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 November, 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. November 30, 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 nine months ended September 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 November 17, 2021.

 

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

for the periods ended September 30, 2021

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

In Thousands of United States Dollars

This document includes:

- Consolidated Interim Statements of Financial Position

- Consolidated Interim Statements of Income

- Consolidated Interim Statements of Comprehensive Income

- Consolidated Interim Statements of Cash Flows

- Consolidated Interim Statements of Changes in Equity

- Notes to the Consolidated Interim Financial Statements

Notes to the Consolidated Interim Financial Statements
September 30, 2021

Table of Contents –Consolidated Interim Financial Statements

Consolidated Interim Classified Statements of Financial Position	1
Consolidated Interim Classified Statements of Financial Position	2
Consolidated Interim Statements of Income (Unaudited)	3
Consolidated Interim Statements of Comprehensive Income (Unaudited)	4
Consolidated Interim Statements of Cash Flows (Unaudited)	5
Consolidated Interim 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
3.14	Inventory measurement	26
3.15	Non-controlling interests	27
3.16	Related party transactions	27

Notes to the Consolidated Interim Financial Statements
September 30, 2021

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	30
3.24	Minimum dividend	31
3.25	Earnings per share	31
3.26	Other provisions	31
3.27	Obligations related to employee termination benefits and pension commitments	32
3.28	Compensation plans	32
3.29	Revenue recognition	32
3.30	Finance income and finance costs	33
3.31	Current income tax and deferred	33
3.32	Operating segment reporting	34
3.33	Primary accounting criteria, estimates and assumptions	34
3.34	Environment	35
Note 4	Financial risk management	36
4.1	Financial risk management policy	36
4.2	Risk Factors	37
4.3	Risk measurement	41
Note 5	Separate information on the main office, parent entity and joint action agreements	42
5.1	Parent’s stand-alone assets and liabilities	42
5.2	Parent entity	42
Note 6	Board of Directors, Senior Management and Key management personnel	43
6.1	Remuneration of the Board of Directors and Senior Management	43
6.2	Key management personnel compensation	45
Note 7	Background on companies included in consolidation and non-controlling interests	46
7.1	Background on companies included in consolidation	46
7.2	Assets, liabilities, results of consolidated subsidiaries as of September 30, 2021 and for the period then ended.	48
7.3	Background on non-controlling interests	52
Note 8	Equity-accounted investees	53
8.1	Investments in associates recognized according to the equity method of accounting	53
8.2	Assets, liabilities, revenue and expenses of associates	55
8.3	Other information	56
Note 9	Joint Ventures	57
9.1	Investment in joint ventures accounted for under the equity method of accounting.	57
9.2	Assets, liabilities, revenue and expenses from joint ventures	60
9.3	Other Joint Venture disclosures	61
9.4	Disclosure of interests in joint ventures	62
9.5	Joint Ventures	62

Notes to the Consolidated Interim Financial Statements
September 30, 2021

Note 10	Cash and cash equivalents	63
10.1	Types of cash and cash equivalents	63
10.2	Short-term investments, classified as cash equivalents	63
10.3	Information on cash and cash equivalents by currency	64
10.4	Amount restricted cash balances	64
10.5	Short-term deposits, classified as cash equivalents	65
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	92
13.6	Financial asset and liability categories	93
13.7	Fair value measurement of finance assets and liabilities	95
13.8	Estimated fair value of financial instruments	98
13.9	Net Debt reconciliation	99
Note 14	Right-of-use assets and Lease liabilities	100
14.1	Right-of-use assets	100
14.2	Lease liabilities	101
Note 15	Intangible assets and goodwill	108
15.1	Reconciliation of changes in intangible assets and goodwill	108
Note 16	Property, plant and equipment	115
16.1	Types of property, plant and equipment	115
16.2	Conciliation of changes in property, plant and equipment by type:	117
16.3	Detail of property, plant and equipment pledged as guarantee	121
16.4	Cost of capitalized interest, property, plant and equipment	121
Note 17	Other current and non-current non-financial assets	122
Note 18	Employee benefits	125
18.1	Provisions for employee benefits	125
18.2	Policies on defined benefit plan	125
18.3	Other long-term benefits	126
18.4	Post-employment benefit obligations	126
18.5	Staff severance indemnities	127
18.6	Executive compensation plan	128

