutrition: Four main types of specialty plant nutrients are produced: potassium nitrate, sodium nitrate, sodium potassium nitrate and specialty blends. In addition, other specialty fertilizers are sold including third party products.

(b) Iodine: The Company produces iodine and iodine derivatives, which are used in a wide range of medical, pharmaceutical, agricultural and industrial applications, including x-ray contrast media, polarizing films for LCD and LED, antiseptics, biocides and disinfectants, in the synthesis of pharmaceuticals, electronics, pigments and dye components.

(c) Lithium: The Company produces lithium carbonate, which is used in a variety of applications, including electrochemical materials for batteries, frits for the ceramic and enamel industries, heat-resistant glass (ceramic glass), air conditioning chemicals, continuous casting powder for steel extrusion, primary aluminum smelting process, pharmaceuticals and lithium derivatives. We are also a leading supplier of lithium hydroxide, which is primarily used as an input for the lubricating greases industry and for certain cathodes for batteries.

10 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

(d) Industrial chemicals: The Company produces three industrial chemicals: sodium nitrate, potassium nitrate and potassium chloride. Sodium nitrate is used primarily in the production of glass, explosives, and metal treatment. Potassium nitrate is used in the manufacturing of specialty glass, and it is also an important raw material to produce of frits for the ceramics and enamel industries. Solar salts, a combination of potassium nitrate and sodium nitrate, are used as a thermal storage medium in concentrated solar power plants. Potassium chloride is a basic chemical used to produce potassium hydroxide, and it is also used oil drilling, and to produce carrageenan.

(e) Potassium: The Company produces potassium chloride and potassium sulfate from brines extracted from the Salar de Atacama. Potassium chloride is a commodity fertilizer used to fertilize a variety of crops including corn, rice, sugar, soybean and wheat. Potassium sulfate is a specialty fertilizer used mainly in crops such as vegetables, fruits and industrial crops.

(f) Other products and services: The Company also sells other fertilizers and blends, some of which we do not produce. Mainly potassium nitrate, potassium sulfate and potassium chloride. This business line also includes revenue from commodities, services, interests, royalties and dividends.

11 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

1.5 Other background

(a) Employees

As of June 30, 2021and December 31, 2020, the workforce was as follows:

	As of June 30, 2021			As of December 31, 2020
Employees	SQM S.A.	other subsidiaries	Total	SQM S.A.	other subsidiaries	Total
Executives	31	94	125	30	85	115
Professionals	108	1,230	1,338	94	1,156	1,250
Technicians and operators	266	3,440	3,706	267	3,310	3,577
Foreign employees (1)	16	462	478	17	548	565
Overall total	421	5,226	5,647	408	5,099	5,507

(1) Of foreign employees, 10 are directors.

(b) Main shareholders

As of June 30, 2021, there were 1,605 shareholders.

Following table shows information about the main shareholders of the Company’s Series A or Series B shares in circulation as of June 30, 2021 and 2020, in line with information provided by the DCV, with respect to each shareholder that, to our knowledge, owns more than 5% of the outstanding Series A or Series B shares. The following information is derived from our registry and reports managed by the DCV and informed to the CMF and the Chilean Stock Exchange:

Shareholders as of June 30, 2021	No. of Series A	% of Series A shares			No. of Series B	% of Series B shares		% of total shares
Inversiones TLC SpA (1)	62,556,568		43.80	%	-	-		21.90	%
The Bank of New York Mellon, ADRs	-		-		62,192,010	43.55	%	21.77	%
Sociedad de Inversiones Pampa Calichera S.A. (2)	44,989,231		31.50	%	1,450,970	1.02	%	16.26	%
Potasios de Chile S.A.	18,179,147		12.73	%	-	-		6.36	%
Inversiones Global Mining (Chile) Limitada	8,798,539		6.16	%	-	-		3.08	%
Banco de Chile via State Street	1,290		0.00	%	8,345,921	5.84	%	2.92	%
Banco Santander via foreign investor accounts	-		-		7,902,375	5.53	%	2.77	%
Banco de Chile non-resident third party accounts	-		-		7,128,357	4.99	%	2.50	%
Euroamerica C De B S.A.	-		-		5,358,199	3.75	%	1.88	%
Inversiones la Esperanza de Chile Limitada	4,147,263		2.90	%	-	-		1.45	%
Banco de Chile via Citi NA New York Clients	87,463		0.06	%	3,927,882	2.75	%	1.41	%
AFP Habitat S.A. for Pension Fund C	-		-		3,300,991	2.31	%	1.16	%

12 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

Shareholders as of December 31, 2020	No. of Series A	% of Series A shares		No. of Series B	% of Series B shares		% of total shares
Inversiones TLC SpA (1)	62,556,568	43.80	%	-	-		23.77	%
The Bank of New York Mellon, ADRs	-	-		50,792,452	42.19	%	19.30	%
Sociedad de Inversiones Pampa Calichera S.A. (2)	44,894,152	31.43	%	922,971	0.77	%	17.41	%
Potasios de Chile S.A.	18,179,147	12.73	%	-	-		6.91	%
Inversiones Global Mining (Chile) Limitada	8,798,539	6.16	%	-	-		3.34	%
Euroamerica C de B S. A.	1,418	-		8,788,517	7.30	%	3.34	%
Banco Santander via foreign investor accounts	-	-		7,294,827	6.06	%	2.77	%
Banco de Chile via State Street	-	-		6,971,782	5.79	%	2.65	%
Banco de Chile non-resident third party accounts	-	-		6,129,339	5.09	%	2.33	%
Inversiones la Esperanza de Chile Limitada	4,147,263	2.90	%	46,500	0.04	%	1.59	%
Banchile Corredora de Bolsa S. A.	459,202	0.32	%	2,426,758	2.02	%	1.10	%
Banco de Chile on behalf of Citibank NA New York customers	177,463	0.12	%	1,732,249	1.44	%	0.73	%

(1) As reported by DCV, which records the Company's shareholders' register as of June 30, 2021 and December 31, 2020, Inversiones TLC SpA, a subsidiary wholly owned Tianqi Lithium Corporation, is the direct owner of 62,556,568 shares of The Company equivalent to 21.90% of SQM’s shares. Tianqi Lithium Corporation it owns 5,275,318 Series B SQM shares as reported by Inversiones TLC Spa. So as of June 30, 2021, Tianqi Lithium Corporation owns 23.75% of SQM's total Series A shares and ADS holders of Series B shares.

(2) as of June 30, 2021 Sociedad de Inversiones Pampa Calichera S.A. has 53,698,875 Series A and B shares; 7,258,674 Series B shares are held by different brokers. As of December 31, 2020 Sociedad de Inversiones Pampa Calichera S.A. has 57,235,201 Series A and B shares; 11,418,078 Series B shares are held by different brokers.

As of December 31, 2020, Tianqui Lithium Corporation holds 25.86% of all SQM shares through Series A and B shares.

1.6 Covid-19

In January 2020, the WHO deemed COVID-19 a global pandemic. In March 2020, the Chilean Ministry of Health declared a nationwide State of Emergency. As a precaution, our management has implemented several measures to help reduce the speed at which the coronavirus spreads, including measures to mitigate the spread in the workplace, significant reductions in employee travel and a mandatory quarantine for people who have arrived from high risk destinations, in consultation with governmental and international health organization guidelines, and will continue to implement measures consistent with evolving coronavirus situation.

The Company reports on the following points in relation to the outbreak of the COVID-19 virus and its being declared to be a global pandemic by the WHO:

(1) Regarding the financial and operational effects that this situation could mean for the Company, it is worth noting that the Company sells its products worldwide, with Asia, Europe and North America being its main markets. Border closures, decrease in commercial activity and difficulties and disruptions in the supply chains in the markets in which we sell have impacted our ability to fulfill our previous sales volume estimates, the impact on our sales volumes and average prices will depend on the duration of the virus in different markets, the efficiency of the measures implemented to contain the spread of the virus in each country and fiscal incentives that may be implemented in different jurisdictions to promote economic recovery.

13 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

For now, our operations have not seen any material impacts related to the outbreak of COVID-19 virus.

We have taken measures to mitigate the impacts of this health emergency on our employees and limit the impact it could have on our operations (described below in point 2).

(2) Regarding the measures that management has adopted or intends to adopt to mitigate possible financial and/or operational effects, we inform that the Company has implemented a series of measures in its operations in Chile and abroad that seek to protect its workers and reduce the speed at which the virus spreads. The measures adopted by the Company are:

(a) The flexibility of the working day, arrival and departure times, together with the incentive to work from home in those cases where this is possible.

(b) Avoidance of crowds, seminars and large meetings in the Company´s offices and operating facilities.

(c) Strengthening personal hygiene protocols (use of alcohol-based gel, masks, etc.) and sanitation in plants, cafeterias and offices.

(d) Significant reduction in domestic and international travel, along with obligatory quarantine for people who have arrived from high risk destinations.

(e) The costs associated with the measures implemented by the company correspond primarily to increased expenses in transportation, supplies, room and board, among others.

(3) We hereby inform that we do not currently have any other information that management believes is relevant to provide.

1.7 Capital stock increase

On April 28, 2021, the Company completed a US$1.1 billion capital stock increase. The capital stock increase was approved at an extraordinary shareholders’ meeting held by the Company on January 22, 2021. It included a mandatory 30-day pre-emptive rights offering, under Chilean law, to existing holders of the Company’s Series B common stock and a corresponding pre-emptive rights offering to existing holders of American Depositary Shares (ADSs). Existing shareholders received transferable share rights to subscribe for shares of Series B common stock at a subscription price of US$50 per share and the share rights were traded in Chile on the Santiago Stock Exchange and the Electronic Stock Exchange. Existing ADS holders received transferable ADS rights to subscribe for ADSs at a subscription price of US$50 per ADS and the ADS rights were traded in the U.S. on the New York Stock Exchange. The pre-emptive rights offerings ended on April 24, 2021 with respect to the share rights in Chile and on April 19, 2021 with respect to the ADS rights in the U.S. Of the 22,441,932 new Series B shares offered in the pre-emptive rights offerings, a total of 21,687,549 Series B shares (including shares in the form of ADSs), i.e. almost 97% of the Serie B shares offered, were subscribed in the preemptive rights offerings. The remaining 754,383 Series B shares that were not subscribed for in the pre-emptive rights offerings were offered and placed in auctions (remates) conducted through the Santiago Stock Exchange to investors in Chile and outside Chile (including in the United States) on April 28, 2021, at an average price of approximately US$54 per share.

As of June 30, 2021, contributed capital is US$ 1.1 billion net of expenses and others amounting to ThUS$ 24,212.

1.8 Approval of investment in Mount Holland

On February 17, 2021, the Board of Directors approved the investment in the Mount Holland lithium project in Western Australia. SQM's share of the project investment is expected to be approximately US$700 million, between 2021 and 2025. The feasibility study confirms an expected initial production capacity of 50,000 metric tons of lithium hydroxide during the second half of 2024. See Note 9.5.

14 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

Note 2 Basis of presentation for the consolidated financial statements

2.1 Accounting period

These consolidated financial statements cover the following periods:

(a) Consolidated Interim Statements of Financial Position as of June 30, 2021 and December 31, 2020.

(b) Consolidated Interim Statements of Income for the three and six-month periods ended June 30, 2021 and 2020.

(c) Consolidated Interim Statements of Comprehensive Income for the three and six-month periods ended June 30, 2021 and 2020.

(d) Consolidated Interim Statements of Changes in Equity as of June 30, 2021 and 2020.

(e) Consolidated Interim Statements of Cash Flows as of June 30, 2021 and 2020.

2.2 Consolidated financial statements

The consolidated interim financial statements of the Company and its subsidiaries were prepared in accordance with la IAS 34 “Interim Financial Reporting”.

The consolidated interim financial statements should be read in conjunction with the annual financial statements as of December 31, 2020.

The accounting principles and criteria used in these interim financial statements were consistently applied throughout both periods and to the annual financial statements as of December 31, 2020. There have been no changes in the methods used to calculate accounting estimates during the periods reported.

15 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

2.3 Basis of measurement

The consolidated financial statements have been prepared on the historical cost basis except for the following:

(a) Inventories are recorded at the lower of cost and net realizable value.

(b) Financial derivatives measured at fair value.

(c) Certain financial investments measured at fair value with an offsetting entry in other comprehensive income.

2.4 Accounting pronouncements

New accounting pronouncements

(a) The following standards, interpretations and amendments are mandatory for the first time for annual periods beginning on January 1, 2021:

Amendments and improvements	Description	Mandatory for annual periods beginning on or after
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 “Reform to the referential interest rate (IBOR)- Phase 2” Published in August 2020.	These amendments provide certain simplifications in relation to the reform to the referential interest rates, including the replacement of a reference rate by an alternative.	01-01-2021
Amendment to IFRS 16 “Lease Concessions” - Published in March 2021.	This amendment extends by one year the period of application of the practical case of IFRS 16 Leases (contained in the amendment to that standard published in May 2020), with the purpose of assisting lessees in accounting for COVID-19 related rental concessions. The amendment is effective for annual periods beginning on or after April 1, 2021. However, early adoption is permitted even for financial statements not authorized for issue as of March 31, 2021.	01-01-2021

Management determined that the adoption of the aforementioned standards, amendments and interpretations did not significantly impact the company’s consolidated financial statements.

16 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

(b) Standards, interpretations and amendments issued that had not become effective for financial statements beginning on January 1, 2021 and which the Company has not adopted early are as follows:

Standards and Interpretations	Description	Mandatory for annual periods beginning on or after
Amendment to IAS 1 “Presentation of financial statements” on classification of liabilities.	These amendments clarify that the liabilities will be classified as current or non-current depending on the rights that exist at the close of the reporting period. The classification is not affected by the expectations of the entity or the events subsequent to the report date (for example, the receipt of a waiver or noncompliance with the pact). The amendment also clarifies what IAS 1 means when referring to “liquidation” of a liability.  The amendment must be applied retroactively in accordance with IAS 8. In May 2020, the IASB issued an “Exposure Draft” proposing deferral of the effective application date to January 1, 2023.	01-01-2022
Reference to the Conceptual Framework - Amendments to IFRS 3.	Minor modifications were made to IFRS 3 “Definition of a Business” to update references to the conceptual framework for financial reporting without changing the requirements of business combinations.	01-01-2022
Amendment to IAS 16 “Property, plant and equipment”.	This prohibits companies from deducting from the cost of the property any revenue received from the sale of articles produced while the company is preparing the asset for its anticipated use. The company must recognize this sales revenue and associated costs in the profit or loss for the fiscal year.	01-01-2022
Amendment to IAS 37, “Provisions, contingent liabilities and contingent assets”.	This clarifies for onerous contracts which inevitable costs a company must include to assess whether a contract will result in a loss.	01-01-2022
Annual improvements to IFRS standards, 2018-2020 cycle. The following improvements were finalized in May 2020:
IFRS 9 Financial Instruments.	This clarifies which fees must be included in the 10% test for the derecognition of financial liabilities.	01-01-2022
IFRS 16 Leases.	Modification of illustrative example 13 to eliminate the illustration of lessor payments in relation to improvements to rental properties, to eliminate any confusion as to the treatment of lease incentives.	01-01-2022
Amendments to IAS 1: “Presentation of the Financial Statements” and IAS 8 “Accounting policies, changes in accounting estimates and errors”.	The amendments are intended to improve disclosures of accounting policies and to help users of financial statements distinguish between changes in accounting estimates and changes in accounting policies.	01-01-2023
Amendment to IAS 12 - Deferred taxes related to assets and liabilities that arise from a single transaction.	These amendments require companies to recognize deferred taxes on transactions that result in equal amounts in taxable and deductible temporary differences in the initial recognition.	01-01-2023
Amendment to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures”, Published in September 2014.	These amendments address an inconsistency between the requirements in IFRS 10 and those in IAS 28 in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognized when a transaction involves a business (whether it is housed in a subsidiary or not), A partial gain or loss is recognized when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary.	undetermined

Management believes that the adoption of the above standards, amendments and interpretations will not have a significant impact on the Company’s financial statements.

17 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

2.5 Basis of consolidation

(a)            Subsidiaries

The Company established control as the basis of consolidation of its financial statements. The Company controls a subsidiary when it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary.

The consolidation of a subsidiary starts when the Group controls it and it is no longer included in the consolidation when this control is lost.

Subsidiaries are consolidated through a line by line method, adding items that represent assets, liabilities, income and expenses with a similar content, and eliminating operations between companies within the SQM Group.

Results for dependent companies acquired or disposed of during the period are included in the consolidated accounts from the date on which control is transferred to the SQM Group or until the date when this control ends, as relevant.

To account for an acquisition of a business, the Company uses the acquisition method. Under this method, the acquisition cost is the fair value of assets delivered, equity securities issued, and incurred or assumed liabilities at the date of exchange. Assets, liabilities and contingencies identifiable assumed in a business combination are measured initially at fair value at the acquisition date. For each business combination, the Company will measure the non-controlling interest of the acquiree either at fair value or as proportional share of net identifiable assets of the acquire.

The details of the consolidated companies can be found in Note 7.

18 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

2.6 Investments in associates and joint ventures

Investments in joint arrangements are classified as joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement.

(a) Joint operations

The Company recognizes its direct right to the assets, liabilities, income and expenses of the joint arrangement.

(b) Joint ventures and investments in associates

Interests in companies over which joint control is exercised (joint ventures) or where an entity has significant influence (associates) are recognized using the equity accounting method. Significant influence is presumed when the investor owns over 20% of the investee’s share capital. The investment is recognized using this method in the statement of financial position at cost plus changes subsequent to acquisition and includes the proportional share of the associate’s equity. For these purposes, the percentage interest in the associate is used. The associated acquired goodwill is included in the investee’s book value and is not amortized. The debit or credit to the income statement reflects the proportional share of the profit or loss of the associate.

Unrealized gains from transactions with joint ventures or associates are eliminated in accordance with the Company's percentage interest in such entities. Any unrealized losses are also eliminated, unless that transaction provides evidence that the transferred asset is impaired.

Changes in associate’s or joint ventures equity are recognized proportionally with a charge or credit to "Other Reserves" and are classified according to their origin. The reporting dates of the associate or joint ventures, the Company and related policies are similar for equivalent transactions and events in similar circumstances. In the event that significant influence is lost, or the investment is sold, or held for sale, the equity method is suspended, not recognizing the proportional share of the gain or loss. If the resulting value under the equity method is negative, the share of profit or loss is reflected as zero in the consolidated financial statements, unless there is a commitment by the Company to restore the capital position of the Company, in which case the related risk provision and expense are recorded.

Dividends received by these companies are recorded by reducing the value of the investment and are shown in cash flows from operating activities, and the proportional share of the gain or loss recognized in accordance with the equity method is included in the consolidated income statement under "Share of Gains (Losses) of Associates and Joint Ventures Accounted for Using the Equity Method''.

19 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

Note 3       Significant accounting policies

3.1 Classification of balances as current and non-current

In the consolidated statement of financial position, balances are classified in consideration of their recovery (maturity) dates; i.e., those maturing within a period equal to or less than 12 months are classified as current counted from the closing date of the consolidated financial statements and those with maturity dates exceeding the aforementioned period are classified as non-current.

The exception to the foregoing relates to deferred taxes, which are classified as non-current, regardless of the maturity they have.

3.2 Functional and presentation currency

The Company’s consolidated financial statements are presented in United States dollars, without decimal places, which is the Company’s functional and presentation currency and is the currency of the main economic environment in which it operates. Consequently, the term foreign currency is defined as any currency other than the U.S. dollar.

3.3 Accounting policy for foreign currency translation

(a)            SQM group entities:

The revenue, expenses, assets and liabilities of all entities that have a functional currency other than the presentation currency are converted to the presentation currency as follows:

- Assets and liabilities are converted at the closing exchange rate prevailing on the reporting date.

- Revenues and expenses of each profit or loss account are converted at monthly average exchange rates.

- All resulting foreign currency translation gains and losses are recognized as a separate component in translation reserves.

In consolidation, foreign currency differences arising from the translation of a net investment in foreign entities are recorded in shareholder’s equity (“foreign currency translation reserve”). At the date of disposal, such foreign currency translation differences are recognized in the statement of income as part of the gain or loss from the sale.

20 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

The main exchange rates and UF used to translate monetary assets and liabilities, expressed in foreign currency at the end and average of each period in respect to U.S. dollars, are as follows:

	Closing exchange rates				Average exchange rates
	As of June 30, 2021		As of December 31, 2020		As of June 30, 2021		As of December 31, 2020
Currencies	ThUS$		ThUS$		ThUS$		ThUS$
Brazilian real		4.99		5.18		5.03		5.14
New Peruvian sol		3.86		3.62		3.91		3.60
Japanese yen		111.10		103.30		110.20		103.81
Euro		0.84		0.81		0.83		0.82
Mexican peso		19.94		19.93		20.04		19.97
Australian dollar		1.33		1.30		1.31		1.33
Pound Sterling		0.72		0.74		0.71		0.74
South African rand		14.31		14.61		13.93		14.88
Chilean peso		727.76		710.95		726.83		731.92
Chinese yuan		6.47		6.51		6.43		6.53
Indian rupee		74.33		73.30		73.68		73.65
Thai Baht		32.02		29.94		31.47		30.08
Turkish lira		8.70		7.36		8.63		7.70
UF (*)		40.82		40.89		40.82		39.73

(*) US$ per UF

(b)       Transactions and balances

The Company’s non-monetary transactions in currencies other than the functional currency (Dollar) are translated to the respective functional currencies of Group entities at the exchange rate on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. All differences are recorded in the statement of income except for all monetary items that provide an effective hedge for a net investment in a foreign operation. These items are recognized in other comprehensive income until disposal of the investment, when they are recognized in the statement of income. Charges and credits attributable to foreign currency translation differences on those hedge monetary items are also recognized in other comprehensive income.

Non-monetary assets and liabilities that are measured at historical cost in a foreign currency are retranslated to the functional currency at the historical exchange rate of the transaction. Non-monetary items that are measured based on fair value in a foreign currency are translated using the exchange rate at the date on which the fair value is determined.

21 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

3.4 Consolidated statement of cash flows

Cash equivalents correspond to highly liquid short-term investments that are easily convertible into known amounts of cash and subject to insignificant risk of changes in their value and mature in less than three months from the date of acquisition of the instrument.

For the purposes of the statement of cash flows, cash and cash equivalents comprise cash and cash equivalents as defined above.

The statement of cash flows present cash transactions performed during the period, determined using the direct method.

3.5 Financial assets

Management determines the classification of its financial assets, in accordance with the provisions of IFRS 9, at fair value (either through other comprehensive income, or through profit or loss), and at amortized cost. The classification depends on the business model of the entity to manage the financial assets and the contractual terms of the cash flows.

In the initial recognition, the Company measures its financial assets at fair value more or less, in the case of a financial asset that is not accounted for at fair value through profit or loss, the transaction costs that are directly attributable to the acquisition of the financial asset on the date when the Company commits to the purchase or sale of an asset. In the case of account receivables and other accounts receivables, the transaction price at the initial recognition is measured in accordance with the provisions of IFRS 15.

After initial recognition, the Company measures its financial assets according to the Company's business model for managing its financial assets and the contractual terms of its cash flows:

(a) Financial instruments measured at amortized cost. Financial assets that meet the following conditions are included in this category (i) the business model that supports it aims to maintain the financial assets to obtain the contractual cash flows and the contractual conditions of the financial asset give place, on specified dates, to cash flows that are only payments of the principal and interest on the outstanding principal amount. The Company’s financial assets that meet these conditions are: (ii) cash equivalents; (iii) related party receivables; (iv) trade debtors; (v) other receivables.

(b) Financial instruments at fair value. A financial asset should be measured at fair value through profit or loss or fair value through other comprehensive income, depending on the following:

(i) "Fair Value Through Other Comprehensive Income": Assets held to collect contractual cash flows and to be sold, where the asset cash flows are only capital and interest payments, are measured at fair value through other comprehensive income. Changes in book values are through other comprehensive income, except for the recognition of impairment losses, interest income and exchange gains and losses, which are recognized in the income statement. When a financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to the income statement. Interest income from these financial assets is included in financial income using the effective interest method. Exchange gains and losses are presented in the income statement and impairment losses are separately presented in the income statement.

(ii) "Fair Value Through Profit and Loss": Assets that do not meet the amortized cost or "Fair Value Through Other Comprehensive Income" criteria are valued at "Fair Value Through Profit and Loss".

(c) Financial equity assets at fair value through other comprehensive income. Equity instruments that are not classified as held for trading and which the Group has irrevocably chosen to recognize in this category. Amounts presented in other comprehensive income will not be subsequently transferred to profit or loss.

22 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

3.6 Financial assets impairment

The Company evaluates expected credit losses associated with its debt instruments carried at amortized cost and fair value through other comprehensive income. The impairment method used depends on whether there has been a significant increase in credit risk.

The Company applies the IFRS 9 simplified approach to measure expected credit losses using the lifetime expected loss on all trade receivables. Expected credit losses are measured by grouping receivables by their shared credit risk characteristics and days overdue.

The Company has concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for contract assets. Expected loss rates are based on sales payment profiles and historical credit losses within this period. Historical loss rates are adjusted to reflect current expectations and information regarding macroeconomic factors that affect the ability of customers to meet their commitments.

Impairment losses from receivables and contract assets are shown as net impairment losses in the line “Impairment of financial assets and reversal of impairment losses,” see Note 22.7. The subsequent recovery of previously canceled amounts are credited to the same line.

3.7 Financial liabilities

Management determines the classification of its financial liabilities in accordance with the provisions of IFRS 9, at fair value or at amortized cost. The classification depends on the business model of the entity to manage the financial assets and the contractual terms of the cash flows.

At the initial recognition, the Company measures its financial liabilities by their fair value more or less, in the case of a financial liability that is not accounted for at fair value through profit or loss, the transaction costs that are directly attributable to the acquisition of the financial liability. After initial recognition, the Company measures its financial liabilities at amortized cost unless the Company, at the initial moment, irrevocably designates the financial liability as measured at fair value through profit or loss.

Financial liabilities measured at amortized cost are commercial accounts payable and other accounts payable and other financial liabilities.

Amortized cost is based using the effective interest rate method. Amortized cost is calculated by considering any premium or discount on the acquisition and includes transaction costs that are an integral part of the effective interest rate.

Financial liabilities are recorded as not current when they mature in more than 12 months and as current when they mature in less than 12 months.

3.8 Reclassification of financial instruments

When the Company changes its business model for managing financial assets, it will reclassify all its financial assets affected by the new business model. Financial liabilities cannot be reclassified.

3.9          Financial instruments derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred; and the control of the financial assets has not been retained.

23 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

The Company derecognizes a financial liability when its contractual obligations or a part of these are discharged, paid to the creditor or legally extinguished from the principle responsibility contained in the liability.

3.10        Derivative and hedging financial instruments

Derivatives are recognized initially at fair value as of the date on which the derivatives contract is signed and, they are subsequently assessed at fair value. The method for recognizing the resulting gain or loss depends on whether the derivative has been designated as an accounting hedge instrument and, if so, it depends on the type of hedging, which may be as follows:

a) Fair value hedge of assets and liabilities recognized (fair value hedges);

b) Hedging of a single risk associated with a recognized asset or liability or a highly probable forecast transaction (cash flow hedge).

At the beginning of the transaction, the Company documents the relationship that exists between hedging instruments and those items hedged, as well as their objectives for risk management purposes and the strategy to conduct different hedging operations.

The Company also documents its evaluation both at the beginning and at the end of each period if the derivatives used in hedging transactions are highly effective to offset changes in the fair value or in cash flows of hedged items.

The fair value of derivative instruments used for hedging purposes is shown in Note 13.3. Changes in the cash flow hedge reserve are classified as a non-current asset or liability if the remaining expiration period of the hedged item is more than 12 months, and as a current asset or liability if the remaining expiration period of the hedged item is less than 12 months.

Derivatives that are not designated or do not qualify as hedging derivatives are classified as current assets or liabilities, and changes in the fair value are directly recognized through profit or loss.

a) Fair value hedge

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in profit or loss, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The gain or loss relating to the effective portion of interest rate swaps that hedge fixed rate borrowings is recognized in profit or loss within finance costs, together with changes in the fair value of the hedged fixed rate borrowings attributable to interest rate risk. The gain or loss relating to the ineffective portion is recognized in profit or loss within other income or other expenses. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortized to profit or loss over the period to maturity using a recalculated effective interest rate.

b) Cash flow hedges

The effective portion of the gain or loss on the hedging instrument is initially recognized with a debit or credit to other comprehensive income, while any ineffective portion is immediately recognized with a debit or credit to income, as appropriate depending on the nature of the hedged risk. The amounts accumulated in net equity are carried over to results when the hedged items are settled or when these have an impact on results.

When a hedging instrument no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in equity at that time remains in equity until the forecast transaction occurs.

When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of hedging that were reported in equity are immediately reclassified to profit or loss.

24 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

3.11        Derivative financial instruments not considered as hedges

Derivative financial instruments not considered as hedges are recognized at fair value with the effect in the results of the year. The Company has derivative financial instruments to hedge foreign currency risk exposure.

The Company continually evaluates the existence of embedded derivatives in both its contracts and in its financial instruments. As of June 30, 2021, and December 31, 2020, the Company does not have any embedded derivatives.

3.12        Deferred acquisition costs from insurance contracts

Acquisition costs from insurance contracts are classified as prepayments and correspond to insurance contracts in force, recognized using the straight-line method and on an accrual basis independent of payment date. These are recognized under other non-financial assets.

3.13        Leases

(a) Right-of-use assets

The Company recognizes right-of-use assets on the initial lease date (i.e., the date on which the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, adjusted by any new measurement of the lease liability. The cost of right-of-use assets includes the amount of recognized lease liabilities, direct initial costs incurred and lease payments made on the start date or sooner, less the lease incentives received. Unless the Company is reasonably sure it will take ownership of the leased asset at the end of the lease period, the assets recognized through right-of-use are depreciated in a straight line during the shortest period of their estimated useful life and lease period. Right-of-use assets are subject to impairment as per “IAS 36 Impairment of Assets”.

(b) Lease liabilities

On the lease start date, the Company recognizes lease liabilities measured at present value of lease payments that will be made during the lease period. Lease payments include fixed payments (including payments that are essentially fixed), less incentives for lease receivables, variable lease payments that are dependent on an index or rate and amounts that are expected to be paid as guaranteed residual value. Lease payments also include the exercise price of a purchase option if the Company is reasonably sure it will exercise this and penalty payments for terminating a lease, if the lease period reflects that the Company will exercise the option to terminate. Variable lease payments that are not dependent on an index or rate are recognized as expenses in the period that produces the event or condition that triggers payment.

When calculating the present value of lease payments, the Company uses the incremental borrowing rate on the initial lease date if the interest rate implicit in the lease cannot be determined easily. After the start date, the lease liability balance will increase to reflect the accumulation of interest and will diminish as lease payments are made. Furthermore, the book value of lease liabilities is remeasured in the event of an amendment, a change in the lease period, a change in the fixed lease payments in substance or a change in the assessment to buy the underlying asset.

Payments made that affect lease liabilities are presented as part of the financing activities in the cash flow statement.

(c) Short-term leases and low-value asset leases

The Company applies the short-term lease recognition exemption to leases with a lease term of 12 months or less starting on the start date and that don’t have a purchase option. It also applies the low-value asset lease recognition exemptions. Lease payments in short-term leases and low-value asset leases are recognized as lineal expenses during the lease term.

25 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

(d)   Significant judgments in the determination of the lease term for contracts with renewal options.

The Company determines the lease term as the non-cancellable period of the lease, together with periods covered by an option to extend the lease if it is reasonably certain that this will be exercised, or any period covered by an option to terminate the lease, if it is reasonably certain that this will not be exercised.

The Company has the option, under some of its leases, to lease assets for additional terms. The Company applies its judgment when assessing whether it is reasonably certain that it will exercise the option to renovate. In other words, it considers all the relevant factors that create an economic incentive for it to exercise the option to renovate. After the start date, the Company reevaluates the lease term if there is a significant event or change in the circumstances that are under its control and affect its capacity to exercise (or not exercise) the option to renovate.

3.14        Inventory measurement

The method used to determine the cost of inventories is the weighted average monthly cost of warehouse storage. In determining production costs for own products, the company includes the costs of labor, raw materials, materials and supplies used in production, depreciation and maintenance of the goods that participate in the production process, the costs of product movement necessary to maintain stock on location and in the condition in which they are found, and also includes the indirect costs of each task such as laboratories, process and planning areas, and personnel expenses related to production, among others.

For finished and in-process products, the company has four types of provisions, which are reviewed quarterly:

(a) Provision associated with the lower value of stock: The provision is directly identified with the product that generates it and involves three types: (i) provision of lower realizable value, which corresponds to the difference between the inventory cost of intermediary or finished products, and the sale price minus the necessary costs to bring them to the same conditions and location as the product with which they are compared; (ii) provision for future uncertain use that corresponds to the value of those products in process that are likely not going to be used in sales based on the company’s long-term plans; (iii) reprocessing costs of products that are unfeasible for sale due to current specifications.

(b) Provision associated with physical differences in inventory: A provision is made for differences that exceed the tolerance considered in the respective inventory process (physical and annual inventories are taken for the productive units in Chile and the port of Tocopilla, the business subsidiaries depend on the last zero ground obtained, but in general it is at least once a year), these differences are recognized immediately.

(c) Potential errors in the determination of stock: The company has an algorithm that is reviewed at least once a year and corresponds to diverse percentages assigned to each inventory based on the product, location, complexity involved in the associated measurement, rotation and control mechanisms.

(d) Provisions undertaken by business subsidiaries: these are historical percentages that are adjusted as zero ground is attained based on normal inventory management.

Inventories of raw materials, materials and supplies for production are recorded at acquisition cost. Cyclical inventories are performed in warehouses, as well as general inventories every three years. Differences are recognized at the moment they are detected. The company has a provision that makes quarterly calculations from percentages associated with each type of material (classification by warehouse and rotation), these percentages use the lower value resulting from deterioration or obsolescence as well as potential losses. This provision is reviewed at least annually, and considers the historical profit and loss obtained in the inventory processes.

26 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

3.15        Non-controlling interests

Non-controlling interests are recorded in the consolidated statement of financial position within equity but separate from equity attributable to the owners of the Parent.

3.16        Related party transactions

Transactions between the Company and its subsidiaries are part of the Company’s normal operations within its scope of business activities. Conditions for such transactions are those normally effective for those types of operations with regard to terms and market prices. The maturity conditions vary according to the originating transaction.

3.17        Property, plant and equipment

Property, plant and equipment are stated at acquisition cost, net of the related accumulated depreciation, amortization and impairment losses that they might have experienced.

In addition to the price paid for the acquisition of tangible property, plant and equipment, the Company has considered the following concepts as part of the acquisition cost, as applicable:

(a) Accrued interest expenses during the construction period that are directly attributable to the acquisition, construction or production of qualifying assets, which are those that require a substantial period prior to being ready for use. The interest rate used is that related to the project’s specific financing or, should this not exist, the average financing rate of the investor company.

(b) The future costs that the Company will have to experience, related to the closure of its facilities at the end of their useful life, are included at the present value of disbursements expected to be required to settle the and its subsequent variation is recorded directly in results.

Having initially recognized provisions for closure and refurbishment, the corresponding cost is capitalized as an asset in “Property, plant and equipment” and amortized in line with the amortization criteria for the associated assets.

Construction-in-progress is transferred to property, plant and equipment in operation once the assets are available for use and the related depreciation and amortization begins on that date.

Extension, modernization or improvement costs that represent an increase in productivity, ability or efficiency or an extension of the useful lives of property, plant and equipment are capitalized as a higher cost of the related assets. All the remaining maintenance, preservation and repair expenses are charged to expense as they are incurred.

The replacement of assets, which increase the asset’s useful life or its economic capacity, are recorded as a higher value of property, plant and equipment with the related derecognition of replaced or renewed elements.

Gains or losses which are generated from the sale or disposal of property, plant and equipment are recognized as income (or loss) in the period and calculated as the difference between the asset’s sales value and its net carrying value.

Costs derived from the daily maintenance of property, plant and equipment are recognized when incurred.

27 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

3.18        Depreciation of property, plant and equipment

Property, plant and equipment are depreciated through the straight-line distribution of cost over the estimated technical useful life of the asset, which is the period in which the Company expects to use the asset. When components of one item of property, plant and equipment have different useful lives, they are recorded as separate assets. Useful lives are reviewed on an annual basis.

Fixed assets located in Salar de Atacama consider useful life to be the lesser value between the technical useful life and the years remaining until 2030.

In the case of certain mobile equipment, depreciation is performed depending on the hours of operation.

The useful lives used for the depreciation and amortization of assets included in property, plant and equipment in years are presented below:

Classes of property, plant and equipment	Minimum life or rate (years)		Maximum life or rate (years)		life or average rate in years
Mining assets		3		10		7
Energy generating assets		3		16		9
Buildings		3		25		14
Supplies and accessories		2		10		8
Office equipment		5		10		9
Transport equipment		5		9		7
Network and communication equipment		4		10		6
IT equipment		5		11		7
Machinery, plant and equipment		3		25		13
Other property, plant and equipment		3		15		10

3.19        Goodwill

Goodwill acquired represents the excess in acquisition cost on the fair value of the Company's ownership of the net identifiable assets of the subsidiary on the acquisition date. Goodwill acquired related to the acquisition of subsidiaries is included in the line item goodwill, which is subject to impairment tests annually or more frequently if events or changes in circumstances indicate that it might be impaired and is stated at cost less accumulated impairment losses. Gains and losses related to the sale of an entity include the carrying value of goodwill related to the entity sold.

This intangible asset is assigned to cash-generating units with the purpose of testing impairment losses. It is allocated based on cash-generating units expected to obtain benefits from the business combination from which the aforementioned goodwill acquired arose.

28 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

3.20        Intangible assets other than goodwill

Intangible assets other than goodwill mainly relate to water rights, emission rights, commercial brands, costs for rights of way for electricity lines, license costs and the development of computer software and mining property and concession rights, client portfolio and commercial agent.

(a)       Water rights

Water rights acquired by the Company relate to water from natural sources and are recorded at acquisition cost. The Company separates water rights into:

i) Finite rights with amortization using the straight-line method, and

ii) Indefinite rights, which are not amortized, given that these assets represent rights granted in perpetuity to the Company, which are subject to an annual impairment assessment.

(b) Rights of way for electric lines

As required for the operation of industrial plants, the Company has paid rights of way in order to install wires for the different electric lines on third party land. These rights are presented under intangible asset. Amounts paid are capitalized at the date of the agreement and amortized in the statement of income, according to the life of the right of way.

(c) Computer software

Licenses for IT programs acquired are capitalized based on their acquisition and customization costs. These costs are amortized over their estimated useful lives.

Expenses related to the development or maintenance of IT programs are recognized as an expense as and when incurred. Costs directly related to the production of unique and identifiable IT programs controlled by the Group, and which will probably generate economic benefits that are higher than its costs during more than a year, are recognized as intangible assets. Direct costs include the expenses of employees who develop information technology software and general expenses in accordance with corporate charges received.

The costs of development for IT programs are recognized as assets are amortized over their estimated useful lives.

(d) Mining property and concession rights

The Company holds mining property and concession rights from the Chilean and Western Australian Governments. Property rights from the State of Chile are usually obtained at no initial cost (other than the payment of mining patents and minor recording expenses) and once the rights on these concessions have been obtained, they are retained by the Company while annual patents are paid. Such patents, which are paid annually, are recorded as prepaid assets and amortized over the following twelve months. Amounts attributable to mining concessions acquired from third parties that are not from the Chilean Government are recorded at acquisition cost within intangible assets.

(e)       Estimated useful lives or amortization rates used for finite identifiable intangible assets

The finite useful life of mining properties is calculated using the productive unit method, except for the mining properties owned by Corfo, which have been leased to the Company and grant it the right to exclusively exploit them until December 31, 2030.

The estimated useful life for software which they are amortized corresponds to the periods defined by the contracts or rights from which they originate.

29 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

f) Minimum and maximum amortization lives or rates of intangible assets:

Estimated useful life or amortization rate	Minimum Life or Rate	Maximum Life or Rate
Water rights	5 years	Indefinite
Rights of way	Indefinite	Indefinite
Corfo Mining properties (1)	9 years	9 years
Mining rights	Unit-production method
IT programs	2 years	8 years

(1) Mining properties owned by CORFO and leased to the Company, which grant it the exclusive right to exploit them until December 31, 2030.

3.21        Research and development expenses

Research and development expenses are charged to profit or loss in the period in which the expenditure was incurred.

3.22        Exploration and evaluation expenses

The Company holds mining concessions for exploration and exploitation of ore, the Company gives the following treatment to expenses associated with exploration and assessment of these resources:

(a) Caliche

Once the rights have been obtained, the Company records the disbursements directly associated with the exploration and assessment of the deposit as an at cost asset. These disbursements include the following items: geological surveys, drilling, borehole extraction and sampling, activities related to the technical assessment and commercial viability of the extraction, and in general, any disbursement directly related to specific projects where the objective is to find ore resources.

If the technical studies determine that the ore grade is not economically viable, the asset is directly charged to profit and loss. If determined otherwise, the asset described above is associated with the extractable ore tonnage which is amortized as it is used. These assets are presented in the “other non-current non-financial assets” category, reclassifying the portion related to the area to be extracted that year as inventories.

(b) Metal exploration

Expenses related to metal exploration are charged to profit or loss in the period in which they are recognized if the project assessed doesn't qualify for consideration as advanced exploration, otherwise these are amortized during the development stage.

(c) Salar de Atacama exploration

Salar de Atacama exploration expenses are presented as non-current assets as the property, plant and equipment category and correspond mainly to wells that can also be used in the extraction of the deposit and/or monitoring, these are amortized over 10 years.

(d) Mount Holland exploration

Mount Holland exploration expenses are presented into “Property, Plant and Equipment”, specifically in Constructions in progress and primarily consider exploration boreholes and complementary studies for the lithium ore study of the area of Western Australia, Australia. These expenses will begin to be amortized in the development stage.

30 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

3.23        Impairment of non-financial assets

Assets subject to depreciation and amortization are also subject to impairment testing, provided that an event or change in the circumstances indicates that the amounts in the accounting records may not be recoverable, an impairment loss is recognized for the excess of the book value of the asset over its recoverable amount.

For assets other than goodwill, the Group annually assesses whether there is any indication that a previously recognized impairment loss may no longer exist or may have decreased. Should such indications exist, the recoverable amount is estimated.

The recoverable amount of an asset is the higher between the fair value of an asset or cash generating unit less costs of sales and its value in use, and is determined for an individual asset unless the asset does not generate any cash inflows that are clearly independent from other assets or groups of assets

In evaluating value in use, estimated future cash flows are discounted using a pre-tax discount rate that reflects current market assessment, the value of money over time and the specific asset risks.

Impairment losses from continuing operations are recognized with a debit to profit or loss in the categories of expenses associated with the impaired asset function.

For assets other than goodwill, a previously recognized impairment loss is only reversed if there have been changes in the estimates used to determine the asset’s recoverable amount since the last time an impairment loss was recognized. If this is the case, the carrying value of the asset is increased to its recoverable amount. This increased amount cannot exceed the carrying value that would have been determined, net of depreciation, if an asset impairment loss had not been recognized in prior years. This reversal is recognized with a credit to profit or loss.

Assets with indefinite lives are assessed for impairment annually.

The current value of future cash flows generated by these assets has been estimated given the variation in sales volumes, market prices and costs, discounted with a WACC rate. For June 30, 2021, the WACC rate was 10.09%.

3.24        Minimum dividend

As required by Chilean law and regulations, our dividend policy is decided upon from time to time by our Board of Directors and is announced at the Annual Ordinary Shareholders’ Meeting, which is generally held in April of each year. Shareholder approval of the dividend policy is not required. However, each year the Board must submit the declaration of the final dividend or dividends in respect of the preceding year, consistent with the then-established dividend policy, to the Annual Ordinary Shareholders’ Meeting for approval. As required by the Chilean Companies Act, unless otherwise decided by unanimous vote of the holders of issued shares, we must distribute a cash dividend in an amount equal to at least 30% of our consolidated net income for that year (determined in accordance with CMF regulations), unless and to the extent the Company has a deficit in retained earnings. (See Note 20.5).

3.25        Earnings per share

The basic earnings per share amounts are calculated by dividing the profit for the year attributable to the ordinary owners of the parent by the weighted average number of ordinary shares outstanding during the year.

The Company has not conducted any type of operation of potential dilutive effect that would entail the disclosure of diluted earnings per share.

3.26        Capitalization of interest expenses

The cost of interest is recognized as an expense in the year in which it is incurred, except for interest that is directly related to the acquisition and construction of tangible property, plant and equipment assets and that complies with the requirements of IAS 23.

31 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

The Company capitalizes all interest costs directly related to the construction or to the acquisition of property, plant and equipment, which require a substantial time to be suitable for use.

The financial expenses accrued during the construction period that are directly attributable to the acquisition, construction or production of assets that qualify for this, use the corresponding interest rate for the financing specific to the project; where this does not exist, the mean financing rate of the subsidiary that makes the investment is used.

3.27        Other provisions

Provisions are recognized when:

· The Company has a present, legal or constructive obligation as the result of a past event.

· It is more likely than not that certain resources must be used, to settle the obligation.

· A reliable estimate can be made of the amount of the obligation.

In the event that the provision or a portion of it is reimbursed, the reimbursement is recognized as a separate asset solely if there is certainty of income.

In the consolidated statement of income, the expense for any provision is presented net of any reimbursement.

Should the effect of the value of money over time be significant, provisions are discounted using a discount rate before tax that reflects the liability’s specific risks. When a discount rate is used, the increase in the provision over time is recognized as a finance cost.

The Company’s policy is to maintain provisions to cover risks and expenses based on a better estimate to deal with possible or certain and quantifiable responsibilities from current litigation, compensations or obligations, pending expenses for which the amount has not yet been determined, collaterals and other similar guarantees for which the Company is responsible. These are recorded at the time the responsibility or the obligation that determines the compensation or payment is generated.

3.28        Obligations related to employee termination benefits and pension commitments

Obligations towards the Company’s employees comply with the provisions of the collective bargaining agreements in force, which are formalized through collective employment agreements and individual employment contracts, except for the United States, which is regulated in accordance with employment plans in force up to 2002. (See more details in Note 18.4).

These obligations are valued using actuarial calculations, according to the projected unit credit method which considers such assumptions as the mortality rate, employee turnover, interest rates, retirement dates, effects related to increases in employees’ salaries, as well as the effects on variations in services derived from variations in the inflation rate. The criteria in force contained in the revised IAS 19 are also considered.

Actuarial gains and losses that may be generated by variations in defined, pre-established obligations are directly recorded in “Other Comprehensive Income”.

Actuarial losses and gains have their origin in deviations between the estimate and the actual behavior of actuarial assumptions or in the reformulation of established actuarial assumptions.

The Company’s subsidiary SQM North America has established pension plans for its retired employees that are calculated by measuring the projected obligation using a net salary progressive rate net of adjustments for inflation, mortality and turnover assumptions, deducting the resulting amounts at present value. The net balance of this obligation is presented under the “Non-Current Provisions for Employee Benefits” (refer to Note 18.4).

3.29 Compensation plans

Compensation plans implemented through benefits provided in share-based payments settled in cash are recognized in the financial statements at their fair value, in accordance with IFRS 2. Changes in the fair value of options granted are recognized with a charge to payroll in the results for the period (see Note 18.6).

32 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

3.30 Revenue recognition

Revenue includes the fair value of considerations received or receivable for the sale of goods and services during the performance of the Company's activities. Revenue is presented net of value added tax, estimated returns, rebates and discounts and after the elimination of sales among subsidiaries.

Revenues are recognized when the specific conditions for each income stream are met, as follows:

(a)       Sale of goods

The sale of goods is recognized when the Company has delivered products to the customer, and there is no obligation pending compliance that could affect the acceptance of products by the customer. The delivery does not occur until products have been shipped to the customer or confirmed as received by the customer, and the related risks of obsolescence and loss have been transferred to the customer and the customer has accepted the products in accordance with the conditions established in the sale, when the acceptance period has ended, or when there is objective evidence that those criteria required for acceptance have been met.

Sales are recognized in consideration of the price set in the sales agreement, net of volume discounts and estimated returns at the date of the sale. Volume discounts are evaluated in consideration of annual foreseen purchases and in accordance with the criteria defined in agreements.

(b)       Sale of services

Revenue associated with the rendering of services is recognized considering the degree of completion of the service as of the date of presentation of the consolidated classified statement of financial position, provided that the result from the transaction can be estimated reliably.

(c)        Income from dividends

Income from dividends is recognized when the right to receive the payment is established.

3.31        Finance income and finance costs

Finance income is mainly composed of interest income from financial instruments such as term deposits and mutual fund deposits. Interest income is recognized in profit or loss at amortized cost, using the effective interest rate method.

Finance costs are mainly composed of interest on bank borrowing expenses, interest on bonds issued and interest capitalized for borrowing costs for the acquisition, construction or production or qualifying assets. Borrowing costs and bonds issued are also recognized in profit or loss using the effective interest rate method.

3.32        Current income tax and deferred

Corporate income tax for the year is determined as the sum of current and deferred income taxes from the different consolidated companies.

Current taxes are based on the application of the various types of taxes attributable to taxable income for the period. The Company periodically assesses the positions taken in the determination of taxes with respect to situations in which the applicable tax regulation is subject to interpretation and considers whether it is probable that a tax authority will accept an uncertain tax treatment. The Company measures its tax balances based on the most probable amount or expected value, depending on which method provides a better prediction of the resolution of uncertainty.

Differences between the book value of assets and liabilities and their tax basis generate the balance of deferred tax assets or liabilities, which are calculated using the tax rates expected to be applicable when the assets and liabilities are realized.

In conformity with current tax regulations, the provision for corporate income tax and taxes on mining activity is recognized on an accrual basis, presenting the net balances of accumulated monthly tax provisional payments for the fiscal period and associated credits. The balances of these accounts are presented in current income taxes recoverable or current taxes payable, as applicable.

33 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

Income tax and variations in deferred tax assets or liabilities that are not the result of business combinations are recorded in income or equity, considering the origin of the gains or losses which have generated them.

At each reporting period, the carrying amount of deferred tax assets is reviewed and recognized only if it is probable that future taxable amounts will be available to allow the recovery of all or a portion of the deferred tax assets.

With respect to deductible temporary differences associated with investments in subsidiaries, associated companies and interest in joint ventures, deferred tax assets are recognized solely provided that it is more likely than not that the temporary differences will be reversed in the near future and that there will be taxable income with which they may be used. The deferred taxes related to items directly recognized in equity is registered with effect on other comprehensive income and not with effect on income.

Deferred tax assets and liabilities are offset if there is a legally receivable right of offsetting tax assets against tax liabilities and the deferred tax is related to the same tax entity and authority.

The recognized deferred tax assets refer to the amount of income tax to recover in future periods, related to:

a) deductible temporary differences;

b) compensation for losses obtained in prior periods, which have not yet been subject to tax deduction; and

c) compensation for unused credits from prior periods.

The Company recognizes deferred tax assets when it has the certainty that they can be offset with tax income from subsequent periods, unused tax losses or credits to date, but only when this availability of future tax income is probable and can be used for offsetting these unused tax losses or credits.

The recognized deferred tax liabilities refer to the amount of income tax to pay in a future period, related to taxable temporary differences.

3.33       Operating segment reporting

IFRS 8 requires that companies adopt a management approach to disclose information on the operations generated by its operating segments. In general, this is the information that management uses internally for the evaluation of segment performance and making the decision on how to allocate resources for this purpose.

An operating segment is a group of assets and operations responsible for providing products or services subject to risks and performance that are different from those of other business segments. A geographical segment is responsible for providing products or services in a given economic environment subject to risks and performance that are different from those of other segments operating in other economic environments.

Allocation of assets and liabilities, to each segment is not possible given that these are associated with more than one segment, except for depreciation, amortization and impairment of assets, which are directly allocated in accordance with the criteria established in the costing process for product inventories to the corresponding segments.

3.34        Primary accounting criteria, estimates and assumptions

Management is responsible for the information contained in these consolidated financial statements, which expressly indicate that all the principles and criteria included in IFRS, as issued by the IASB, have been applied in full.

In preparing the consolidated financial statements of the Company and its subsidiaries, management has made judgments and estimates to quantify certain assets, liabilities, revenues, expenses and commitments included therein. Basically, these estimates refer to:

· Estimated useful lives are determined based on current facts and past experience and take into consideration the expected physical life of the asset, the potential for technological obsolescence, and regulations. (See Notes 3.20, 15 and 16).

34 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

· Impairment losses of certain assets - Goodwill and intangible assets that have an indefinite useful life are not amortized and are assessed for impairment on an annual basis, or more frequently if the events or changes in circumstances indicate that these may have deteriorated Other assets, including property, plant and equipment, exploration assets, goodwill and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts exceed their recoverable amounts. If an impairment assessment is required, the assessment of fair value or value in use often requires estimates and assumptions such as discount rates, exchange rates, commodity prices, future capital requirements and future operating performance. Changes in such estimates could impact the recoverable values of these assets. Estimates are reviewed regularly by management (See Notes 15 and 16).

· Assumptions used in calculating the actuarial amount of pension-related and severance indemnity payment benefit commitments (See Note 18).

· Contingencies – The amount recognized as a provision, including legal, contractual, constructive and other exposures or obligations, is the best estimate of the consideration required to settle the related liability, including any related interest charges, considering the risks and uncertainties surrounding the obligation. In addition, contingencies will only be resolved when one or more future events occur or fail to occur. Therefore, the assessment of contingencies inherently involves the exercise of significant judgment and estimates of the outcome of future events. The Company assesses its liabilities and contingencies based upon the best information available, relevant tax laws and other appropriate requirements (See Note 21). ). If the Company is unable to rationally estimate the obligation or concluded no loss is probable but it is reasonably possible that a loss may be incurred, no provision is recorded but disclosed in the notes to the consolidated financial statements.

· Volume determination for certain in-process and finished products is based on topographical measurements and technical studies that cover the different variables (density for bulk inventories and density and porosity for the remaining stock, among others), and related allowance.

· Estimates for obsolescence provisions to ensure that the carrying value of inventory is not in excess of the net realizable inventory valuation. (See Note 11).

Despite the fact that these estimates have been made on the basis of the best information available on the date of preparation of these consolidated financial statements, certain events may occur in the future and oblige their amendment (upwards or downwards) over the next few years, which would be made prospectively.

3.

35 

Notes to the Consolidated Interim Financial Statements
June 30, 2021   

Note 4    Financial risk management

4.1          Financial risk management policy

The Company’s financial risk management policy is focused on safeguarding the stability and sustainability of the Company and its subsidiaries with regard to all such relevant financial uncertainty components.

The Company’s operations are subject to certain financial risk factors that may affect its financial position or results. The most significant risk exposures are market risk, liquidity risk, currency risk, credit risk, and interest rate risk, among others.

There could also be additional risks, which are either unknown or known but not currently deemed to be significant, which could also affect the Company’s business operations, its business, financial position, or profit or loss.

The financial risk management structure includes identifying, determining, analyzing, quantifying, measuring and controlling these events. Management and in particular, Finance Management, is responsible for constantly assessing the financial risk.

4.2 Risk Factors

(a) Credit risk

A global economic contraction may have potentially negative effects on the financial assets of the Company, which are primarily made up of financial investments and trade receivables, and the impact on of our customers could extend the payment terms of the Company's receivables by increasing its exposure to credit risk. Although measures are taken to minimize the risk, this global economic situation could mean losses with adverse material effects on the business, financial position or profit and loss of the Company's operations.

Trade receivables: to mitigate credit risk, the Company maintains active control of collection and requires the use of credit insurance. Credit insurance covers the risk of insolvency and unpaid invoices corresponding to 80% of all receivables with third parties. The credit risk associated with receivables is analyzed in Note 13.2 b) and the related accounting policy can be found in Note 3.6.

The concentration of credit risk with respect to sales debtors is reduced, due to the large number of companies that comprise the Company's customer base and their distribution throughout the world.

No significant modifications have been made during the period to risk models or parameters used in comparison to December 31, 2020, and no modifications have been made to contractual cash flows that have been significant during this period.

Financial investments: correspond to time deposits whose maturity date is greater than 90 days and less than 360 days from the date of investment, so they are not exposed to excessive market risks. The counterparty risk in implementation of financial operations is assessed on an ongoing basis for all financial institutions in which the Company holds financial investments.

36 

      Notes to the Consolidated Interim Financial Statements  June 30, 2021  

  

The credit quality of financial assets that are not past due or impaired can be evaluated by reference to external credit ratings (if they are available) or historical information on counterparty late payment rates:

		Rating			As of June 30, 2021
Financial institution	Financial assets	Moody´s	S&P	Fitch	ThUS$
Banco crédito e inversiones	Time deposits	P-1	A-2	-	10,500
Banco de Chile	Time deposits	P-1	A-1	-	8,500
Banco Estado	Time deposits	P-1	A-1	-	4,122
Banco Itaú Corpbanca	Time deposits	P-1	A-2	-	51,029
Banco Santander - Santiago	Time deposits	P-1	A-2	-	9,003
Scotiabank Sud Americano	Time deposits	-	-	F1+	54,534
JP Morgan US dollar Liquidity Fund Institutional	Investment fund	Aaa-mf	AAAm	AAAmmf	273,767
Legg Mason - Western Asset Institutional cash reserves	Investment fund	-	AAAm	AAAmmf	256,635
Total					668,090

		Rating			As of June 30, 2021
Financial institution	Financial assets	Moody´s	S&P	Fitch	ThUS$
Banco Crédito e Inversiones	90 days to 1 year	P-1	A-2	-	114,935
Banco Itaú Corpbanca	90 days to 1 year	P-1	A-2	-	89,086
Banco Santander - Santiago	90 days to 1 year	P-1	A-2	-	208,463
Scotiabank Sud Americano	90 days to 1 year	-	-	F1+	150,028
Banco de chile	90 days to 1 year	P-1	A-1	-	140,367
Total					702,879

		Rating			As of December 31, 2020
Financial institution	Financial assets	Moody´s	S&P	Fitch	ThUS$
Banco de Crédito e Inversiones	Time deposits	P-1	A-1	-	9,002
Banco de Chile	Time deposits	P-1	A-1	-	10,503
Banco Estado	Time deposits	P-1	A-1	-	1,001
Banco Itau Corpbanca	Time deposits	P-2	A-2	-	7,299
Banco Santander – Santiago	Time deposits	P-1	A-1	-	16,702
Scotiabank Sud Americano	Time deposits	-	-	F1+	7,002
JP Morgan US dollar Liquidity Fund Institutional	Investment fund	Aaa-mf	AAAm	AAAmmf	102,753
Legg Mason - Western Asset Institutional cash reserves	Investment fund	-	AAAm	AAAmmf	107,625
Other banks with lower balances	Time deposits	-	-	-	86
Total					261,973

37 

      Notes to the Consolidated Interim Financial Statements  June 30, 2021  

  

		Rating			As of December 31, 2020
Financial institution	Financial assets	Moody´s	S&P	Fitch	ThUS$
Banco de Crédito e Inversiones	90 days to 1 year	P-1	A-1	-	185,589
Banco Itaú Corpbanca	90 days to 1 year	P-2	A-2	-	49,006
Banco Santander – Santiago	90 days to 1 year	P-1	A-1	-	45,168
Banco Scotiabank Sud Americano	90 days to 1 year	-	-	F1+	31,668
JP Morgan Asset Management	90 days to 1 year	P-1	A-1	N1+	34,028
Total					345,459

(b) Currency risk

The functional currency of the company is the US dollar, due to its influence on the determination of price levels, its relation to the cost of sales and considering that a significant part of the Company’s business is conducted in this currency. However, the global nature of the Company's business generates an exposure to exchange rate variations of several currencies with the US dollar. Therefore, the Company maintains hedge contracts to mitigate the exposure generated by its main mismatches (net between assets and liabilities) in currencies other than the US dollar against the exchange rate variation, updating these contracts periodically depending on the amount of mismatching to be covered in these currencies. Occasionally, subject to the approval of the Board, the Company ensures short-term cash flows from certain specific line items in currencies other than the US dollar.

A significant portion of the Company’s costs, especially salary payments, is associated with the Peso. Therefore, an increase or decrease in its exchange rate with the US dollar would affect the Company's profit or loss. By the second quarter of 2021, approximately US$ 252 million accumulated in expenses are associated with the Peso.

As of June 30, 2021, the Company held derivative instruments classified as hedges of foreign exchange risks associated with 100% of all of the bond liabilities denominated in UF, for a liability at fair value of US$ 3.44 million. As of December 31, 2020, an asset was recognized amounting to US$ 18.41 million.

Furthermore, on June 30, 2021, the Company held derivative instruments classified as hedges of foreign exchange risks associated with 56.85% of all nominative term deposits in UF and in pesos, at a fair value of US$ 0.97 million in assets. On December 31, 2020, a liability was recognized for an amount of US$ 21 million.

The Company had the following derivative contracts as of June 30, 2021 (at the absolute value of the sum of their notional values), to hedge the difference between its assets and liabilities: US$ 63.2 Euro/US dollar derivative contracts, US$ 14.79 million in South African rand/US dollar derivative contracts, US$ 67.7 million in Chinese renminbi/US dollar derivative contracts and US$ 13.19 million in other currencies.

The Company also had US$ 88.28 million in derivative contracts to hedge its Chilean peso term deposit investments.

38 

      Notes to the Consolidated Interim Financial Statements  June 30, 2021  

  

These derivative contracts are held with domestic and foreign banks, which have the following credit ratings.

		Rating
Financial institution	Financial assets	Moody´s	S&P	Fitch
Banco crédito e inversiones	Derivative	P-1	A-2	-
Merrill Lynch International	Derivative	A	A+	AA
Banco Itau-Corpbanca	Derivative	P-1	A-2	-
JP Morgan	Derivative	A	A-	AA-
Morgan Stanley	Derivative	A+	BBB+	A
The Bank of Nova Scotia	Derivative	A	A+	AA-

Interest rate risk

Interest rate fluctuations, primarily due to the uncertain future behavior of markets, may have a material impact on the financial results of the Company. Significant increases in the rate could make it difficult to access financing at attractive rates for the Company's investment projects.

The Company maintains current and non-current financial debt at fixed rates and LIBOR rate plus spread.

As of June 30, 2021, the Company has around 4% of its financial liabilities linked to variations in the LIBOR rate. 100% of these obligations are covered by derivative instruments classified as interest rate hedging; therefore, a significant rate increase would not impact our financial condition.

Liquidity risk

Liquidity risk relates to the funds needed to comply with payment obligations. The Company’s objective is to maintain financial flexibility through a comfortable balance between fund requirements and cash flows from regular business operations, bank borrowings, bonds, short term investments, and marketable securities, among others. For this purpose, the Company keeps a high liquidity ratio¹, which enables it to cover current obligations with clearance. (As of June 30, 2021, this was 6.25).

The Company has an important capital expense program which is subject to change over time.

On the other hand, world financial markets go through periods of contraction and expansion that are unforeseeable in the long-term and may affect The Company’s access to financial resources. Such factors may have a material adverse impact on the Company’s business, financial position and results of operations.

The Company constantly monitors the matching of its obligations with its investments, taking due care of maturities of both, from a conservative perspective, as part of this financial risk management strategy. As of June 30, 2021, the Company had unused, available revolving credit facilities with banks, for a total of US$ 493 million.

¹ All current assets divided by all current liabilities.

39 

      Notes to the Consolidated Interim Financial Statements  June 30, 2021  

The position in other cash and cash equivalents are invested in highly liquid mutual funds with an AAA risk rating.

	Nature of undiscounted cash flows
As of June 30, 2021 (figures expressed in millions of US dollars)	Carrying amount	Less than 1 year	1 to 5 years	Over 5 years	Total
Bank borrowings	70.08	0.91	70.93	-	71.84
Unsecured obligations (1)	1,863.55	87.86	852.88	1,757.59	2,698.33
Sub total	1,933.63	88.77	923.81	1,757.59	2,770.17
Hedging liabilities	24.94	5.80	18.94	17.77	42.51
Derivative financial instruments	0.13	0.13	-	-	0.13
Sub total	25.07	5.93	18.94	17.77	42.64
Current and non-current lease liabilities	39.22	8.99	28.61	5.68	43.28
Trade accounts payable and other accounts payable	227.29	227.29	-	-	227.29
Total	2,225.21	330.98	971.36	1,781.04	3,083.38

	Nature of undiscounted cash flows
As of December 31, 2020 (figures expressed in millions of US dollars)	Carrying amount		Less than 1 year	1 to 5 years	Over 5 years	Total
Bank borrowings		70.08	0.94	71.40	-	72.34
Unsecured obligations (1)		1,872.09	88.22	927.17	1,727.14	2,742.53
Sub total		1,942.17	89.16	998.57	1,727.14	2,814.87
Hedging liabilities		40.21	6.06	12.34	11.07	29.47
Derivative financial instruments		5.39	5.39	-	-	5.39
Sub total		45.60	11.45	12.34	11.07	34.86
Current and non-current lease liabilities		31.07	6.40	21.04	7.17	34.61
Trade accounts payable and other accounts payable		203.93	203.93	-	-	203.93
Total		2,222.77	310.94	1,031.95	1,745.38	3,088.27

4.3 Risk measurement

The Company has methods to measure the effectiveness and efficiency of financial risk hedging strategies, both prospectively and retrospectively. These methods are consistent with the risk management profile of the SQM Group. See Note 13.8

40 

      Notes to the Consolidated Interim Financial Statements  June 30, 2021  

Note 5 Separate information on the main office, parent entity and joint action agreements

5.1 Parent’s stand-alone assets and liabilities

Parent’s stand-alone assets and liabilities	As of June 30, 2021			As of December 31, 2020
	ThUS$			ThUS$
Assets		5,391,785			4,171,768
Liabilities		(2,189,843	)		(2,048,683	)
Equity		3,201,942			2,123,085

5.2            Parent entity

Pursuant to Article 99 of the Securities Market Law, the CMF may determine that a company does not have a controlling entity in accordance with the distribution and dispersion of its ownership. On November 30, 2018, the CMF issued the ordinary letter No. 32,131 whereby it determined that the Pampa Group do not exert decisive power over the management of the Company since it does not have a predominance in the ownership that allows it to make management decisions. Therefore, the CMF has determined not to consider Pampa Group the controlling entity of the Company and that the Company does not have a controlling entity given its current ownership structure.

41 

      Notes to the Consolidated Interim Financial Statements  June 30, 2021  

  

Note 6    Board of Directors, Senior Management and Key management personnel

6.1 Remuneration of the Board of Directors and Senior Management

(a)            Board of directors

SQM S.A. is managed by a Board of Directors which is composed of 8 regular directors, who are elected for a three-year period. The Board of Directors was elected during the ordinary shareholders’ meeting held on April 25, 2019, which included the election of 2 independent directors.

As of June 30, 2021, the Company included the following committees and committee members:

- Directors’ Committee: This committee is comprised by Georges de Bourguignon, Laurence Golborne Riveros y Alberto Salas Muñoz, and fulfills the functions established in Article 50 bis of Chilean Law on publicly-held corporations. This committee takes on the role of the audit committee in accordance with the US-based Sarbanes Oxley law.

- The Company’s Health, Safety and Environment Committee: This committee is comprised of Gonzalo Guerrero Yamamoto, Patricio Contesse Fica y Robert J. Zatta.

- Corporate Governance Committee: This committee is comprised of Hernán Büchi Buc, Patricio Contesse Fica y Francisco Ugarte Larrain.

During the periods covered by these financial statements, there are no pending receivable and payable balances between the Company, its directors or members of Senior Management, other than those related to remuneration, fee allowances and profit-sharing. In addition, there were no transactions conducted between the Company, its directors or members of Senior Management.

(b) Board of Directors’ Compensation

Directors’ compensation differs according to the period during the corresponding year. Thus, from April 22, 2020 to April 23, 2021 (Period 2020), Directors’ compensation was determined by the annual general shareholders' meeting held on April 22, 2020. While for the following period (Period 2021), Directors’ compensation was determined by the annual general shareholders' meeting held on April 23, 2021. For each of these periods, Directors’ compensation is detailed as follows:

Period 2020

(i) The payment of a fixed, gross and monthly amount of UF 800 in favor of the Chairman of the Board of Directors, of UF 700 in favor of the vice-president of the board of directors and of UF 600 in favor of the remaining six directors and regardless of the number of Board of Directors’ Meetings held or not held during the related month.

(ii) A variable gross amount payable in national currency to the Chairman and Vice President of the Company equivalent to 0.09% of the net liquid income earned by the Company in 2020;

(iii) A variable gross amount payable in local currency to each Company director, excluding the Chairman and Vice President of the Company, equivalent to 0.045% of the net liquid income earned by the Company in 2020.

Period 2021:

(i) The payment of a fixed, gross and monthly amount of UF 800 in favor of the Chairman of the Board of Directors, of UF 700 in favor of the vice-president of the board of directors and of UF 600 in favor of the remaining six directors and regardless of the number of Board of Directors’ Meetings held or not held during the related month.

(ii) A variable gross amount payable in national currency to the Chairman and Vice President of the Company equivalent to 0.12% of the net liquid income that the Company effectively obtains during the 2021;

(iii) A variable gross amount payable in local currency to each Company director, excluding the Chairman and Vice President of the Company, equivalent to 0.06% of the net liquid income that the Company effectively obtains during the 2021.

42 

      Notes to the Consolidated Interim Financial Statements  June 30, 2021  

  

These fixed and variable amounts for both periods shall not be challenged and those expressed in percentage terms shall be paid immediately after the respective annual general shareholders meeting approves the financial statements, the annual report, the account inspectors report and the external auditors report for the respective year. All amounts expressed in UF shall be paid in Chilean pesos at its value on the last day of the respective calendar month, as determined by the CMF (formerly Superintendence of Banks and Financial Institutions) the Chilean Central Bank or any other relevant institution that replaces them.

Accordingly, the compensation and profit sharing paid to members of the Directors' Committee and the directors as of June 30, 2021 amounted to ThUS$ 1,682 and as of June 30, 2020 to ThUS$ 1,358.

(c)            Directors’ Committee compensation

Directors' Committee compensation differs according to the period during the corresponding year. Thus, for the Period 2020, Directors’ Committee compensation was determined by the annual general shareholders' meeting held on April 22, 2020. While for the Period 2021, Directors’ Committee compensation was determined by the annual general shareholders' meeting held on April 23, 2021. For each of these periods the compensation of the Directors Committee comprises:

Period 2020

(i) The payment of a fixed, gross and monthly amount of UF 200 in favor of each of the 3 directors who were members of the Directors’ Committee, regardless of the number of meetings of the Directors’ Committee that have or have not been held during the month concerned.

(ii) The payment in domestic currency and in favor of each of the 3 directors of a variable and gross amount equivalent to 0.015% of total net profit that the Company effectively obtains during the 2020 fiscal year.

Period 2021

(i) The payment of a fixed, gross and monthly amount of UF 200 in favor of each of the 3 directors who were members of the Directors’ Committee, regardless of the number of meetings of the Directors’ Committee that have or have not been held during the month concerned.

(ii) The payment in domestic currency and in favor of each of the 3 directors of a variable and gross amount equivalent to 0.02% of total net profit that the Company effectively obtains during the 2021 fiscal year.

These fixed and variable amounts for both periods shall not be challenged and those expressed in percentage terms shall be paid immediately after the respective annual general shareholders meeting approves the financial statements, the annual report, the account inspectors report and the external auditors report for the respective year. All amounts expressed in UF shall be paid in Chilean pesos at its value on the last day of the respective calendar month, as determined by the CMF (formerly Superintendence of Banks and Financial Institutions) the Chilean Central Bank or any other relevant institution that replaces them.

(d) Health, Safety and Environmental Matters Committee:

The remuneration of this committee for the 2020 period was composed of the payment of a fixed, gross, monthly amount of UF 100 for each of the 3 directors on the committee regardless of the number of meetings it has held. For the 2021 period, this remuneration remains unchanged.

(e) Corporate Governance Committee

The remuneration for this committee for the 2020 period was composed of the payment of a fixed, gross, monthly amount of UF 100 for each of the 3 directors on the committees regardless of the number of meetings it has held. For the 2021 period, this remuneration remains unchanged.

(f) Guarantees constituted in favor of the directors

No guarantees have been constituted in favor of the directors.

43 

      Notes to the Consolidated Interim Financial Statements  June 30, 2021  

  

(g) Senior management compensation:

(i) This includes monthly fixed salary and variable performance bonuses. (See Note 6.2)

(ii) The Company has an annual bonus plan based on goal achievement and individual contribution to the Company’s results. These incentives are structured as a minimum and maximum number of gross monthly salaries and are paid once a year.

(iii) In addition, there are retention bonuses for its executives (see Note 18.6)

(h) Guarantees pledged in favor of the Company’s management

No guarantees have been pledged in favor of the Company’s management.

(i)            Pensions, life insurance, paid leave, shares in earnings, incentives, disability loans, other than those mentioned in the above points.

The Company’s Management and Directors do not receive or have not received any benefit during the ended June 30, 2021 and the year ended December 31, 2020 or compensation for the concept of pensions, life insurance, paid time off, profit sharing, incentives, or benefits due to disability other than those mentioned in the preceding points.

6.2 Key management personnel compensation

As of June 30, 2021 and 2020, the number of the key management personnel is 125 and 128, respectively.

Key management personnel compensation	For the year ended June 30, 2021		For the year ended June 30, 2020
	ThUS$		ThUS$
Key management personnel compensation		16,966		12,034

Please also see the description of the compensation plan for executives in Note 18.6.

44 

      Notes to the Consolidated Interim Financial Statements  June 30, 2021  

  

Note 7    Background on companies included in consolidation and non-controlling interests

7.1 Background on companies included in consolidation

The following tables detail general information as of June 30, 2021 on the companies in which the group exercises control and significant influence:

					Ownership Interest
Subsidiaries	TAX ID No.	Address	Country of Incorporation	Functional Currency	Direct	Indirect	Total
SQM Nitratos S.A.	96.592.190-7	El Trovador 4285, Las Condes	Chile	Dollar	99.9999	0.0001	100.0000
SQM Potasio S.A.	96.651.060-9	El Trovador 4285, Las Condes	Chile	Dollar	99.9999	-	100.0000
Serv. Integrales de Tránsito y Transf. S.A.	79.770.780-5	Arturo Prat 1060, Tocopilla	Chile	Dollar	0.0003	99.9997	100.0000
Isapre Norte Grande Ltda.	79.906.120-1	Anibal Pinto 3228, Antofagasta	Chile	Peso	1.0000	99.0000	100.0000
Ajay SQM Chile S.A.	96.592.180-K	Av. Pdte. Eduardo Frei 4900, Santiago	Chile	Dollar	51.0000	-	51.0000
Almacenes y Depósitos Ltda.	79.876.080-7	El Trovador 4285, Las Condes	Chile	Peso	1.0000	99.0000	100.0000
SQM Salar S.A.	79.626.800-K	El Trovador 4285, Las Condes	Chile	Dollar	18.1800	81.8200	100.0000
SQM Industrial S.A.	79.947.100-0	El Trovador 4285, Las Condes	Chile	Dollar	99.0470	0.9530	100.0000
Exploraciones Mineras S.A.	76.425.380-9	El Trovador 4285, Las Condes	Chile	Dollar	0.2691	99.7309	100.0000
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.	76.534.490-5	Anibal Pinto 3228, Antofagasta	Chile	Peso	-	100.0000	100.0000
Soquimich Comercial S.A.	79.768.170-9	El Trovador 4285, Las Condes	Chile	Dollar	-	60.6383	60.6383
Comercial Agrorama Ltda. (1)	76.064.419-6	El Trovador 4285, Las Condes	Chile	Peso	-	70.0000	70.0000
Comercial Hydro S.A.	96.801.610-5	El Trovador 4285, Las Condes	Chile	Dollar	-	100.0000	100.0000
Agrorama S.A.	76.145.229-0	El Trovador 4285, Las Condes	Chile	Peso	-	100.0000	100.0000
Orcoma Estudios SPA	76.359.919-1	Apoquindo 3721 OF 131, Las Condes	Chile	Dollar	100.0000	-	100.0000
Orcoma SPA	76.360.575-2	Apoquindo 3721 OF 131, Las Condes	Chile	Dollar	100.0000	-	100.0000
SQM MaG SpA	76.686.311-9	Los Militares 4290, Las Condes	Chile	Dollar	-	100.000	100.0000
Sociedad Contractual Minera Búfalo	77.114.779-8	Los Militares 4290, Las Condes	Chile	Dollar	99.9000	0.1000	100.0000
SQM North America Corp.	foreign	2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta, GA	USA	Dollar	40.0000	60.0000	100.0000
RS Agro Chemical Trading Corporation A.V.V.	foreign	Caya Ernesto O. Petronia 17, Orangestad	Aruba	Dollar	98.3333	1.6667	100.0000
Nitratos Naturais do Chile Ltda.	foreign	Al. Tocantis 75, 6° Andar, Conunto 608 Edif. West Gate, Alphaville Barureri, CEP 06455-020, Sao Paulo	Brazil	Dollar	-	100.0000	100.0000
Nitrate Corporation of Chile Ltd.	foreign	1 More London Place London SE1 2AF	United Kingdom	Dollar	-	100.0000	100.0000
SQM Corporation N.V.	foreign	Pietermaai 123, P.O. Box 897, Willemstad, Curacao	Curacao	Dollar	0.0002	99.9998	100.0000

(1) SQM controls Soquimich Comercial, which in turn controls Comercial Agrorama Ltda, SQM has management control over Comercial Agrorama Ltda.

45 

      Notes to the Consolidated Interim Financial Statements  June 30, 2021  

					Ownership Interest
Subsidiaries	TAX ID No.	Address	Country of Incorporation	Functional Currency	Direct	Indirect	Total
SQM Perú S.A.	foreign	Avenida Camino Real N° 348 of. 702, San Isidro, Lima	Peru	Dollar	0.0091	99.9909	100.0000
SQM Ecuador S.A.	foreign	Av. José Orrantia y Av. Juan Tanca Marengo Edificio Executive Center Piso 2 Oficina 211	Ecuador	Dollar	0.00401	99.9960	100.0000
SQM Brasil Ltda.	foreign	Al. Tocantis 75, 6° Andar, Conunto 608 Edif. West Gate, Alphaville Barureri, CEP 06455-020, Sao Paulo	Brazil	Dollar	0.7100	99.2900	100.0000
SQMC Holding Corporation.	foreign	2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta	USA	Dollar	0.1000	99.9000	100.0000
SQM Japan Co. Ltd.	foreign	From 1st Bldg 207, 5-3-10 Minami- Aoyama, Minato-ku, Tokio	Japan	Dollar	0.1597	99.8403	100.0000
SQM Europe N.V.	foreign	Houtdok-Noordkaai 25a B-2030 Amberes	Belgium	Dollar	0.5800	99.4200	100.0000
SQM Indonesia S.A.	foreign	Perumahan Bumi Dirgantara Permai, Jl Suryadarma Blok Aw No 15 Rt 01/09 17436 Jatisari Pondok Gede	Indonesia	Dollar	-	80.0000	80.0000
North American Trading Company	foreign	2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta, GA	USA	Dollar	-	100.0000	100.0000
SQM Virginia LLC	foreign	2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta, GA	USA	Dollar	-	100.0000	100.0000
SQM Comercial de México S.A. de C.V.	foreign	Av. Moctezuma 144-4 Ciudad del Sol CP 45050, Zapopan, Jalisco México	Mexico	Dollar	0.0100	99.9900	100.0000
SQM Investment Corporation N.V.	foreign	Pietermaai 123, P.O. Box 897, Willemstad, Curacao	Curacao	Dollar	1.0000	99.0000	100.0000
Royal Seed Trading Corporation A.V.V.	foreign	Caya Ernesto O. Petronia 17, Orangestad	Aruba	Dollar	1.6700	98.3300	100.0000
SQM Lithium Specialties Limited Partnership	foreign	2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta, GA	USA	Dollar	-	100.0000	100.0000
Comercial Caimán Internacional S.A.	foreign	Edificio Plaza Bancomer	Panama	Dollar	-	100.0000	100.0000
SQM France S.A.	foreign	ZAC des Pommiers 27930, FAUVILLE	France	Dollar	-	100.0000	100.0000
Administración y Servicios Santiago S.A. de C.V.	foreign	Av. Moctezuma 144-4 Ciudad del Sol CP 45050, Zapopan, Jalisco México	Mexico	Dollar	-	100.0000	100.0000
SQM Nitratos México S.A. de C.V.	foreign	Av. Moctezuma 144-4 Ciudad del Sol CP 45050, Zapopan, Jalisco México	Mexico	Dollar	-	100.0000	100.0000
Soquimich European Holding B.V.	foreign	Loacalellikade 1 Parnassustoren 1076 AZ Amsterdan	Holland	Dollar	-	100.0000	100.0000
SQM Iberian S.A.	foreign	Provenza 251 Principal 1a CP 08008, Barcelona	Spain	Dollar	-	100.0000	100.0000
SQM Africa Pty Ltd.	foreign	Tramore House, 3 Wterford Office Park, Waterford Drive, 2191 Fourways, Johannesburg	South Africa	Dollar	-	100.0000	100.0000
SQM Oceanía Pty Ltd.	foreign	Level 9, 50 Park Street, Sydney NSW 2000, Sydney	Australia	Dollar	-	100.0000	100.0000
SQM Beijing Commercial Co. Ltd.	foreign	Room 1001C, CBD International Mansion N 16 Yong An Dong Li, Jian Wai Ave Beijing 100022, P.R.	China	Dollar	-	100.0000	100.0000
SQM Thailand Limited	foreign	Unit 2962, Level 29, N° 388, Exchange Tower Sukhumvit Road, Klongtoey Bangkok	Thailand	Dollar	-	99.9960	99.9960
SQM Colombia SAS	foreign	Cra 7 No 32 – 33 piso 29 Pbx: (571) 3384904 Fax: (571) 3384905 Bogotá D.C. – Colombia.	Colombia	Dollar	-	100.0000	100.0000
SQM Australia PTY	foreign	Level 16, 201 Elizabeth Street Sydney	Australia	Dollar	-	100.0000	100.0000
SQM International N.V.	foreign	Houtdok-Noordkaai 25a B-2030 Amberes	Belgium	Dollar	0.5800	99.4200	100.0000
SQM (Shanghai) Chemicals Co. Ltd.	foreign	Room 4703-33, 47F, No.300 Middle Huaihai Road, Huangpu district, Shanghai	China	Dollar	-	100.0000	100.0000
SQM Korea LLC	foreign	Suite 22, Kyobo Building, 15th Floor, 1 Jongno Jongno-gu, Seoul, 03154 South Korea	Korea	Dollar	-	100.0000	100.0000
SQM Holland B.V.	Extranjero	Herikerbergweg 238, 1101 CM Amsterdam Zuidoost	Holland	Dollar	-	100.0000	100.0000

46 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

7.2 Assets, liabilities, results of consolidated subsidiaries as of June 30, 2021 and for the period then ended.

	Assets				Liabilities									Comprehensive
	Currents		Non-currents		Currents		Non-currents		Revenue		Net profit (loss)			income (loss)
Subsidiaries	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQM Nitratos S.A.		575,590		57,752		473,867		6,363		79,317		21,366			21,502
SQM Potasio S.A.		29,360		1,188,545		198,538		22,497		1,198		50,004			50,592
Serv. Integrales de Tránsito y Transf. S.A.		70,203		35,392		87,842		7,052		13,848		1,545			1,602
Isapre Norte Grande Ltda.		761		785		650		180		2,070		52			51
Ajay SQM Chile S.A.		21,118		1,683		4,628		753		24,508		707			707
Almacenes y Depósitos Ltda.		250		54		-		-		-		(9	)		(36	)
SQM Salar S.A.		966,059		1,088,362		928,821		231,702		347,226		45,783			46,443
SQM Industrial S.A.		1,080,852		700,417		717,479		113,974		381,928		66,176			67,695
Exploraciones Mineras S.A.		14,423		21,925		6,701		-		367		(209	)		(209	)
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.		256		525		390		254		1,848		(6	)		(8	)
Soquimich Comercial S.A.		171,320		13,511		96,073		12,011		53,235		6,289			6,370
Comercial Agrorama Ltda.		625		925		3,951		20		644		101			104
Comercial Hydro S.A.		4,835		11		9		3		14		4			4
Agrorama S.A.		71		-		5,465		2		89		53			60
Orcoma SpA		16		2,366		60		-		-		(11	)		(11	)
Orcoma Estudio SpA		27		5,283		1,162		-		-		(5	)		(5	)
SQM MaG SPA		1,948		494		1,556		4		1,619		5			6
Sociedad Contractual Minera Búfalo		82		577		648		-		-		(12	)		(12	)
SQM North America Corp.		132,376		20,748		112,243		1,499		150,635		2,655			3,058
RS Agro Chemical Trading Corporation A.V.V.		5,155		-		103		-		-		(15	)		(15	)
Nitratos Naturais do Chile Ltda.		2		129		3,149		-		-		(34	)		(34	)
Nitrate Corporation of Chile Ltd.		5,076		-		-		-		-		-			-
SQM Corporation N.V.		7,696		58,550		3,615		-		-		2,300			2,309
SQM Perú S.A.		27		-		84		-		-		1			1
SQM Ecuador S.A.		25,362		873		19,265		59		20,607		2,591			2,591
SQM Brasil Ltda.		153		1		517		2,137		-		(100	)		(100	)
Subtotal		3,113,643		3,198,908		2,666,816		398,510		1,079,153		199,231			202,665

47 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

	Assets				Liabilities									Comprehensive
	Currents		Non-currents		Currents		Non-currents		Revenue		Net profit (loss)			income (loss) Currents
Subsidiaries	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQMC Holding Corporation L.L.P.		31,390		17,687		2,173		-		-		1,399			1,399
SQM Japan Co. Ltd.		27,246		227		24,004		238		33,071		48			48
SQM Europe N.V.		410,138		6,536		339,447		2,244		420,641		17,123			17,123
SQM Indonesia S.A.		3		-		1		-		-		-			-
North American Trading Company		156		145		-		-		-		-			-
SQM Virginia LLC		14,798		14,340		14,798		-		-		-			-
SQM Comercial de México S.A. de C.V.		98,203		7,255		63,947		1,757		115,141		3,070			3,070
SQM Investment Corporation N.V.		13,964		147,795		5,550		865		-		15,019			15,046
Royal Seed Trading Corporation A.V.V.		49		-		18,904		-		-		(25	)		(25	)
SQM Lithium Specialties LLP		15,746		3		1,264		-		-		-			-
Comercial Caimán Internacional S.A.		257		-		1,122		-		-		(1	)		(1	)
SQM France S.A.		345		6		114		-		-		-			-
Administración y Servicios Santiago S.A. de C.V.		322		90		486		189		1,358		8			8
SQM Nitratos México S.A. de C.V.		160		18		84		20		609		17			17
Soquimich European Holding B.V.		5,880		191,987		316		-		-		20,244			20,280
SQM Iberian S.A.		47,158		2,337		22,351		4		67,699		3,418			3,418
SQM Africa Pty Ltd.		39,817		1,510		30,494		-		26,553		(19	)		(19	)
SQM Oceania Pty Ltd.		4,939		-		2,868		-		1,790		(376	)		(376	)
SQM Beijing Commercial Co. Ltd.		2,053		8		18		-		5,343		(132	)		(132	)
SQM Thailand Limited		3,242		-		2		-		-		(215	)		(215	)
SQM Colombia SAS		8,092		162		7,751		-		7,527		359			359
SQM International NV		31,720		767		10,108		11,767		41,025		(908	)		(908	)
SQM Shanghai Chemicals Co. Ltd.		139,631		219		115,329		-		122,218		19,305			19,305
SQM Australia Pty Ltd.		39,282		158,476		13,414		62		-		(2,149	)		(2,149	)
SQM Korea LLC		1,299		164		869		-		503		(73	)		(73	)
SQM Holland B.V.		8,337		15,783		4,443		17		10,360		109			109
Subtotal		944,227		565,515		679,857		17,163		853,838		76,221			76,284
Total		4,057,870		3,764,423		3,346,673		415,673		1,932,991		275,452			278,949

48 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

Assets, liabilities, results of consolidated subsidiaries as of December 31, 2020 and for the period ended June 30, 2020.