Notes to the Consolidated Interim Financial Statements
September 30, 2021

Note 19	Provisions and other non-financial liabilities	129
19.1	Types of provisions	129
19.2	Description of other provisions	130
19.3	Other non-financial liabilities, Current	131
19.4	Changes in provisions	132
Note 20	Disclosures on equity	133
20.1	Capital management	133
20.2	Operational restrictions and financial limits	133
20.3	Disclosures on preferred share capital	134
20.4	Disclosures on reserves in Equity	136
20.5	Dividend policies	138
20.6	Interim and provisional dividends	139
20.7	Potential and provisional dividends	140
Note 21	Contingencies and restrictions	141
21.1	Lawsuits and other relevant events	141
21.2	Environmental contingencies	143
21.3	Tax Contingencies	143
21.4	Contingencies regarding to the Contracts with Corfo	144
21.5	Contingencies associated with conflicts between shareholders of the Abu Dhabi Fertilizer Industries Company	144
21.6	Restricted or pledged cash	144
21.7	Securities obtained from third parties	144
21.8	Indirect guarantees	144
Note 22	Environment	145
22.1	Disclosures of disbursements related to the environment	145
22.2	Detailed information on disbursements related to the environment	146
22.3	Description of each project, indicating whether these are in process or have been finished	155
Note 23	Gains (losses) from operating activities in the statement of income of expenses, included according to their nature	161
23.1	Revenue from operating activities customer activities	161
23.2	Cost of sales	163
23.3	Other income	164
23.4	Administrative expenses	164
23.5	Other expenses	165
23.6	Other losses	165
23.7	(Impairment) /reversion of value of financial assets impairment losses	166
23.8	Summary of expenses by nature	166
23.9	Finance expenses	167
23.10	Finance income	167
Note 24	Reportable segments	168
24.1	Reportable segments	168
24.2	Reportable segment disclosures:	170

Notes to the Consolidated Interim Financial Statements
September 30, 2021

24.3	Statement of comprehensive income classified by reportable segments based on groups of products	172
24.4	Disclosures on geographical areas	174
24.5	Disclosures on main customers	174
24.6	Segments by geographical areas	175
Note 25	Effect of fluctuations in foreign currency exchange rates	176
Note 26	Disclosures on the effects of fluctuations in foreign currency exchange rates	177
Note 27	Income tax and deferred taxes	183
27.1	Current and non-current tax assets	183
27.2	Current tax liabilities	184
27.3	Income tax and deferred taxes	185
Note 28	Events occurred after the reporting date	193
28.1	Authorization of the financial statements	193
28.2	Disclosures on events occurring after the reporting date	193

Notes to the Consolidated Interim Financial Statements
September 30, 2021

Consolidated Interim Classified Statements of Financial Position

		As of	As of
		September 30,	December 31,
		2021	2020
		(Unaudited)	(Audited)
ASSETS	Note N°	ThUS$	ThUS$
Current Assets
Cash and cash equivalents	10.1	1,865,043	509,102
Other current financial assets	13.1	754,274	348,069
Other current non-financial assets	17	39,651	57,399
Trade and other receivables, current	13.2	501,508	365,206
Trade receivables due from related parties, current	12.5	62,196	62,601
Current inventories	11	1,111,932	1,093,028
Current tax assets	27.1	141,388	132,224
Total current assets other than those classified as held for sale or disposal		4,475,992	2,567,629
Non-current assets or groups of assets classified as held for sale		582	1,629
Total non-current assets held for sale		582	1,629
Total current assets		4,476,574	2,569,258
Non-current assets
Other non-current financial assets	13.1	10,436	51,925
Other non-current non-financial assets	17	46,960	22,042
Non-current trade receivables,	13.2	6,316	11,165
Investments classified using the equity method of accounting	8.1-9.1	44,211	85,993
Intangible assets other than goodwill	15.1	182,869	178,407
Goodwill	15.1	34,596	41,966
Property, plant and equipment net	16.1	1,867,123	1,737,319
Right-of-use assets	14.1	53,889	30,024
Non-current tax assets	27.1	90,364	90,364
Total non-current assets		2,336,764	2,249,205
Total assets		6,813,338	4,818,463

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

1

Notes to the Consolidated Interim Financial Statements  September 30, 2021  

Consolidated Interim Classified Statements of Financial Position

		As of		As of
		September 30,		December
		2021		31, 2020
		(Unaudited)		(Audited)
Liabilities and Equity	Note N°	ThUS$		ThUS$
Current liabilities
Other current financial liabilities	13.4	45,021		68,955
Lease liabilities, current	14.2	7,533		5,528
Trade and other payables, current	13.5	260,142		203,933
Trade payables due to related parties, current	12.6	342		606
Other current provisions	19.1	164,244		104,166
Current tax liabilities	27.2	42,750		22,643
Provisions for employee benefits, current	18.1	19,709		9,096
Other current non-financial liabilities	19.3	82,959		60,955
Total current liabilities		622,700		475,882
Non-current liabilities
Other non-current financial liabilities	13.4	2,589,065		1,899,513
Non-current lease liabilities	14.2	47,560		25,546
Non-current trade and other payables	13.5	11,644		4,027
Other non-current provisions	19.1	58,228		62,617
Deferred tax liabilities	27.3	133,020		156,101
Non-current provisions for employee benefits	18.1	26,786		32,199
Total non-current liabilities		2,866,303		2,180,003
Total liabilities		3,489,003		2,655,885
Equity
Equity attributable to owners of the Parent	20
Share capital		1,577,700		477,386
Retained earnings		1,754,133		1,638,267
Other reserves		(46,324	)	7,432
Equity attributable to owners of the Parent		3,285,509		2,123,085
Non-controlling interests		38,826		39,493
Total equity		3,324,335		2,162,578
Total liabilities and equity		6,813,338		4,818,463

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

2

Notes to the Consolidated Interim Financial Statements  September 30, 2021  

Consolidated Interim Statements of Income (Unaudited)

		For the period from January to September of the year				For the period from July to September of the year
		2021		2020		2021		2020
Consolidated Interim Statements of Income	Note N°	ThUS$		ThUS$		ThUS$		ThUS$
Revenue	23.1	1,778,023		1,303,385		661,551		452,874
Cost of sales	23.2	(1,230,689	)	(953,026	)	(436,764	)	(338,107	)
Gross profit		547,334		350,359		224,787		114,767
Other income	23.3	16,064		22,817		1,325		16,345
Administrative expenses	23.4	(83,865	)	(74,630	)	(29,982	)	(25,712	)
Other expenses	23.5	(39,655	)	(83,693	)	(25,095	)	(71,624	)
Impairment of financial assets and reversal of impairment losses	23.7	282		1,244		925		(646	)
Other (losses) gains	23.6	(3,798	)	(12,041	)	1,069		(6,221	)
Profit from operating activities		436,362		204,056		173,029		26,909
Finance income	23.10	2,852		12,485		966		2,166
Finance costs	16-23.9	(58,613	)	(65,068	)	(19,280	)	(20,711	)
Share of profit of associates and joint ventures accounted for using the equity method	8.1-9.3	7,330		7,920		1,768		1,527
Foreign currency translation differences	25	(12,856	)	(6,990	)	(4,113	)	(244	)
Profit before taxes		375,075		152,403		152,370		9,647
Income tax expense	27.3	(105,888	)	(52,375	)	(43,808	)	(6,309	)
Net profit		269,187		100,028		108,562		3,338
Profit attributable to:
Profit attributable to Owners of the Parent		263,876		97,525		106,103		1,703
Profit attributable to Non-controlling interests		5,311		2,503		2,459		1,635
		269,187		100,028		108,562		3,338

		For the period from January to September of the year		For the period from July to September 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)		0.9238	0.3705	0.3715	0.0065
Diluted common shares
Earnings per share (US$ per share)		0.9238	0.3705	0.3715	0.0065

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

3

Notes to the Consolidated Interim Financial Statements  September 30, 2021  

Consolidated Interim Statements of Comprehensive Income (Unaudited)