	Assets				Liabilities									Comprehensive
	Current		Non-current		Current		Non-current		Revenue		Net profit (loss)			income (loss)
Subsidiary	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQM Nitratos S.A.		475,132		63,848		395,914		5,047		93,568		32,282			32,254
SQM Potasio S.A.		16,680		1,108,579		155,379		23,323		1,356		26,095			26,064
Serv. Integrales de Tránsito y Transf. S.A.		55,142		36,291		75,848		6,485		17,683		3,664			3,671
Isapre Norte Grande Ltda.		812		839		795		181		1,476		48			30
Ajay SQM Chile S.A.		25,441		1,549		9,563		713		18,685		730			730
Almacenes y Depósitos Ltda.		256		51		-		-		-		(1	)		(93	)
SQM Salar S.A.		855,683		1,035,088		814,686		214,914		283,692		31,602			31,561
SQM Industrial S.A.		950,058		679,345		634,105		113,230		433,304		65,972			66,174
Exploraciones Mineras S.A.		16,572		22,293		9,010		-		-		(114	)		(114	)
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.		279		571		305		396		1,064		35			22
Soquimich Comercial S.A.		136,623		13,796		56,293		12,630		35,367		1,296			1,332
Comercial Agrorama Ltda.		683		970		4,215		23		607		-			(2	)
Comercial Hydro S.A.		4,834		15		14		4		14		12			12
Agrorama S.A.		55		-		5,631		10		152		149			149
Orcoma SpA		3		2,365		35		-		-		(5	)		(5	)
Orcoma Estudio SpA		4		4,559		411		-		-		(322	)		(322	)
SQM MaG SPA		1,491		521		1,129		6		959		55			55
Sociedad Contractual Minera Búfalo		50		323		350		-		-		2			2
SQM North America Corp.		124,679		21,085		107,801		1,638		123,630		(37	)		(37	)
RS Agro Chemical Trading Corporation A.V.V.		5,155		-		88		-		-		(12	)		(12	)
Nitratos Naturais do Chile Ltda.		-		128		3,109		-		-		230			230
Nitrate Corporation of Chile Ltd.		5,076		-		-		-		-		-			-
SQM Corporation N.V.		7,696		56,356		3,607		-		-		3,678			3,678
SQM Perú S.A.		25		-		83		-		-		-			-
SQM Ecuador S.A.		26,490		918		23,074		59		16,833		(527	)		(527	)
SQM Brasil Ltda.		217		1		508		2,111		-		111			111
Subtotal		2,709,136		3,049,491		2,301,953		380,770		1,028,390		164,943			164,963

49 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

	Assets				Liabilities									Comprehensive
	Currents		Non-currents		Currents		Non-currents		Revenue		Net profit (loss)			income (loss) Currents
Subsidiaries	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQMC Holding Corporation L.L.P.		30,777		16,414		1,687		-		-		1,212			1,212
SQM Japan Co. Ltd.		25,122		243		21,926		255		38,876		268			268
SQM Europe N.V.		456,357		3,844		399,930		2,411		331,012		(4,453	)		(4,453	)
SQM Indonesia S.A.		3		-		1		-		-		-			-
North American Trading Company		156		145		-		-		-		38			38
SQM Virginia LLC		14,798		14,340		14,798		-		-		(3	)		(3	)
SQM Comercial de México S.A. de C.V.		107,803		7,574		76,721		1,972		107,292		2,084			2,084
SQM Investment Corporation N.V.		13,965		132,994		5,434		864		-		438			438
Royal Seed Trading Corporation A.V.V.		21		-		18,851		-		-		(21	)		(21	)
SQM Lithium Specialties LLP		15,746		3		1,264		-		-		(3	)		(3	)
Comercial Caimán Internacional S.A.		258		-		1,122		-		-		-			-
SQM France S.A.		345		6		114		-		-		-			-
Administración y Servicios Santiago S.A. de C.V.		221		47		350		188		1,322		63			63
SQM Nitratos México S.A. de C.V.		141		13		77		20		487		(5	)		(5	)
Soquimich European Holding B.V.		5,046		172,956		245		-		-		3,843			3,843
SQM Iberian S.A.		41,485		2,359		20,118		4		53,708		1,087			1,087
SQM Africa Pty Ltd.		47,069		1,420		37,636		-		23,232		1,488			1,488
SQM Oceania Pty Ltd.		3,951		-		1,516		-		1,690		106			106
SQM Beijing Commercial Co. Ltd.		12,086		30		9,942		-		10,258		49			49
SQM Thailand Limited		3,539		-		83		-		1,669		212			212
SQM Colombia SAS		11,621		176		11,653		-		5,785		(38	)		(38	)
SQM International		31,998		923		17,374		4,027		61,571		559			559
SQM Shanghai Chemicals Co. Ltd.		84,318		379		79,482		-		17,508		(1,147	)		(1,147	)
SQM Australia Pty Ltd.		21,749		130,152		4,306		158		-		(546	)		(546	)
SQM Korea LLC		587		122		42		-		-		-			-
SQM Holland B.V.		3,767		16,248		460		4		-		(26	)		(26	)
Subtotal		932,929		500,388		725,132		9,903		654,410		5,205			5,205
Total		3,642,065		3,549,879		3,027,085		390,673		1,682,800		170,148			170,168

50 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

7.3 Background on non-controlling interests

	% of interests in the ownership			Profit (loss) attributable to non-controlling interests for the period ended				Equity, non-controlling interests for the period ended						Dividends paid to non-controlling interests for the period ended
Subsidiary	held by non- controlling interests			As of June 30, 2021		As of June 30, 2020		As of June 30, 2021			As of June 30, 2020			As of June 30, 2021		As of June 30, 2020
				ThUS$		ThUS$		ThUS$			ThUS$			ThUS$		ThUS$
SQM Potasio S.A.		0.0000001	%		-		-		-			-			-		-
Ajay SQM Chile S.A.		49.00000	%		347		357		8,536			8,598			-		277
Soquimich Comercial S.A.		39.36168	%		2,475		510		30,209			36,405			4,443		2,478
Comercial Agrorama Ltda.		30.00000	%		30		1		(726	)		(632	)		-		-
SQM Indonesia S.A.		20.00000	%		-		-		1			1			-		-
Agrorama S.A.		0.00000	%		-		-		-			-			-		-
SQM Thailand Limited		0,00400	%		-		-		-			-			-		-
Total					2,852		868		38,020			44,372			4,443		2,755

51 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Note 8  Equity-accounted investees

8.1  Investments in associates recognized according to the equity method of accounting

As of June 30, 2021, and December 31, 2020, in accordance with criteria established in Note 2:

Associates	Equity-accounted investees				Share in profit (loss) of associates accounted for using the equity method for the period ended					Share in other comprehensive income of associates accounted for using the equity method for the period ended						Share in comprehensive income of associates accounted for using the equity method for the period ended
	As of June 30, 2021 (***)		As of December 31, 2020 (***)		As of June 30, 2021		As of June 30, 2020			As of June 30, 2021			As of June 30, 2020			As of June 30, 2021		As of June 30, 2020
	ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$			ThUS$		ThUS$
Abu Dhabi Fertilizer Industries WWL		8,705		11,505		-		(156	)		-			-			-		(156	)
Doktor Tarsa Tarim Sanayi AS (*)		-		-		-		4,031			-			(254	)		-		3,777
Ajay North America		15,868		14,468		1,683		1,430			-			-			1,683		1,430
Ajay Europe SARL		7,252		7,875		797		731			(343	)		18			454		749
SQM Eastmed Turkey (*)		-		-		-		247			-			(79	)		-		168
Kore Potash PLC (**)		-		26,175		-		218			-			(129	)		-		89
Total		31,825		60,023		2,480		6,501			(343	)		(444	)		2,137		6,057

(*) These investments were disposed of in 2020 as informed in the annual financial statements.

(**) For more details, See Note 8.3 (a).

52 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

	Description of the nature of the		Country of	Share of ownership			Dividends received for the period ending
Associate	relationship	Address	incorporation	in associates			As of June 30, 2021		As of June 30, 2020
							ThUS$		ThUS$
Abu Dhabi Fertilizer Industries WWL	Distribution and commercialization of specialty plant nutrients in the Middle East.	PO Box 71871, Abu Dhabi	United Arab Emirates		37	%		-		-
Ajay North America	Production and distribution of iodine and iodine derivatives.	1400 Industry RD Power Springs GA 30129	United States		49	%		411		890
Ajay Europe SARL	Production and distribution of iodine and iodine derivatives.	Z.I. du Grand Verger BP 227 53602 Evron Cedex	France		50	%		992		1,197
Kore Potash PLC	Prospecting, exploration and mining development.	L 3 88 William ST Perth, was 6000	United Kingdom		14.65	%		-		-
Doktor Tarsa Tarim Sanayi AS	Distribution and commercialization of specialty plant nutrients in the Turkey.	Organize Sanayi Bolgesi, Ikinci Kisim, 22 cadde TR07100 Antalya	Turkey		50	%		-		-
SQM Eastmed Turkey	Production and trading of specialty products.	Organize Sanayi Bolgesi, Ikinci Kisim, 22 cadde TR07100 Antalya	Turkey		50	%		-		-
Total								1,403		2,087

53 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

8.2  Assets, liabilities, revenue and expenses of associates

	As of June 30, 2021								For the period ended as of June 30, 2021
Associate	Assets				Liabilities									Other comprehensive			Comprehensive
	Current		Non-current		Current		Non-current		Revenue		Net gain (loss)			income			income
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
Abu Dhabi Fertilizer Industries WWL		26,356		5,072		7,806		96		-		(7,568	)		-			(7,568	)
Ajay North America		23,565		15,368		6,549		-		26,396		3,435			-			3,435
Ajay Europe SARL		26,636		1,395		13,527		-		28,187		1,595			(343	)		1,252
Total		76,557		21,835		27,882		96		54,583		(2,538	)		(343	)		(2,881	)

	As of December 31, 2020								For the period ended as of June 30, 2020
Associate	Assets				Liabilities									Other comprehensive			Comprehensive
	Current		Non-current		Current		Non-current		Revenue		Net gain (loss)			income			income
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
Abu Dhabi Fertilizer Industries WWL		29,313		8,586		6,706		101		6,641		(420	)		-			(420	)
Doktor Tarsa Tarim Sanayi AS		-		-		-		-		56,385		8,063			(508	)		7,555
Ajay North America		18,513		15,749		4,737		-		23,920		2,917			-			2,917
Ajay Europe SARL		22,032		1,493		7,773		-		23,507		1,462			37			1,499
SQM Eastmed Turkey		-		-		-		-		1,546		495			(158	)		337
Kore Potash PLC		5,691		124,112		786		-		-		-			(676	)		(676	)
Total		75,549		149,940		20,002		101		111,999		12,517			(1,305	)		11,212

54 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

8.3  Other information

(a)  Transactions for the period ended June 30, 2021:

· During the first quarter 2021, Kore Potash PLC made a share payment to its non-executive board members (remuneration shares) plus certain employees and former employees (performance shares) which resulted in a 0.05% share reduction for the company, leaving it with 20.15%.During the second quarter of 2021, Kore Potash PLC approved a capital stock increase of ThUS$ 13,931 through the issuance of common shares, which resulted in a dilution of 5.5% of SQM shares in the company, with an impact of ThUS$ (5,778) on other losses. As a result of the dilution, the Company considers that there has been a loss of significant influence on the investment, discontinued the measurement through the equity method, and recognized an amount of ThUS$ 3,739 in other losses related to items in other comprehensive income associated with this investment. See Note 13.1 for more details.

· On June 30, 2021, the Company made an assessment of the recovery of the investment in Abu Dhabi Fertilizer Industries WWL and recognized an impairment of ThUS$ 2,800 in other losses.

(b)  Transactions for the period ended June 30, 2020:

· Kore Potash PLC made a share payment to its non-executive board members, which resulted in a 0.60% share reduction for the company, finalizing with a share percentage of 19.07% at the close of the second quarter of 2020.

· During the second quarter of 2020, Soquimich European Holding made a prepayment of ThUS$ 562 in favor of the agreement to purchase the plant that processes the WNSPK product. This is presented in Non-Current Other Financial Assets.

55 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Note 9  Joint Ventures

9.1 Investment in joint ventures accounted for under the equity method of accounting.

	Equity-accounted investees				Share in profit (loss) of joint ventures accounted for using the equity method, for the period ended					Share on other comprehensive income of joint ventures accounted for using the equity method, for the period ended						Share on  comprehensive income of joint ventures accounted for using the equity method for the period ended
Joint Venture	As of June 30, 2021 (****)		As of December 31, 2020 (****)		As of June 30, 2021		As of June 30, 2020			As of June 30, 2021			As of June 30, 2020			As of June 30, 2021		As of June 30, 2020
	ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$			ThUS$		ThUS$
SQM Vitas Fzco.		14,754		9,720		2,743		8			233			(1,689	)		2,976		(1,681	)
SQM Qingdao Star Corp Nutrition Co. Ltd. (*)		-		-		-		82			-			-			-		82
Pavoni & C. Spa		7,301		7,222		338		194			(142	)		7			196		201
Covalent Lithium Pty Ltd. (**)		-		-		-		216			17			39			17		255
Sichuan SQM Migao Chemical Fertilizers Co Ltd. (***)		-		9,028		-		(608	)		-			-			-		(608	)
Total		22,055		25,970		3,081		(108	)		108			(1,643	)		3,189		(1,751	)

(*)These investments were disposed of in 2020 as informed in the annual financial statements. .

(**) See more details in Note 9.4 (a).

56 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

The amounts described in the following box represent numbers used in the consolidation of the company:

	Equity-accounted investees				Share in profit (loss) of associates and joint ventures accounted for using the equity method, for the period ended					Share on other comprehensive income of associates and joint ventures accounted for using the equity method, for the period ended					Share on total other comprehensive income of associates and joint ventures accounted for using the equity method for the period ended
Associates	As of June 30, 2021		As of December 31, 2020		As of June 30, 2021		As of June 30, 2020			As of June 30, 2021		As of June 30, 2020			As of June 30, 2021		As of June 30, 2020
	ThUS$		ThUS$		ThUS$		ThUS$			ThUS$		ThUS$			ThUS$		ThUS$
SQM Vitas Brasil Agroindustria (1)		7,087		3,511		2,562		(392	)		233		(1,689	)		2,795		(2,081	)
SQM Vitas Perú S.A.C. (1)		3,047		1,659		179		134			-		-			179		134
Total		10,134		5,170		2,741		(258	)		233		(1,689	)		2,974		(1,947	)

The following companies are subsidiaries of:

(1) SQM Vitas Fzco.

							Dividends received for the period ending
							As of June 30, 2021		As of June 30, 2020
Joint venture	Description of the nature of the relationship	Domicile	Country of incorporation	Share of interest in ownership			ThUS$		ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.	Production and distribution of soluble fertilizers.	Huangjing Road, Dawan Town, Qingbaijiang Dristrict, Chengdu Municipality, Sichuan Province	China		50	%		-		-
Coromandel SQM India	Production and distribution of potassium nitrate.	1-2-10, Sardar Patel Road, Secunderabad – 500003 Andhra Pradesh	India		50	%		-		-
SQM Vitas Fzco.	Production and commercialization of specialty plant, animal nutrition and industrial hygiene.	Jebel ALI Free Zone P.O. Box 18222, Dubai	United Arab Emirates		50	%		-		-
SQM Qingdao Star Corp Nutrition Co. Ltd.	Production and distribution of nutrient plant solutions with specialties NPK soluble.	Longquan Town, Jimo City, Qingdao Municipality, Shangdong Province	China		50	%		-		2,223
Pavoni & C. Spa	Production of specialty fertilizers and others for distribution in Italy and other countries.	Corso Italia 172, 95129 Catania (CT), Sicilia	Italy		50	%		-		-
Covalent Lithium Pty Ltd.	Development and operation of the Mt Holland Lithium project, which will include the construction of a lithium extraction and refining mine.	L18, 109 St Georges Tce Perth WA 6000 |PO Box Z5200 St Georges Tce Perth WA 6831	Australia		50	%		-		-
Total								-		2,223

57 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

The companies described in the following table are related to the following joint ventures:

(1)	SQM Vitas Fzco.
(2)	Pavoni & C. Spa.

							Dividends received for the period ending
Joint venture	Description of the nature of the relationship	Domicile	Country of incorporation	Share of interest in ownership (*)			As of June 30, 2021		As of June 30, 2020
							ThUS$		ThUS$
SQM Vitas Brasil Agroindustria (1)	Production and trading of specialty vegetable and animal nutrition and industrial hygiene.	Via Cndeias, Km. 01 Sem Numero, Lote 4, Bairro Cia Norte, Candeias, Bahia.	Brazil		49.99	%		-		-
SQM Vitas Perú S.A.C. (1)	Production and trading of specialty vegetable and animal nutrition and industrial hygiene	Av. Juan de Arona 187, Torre B, Oficina 301-II, San Isidro, Lima	Peru		50	%		-		-
Arpa Speciali S.R.L. (2)	Production of specialty fertilizers and others for distribution in Italy and other countries.	Mantova (MN) Via Cremona 27 Int. 25	Italy		50.48	%		-		-
Total								-		-

(*) The percentages presented correspond to the ownership used in the consolidation of the company.

58 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

9.2 Assets, liabilities, revenue and expenses from joint ventures

	As of June 30, 2021								For the period ended June 30, 2021
Joint Venture	Assets				Liabilities								Other comprehensive			Comprehensive
	Current		Non-current		Current		Non-current		Revenue		Net gain (loss)		income			income
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQM Vitas Fzco.		3,623		26,394		509		-		-		5,486		-			5,486
SQM Vitas Brasil Agroindustria		45,687		6,006		33,920		-		46,240		5,125		467			5,592
SQM Vitas Perú S.A.C.		25,132		7,633		23,198		944		20,848		359		-			359
Pavoni & C. Spa		14,931		7,134		13,187		689		12,127		675		(285	)		390
Covalent Lithium Pty Ltd.		3,473		1,855		4,453		950		-		73		35			108
Total		92,846		49,022		75,267		2,583		79,215		11,718		217			11,935

	As of December 31, 2020									For the period ended June 30, 2020
Joint Venture	Assets					Liabilities									Other comprehensive			Comprehensive
	Current			Non-current		Current		Non-current		Revenue		Net gain (loss)			income			income
	ThUS$			ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		29,507			4,412		14,156		-		-		(1,217	)		-			(1,217	)
SQM Vitas Fzco.		(496	)		20,431		496		-		-		15			-			15
SQM Qingdao Star Corp Nutrition Co. Ltd.		-			-		-		-		2,770		166			-			166
SQM Vitas B.V.		-			-		-		-		-		-			-			-
SQM Vitas Brasil Agroindustria		40,064			5,527		33,410		-		35,709		(784	)		(3,379	)		(4,163	)
SQM Vitas Perú S.A.C.		34,548			7,928		33,145		1,080		17,244		267			-			267
Pavoni & C. Spa		10,645			7,493		9,270		836		10,048		387			15			402
Covalent Lithium Pty Ltd.		1,418			2,131		2,823		910		-		432			79			511
Total		115,686			47,922		93,300		2,826		65,771		(734	)		(3,285	)		(4,019	)

59 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

9.3 Other Joint Venture disclosures

	Cash and cash equivalents				Other current financial liabilities				Other non-current financial liabilities
Joint Venture	As of June 30, 2021		As of December 31, 2020		As of June 30, 2021		As of December 31, 2020		As of June 30, 2021		As of December 31, 2020
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		-		30		-		-		-		-
SQM Vitas Fzco.		4,092		4,251		-		-		-		-
SQM Vitas Brasil Agroindustria		2,385		4,065		7,774		6,820		-		-
SQM Vitas Perú S.A.C.		436		1,043		233		227		495		691
Pavoni & C. Spa		810		767		6,706		5,573		-		-
Covalent Lithium Pty Ltd.		2,696		653		785		953		-		-
Total		10,419		10,809		15,498		13,573		495		691

	Depreciation and amortization expense for the period ending						Interest expense for the period ending						Income tax benefit (expense) for the period ending
Joint Venture	As of June 30, 2021			As of June 30, 2020			As of June 30, 2021			As of June 30, 2020			As of June 30, 2021			As of June 30, 2020
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		-			(366	)		-			-			-			82
SQM Vitas Fzco.		-			-			-			(1	)		-			-
SQM Qingdao Star Corp Nutrition Co. Ltd.		-			(18	)		-			-			-			(10	)
SQM Vitas Brasil Agroindustria		(153	)		(148	)		(154	)		(359	)		-			-
SQM Vitas Perú S.A.C.		(178	)		(170	)		(153	)		(164	)		(107	)		(107	)
Pavoni & C. Spa		(126	)		(117	)		(153	)		(188	)		(319	)		(267	)
Covalent Lithium Pty Ltd.		(88	)		(85	)		(23	)		(13	)		-			432
Total		(545	)		(904	)		(483	)		(725	)		(426	)		130

60 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

9.4 Disclosure of interests in joint ventures

a)            Transactions for the period ended June 30, 2021

●  On February 9, 2021, two of the Company’s subsidiaries signed an agreement to terminate a dispute related to sales contracts and interest in the joint venture of Sichuan SQM Migao Chemical Fertilizers Co Ltd. Consequently, the Company received US$ 11.5 million.

b)            Transactions for the period ended June 30, 2020

●  SQM Vitas BV became a wholly owned subsidiary of the Company during the second quarter of 2020, through its subsidiary Soquimich European Holdings, at a cost of ThUS$ 1,276 and its name has been changed to SQM Holland. See Note 8.1.

9.5 Joint Operation

In 2017, together with our subsidiary SQM Australia Pty, we entered into an agreement to acquire 50% of the assets of the Mt Holland lithium project in Western Australia. The Mt Holland Lithium Project consist, to design, construct and operate a mine, concentrator and refinery to produce approximately 50,000 metric tons of lithium hydroxide per year.

In addition, the Company will finance the activities of Mt Holland for a year in an amount of US$ 30 million. As of December 31, 2020, the Company had made contributions in the amount of US$ 30 million, of which, US$ 15 million was paid in favor of the partner in the project and presented as other receivables. As of June 30, 2021, this receivable was collected when it was contributed to Mt Holland in the Company’s name. The Company approved the investment decision referred to in Note 1.8.

61 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Note 10 Cash and cash equivalents

10.1 Types of cash and cash equivalents

As of June 30, 2021, and December 31, 2020, cash and cash equivalents are detailed as follows:

Cash	As of June 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Cash on hand		49		54
Cash in banks		574,714		244,548
Other demand deposits		-		2,527
Total Cash		574,763		247,129

Cash equivalents	As of June 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Short-term deposits, classified as cash equivalents		137,688		51,595
Short-term investments, classified as cash equivalents		530,402		210,378
Total cash equivalents		668,090		261,973
Total cash and cash equivalents		1,242,853		509,102

10.2 Short-term investments, classified as cash equivalents

As of June 30, 2021, and December 31, 2020, the short-term investments classified as cash and cash equivalents relate to mutual funds (investment liquidity funds) for investments in:

Institution	As of June 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Legg Mason - Western Asset Institutional Cash Reserves		256,635		107,625
JP Morgan US dollar Liquidity Fund Institutional		273,767		102,753
Total		530,402		210,378

Short-term investments are highly liquid mutual funds that are basically invested in short-term fixed rate notes in the U.S. market.

62 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

10.3 Information on cash and cash equivalents by currency

As of June 30, 2021, and December 31, 2020, information on cash and cash equivalents by currency is detailed as follows:

Currency	As of June 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Peso (*)		13,496		7,190
Dollar		1,177,528		454,402
Euro		4,586		17,144
Mexican Peso		1,616		1,378
South African Rand		4,137		14,286
Japanese Yen		1,813		1,646
Peruvian Sol		6		3
Indian rupee		-		6
Chinese Yuan		14,275		11,597
Indonesian rupee		3		3
Pound Sterling		3		19
Australian Dollar		24,463		1,411
South Korean won		331		16
Dirham United Arab Emirates		595		-
Polish Zloty		1		1
Total		1,242,853		509,102

(*) The Company maintains financial derivative instruments policies which allow management to convert term deposits denominated in pesos and UF to Dollars.

10.4 Amount restricted cash balances

The Company has granted a guarantee consisting of financial instruments, specified in deposits, custody and administration to Banco de Chile, for its subsidiary Isapre Norte Grande Ltda., in compliance with the provisions of the Superintendence of Health, which regulates social security health institutions.

According to the regulations of the Superintendence of Health, this guarantee is for the total payable to its affiliates and medical providers. Banco de Chile reports the current value of the guarantee to the Superintendence of Health and Isapre Norte Grande Ltda. on a daily basis.

As of June 30, 2021, and, December 31, 2020 pledged assets are as follows

Restricted cash balances	As of June 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Isapre Norte Grande Ltda.		691		731
Total		691		731

63 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

10.5            Short-term deposits, classified as cash equivalents

The detail at the end of each period is as follows:

Receiver of the deposit	Type of deposit	Original Currency	Interest Rate			Placement date	Expiration date	Principal		Interest accrued to-date		As of June 30, 2021
								ThUS$		ThUS$		ThUS$
Banco Itaú Corpbanca	Fixed term	Peso		0.35	%	05-04-2021	08-02-2021		18,000		10		18,010
Banco Itaú Corpbanca	Fixed term	Dollar		0.35	%	05-08-2021	07-27-2021		20,000		7		20,007
Banco Itaú Corpbanca	Fixed term	Dollar		0.35	%	04-15-2021	07-14-2021		8,000		6		8,006
Scotiabank Sud Americano	Fixed term	Dollar		0.35	%	04-15-2021	07-14-2021		46,000		34		46,034
Banco Itaú Corpbanca	Fixed term	Dollar		0.17	%	06-29-2021	07-07-2021		5,000		-		5,000
Banco crédito e inversiones	Fixed term	Dollar		0.07	%	06-29-2021	07-07-2021		8,000		-		8,000
Banco crédito e inversiones	Fixed term	Dollar		0.05	%	06-01-2021	07-02-2021		2,500		-		2,500
Banco de Chile	Fixed term	Dollar		0.06	%	06-22-2021	07-30-2021		2,000		-		2,000
Banco de Chile	Fixed term	Dollar		0.11	%	06-04-2021	07-19-2021		1,500		-		1,500
Banco de Chile	Fixed term	Dollar		0.11	%	06-07-2021	07-09-2021		1,000		-		1,000
Banco de Chile	Fixed term	Dollar		0.16	%	06-11-2021	07-23-2021		4,000		-		4,000
Banco Estado	Fixed term	Dollar		0.12	%	06-30-2021	07-07-2021		4,122		-		4,122
Banco Santander	Fixed term	Dollar		0.30	%	05-10-2021	07-15-2021		6,000		3		6,003
Banco Santander	Fixed term	Dollar		0.09	%	06-30-2021	07-30-2021		3,000		-		3,000
Scotiabank Sud Americano	Fixed term	Dollar		0.04	%	06-23-2021	07-09-2021		5,000		-		5,000
Scotiabank Sud Americano	Fixed term	Dollar		0.40	%	06-29-2021	07-30-2021		3,500		-		3,500
Banco Itaú Corpbanca	Fixed term	Dollar		2.45	%	06-26-2021	07-06-2021		6		-		6
Total									137,628		60		137,688

64 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

Receiver of the deposit	Type of deposit	Original Currency	Interest Rate			Placement date	Expiration date	Principal		Interest accrued to-date		As of December 31, 2020
								ThUS$		ThUS$		ThUS$
Banco Santander - Santiago	Fixed term	Dollar		0.35	%	12-30-2020	03-30-2021		7,000		-		7,000
Scotiabank Sud Americano	Fixed term	Dollar		0.35	%	11-30-2020	01-08-2021		1,500		1		1,501
Banco de Chile	Fixed term	Dollar		0.61	%	11-30-2020	01-08-2021		2,000		1		2,001
Banco de Chile	Fixed term	Dollar		0.61	%	11-30-2020	01-08-2021		3,500		1		3,501
Banco crédito e inversiones	Fixed term	Dollar		0.46	%	12-01-2020	01-15-2021		500		-		500
Scotiabank Sud Americano	Fixed term	Dollar		0.40	%	12-01-2020	01-15-2021		500		-		500
Scotiabank Sud Americano	Fixed term	Dollar		0.40	%	12-02-2020	01-20-2021		2,500		1		2,501
Banco Santander - Santiago	Fixed term	Dollar		0.50	%	12-09-2020	01-25-2021		500		-		500
Scotiabank Sud Americano	Fixed term	Dollar		0.50	%	12-09-2020	01-25-2021		1,000		-		1,000
Banco Santander - Santiago	Fixed term	Dollar		0.50	%	12-09-2020	01-25-2021		6,000		1		6,001
Banco crédito e inversiones	Fixed term	Dollar		0.51	%	12-09-2020	01-25-2021		6,000		1		6,001
Banco crédito e inversiones	Fixed term	Dollar		0.26	%	12-14-2020	01-29-2021		500		-		500
Banco Estado	Fixed term	Dollar		0.14	%	12-14-2020	01-29-2021		1,000		1		1,001
Scotiabank Sud Americano	Fixed term	Dollar		0.40	%	12-14-2020	01-29-2021		1,500		-		1,500
Banco de Chile	Fixed term	Dollar		0.56	%	12-14-2020	01-29-2021		5,000		1		5,001
Banco Itaú Corpbanca	Fixed term	Dollar		0.68	%	12-18-2020	02-01-2021		500		-		500
Banco Itaú Corpbanca	Fixed term	Dollar		0.68	%	12-18-2020	02-01-2021		2,000		1		2,001
Banco crédito e inversiones	Fixed term	Dollar		0.20	%	12-23-2020	02-05-2021		2,000		1		2,001
Banco Itaú Corpbanca	Fixed term	Dollar		0.40	%	12-24-2020	02-08-2021		1,000		-		1,000
Banco Santander - Santiago	Fixed term	Dollar		0.26	%	12-29-2020	01-08-2021		2,500		1		2,501
Banco Santander - Santiago	Fixed term	Dollar		0.15	%	12-30-2020	02-12-2021		700		-		700
Banco Itaú Corpbanca	Fixed term	Peso		0.35	%	12-29-2020	01-05-2021		3,798		-		3,798
BBVA Banco Francés	Fixed term	Dollar		1.80	%	12-31-2020	03-06-2021		86		-		86
Total									51,584		11		51,595

65 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

10.6            Net Debt reconciliation

This section presents an analysis of net debt plus lease liabilities and their movements for each of the reported periods. The definition of the net debt is described in Note 20.1.

Net debt	As of June 30, 2021			As of December 31, 2020
	ThUS$			ThUS$
Cash and cash equivalents		1,242,853			509,102
Other current financial assets		709,453			348,069
Other non-current financial hedge assets		18,399			37,276
Other current financial liabilities		(42,137	)		(68,955	)
Lease liabilities, current		(7,770	)		(5,528	)
Other non-current financial liabilities		(1,898,493	)		(1,899,513	)
Non-current Lease liabilities		(31,448	)		(25,546	)
Total		(9,143	)		(1,105,095	)

				From cash flow								Not from cash flow
Cash and cash equivalents	As of December 31, 2020			Amounts from loans			Amounts from interests			Other cash income/expenses		Hedging and non- hedging instruments			Exchange rate differences			Others			As of June 30, 2021
	ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$			ThUS$			ThUS$
Obligations with the public and bank loans		(1,922,864	)		7,518			38,034			-		-			625			(38,882	)		(1,915,569	)
Current and non-current lease liabilities		(31,074	)		3,967			720			-		-			-			(12,831	)		(39,218	)
Financial instruments derived from hedging		18,070			(463	)		3,542			-		(4,025	)		-			(20,716	)		(3,592	)
Financial instruments derived from non-hedging		-			-			-			-		-			-			-			-
Current and non-current financial liabilities		(1,935,868	)		11,022			42,296			-		(4,025	)		625			(72,429	)		(1,958,379	)
Cash and cash equivalents		509,102			-			-			741,775		-			(8,024	)		-			1,242,853
Deposits that do not qualify as cash and cash equivalents		345,459			-			-			365,638		-			(7,730	)		(489	)		702,878
Derivatives from hedge assets		(21,004	)		-			(2,375	)		17,218		6,856			-			273			968
Derivatives from other financial non-hedge assets		(2,784	)		-			-			578		4,743			-			-			2,537
Total		(1,105,095	)		11,022			39,921			1,125,209		7,574			(15,129	)		(72,645	)		(9,143	)

66 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

Note 11 Inventories

The composition of inventory at each period-end is as follows:

Type of inventory	As of June 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Raw material		3,605		10,694
Production supplies		37,255		31,007
Products-in-progress		530,093		487,830
Finished product		524,673		563,497
Total		1,095,626		1,093,028

As of June 30, 2021, and December 31, 2020, the Company held caliche stockpiles, solutions in solar ponds and intermediary salts amounting ThUS$ 440,664 and ThUS$ 422,535, respectively (including products in progress).

As of June 30, 2021, bulk inventories recognized within work in progress and finished goods were ThUS$ 135,458 and ThUS$ 172,593 respectively.

As of June 30, 2021, and December 2020, inventory allowances recognized, amounted to ThUS$ 77,407 and ThUS$ 80,930, respectively. For finished and in-process products, recognized allowances include the provision associated with the lower value of stock (considers lower realizable value, uncertain future use, reprocessing costs of off-specification products, etc.), provision for inventory differences and the provision for potential errors in the determination of inventories (e.g., errors in topography, grade, moisture, etc.), (see Note 3.14).

For raw materials, supplies, materials and parts, the lower value provision was associated to the proportion of defective materials and potential differences.

The breakdown of inventory allowances is detailed as follows:

Type of inventory	As of June 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Raw material and supplies for production		1,143		1,934
Products-in-progress		61,954		66,122
Finished product		14,310		12,874
Total		77,407		80,930

The Company has not pledged inventory as collateral for the periods indicated above.

67 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

As of June 30, 2021, and December 31, 2020, movements in provisions are detailed as follows:

Conciliation	As of June 30, 2021			As of December 31, 2020
	ThUS$			ThUS$
Beginning balance		80,930			88,174
Increase in Lower Value (1)		(3,755	)		(5,404	)
Additional Provision Differences of Inventory (2)		-			(704	)
Increase / Decrease eventual differences and others (3)		905			1,244
Provision Used		(673	)		(2,380	)
Total changes		(3,523	)		(7,244	)
Final balance		77,407			80,930

(1)	There are three types of Lower Value Provisions: (a) Economic Realizable Lower Value, (b) Potential Inventory with Uncertain Future Use and (c) Reprocessing Costs of Off-Specification Products.
(2)	Provisions for Inventory Differences generated when physical differences are detected when taking inventory, which exceed the tolerance levels for this process.
(3)	This algorithm corresponds to the provision of diverse percentages based on the complexity in the measurement and rotation of stock, as well as standard differences based on previous results, as is the case with provisions relating to Commercial Offices.

68 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Note 12 Related party disclosures

12.1 Related party disclosures

Balances pending at period-end are not guaranteed, accrue no interest and are settled in cash, no guarantees have been delivered or received for trade and other receivables due from related parties or trade and other payables due to related parties.

12.2 Relationships between the parent and the entity

Pursuant to Article 99 of Law of the Securities Market Law, the CMF may determine that a company does not have a controlling entity in accordance with the distribution and dispersion of its ownership. On November 30, 2018, the CMF issued the ordinary letter No. 32,131 whereby it determined that Pampa Group, do not exert decisive power over the management of the Company since it does not have a predominance in the ownership that allows it to make management decisions. Therefore, the CMF has determined not to consider Pampa Group as the controlling entity of the Company and that the Company does not have a controlling entity given its current ownership structure.