	For the period from January to September of the year				For the period from July to September of the year
	2021		2020		2021		2020
Consolidated Statements of Comprehensive Income	ThUS$		ThUS$		ThUS$		ThUS$
Net profit	269,187		100,028		108,562		3,338
Items of other comprehensive income that will not be reclassified to profit for the year, before taxes
Gains from measurements of defined benefit plans	3,772		(1,834	)	(627	)	(1,978	)
(Losses) gains from financial assets measured irrevocably at fair value through other comprehensive income	(10,663	)	4,578		2,688		3,762
Total other comprehensive income that will not be reclassified to profit for the year, before taxes	(6,891	)	2,744		2,061		1,784
Items of other comprehensive income that will be reclassified to profit for the year, before taxes
Foreign currency exchange gains	4,340		14,018		2,210		15,105
(Losses) from cash flow hedges	(55,289	)	(12,843	)	(34,845	)	3,103
Total other comprehensive income that will be reclassified to profit for the year	(50,949	)	1,175		(32,635	)	18,208
Other items of other comprehensive income, before taxes	(57,840	)	3,919		(30,574	)	19,992
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	(610	)	512		170		530
Income benefit (tax) relating to (losses) gains on financial assets measured irrevocably at fair value through other comprehensive income	3,437		(1,236	)	(726	)	(1,016	)
Total income tax relating to components of other comprehensive income that will be not reclassified to profit for the year	2,827		(724	)	(556	)	(486	)
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	14,928		3,468		9,408		(837	)
Total income tax relating to components of other comprehensive income that will be reclassified to profit for the year	14,928		3,468		9,408		(837	)
Total other comprehensive income	(40,085	)	6,663		(21,722	)	18,669
Total comprehensive income	229,102		106,691		86,840		22,007
Comprehensive income attributable to
Comprehensive income attributable to owners of the parent	223,302		103,993		84,010		20,513
Comprehensive income attributable to non-controlling interest	5,800		2,698		2,830		1,494
	229,102		106,691		86,840		22,007

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

4

Notes to the Consolidated Interim Financial Statements  September 30, 2021  

Consolidated Interim Statements of Cash Flows (Unaudited)

		For the period from January to September 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			1,764,488		1,420,358
Cash receipts from premiums and benefits, annuities and other benefits from policies entered			2,377		13,339
Cash receipts derived from sub-leases			1,524		157
Classes of Payments
Cash payments to suppliers for the provision of goods and services			(1,230,477	)	(1,163,006	)
Cash payments relating to variable leases			(777	)	(882	)
Other payments related to operating activities			(13,239	)	(19,110	)
Net cash generated from operating activities			523,896		250,856
Dividends received			1,814		4,849
Interest paid			(64,298	)	(63,030	)
Interest paid on lease liabilities			(1,110	)	(884	)
Interest received			2,967		13,957
Income taxes paid			(99,015	)	(106,746	)
Other cash inflows (1)			54,595		81,495
Net cash generated from operating activities			418,849		180,497
Cash flows from (used in) investing activities
Proceeds from the sale of equity instruments			16,413		-
Cash flows arising from the loss/gain of control of subsidiaries and other businesses			-		27
Proceeds from the sale of property, plant and equipment			79		2,129
Other payments to acquire interest in joint ventures			-		(11,035	)
Proceeds from the sale of joint ventures			-		12,140
Acquisition of property, plant and equipment			(284,642	)	(226,708	)
Proceeds from sales of intangible assets			12,309		7,006
Proceeds related to futures, forward options and swap contracts			199		(3,469	)
Purchases of intangible assets			-		(246	)
Loans to related parties			15,000		(10,500	)
Cash flows proceeds from the sale of interests in joint ventures			13,085		-
Purchase of other long-term assets			(5,689	)	-
Other cash (outflows) inflows (2)			(427,458	)	82,106
Cash flow used in investing activities			(660,704	)	(148,550	)

(1) Other inflows (outflows) 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 Interim Financial Statements  September 30, 2021  

Consolidated Interim Statements of Cash Flows (Unaudited)

		For the period from January to September 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		(6,254	)	(6,041	)
Proceeds from long-term loans		700,000		400,000
Payment of borrowings		(14,110	)	(264,122	)
Paid dividends		(167,427	)	(115,793	)
Capital stock increase		1,100,314		-
Net cash generated from financing activities		1,612,523		14,044
Net Increase in cash and cash equivalents before the effect of changes in the exchange rate		1,370,668		45,991
Effects of exchange rate fluctuations on cash and cash equivalents		(14,727	)	3,020
Increase in cash and cash equivalents		1,355,941		49,011
Cash and cash equivalents at beginning of period		509,102		588,530
Cash and cash equivalents at end of period	10	1,865,043		637,541