69 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

12.3 Detailed identification of related parties and subsidiaries

As of June 30, 2021 and December 31, 2020, the detail of entities that are identified as subsidiaries or related parties of the SQM Group is as follows:

Tax ID No	Name	Country of origin	Functional currency	Nature
foreign	Nitratos Naturais Do Chile Ltda.	Brazil	Dollar	Subsidiary
foreign	Nitrate Corporation of Chile Ltd.	United Kingdom	Dollar	Subsidiary
foreign	SQM North America Corp.	United States	Dollar	Subsidiary
foreign	SQM Europe N.V.	Belgium	Dollar	Subsidiary
foreign	Soquimich European Holding B.V.	Netherlands	Dollar	Subsidiary
foreign	SQM Corporation N.V.	Curacao	Dollar	Subsidiary
foreign	SQM Comercial De México S.A. de C.V.	Mexico	Dollar	Subsidiary
foreign	North American Trading Company	United States	Dollar	Subsidiary
foreign	Administración y Servicios Santiago S.A. de C.V.	Mexico	Dollar	Subsidiary
foreign	SQM Perú S.A.	Peru	Dollar	Subsidiary
foreign	SQM Ecuador S.A.	Ecuador	Dollar	Subsidiary
foreign	SQM Nitratos Mexico S.A. de C.V.	Mexico	Dollar	Subsidiary
foreign	SQMC Holding Corporation L.L.P.	United States	Dollar	Subsidiary
foreign	SQM Investment Corporation N.V.	Curacao	Dollar	Subsidiary
foreign	SQM Brasil Limitada	Brazil	Dollar	Subsidiary
foreign	SQM France S.A.	France	Dollar	Subsidiary
foreign	SQM Japan Co. Ltd.	Japan	Dollar	Subsidiary
foreign	Royal Seed Trading Corporation A.V.V.	Aruba	Dollar	Subsidiary
foreign	SQM Oceania Pty Limited	Australia	Dollar	Subsidiary
foreign	Rs Agro-Chemical Trading Corporation A.V.V.	Aruba	Dollar	Subsidiary
foreign	SQM Indonesia S.A.	Indonesia	Dollar	Subsidiary
foreign	SQM Virginia L.L.C.	United States	Dollar	Subsidiary
foreign	Comercial Caimán Internacional S.A.	Panama	Dollar	Subsidiary
foreign	SQM África Pty. Ltd.	South Africa	Dollar	Subsidiary
foreign	SQM Colombia SAS	Colombia	Dollar	Subsidiary
foreign	SQM Internacional N.V.	Belgium	Dollar	Subsidiary
foreign	SQM (Shanghai) Chemicals Co. Ltd.	China	Dollar	Subsidiary
foreign	SQM Lithium Specialties LLC	United States	Dollar	Subsidiary
foreign	SQM Iberian S.A.	Spain	Dollar	Subsidiary
foreign	SQM Beijing Commercial Co. Ltd.	China	Dollar	Subsidiary
foreign	SQM Thailand Limited	Thailand	Dollar	Subsidiary
foreign	SQM Australia PTY	Australia	Dollar	Subsidiary
foreign	SQM Holland B.V.	Netherlands	Dollar	Subsidiary
foreign	SQM Korea LLC	Korea	Dollar	Subsidiary
96.801.610-5	Comercial Hydro S.A.	Chile	Dollar	Subsidiary
96.651.060-9	SQM Potasio S.A.	Chile	Dollar	Subsidiary
96.592.190-7	SQM Nitratos S.A.	Chile	Dollar	Subsidiary
96.592.180-K	Ajay SQM Chile S.A.	Chile	Dollar	Subsidiary
79.947.100-0	SQM Industrial S.A.	Chile	Dollar	Subsidiary
79.906.120-1	Isapre Norte Grande Ltda.	Chile	Peso	Subsidiary
79.876.080-7	Almacenes y Depósitos Ltda.	Chile	Peso	Subsidiary

70 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Tax ID No	Name	Country of origin	Functional currency	Nature
79.770.780-5	Servicios Integrales de Tránsitos y Transferencias S.A.	Chile	Dollar	Subsidiary
79.768.170-9	Soquimich Comercial S.A.	Chile	Dollar	Subsidiary
79.626.800-K	SQM Salar S.A.	Chile	Dollar	Subsidiary
76.534.490-5	Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.	Chile	Peso	Subsidiary
76.425.380-9	Exploraciones Mineras S.A.	Chile	Dollar	Subsidiary
76.064.419-6	Comercial Agrorama Ltda.	Chile	Peso	Subsidiary
76.145.229-0	Agrorama S.A.	Chile	Peso	Subsidiary
76.359.919-1	Orcoma Estudios SPA	Chile	Dollar	Subsidiary
76.360.575-2	Orcoma SPA	Chile	Dollar	Subsidiary
76.686.311-9	SQM MaG SpA	Chile	Dollar	Subsidiary
77.114.779-8	Sociedad Contractual Minera Búfalo	Chile	Dollar	Subsidiary
foreign	Abu Dhabi Fertilizer Industries WWL	Arab Emirates	Arab Emirates dirham	Associate
foreign	Ajay North America	United States	Dollar	Associate
foreign	Ajay Europe SARL	France	Euro	Associate
foreign	Kore Potash PLC	United Kingdom	Dollar	Associate
foreign	SQM Vitas Fzco.	Arab Emirates	Arab Emirates dirham	Joint venture
foreign	Covalent Lithium Pty Ltd.	Australia	Dollar	Joint venture
foreign	Pavoni & C, SPA	Italy	Euro	Joint venture
96.511.530-7	Sociedad de Inversiones Pampa Calichera	Chile	Dollar	Other related parties
96.529.340-K	Norte Grande S.A.	Chile	Peso	Other related parties
79.049.778-9	Callegari Agrícola S.A.	Chile	Peso	Other related parties
foreign	SQM Vitas Brasil Agroindustria (1)	Brazil	Brazilian real	Other related parties
foreign	SQM Vitas Perú S.A.C. (1)	Peru	Dollar	Other related parties
foreign	Abu Dhabi Fertilizer Industries WWL (2)	Oman	United Arab Emirates dirham	Other related parties
foreign	International Technical and Trading Agencies CO WLL (2)	Jordan	United Arab Emirates dirham	Other related parties

(1)	These Companies are subsidiaries of the joint venture SQM Vitas Fzco.
(2)	These Companies are subsidiaries of the joint venture Abu Dhabi Fertilizer Industries WWL Ltda. and therefore it absorbs these and takes responsibility of all of their assets and liabilities.

The following entities were considered related parties as of December 31, 2020: Sichuan SQM Migao Chemical Fertilizers Co Ltd.

71 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

The following other related parties correspond to mining contractual corporations.

Tax ID No.	Name	Country of origin	Functional currency	Relationship
N/A	Ara Dos Primera del Salar de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Ara Tres Primera del Salar de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Ara Cuatro Primera del Salar de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Ara Cinco Primera del Salar de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Curicó Dos Primera del Salar de Pampa Alta, Sierra Gorda	Chile	Peso	Other related parties
N/A	Curicó Tres Primera del Sector de Pampa Alta, Sierra Gorda	Chile	Peso	Other related parties
N/A	Evelyn Veinticuatro Primera de Sierra Gorda	Chile	Peso	Other related parties
N/A	Filomena Tres Primera de Oficina Filomena, Sierra Gorda	Chile	Peso	Other related parties
N/A	Filomena Cuatro Primera de Oficina Filomena, Sierra Gorda	Chile	Peso	Other related parties
N/A	Francis Cuatro Primera de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Francis Cuatro Segunda del Salar de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Francis Cuatro Tercera de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Francis Cuatro Cuarta de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Francis Cuatro Quinta de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Francis Primera del Salar de Pampa Blanca de Sierra Gorda	Chile	Peso	Other related parties
N/A	Francis Segunda del Salar de Pampa Blanca de Sierra Gorda	Chile	Peso	Other related parties
N/A	Francis Tercera del Salar de Pampa Blanca de Sierra Gorda	Chile	Peso	Other related parties
N/A	Ivon Primera de Sierra Gorda	Chile	Peso	Other related parties
N/A	Ivon Décima Segunda de Sierra Gorda	Chile	Peso	Other related parties
N/A	Ivon Sexta de Sierra Gorda	Chile	Peso	Other related parties
N/A	Julia Primera de Sierra Gorda	Chile	Peso	Other related parties
N/A	Lorena Trigésimo Quinta de Sierra Gorda	Chile	Peso	Other related parties
N/A	Perseverancia Primera de Sierra Gorda	Chile	Peso	Other related parties
N/A	Tamara 40 Primera del Sector S.E. OF. Concepción, Sierra Gorda	Chile	Peso	Other related parties
N/A	Tamara Tercera de Oficina Concepción, Sierra Gorda	Chile	Peso	Other related parties
N/A	Tamara 40 Segunda del Sector S.E. OF Concepción, Sierra Gorda	Chile	Peso	Other related parties

Below is a list of transactions with clients and suppliers with whom a relationship with key Company personnel was identified:

Tax ID No	Name	Country of origin	Nature
76.389.727-3	Sociedad Periodística El Libero	Chile	Other related parties
90.193.000-7	El Mercurio S.A.P.	Chile	Other related parties
92.580.000-7	Empresa Nacional de Telecomunicaciones S.A.	Chile	Other related parties
96.806.980-2	Entel PCS Telecomunicaciones S.A.	Chile	Other related parties
97.004.000-5	Banco de Chile	Chile	Other related parties
99.012.000-5	Compañía de Seguros de Vida Consorcio Nacional	Chile	Other related parties
10.581.580-8	Gonzalo Guerrero Yamamoto	Chile	Other related parties
96.529.340-K	Norte Grande S.A.	Chile	Other related parties

72 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

12.4 Detail of related parties and related party transactions

Transactions between the Company and its subsidiaries, associated businesses, joint ventures and other related parties are part of the Company's common transactions. Their conditions are those customary for this type of transactions in respect of terms and market prices. Maturity terms for each case vary by virtue of the transaction giving rise to them.

For the period ended June 30, 2021 and 2020, the detail of significant transactions with related parties is as follows

Tax ID No	Name	Nature	Country of origin	Transaction	As of June  30, 2021		As of June  30, 2020
					ThUS$		ThUS$
Foreign	Doktor Tarsa Tarim Sanayi AS	Associate	Turkey	Sale of products		-		3,944
Foreign	Ajay Europe S.A.R.L.	Associate	France	Sale of products		20,871		16,457
Foreign	Ajay Europe S.A.R.L.	Associate	France	Dividends		992		1,197
Foreign	Ajay North America LL.C.	Associate	USA	Sale of products		15,869		15,248
Foreign	Ajay North America LL.C.	Associate	USA	Dividends		411		890
Foreign	SQM Vitas Brasil Agroindustria	Other related parties	Brazil	Sale of products		20,858		14,177
Foreign	SQM Vitas Perú S.A.C.	Other related parties	Peru	Sale of products		5,268		5,619
Foreign	Coromandel SQM India	Joint venture	India	Sale of products		1,111		410
Foreign	SQM Star Qingdao Corp Nutrition Co., Ltd.	Joint venture	China	Dividends		-		2,223
Foreign	Terra Tarsa Ukraine LLC	Other related parties	Ukraine	Sale of products		-		641
Foreign	Plantacote NV	Other related parties	Belgium	Sale of products		-		2,823
Foreign	Pavoni & CPA	Joint venture	Italy	Sale of products		701		1,125
Foreign	SQM Eastmed Turkey	Associate	Turquía	Sale of products		-		81
Foreign	Covalent Lithium Pty Ltd	Joint venture	Australia	Engineering services		1,376		-
Chile	Banco de Chile	Other related parties	Chile	Service provider		2,090		-
Chile	Empresa Nacional de Telecomunicaciones	Other related parties	Chile	Service provider		249		-

73 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

12.5 Trade receivables due from related parties, current:

Tax ID No	Name	Nature	Country of origin	Currency	As of June 30, 2021	As of  December 31, 2020
					ThUS$	ThUS$
Foreign	Ajay Europe S.A. R.L.	Associate	France	Euro	8,976	4,625
Foreign	Ajay North America LLC.	Associate	United States of America	Dollar	4,515	2,956
Foreign	Abu Dhabi Fertilizer Industries WWL *	Associate	United Arab Emirates	United Arab Emirates Dirham	-	595
96.511.530-7	Soc. de Inversiones Pampa Calichera	Other related parties	Chile	Dollar	6	6
Foreign	SQM Vitas Brasil Agroindustria	Other related parties	Brazil	Dollar	21,329	24,335
Foreign	SQM Vitas Perú S.A.C.	Other related parties	Peru	Dollar	16,271	24,205
Foreign	SQM Vitas Fzco.	Joint venture	United Arab Emirates	United Arab Emirates Dirham	232	236
Foreign	Pavoni & C SpA	Joint venture	Italy	Euro	2,634	1,095
Foreign	Covalent Lithium Pty Ltd.	Joint venture	Australia	Australian dollar	575	84
Foreign	Sichuan SQM Migao Chemical Fertilizers Co Ltd.	Joint venture	China	Dollar	-	4,464
Total					54,538	62,601

* Accounts receivable from Abu Dhabi Fertilizer Industries WWL presented are net of provision for ThUS$ 595.

12.6 Trade payables due to related parties, current:

Tax ID No	Company	Nature	Country of origin	Currency	As of June 30, 2021	As of December 31, 2020
					ThUS$	ThUS$
Foreign	Ajay Europe S.A.R.L.	Associate	France	Euro	-	50
Foreign	Ajay North America LL.C.	Associate	United States of America	Dollar	-	232
Foreign	Covalent Lithium Pty Ltd	Joint venture	Australia	Australian dollar	-	324
Total					-	606

12.7 Other disclosures:

Note 6 describes the remuneration of the board of directors, administration and key management personnel.

74 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

Note 13 Financial instruments

13.1 Types of other current and non-current financial assets

Description of other financial assets	As of June 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Financial assets at amortized cost (1)		702,879		345,459
Derivative financial instruments
- For hedging		3,911		-
- Non-hedging (2)		2,663		2,610
Total other current financial assets		709,453		348,069
Financial assets at fair value through other comprehensive income (4) (5)		7,653		14,569
Derivative financial instruments
- For hedging		18,423		37,276
Other financial assets at amortized cost		71		80
Total other non-current financial assets		26,147		51,925

Institution	As of June 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Banco de Crédito e Inversiones		114,935		185,589
Banco Santander (3)		208,463		45,168
Banco Itau Corpbanca		89,086		49,006
Banco de Chile		140,367		-
Scotiabank Sud Americano		150,028		31,668
JP Morgan Asset Management		-		34,028
Total		702,879		345,459

(1) Corresponds to term deposits whose maturity date is greater than 90 days and less than 360 days from the investment date constituted in the aforementioned financial institutions.

(2) Correspond to forwards and options that were not classified as hedging instruments (See detail in Note 13.3).

(3) As of June 30, 2021, and December 31, 2020 there were no margin calls.

(4) During the first quarter of 2021, equity instruments classified at fair value irrevocably through other comprehensive income were sold for US$ 16,413. The cumulative amount of the movements in other comprehensive income from the date of acquisition to the date of sale was transferred to retained earnings.

(5) During the second quarter of 2021, as a result of the loss of significant influence over the investment of Kore Potash (for more details, see note 8.3 letter a), the investment, which was previous recognized as an investment in associates, was reclassified as other non-current financial assets as it was classified as financial equity instrument at fair value through other comprehensive income irrevocably.

75 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

13.2 Trade and other receivables

	As of June 30, 2021						As of December 31, 2020
Trade and other receivables	Current		Non-current		Total		Current		Non-current		Total
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Trade receivables, current		401,144		-		401,144		313,265		-		313,265
Prepayments, current		37,103		-		37,103		19,900		-		19,900
Other receivables, current		14,956		11,425		26,381		32,041		11,165		43,206
Total trade and other receivables		453,203		11,425		464,628		365,206		11,165		376,371

See discussion about credit risk in Note 4.2.

	As of June 30, 2021				As of December 31, 2020
Trade and other receivables	Assets before allowances	Allowance for doubtful trade receivables		Assets for trade receivables, net	Assets before allowances	Allowance for doubtful trade receivables		Assets for trade receivables, net
	ThUS$	ThUS$		ThUS$	ThUS$	ThUS$		ThUS$
Receivables related to credit operations, current	414,502	(13,358	)	401,144	327,586	(14,321	)	313,265
Trade receivables, current	414,502	(13,358	)	401,144	327,586	(14,321	)	313,265
Prepayments, current	37,887	(784	)	37,103	20,684	(784	)	19,900
Other receivables, current	20,137	(5,181	)	14,956	36,664	(4,623	)	32,041
Current trade and other receivables	58,024	(5,965	)	52,059	57,348	(5,407	)	51,941
Other receivables, non-current	11,425	-		11,425	11,165	-		11,165
Non-current receivables	11,425	-		11,425	11,165	-		11,165
Total trade and other receivables	483,951	(19,323	)	464,628	396,099	(19,728	)	376,371

76 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

(a) Portfolio analysis

As of June 30, 2021, and December 31, 2020 the detail of the renegotiated portfolio is as follows:

As of June 30, 2021
Portfolio analysis
Past due segments	Number of customers with non- renegotiated portfolio	Gross non- renegotiated portfolio ThUS$	Number of customers with renegotiated portfolio	Gross renegotiated portfolio ThUS$
Current	1,309	387,116	15	314
1 - 30 days	125	16,392	5	9
31 - 60 days	18	2,955	-	-
61 - 90 days	12	826	-	-
91 - 120 days	1	20	1	25
121 - 150 days	-	1	2	35
151 - 180 days	-	-	2	7
181 - 210 days	-	-	1	41
211 - 250 days	2	2	-	-
>250 days	137	5,462	148	1,297
Total	1,604	412,774	174	1,728

As of December 31, 2020
Portfolio analysis
Past due segments	Number of customers with non- renegotiated portfolio	Gross non- renegotiated portfolio ThUS$	Number of customers with renegotiated portfolio	Gross renegotiated portfolio ThUS$
Current	1,281	301,939	23	179
1 - 30 days	119	12,140	8	60
31 - 60 days	12	1,226	-	-
61 - 90 days	5	159	-	-
91 - 120 days	5	1,448	1	41
121 - 150 days	2	2,384	2	2
151 - 180 days	3	1,398	4	12
181 - 210 days	1	-	2	5
211 - 250 days	3	2	6	114
>250 days	156	5,030	64	1,447
Total	1,587	325,726	110	1,860

77 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

(b) Estimate for doubtful accounts

As of June 30, 2021
	Trade accounts receivable days past due
Trade and other receivables	Current		1 to 30 days		31 to 60 days		61 to 90 days		Over 90 days		Trade	Trade receivables due from related parties
											ThUS$	ThUS$
Expected Loss Rate on	1	%	11	%	19	%	54	%	93	%	-	-
Total Gross Book Value	387,430		16,401		2,955		826		6,890		414,502	56,019
Deterioration Estimate	4,150		1,780		574		443		6,411		13,358	1,481

As of December 31, 2020
	Trade accounts receivable days past due
Trade and other receivables	Current		1 to 30 days		31 to 60 days		61 to 90 days		Over 90 days		Trade	Trade receivables due from related parties
											ThUS$	ThUS$
Expected Loss Rate on	1	%	10	%	39	%	52	%	79	%	-	-
Total Gross Book Value	302,118		12,200		1,226		159		11,883		327,586	70,146
Deterioration Estimate	3,187		1,207		477		83		9,367		14,321	7,545

As of June 30, 2021, and December 31, 2020, movements in provisions are as follows:

Provisions	As of June 30, 2021			As of December 31, 2020
	ThUS$			ThUS$
Provision Impairment Accounts receivable at the beginning of the Period		27,273			32,707
Increase (decrease) impairment of accounts receivable		644			(4,684	)
Use of Provision		(7,113	)		(750	)
Impairment of Accounts Receivable Provision at the end of the Period		20,804			27,273
(1) Trade and other Receivables Provision		13,358			14,321
(2) Current Other Receivables Provision		5,965			5,407
(3) Provision Trade receivables with related parties, current		1,481			7,545
Recovery of Insurance		175			347
Impairment of Accounts Receivable Provision		20,804			27,273
Renegotiated Provision		1,450			1,728
Non-renegotiated Provision		19,354			25,545

78 

Notes to the Consolidated Interim Financial Statements 
June 30, 2021   

13.3     Hedging assets and liabilities

The balance represents derivative financial instruments measured at fair value which have been classified as hedges for exchange and interest rate risks relating to the total obligations with the public associated with bonds in UF and investments in Chilean pesos. See more detail in Note 4.2 b). As of June 30, 2021, the notional amount of cash flows agreed upon in US dollars of the cross-currency swap contracts amounted to ThUS$ 546,171 (As of December 31, 2020 amounted to ThUS$ 565,295).

Expressed in ThUS$	Assets / (Liabilities) Derivative Instrument			Total Realized			Hedging Reserve in Gross Equity
Hedging with debt as underlying as of June 30, 2021
Hedging Assets		21,282			23,641			(2,359	)
Hedging Liabilities		(24,874	)		(13,127	)		(11,747	)
Underlying Debt Hedge		(3,592	)		10,514			(14,106	)
Underlying Investment Coverage as of June 30, 2021
Hedging Assets		1,052			1,172			(120	)
Hedging Liabilities		(84	)		(99	)		15
Underlying Investments Hedge		968			1,073			(105	)

Expressed in ThUS$	Assets / (Liabilities) Derivative Instrument			Total Realized			Hedging Reserve in Gross Equity
Hedging with debt as underlying as of December 31, 2020
Hedging Assets		37,276			24,428			12,848
Hedging Liabilities		(19,195	)		(12,956	)		(6,239	)
Underlying Debt Hedge		18,081			11,472			6,609
Underlying Investment Coverage as of December 31, 2020
Hedging Assets		-			-			-
Hedging Liabilities		(21,004	)		(20,626	)		(378	)
Underlying Investments Hedge		(21,004	)		(20,626	)		(378	)

Hedging Effect in Profit and Equity for the period as of June 30, 2021	Variation Total			Result			Hedge Reserve Variation
Analysis Effect by Type of Coverage
Underlying Debt Hedge		(21,673	)		(958	)		(20,715	)
Underlying Investments Hedge		21,972			21,699			273
Total hedging effect on profit or loss and equity in the period		299			20,741			(20,442	)
Analysis Effect by type of asset
Hedging in Current and Non-Current Assets		(14,942	)		385			(15,327	)
Hedging in Current and Non-Current Liabilities		15,241			20,356			(5,115	)
Total Hedge Effect in Profit or Loss and Equity for the period		299			20,741			(20,442	)

79 

Notes to the Consolidated Interim Financial Statements 
June 30, 2021   

The balances in the “total realized” column consider the intermediate effects of the contracts in force from January 1 to June 30, 2021 and from January 1 to December 31, 2020.

Derivative contract maturities are detailed as follows:

	Contract amount
Series	ThUS$		Currency	Maturity date
H		126,994	UF	01/04/2023
O		58,748	UF	02/01/2022
P		134,228	UF	01/15/2028
Q		106,933	UF	06/01/2030

Effectiveness

The Company uses cross currency swap derivative instruments to hedge the possible financial risk associated with the volatility of the exchange rate associated with Chilean pesos and UF. The objective is to hedge the exchange rate and inflation financial risks associated with bonds payable. Hedges are documented and tested to measure their effectiveness.

Based on a comparison of critical terms, hedging is highly effective, given that the hedged amount is consistent with obligations maintained for bonds denominated in Pesos and UF. Likewise, hedging contracts are denominated in the same currencies and have the same maturity dates of bond principal and interest payments.

Effectiveness tests have verified that hedges are effective as of the reporting date.

13.4     Financial liabilities

Other current and non-current financial liabilities

As of June 30, 2021 and December 31, 2020, the detail is as follows:

	As of June 30, 2021						As of December 31, 2020
Other current and non-current financial liabilities	Currents		Non-Current		Total		Currents		Non-Current		Total
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Liabilities at amortized cost
Bank borrowings		82		69,495		69,577		82		69,376		69,458
Obligations with the public		36,363		1,809,630		1,845,993		36,781		1,816,626		1,853,407
Derivative financial instruments
For hedging		5,567		19,368		24,935		26,699		13,511		40,210
Non-Hedging		125		-		125		5,393		-		5,393
Total		42,137		1,898,493		1,940,630		68,955		1,899,513		1,968,468

Current and non-current bank borrowings

As of June 30, 2021 and December 31. 2020, the detail is as follows:

Current and non-current bank borrowings	As of June 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Current borrowings		82		82
Non-current borrowings		69,495		69,376
Current and non-current bank borrowings		69,577		69,458

80 

Notes to the Consolidated Interim Financial Statements 
June 30, 2021   

a)            Bank borrowings, current:

As of June 30, 2021 and December 31, 2020, the detail of this caption is as follows:

Debtor

Creditor

Tax ID No.

Company

Country

Tax ID No.

Financial institution

Country

Currency or adjustment index

Payment of interest

Repayment

Effective rate

Nominal rate

93.007.000-9

SQM S.A.

Chile

O-E

Scotiabank Cayman

USA

USD

Upon maturity

05/30/2023

1.00

%

1.27

%

Debtor

Creditor

Nominal amounts as of June 30, 2021

Current amounts as of June 30, 2021

Company

Financial institution

Up to 90 days

90 days to 1 year

Total

Up to 90 days

90 days to 1 year

Subtotal

Borrowing costs

Total

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

SQM S.A.

Scotiabank Cayman

-

-

-

-

82

82

-

82

Total

-

-

-

-

82

82

-

82

Debtor

Creditor

Tax ID No.

Company

Country

Tax ID No.

Financial institution

Country

Currency or adjustment index

Repayment

maturity

Effective rate

Nominal rate

93.007.000-9

SQM S.A.

Chile

Foreign

Scotiabank Cayman

USA

US$

Upon maturity

05/30/2023

1.00

%

1.36

%

Debtor

Creditor

Nominal amounts as of December 31, 2020

Current amounts as of December 31, 2020

Company

Financial institution

Up to 90 days

90 days to 1 year

Total

Up to 90 days

90 days to 1 year

Subtotal

Borrowing costs

Total

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

SQM S.A.

Scotiabank Cayman

-

-

-

-

82

82

-

82

Total

-

-

-

-

82

82

-

82

81 

Notes to the Consolidated Interim Financial Statements 
June 30, 2021   

b) Unsecured obligations, current:

As of June 30, 2021 and December 31, 2020, the detail of current unsecured interest-bearing obligations is composed of promissory notes and bonds, as follows:

Debtor								Periodicity
Tax ID No.	Company	Country	Number of registration or ID of the instrument		Series	Maturity date	Currency or adjustment index	Payment of interest	Repayment	Effective rate			Nominal rate
93.007.000-9	SQM S.A.	Chile		-	MUS$250	07/28/2021	US$	Semiannual	Upon maturity		1.76	%		4.38	%
93.007.000-9	SQM S.A.	Chile		-	MUS$300	10/03/2021	US$	Semiannual	Upon maturity		0.91	%		3.63	%
93.007.000-9	SQM S.A.	Chile		-	MUS$450	11/07/2021	US$	Semiannual	Upon maturity		3.36	%		4.25	%
93.007.000-9	SQM S.A.	Chile		-	MUS$400	07/22/2021	US$	Semiannual	Upon maturity		4.06	%		4.25	%
93.007.000-9	SQM S.A.	Chile		564	H	07/05/2021	UF	Semiannual	Semiannual		1.81	%		4.90	%
93.007.000-9	SQM S.A.	Chile		699	O	08/01/2021	UF	Semiannual	Upon maturity		2.15	%		3.80	%
93.007.000-9	SQM S.A.	Chile		563	P	07/15/2021	UF	Semiannual	Upon maturity		2.21	%		3.25	%
93.007.000-9	SQM S.A.	Chile		700	Q	12/01/2021	UF	Semiannual	Upon maturity		2.82	%		3.45	%

Effective rates of bonds in Pesos and UF are expressed and calculated in Dollars based on the flows agreed in Cross Currency Swap Agreements.

			Nominal amounts as of June 30, 2021						Carrying amounts of maturities as of June 30, 2021
			Up to 90 days		90 days to 1 year		Total		Up to 90 days		90 days to 1 year		Subtotal		Borrowing costs			Total
Company	Country	Series	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQM S.A.	Chile	MUS$250		4,618		-		4,618		4,618		-		4,618		(433	)		4,185
SQM S.A.	Chile	MUS$300		-		2,628		2,628		-		2,628		2,628		(614	)		2,014
SQM S.A.	Chile	MUS$450		-		2,816		2,816		-		2,816		2,816		(680	)		2,136
SQM S.A.	Chile	MUS$400		7,461		-		7,461		7,461		-		7,461		(237	)		7,224
SQM S.A.	Chile	H		17,989		-		17,989		17,989		-		17,989		(172	)		17,817
SQM S.A.	Chile	O		954		-		954		954		-		954		(82	)		872
SQM S.A.	Chile	P		1,810		-		1,810		1,810		-		1,810		(12	)		1,798
SQM S.A.	Chile	Q		-		338		338		-		338		338		(21	)		317
Total				32,832		5,782		38,614		32,832		5,782		38,614		(2,251	)		36,363

82 

Notes to the Consolidated Interim Financial Statements
June 30, 2021    

Debtor								Periodicity
Tax ID No.	Company	Country	Number of registration or ID of the instrument		Series	Maturity date	Currency or adjustment index	Payment of interest	Repayment	Effective rate			Nominal rate
93.007.000-9	SQM S.A.	Chile		-	MUS$250	01/28/2021	US$	Semiannual	Upon maturity		1.95	%		4.38	%
93.007.000-9	SQM S.A.	Chile		-	MUS$300	04/03/2021	US$	Semiannual	Upon maturity		1.08	%		3.63	%
93.007.000-9	SQM S.A.	Chile		-	MUS$450	05/07/2021	US$	Semiannual	Upon maturity		3.59	%		4.25	%
93.007.000-9	SQM S.A.	Chile		-	MUS$400	01/22/2021	US$	Semiannual	Upon maturity		4.17	%		4.25	%
93.007.000-9	SQM S.A.	Chile		564	H	01/05/2021	UF	Semiannual	Semiannual		0.58	%		4.90	%
93.007.000-9	SQM S.A.	Chile		699	O	02/01/2021	UF	Semiannual	Upon maturity		2.24	%		3.80	%
93.007.000-9	SQM S.A.	Chile		563	P	01/15/2021	UF	Semiannual	Upon maturity		2.37	%		3.25	%
93.007.000-9	SQM S.A.	Chile		700	Q	06/01/2021	UF	Semiannual	Upon maturity		2.92	%		3.45	%

Effective rates of bonds in Pesos and UF are expressed and calculated in Dollars based on the flows agreed in Cross Currency Swap Agreements.

			Nominal amounts as of December 31, 2020						Carrying amounts of maturities as of December 31, 2020
			Up to 90 days		90 days to 1 year		Total		Up to 90 days		90 days to 1 year		Subtotal		Borrowing costs			Total
Company	Country	Series	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQM S.A.	Chile	MUS$250		4,648		-		4,648		4,648		-		4,648		(433	)		4,215
SQM S.A.	Chile	MUS$300		-		2,658		2,658		-		2,658		2,658		(614	)		2,044
SQM S.A.	Chile	MUS$450		7,508		-		7,508		7,508		-		7,508		(679	)		6,829
SQM S.A.	Chile	MUS$400		-		2,869		2,869		-		2,869		2,869		(237	)		2,632
SQM S.A.	Chile	H		18,212		-		18,212		18,212		-		18,212		(172	)		18,040
SQM S.A.	Chile	O		962		-		962		962		-		962		(82	)		880
SQM S.A.	Chile	P		1,824		-		1,824		1,824		-		1,824		(12	)		1,812
SQM S.A.	Chile	Q		-		350		350		-		350		350		(21	)		329
Total				33,154		5,877		39,031		33,154		5,877		39,031		(2,250	)		36,781

83 

Notes to the Consolidated Interim Financial Statements 
June 30, 2021   

c) Classes of interest-bearing loans, non-current

The following table shows the details of bank loans as of June 30, 2021 and December 31, 2020:

Debtor

Creditor

Tax ID No.

Company

Country

Tax ID No.

Financial institution

Country

Currency or adjustment index

Type of amortization

Effective rate

Nominal rate

93.007.000-9

SQM S.A.

Chile

O-E

Scotiabank Cayman

USA

USD

Maturity

1.97

%

1.27

%

Debtor	Creditor	Nominal non-current maturities as of June 30, 2021								Carrying amounts of maturities as of June 30, 2021
Company	Financial institution	Between 1 and 2		Between 2 and 3		Between 3 and 4		Total		Between 1 and 2		Between 2 and 3		Between 3 and 4		Subtotal		Costs of obtaining loans			Total
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQM S.A.	Scotiabank Cayman		-		70,000		-		70,000		-		70,000		-		70,000		(505	)		69,495
Total			-		70,000		-		70,000		-		70,000		-		70,000		(505	)		69,495

Debtor

Creditor

Tax ID No.

Company

Country

Tax ID No.

Financial institution

Country

Currency or adjustment index

Type of amortization

Effective rate

Nominal rate

93.007.000-9

SQM S.A.

Chile

O-E

Scotiabank Cayman

USA

USD

Maturity

1.98

%

1.36

%

Debtor	Creditor	Nominal non-current maturities as of December 31, 2020								Carrying amounts of maturities as of December 31, 2020
Company	Financial institution	Between 1 and 2		Between 2 and 3		Between 3 and 4		Total		Between 1 and 2		Between 2 and 3		Between 3 and 4		Subtotal		Costs of obtaining loans			Total
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQM S.A.	Scotiabank Cayman		-		70,000		-		70,000		-		70,000		-		70,000		(624	)		69,376
Total			-		70,000		-		70,000		-		70,000		-		70,000		(624	)		69,376

84 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

d)            Non-current unsecured interest-bearing bonds

The following table shows the details of “unsecured debentures that accrue non-current interest” as of June 30, 2021 and December 31, 2020:

Debtor				Number of registration or					Currency or	Periodicity
Tax ID No.	Company	Country		ID of the instrument		Series		Maturity date	adjustment index	Payment of interest		Repayment	Effective rate			Nominal rate
93.007.000-9	SQM S.A.		Chile		-		MUS$250	01/28/2025	US$		Semiannual	Upon maturity		4.08	%		4.38	%
93.007.000-9	SQM S.A.		Chile		-		MUS$300	04/03/2023	US$		Semiannual	Upon maturity		3.43	%		3.63	%
93.007.000-9	SQM S.A.		Chile		-		MUS$450	05/07/2029	US$		Semiannual	Upon maturity		4.18	%		4.25	%
93.007.000-9	SQM S.A.		Chile		-		MUS$400	01/22/2050	US$		Semiannual	Upon maturity		4.22	%		4.25	%
93.007.000-9	SQM S.A.		Chile		564		H	01/05/2030	UF		Semiannual	Semiannual		4.76	%		4.90	%
93.007.000-9	SQM S.A.		Chile		699		O	02/01/2033	UF		Semiannual	Upon maturity		3.68	%		3.80	%
93.007.000-9	SQM S.A.		Chile		563		P	01/15/2028	UF		Semiannual	Upon maturity		3.24	%		3.25	%
93.007.000-9	SQM S.A.		Chile		700		Q	06/01/2038	UF		Semiannual	Upon maturity		3.43	%		3.45	%

		Nominal non-current maturities as of June 30, 2021												Carrying amounts of maturities as of June 30, 2021
Series		Over 1 year to 2		Over 2 years to 3		Over 3 Years to 4		Over 4 Years to 5		Over 5 years		Total		Over 1 year to 2		Over 2 years to 3		Over 3 Years to 4		Over 4 Years to 5		Over 5 years		Subtotal		Bond issuance costs			Total
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
	MUS$250		-		-		250,000		-		-		250,000		-		-		250,000		-		-		250,000		(1,119	)		248,881
	MUS$300		-		300,000		-		-		-		300,000		-		300,000		-		-		-		300,000		(475	)		299,525
	MUS$450		-		-		-		-		450,000		450,000		-		-		-		-		450,000		450,000		(4,682	)		445,318
	MUS$400		-		-		-		-		400,000		400,000		-		-		-		-		400,000		400,000		(6,465	)		393,535
	H		-		-		-		-		118,760		118,760		-		-		-		-		118,760		118,760		(1,292	)		117,468
	O		-		-		-		-		61,236		61,236		-		-		-		-		61,236		61,236		(863	)		60,373
	P		-		-		-		-		122,471		122,471		-		-		-		-		122,471		122,471		(71	)		122,400
	Q		-		-		-		-		122,471		122,471		-		-		-		-		122,471		122,471		(341	)		122,130
	Total		-		300,000		250,000		-		1,274,938		1,824,938		-		300,000		250,000		-		1,274,938		1,824,938		(15,308	)		1,809,630

85 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

Debtor				Number of registration or					Currency or	Periodicity
Tax ID No.	Company	Country		ID of the instrument		Series		Maturity date	adjustment index	Payment of interest		Repayment	Effective rate			Nominal rate
93.007.000-9	SQM S.A.		Chile		-		MUS$250	01/28/2025	US$		Semiannual	Upon maturity		4.08	%		4.38	%
93.007.000-9	SQM S.A.		Chile		-		MUS$300	04/03/2023	US$		Semiannual	Upon maturity		3.43	%		3.63	%
93.007.000-9	SQM S.A.		Chile		-		MUS$450	05/07/2029	US$		Semiannual	Upon maturity		4.18	%		4.25	%
93.007.000-9	SQM S.A.		Chile		-		MUS$400	01/22/2050	US$		Semiannual	Upon maturity		4.22	%		4.25	%
93.007.000-9	SQM S.A.		Chile		564		H	01/05/2030	UF		Semiannual	Semiannual		4.76	%		4.90	%
93.007.000-9	SQM S.A.		Chile		699		O	02/01/2033	UF		Semiannual	Upon maturity		3.68	%		3.80	%
93.007.000-9	SQM S.A.		Chile		563		P	01/15/2028	UF		Semiannual	Upon maturity		3.24	%		3.25	%
93.007.000-9	SQM S.A.		Chile		700		Q	06/01/2038	UF		Semiannual	Upon maturity		3.43	%		3.45	%

		Nominal non-current maturities as of December 31, 2020												Carrying amounts of maturities as of December 31, 2020
Series		Over 1 year to 2		Over 2 years to 3		Over 3 Years to 4		Over 4 Years to 5		Over 5 years		Total		Over 1 year to 2		Over 2 years to 3		Over 3 Years to 4		Over 4 Years to 5		Over 5 years		Subtotal		Bond issuance costs			Total
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
	MUS$250		-		-		-		250,000		-		250,000		-		-		-		250,000		-		250,000		(1,336	)		248,664
	MUS$300		-		300,000		-		-		-		300,000		-		300,000		-		-		-		300,000		(781	)		299,219
	MUS$450		-		-		-		-		450,000		450,000		-		-		-		-		450,000		450,000		(5,020	)		444,980
	MUS$400		-		-		-		-		400,000		400,000		-		-		-		-		400,000		400,000		(6,582	)		393,418
	H		-		-		-		-		126,386		126,386		-		-		-		-		126,386		126,386		(1,378	)		125,008
	O		-		-		-		-		61,334		61,334		-		-		-		-		61,334		61,334		(904	)		60,430
	P		-		-		-		-		122,668		122,668		-		-		-		-		122,668		122,668		(77	)		122,591
	Q		-		-		-		-		122,668		122,668		-		-		-		-		122,668		122,668		(352	)		122,316
	Total		-		300,000		-		250,000		1,283,056		1,833,056		-		300,000		-		250,000		1,283,056		1,833,056		(16,430	)		1,816,626

86 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

e)            Additional information

Bonds

the details of each issuance are as follows:

(i) Series “H” bonds

On January 13, 2009, the Company placed the Series H bond for UF 4,000,000 (ThUS$ 139,216) at an annual interest rate of 4.9%, with a term of 21 years and amortizations of principal beginning in July, 2019.

On July 5, 2019, amortization of principal amounted to UF 181,818.18, (ThUS$ 7,494) with an associated cross currency swap hedge income of ThUS$ 439.

On January 5, 2020, amortization of principal amounted to UF 181,818.18. (ThUS$ 6,787) with an associated cross currency swap hedge loss of ThUS$ 268.

On July 5, 2020, amortization of principal amounted to UF 181,818.18. (ThUS$ 6,509) with an associated cross currency swap hedge loss of ThUS$ 546.

On January 5, 2021, amortization of principal amounted to UF 181,818.18. (ThUS$ 7,518) with an associated cross currency swap hedge loss of ThUS$ 463.

See more details in Note 20.1

For the periods ended June 30, 2021, and December 31, 2020, the Company has made the following payments with a charge to the Series H bonds and their associated CCS hedging:

Payments made	June 30, 2021		December 31, 2020
	ThUS$		ThUS$
Payments of interest, Series H bonds		3,458		6,601
CCS Coverage		817		2,575

(ii) Single series bonds, second issue MUS$ 250

On April 21, 2010, the Company informed the CMF of its placement in international markets of an unsecured bond of ThUS$ 250,000, pursuant to Rule 144 -A and Regulation S of the Securities and Exchange Commission with a maturity of 10 years with an annual interest rate of 5.5%.

The Company paid the principal on April 21, 2020.

For the periods ended June 30, 2021 and December 31, 2020, the detail of payments charged to the line of single series bonds, second issue is as follows

Payments made	June 30, 2021		December 31, 2020
	ThUS$		ThUS$
Interest payment		-		6,875

87 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

(iii) Series “O” bonds

On April 4, 2012, the Company issued “Series O” for UF 1,500,000 (ThUS$ 69,901) at a term of 21 years with a single payment at the maturity of the term and an annual interest rate of 3.80%.

See more details in Note 20.1

For the periods ended June 30, 2021, and December 31, 2020, the Company has made the following payments with a charge to Series O bonds and their associated CCS hedging:

Payments made	June 30, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest, Series O bonds		1,119		2,070
CCS Coverage		223		599

(iv) Single series bonds, third issue MUS$ 300

On April 3, 2013, the Company issued a non-secured bond in the United States with a value of US$ 300 million. pursuant to Rule 144-A and Regulation S of the SEC. The bond is for a 10-year term with an annual coupon rate of 3.625%.

For the periods ended June 30, 2021, and December 31, 2020, the following payments have been made with a debit to the line of single-series bonds, third issue:

Payments made	June 30, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest		5,438		10,875

88 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

(v) Single series bonds, fourth issuance MUS $250

On October 23, 2014, the Company issued unsecured bonds amounting ThUS$ 250,000 in international markets, pursuant to Rule 144-A and Regulation S of the Securities and Exchange Commission. These bonds mature in 2025 and have annual interest rate of 4.375%.

For the periods ended on June 30, 2021 and December 31, 2020, the following payments have been made.

Payments made	June 30, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest		5,469		10,938

(vi) Series “P” bonds

The Company on March 31, 2008 issued the placement on the stock market of the Series “P” bond (the "Bonds” Series P) with a value of UF 3,000,000, with a charge to the 10 year Bonds Line registered in the CMF Securities Registry under number 563.

The bonds Series P (i) mature on January 15, 2028; (ii) will accrue on the unpaid principal, expressed in UF, at an annual interest rate of 3.25% from January 15, 2018; and (iii) can be early redeemed by the Company starting from the date of placement, that was, as of April 5, 2018.

For the periods ended on June 30, 2021 and December 31, 2020, the following payments and their associated CCS have been made:

Payments made	June 30, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest series P		1,912		3,534
CCS Coverage		1,593		3,439

89 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

(vii)  Series Q bonds

On October 31, 2018, the issuance of Series Q bonds was authorized in the general stock market for the amount of UF 3,000,000, which were registered in the Securities Registry of your Commission on February 14, 2012 under number 700.

The bonds Series Q (i) mature on the first day of June 2038; (ii) will earn an interest rate of 3.45% per annum on the outstanding capital, expressed in Unidades de Fomento, from June 1, 2018 thereon; and (iii) may be early redeemed by the Company starting from the placement date, that was, as of November 8, 2018.

On November 8, 2018, all the Series Q Bonds have been placed and sold to Euroamerica S.A. for a total amount of $ 83,567,623,842, which was paid in full and in cash by Euroamerica S.A. to the Company.

See more details in Note 20.1

For the years ended June 30, 2021 and December 31, 2020, the following payments have been made:

Payments made	June 30, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest series Q		2,105		3,769
CCS Coverage		842		1,021

(viii)  Single series fifth issue bonds ThUS$ 450,000

On May 7, 2019, the CMF was informed that the Company issued and placed unsecured bonds for ThUS$ 450,000 pursuant to Rule 144-A and Regulation S of the Securities and Exchange Commission on international markets. These bonds will mature in 2029 and carry an interest rate of 4.25% per annum.

For the periods ended on June 30, 2021 and December 31, 2020, the following payments have been made:

Payments made	June 30, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest		9,563		19,125

(ix) Single series sixth issue bonds MUS$ 400

On January 22, 2020, the Company has placed unsecured bonds in international markets for US$ 400 million, pursuant to Rule 144-A and Regulation S of the Securities and Exchange Commission, at an annual interest rate of 4.250% and a maturity in the year 2050.

Payments made	June 30, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest		8,500		8,500

90 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

13.5        Trade and other payables

a) Details trade and other payables

	As of June 30, 2021						As of December 31, 2020
Details trade and other payables	Current		Current		Current		Current		Non-current		Total
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Accounts payable		226,680		-		226,680		203,346		-		203,346
Other accounts payable		609		-		609		587		-		587
Prepayments from customers		-		11,767		11,767		-		4,027		4,027
Total		227,289		11,767		239,056		203,933		4,027		207,960

As of June 30, 2021, and December 31, 2020, the balance of current and past due accounts payable is made up as follows:

Suppliers current on all payments

	Amounts according to payment periods as of June 30, 2021
Type of Supplier	Up to 30 Days		31 - 60 days		61 - 90 Days		91 - 120 days		121 - 365 days		366 and more days		Total ThUS$
Goods		107,673		2,363		346		3		1		11,767		122,153
Services		41,723		529		16		1		82		-		42,351
Others		32,111		-		-		-		-		-		32,111
Total		181,507		2,892		362		4		83		11,767		196,615

	Amounts according to payment periods as of December 31, 2020
Type of Supplier	Up to 30 Days		31 - 60 days		61 - 90 Days		91 - 120 days		121 - 365 days		366 and more days		Total ThUS$
Goods		111,323		1,947		123		31		5		4,027		117,456
Services		46,187		1,380		16		757		86		-		48,426
Others		29,325		7		-		-		-		-		29,332
Total		186,835		3,334		139		788		91		4,027		195,214

Suppliers past due on payments

	Amounts according to payment periods as of June 30, 2021
Type of Supplier	Up to 30 Days		31 - 60 days		61 - 90 Days		91 - 120 days		121 - 365 days		366 and more days		Total ThUS$
Goods		900		69		3,604		101		2,522		-		7,196
Services		2,209		435		12,982		36		8,024		-		23,686
Others		2,030		20		6,096		65		2,739		-		10,950
Total		5,139		524		22,682		202		13,285		-		41,832

	Amounts according to payment periods as of December 31, 2020
Type of Supplier	Up to 30 Days		31 - 60 days		61 - 90 Days		91 - 120 days		121 - 365 days		366 and more days		Total ThUS$
Goods		1,305		59		47		39		517		-		1,967
Services		2,298		764		-		453		505		-		4,020
Others		3,258		150		371		118		2,275		-		6,172
Total		6,861		973		418		610		3,297		-		12,159

Purchase commitments held by the Company are recognized as liabilities when the goods and services are received by the Company. As of June 30, 2021, the Company has purchase orders amounting to ThUS$ 87,801 and ThUS$ 55,516 as of December 31, 2020.

91 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

13.6      Financial asset and liability categories

a)            Financial Assets

	As of June 30, 2021						As of December 31, 2020
Description of financial assets	Current		Non-current		Total		Current		Non-current		Total
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Cash and cash equivalent		1,242,853		-		1,242,853		509,102		-		509,102
Trade receivables due from related parties at amortized cost		54,538		-		54,538		62,601		-		62,601
Financial assets measured at amortized cost		702,879		71		702,950		345,459		80		345,539
Loans and receivables measured at amortized cost		453,203		11,425		464,628		365,206		11,165		376,371
Total financial assets measured at amortized cost		2,453,473		11,496		2,464,969		1,282,368		11,245		1,293,613
Financial instruments for hedging purposes through equity		3,911		18,423		22,334		-		37,276		37,276
Financial instruments held for trading at through profit or loss		2,663		-		2,663		2,610		-		2,610
Financial assets classified as available for sale at fair value through equity		-		7,653		7,653		-		14,569		14,569
Total financial assets at fair value		6,574		26,076		32,650		2,610		51,845		54,455
Total financial assets		2,460,047		37,572		2,497,619		1,284,978		63,090		1,348,068

92 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

b)            Financial Liabilities

	As of June 30, 2021						As of December 31, 2020
Description of financial liabilities	Current		Non-current		Total		Current		Non-current		Total
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
For hedging purposes through equity		5,567		19,368		24,935		26,699		13,511		40,210
Held for trading at fair value through profit or loss		125		-		125		5,393		-		5,393
Financial liabilities at fair value through profit or loss		5,692		19,368		25,060		32,092		13,511		45,603
Bank loans		82		69,495		69,577		82		69,376		69,458
Obligations to the public		36,363		1,809,630		1,845,993		36,781		1,816,626		1,853,407
Lease Liabilities		7,770		31,448		39,218		5,528		25,546		31,074
Trade and other payables		227,289		11,767		239,056		203,933		4,027		207,960
Trade payables due to related parties		-		-		-		606		-		606
Total financial liabilities at amortized cost		271,504		1,922,340		2,193,844		246,930		1,915,575		2,162,505
Total financial liabilities		277,196		1,941,708		2,218,904		279,022		1,929,086		2,208,108

93 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

13.7 Fair value measurement of finance assets and liabilities

The fair value hierarchy is detailed as follows:

(a) Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the Company is the current bid price. These instruments are included in level 1..

(b) Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

(c) Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities..

94 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

	As of June 30, 2021						Measurement Methodology
Fair value measurement of assets and liabilities	Carrying Amount at Amortized Cost		Fair value (informative)		Book Value Fair value		Level 1		Level 2		Level 3
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Financial Assets
Cash and cash equivalents		1,242,853		1,242,853		-		-		1,242,853		-
Other current financial assets
- Time deposits		702,879		702,879		-		-		702,879		-
- Derivative financial instruments
- Forwards		-		-		1,426		-		1,426		-
- Options		-		-		1,237		-		1,237		-
- Hedging assets		-		-		2,859		-		2,859		-
- Swaps		-		-		1,052		-		1,052		-
Non-current accounts receivable		11,425		11,425		-		-		-		-
Other non-current financial assets:
- Other		71		71		-		-		71		-
- Equity instruments		-		-		7,653		7,653		-		-
- Hedging assets – Swaps		-		-		18,423		-		18,423		-
Other current financial liabilities
- Bank borrowings		82		82		-		-		82		-
- Derivative instruments		-		-		-		-		-		-
- Forwards		-		-		48		-		48		-
- Options		-		-		77		-		77		-
-Hedging liabilities – Swaps		-		-		5,483		-		5,483		-
-Swaps		-		-		84		-		84		-
- Unsecured obligations		36,363		36,363		-		-		36,363		-
- Current lease liabilities		7,770		7,770		-		-		7,770		-
Other non-current financial liabilities
- Bank borrowings		69,495		70,508		-		-		70,508		-
- Unsecured obligations		1,809,630		2,111,629		-		-		2,111,629		-
- Non-current hedging liabilities		-		-		19,368		-		19,368		-
- Non-current lease liabilities		31,448		30,346		-		-		30,346		-

95 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

	As of December 31, 2020						Measurement Methodology
Fair value measurement of assets and liabilities	Carrying Amount at Amortized Cost		Fair value (informative)		Book Value Fair value		Level 1		Level 2		Level 3
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Financial Assets
Cash and cash equivalents		509,102		509,102		-		-		509,102		-
Other current financial assets
- Time deposits		345,459		345,459		-		-		345,459		-
- Derivative financial instruments
- Forwards		-		-		2,263		-		2,263		-
- Options		-		-		347		-		347		-
Non-current accounts receivable		11,165		11,165		-		-		-		-
Other non-current financial assets:
- Other		80		80		-		-		80		-
- Equity instruments		-		-		14,569		14,569		-		-
- Hedging assets – Swaps		-		-		37,276		-		37,276		-
Other current financial liabilities
- Bank borrowings		82		82		-		-		82		-
- Derivative instruments		-		-		-		-		-		-
- Forwards		-		-		4,614		-		4,614		-
- Options		-		-		780		-		780		-
-Hedging liabilities – Swaps		-		-		5,695		-		5,695		-
-Swaps		-		-		21,004		-		21,004		-
- Unsecured obligations		36,781		36,781		-		-		36,781		-
- Current lease liabilities		5,528		5,528		-		-		5,528		-
Other non-current financial liabilities
- Bank borrowings		69,376		71,029		-		-		71,029		-
- Unsecured obligations		1,816,626		2,355,943		-		-		2,355,943		-
- Non-current hedging liabilities		-		-		13,511		-		13,511		-
- Non-current lease liabilities		25,546		26,027		-		-		26,027		-

96 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

13.8 Estimated fair value of financial instruments

The fair value of financial assets and liabilities is estimated using the following information. Although the data represent Management's best estimates, it is subjective and involves significant estimates regarding current economic conditions, market conditions and risk characteristics.

Methodologies and assumptions used depend on the risk terms and characteristics of instruments and include the following as a summary:

Fair value estimation

Financial assets and liabilities measured at fair value consist of forwards hedging the mismatch in the balance sheet and cash flows, options hedging the mismatch in the balance sheet and cross currency swaps to hedge bonds issued in local currency (Peso/UF).

The fair value of the Company’s assets and liabilities recognized by cross currency swaps contracts is calculated as the difference between the present value of discounted cash flows of the asset (Ch/UF) and liability (US$) parts of the derivative. In the case of the IRS, the asset value recognized is calculated as the difference between the discounted cash flows of the asset (variable rate) and liability (fixed rate) parts of the derivative. Forwards are calculated as the difference between the strike price of the contract and the spot price plus the forwards points at the date of the contract. Financial options: the value recognized is calculated using the Black-Scholes method.

In the case of CCS, the entry data used for the valuation models are UF, Peso, Dollar and basis swap rates. In the case of fair value calculations for interest rate swaps, the Forward Rate Agreement rate and ICVS 23 Curve (Bloomberg: cash/deposits rates, futures, swaps). In the case of forwards, the forwards curve for the currency in question is used. Finally, for options, the spot price, risk-free rate and volatility of exchange rate are used, all in accordance with the currencies used in each valuation. The financial information used as entry data for the Company’s valuation models is obtained from Bloomberg, the well-known financial software company. Conversely, the fair value provided by the counterparties of derivatives contracts is used only as a control and not for valuation.

The effects on profit or loss of movements in these amounts is recognized in the caption finance costs, foreign currency translation gain (loss) or cash flow hedge reserve in the statement of comprehensive income, depending on each particular case.

Estimate of fair value for reporting purposes

· Cash equivalent approximates fair value due to the short-term maturities of these instruments.

· The fair value of current trade receivables is considered to be equal to the carrying amount due to the maturity of such accounts at short-term.

· Payables, current lease liabilities and other current financial liabilities are considered fair value equal to book value due to the short-term maturity of these accounts.

The fair value of the debt (long-term secured and unsecured debentures; bonds denominated in local currency (Peso/UF) and foreign currency (Dollar), borrowings denominated in foreign currency (Dollar) and lease liabilities of the Company are calculated at current value of cash flows subtracted from market rates upon valuation, considering the terms of maturity and exchange rates. The UF and Peso rate curves are used as inputs for the valuation model. This information is obtained through from the renowned financial software company, Bloomberg, and the Chilean Association of Banks and Financial Institutions.

97 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Nota 14 Right-of-use assets and Lease liabilities

14.1 Right-of-use assets

Reconciliation of changes in right-of-use assets as of June 30, 2021, net value	Land	Buildings		Other property, plant and equipment	Transport equipment		Supplies and accessories	Office equipment	Network and communication equipment	Mining assets	IT equipment	Energy generating assets	Constructions in progress	Machinery, plant and equipment		Buildings, plant and equipment
	ThUS$	ThUS$		ThUS$	ThUS$		ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$		ThUS$
Opening Balance	-	23,377		-	2,479		-	-	-	-	-	-	-	4,168		30,024
Additions	-	681		-	10,067		-	-	-	-	-	-	-	1,897		12,645
Depreciation expenses	-	(1,734	)	-	(1,525	)	-	-	-	-	-	-	-	(957	)	(4,216	)
Other increases / decreases	-	-		-	-		-	-	-	-	-	-	-	(536	)	(536	)
Total changes	-	(1,053	)	-	8,542		-	-	-	-	-	-	-	404		7,893
Closing balance	-	22,324		-	11,021		-	-	-	-	-	-	-	4,572		37,917

Reconciliation of changes in right-of-use assets as of December 31, 2020, net value	Land	Buildings		Other property, plant and equipment	Transport equipment		Supplies and accessories	Office equipment	Network and communication equipment	Mining assets	IT equipment	Energy generating assets	Constructions in progress	Machinery, plant and equipment		Buildings, plant and equipment
	ThUS$	ThUS$		ThUS$	ThUS$		ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$		ThUS$
Opening Balance	-	25,742		-	3,356		-	-	-	-	-	-	-	8,066		37,164
Additions	-	1,782		-	-		-	-	-	-	-	-	-	121		1,903
Depreciation expenses	-	(3,535	)	-	(877	)	-	-	-	-	-	-	-	(4,019	)	(8,431	)
Other increases / decreases	-	(612	)	-	-		-	-	-	-	-	-	-	-		(612	)
Total changes	-	(2,365	)	-	(877	)	-	-	-	-	-	-	-	(3,898	)	(7,140	)
Closing balance	-	23,377		-	2,479		-	-	-	-	-	-	-	4,168		30,024

The Company’s lease activities included the following aspects:

(a) The nature of the Company’s lease activities is related to contracts focused primarily on business operations, mainly rights-of-use to equipment and real estate,

(b) The Company does not estimate any significant future cash outflows that would potentially expose the Company, and these are likewise not reflected in the measurement of lease liabilities, related to concepts such as: (i) Variable lease payments, (ii) Expansion options and termination options, (iii) Guaranteed residual value and (iv) Leases not yet undertaken but committed by the Company.

(c) These are not subject to restrictions or agreements imposed by contracts.

There were no sales transactions with leases later in the period.

98 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

14.2 Lease liabilities

	As of June 30, 2021				As of December 31, 2020
	Current		Current		Current		Non-Current
Lease liabilities	ThUS$		ThUS$		ThUS$		ThUS$
Lease liabilities		7,770		31,448		5,528		25,546
Total		7,770		31,448		5,528		25,546

i) Current and non-current lease liabilities

	Debtor			Creditor
Tax ID No.	Company	Country	TAX ID No.	Supplier	Country	Contract indexation unit	Type of amortization	Maturity date	Effective rate
79.626.800-K	SQM Salar S.A.	Chile	83.776.000-3	Empresa Constructora Contex Ltda	Chile	UF	Monthly	03-31-2025		5.39	%
79.626.800-K	SQM Salar S.A.	Chile	76.327.820-4	Maquinaria Astudillo y Hermanos Limitada	Chile	UF	Monthly	01-08-2026		2.89	%
79.626.800-K	SQM Salar S.A.	Chile	76.146.110-9	Transportes, Construcción y Servicios Cribach Ltda	Chile	Peso	Monthly	09-01-2020		8.93	%
79.626.800-K	SQM Salar S.A.	Chile	76.065.017-K	SKM Industrial Ltda.	Chile	Peso	Monthly	06-01-2022		8.93	%
79.626.800-K	SQM Salar S.A.	Chile	96.862.140-8	Ameco Chile S.A.	Chile	Peso	Monthly	04-24-2021		4.07	%
79.626.800-K	SQM Salar S.A.	Chile	76.327.820-4	Maquinaria Astudillo y Hermanos Limitada	Chile	Peso	Monthly	11-24-2025		2.89	%
79.947.100-0	SQM Industrial S.A.	Chile	96.856.400-5	El Trovador S.A.	Chile	UF	Monthly	02-08-2030		3.10	%
79.947.100-0	SQM Industrial S.A.	Chile	76.976.580-8	Sociedad Comercial Grandleasing Chile Ltda	Chile	UF	Monthly	08-26-2024		2.72	%
79.947.100-0	SQM Industrial S.A.	Chile	76.536.499-K	Jungheinrich Rentalif SPA	Chile	UF	Monthly	10-07-2024		3.49	%
96.592.190-7	SQM Nitratos S.A.	Chile	76.536.499-K	Jungheinrich Rentalif SPA	Chile	UF	Monthly	10-07-2024		3.49	%
93.007.000-9	SQM S.A.	Chile	76.536.499-K	Jungheinrich Rentalif SPA	Chile	UF	Monthly	10-07-2024		3.49	%
79.768.170-9	Soquimich Comercial S.A.	Chile	96.662.540-6	Containers Operators S.A.	Chile	UF	Monthly	12-31-2022		0.81	%
79.768.170-9	Soquimich Comercial S.A.	Chile	76.729.932-K	SAAM Logistics S.A.	Chile	UF	Monthly	08-01-2022		0.81	%

99 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

	Debtor			Creditor
Tax ID No.	Company	Country	TAX ID No.	Supplier	Country	Contract indexation unit	Type of amortization	Maturity date	Effective rate
79.768.170-9	Soquimich Comercial S.A.	Chile	91.577.000-2	Muelles de Penco S.A.	Chile	UF	Monthly	07-06-2023		1.30	%
79.768.170-9	Soquimich Comercial S.A.	Chile	91.577.000-2	Muelles de Penco S.A.	Chile	UF	Monthly	07-06-2023		1.30	%
79.768.170-9	Soquimich Comercial S.A.	Chile	76.722.280-7	Inmobiliaria Chincui SPA	Chile	UF	Monthly	05-01-2028		3.38	%
79.768.170-9	Soquimich Comercial S.A.	Chile	96.565.580-8	Compañía de Leasing Tattersall S.A.	Chile	UF	Monthly	05-24-2021		6.18	%
Foreign	SQM North America Corp.	USA	Foreign	Paces West LL.	USA	Dollar	Monthly	12-31-2027		3.36	%
Foreign	SQM North America Corp.	USA	Foreign	Hawkins Nunmber One, LLC	USA	Dollar	Monthly	08-31-2024		3.33	%
Foreign	SQM North America Corp.	USA	Foreign	Deep South Equipment Company	USA	Dollar	Monthly	03-24-2024		1.33	%
Foreign	SQM Comercial de México S.A. de C.V.	Mexico	Foreign	Onni Ensenada S.A. de C.V.	Mexico	Dollar	Monthly	12-03-2026		3.45	%
Foreign	SQM Comercial de México S.A. de C.V.	Mexico	Foreign	Madol Inmobiliaria S.A. de C.V.	Mexico	Peso Mexicano	Monthly	10-31-2023		7.84	%
Foreign	SQM Comercial de México S.A. de C.V.	Mexico	Foreign	Madol Inmobiliaria S.A. de C.V.	Mexico	Peso Mexicano	Monthly	10-31-2023		7.84	%
Foreign	SQM Europe N.V.	Belgium	Foreign	Straatsburgdok N.V.	Belgium	Euro	Monthly	03-31-2027		1.30	%
Foreign	SQM Australia PTY	Australia	Foreign	Eagle Petroleum (WA) Pty Ltd	Australia	Australian dollar	Monthly	06-21-2022		5.00	%
Foreign	SQM Australia PTY	Australia	Foreign	The trust Company (Australia) Pty Ltd	Australia	Australian dollar	Monthly	01-31-2021		3.60	%

100 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

(a) As of June 30, 2021, and December 31, 2020, current lease liabilities are analyzed as follows:

Debtor	Creditor	Nominal amounts as of June 30,2021						Amounts at amortized cost as of June 30, 2021
Company	Supplier	Up to 90 days		90 days to 1 year		Total		Up to 90 days		90 days to 1 year		Total
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
SQM Salar S.A.	Empresa Constructora Contex Ltda		540		1,619		2,159		445		1,371		1,816
SQM Salar S.A.	Maquinaria Astudillo y Hermanos Limitada		100		300		400		88		268		356
SQM Salar S.A.	SKM Industrial Ltda.		202		540		742		189		523		712
SQM Salar S.A.	Maquinaria Astudillo y Hermanos Limitada		48		145		193		43		130		173
SQM Industrial S.A.	El Trovador S.A.		466		1,399		1,865		359		1,094		1,453
SQM Industrial S.A.	Sociedad Comercial Grandleasing Chile Ltda		180		540		720		166		505		671
SQM Industrial S.A.	Jungheinrich Rentalif SPA		29		88		117		26		80		106
SQM Nitratos S.A.	Jungheinrich Rentalif SPA		18		55		73		16		50		66
SQM S.A.	Jungheinrich Rentalif SPA		20		59		79		18		54		72
Soquimich Comercial S.A.	Containers Operators S.A.		86		258		344		85		256		341
Soquimich Comercial S.A.	Muelles de Penco S.A.		41		124		165		40		122		162
Soquimich Comercial S.A.	Muelles de Penco S.A.		44		133		177		43		131		174
Soquimich Comercial S.A.	Inmobiliaria Chincui SPA		157		471		628		125		381		506
SQM North America Corp.	Paces West LL.		55		165		220		43		132		175
SQM North America Corp.	Hawkins Nunmber One, LLC		32		97		129		28		89		117
SQM North America Corp.	Deep South Equipment Company		1		4		5		1		4		5
SQM Comercial de México S.A. de C.V.	Onni Ensenada S.A. de C.V.		99		296		395		82		251		333
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.		20		59		79		16		51		67
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.		7		21		28		6		18		24
SQM Europe N.V.	Straatsburgdok N.V.		102		306		408		94		285		379
SQM Australia PTY	Eagle Petroleum (WA) Pty Ltd		5		16		21		5		16		21
SQM Australia PTY	Knight Frank		10		31		41		10		31		41
Total			2,262		6,726		8,988		1,928		5,842		7,770

101 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Debtor	Creditor	Nominal amounts as of December 31,2020						Amounts at amortized cost as of December 31, 2020
Company	Supplier	Up to 90 days		90 days to 1 year		Total		Up to 90 days		90 days to 1 year		Total
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
SQM Salar S.A.	Empresa Constructora Contex Ltda		536		-		536		536		-		536
SQM Salar S.A.	Transportes, Construcción y Servicios Cribach Ltda		-		-		-		-		-		-
SQM Salar S.A.	SKM Industrial Ltda.		202		607		809		181		566		747
SQM Salar S.A.	Ameco Chile S.A.		135		-		135		134		-		134
SQM Industrial S.A.	El Trovador S.A.		466		1,399		1,865		353		1,076		1,429
SQM Industrial S.A.	Sociedad Comercial Grandleasing Chile Ltda		180		540		720		164		498		662
Soquimich Comercial S.A.	SAAM Logistics S.A.		-		-		-		-		-		-
Soquimich Comercial S.A.	Muelles de Penco S.A.		41		124		165		54		107		161
Soquimich Comercial S.A.	Muelles de Penco S.A.		44		133		177		57		115		172
Soquimich Comercial S.A.	Inmobiliaria Chincui SPA		157		471		628		123		376		499
Soquimich Comercial S.A.	Compañía de Leasing Tattersall S.A.		55		18		73		54		18		72
SQM North America Corp.	Paces West LL.		53		163		216		41		128		169
SQM North America Corp.	Hawkins Nunmber One, LLC		31		96		127		28		85		113
SQM Comercial de México S.A. de C.V.	Onni Ensenada S.A. de C.V.		99		296		395		81		246		327
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.		20		59		79		16		49		65
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.		7		21		28		6		18		24
SQM Europe N.V.	Straatsburgdok N.V.		91		302		393		83		279		362
SQM Australia PTY	The trust Company (Australia) Pty Ltd		14		42		56		14		42		56
Total			2,131		4,271		6,402		1,925		3,603		5,528

102 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

As of June 30, 2021 and December 31, 2020, the non-current lease liabilities are analyzed as follows:

Debtor	Creditor	Nominal amounts as of June 30,2021				Amounts at amortized cost as of June 30, 2021
		1-2 Years	2-3 Years	3-4 Years	Total	1-2 Years	2-3 Years	3-4 Years	Total
Company	Supplier	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$
SQM Salar S.A.	Empresa Constructora Contex Ltda	4,317	1,619	-	5,936	3,931	1,584	-	5,515
SQM Salar S.A.	Maquinaria Astudillo y Hermanos Limitada	800	634	-	1,434	743	619	-	1,362
SQM Salar S.A.	Transportes, Construcción y Servicios Cribach Ltda	-	-	-	-	-	-	-	-
SQM Salar S.A.	SKM Industrial Ltda.	-	-	-	-	-	-	-	-
SQM Salar S.A.	Ameco Chile S.A.	-	-	-	-	-	-	-	-
SQM Salar S.A.	Maquinaria Astudillo y Hermanos Ltda.	386	273	-	659	360	268	-	628
SQM Industrial S.A.	El Trovador S.A.	3,730	5,594	4,973	14,297	3,039	4,922	4,770	12,731
SQM Industrial S.A.	Sociedad Comercial Grandleasing Chile Ltda	1,441	60	-	1,501	1,398	60	-	1,458
SQM Industrial S.A.	Jungheinrich Rentalif SPA	236	39	-	275	225	39	-	264
SQM Nitratos S.A.	Jungheinrich Rentalif SPA	146	24	-	170	139	24	-	163
SQM S.A.	Jungheinrich Rentalif SPA	158	26	-	184	151	26	-	177
Soquimich Comercial S.A.	Containers Operators S.A.	172	-	-	172	171	-	-	171
Soquimich Comercial S.A.	SAAM Logistics S.A.	-	-	-	-	-	-	-	-
Soquimich Comercial S.A.	Muelles de Penco S.A.	179	-	-	179	177	-	-	177
Soquimich Comercial S.A.	Muelles de Penco S.A.	192	-	-	192	191	-	-	191
Soquimich Comercial S.A.	Inmobiliaria Chincui SPA	1,255	1,883	575	3,713	1,064	1,736	566	3,366
Soquimich Comercial S.A.	Compañía de Leasing Tattersall S.A.	-	-	-	-	-	-	-	-
SQM North America Corp.	Paces West LL.	458	741	131	1,330	389	691	129	1,209
SQM North America Corp.	Hawkins Nunmber One, LLC	267	23	-	290	256	22	-	278
SQM North America Corp.	Deep South Equipment Company	9	-	-	9	9	-	-	9
SQM Comercial de México S.A. de C.V.	Onni Ensenada S.A. de C.V.	789	954	-	1,743	701	914	-	1,615
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.	104	-	-	104	99	-	-	99
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.	38	-	-	38	36	-	-	36
SQM Europe N.V.	Straatsburgdok N.V.	823	1,240	-	2,063	781	1,218	-	1,999
SQM Australia PTY	Knight Frank	-	-	-	-	-	-	-	-
SQM Australia PTY	Eagle Petroleum (WA) Pty Ltd	-	-	-	-	-	-	-	-
Total		15,500	13,110	5,679	34,289	13,860	12,123	5,465	31,448

103 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Debtor	Creditor	Nominal amounts as of December 31,2020				Amounts at amortized cost as of December 31, 2020
		1-2 Years	2-3 Years	3-4 Years	Total	1-2 Years	2-3 Years	3-4 Years	Total
Company	Supplier	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$
SQM Salar S.A.	Empresa Constructora Contex Ltda	-	-	-	-	-	-	-	-
SQM Salar S.A.	Transportes, Construcción y Servicios Cribach Ltda	-	-	-	-	-	-	-	-
SQM Salar S.A.	SKM Industrial Ltda.	337	-	-	337	330	-	-	330
SQM Salar S.A.	Ameco Chile S.A.	-	-	-	-	-	-	-	-
SQM Industrial S.A.	El Trovador S.A.	3,730	5,594	5,905	15,229	2,993	4,847	5,622	13,462
SQM Industrial S.A.	Sociedad Comercial Grandleasing Chile Ltda	1,441	420	-	1,861	1,379	417	-	1,796
Soquimich Comercial S.A.	SAAM Logistics S.A.	-	-	-	-	-	-	-	-
Soquimich Comercial S.A.	Muelles de Penco S.A.	262	-	-	262	163	96	-	259
Soquimich Comercial S.A.	Muelles de Penco S.A.	281	-	-	281	175	103	-	278
Soquimich Comercial S.A.	Inmobiliaria Chincui SPA	1,255	1,883	889	4,027	1,047	1,707	867	3,621
Soquimich Comercial S.A.	Compañía de Leasing Tattersall S.A.	-	-	-	-	-	-	-	-
SQM North America Corp.	Paces West LL.	452	730	258	1,440	377	668	253	1,298
SQM North America Corp.	Hawkins Nunmber One, LLC	263	90	-	353	249	89	-	338
SQM Comercial de México S.A. de C.V.	Onni Ensenada S.A. de C.V.	789	1,151	-	1,940	689	1,094	-	1,783
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.	144	-	-	144	133	-	-	133
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.	52	-	-	52	48	-	-	48
SQM Europe N.V.	Straatsburgdok N.V.	816	1,339	113	2,268	768	1,308	113	2,189
SQM Australia PTY	The trust Company (Australia) Pty Ltd	11	-	-	11	11	-	-	11
Total		9,833	11,207	7,165	28,205	8,362	10,329	6,855	25,546

104 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Other lease disclosures

Total lease expenses related to lease payments were ThUS$ 37,322 and ThUS$ 31,509 for the periods ended June 30, 2021 and 2020. See Note 22.8.

Expenses related to variable payments not included in lease liabilities were MUS$ 380 and MUS$ 548 for the periods ending June 30, 2021 and 2020.

Income from subleases on right-of-use assets were ThUS$ 76 and ThUS$ 110 as of June 30, 2021 and 2020, respectively.

Payments for contractual operating leases are disclosed in Note 4.2 Liquidity Risk.

105 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Note 15      Intangible assets and goodwill

15.1 Balances

As of June 30, 2021
Intangible assets and goodwill	Useful life	Net Value
		ThUS$
IT programs	Finite		4,008
Mining rights	Finite		149,606
Water rights and rights of way	Indefinite		5,342
Water rights	Finite		17,053
Customer-related intangible assets	Finite		-
Other intangible assets	Finite		163
Intangible assets other than goodwill			176,172
Goodwill	Indefinite		41,966
Total Intangible Asset			218,138

As of December 31, 2020
Intangible assets and goodwill	Useful life	Net Value
		ThUS$
IT programs	Finite		4,826
Mining rights	Finite		150,046
Water rights and rights of way	Indefinite		23,343
Customer-related intangible assets	Finite		-
Other intangible assets	Finite		192
Intangible assets other than goodwill			178,407
Goodwill	Indefinite		41,966
Total Intangible Asset			220,373

106 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

a) Movements in identifiable intangible assets as of June 30, 2021:

Gross Value	IT programs		Mining rights, Finite		Water rights, and rights of way,  Indefinite		Water rights Finite	Customer- related intangible assets	Other intangible assets		Goodwill	Identifiable intangible assets
Movements in identifiable intangible assets	ThUS$		ThUS$		ThUS$		ThUS$	ThUS$	ThUS$		ThUS$	ThUS$
Opening Balance	35,281		160,496		7,424		18,000	1,778	2,274		45,500	270,753
Additions	40		-		-		-	-	6		-	46
Other increases / decreases for foreign currency exchange rates	(3	)	19		(1	)	-	-	(1	)	-	14
Impairment losses recognized in profit or loss for the year	-		-		-		-	-	-		-	-
Decrease for classification as held for sale	-		(2	)	-		-	-	-		-	(2	)
Transferred from available for sale	-		18		-		-	-	-		-	18
Other increases (decreases)	36		-		-		-	-	-		-	36
Total increases (decreases)	73		35		(1	)	-	-	5		-	112
Closing balance	35,354		160,531		7,423		18,000	1,778	2,279		45,500	270,865

Accumulated amortization and impairment	IT programs		Mining rights, Finite		Water rights, and rights of way,  Indefinite		Water rights Finite		Customer- related intangible assets		Other intangible assets		Goodwill		Identifiable intangible assets
Movements in identifiable intangible assets	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Opening Balance	(30,455	)	(10,450	)	(2,081	)	-		(1,778	)	(2,082	)	(3,534	)	(50,380	)
Other increases / decreases for foreign currency exchange rates	2		-		-		-		-		-		-		2
Other increases (decreases)	-		-		-		-		-		-		-		-
Impairment losses recognized in profit for the year (1)	-		(48	)	-		-		-		-		-		(48	)
Amortization	(893	)	(427	)	-		(947	)	-		(34	)	-		(2,301	)
Total increases (decreases)	(891	)	(475	)	-		(947	)	-		(34	)	-		(2,347	)
Closing balance	(31,346	)	(10,925	)	(2,081	)	(947	)	(1,778	)	(2,116	)	(3,534	)	(52,727	)

107 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

(1) See Note 22.5

Net value	IT programs		Mining rights, Finite		Water rights, and rights of way,  Indefinite		Water rights Finite		Customer-related intangible assets	Other intangible assets		Goodwill	Identifiable intangible assets
Movements in Identifiable intangible assets	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$	ThUS$		ThUS$	ThUS$
Opening Balance	4,826		150,046		5,343		18,000		-	192		41,966	220,373
Additions	40		-		-		-		-	6		-	46
Amortization	(893	)	(427	)	-		(947	)	-	(34	)	-	(2,301	)
Impairment losses recognized in profit for the year	-		(48	)	-		-		-	-		-	(48	)
Other increases / decreases for foreign currency exchange rates	(1	)	19		(1	)	-		-	(1	)	-	16
Decrease for classification as held for sale	-		(2	)	-		-		-	-		-	(2	)
Transferred from available for sale	-		18		-		-		-	-		-	18
Other increases (decreases)	36		-		-		-		-	-		-	36
Total increases (decreases)	(818	)	(440	)	(1	)	(947	)	-	(29	)	-	(2,235	)
Closing balance	4,008		149,606		5,342		17,053		-	163		41,966	218,138

Movements in identifiable intangible assets as of December 31, 2020:

Gross Value	IT programs		Mining rights, Finite		Water rights, and rights of way, Indefinite	Customer-related intangible assets	Other intangible assets	Goodwill	Identifiable intangible assets
Movements in identifiable intangible assets	ThUS$		ThUS$		ThUS$	ThUS$	ThUS$	ThUS$	ThUS$
Opening Balance		34,471	158,337		25,423	1,778	2,188	38,120	260,317
Additions		508	2,295		-	-	72	7,380	10,255
Other increases / decreases for foreign currency exchange rates		5	-		1	-	-	-	6
Decreases through sale		-	(136	)	-	-	-	-	(136	)
Other increases (decreases)		297	-		-	-	14	-	311
Total increases (decreases)		810	2,159		1	-	86	7,380	10,436
Closing balance		35,281	160,496		25,424	1,778	2,274	45,500	270,753

108 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Accumulated amortization and impairment	IT programs		Mining rights, Finite		Water rights, and rights of way,  Indefinite		Customer-related intangible assets		Other intangible assets		Goodwill		Identifiable intangible assets
Movements in identifiable intangible assets	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Opening Balance	(28,460	)	(767	)	(2,081	)	(505	)	(2,026	)	(3,394	)	(37,233	)
Other increases / decreases for foreign currency exchange rates	-		-		-		-		-		-		-
Other increases (decreases)	-		(2	)	-		-		-		-		(2	)
Impairment losses recognized in profit for the year	(14	)	(654	)	-		(990	)	-		(140	)	(1,798	)
Amortization	(1,981	)	(9,027	)	-		(283	)	(56	)	-		(11,347	)
Total increases (decreases)	(1,995	)	(9,683	)	-		(1,273	)	(56	)	(140	)	(13,147	)
Closing balance	(30,455	)	(10,450	)	(2,081	)	(1,778	)	(2,082	)	(3,534	)	(50,380	)

Net value	IT programs		Mining rights, Finite		Water rights, and rights of way,  Indefinite	Customer- related intangible assets		Other intangible assets			Goodwill			Identifiable intangible assets
Movements in Identifiable intangible assets	ThUS$		ThUS$		ThUS$	ThUS$		ThUS$			ThUS$			ThUS$
Opening Balance	6,011		157,570		23,342	1,273			162			34,726		223,084
Additions	508		2,295		-	-			72			7,380		10,255
Amortization	(1,981	)	(9,027	)	-	(283	)		(56	)		-		(11,347	)
Impairment losses recognized in profit for the year	(14	)	(654	)	-	(990	)		-			(140	)	(1,798	)
Other increases / decreases for foreign currency exchange rates	5		-		1	-			-			-		6
Decreases through sale	-		(136	)	-	-			-			-		(136	)
Other increases (decreases)	297		(2	)	-	-			14			-		309
Total increases (decreases)	(1,185	)	(7,524	)	1	(1,273	)		30			7,240		(2,711	)
Closing balance	4,826		150,046		23,343	-			192			41,966		220,373

109 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

(b)            Movements in identifiable goodwill as of June 30, 2021:

Gross Value	Goodwill at the start of the period January 01, 2021		Additional recognition		Impairment losses recognized in profit or loss for the year (-)		Total increase (decrease)		Goodwill at end of period
Movements in identifiable goodwill	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
SQM Industrial S.A.		3,214		-		-		-		3,214
SQM S.A.		22,255		-		-		-		22,255
SQM Iberian S.A.		148		-		-		-		148
SQM Investment Corporation		86		-		-		-		86
Soquimich Comercial S.A.		320		-		-		-		320
Soquimich European Holding B.V.		11,383		-		-		-		11,383
SQM Holland B.V.		7,370		-		-		-		7,370
SQM Potasio S.A.		724		-		-		-		724
Total increases (decreases)		45,500		-		-		-		45,500
Closing balance		45,500		-		-		-		45,500

Accumulated impairment	Goodwill at the start of the period January 01, 2021			Additional recognition		Impairment losses recognized in profit or loss for the year (-)		Total increase (decrease)		Goodwill at end of period
Movements in identifiable goodwill	ThUS$			ThUS$		ThUS$		ThUS$		ThUS$
SQM Industrial S.A.		(3,214	)		-		-		-		(3,214	)
SQM S.A.		-			-		-		-		-
SQM Iberian S.A.		-			-		-		-		-
SQM Investment Corporation		-			-		-		-		-
Soquimich Comercial S.A.		(320	)		-		-		-		(320	)
Soquimich European Holding B.V.		-			-		-		-		-
SQM Holland B.V.		-			-		-		-		-
SQM Potasio S.A.		-			-		-		-		-
Total increases (decreases)		(3,534	)		-		-		-		(3,534	)
Closing balance		(3,534	)		-		-		-		(3,534	)

110 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Net Value	Goodwill at the start of the period January 01, 2021		Additional recognition	Impairment losses recognized in profit or loss for the year (-)	Total increase (decrease)	Goodwill at end of period
Movements in identifiable goodwill	ThUS$		ThUS$	ThUS$	ThUS$	ThUS$
SQM Industrial S.A.	-		-	-	-	-
SQM S.A.		22,255	-	-	-		22,255
SQM Iberian S.A.		148	-	-	-		148
SQM Investment Corporation		86	-	-	-		86
Soquimich Comercial S.A.		-	-	-	-		-
Soquimich European Holding B.V.		11,383	-	-	-		11,383
SQM Holland B.V.		7,370	-	-	-		7,370
SQM Potasio S.A.		724	-	-	-		724
Total increases (decreases)		41,966	-	-	-		41,966
Closing balance		41,966	-	-	-		41,966

Movements in identifiable goodwill as of December 31, 2020

Gross Value	Goodwill at the start of the period January 01, 2020		Additional recognition		Impairment losses recognized in profit or loss for the year (-)	Total increase (decrease)		Goodwill at end of period
Movements in identifiable goodwill	ThUS$		ThUS$		ThUS$	ThUS$		ThUS$
SQM Industrial S.A.		3,214		-	-		-		3,214
SQM S.A.		22,255		-	-		-		22,255
SQM Iberian S.A.		148		-	-		-		148
SQM Investment Corporation		86		-	-		-		86
Soquimich Comercial S.A.		320		-	-		-		320
Soquimich European Holding B.V.		11,373		10	-		10		11,383
SQM Holland B.V.		-		7,370	-		7,370		7,370
SQM Potasio S.A.		724		-	-		-		724
Total increases (decreases)		38,120		7,380	-		7,380		45,500
Closing balance		38,120		7,380	-		7,380		45,500