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

6

Notes to the Consolidated Interim Financial Statements  September 30, 2021  

Consolidated Interim Statements of Changes in Equity (Unaudited)

Consolidated Interim Statements of Changes	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
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		-		-			-			-			-			-			-			263,876			263,876			5,311			269,187
Other comprehensive income		-		3,881			(40,361	)		(7,226	)		3,132			-			(40,574	)		-			(40,574	)		489			(40,085	)
Comprehensive income		-		3,881			(40,361	)		(7,226	)		3,132			-			(40,574	)		263,876			223,302			5,800			229,102
Sale of equity instruments irrevocably recognized in OCI		-		-			-			(9,764	)		-			-			(9,764	)		9,764			-			-			-
Dividends (1)		-		-			-			-			-			-			-			(157,774	)		(157,774	)		(6,467	)		(164,241	)
Capital stock increase		1,100,314		-			-			-			-			-			-			-			1,100,314			-			1,100,314
Other (decrease) increase in equity		-		-			-			-			-			(3,418	)		(3,418	)		-			(3,418	)		-			(3,418	)
Total changes in equity		1,100,314		3,881			(40,361	)		(16,990	)		3,132			(3,418	)		(53,756	)		115,866			1,162,424			(667	)		1,161,757
Equity as of September 30, 2021		1,577,700		(7,688	)		(35,870	)		(10,118	)		(5,548	)		12,900			(46,324	)		1,754,133			3,285,509			38,826			3,324,335

	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		-		-			-			-			-			-		-			97,525			97,525			2,503			100,028
Other comprehensive income		-		13,833			(9,375	)		3,342			(1,332	)		-		6,468			-			6,468			195			6,663
Comprehensive income		-		13,833			(9,375	)		3,342			(1,332	)		-		6,468			97,525			103,993			2,698			106,691
Dividends (1)		-		-			-			-			-			-		-			(144,986	)		(144,986	)		(4,242	)		(149,228	)
Other increase (decrease) in equity		-		-			-			-			-			2,337		2,337			-			2,337			(2,278	)		59
Total changes in equity		-		13,883			(9,375	)		3,342			(1,332	)		2,337		8,805			(47,461	)		(38,656	)		(3,822	)		(42,478	)
Equity as of September 30, 2020		477,386		(11,912	)		(2,179	)		3,072			(10,822	)		16,423		(5,418	)		1,575,643			2,047,611			44,383			2,091,994

(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  September 30, 2021  

Glossary

The Following capitalized terms in these financial statements (including their 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;

8

Notes to the Consolidated Interim Financial Statements  September 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  September 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  September 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
September 30, 2021

1.5 Other background

(a) Employees

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

	As of September 30, 2021						As of December 31, 2020
Employees	SQM S.A.		other subsidiaries		Total		SQM S.A.		other subsidiaries		Total
Executives		32		100		132		33		93		126
Professionals		114		1,579		1,693		108		1,696		1,804
Technicians and operators		278		3,786		4,064		267		3,310		3,577
Overall total		424		5,465		5,889		408		5,099		5,507

	As of September 30, 2021						As of December 31, 2020
Place of work	SQM S.A.		other subsidiaries		Total		SQM S.A.		other subsidiaries		Total
In Chile		424		5,061		5,485		408		4,672		5,080
Outside Chile		-		404		404		-		427		427
Overall total		424		5,465		5,889		408		5,099		5,507

(b) Main shareholders

As of September 30, 2021, there were 1,476 shareholders.