111 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

	Goodwill at the start of the period January 01, 2020		Additional recognition	Impairment losses recognized in profit or loss for the year (-)		Total increase (decrease)		Goodwill at end of period
Accumulated impairment Movements in identifiable goodwill	ThUS$		ThUS$	ThUS$		ThUS$		ThUS$
SQM Industrial S.A.	(3,214	)	-	-		-		(3,214	)
SQM S.A.	-		-	-		-		-
SQM Iberian S.A.	-		-	-		-		-
SQM Investment Corporation	-		-	-		-		-
Soquimich Comercial S.A.	(180	)	-	(140	)	(140	)	(320	)
Soquimich European Holding B.V.	-		-	-		-		-
SQM Holland B.V.	-		-	-		-		-
SQM Potasio S.A.	-		-	-		-		-
Total increases (decreases)	(3,394	)	-	(140	)	(140	)	(3,534	)
Closing balance	(3,394	)	-	(140	)	(140	)	(3,534	)

	Goodwill at the start of the period January 01, 2020	Additional recognition	Impairment losses recognized in profit or loss for the year (-)		Total increase (decrease)		Goodwill at end of period
Net Value Movements in identifiable goodwill	ThUS$	ThUS$	ThUS$		ThUS$		ThUS$
SQM Industrial S.A.	-	-	-		-		-
SQM S.A.	22,255	-	-		-		22,255
SQM Iberian S.A.	148	-	-		-		148
SQM Investment Corporation	86	-	-		-		86
Soquimich Comercial S.A.	140	-	(140	)	(140	)	-
Soquimich European Holding B.V.	11,373	10	-		10		11,383
SQM Holland B.V.	-	7,370	-		7,370		7,370
SQM Potasio S.A.	724	-	-		-		724
Total increases (decreases)	34,726	7,380	(140	)	7,240		41,966
Closing balance	34,726	7,380	(140	)	7,240		41,966

112 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

Note 16      Property, plant and equipment

As of June 30, 2021, and December 31, 2020, the detail of property, plant and equipment is as follows:

16.1 Types of property, plant and equipment

Description of types of property, plant and equipment	As of June 30, 2021			As of December 31, 2020
	ThUS$			ThUS$
Property, plant and equipment, net
Land		23,569			23,579
Buildings		241,752			239,666
Other property, plant and equipment		34,481			35,418
Transport equipment		2,622			2,880
Supplies and accessories		4,152			4,183
Office equipment		1,371			459
Network and communication equipment		1,182			1,272
Mining assets		42,111			47,052
IT equipment		3,762			4,083
Energy generating assets		4,414			4,878
Constructions in progress		512,163			486,345
Machinery, plant and equipment		871,512			887,504
Total		1,743,091			1,737,319
Property, plant and equipment, gross
Land		23,569			23,579
Buildings		721,768			705,089
Other property, plant and equipment		236,390			234,238
Transport equipment		13,153			13,030
Supplies and accessories		26,551			26,101
Office equipment		12,794			11,607
Network and communication equipment		9,126			8,951
Mining assets		195,264			194,562
IT equipment		30,004			29,629
Energy generating assets		38,540			38,540
Constructions in progress		512,163			486,345
Machinery, plant and equipment		3,372,236			3,304,061
Total		5,191,558			5,075,732
Accumulated depreciation and value impairment of property, plant and equipment, total
Accumulated depreciation and impairment of buildings		(480,016	)		(465,423	)
Accumulated depreciation and impairment of other property, plant and equipment		(201,909	)		(198,820	)
Accumulated depreciation and impairment of transport equipment		(10,531	)		(10,150	)
Accumulated depreciation and impairment of supplies and accessories		(22,399	)		(21,918	)
Accumulated depreciation and impairment of office equipment		(11,423	)		(11,148	)
Accumulated depreciation and impairment of network and communication equipment		(7,944	)		(7,679	)
Accumulated depreciation and impairment of mining assets		(153,153	)		(147,510	)
Accumulated depreciation and impairment of IT equipment		(26,242	)		(25,546	)
Accumulated depreciation and impairment of energy generating assets		(34,126	)		(33,662	)
Accumulated depreciation and impairment of machinery, plant and equipment		(2,500,724	)		(2,416,557	)
Total		(3,448,467	)		(3,338,413	)

113 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

Description of classes of property, plant and equipment	As of June 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Property, plant and equipment, net
Pumps		27,568		28,184
Conveyor Belt		19,430		20,117
Crystallizer		21,167		22,145
Plant Equipment		174,297		173,335
Tanks		17,771		15,367
Filter		41,133		35,553
Electrical equipment/facilities		98,226		93,937
Other Property, Plant & Equipment		48,552		49,930
Site Closure		33,666		36,828
Piping		99,662		102,578
Well		213,638		226,347
Pond		37,714		41,906
Spare Parts (1)		38,688		41,277
Total		871,512		887,504

(1) The reconciliation of the spare parts provision as of June 30, 2021 and December 2020 is as follows:

Conciliation	As of June 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Opening balance		42,881		39,265
Increase in provision		7,989		3,616
Closing balance		50,870		42,881

114 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

16.2 Conciliation of changes in property, plant and equipment by type:

Reconciliation of changes in property, plant and equipment by class as of June 30, 2021 and December 31, 2020:

	Land			Buildings			Other property, plant and equipment			Transport equipment		Supplies and accessories			Equipment office			Network and communication equipment		Mining assets		IT equipment			Energy generating assets		Assets under construction			Machinery, plant and equipment			Property, plant and equipment
Reconciliation of changes in property, plant and equipment by class as of June  30, 2021, gross amount	ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$			ThUS$		ThUS$		ThUS$			ThUS$		ThUS$			ThUS$			ThUS$
Opening balance		23,579			705,089			234,238			13,030		26,101			11,607			8,951		194,562		29,629			38,540		486,345			3,304,061			5,075,732
Additions		-			-			172			-		-			5			21		-		239			-		166,261			4,389			171,087
Disposals		-			-			-			-		-			-			-		-		-			-		-			-			-
Increase (decrease) in foreign currency translation difference		(10	)		(24	)		(1	)		-		(2	)		(1	)		-		-		(1	)		-		-			(24	)		(63	)
Reclassifications		-			16,743			1,966			123		452			1,183			154		702		123			-		(85,038	)		68,540			4,948
Other increases (decreases)		-			(40	)		15			-		-			-			-		-		14			-		(55,405	)		(4,730	)		(60,146	)
Decreases for classification as held for sale		-			-			-			-		-			-			-		-		-			-		-			-			-
Total changes		(10	)		16,679			2,152			123		450			1,187			175		702		375			-		25,818			68,175			115,826
Closing balance		23,569			721,768			236,390			13,153		26,551			12,794			9,126		195,264		30,004			38,540		512,163			3,372,236			5,191,558

	Land		Buildings			Other property, plant and equipment			Transport equipment			Supplies and accessories			Equipment office			Network and communication equipment			Mining assets			IT equipment			Energy generating assets			Assets under construction		Machinery, plant and equipment			Property, plant and equipment
Reconciliation of changes in property, plant and equipment by class as of June  30, 2021, accumulated depreciation	ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$
Opening balance		-		(465,423	)		(198,820	)		(10,150	)		(21,918	)		(11,148	)		(7,679	)		(147,510	)		(25,546	)		(33,662	)		-		(2,416,557	)		(3,338,413	)
Changes
Disposals		-		-			-			-			-			-			-			-			-			-			-		-			-
Depreciation expense		-		(14,467	)		(3,947	)		(381	)		(544	)		(248	)		(218	)		(5,643	)		(737	)		(464	)		-		(72,875	)		(99,524	)
Impairment (3)		-		(336	)		(63	)		-			(13	)		(7	)		-			-			(7	)		-			-		(5,372	)		(5,798	)
Increase (decrease) in foreign currency translation difference		-		11			1			-			2			-			-			-			1			-			-		14			29
Reclassifications		-		160			919			-			74			(20	)		(47	)		-			47			-			-		(6,082	)		(4,949	)
Other increases (decreases) (1)		-		39			1			-			-			-			-			-			-			-			-		148			188
Decreases for classification as held for sale		-		-			-			-			-			-			-			-			-			-			-		-			-
Total changes		-		(14,593	)		(3,089	)		(381	)		(481	)		(275	)		(265	)		(5,643	)		(696	)		(464	)		-		(84,167	)		(110,054	)
Closing balance		-		(480,016	)		(201,909	)		(10,531	)		(22,399	)		(11,423	)		(7,944	)		(153,153	)		(26,242	)		(34,126	)		-		(2,500,724	)		(3,448,467	)

115 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

	Land			Buildings			Other property, plant and equipment			Transport equipment			Supplies and accessories			Equipment office			Network and communication equipment			Mining assets			IT equipment			Energy generating assets			Assets under construction			Machinery, plant and equipment			Property, plant and equipment
Reconciliation of changes in property, plant and equipment by class as of June  30, 2021, net amount	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Opening balance		23,579			239,666			35,418			2,880			4,183			459			1,272			47,052			4,083			4,878			486,345			887,504			1,737,319
Additions		-			-			172			-			-			5			21			-			239			-			166,261			4,389			171,087
Disposals		-			-			-			-			-			-			-			-			-			-			-			-			-
Depreciation expense		-			(14,467	)		(3,947	)		(381	)		(544	)		(248	)		(218	)		(5,643	)		(737	)		(464	)		-			(72,875	)		(99,524	)
Impairment (3)		-			(336	)		(63	)		-			(13	)		(7	)		-			-			(7	)		-			-			(5,372	)		(5,798	)
Increase (decrease) in foreign currency translation difference		(10	)		(13	)		-			-			-			(1	)		-			-			-			-			-			(10	)		(34	)
Reclassifications		-			16,903			2,885			123			526			1,163			107			702			170			-			(85,038	)		62,458			(1	)
Other increases (decreases) (1)		-			(1	)		16			-			-			-			-			-			14			-			(55,405	)		(4,582	)		(59,958	)
Decreases for classification as held for sale (2)		-			-			-			-			-			-			-			-			-			-			-			-			-
Total changes		(10	)		2,086			(937	)		(258	)		(31	)		912			(90	)		(4,941	)		(321	)		(464	)		25,818			(15,992	)		5,772
Closing balance		23,569			241,752			34,481			2,622			4,152			1,371			1,182			42,111			3,762			4,414			512,163			871,512			1,743,091

(1) The net balance of “Other Increases (Decreases)” corresponds to all those items that are reclassified to or from “Property, Plant and Equipment”, They can have the following origin: (i) work in progress which is expensed to profit or loss, forming part of operating costs or other expenses per function, as appropriate; (ii) the variation representing the purchase and use of materials and spare parts; (iii) projects corresponding mainly to exploration expenditures and ground studies that are reclassified to the item other non-current financial assets; (iv) software that is reclassified to “Intangibles (v) Provisions related to the investment plan and assets related to closing the site.

(2) The Company classifies as non-current held for sale property, plant and equipment (disposal group) that, at the closing date of the financial statements, is subject to a commitment for sale or where the sales process has been initiated and where the sale is expected to occur within twelve months of that date, is classified by the Company as non-current assets held for sale. These assets or disposal groups are valued at the lower of carrying amount or the estimated sales value less the costs to sell and stop being amortized from the moment they are classified as non-current assets held for sale.

(3) See note 22.5
 

116 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

	Land			Buildings		Other property, plant and equipment			Transport equipment		Supplies and accessories			Equipment office		Network and communication equipment			Mining assets		IT equipment			Energy generating assets		Assets under construction			Machinery, plant and equipment			Property, plant and equipment
Reconciliation of changes in property, plant and equipment by class as of December 31, 2020, gross amount	ThUS$			ThUS$		ThUS$			ThUS$		ThUS$			ThUS$		ThUS$			ThUS$		ThUS$			ThUS$		ThUS$			ThUS$			ThUS$
Opening balance		23,620			666,027		257,247			12,143		25,531			11,441		8,009			161,619		28,693			38,495		375,316			3,142,461			4,750,602
Additions		-			838		278			-		82			33		386			-		429			-		319,192			987			322,225
Disposals		-			-		(33,048	)		-		(1	)		-		-			-		-			-		-			(149	)		(33,198	)
Increase (decrease) in foreign currency translation difference		22			49		2			1		5			-		-			-		12			-		-			53			144
Reclassifications		-			32,179		9,940			886		488			133		558			32,943		548			45		(203,412	)		125,692			-
Other increases (decreases)		(27	)		5,996		(181	)		-		(4	)		-		(2	)		-		(53	)		-		(4,751	)		35,017			35,995
Decreases for classification as held for sale		(36	)		-		-			-		-			-		-			-		-			-		-			-			(36	)
Total changes		(41	)		39,062		(23,009	)		887		570			166		942			32,943		936			45		111,029			161,600			325,130
Closing balance		23,579			705,089		234,238			13,030		26,101			11,607		8,951			194,562		29,629			38,540		486,345			3,304,061			5,075,732

	Land		Buildings			Other property, plant and equipment			Transport equipment			Supplies and accessories			Equipment office			Network and communication equipment			Mining assets			IT equipment			Energy generating assets			Assets under construction		Machinery, plant and equipment			Property, plant and equipment
Reconciliation of changes in property, plant and equipment by class as of December 31, 2020, accumulated depreciation	ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$
Opening balance		-		(438,854	)		(224,602	)		(9,457	)		(20,952	)		(11,021	)		(7,346	)		(138,445	)		(24,334	)		(32,497	)		-		(2,273,188	)		(3,180,696	)
Changes
Disposals		-		-			33,048			-			1			-			-			-			-			-			-		148			33,197
Depreciation expense		-		(26,779	)		(7,284	)		(692	)		(966	)		(126	)		(335	)		(9,065	)		(1,242	)		(1,165	)		-		(134,230	)		(181,884	)
Impairment		-		(23	)		(21	)		-			-			-			-			-			(12	)		-			-		(9,507	)		(9,563	)
Increase (decrease) in foreign currency translation difference		-		(20	)		(2	)		(1	)		(4	)		(1	)		-			-			(10	)		-			-		(28	)		(66	)
Reclassifications		-		-			-			-			-			-			-			-			-			-			-		-			-
Other increases (decreases) (1)		-		253			41			-			3			-			2			-			52			-			-		248			599
Decreases for classification as held for sale		-		-			-			-			-			-			-			-			-			-			-		-			-
Total changes		-		(26,569	)		25,782			(693	)		(966	)		(127	)		(333	)		(9,065	)		(1,212	)		(1,165	)		-		(143,369	)		(157,717	)
Closing balance		-		(465,423	)		(198,820	)		(10,150	)		(21,918	)		(11,148	)		(7,679	)		(147,510	)		(25,546	)		(33,662	)		-		(2,416,557	)		(3,338,413	)

117 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

	Land			Buildings			Other property, plant and equipment			Transport equipment			Supplies and accessories			Equipment office			Network and communication equipment			Mining assets			IT equipment			Energy generating assets			Assets under construction			Machinery, plant and equipment			Property, plant and equipment
Reconciliation of changes in property, plant and equipment by class as of December 31, 2020, net amount	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Opening balance		23,620			227,173			32,645			2,686			4,579			420			663			23,174			4,359			5,998			375,316			869,273			1,569,906
Additions		-			838			278			-			82			33			386			-			429			-			319,192			987			322,225
Disposals		-			-			-			-			-			-			-			-			-			-			-			(1	)		(1	)
Depreciation expense		-			(26,779	)		(7,284	)		(692	)		(966	)		(126	)		(335	)		(9,065	)		(1,242	)		(1,165	)		-			(134,230	)		(181,884	)
Deterioration		-			(23	)		(21	)		-			-			-			-			-			(12	)		-			-			(9,507	)		(9,563	)
Increase (decrease) in foreign currency translation difference		22			29			-			-			1			(1	)		-			-			2			-			-			25			78
Reclassifications		-			32,179			9,940			886			488			133			558			32,943			548			45			(203,412	)		125,692			-
Other increases (decreases) (1)		(27	)		6,249			(140	)		-			(1	)		-			-			-			(1	)		-			(4,751	)		35,265			36,594
Decreases for classification as held for sale (2)		(36	)		-			-			-			-			-			-			-			-			-			-			-			(36	)
Total changes		(41	)		12,493			2,773			194			(396	)		39			609			23,878			(276	)		(1,120	)		111,029			18,231			167,413
Closing balance		23,579			239,666			35,418			2,880			4,183			459			1,272			47,052			4,083			4,878			486,345			887,504			1,737,319

(1) The net balance of “Other increases (Decreases)” corresponds to all those items that are reclassified to or from property, plant and equipment, They can have the following origin: (i) work in progress which is expensed to profit or loss, forming part of operating costs or other expenses per function, as appropriate;, (ii) the variation representing the purchase and use of materials and spare parts; (iii) projects corresponding mainly to exploration expenditures and ground studies that are reclassified to the item other non-current financial assets; (iv) software that is reclassified to “Intangibles”, (v) Provisions related to the investment plan and assets associated to closing the site.

(2) The Company classifies as non-current held for sale property, plant and equipment (disposal group) that, at the closing date of the financial statements, is subject to a commitment for sale or where the sales process has been initiated and where the sale is expected to occur within twelve months of that date, is classified by the Company as non-current assets held for sale. These assets or disposal groups are valued at the lower of carrying amount or the estimated sales value less the costs to sell and stop being amortized from the moment they are classified as non-current assets held for sale.

118 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

16.3   Detail of property, plant and equipment pledged as guarantee

There are no restrictions in title or guarantees for compliance with obligations that affect property, plant and equipment.

16.4   Cost of capitalized interest, property, plant and equipment

The cost of interest is recognized by applying an average or average weighted interest rate for all financing costs incurred by the Company to the final monthly balances for works underway and complies with the requirements of IAS 23.

Financing costs are not activated for periods that exceed the normal term for acquisition, construction or installation of the property; such is the case for delays, interruptions or temporary suspension of the project due to technical, financial or other problems that make it impossible to leave the property in usable conditions.

The rates and costs for capitalized interest of property, plant and equipment are detailed as follows:

	As of June 30, 2021			As of June 30, 2020
Costs of capitalized interest	ThUS$			ThUS$
Capitalized interest rate		4	%		4	%
Amount of interest cost capitalized		6,401			4,323

119 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Note 17 Other current and non-current non-financial assets

As of June 30, 2021, and December 31, 2020, the detail of “Other Current and Non-current Assets” is as follows:

	As of June 30, 2021		As of December 31, 2020
Other non-financial assets, current	ThUS$		ThUS$
Domestic Value Added Tax		19,457		18,107
Foreign Value Added Tax		9,286		7,785
Prepaid mining licenses		4,937		1,025
Prepaid insurance		1,716		10,307
Other prepayments		901		946
Refund of Value Added Tax to exporters		11,945		14,316
Other taxes		4,545		4,499
Other assets		868		414
Total		53,655		57,399

	As of June 30, 2021		As of December 31, 2020
Other non-financial assets, non-current	ThUS$		ThUS$
Exploration and evaluation expenses (1)		72,265		17,883
Guarantee deposits		691		731
Other assets		3,383		3,428
Total		76,339		22,042

(1) Reconciliation of changes in assets for exploration and mineral resource evaluation, by type.

Movements in assets for the exploration and evaluation of mineral resources as of June 30, 2021, and December 31, 2020:

	As of June 30, 2021		As of December 31, 2020
Conciliation	ThUS$		ThUS$
Opening balance		17,883		18,654
Change in assets for exploration and evaluation of mineral resources
Additions		-		-
Short term reclassifications		412		(526	)
Increase (decrease) due to transfers and other charges		53,970		(245	)
Total changes		54,382		(771	)
Total		72,265		17,883

As of the presentation date, no reevaluations of assets for exploration and assessment of mineral resources have been conducted.

120 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Mineral resource exploration and evaluation expenditure

Given the nature of operations of the Company and the type of exploration it undertakes, disbursements for exploration can be found in 4 stages: Execution, economically feasible, not economically feasible and in exploitation:

(a)            Execution: Disbursements for exploration and evaluation under implementation and therefore prior to determination of economic feasibility, are classified in accordance with Note 3.22.

For exploration purposes in Chile relating to caliche and brine exploration are ThUS$ 19,357 and ThUS$ 14,265 as of June 30, 2021 and December 31, 2020, respectively

For Australia (Mt Holland), total disbursements corresponding to construction in progress (which includes exploration disbursements) amount to ThUS$ 50,127 as of December 31, 2020. The investment decision mentioned in Note 1.8 has resulted in the reclassification of the total amount of explorations in construction in progress as part to economically feasible.

Disbursements for exploration and evaluation are presented in the Property, Plant and Equipment caption as part of construction in progress.

(b)            Economically feasible: Disbursements corresponding to caliche exploration, wherein the study concluded that its economic feasibility is viable, are classified under “Non-Current Assets in Other Non-current Non-Financial Assets”, The balance as of June 30, 2021, is ThUS$ 6,576 and as of December 31, 2020, it is ThUS$ 6,576.

At June 30, 2021, ThUS$ 4,543 corresponding to advanced metallic exploration are also presented under the heading "Other Non-Current Non-Financial Assets", and as of December 31, 2020, it is ThUS$ 4,296.

Total reimbursements relating to project Mount Holland in Australia, whose viability has already been proven and investment decision confirmed, are ThUS$ 54,134 as of June 30, 2021.

For the exploration of the Salar de Atacama, the associated assets correspond to wells that can be used both in monitoring and exploitation of the Salar, Therefore, once the studies are concluded, these are classified as “Non-current Assets” in “Properties, Plants and Equipment”, assigning them a technical useful life of 10 years.

(c)            Not economically feasible: Exploration and evaluation disbursements, once finalized and concluded to be not economically feasible, will be charged to profit and loss. As of June 30, 2021, and December 31, 2020 there were no disbursements for this concept.

(d)            In Exploitation: Caliche exploration disbursements that are found in this area are amortized based on the material exploited, the portion that is expected to be exploited in the following 12 months is presented as “Current Assets” in the “Inventories in process” and the remaining portion is classified as “Other Non-current Non-Financial Assets”.

The amount presented in “Inventories in Process” is ThUS$ 906 as of June 30, 2021 (ThUS$ 1,318 as of December 31, 2020), while in the item “Other Non-current Non-Financial Asset” is ThUS$ 7,011 as of June 30, 2021 (ThUS$ 7,011 as of December 31, 2020).

121 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

Note 18   Employee benefits

18.1   Provisions for employee benefits

	As of June 30, 2021		As of December 31, 2020
Classes of benefits and expenses by employee	ThUS$		ThUS$
Current
Profit sharing and bonuses		1,383		7,770
Performance bonds and operational targets		8,798		1,326
Total		10,181		9,096
Non-current
Profit sharing and bonuses		-		-
Severance indemnity payments		28,496		32,199
Total		28,496		32,199

18.2 Policies on defined benefit plan

This policy is applied to all benefits received for services provided by the Company's employees. This is divided as follows:

a) Short-term benefits for active employees are represented by salaries, social welfare benefits, paid time off, sickness and other types of leave, profit sharing and incentives and non-monetary benefits; e.g., healthcare service, housing, subsidized or free goods or services. These will be paid in a term which does not exceed twelve months. The Company maintains incentive programs for its employees, which are calculated based on the net result at the close of each period by applying a factor obtained from an evaluation based on their personal performance, the Company’s performance and other short-term and long-term indicators.

b) Staff severance indemnities are agreed and payable based on the final salary, calculated in accordance with each year of service to the Company, with certain maximum limits in respect of either the number of years or in monetary terms. In general, this benefit is payable when the employee or worker ceases to provide his/her services to the Company and there are a number of different circumstances through which a person can be eligible for it, as indicated in the respective agreements; e.g. retirement, dismissal, voluntary retirement, incapacity or disability, death, etc. See Note 18.3.

c) Obligations after employee retirement, described in Note 18.4.

d) Retention bonuses for a group of Company executives, described in Note 18.6.

122 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

18.3 Other long-term benefits

The actuarial assessment method has been used to calculate the Company’s obligations with respect to staff severance indemnities, which relate to defined benefit plans consisting of days of remuneration per year served at the time of retirement under conditions agreed in the respective agreements established between the Company and its employees.

Under this benefit plan, the Company retains the obligation to pay staff severance indemnities related to retirement, without establishing a separate fund with specific assets, which is referred to as not funded.

Benefit payment conditions

The staff severance indemnity benefit relates to remuneration days for years worked for the Company without a limit being imposed in regard of amount of salary or years of service. It applies when employees cease to work for the Company because they are made redundant or in the event of their death. This benefit is applicable up to a maximum age of 65 for men and 60 for women, which are the usual retirement ages according to the Chilean pensions system as established in Decree Law 3,500 of 1980.

Methodology

The determination of the defined benefit obligation is made under the requirements of IAS 19 “Employee benefits”.

18.4 Post-employment benefit obligations

Our subsidiary SQM NA, together with its employees established a pension plan until 2002 called the “SQM North America Retirement Income Plan”. This obligation is calculated measuring the expected future forecast staff severance indemnity obligation using a net salary gradual rate of restatements for inflation, mortality and turnover assumptions, discounting the resulting amounts at present value using the interest rate defined by the authorities.

Since 2003, SQM NA offers benefits related to pension plans based on the 401-K system to its employees, which do not generate obligations for the Company.

123 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

18.5 Staff severance indemnities

As of June 30, 2021, and December 31, 2020, severance indemnities calculated at the actuarial value are as follows:

	As of June 30, 2021			As of December 31, 2020
Staff severance indemnities	ThUS$			ThUS$
Opening balance		(32,199	)		(27,814	)
Current cost of service		(1,912	)		(3,804	)
Interest cost		(748	)		(1,486	)
Actuarial gain/loss		4,424			(2,826	)
Exchange rate difference		762			(1,513	)
Benefits paid during the year		1,177			5,244
Total		(28,496	)		(32,199	)

(a) Actuarial assumptions

The liability recorded for staff severance indemnity is valued at the actuarial value method, using the following actuarial assumptions:

Actuarial assumptions	As of June 30, 2021			As of December 31, 2020			Annual/Years
Mortality rate		RV - 2014			RV - 2014
Actual annual interest rate		5.25	%		3.65	%
Voluntary retirement rate:
Men		6.49	%		6.49	%		Annual
Women		6.49	%		6.49	%		Annual
Salary increase		3.00	%		3.00	%		Annual
Retirement age:
Men		65			65			Years
Women		60			60			Years

(b) Sensitivity analysis of assumptions

As of June 30, 2021, and December 31, 2020, the Company has conducted a sensitivity analysis of the main assumptions of the actuarial calculation, determining the following:

	Effect + 100 basis points			Effect - 100 basis points
Sensitivity analysis as of June 30, 2021	ThUS$			ThUS$
Discount rate		(1,781	)		2,004
Employee turnover rate		(234	)		261

	Effect + 100 basis points			Effect - 100 basis points
Sensitivity analysis as of December 31, 2020	ThUS$			ThUS$
Discount rate		(1,985	)		2,234
Employee turnover rate		(261	)		291

Sensitivity relates to an increase/decrease of 100 basis points.

124 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

18.6            Executive compensation plan

The Company currently has a compensation plan with the purpose of motivating the Company’s executives and encouraging them to remain with the Company, by granting payments based on the change in the price of SQM’s shares. There is a partial payment of the share benefit program in the event of termination of the contract for causes other than the resignation and application of Article 160 of the Labor Code.

(a) Plan characteristics

This compensation plan is related to the Company’s performance through the SQM Series B share price (Santiago Stock Exchange).

(b) Plan participants

The compensation plan considers 29 Company executives, who are entitled to this benefit, provided that they stay with the Company until a given date, recognizing on an accrual basis: a) a 2021 bonus, which will be made effective by paying 146,708 shares distributed between the four quarters of 2021, and b) a 2022 bonus for 42,032 shares, which will be made effective the first quarter of 2023.

(c) Compensation

The compensation payable to each executive is calculated by multiplying:

i) the average price of the series B shares on the Santiago Stock Exchange during the fourth quarter of 2020, in its US dollar equivalent (with a value of US$ 41.93 per share).

ii) By a number equal to the quantity of shares that have been individually assigned to each executive included in the plan.

This compensation plan was approved by the Company’s Board of Directors and its application started on September 30, 2020.

The plan that was in place on December 31, 2020 considered 177,905 and 188,740 shares, for 2021. The effects on the income statement are equivalent to an expense of ThUS$ 3,231 and ThUS$ 1,623 in the income statement for the periods ending June 30, 2021 and 2020.

Shares exercised up to June 30, 2021 were 80,757.

125 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Note 19   Provisions and other non-financial liabilities

19.1 Types of provisions

	As of June 30, 2021						As of December 31, 2020
Types of provisions	Current		Non-current		Total		Current		Non-current		Total
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Provision for legal complaints (1)		8,496		1,280		9,776		8,905		1,260		10,165
Provision for dismantling, restoration and rehabilitation cost (2)		-		57,131		57,131		-		61,265		61,265
Other provisions (3)		107,940		38		107,978		95,261		92		95,353
Total		116,436		58,449		174,885		104,166		62,617		166,783

(1) These provisions correspond to legal processes that are pending resolution or that have not yet been disbursed, these provisions are mainly related to litigation involving the subsidiaries located in Chile, Brazil and the United States (see note 21.1).

(2) The commitments related to Sernageomin have been incorporated through the issuance of the guarantee for the restoration of the place where the production sites are located.

(3) See Note 19.2

126 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

19.2         Description of other provisions

	As of June 30, 2021		As of December 31, 2020
Current provisions, other short-term provisions	ThUS$		ThUS$
Rent under Lease contract (1)		104,074		85,167
Provision for additional tax related to foreign loans		734		740
End of agreement bonus		1,656		8,159
Directors’ per diem allowance		1,043		698
Miscellaneous provisions		433		497
Total		107,940		95,261

(1) Payment Obligations for the lease contract with CORFO: These correspond to obligations assumed in the Lease Agreement. Our subsidiary SQM Salar holds exclusive rights to exploit the mineral resources in an area covering approximately 140,000 hectares of land in the Salar de Atacama in northern Chile, of which SQM Salar is only entitled to exploit the mineral resources in 81,920 hectares. These rights are owned by Corfo and leased to SQM Salar pursuant to the Lease Agreement. Corfo cannot unilaterally amend the Lease Agreement and the Project Agreement, and the rights to exploit the resources cannot be transferred. The Lease Agreement establishes that SQM Salar is responsible for making quarterly lease payments to Corfo according to specified percentages of the value of production of minerals extracted from the Salar de Atacama brines, maintaining Corfo’s rights over the Mining Exploitation Concessions and making annual payments to the Chilean government for such concession rights. The Lease Agreement was entered into in 1993 and expires on December 31, 2030. On January 17, 2018, SQM and CORFO reached an agreement to end an arbitration process directed by the arbitrator, Mr. Héctor Humeres Noguer, in case 1954-2014 of the Arbitration and Mediation Center of Santiago Chamber of Commerce and other cases related to it.

The agreement signed in January 2018, includes important amendments to the lease agreement and project agreement signed between CORFO and SQM in 1993. The main modifications became effective on April 10, 2018 and requires an increase in the lease payments by increasing the lease rates associated with the sale of the different products produced in the Salar de Atacama, including lithium carbonate, lithium hydroxide and potassium chloride. This agreement has been amended since it was signed and it is reasonable to expect that it will continue to be amended as mutually agreed by the parties.

Additionally, SQM Salar commits to contribute to research and development efforts, as well as to the communities in close proximity to the Salar de Atacama and provide a percentage of total annual sales of SQM Salar to regional development.

SQM Salar commits to contribute between US$10.8 million and US$18.9 million per year to research and development efforts, between US$10 to US$15 million per year to the communities in close proximity to the Salar de Atacama, and 1.7% of total annual sales of SQM Salar to regional development.

127 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

19.3        Other non-financial liabilities, Current

	As of June 30, 2021		As of December 31, 2020
Description of other liabilities	ThUS$		ThUS$
Tax withholdings		4,193		1,208
VAT payable		5,067		1,642
Guarantees received		2,637		2,636
Accrual for dividend		92,958		8,027
Monthly tax provisional payments		6,998		8,407
Deferred income		22,389		6,435
Withholdings from employees and salaries payable		5,275		5,017
Accrued vacations (1)		24,762		24,003
Other current liabilities		924		3,580
Total		165,203		60,955

(1) Vacation benefit (short-term benefits to employees, current) is in line with the provisions established in Chile’s Labor Code, which indicates that employees with more than a year of service will be entitled to annual vacation for a period of at least fifteen paid business days. The Company provides the benefit of two additional vacation days.

128 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

19.4 Changes in provisions

	Legal complaints			Provision for dismantling, restoration and rehabilitation cost			Others provisions			Total
Description of items that gave rise to variations  as of June 30, 2021	ThUS$			ThUS$			ThUS$			ThUS$
Total provisions, initial balance		10,165			61,265			95,353			166,783
Changes
Additional provisions		12			3,968			43,161			47,141
Provision used		(422	)		-			(30,536	)		(30,958	)
Increase(decrease) in foreign currency exchange		21			-			-			21
Others		-			(8,102	)		-			(8,102	)
Total Increase (decreases)		(389	)		(4,134	)		12,625			8,102
Total		9,776			57,131			107,978			174,885

	Legal complaints			Provision for dismantling, restoration and rehabilitation cost			Others provisions			Total
Description of items that gave rise to variations as of December 31, 2020	ThUS$			ThUS$			ThUS$			ThUS$
Total provisions, initial balance		14,924			33,238			97,093			145,255
Changes
Additional provisions		62,922			30,974			60,685			154,581
Provision used		(67,685	)		-			(59,939	)		(127,624	)
Increase(decrease) in foreign currency exchange		4			-			(2,486	)		(2,482	)
Others		-			(2,947	)		-			(2,947	)
Total Increase (decreases)		(4,759	)		28,027			(1,740	)		21,528
Total		10,165			61,265			95,353			166,783

129 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

Note 20 Disclosures on equity

The detail and movements in the funds of equity accounts are shown in the consolidated statement of changes in equity.

20.1 Capital management

The main object of capital management relative to the administration of the Company’s financial debt and equity is to ensure the regular conduct of operations and business continuity in the long term, with the constant intention of maintaining an adequate level of liquidity and in compliance with the financial safeguards established in the debt contracts in force. Within this framework, decisions are made in order to maximize the value of the company.

Capital management must comply with, among others, the limits contemplated in the Financing Policy approved by the Shareholders’ Meeting, which establish a maximum consolidated indebtedness level of 1.5 times the debt to equity ratio. This limit can be exceeded only if the Company’s management has first obtained express approval at an Extraordinary Shareholders’ Meeting.

The Company’s management controls capital management based on the following ratios:

Capital Management	As of June 30, 2021			As of December 31, 2020			Description (1)	Calculation (1)
Net Financial Debt (ThUS$)		(30,075	)		1,074,020		Financial Debt – Financial Resources	Other current Financial Liabilities + Other Non-Current Financial Liabilities– Cash and Cash Equivalents – Other Current Financial Assets – Hedging Assets, non-current
Liquidity		6.47			5.40		Current Assets divided by Current Liabilities	Total Current Assets / Total Current Liabilities
ROE		7.17	%		7.79	%	Profit for the year divided by Total Equity	Profit for the year / Equity
Adjusted EBITDA (ThUS$)		375,116			579,765		Adjusted EBITDA	Profit (loss) + Depreciation and Amortization Expenses adjustments + Finance Costs + Income Tax – Other income and Share of profit of associates and joint ventures + Other expenses by function – Finance income – Currency differences
EBITDA (ThUS$)		368,491			524,650		EBITDA	Profit (loss) + Depreciation and Amortization Expense adjustments + Finance Costs + Income Tax
ROA		11.49	%		9.83	%	Adjusted EBITDA – Depreciation divided by Total Assets net of financial resources less related parties’ investments	(Gross Profit – Administrative Expenses)/ (Total Assets – Cash and Cash Equivalents – Other Current Financial Assets – Other Non-Current Financial Assets – Equity accounted Investments) (LTM)
Indebtedness		(0.01	)		0.50		Net Financial Debt on Equity	Net Financial Debt  / Total Equity

The Company’s capital requirements change according to variables such as: working capital needs, new investment financing and dividends, among others. The SQM Group manages its capital structure and makes adjustments bases on the predominant economic conditions so as to mitigate the risks associated with adverse market conditions and take advantage of the opportunities there may be to improve the liquidity position of the SQM Group.

There have been no changes in the capital management objectives or policy within the years reported in this document, no breaches of external requirements of capital imposed have been recorded. There are no contractual capital investment commitments.

20.2 Operational restrictions and financial limits

Bond issuance contracts in the local market require the Company to maintain a Total Borrowing Ratio no higher than 1 for Series H, Series O and Series Q bonds, calculated over the last consecutive 12 months.

Capital management must ensure that the Borrowing Ratio remains below 1.0, with respect to the Series H, Series O and Series Q bonds. This ratio was redefined at the Bondholders' Meeting held in September 2020, as the result of dividing Net Financial Debt by the company's Total Equity. Previously it had been defined as Total Liabilities divided by Equity, and the limit for this ratio was 1.44, with a prepayment option for bondholders if this ratio rose above 1.2. As of June 30, 2021, this ratio was -0.01.

130 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

The financial restrictions with respect to the bonds issued by the Company for the periods ended June 30, 2021 and December 31, 2020 are as follows.

	Financial restrictions (member)
As of June 30, 2021	Financial restrictions (member)	Financial restrictions (member)	Financial restrictions (member)	Financial restrictions (member)
Instrument with restriction	Bonds	Bonds	Bonds	Bank loans
Reporting party or subsidiary restriction
Creditor	Bondholders	Bondholders	Bondholders	Scotiabank
Registration number	H	Q	O	PB 70M
Name of financial indicator or ratio (See definition in Note 20.1)	NFD/Equity	NFD/Equity	NFD/Equity	NFD/Equity
Measurement frequency	Quarterly	Quarterly	Quarterly	Quarterly
Restriction (Range, value and unit of measure)	Must be less than 1.00	Must be less than 1.00	Must be less than 1.00	Must be less than 1.00
Indicator or ratio determined by the company	-0,01	-0,01	-0,01	-0,01
Fulfilled YES/NO	yes	yes	yes	yes

	Financial restrictions (member)
As of December 31, 2020	Financial restrictions (member)	Financial restrictions (member)	Financial restrictions (member)	Financial restrictions (member)
Instrument with restriction	Bonds	Bonds	Bonds	Bank loans
Reporting party or subsidiary restriction
Creditor	Bondholders	Bondholders	Bondholders	Scotiabank
Registration number	H	Q	O	PB 70M
Name of financial indicator or ratio (See definition in Note 20.1)	NFD/Equity	NFD/Equity	NFD/Equity	Debt/Equity
Measurement frequency	Quarterly	Quarterly	Quarterly	Quarterly
Restriction (Range, value and unit of measure)	Must be less than 1.00	Must be less than 1.00	Must be less than 1.00	Must be less than 1.44
Indicator or ratio determined by the company	0.5	0.5	0.5	1.23
Fulfilled YES/NO	yes	yes	yes	yes

131 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

Bond issuance contracts in foreign markets require that the Company does not merge, or dispose of, or encumber all or a significant portion of its assets, unless all of the following conditions are met: (i) the legal successor is an entity constituted under the laws of Chile or the United States, which assumes all the obligations of the Company in a supplemental indenture, (ii) immediately after the merger or disposal or encumbrance there is no default by the issuer, and (iii) the issuer has provided a legal opinion indicating that the merger or disposal or encumbrance and the supplemental indenture comply with the requirements of the original indenture.

The Company is also committed to provide quarterly financial information.

The Company and its subsidiaries are complying with all the aforementioned limitations, restrictions and obligations.

20.3 Disclosures on preferred share capital

Issued share capital is divided into Series A shares and Series B shares. All such shares are nominative, have no par value and are fully issued, subscribed and paid.

Series B shares may not exceed 50% of the total issued, subscribed and paid-in shares of the Company and have a limited voting right, in that all of them can only elect one director of the Company, regardless of their equity interest and preferences:

(a) require the calling of an Ordinary or Extraordinary Shareholders' Meeting when so requested by Series B shareholders representing at least 5% of the issued shares thereof; and

(b) require the calling of an extraordinary meeting of the board of directors, without the president being able to qualify the need for such a request, when so requested by the director who has been elected by the shareholders of said Series B.

The limitation and preferences of Series B shares have a duration of 50 consecutive and continuous years as of June 3, 1993.

The Series A shares have the preference of being able to exclude the director elected by the Series B shareholders in the voting process in which the president of the board of directors and of the Company must be elected and which follows the one in which the tie that allows such exclusion resulted.

The preference of the Series A shares will have a term of 50 consecutive and continuous years as of June 3, 1993. The form of the titles of the shares, their issuance, exchange, disablement, loss, replacement, assignment and other circumstances thereof shall be governed by the provisions of Law No, 18,046 and its regulations.

At June 30, 2021, the Group hold 648 Series A shares treasury shares.

132 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

Detail of capital classes in shares:

As of June 30, 2021, the Company has placed share issues in the market as described in note 1.7:

	As of June 30, 2021			As of December 31, 2020
Type of capital in preferred shares		Series A	Series B		Series A	Series B
Description of type of capital in shares
Number of authorized shares		142,819,552	142,818,904		142,819,552	120,376,972
Number of fully subscribed and paid shares		142,819,552	142,818,904		142,819,552	120,376,972
Number of subscribed, partially paid shares		-	-		-	-
Increase (decrease) in the number of current shares		-	-		-	-
Number of outstanding shares		142,818,904	142,818,904		142,819,552	120,376,972
Number of shares owned by the Company or its subsidiaries or associates		648	-		-	-
Number of shares whose issuance is reserved due to the existence of options or agreements to dispose shares		-	-		-	-
Capital amount in shares ThUS$		134,750	1,443,274		134,750	342,636
Total number of subscribed shares		142,819,552	142,818,904		142,819,552	120,376,972

20.4 Disclosures on reserves in Equity

As of June 30, 2021, and December 31, 2020, this caption comprises the following:

	As of June 30, 2021			As of December 31, 2020
Disclosures on reserves in equity	ThUS$			ThUS$
Reserve for currency exchange conversion (1)		(9,524	)		(11,569	)
Reserve for cash flow hedges (2)		(10,433	)		4,491
Reserve for gains and losses from financial assets measured at fair value through other comprehensive income (3)		(12,080	)		6,872
Reserve for actuarial gains or losses in defined benefit plans (4)		(5,094	)		(8,680	)
Other reserves		12,912			16,318
Total		(24,219	)		7,432

(1) This balance reflects retained earnings for changes in the exchange rate when converting the financial statements of subsidiaries whose functional currency is different from the US dollar.

(2) The Company maintains, as hedge instruments, financial derivatives related to obligations with the public issued in UF and Chilean pesos, Changes from the fair value of derivatives designated and classified as hedges are recognized under this classification.

(3) This caption includes the fair value of equity investments that are not held for trading and that the group has irrevocably opted to recognize in this category upon initial recognition. In the event that such equity instruments are fully or partially disposed of, the proportional accumulated effect of accumulated fair value will be transferred to retained earnings.

(4) This caption reflects the effects of changes in actuarial assumptions, mainly changes in the discount rate.

133 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

Movements in other reserves and changes in interest were as follows:

	Foreign currency translation difference (1)		Reserve for cash flow hedges				Reserve for actuarial gains and losses from defined benefit plans				Reserve for gains (losses) from financial assets measured at fair value through other comprehensive income				Other reserves		Total reserves
Movements	Before taxes		Before taxes		Tax		Before taxes		Deferred taxes		Before taxes		Deferred taxes		Before taxes		Reserves		Deferred taxes		Total reserves
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Balances as of January 1, 2020	(25,745	)	9,879		(2,683	)	(11,482	)	1,992		392		(662	)	14,086		(12,870	)	(1,353	)	(14,223	)
Increase	15,732		-		-		3,858		430		11,885		(3,180	)	2,121		33,596		(2,750	)	30,846
Decrease	(1,556	)	(3,706	)	1,001		(2,903	)	(575	)	(2,101	)	538		111		(10,155	)	964		(9,191	)
As of December 31, 2020	(11,569	)	6,173		(1,682	)	(10,527	)	1,847		10,176		(3,304	)	16,318		10,571		(3,139	)	7,432
Increase	2,549		-		5,520		4,369		403		3,889		5,213		8		10,815		11,136		21,951
Decrease	(504	)	(20,444	)	-		(3	)	(1,183	)	(17,240	)	(1,050	)	(3,414	)	(41,605	)	(2,233	)	(43,838	)
Total other comprehensive income and other reserves	(9,524	)	(14,271	)	3,838		(6,161	)	1,067		(3,175	)	859		12,912		(20,219	)	5,764		(14,455	)
Reclassification to retained earnings	-		-		-		-		-		(13,375	)	3,611		-		(13,375	)	3,611		(9,764	)
Balances as of June 30, 2021	(9,524	)	(14,271	)	3,838		(6,161	)	1,067		(16,550	)	4,470		12,912		(33,594	)	9,375		(24,219	)

(1) See details on reserves for foreign currency translation differences on conversion in Note 25, letter b).

134 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

Other reserves

This caption corresponds to the legal reserves reported in the stand alone financial statements of the subsidiaries and associates that are mentioned below and that have been recognized in SQM’s equity through the application of the equity method.

	As of June 30, 2021			As of December 31, 2020
Subsidiary – Associate	ThUS$			ThUS$
SQM Iberian S.A.		9,464			9,464
SQM Europe NV		1,957			1,957
Soquimich European holding B.V.		828			828
Abu Dhabi Fertilizer Industries WWL		455			455
Kore Potash PLC		-			3,414
Vitas Fzco.		(236	)		(244	)
Total		12,468			15,874
Other derivative reserves of the acquisition of subsidiaries, which was already under Company ownership at the acquisition date (IAS 27R)
SQM Iberian S.A.		(1,677	)		(1,677	)
Orcoma Estudios SPA		2,121			2,121
Total Other reserves		12,912			16,318

20.5 Dividend policies

As required by Article 79 of the Chilean Companies Act, unless otherwise decided by unanimous vote of the holders of issued and subscribed shares, a publicly traded corporation must annually distribute a cash dividend to its shareholders, prorated based on their shares or the proportion established in the company’s bylaws if there are preferred shares, with at least 30% of our consolidated profit for each year.

Dividend policy for commercial year 2021

Company’s dividend policy for the 2021 business year was agreed upon by the Board of Directors on April 23, 2021. The current dividend policy establishes the following:

(a) Distribute and pay to the corresponding shareholders, a percentage of the net income that shall be determined per the following financial parameters as a final dividend:

(i) 100% of the profit for 2021 if all the following financial parameters are met: (a) “all current assets” divided by “all current liabilities” is equal to or greater than 2.5 times, and (b) the sum of “all current liabilities” and “all non-current liabilities”, less “cash equivalents”, less “other current financial assets”, all of the above divided by “total equity” in equal or less than 0.85 times.

(ii) 80% of the profit for 2021 if all the following financial parameters are met: (a) “all current assets” divided by “all current liabilities” is equal to or greater than 2.0 times, and (b) the sum of “all current liabilities” and “all non-current liabilities”, less “cash equivalents”, less “other current financial assets”, all of the above divided by “total equity” in equal or less than 0.95 times.

(iii) 60% of the profit for 2021 if all the following financial parameters are met: (a) “all current assets” divided by “all current liabilities” is equal to or greater than 1.5 times, and (b) the sum of “all current liabilities” and “all non-current liabilities”, less “cash equivalents”, less “other current financial assets”, all of the above divided by “total equity” in equal or less than 1.05 times.

(iv) If none of the foregoing financial parameters are met, the Company shall distribute and pay, as a final dividend, and in favor of the respective shareholders, 50% of the 2021 net income.

135 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

(b) Where possible, distribute and pay three provisional dividends during 2021, which will be charged to the final dividend indicated above. These provisional dividends will probably be paid in the month following that in which the interim financial statements for March, June and September 2021 are approved. Their amounts will be calculated as follows:

(i) For those provisional dividends with a charge to retained earnings reflected in the interim financial statements as of March 2021, the percentage corresponding to the financial parameters outlined in (a) above will be distributed.

(ii) For those provisional dividends with a charge to retained earnings reflected in the interim financial statements as of June 2021, the percentage corresponding to the financial parameters outlined in (a) above will be distributed, discounting the amount of the provisional dividends previously distributed during 2021.

(iii) For those provisional dividends with a charge to retained earnings reflected in the interim financial statements as of September 2021, the percentage corresponding to the financial parameters outlined in (a) above will be distributed, discounting the amount of the provisional dividends previously distributed during 2021.

(c) The amount of these provisional dividends could be higher or lower, provided that, according to the information available to the Company’s Board of Directors on the date when their distribution is agreed, this will not have a material negative effect on the Company’s capacity to carry out its investments, meet its obligations and generally comply with the investment and financing policy approved by the Ordinary Shareholders’ Meeting.

(d) For the ordinary meeting held in 2022, the Company’s Board of Directors will propose a definitive dividend in line with the percentage corresponding to the financial parameters outlined in (a) above, discounting the amount of the provisional dividends previously distributed during 2021.

(e) Any remaining amount from the net profits from 2021 can be retained and used to finance the Company’s own operations or one or more of its investment projects, notwithstanding a possible distribution of dividends charged to accumulated profit that might be approved by the shareholders’ meeting or the possible future capitalization of all or part of it.

(f) The payment of additional dividends is not being considered.

It must be expressly stated that this dividends policy details the intention of the Company’s Board of Directors and its fulfillment depends on the actual profits obtained, as well as on the results indicated by the projections the Company makes from time to time or on the existence of particular conditions, as appropriate.

20.6 Interim and provisional dividends

On May 19, 2021, the Board of Directors agreed to pay a provisional dividend equivalent to US$ 0.23797 per share with a charge to Company earnings for 2021. This amount will be paid in its equivalent in Chilean pesos, according to the observed U.S. dollar exchange rate published in the Official Gazette on May 28, 2021. This dividend will be paid to shareholders, in person or through their duly authorized representatives, starting at 9:00 a.m. on June 10, 2021. The shareholders who are registered in the Company’s Shareholders’ Registry five business days prior to the date of payment will be entitled to the dividend.

136 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

20.7 Special and provisional dividends

Dividends discounted from equity from January to June 2021 and 2020 were the following:

	As of June 30, 2021		As of December 31, 2020
Dividends	ThUS$		ThUS$
Ajay SQM Chile S.A. Dividends		-		556
Ajay SQM Chile S.A Payable Dividend		-		682
Soquimich Comercial S.A. Special Dividend		1,968		5,904
Soquimich Comercial S.A. Payable Dividend		2,475		2,976
Non-controlling interests		4,443		10,118
Interim dividend		67,972		44,986
Special dividend		-		100,000
Dividends payable		89,801		4,369
Owners of the Parent		157,773		149,355
Dividends discounted from equity for the period		162,216		159,473

137 

Notes to the Consolidated Interim Financial Statements
June 30, 2021

Note 21 Contingencies and restrictions

In accordance with note 19.1, the Company recognizes a provision for those lawsuits in which there is a probability that the judgments will be unfavorable to the Company. The Company is party to the following lawsuits and other relevant legal actions:

21.1 Lawsuits and other relevant events

(a) In August 1996, Nitratos Naturais do Chile Ltda. was fined by Fazenda do Estado de Sao Paulo for concluding activities without attaching the necessary documentation for submission to the competent authorities. The treasury of the State of Sao Paulo initiated legal actions to collect close to ThUS$ 492. Nitratos Naturais do Chile has presented a case to the federal court of Brazil to request a reduction in the fine, which is currently pending.

(b) In August 2004, Nitratos Naturais do Chile Ltda. was fined by Fazenda do Estado de Sao Paulo for failing to report trade activities. The treasury of the State of Sao Paulo initiated legal actions to collect close to ThUS$ 265. In 2018, the Court of Appeals agreed to a reduction in the fine and the Fazenda do Estado de Sao Paulo appealed to the Court of Brazil, and this appeal is still pending.

(c) In December 2010, the city of Pomona in the state of California, United States, filed a claim against SQM NA, which was heard before the US District Court for the Central District of California. The plaintiff requested the payment of expenses and other values related to treatment of groundwater to make it apt for consumption, which involved the extraction of perchlorate in this water, which allegedly came from Chilean fertilizers, for an approximate amount of MUS$ 36. On May 17, 2018, district judge Gary Klausner ruled in favor of SQM NA following the jury verdict. On February 6, 2020, the United States Court of Appeals for the Ninth Circuit demanded a retrial before the District Court, which has been postponed until August 31, 2021.

(d) In December 2010, the city of Lindsay in California, United States, filed a claim against SQM NA, which was heard before the US District Court for the Central District of California. The plaintiff requested the payment of expenses and other values related to treatment of groundwater to make it apt for consumption, which involved the extraction of perchlorate in this water, which allegedly came from Chilean fertilizers, the trial is currently suspended.

(e) In May 2014, a claim of compensation for damages was filed against SQM Nitratos for its alleged extracontractual liability derived from an explosion occurring in 2010 in the vicinity of the town of Baquedano, which caused the death of six workers. The portion of the claim that has not been settled in court is approximately MUS$ 1.2. On May 7, 2019, the 18th Civil Court of Santiago dismissed the claim. The case currently is in the Santiago Court of Appeals, which will make a determination on the motion for appeal and cassation brought about on behalf of the plaintiff.

(f) In January 2018, the company Transportes Buen Destino S.A. filed an arbitration claim under CAM rules against SQM Salar for controversies resulting from the execution of transport contracts for lithium brine and transport of salts. The amount of the claim is close to MUS$ 3. The arbitration is currently in the evidence stage.

(g) In September 2018, representatives Claudia Nathalie Mix Jiménez, Gael Fernanda Yeomans Araya, Camila Ruslay Rojas Valderrama filed a public right annulment suit against Corfo regarding the Salar de Atacama Project Contract signed between Corfo and SQM Salar. The Company has intervened as an independent third party. This discussion stage has concluded. For more information, see Note 21.4

138 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

(h) The Company and FPC Ingeniería y Construcción SpA were sued in May 2019 for compensation for damages resulting from alleged extracontractual liability derived from the traffic accident occurring on March 5, 2018, involving the overturn of a truck owned by FPC and the subsequent death of its two occupants, both employees of FPC. The four children of one of the deceased workers are the plaintiffs in this case and are seeking compensation for moral damages. The case is in the 19th Civil Court of Santiago and is in the evidence stage. The amount of the claim is close to MUS$ 1.2.

(i) On June 24, 2019, the company Servicios Logísticos Integrales Inversol SpA filed an arbitration claim under CAM rules against SQM Salar for controversies resulting from the execution of the salt transport contract. The trial is currently in the evidence stage. The amount of the claim is close to MUS$ 7.

(j) The company Arrigoni Ingeniería y Construcción S.A. filed a claim in November 2019 against SQM Salar in arbitration court under CAM rules, requesting the conclusion of the Works Contract known as “Expansion of Lithium Carbonate Plant Phase II.” The trial is currently in the evidence stage. The amount of the claim is close to MUS$ 14,6.

(k) The Company has initiated an arbitration process against the company Sierra Gorda S.C.M. due to controversies originating from the Mining, Royalties and Other Sales Contract dated December 16, 2011. Sierra Gorda S.C.M. has filed counterclaims against the Company. The process is in its evidence stage. The counterclaims filed against the Company amount to MUS$ 46.

(l) Through resolution dated April 14, 2020, the General Water Bureau (DGA) fined SQM Salar S.A. an amount of 4,180 UTM for the alleged violation of article 294 of the Water Code. This resolution was appealed for reconsideration as established in article 136 of the Water Code, and its resolution is currently pending.

(m) On January 7, 2021, the Company Ocaña y Vega Limited has requested arbitration against the Company to claim compensation for damages associated with the early termination of two construction contracts. The cost of arbitration is valued at approximately ThUS$ 377.

(n) On January 25, the worker, John Cubillos, sued the Company, SQM Nitratos, SQM Industrial, SQM Salar and SQM Potasio in a labor lawsuit as joint and severally liable. the Company, SQM Nitratos, SQM Industrial, SQM Salar y SQM Potasio, The amount of the claim is ThUS$ 732.

(o) On April 6, 2021, Empresa Eléctrica Cochrane SpA requested the constitution of arbitration to resolve a dispute in relation to electricity supply contracts signed on March 30, 2012, and February 1, 2013. As of August 18, 2021, Empresa Eléctrica Cochrane had not filed the claim.

The Company and its subsidiaries have been involved and will probably continue to be involved either as plaintiffs or defendants in certain judicial proceedings that have been and will be heard by the arbitration or ordinary courts of justice that will make the final decision. Those proceedings that are regulated by the appropriate legal regulations are intended to exercise or oppose certain actions or exceptions related to certain mining claims either granted or to be granted and that do not or will not affect in an essential manner the development of the Company and its subsidiaries.

Soquimich Comercial S.A. has been involved and will probably continue being involved either as plaintiff or defendant in certain judicial proceedings through which it intends to collect and receive the amounts owed, the total nominal value of which is approximately MUS$ 1.2.

The Company and its subsidiaries have made efforts and continues making efforts to obtain payment of certain amounts that are still owed to the Company due to its activities. Such amounts will continue to be required using judicial or non-judicial means by the plaintiffs, and the actions and exercise related to these are currently in full force and effect.

139 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

21.2 Environmental contingencies

The SMA issued a resolution dated November 28, 2016, rectified by a resolution dated December 23, 2016, which filed charges against SQM Salar for brine extraction in excess of authorized amounts, progressive impairment of the vitality of carob trees, providing incomplete information modification of follow-up plan variables, and other charges. SQM Salar S.A. presented a compliance program that was accepted by the SMA. On December 2019, the Environmental Court of Antofagasta rendered null. In October 2020, the SMA formulated new observations for the compliance program, which will enable the incorporation of improvements in line with the ruling of the Antofagasta Environmental Court, to then make a determination regarding approval or rejection. If a new compliance program is not approved by the SMA, or if approved and legally challenged and rendered null and void by the Chilean courts, the sanction process against SQM Salar could be resumed. This latter event may consider the application of fines up to MUS$9, temporary or permanent closure of facilities and in extreme circumstances, revocation of the respective environmental permit.

21.3 Tax Contingencies

SQM Salar has filed three tax claims against the SII for taxes levied between tax years 2012 and 2018 (business years 2011 to 2017). The SII has sought to broaden the application of the specific tax on mining activities to the extraction of lithium, a substance that is not concessionable by law. The amount associated with these processes totals US$ 90.4 million, which has been paid by SQM Salar. This amount is recorded under “Non-current tax assets” in the Consolidated Stateof the Company as of June 30, 2021 and December 31, 2020.

The non-current tax assets presented in the Company’s Interim Financial Statements as of June 30, 2021, US$ 90.4 million, corresponds to the three claims in the recently mentioned dispute. This amount can be broken down as follows: amount overcharged for US$ 18.9; potential specific tax for lithium amounting to US$ 48.6 million (minus effect on first category income tax) and interests associated with this tax for US$ 22.8 million.

The details of the claims can be found below:

(a) On August 26, 2016, a tax claim was filed with the Third Tax and Customs Court of the Metropolitan Region against tax assessments No. 169, 170, 171 and 172 for tax years 2012 to 2014. The amount in dispute is US$ 17.8 million, of which (i) US$ 11.5 million correspond to the contested tax (minus effect on first category income tax), and (ii) US$ 6.3 million correspond to interest and associated fines. On November 28, 2018, the Third Tax and Customs Court rejected the claim, and the case is currently in the Santiago Court of Appeals, based on the appeal filed by SQM Salar.

(b) On March 24, 2017, a tax claim was filed with the Third Tax and Customs Court of the Metropolitan Region against tax assessment No. 207 and resolution No. 156, both issued by the SII, for tax years 2015 to 2016. The amount in dispute is US$ 8.6 million, of which (i) US$ 1.3 million correspond to amounts assessed in excess, (ii) US$ 6.9 million correspond to the contested tax (minus effect on first category income tax), and (ii) US$ 0.5 million correspond to interest and fines. On November 28, 2018, the Third Tax and Customs Court rejected the corresponding claim, and the case is currently in the Santiago Court of Appeals, based on the appeal filed by SQM Salar.

(c) On July 15, 2021, SQM Salar filed a public right annulment suit and tax claim with the First Tax and Customs Court of the Metropolitan Region against tax assessments No. 65 and 66 for the 2017 and 2018 tax years. The amount in dispute is US$ 63.9 million, of which (i) US$ 17.7 million correspond to overcharged amounts, (ii) US$ 30.2 million correspond to the contested tax (minus effect on first category income tax), and (ii) US$ 16.1 million correspond to interest and fines. This case is under deliberation.

The SII has not issued an assessment claiming differences in the specific tax on mining activities filed for tax years 2019 onward. If the SII uses criteria similar to that used in previous years, it may issue an assessment in the future for this period. The Company estimates a potential assessment of US$ 46 million (minus effect on first category income tax) by the SII, without considering interests and fines.

To date, the Company has recorded no effect corresponding to this tax on its profit and loss.

140 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

21.4 Contingencies regarding to the Contracts with Corfo

On September 6, 2018, representatives Claudia Nathalie Mix Jiménez, Gael Fernanda Yeomans Araya and Camila Ruslay Rojas Valderrama and the Poder Ciudadano political party filed an annulment suit against Corfo, which requested that the Contract for the Salar de Atacama Project between Corfo and the Company, SQM Potasio and SQM Salar be annulled. The Companies have taken part of the process as interested third parties.

In the event that the annulment claim is approved for the Salar de Atacama Project Contract, SQM Salar may be prevented from exploit the mining claims in the Salar de Atacama that it has leased from Corfo.

21.5 Contingencies associated with conflicts between shareholders of the Abu Dhabi Fertilizer Industries Company

Due to differences between shareholders of the company Abu Dhabi Fertilizer Industries Company, diverse lawsuits have arisen that may result in claims against SQM Corporation N.V. and by this company against the other shareholders. These disputes may materially affect the value of the investment of the Company in Abu Dhabi Fertilizer Industries Company. At this time, it is not possible to quantify the amounts of these claims.

21.6 Restricted or pledged cash

The subsidiary Isapre Norte Grande Ltda., in compliance with the provisions established by the Chilean Superintendence of Healthcare, which regulates the running of pension-related health institutions, maintains a guarantee in financial instruments delivered in deposits, custody and administration to Banco de Chile.

This guarantee, according to the regulations issued by the Chilean Superintendence of Healthcare is equivalent to the total amount owed to its members and medical providers, Banco de Chile reports the present value of the guarantee to the Chilean Superintendence of Healthcare and Isapre Norte Grande Ltda on a daily basis. As of June 30, 2021, the guarantee amounts to ThUS$ 691.

21.7 Securities obtained from third parties

The main security received (exceeding ThUS$ 100) from third parties to guarantee Soquimich Comercial S.A. their compliance with obligations in contracts of commercial mandates for the distribution and sale of fertilizers amounted to ThUS$ 9,942 and ThUS$ 10,114 on June 30, 2021 and December 31, 2020 respectively; which is detailed as follows:

Grantor	Relationship	As of June 30, 2021 ThUS$		As of December 31, 2020 ThUS$
Ferosor Agrícola S.A.	Unrelated Third party		5,496		5,626
Tattersall Agroinsumos S.A.	Unrelated Third party		2,000		2,000
Covepa SPA	Unrelated Third party		687		703
Johannes Epple Davanzo	Unrelated Third party		307		314
Hortofrutícola La Serena	Unrelated Third party		303		303
Com. Serv Johannes Epple Davanz	Unrelated Third party		398		408
Juan Luis Gaete Chesta	Unrelated Third party		186		190
Arena Fertilizantes y Semillas	Unrelated Third party		206		211
Vicente Oyarce Castro	Unrelated Third party		229		229
Bernardo Guzmán Schmidt	Unrelated Third party		130		130
Total			9,942		10,114

21.8 Indirect guarantees

As of June 30, 2021, there are no indirect guarantees.

141 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

Note 22 Gains (losses) from operating activities in the statement of income of expenses, included according to their nature

22.1 Revenue from operating activities customer activities

The Group derives revenues from the sale of goods (which are recognized at one point in time) and from the provision of services (which are recognized over time) and are distributed among the following geographical areas and main product and service lines:

(a) Geographic areas:

For the period ended June 30, 2021
Geographic areas	Specialty plant nutrition		Iodine and derivatives		Lithium and derivatives		Potassium		Industrial chemicals		Other		Total ThUS$
Chile		48,645		5,188		301		19,558		1,923		11,773		87,388
Latin America and the Caribbean		43,663		7,259		2,907		25,877		2,935		264		82,905
Europe		95,824		81,574		27,562		23,269		8,502		706		237,437
North America		145,445		53,010		21,849		29,989		14,878		1,194		266,365
Asia and Others		77,655		72,485		245,654		20,560		25,708		315		442,377
Total		411,232		219,516		298,273		119,253		53,946		14,252		1,116,472

For the period ended as of June 30, 2020
Geographic areas	Specialty plant nutrition		Iodine and derivatives		Lithium and derivatives		Potassium		Industrial chemicals		Other		Total ThUS$
Chile		30,933		675		200		10,063		1,689		9,668		53,228
Latin America and the Caribbean		30,835		5,249		802		14,290		2,185		192		53,553
Europa		85,358		77,978		25,854		17,610		5,761		522		213,083
North America		135,673		51,039		12,827		19,321		11,821		785		231,466
Asia and Others		64,997		53,679		111,532		16,201		52,249		522		299,180
Total		347,796		188,620		151,215		77,485		73,705		11,689		850,510

142 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

(b) Main product and service lines:

	For the period from January to June of the year				For the period from April to June of the year
	2021		2020		2021		2020
Products and Services	ThUS$		ThUS$		ThUS$		ThUS$
Specialty plant nutrition		411,232		347,796		217,153		182,718
- Sodium Nitrates		11,673		9,898		7,486		4,814
-Potassium nitrate and sodium potassium nitrate		249,181		219,929		133,396		115,775
- Specialty Blends		98,488		69,384		52,415		37,992
- Other specialty fertilizers		51,890		48,585		23,856		24,137
Iodine and derivatives		219,516		188,620		123,896		90,869
Lithium and derivatives		298,273		151,215		163,037		85,871
Potassium		119,253		77,485		58,957		34,154
Industrial chemicals		53,946		73,705		17,204		59,057
Other		14,252		11,689		7,748		5,804
- Services		1,793		1,529		896		754
- Income from property leases		875		711		447		338
- Income from subleases on right-of-use assets		76		110		38		55
- Commodities		5,678		4,698		3,342		2,814
-Other ordinary income of Commercial Offices		5,830		4,641		3,025		1,843
Total		1,116,472		850,510		587,995		458,473

143 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

22.2 Cost of sales

Cost of sales broken down by nature of expense

	For the period from January to June of the year						For the period from April to June of the year
	2021			2020			2021			2020
Nature of expense	ThUS$			ThUS$			ThUS$			ThUS$
Raw materials and consumables used		(149,273	)		(140,679	)		(76,891	)		(72,276	)
Classes of employee benefit expenses		(103,261	)		(76,696	)		(52,604	)		(38,177	)
Depreciation expense		(99,505	)		(95,190	)		(49,579	)		(48,806	)
Depreciation of Right-of-use Assets (contracts under IFRS 16)		(2,933	)		(2,414	)		(1,526	)		(923	)
Amortization expense		(2,655	)		(2,211	)		(1,600	)		(1,020	)
Investment plan expenses		(5,999	)		(8,827	)		(2,252	)		(3,193	)
Provision for materials, spare parts and supplies		(576	)		(2,350	)		26			(3,488	)
Contractors		(71,648	)		(62,209	)		(37,584	)		(34,439	)
Operating leases		(35,915	)		(29,076	)		(19,011	)		(15,959	)
Mining concessions		(3,555	)		(3,484	)		(2,022	)		(1,440	)
Operational transportation		(32,204	)		(29,290	)		(19,404	)		(16,185	)
Freight / product transportation costs		(29,436	)		(24,276	)		(13,272	)		(13,401	)
Purchase of products from third parties		(130,617	)		(102,810	)		(73,559	)		(49,907	)
Insurance		(9,433	)		(7,194	)		(4,672	)		(3,338	)
CORFO rights and other agreements		(40,172	)		(41,036	)		(23,286	)		(17,850	)
Export costs		(69,947	)		(65,767	)		(45,797	)		(41,833	)
Expenses related to variable lease payments  (contracts under IFRS 16)		(380	)		(548	)		(234	)		(274	)
Variation in gross inventory		(925	)		91,135			25,403			33,076
Variation in inventory provision		3,523			955			329			965
Other		(9,014	)		(12,951	)		(4,556	)		(2,158	)
Total		(793,925	)		(614,918	)		(402,091	)		(330,626	)

144 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

22.3 Other income

	For the period from January to June of the year				For the period from April to June of the year
	2021		2020		2021		2020
Other income	ThUS$		ThUS$		ThUS$		ThUS$
Discounts obtained from suppliers		427		319		227		145
Fines charged to suppliers		26		223		25		101
Taxes recovered		216		88		-		76
Amounts recovered from insurance		1,317		1,037		663		37
Overestimate of provisions for third-party obligations		75		42		44		(351	)
Sale of assets classified as properties, plant and equipment		1,127		637		718		185
Sale of mining rights		8,219		3,907		8,219		3,847
Easements, pipelines and roads		2,952		18		1,900		-
Refunds for mining patents and notarial expenses		68		14		68		14
Others		312		187		107		175
Total		14,739		6,472		11,971		4,229

22.4 Administrative expenses

	For the period from January to June of the year						For the period from April to June of the year
	2021			2020			2021			2020
Administrative expenses	ThUS$			ThUS$			ThUS$			ThUS$
Employee benefit expenses		(27,979	)		(25,823	)		(14,826	)		(13,144	)
Marketing costs		(1,645	)		(1,598	)		(1,069	)		(894	)
Amortization expenses		(58	)		(38	)		(31	)		(25	)
Entertainment expenses		(2,007	)		(2,084	)		(1,679	)		(1,221	)
Advisory services		(7,262	)		(5,949	)		(4,403	)		(3,181	)
Lease of buildings and facilities		(1,027	)		(1,885	)		(872	)		(1,543	)
Insurance		(2,059	)		(1,574	)		(1,138	)		(967	)
Office expenses		(3,045	)		(3,039	)		(1,122	)		(1,928	)
Contractors		(2,397	)		(2,049	)		(1,421	)		(175	)
Depreciation of Right-of-use Assets (contracts under IFRS 16)		(1,283	)		(917	)		(627	)		(326	)
Other expenses		(5,121	)		(3,962	)		(2,060	)		(980	)
Total		(53,883	)		(48,918	)		(29,248	)		(24,384	)

145 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

22.5 Other expenses

	For the period from January to June of the year						For the period from April to June of the year
	2021			2020			2021			2020
Other expenses	ThUS$			ThUS$			ThUS$			ThUS$
Depreciation and amortization expense
Depreciation of assets not in use		(19	)		(24	)		(9	)		(13	)
Subtotal		(19	)		(24	)		(9	)		(13	)
Impairment losses (reversals of impairment losses) recognized in profit for the year
Properties, plant and equipment		(5,798	)		-			(8,706	)		-
Intangible assets other than goodwill		(48	)		(523	)		(48	)		(523	)
Goodwill		-			(140	)		-			(140	)
Subtotal		(5,846	)		(663	)		(8,754	)		(663	)
Other expenses, by nature
Legal expenses		(783	)		(3,274	)		(551	)		(2,333	)
VAT and other unrecoverable taxes		(410	)		(67	)		(214	)		148
Fines paid		(760	)		(210	)		(356	)		(51	)
Investment plan expenses		-			(478	)		-			(100	)
Exploration expenses		(3,373	)		(2,277	)		(1,897	)		(1,170	)
Contributions and donations		(3,066	)		(3,987	)		(1,593	)		(2,946	)
Other operating expenses		(303	)		(1,088	)		(88	)		(412	)
Subtotal		(8,695	)		(11,381	)		(4,699	)		(6,864	)
Total		(14,560	)		(12,068	)		(13,462	)		(7,540	)

22.6 Other losses

	For the period from January to June of the year						For the period from April to June of the year
	2021			2020			2021			2020
Other income	ThUS$			ThUS$			ThUS$			ThUS$
Adjust previous year application method of participation		(63	)		(25	)		(5	)		(240	)
Impairment of interests in associates		(4,839	)		(5,624	)		(4,839	)		(6,085	)
Others		37			(171	)		(26	)		(195	)
Total		(4,865	)		(5,820	)		(4,870	)		(6,520	)

146 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

22.7 (Impairment) /reversion of value of financial assets impairment losses

	For the period from January to June of the year					For the period from April to June of the year
	2021			2020		2021			2020
Description	ThUS$			ThUS$		ThUS$			ThUS$
(Impairment) /reversion of value of financial assets impairment losses (See Note 13.2)		(644	)		1,889		(1,884	)		119
Totals		(644	)		1,889		(1,884	)		119

22.8 Summary of expenses by nature

The following summary considers notes 22.2, 22.4 and 22.5

	For the period from January to June of the year						For the period from April to June of the year
	2021			2020			2021			2020
Expenses by nature	ThUS$			ThUS$			ThUS$			ThUS$
Raw materials and consumables		(149,273	)		(140,679	)		(76,891	)		(72,276	)
Classes of Employee Benefit Expenses		(131,240	)		(102,519	)		(67,430	)		(51,321	)
Depreciation expense		(99,524	)		(95,214	)		(49,588	)		(48,819	)
Depreciation of Right-of-use Assets		(4,216	)		(3,331	)		(2,153	)		(1,249	)
Impairment of Properties, plant and equipment, intangible and Goodwill		(5,846	)		(663	)		(8,754	)		(663	)
Amortization expense		(2,713	)		(2,249	)		(1,631	)		(1,045	)
Legal expenses		(783	)		(3,274	)		(551	)		(2,333	)
Investment plan expenses		(5,999	)		(9,305	)		(2,252	)		(3,293	)
Exploration expenses		(3,373	)		(2,277	)		(1,897	)		(1,170	)
Provision for materials, spare parts and supplies		(576	)		(2,350	)		26			(3,488	)
Contractors		(74,045	)		(64,258	)		(39,005	)		(34,614	)
Operational leases		(36,942	)		(30,961	)		(19,883	)		(17,502	)
Mining concessions		(3,555	)		(3,484	)		(2,022	)		(1,440	)
Operational transportation		(32,204	)		(29,290	)		(19,404	)		(16,185	)
Freight and product transportationcosts		(29,436	)		(24,276	)		(13,272	)		(13,401	)
Purchase of products from third parties		(130,617	)		(102,810	)		(73,559	)		(49,907	)
CORFO rights y other agreements		(40,172	)		(41,036	)		(23,286	)		(17,850	)
Export costs		(69,947	)		(65,767	)		(45,797	)		(41,833	)
Expenses related to variable lease payments  (contracts under IFRS 16)		(380	)		(548	)		(234	)		(274	)
Insurance		(11,492	)		(8,768	)		(5,810	)		(4,305	)
Consultant and advisor services		(7,262	)		(5,949	)		(4,403	)		(3,181	)
Variation in gross inventory		(925	)		91,135			25,403			33,076
Variation in inventory provision		3,523			955			329			965
Other		(25,371	)		(28,986	)		(12,737	)		(10,442	)
Total expenses by nature		(862,368	)		(675,904	)		(444,801	)		(362,550	)

147 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

22.9 Finance expenses

	For the period from January to June of the year						For the period from April to June of the year
	2021			2020			2021			2020
Finance expenses	ThUS$			ThUS$			ThUS$			ThUS$
Interest expense from bank borrowings and overdrafts		(1,242	)		(1,567	)		(621	)		(640	)
Interest expense from bonds		(41,697	)		(44,578	)		(20,794	)		(21,624	)
Interest expense from loans		(557	)		(1,020	)		(310	)		(466	)
Reverse capitalized interest expenses		6,401			4,323			3,496			2,094
Financial expenses for restoration and rehabilitation provisions		(869	)		(415	)		(503	)		(176	)
Interest on lease agreement		(720	)		(618	)		(367	)		(277	)
Other finance costs		(649	)		(482	)		(315	)		(202	)
Total		(39,333	)		(44,357	)		(19,414	)		(21,291	)

22.10 Finance income

	For the period from January to June of the year				For the period from April to June of the year
	2021		2020		2021		2020
Finance income	ThUS$		ThUS$		ThUS$		ThUS$
Interest from term deposits		1,444		7,318		795		2,727
Interest from marketable securities		24		1,937		12		588
Interest from maintenance of minimum bank balance in current account		2		14		-		6
Other finance income		389		835		265		221
Other finance interest		27		215		16		16
Total		1,886		10,319		1,088		3,558

148 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Note 23     Reportable segments

23.1       Reportable segments

(a) General information:

The amount of each item presented in each operating segment is equal to that reported to the highest authority that makes decisions regarding the operation, in order to decide on the allocation of resources to the defined segments and to assess its performance.

These operating segments mentioned are consistent with the way the Company is managed and how results will be reported by the Company. These segments reflect separate operating results that are regularly reviewed by the executive responsible for operational decisions in order to make decisions about the resources to be allocated to the segment and assess its performance (See Note 23.2).

The performance of each segment is measured based on net income and revenues. Inter-segment sales are made using terms and conditions at current market rates.

(b) Factors used to identify segments on which a report should be presented:

The segments covered in the report are strategic business units that offer different products and services. These are managed separately because each business requires different technology and marketing strategies.

(c) Description of the types of products and services from which each reportable segment obtains its income from ordinary activities

The operating segments, which obtain income from ordinary activities, generate expenses and have its operating results reviewed on a regular basis by the highest authority who makes decisions regarding operations, relate to the following groups of products:

(i) Specialty plant nutrients

(ii) Iodine and its derivatives

(iii) Lithium and its derivatives

(iv) Industrial chemicals

(v) Potassium

(vi) Other products and services

(d) Description of income sources for all the other segments

Information regarding assets, liabilities, profits and expenses that cannot be assigned to the segments indicated above, due to the nature of production processes, is included under the "Unallocated amounts” category of the disclosed information.

149 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

(e) Description of the nature of the differences between measurements of results of reportable segments and the result of the entity before the expense or income tax expense of incomes and discontinued operations

The information reported in the segments is extracted from the Company’s consolidated financial statements and therefore there is no need to prepare reconciliations between the data mentioned above and those reported in the respective segments, according to what is stated in paragraph 28 of IFRS 8, "Operating Segments".

For the allocation of inventory valuation costs, we identify the direct expenses (can be directly allocated to products) and the common expenses (belong to coproduction processes, for example common leaching expenses for production of Iodine and Nitrates), Direct costs are directly allocated to the product and the common costs are distributed according to percentages that consider different variables in their determination, such as margins, rotation of inventories, revenue, production and etc.

The allocation of other common costs that are not included in the inventory valuation process, but go straight to the cost of sales, use similar criteria: the costs associated with a product or sales in particular are assigned to that particular product or sales, and the common costs associated with different products or business lines are allocated according to the sales.

(f) Description of the nature of the differences between measurements of assets of reportable segments and the Company´s assets

Assets are not shown classified by segments, as this information is not readily available, some of these assets are not separable by the type of activity by which they are affected since this information is not used by management in decision-making with respect to resources to be allocated to each defined segment. All assets are disclosed in the "unallocated amounts" category.

(g) Description of the nature of the differences between measurements of liabilities of reportable segments and the Company’s liabilities

Liabilities are not shown classified by segments, as this information is not readily available, some of these liabilities are not separable by the type of activity by which they are affected, since this information is not used by management in decision-making regarding resources to be allocated to each defined segment. All liabilities are disclosed in the "unallocated amounts" category.