Following table shows information about the main shareholders of the Company’s Series A or Series B shares in circulation as of September 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 September 30, 2021	No. of Series A	% of Series A shares			No. of Series B	% of Series B shares		% of total shares
The Bank of New York Mellon, ADRs	-		-		64,948,288	45.48	%	22.74	%
Inversiones TLC SpA (1)	62,556,568		43.80	%	-	-		21.90	%
Sociedad de Inversiones Pampa Calichera S.A. (2)	44,989,231		31.50	%	378,090	0.26	%	15.88	%
Potasios de Chile S.A.	18,179,147		12.73	%	-	-		6.36	%
Banco Santander via foreign investor accounts	-		-		9,360,631	6.55	%	3.28	%
Inv. Global Mining (Chile) Ltda.	8,798,539		6.16	%	-	-		3.08	%
Banco de Chile via State Street	22,836		0.02	%	8,667,222	6.07	%	3.04	%
Banco de Chile non-resident third party accounts	-		-		7,377,168	5.17	%	2.58	%
Inversiones la Esperanza de Chile Limitada	4,246,226		2.97	%	-	-		1.49	%
Banco de Chile via Citi NA New York Clients	67,463		0.05	%	3,943,061	2.76	%	1.40	%
AFP Habitat S.A. for Pension Fund C	-		-		3,075,508	2.15	%	1.08	%
Larraín Vial S.A. Corredora de Bolsa	136,605		0.10	%	2,760,977	1.93	%	1.01	%

12

Notes to the Consolidated Interim Financial Statements
September 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 September 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 September 30, 2021, Tianqi Lithium Corporation owns 23.75% of SQM's total Series A shares and ADS holders of Series B shares. In other words, as of September 30, 2021, Tianqi Lithium Corporation directly and indirectly holds 23.75% of all SQM shares through Series A shares and ADS holders of Series B shares. As of December 31, 2020, Tianqi Lithium Corporation holds 25.86% of all SQM shares through Series A and B shares.

(2) As of September 30, 2021, Sociedad de Inversiones Pampa Calichera S.A. has 50,601,578 Series A and B shares; 5,234,257 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.

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.

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

13

Notes to the Consolidated Interim Financial Statements
September 30, 2021

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 September 30, 2021, contributed capital is US$ 1.1 billion net of expenses and others amounting to ThUS$ 24,536.

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
September 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 September 30, 2021 and December 31, 2020.

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

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

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

(e) Consolidated Interim Statements of Cash Flows as of September 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 the 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
September 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
September 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.	01-01-2023
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
September 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
September 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
September 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
September 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 September 30, 2021		As of December 31, 2020		As of September 30, 2021		As of December 31, 2020
Currencies	ThUS$		ThUS$		ThUS$		ThUS$
Brazilian real		5.46		5.18		5.28		5.14
New Peruvian sol		4.14		3.62		4.11		3.60
Japanese yen		111.37		103.30		110.15		103.81
Euro		0.86		0.81		0.85		0.82
Mexican peso		20.56		19.93		20.05		19.97
Australian dollar		1.39		1.30		1.37		1.33
Pound Sterling		0.74		0.74		0.73		0.74
South African rand		15.10		14.61		14.57		14.88
Chilean peso		811.90		710.95		785.38		731.92
Chinese yuan		6.45		6.51		6.45		6.53
Indian rupee		74.23		73.30		73.59		73.65
Thai Baht		33.66		29.94		33.06		30.08
Turkish lira		8.89		7.36		8.56		7.70
UF (*)		37.06		40.89		38.24		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
September 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
September 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 23.7. 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
September 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
September 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 September 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
September 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
September 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
September 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 the 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 fixed assets		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
September 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
September 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
Intellectual property	9 years	9 years
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:

Once the rights have been obtained, the Company records the disbursements directly associated with the exploration and evaluation of the deposit in execution as property, plant and equipment (construction in progress) at its cost. 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 over the following twelve months as current inventories.

Once the mineral concession is considered to be in extraction, the amount corresponding to exploration and evaluation is associated with the tonnage of extractable ore, which is amortized as it is used, except for explorations in the Salar de Atacama, which are amortized in 10 years.

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

30

Notes to the Consolidated Interim Financial Statements
September 30, 2021

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 September 30, 2021, the WACC rate was 10.06%.

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 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.

31

Notes to the Consolidated Interim Financial Statements
September 30, 2021   

3.27 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).

3.28 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).

3.29 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.

32

Notes to the Consolidated Interim Financial Statements
September 30, 2021   

(c)        Income from dividends

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

3.30 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.

3.31 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.

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.