150 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

23.2            Reportable segment disclosures: 

	Specialty plant nutrients			Iodine and its derivatives			Lithium and its derivatives			Industrial chemicals			Potassium			Other products and services			Reportable segments			Operating segments			Unallocated amounts			Total as of June 30, 2021
Operating segment items as of June 30, 2021	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Revenue		411,232			219,516			298,273			53,946			119,253			14,252			1,116,472			1,116,472			-			1,116,472
Revenues from transactions with other operating segments of the same entity		-			-			-			-			-			-			-			-			-			-
Revenues from external customers and transactions with other operating segments of the same entity		411,232			219,516			298,273			53,946			119,253			14,252			1,116,472			1,116,472			-			1,116,472
Costs of sales		(309,356	)		(122,480	)		(205,397	)		(44,401	)		(99,671	)		(12,620	)		(793,925	)		(793,925	)		-			(793,925	)
Administrative expenses		-			-			-			-			-			-			-			-			(53,883	)		(53,883	)
Finance expense		-			-			-			-			-			-			-			-			(39,333	)		(39,333	)
Depreciation and amortization expense		(27,675	)		(19,729	)		(33,707	)		(7,121	)		(16,827	)		(1,394	)		(106,453	)		(106,453	)		-			(106,453	)
The entity’s interest in the profit or loss of associates and joint ventures accounted for by the equity method		-			-			-			-			-			-			-			-			5,561			5,561
Income (loss) before taxes		101,876			97,036			92,876			9,545			19,582			1,632			322,547			322,547			(99,842	)		222,705
Income tax expense		-			-			-			-			-			-			-			-			(62,080	)		(62,080	)
Net income (loss)		101,876			97,036			92,876			9,545			19,582			1,632			322,547			322,547			(161,922	)		160,625
Assets		-			-			-			-			-			-			-			-			6,017,237			6,017,237
Equity-accounted investees		-			-			-			-			-			-			-			-			53,880			53,880
Incorporation of non-current assets other than financial instruments, deferred tax assets, net defined benefit assets and rights arising from insurance contracts		-			-			-			-			-			-			-			-			(17,423	)		(17,423	)
Non-current asset increases		-			-			-			-			-			-			-			-			-			-
Liabilities		-			-			-			-			-			-			-			-			2,777,275			2,777,275
Impairment loss recognized in profit or loss																				-						(644	)		(644	)
Reversal of impairment losses recognized in profit or loss for the period		-			-			-			-			-			-			-			-			(5,846	)		(5,846	)
Cash flows from (used in) operating activities		-			-			-			-			-			-			-			-			231,902			231,902
Cash flows from (used in) investing activities		-			-			-			-			-			-			-			-			(502,459	)		(502,459	)
Cash flows from (used in) financing activities		-			-			-			-			-			-			-			-			1,012,332			1,012,332

151 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

	Specialty plant nutrients			Iodine and its derivatives			Lithium and its derivatives			Industrial chemicals			Potassium			Other products and services			Reportable segments			Operating segments			Unallocated amounts			Total as of June 30, 2020
Operating segment items as of June 30, 2020	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Revenue		347,796			188,620			151,215			73,705			77,485			11,689			850,510			850,510			-			850,510
Revenues from transactions with other operating segments of the same entity		-			-			-			-			-			-			-			-			-			-
Revenues from external customers and transactions with other operating segments of the same entity		347,796			188,620			151,215			73,705			77,485			11,689			850,510			850,510			-			850,510
Costs of sales		(267,766	)		(97,080	)		(114,173	)		(53,184	)		(72,076	)		(10,639	)		(614,918	)		(614,918	)		-			(614,918	)
Administrative expenses		-			-			-			-			-			-			-			-			(48,918	)		(48,918	)
Finance expense		-			-			-			-			-			-			-			-			(44,357	)		(44,357	)
Depreciation and amortization expense		(28,553	)		(21,309	)		(26,616	)		(7,376	)		(15,599	)		(1,341	)		(100,794	)		(100,794	)		-			(100,794	)
The entity’s interest in the profit or loss of associates and joint ventures accounted for by the equity method		-			-			-			-			-			-			-			-			6,393			6,393
Income tax expense, continuing operations		80,030			91,540			37,042			20,521			5,409			1,050			235,592			235,592			(92,837	)		142,755
Income tax expense		-			-			-			-			-			-			-			-			(46,066	)		(46,066	)
Net income (loss)		80,030			91,540			37,042			20,521			5,409			1,050			235,592			235,592			(138,902	)		96,689
Assets		-			-			-			-			-			-			-			-			4,742,403			4,742,403
Equity-accounted investees		-			-			-			-			-			-			-			-			71,561			71,561
Incorporation of non-current assets other than financial instruments, deferred tax assets, net defined benefit assets and rights arising from insurance contracts		-			-			-			-			-			-			-			-			27,555			27,555
Liabilities		-			-			-			-			-			-			-			-			2,622,737			2,622,737
Impairment loss recognized in profit or loss		-			-			-			-			-			-			-			-			1,889			1,889
Reversal of impairment losses recognized in profit or loss for the period		-			-			-			-			-			-			-			-			(663	)		(663	)
Cash flows from (used in) operating activities		-			-			-			-			-			-			-			-			126,986			126,986
Cash flows from (used in) investing activities		-			-			-			-			-			-			-			-			(155,933	)		(155,933	)
Cash flows from (used in) financing activities		-			-			-			-			-			-			-			-			22,906			22,906

152 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

23.3            Statement of comprehensive income classified by reportable segments based on groups of products

	Specialty plant nutrients			Iodine and its derivatives			Lithium and its derivatives			Industrial chemicals			Potassium			Other products and services			Corporate Unit			Total segments and Corporate unit
Items in the statement of comprehensive income as of June 30, 2021	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Revenue		411,232			219,516			298,273			53,946			119,253			14,252			-			1,116,472
Costs of sales		(309,356	)		(122,480	)		(205,397	)		(44,401	)		(99,671	)		(12,620	)		-			(793,925	)
Gross profit		101,876			97,036			92,876			9,545			19,582			1,632			-			322,547
Other incomes by function		-			-			-			-			-			-			14,739			14,739
Administrative expenses		-			-			-			-			-			-			(53,883	)		(53,883	)
Other expenses by function		-			-			-			-			-			-			(14,560	)		(14,560	)
Impairment of gains and review of impairment losses (impairment losses) determined in accordance with IFRS 9		-			-			-			-			-			-			(644	)		(644	)
Other gains (losses)		-			-			-			-			-			-			(4,865	)		(4,865	)
Financial income		-			-			-			-			-			-			1,886			1,886
Financial costs		-			-			-			-			-			-			(39,333	)		(39,333	)
interest in the profit or loss of associates and joint ventures accounted for by the equity method		-			-			-			-			-			-			5,561			5,561
Exchange differences		-			-			-			-			-			-			(8,743	)		(8,743	)
Profit (loss) before taxes		101,876			97,036			92,876			9,545			19,582			1,632			(99,842	)		222,705
Income tax expense		-			-			-			-			-			-			(62,080	)		(62,080	)
Profit (loss) net		101,876			97,036			92,876			9,545			19,582			1,632			(161,922	)		160,625

153 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

	Specialty plant nutrients			Iodine and its derivatives			Lithium and its derivatives			Industrial chemicals			Potassium			Other products and services			Corporate Unit			Total segments and Corporate unit
Items in the statement of comprehensive income as of June 30, 2020	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Revenue		347,797			188,619			151,215			73,705			77,485			11,689			-			850,510
Cost of sales		(267,719	)		(97,064	)		(115,021	)		(53,108	)		(71,376	)		(10,630	)		-			(614,918	)
Gross profit		80,078			91,555			36,194			20,597			6,109			1,059			-			235,592
Other incomes by function		-			-			-			-			-			-			6,472			6,472
Administrative expenses		-			-			-			-			-			-			(48,918	)		(48,918	)
Other expenses by function		-			-			-			-			-			-			(12,068	)		(12,068	)
Impairment of gains and review of impairment losses (impairment losses) determined in accordance with IFRS 9		-			-			-			-			-			-			1,889			1,889
Other gains (losses)		-			-			-			-			-			-			(5,820	)		(5,820	)
Financial income		-			-			-			-			-			-			10,319			10,319
Financial costs		-			-			-			-			-			-			(44,357	)		(44,357	)
interest in the profit or loss of associates and joint ventures accounted for by the equity method		-			-			-			-			-			-			6,393			6,393
Exchange differences		-			-			-			-			-			-			(6,747	)		(6,747	)
Profit (loss) before taxes		80,078			91,555			36,194			20,597			6,109			1,059			(92,837	)		142,755
Income tax expense		-			-			-			-			-			-			(46,066	)		(46,066	)
Profit (loss) from continuing operations		80,078			91,555			36,194			20,597			6,109			1,059			(138,903	)		96,689

154 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

23.4 Disclosures on geographical areas

As indicated in paragraph 33 of IFRS 8, the entity discloses geographical information on its revenue from operating activities with external customers and from non-current assets that are not financial instruments, deferred income tax assets, assets related to post-employment benefits or rights derived from insurance contracts.

23.5 Disclosures on main customers

With respect to the degree of dependency of the Company on its customers, in accordance with paragraph 34 of IFRS 8, the Company has no external customers who individually represent 10% or more of its revenue.

155 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

23.6 Segments by geographical areas

	Chile		Latin America and the Caribbean		Europe		North America		Asia and others		Total
Items as of June 30, 2021	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Revenue		87,388		82,905		237,437		266,365		442,377		1,116,472
Investment accounted for under the equity method		-		-		14,554		15,868		23,458		53,880
Intangible assets other than goodwill		94,285		531		542		2,042		78,772		176,172
Goodwill		23,065		-		18,901		-		-		41,966
Property, plant and equipment, net		1,700,121		617		12,009		3,452		26,892		1,743,091
Right-of-use assets		31,910		2,080		2,234		1,636		57		37,917
Other non-current assets		19,139		18		7		3,028		54,147		76,339
Non-current assets		1,868,520		3,246		48,247		26,026		183,326		2,129,365

	Chile		Latin America and the Caribbean		Europe		North America		Asia and others		Total
Items as of June 30, 2020	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Revenue		53,228		53,553		213,083		231,466		299,180		850,510
Investment accounted for under the equity method		-		-		55,555		485		15,521		71,561
Intangible assets other than goodwill		105,877		540		1,133		2,461		77,014		187,025
Goodwill		22,255		86		11,531		724		-		34,596
Property, plant and equipment, net		1,579,258		524		3,750		3,418		42,701		1,629,651
Right-of-use assets		25,878		2,516		2,623		1,930		85		33,032
Other non-current assets		19,148		25		6		-		-		19,179
Non-current assets		1,752,416		3,691		74,598		9,018		135,321		1,975,044

156 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Note 24 Effect of fluctuations in foreign currency exchange rates

(a) Foreign currency exchange differences recognized in profit or loss and other comprehensive income:

	As of June 30, 2021			As of June 30, 2020
Foreign currency exchange differences recognized in profit or loss and other comprehensive income	ThUS$			ThUS$
Conversion foreign exchange gains (losses) recognized in the result of the year		(8,743	)		(6,747	)
Conversion foreign exchange reserves
Conversion foreign exchange reserves attributable to the owners of the controlling entity		2,045			(1,406	)
Conversion foreign exchange reserves attributable to the non-controlling entity		85			319
Total		2,130			(1,087	)

(b) Reserves for foreign currency exchange differences:

As of June 30, 2021, and 2020, are detailed as follows:

	As of June 30, 2021			As of June 30, 2020
Details	ThUS$			ThUS$
Changes in equity generated by the equity method value through conversion:
Comercial Hydro S.A.		1,004			1,004
SQMC Internacional Ltda.		(9	)		(9	)
Proinsa Ltda.		(10	)		(10	)
Comercial Agrorama Ltda.		6			121
Isapre Norte Grande Ltda.		(30	)		(95	)
Almacenes y Depósitos Ltda.		272			120
Sacal S.A.		(3	)		(3	)
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.		(16	)		(29	)
Agrorama S.A.		177			534
Doktor Tarsa		-			(13,811	)
SQM Vitas Fzco		(3,503	)		(3,721	)
Ajay Europe		(1,036	)		(1,431	)
SQM Eastmed Turkey		-			(234	)
Doctochem		-			(5	)
Coromandel SQM India		-			(431	)
SQM Italia SRL		-			(234	)
SQM Oceanía Pty Ltd.		(579	)		(579	)
SQM Indonesia S.A.		(124	)		(124	)
Abu Dhabi Fertillizers Industries WWL.		372			372
SQM Vitas Holland		99			(192	)
SQM Thailand Limited		(68	)		(68	)
SQM Europe		(1,983	)		(1,983	)
SQM Australia Pty Ltd.		(4,035	)		(4,006	)
Pavoni & C. Spa		22			(178	)
Terra Tarsa BV		-			(96	)
Plantacote NV		-			(15	)
Doktolab Tarim Arastirma San.		-			(85	)
Kore Potash PLC (a)		-			(1,883	)
SQM Colombia SAS		(80	)		(80	)
Total		(9,524	)		(27,151	)

157 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

(c) Functional and presentation currency

The functional currency of these companies corresponds to the currency of the country of origin of each entity, and its presentation currency is the dollar.

(d) Reasons to use one presentation currency and a different functional currency

-      A relevant portion of the revenues of these subsidiaries are associated with the local currency.

-      The cost structure of these companies is affected by the local currency.

158 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

Note 25     Disclosures on the effects of fluctuations in foreign currency exchange rates

a) Assets held in foreign currency subject to fluctuations in exchange rates are detailed as follows:

			As of June 30, 2021		As of December 31, 2020
Class of Asset	Currency		ThUS$		ThUS$
Cash and cash equivalents		USD		1,177,528		454,402
Cash and cash equivalents		ARS		-		-
Cash and cash equivalents		CLP		13,496		7,190
Cash and cash equivalents		CNY		14,275		11,597
Cash and cash equivalents		EUR		4,586		17,144
Cash and cash equivalents		GBP		3		19
Cash and cash equivalents		AUD		24,463		1,411
Cash and cash equivalents		INR		-		6
Cash and cash equivalents		MXN		1,616		1,378
Cash and cash equivalents		PEN		6		3
Cash and cash equivalents		AED		595		-
Cash and cash equivalents		JPY		1,813		1,646
Cash and cash equivalents		ZAR		4,137		14,286
Cash and cash equivalents		KRW		331		16
Cash and cash equivalents		IDR		3		3
Cash and cash equivalents		PLN		1		1
Subtotal cash and cash equivalents				1,242,853		509,102
Other current financial assets		USD		555,807		145,893
Other current financial assets		CLP		153,646		202,176
Subtotal other current financial assets				709,453		348,069
Other current non-financial assets		USD		15,010		20,645
Other current non-financial assets		AUD		605		224
Other current non-financial assets		CLF		39		53
Other current non-financial assets		CLP		27,995		27,837
Other current non-financial assets		CNY		832		1,661
Other current non-financial assets		EUR		571		1,531
Other current non-financial assets		COP		103		70
Other current non-financial assets		MXN		6,183		4,488
Other current non-financial assets		THB		16		70
Other current non-financial assets		JPY		131		157
Other current non-financial assets		ZAR		2,123		646
Other current non-financial assets		SEK		47		17
Subtotal other non-financial current assets				53,655		57,399
Trade and other receivables		USD		268,019		230,214
Trade and other receivables		PEN		1		1
Trade and other receivables		BRL		24		23
Trade and other receivables		CLF		532		545
Trade and other receivables		CLP		46,304		47,133
Trade and other receivables		CNY		64,286		22,882
Trade and other receivables		EUR		40,656		22,868
Trade and other receivables		GBP		721		682
Trade and other receivables		MXN		445		355
Trade and other receivables		AED		707		533
Trade and other receivables		THB		-		1,167
Trade and other receivables		JPY		24,967		23,010
Trade and other receivables		AUD		730		589
Trade and other receivables		ZAR		4,395		12,504
Trade and other receivables		COP		1,416		2,675
Trade and other receivables		SEK		-		25
Subtotal trade and other receivables				453,203		365,206
Receivables from related parties		USD		51,338		61,379
Receivables from related parties		EUR		2,625		1,222
Receivables from related parties		AUD		575		-
Subtotal receivables from related parties				54,538		62,601

159 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

			As of June 30, 2021		As of December 31, 2020
Class of assets	Currency		ThUS$		ThUS$
Current inventories		USD		1,095,626		1,093,028
Subtotal Current Inventories				1,095,626		1,093,028
Current tax assets		USD		143,334		128,529
Current tax assets		CLP		-		3,015
Current tax assets		EUR		776		218
Current tax assets		MXN		4,551		-
Current tax assets		PEN		418		4
Current tax assets		ZAR		3		26
Current tax assets		COP		309		417
Current tax assets		THB		580		15
Subtotal current tax assets				149,971		132,224
Non-current assets or groups of assets classified as held for sale		USD		637		1,629
Subtotal Non-current assets or groups of assets classified as held for sale				637		1,629
Total current assets				3,759,936		2,569,258
Other non-current financial assets		USD		26,056		51,828
Other non-current financial assets		CLP		20		20
Other non-current financial assets		JPY		71		77
Subtotal Other non-current financial assets				26,147		51,925
Other non-current non-financial assets		USD		75,556		21,236
Other non-current non-financial assets		BRL		18		17
Other non-current non-financial assets		KRW		13		-
Other non-current non-financial assets		EUR		7		7
Other non-current non-financial assets		CLP		745		782
Subtotal Other non-current non-financial assets				76,339		22,042
Other receivables, non-current		USD		9,988		10,061
Other receivables, non-current		CLF		148		152
Other receivables, non-current		MXN		145		102
Other receivables, non-current		CLP		1,144		850
Subtotal Other receivables, non-current				11,425		11,165
Investments classified using the equity method of accounting		USD		20,649		23,417
Investments classified using the equity method of accounting		TRY		-		792
Investments classified using the equity method of accounting		AED		22,773		47,774
Investments classified using the equity method of accounting		EUR		10,458		11,082
Investments classified using the equity method of accounting		INR		-		1,304
Investments classified using the equity method of accounting		THB		-		1,624
Subtotal Investments classified using the equity method of accounting				53,880		85,993
Intangible assets other than goodwill		USD		175,309		176,282
Intangible assets other than goodwill		MXN		-		1,025
Intangible assets other than goodwill		CLP		166		182
Intangible assets other than goodwill		EUR		483		696
Intangible assets other than goodwill		CNY		184		222
Intangible assets other than goodwill		KRW		30		-
Subtotal intangible assets other than goodwill				176,172		178,407
Purchases goodwill, gross		USD		34,438		34,438
Purchases goodwill, gross		EUR		7,528		7,528
Subtotal Purchases goodwill, gross				41,966		41,966
Property, plant and equipment		USD		1,725,554		1,719,358
Property, plant and equipment		CLP		3,271		3,237
Property, plant and equipment		EUR		10,489		10,954
Property, plant and equipment		AED		856		923
Property, plant and equipment		BRL		111		111
Property, plant and equipment		MXN		2,577		2,494
Property, plant and equipment		COP		112		120
Property, plant and equipment		KRW		121		122
Subtotal property, plant and equipment				1,743,091		1,737,319
Right-of-use assets		USD		33,445		25,238
Right-of-use assets		EUR		2,234		2,428
Right-of-use assets		AED		158		60
Right-of-use assets		MXN		2,080		2,298
Subtotal Right-of-use assets				37,917		30,024
Non-current tax assets		USD		90,364		90,364
Subtotal non-current tax assets				90,364		90,364
Total non-current assets				2,257,301		2,249,205
Total assets				6,017,237		4,818,463

160 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

			As of June 30, 2021						As of December 31, 2020
			Up to 90 days		More than 90 days to 1 year		Total		Up to 90 days		More than 90 days to 1 year		Total
Class of liability	Currency		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Current liabilities
Other current financial liabilities		USD		17,101		4,232		21,333		43,218		4,676		47,894
Other current financial liabilities		CLF		20,487		317		20,804		20,732		329		21,061
Subtotal other current financial liabilities				37,588		4,549		42,137		63,950		5,005		68,955
Lease liabilities, current		USD		-		4,737		4,737		-		4,750		4,750
Lease liabilities, current		UF		-		2,229		2,229		-		-		-
Lease liabilities, current		MXN		-		425		425		-		416		416
Lease liabilities, current		EUR		-		379		379		-		362		362
Subtotal Lease liabilities, current				-		7,770		7,770		-		5,528		5,528
Trade and other payables		USD		90,058		-		90,058		83,425		-		83,425
Trade and other payables		CLF		452		-		452		123		-		123
Trade and other payables		BRL		5		-		5		9		-		9
Trade and other payables		THB		2		-		2		30		-		30
Trade and other payables		CLP		84,264		-		84,264		73,857		-		73,857
Trade and other payables		CNY		-		-		-		1,323		-		1,323
Trade and other payables		EUR		36,876		-		36,876		40,280		-		40,280
Trade and other payables		GBP		19		-		19		18		-		18
Trade and other payables		INR		1		-		1		1		-		1
Trade and other payables		MXN		481		-		481		584		-		584
Trade and other payables		PEN		2		-		2		5		-		5
Trade and other payables		AUD		12,900		-		12,900		2,935		-		2,935
Trade and other payables		ZAR		875		-		875		1,168		-		1,168
Trade and other payables		JPY		-		1,183		1,183		-		-		-
Trade and other payables		COP		171		-		171		175		-		175
Subtotal trade and other payables				226,106		1,183		227,289		203,933		-		203,933
Trade payables due to related parties, current		USD		-		-		-		-		282		282
Trade payables due to related parties, current		AUD		-		-		-		324		-		324
Subtotal Trade payables due to related parties, current				-		-		-		324		282		606
Other current provisions		USD		11,693		104,583		116,276		103,252		698		103,950
Other current provisions		CLP		-		160		160		216		-		216
Subtotal other current provisions				11,693		104,743		116,436		103,468		698		104,166

161 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

			As of June 30, 2021						As of December 31, 2020
			Up to90 days		91 days to 1 year		Total		Up to90 days		91 days to 1 year		Total
Class of liability	Currency		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Current tax liabilities		USD		-		11,108		11,108		-		20,981		20,981
Current tax liabilities		CLP		-		-		-		-		61		61
Current tax liabilities		EUR		-		1,154		1,154		-		642		642
Current tax liabilities		MXN		-		40		40		-		959		959
Subtotal current tax liabilities				-		12,302				12,302		22,643		22,643
Provisions for employee benefits, current		USD		7,518		2,487		10,005		2,981		6,011		8,992
Provisions for employee benefits, current		AUD		125		-		125		58		-		58
Provisions for employee benefits, current		CLP		-		-		-		3		-		3
Provisions for employee benefits, current		MXN		40		11		51		43		-		43
Subtotal Provisions for employee benefits, current				7,683		2,498		10,181		3,085		6,011		9,096
Other current non-financial liabilities		USD		144,727		8,662		153,389		51,995		397		52,392
Other current non-financial liabilities		BRL		2		-		2		2		-		2
Other current non-financial liabilities		CLP		5,935		3,957		9,892		6,264		792		7,056
Other current non-financial liabilities		CNY		76		1		77		60		-		60
Other current non-financial liabilities		EUR		1,193		290		1,483		913		119		1,032
Other current non-financial liabilities		MXN		140		0		140		121		53		174
Other current non-financial liabilities		JPY		29		13		42		52		-		52
Other current non-financial liabilities		PEN		70		-		70		70		-		70
Other current non-financial liabilities		COP		28		41		69		-		-		-
Other current non-financial liabilities		ARS		39		-		39		-		117		117
Subtotal other current non-financial liabilities				152,239		12,964		165,203		59,477		1,478		60,955
Total current liabilities				435,309		146,009		581,318		434,237		41,645		475,882

162 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

			As of June 30, 2021
			Over 1 year to 2 years		Over 2 years to 3 years		Over 3 years to 4 years		Over 4 years to 5 years		Over 5 years		Total
Class of liability	Currency		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Non-current liabilities
Other non-current financial liabilities		USD		-		388,389		248,881		-		838,853		1,476,123
Other non-current financial liabilities		CLF		-		-		-		-		422,370		422,370
Subtotal Other non-current financial liabilities				-		388,389		248,881		-		1,261,223		1,898,493
Non-current lease liabilities		USD		-		7,839		-		5,408		-		13,247
Non-current lease liabilities		UF		-		-		-		14,453		-		14,453
Non-current lease liabilities		MXN		-		-		-		1,999		-		1,999
Non-current lease liabilities		JPY		-		-		-		1,749		-		1,749
Subtotal non-current lease liabilities				-		7,839		-		23,609		-		31,448
Non-current Trade and other payables		USD		-		11,767		-		-		-		11,767
Subtotal Non-current Trade and other payables				-		11,767		-		-		-		11,767
Other non-current provisions		USD		-		28,324		-		-		30,125		58,449
Subtotal Other non-current provisions				-		28,324		-		-		30,125		58,449
Deferred tax liabilities		USD		-		919		-		-		166,385		167,304
Subtotal Deferred tax liabilities				-		919		-		-		166,385		167,304
Provisions for employee benefits, non-current		USD		28,041		-		-		-		-		28,041
Provisions for employee benefits, non-current		CLP		455		-		-		-		-		455
Subtotal Provisions for employee benefits, non-current				28,496		-		-		-		-		28,496
Total non-current liabilities				28,496		437,238		248,881		23,609		1,457,733		2,195,957
Total liabilities														2,777,275

163 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

			As of December 31, 2020
			Over 1 year to 2 years		Over 2 years to 3 years		Over 3 years to 4 years		Over 4 years to 5 years		Over 5 years		Total
Class of liability	Currency		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Non-current liabilities
Other non-current financial liabilities		USD		-		312,730		69,376		248,664		838,399		1,469,169
Other non-current financial liabilities		CLF		-		-		-		-		430,344		430,344
Subtotal Other non-current financial liabilities				-		312,730		69,376		248,664		1,268,743		1,899,513
Non-current lease liabilities		USD		1,977		-		-		-		4,158		6,135
Non-current lease liabilities		UF		15,258		-		-		-		-		15,258
Non-current lease liabilities		MXN		2,189		-		-		-		-		2,189
Non-current lease liabilities		JPY		1,964		-		-		-		-		1,964
Subtotal non-current lease liabilities				21,388		-		-		-		4,158		25,546
Non-current Trade and other payables		USD		-		4,027		-		-		-		4,027
Subtotal Non-current Trade and other payables				-		4,027		-		-		-		4,027
Other non-current provisions		USD		-		36,391		-		-		26,226		62,617
Subtotal Other non-current provisions				-		36,391		-		-		26,226		62,617
Deferred tax liabilities		USD		-		919		-		-		155,182		156,101
Subtotal Deferred tax liabilities				-		919		-		-		155,182		156,101
Provisions for employee benefits, non-current		USD		31,585		-		-		-		-		31,585
Provisions for employee benefits, non-current		CLP		610		-		-		-		-		610
Provisions for employee benefits, non-current		JPY		4		-		-		-		-		4
Subtotal Provisions for employee benefits, non-current				32,199		-		-		-		-		32,199
Total non-current liabilities				53,587		354,067		69,376		248,664		1,454,309		2,180,003
Total liabilities														2,655,885

Effects of changes in foreign currency exchange rates on the statement of net income and other comprehensive income.

	For the period from January to June of the year
	2021			2020
Foreign currency exchange rate changes	ThUS$			ThUS$
Loss in foreign currency		(8,743	)		(6,747	)
Foreign currency translation reserve (*)		2,130			(1,087	)
Total		(6,613	)		(7,834	)

The average and closing exchange rate for foreign currency is disclosed in Note 3.3

164 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

Note 26      Income tax and deferred taxes

Tax receivables as of June 30, 2021 and December 31, 2020, are as follows:

26.1            Current and non-current tax assets

(a)            Current

	As of June 30, 2021		As of December 31, 2020
Current tax assets	ThUS$		ThUS$
Monthly provisional income tax payments, Chilean companies		12,636		37,123
Monthly provisional income tax payments, foreign companies		1,744		1,265
Corporate tax credits (1)		524		1,566
1st category tax absorbed by tax loss (2)		-		2,322
Taxes in recovery process		135,067		89,948
Total		149,971		132,224

(b) Non-current

	As of June 30, 2021		As of December 31, 2020
Non-current tax assets	ThUS$		ThUS$
Monthly provisional income tax payments, Chilean companies compensated by the specific tax on mining activity (Lithium)		6,398		6,398
Specific tax on mining activities (IEAM) paid by Lithium (on consignment)		83,966		83,966
Total		90,364		90,364

(1) These credits are available for Companies and are related to corporate tax payments in April of the following year. These credits include, among others, credits for training expenses (SENCE), credits for acquisition of fixed assets, donations and credits in Chile for taxes paid abroad.

(2) This concept corresponds to the absorption of the tax losses determined by the company at the end of the year, which must be attributed to the dividends received during the year.

165 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

26.2            Current tax liabilities

	As of June 30, 2021		As of December 31, 2020
Current tax liabilities	ThUS$		ThUS$
1st Category income tax		1,173		14,736
Foreign company income tax		11,129		7,838
Article 21 single tax		-		69
Total		12,302		22,643

Income tax is calculated based on the profit or loss for tax purposes that is applied to the effective tax rate applicable in Chile. As established by Law No. 20,780 is 27%.

The royalty is determined by applying the taxable rate to the net operating income obtained, according to the chart in force. The Company currently provisioned 5% for mining royalties that involve operations in the Salar de Atacama and 5.12% for caliche extraction operations.

The income tax rate for the main countries where the Company operates is presented below:

	Income tax			Income tax
Country	2021			2020
Spain		25	%		25	%
Belgium		25	%		25	%
Mexico		30	%		30	%
United States		21% + 3.36	%		21% + 3.36	%
South Africa		28	%		28	%

166 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

26.3             Income tax and deferred taxes

(a) Deferred tax assets and liabilities as of June 30, 2021

	Net liability position
	Assets		Liabilities
Description of deferred tax assets and liabilities as of June 30, 2021		ThUS$		ThUS$
Unrealized loss		80,451		-
Property, plant and equipment and capitalized interest		-		(186,310	)
Restoration and rehabilitation provision		6,335		-
Manufacturing expenses		-		(123,077	)
Staff severance indemnities, unemployment insurance		-		(7,948	)
Vacation accrual		6,349		-
Inventory provision		21,410		-
Materials provision		10,735		-
Derivative financial instruments		-		-
Employee benefits		115		-
Research and development expenses		-		(3,660	)
Bad debt provision		3,339		-
Provision for legal complaints and expenses		2,488		-
Loan acquisition expenses		-		(4,877	)
Financial instruments recorded at market value		5,587		-
Specific tax on mining activity		-		(3,529	)
Tax loss benefit		24,160		-
Other		896		-
Foreign items (other)		232		-
Balances to date		162,097		(329,401	)
Net balance				(167,304	)

167 

Notes to the Consolidated Interim Financial Statements June 30, 2021  

(b) Deferred tax assets and liabilities as of December 31, 2020

	Net liability position
	Assets		Liabilities
Description of deferred tax assets and liabilities as of December 31, 2020		ThUS$		ThUS$
Unrealized loss		90,585		-
Property, plant and equipment and capitalized interest		-		(187,168	)
Restoration and rehabilitation provision		6,598		-
Manufacturing expenses		-		(107,215	)
Staff severance indemnities, unemployment insurance		-		(6,669	)
Vacation accrual		6,138		-
Inventory provision		22,200		-
Materials provision		8,812		-
Research and development expenses		-		(3,580	)
Bad debt provision		5,072		-
Provision for legal complaints and expenses		19,637		-
Loan acquisition expenses		-		(5,212	)
Financial instruments recorded at market value		-		(3,929	)
Specific tax on mining activity		-		(3,014	)
Tax loss benefit		844		-
Other		1,454		-
Foreign items (other)		-		(654	)
Balances to date		161,340		(317,441	)
Net balance				(156,101	)

168 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

(c) Reconciliation of changes in deferred tax liabilities (assets) as of June 30, 2021

	Deferred tax liability (asset) at beginning of period			Deferred tax (expense) benefit recognized in profit (loss) for the year			Deferred taxes related to items credited (charged) directly to equity			Total increases (decreases) in deferred tax liabilities (assets)			Deferred tax liability (asset) at end of period
Reconciliation of changes in deferred tax liabilities (assets)	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Unrealized loss		(90,585	)		10,134			-			10,134			(80,451	)
Property, plant and equipment and capitalized interest		187,168			(858	)		-			(858	)		186,310
Restoration and rehabilitation provision		(6,597	)		262			-			262			(6,335	)
Manufacturing expenses		107,215			15,862			-			15,862			123,077
Staff severance indemnities, unemployment insurance		6,669			517			762			1,279			7,948
Vacation accrual		(6,138	)		(211	)		-			(211	)		(6,349	)
Inventory provision		(22,200	)		790			-			790			(21,410	)
Materials provision		(8,812	)		(1,923	)		-			(1,923	)		(10,735	)
Forward		-			5,520			(5,520	)		-			-
Employee benefits		-			(115	)		-			(115	)		(115	)
Research and development expenses		3,581			79			-			79			3,660
bad debt provision		(5,072	)		1,733			-			1,733			(3,339	)
Provision for legal complaints and expenses		(19,637	)		17,149			-			17,149			(2,488	)
Loan approval expenses		5,212			(335	)		-			(335	)		4,877
Financial instruments recorded at market value		3,929			(5,353	)		(4,163	)		(9,516	)		(5,587	)
specific tax on mining activity		3,012			499			18			517			3,529
Tax loss benefit		(844	)		(23,316	)		-			(23,316	)		(24,160	)
Others		(1,454	)		558			-			558			(896	)
Foreign items (other)		654			(886	)		-			(886	)		(232	)
Total temporary differences, unused losses and unused tax credits		156,101			20,106			(8,903	)		11,203			167,304

169 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

(d) Reconciliation of changes in deferred tax liabilities (assets) as of December 31, 2020

	Deferred tax liability (asset) at beginning of period			Deferred tax (expense) benefit recognized in profit (loss) for the year			Deferred taxes related to items credited (charged) directly to equity			Total increases (decreases) in deferred tax liabilities (assets)			Deferred tax liability (asset) at end of period
Reconciliation of changes in deferred tax liabilities (assets)	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Unrealized loss		(82,076	)		(8,509	)		-			(8,509	)		(90,585	)
Property, plant and equipment and capitalized interest		197,167			(9,999	)		-			(9,999	)		187,168
Facility closure provision		(7,312	)		714			-			714			(6,598	)
Manufacturing expenses		106,420			795			-			795			107,215
Staff severance indemnities, unemployment insurance		6,000			514			155			669			6,669
Vacation accrual		(5,591	)		(547	)		-			(547	)		(6,138	)
Inventory provision		(23,885	)		1,685			-			1,685			(22,200	)
Materials provision		(7,982	)		(830	)		-			(830	)		(8,812	)
Forward		-			1,001			(1,001	)		-			-
Employee benefits		(2,689	)		2,689			-			2,689			-
Research and development expenses		3,534			46			-			46			3,580
bad debt provision		(3,542	)		(1,530	)		-			(1,530	)		(5,072	)
Provision for legal complaints and expenses		(2,546	)		(17,091	)		-			(17,091	)		(19,637	)
Loan approval expenses		3,856			1,356			-			1,356			5,212
Junior mining companies (valued based on stock price)		1,287			-			2,642			2,642			3,929
specific tax on mining activity		1,356			1,668			(10	)		1,658			3,014
Tax loss benefit		(2,296	)		1,452			-			1,452			(844	)
Others		2,021			(3,475	)		-			(3,475	)		(1,454	)
Foreign items (other)		(311	)		965			-			965			654
Total temporary differences, unused losses and unused tax credits		183,411			(29,096	)		1,786			(27,310	)		156,101

(e)  Deferred taxes related to benefits for tax losses

The Company’s tax loss carryforwards were mainly generated by losses in Chile, which in accordance with current Chilean tax regulations have no expiration date.

As of June 30, 2021, and December 31, 2020, tax loss carryforwards are detailed as follows:

	As of June 30, 2021		As of December 31, 2020
Deferred taxes related to benefits for tax losses	ThUS$		ThUS$
Chile		20,868		818
Foreign		3,292		26
Total		24,160		844

The tax losses as of June 30, 2021 correspond mainly to SQM S.A., SQM Potasio S.A., SIT S.A., Orcoma SpA., Orcoma Estudio SpA., SQM Mag SpA and SCM Búfalo.

The tax losses from foreign companies correspond mainly to SQM Europe N.V and SQM Africa Pty Ltd.

170 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

(f)            Movements in deferred tax assets and liabilities

Movements in deferred tax assets and liabilities as of June 30, 2021 and December 31, 2020 are detailed as follows:

	Assets (liabilities)
	As of June 30, 2021			As of December 31, 2020
Movements in deferred tax assets and liabilities	ThUS$			ThUS$
Deferred tax assets and liabilities, net opening balance		(156,101	)		(183,411	)
Increase (decrease) in deferred taxes in profit or loss		(20,106	)		29,096
Increase (decrease) deferred taxes in equity		8,903			(1,786	)
Total		(167,304	)		(156,101	)

(g)            Disclosures on income tax (expenses) benefit

Current and deferred tax (expenses) benefit are detailed as follows:

	(Expense) Income
	As of June 30, 2021			As of June 30, 2020
Disclosures on income tax (expense) benefit	ThUS$			ThUS$
Current income tax (expense) income
Current tax (expense)		(45,139	)		(51,261	)
Adjustments to prior year current income tax (expense) benefit		3,165			(1,776	)
Current income tax (expense), net, total		(41,974	)		(53,037	)
Deferred tax (expense)
Deferred tax (expense) relating to the creation and reversal of temporary differences		(19,355	)		4,093
Tax adjustments related to the creation and reversal of temporary differences from the previous year		(751	)		2,878
Deferred tax expense, net, total		(20,106	)		6,971
Income tax expense		(62,080	)		(46,066	)

171 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Tax (expenses) benefit for foreign and domestic parties are detailed as follows:

	(Expense) Income
	As of June 30, 2021			As of June 30, 2020
Income tax (expense) benefit	ThUS$			ThUS$
Current income tax benefit (expense) by foreign and domestic parties, net
Current income tax benefit (expense), foreign parties, net		(11,460	)		(3,886	)
Current income tax benefit (expense), domestic, net		(30,514	)		(49,151	)
Current income tax expense, net, total		(41,974	)		(53,037	)
Deferred tax benefit (expense) by foreign and domestic parties, net
Current income tax benefit (expense), foreign parties, net		(5,260	)		224
Current income tax benefit (expense), domestic, net		(14,846	)		6,747
Deferred tax expense, net, total		(20,106	)		6,971
Income tax expense		(62,080	)		(46,066	)

(h) Equity interest in taxation attributable to equity-accounted investees

The Company does not recognize any deferred tax liability in all cases of taxable temporary differences associated with investments in subsidiaries, branches and associated companies or interest in joint ventures, because as indicated in the standard, the following two conditions are jointly met:

(i) the parent, investor or interest holder is able to control the time for reversal of the temporary difference; and

(ii) It is more likely than not that the temporary difference will not be reversed in the foreseeable future.

In addition, the Company does not recognize deferred income tax assets for all deductible temporary differences from investments in subsidiaries, branches and associated companies or interests in joint ventures because it is unlikely that they will meet the following requirements:

(i) Temporary differences are reversed in a foreseeable future; and

(ii) The Company has tax earnings, against which temporary differences can be used.

172 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

(i)            Disclosures on the tax effects of other comprehensive income components:

	As of June 30, 2021
	Amount before taxes (expense) gain			(Expense) income for income taxes			Amount after taxes
Income tax related to other income and expense components with a charge or credit to net equity	ThUS$			ThUS$			ThUS$
Gain (loss) from defined benefit plans		4,399			(780	)		3,619
Cash flow hedge		(20,444	)		5,520			(14,924	)
Reserve for gains (losses) from financial assets measured at fair value through other comprehensive income		(13,351	)		4,163			(9,188	)
Total		(29,396	)		8,903			(20,493	)

	As of June 30, 2020
	Amount before taxes (expense) gain			(Expense) income for income taxes			Amount after taxes
Income tax related to other income and expense components with a charge or credit to net equity	ThUS$			ThUS$			ThUS$
Gain (loss) from defined benefit plans		143			(18	)		125
Cash flow hedge		(15,946	)		4,305			(11,641	)
Reserve for gains (losses) from financial assets measured at fair value through other comprehensive income		816			(220	)		596
Total		(14,987	)		4,067			(10,920	)

(j)            Explanation of the relationship between (expense) benefit for tax purposes and accounting income.

Based on IAS 12, paragraph 81, letter “c”, the company has estimated that the method that discloses the most significant information for users of the financial statements is the numeric conciliation between the tax expense (income) and the result of multiplying the accounting profit by the current rate in Chile. The aforementioned choice is based on the fact that the Company and subsidiaries established in Chile generate a large part of the Company’s tax expense (benefit). The amounts provided by subsidiaries established outside Chile have no relative importance in the overall context.

Reconciliation between the tax income (expense) and the tax calculated by multiplying accounting income by the Chilean corporate income tax rate.

	(Expense) Benefit
	As of June 30, 2021			As of June 30, 2020
Income Tax Expense (Benefit)	ThUS$			ThUS$
Consolidated income before taxes		222,705			142,755
Income tax rate in force in Chile		27	%		27	%
Tax expense using the statutory tax rate		(60,130	)		(38,544	)
Net effect of royalty tax payments		(1,676	)		(2,601	)
Effect of fines affected by article 21 and passive income		(64	)		(1,254	)
Tax effect of revenue from regular activities exempt from taxation		738			76
Tax rate effect of non-tax-deductible expenses for determining taxable profit (loss)		(1,134	)		(935	)
Tax effect of tax rates supported abroad		(2,458	)		(3,255	)
Change in classification of investments in associates		641			-
Other tax effects from reconciliation between accounting gains and tax expenses		2,003			447
Tax expense using the effective tax rate		(62,080	)		(46,066	)

173 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

(k) Tax periods potentially subject to verification:

The Group’s Companies are potentially subject to income tax audits by tax authorities in each country These audits are limited to a number of interim tax periods, which, in general, when they elapse, give rise to the expiration of these inspections.

Tax audits, due to their nature, are often complex and may require several years. Below, we provide a summary of tax periods that are potentially subject to verification, in accordance with the tax regulations in force in the country of origin:

(i) Chile

According to article 200 of Decree Law No 830, the taxes will be reviewed for any deficiencies in terms of payment and to generate any taxes that might arise. There is a 3-year prescriptive period for such review, dating from the expiration of the legal deadline when payment should have been made. This prescriptive period can be extended to 6 years for the revision of taxes subject to declaration, when such declaration has not been filed or has been presented with maliciously false information.

(ii) United States

In the United States, the tax authority may review tax returns for up to 3 years from the expiration date of the tax return. In the event that an omission or error is detected in the tax return of sales or cost of sales, the review can be extended for a period of up to 6 years.

(iii) Mexico:

In Mexico, the tax authority can review tax returns up to 5 years from the expiration date of the tax return.

(iv) Spain:

In Spain, the tax authority can review tax returns up to 4 years from the expiration date of the tax return.

A subsidiary of the Company, SQM Iberian S.A., is being reviewed by the Spanish Tax Authority. This audit could involve adjustments to tax returns filed in Spain.

(v) Belgium:

In Belgium, the tax authority may review tax returns for up to 3 years from the expiration date of the tax return if no tax losses exist. In the event of detecting an omission or error in the tax return, the review can be extended for a period of up to 5 years.

(vi) South Africa:

In South Africa, the tax authority may review tax returns for up to 3 years from the expiration date of the tax return. In the event that an omission or error in the tax return is detected, the review can be extended for a period of up to 5 years.

A subsidiary of the Company, SQM Africa Pty., is being reviewed by the South African Tax Authority. This audit could involve adjustments to tax returns filed in South Africa.

174 

Notes to the Consolidated Interim Financial Statements
June 30, 2021  

Note 27      Events occurred after the reporting date

27.1 Authorization of the financial statements

The consolidated financial statements of the Company and its subsidiaries, prepared in accordance with IFRS for the period ended June 30, 2021, were approved and authorized for issuance by the Company´s Board of Directors on August 18, 2021.

27.2 Disclosures on events occurring after the reporting date

The total financial impact of COVID-19 cannot be reasonably estimated at this time, due to uncertainty as to its severity and duration. It was anticipated that average sales volumes and prices will depend on the duration of the coronavirus in different markets, the efficiency of the measures implemented to contain the spread of the virus in each country, and the fiscal and national incentives that can be implemented in different jurisdictions to promote economic recovery. The Company continues to monitor and evaluate the spread of the coronavirus and its impact on our operations, business, financial condition and results of operations.

On July 16, 2021, the Company reported that Covalent Lithium Pty Ltd, joint venture (50/50) with Wesfarmers, has been granted a Ministerial Decree under the Western Australian Environmental Protection Act 1986. This decree details the conditions that apply to the construction and operation of the lithium hydroxide refinery in Kwinana, which forms part of the Mt. Holland lithium project.

On July 20, 2021, the Company notified CMF of a fire that affected two iodide storage wells located in the Company’s Nueva Victoria productive complex in the district of Pozo Almonte. The fire was controlled, and no injuries were reported. On July 23, 2021, the Company reported on repair works to damaged wells and estimated that repairs would imply an approximate investment of US$ 0.6 million. The estimated total net effect of this accident on iodine production for 2021 will be between 150 and 200 metric tons, which will not affect business commitments for 2021.

On August 18, 2021, the Board of Directors agreed to pay a provisional dividend equivalent to US$ 0.31439 per share with a charge to Company earnings for 2021. This amount will be paid in its equivalent in Chilean pesos, the domestic currency, according to the observed U.S. dollar exchange rate published in the Official Gazette on September 1, 2021.

Management is not aware of any other significant events that occurred between June 30, 2021 and the date of issuance of these consolidated financial statements that may significantly affect them.

175 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CHEMICAL AND MINING COMPANY OF CHILE INC.

(Registrant)

Date: August 31, 2021	/s/ Gerardo Illanes
	By: Gerardo Illanes
	CFO

Persons who are to respond to the collection of information contained SEC 1815 (04-09) in this form are not required to respond unless the form displays currently valid OMB control number.

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