33

Notes to the Consolidated Interim Financial Statements
September 30, 2021   

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.

The Company does not recognize deferred tax liabilities in all cases of taxable temporary differences associated with investments in subsidiaries, branches and associates, or with joint ventures, because based on the standard, the two following conditions both apply:

(i) the parent company, investor or shareholder is capable of controlling the moment of the reversal of temporary differences; and

(ii) it is probable that the temporary difference will not be reversed in the foreseeable future.

Moreover, the Company does not recognize deferred tax assets for all the deductible temporary differences that originate from investments in subsidiaries, branches and associates, or from joint ventures, because it is unlikely that they meet the following requirements:

(i) temporary differences are reversed in the foreseeable future; and

(ii) there is taxable profit available against which temporary differences can be used.

3.32 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.

3.33 Primary accounting criteria, estimates and assumptions

Management is responsible for the information contained in these consolidated annual accounts, 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).

· 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).

34

Notes to the Consolidated Interim Financial Statements
September 30, 2021   

· 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.

3.34 Environment

In general, the Company follows the criteria of considering amounts used in environmental protection and improvement as environmental expenses. However, the cost of facilities, machinery and equipment used for the same purpose are considered property, plant and equipment, as the case may be.

35

Notes to the Consolidated Interim Financial Statements
September 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.

36

Notes to the Consolidated Interim Financial Statements
September 30, 2021   

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.

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 September 30, 2021
Financial institution	Financial assets	Moody´s	S&P	Fitch	ThUS$
Banco crédito e inversiones	Time deposits	P-1	A-2	-	16,878
Banco Estado	Time deposits	P-1	A-1	-	3,500
Banco Itaú Corpbanca	Time deposits	P-2	A-2	-	6,889
Banco Santander – Santiago	Time deposits	P-1	A-2	-	7,500
Sumitomo Mitsui Banking	Time deposits	P-1	A-1	F1	320,000
Scotiabank Sud Americano	Time deposits	P-1	A-1	F1+	3,500
JP Morgan US dollar Liquidity Fund Institutional	Investment fund	Aaa-mf	AAAm	AAAmmf	323,780
Legg Mason - Western Asset Institutional cash reserves	Investment fund	-	AAAm	AAAmmf	256,642
Total					938,689

		Rating			As of September 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	-	55,033
Banco Itaú Corpbanca	90 days to 1 year	P-2	A-2	-	177,414
Banco Santander – Santiago	90 days to 1 year	P-1	A-2	-	150,199
Scotiabank Sud Americano	90 days to 1 year	P-1	A-1	F1+	283,385
Banco de chile	90 days to 1 year	P-1	A-1	-	80,101
Total					746,132

37

Notes to the Consolidated Interim Financial Statements
September 30, 2021   

		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

		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

38

Notes to the Consolidated Interim Financial Statements
September 30, 2021   

(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 will provoke a respective decrease or increase to these accounting costs, which would be reflected in the Company’s profit and loss. By the third quarter of 2021, approximately US$ 386 million accumulated in expenses are associated with the Peso.

As of September 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$ 78.59 million, This significant variation is explained primarily by the USD/CLP exchange rate observed at the end of the period. As of December 31, 2020, an asset was recognized amounting to US$ 18.41 million.

Furthermore, on September 30, 2021, the Company held derivative instruments classified as hedges of foreign exchange risks associated with 100% of all nominative term deposits in UF and in pesos, at a fair value of US$ 3.56 million in assets. On December 31, 2020, a liability was recognized for an amount of US$ 21 million. In addition, the company maintained US$ 0.04 million in derivative instruments to cover its term deposit investments in Chilean pesos.

The Company had the following derivative contracts as of September 30, 2021 (at the absolute value of the sum of their notional values), to hedge the difference between its assets and liabilities: US$ 70.50 CLP/US dollar derivative contracts, US$ 49.7 Euro/US dollar derivative contracts, US$ 25.34 million in South African rand/US dollar derivative contracts, US$ 81.71 million in Chinese renminbi/US dollar derivative contracts and US$ 50.32 million in other currencies.

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+	AA
Banco Itau-Corpbanca	Derivative	P-1	A-2	-
JP Morgan	Derivative	Aa2	A+	AA
Morgan Stanley	Derivative	A+	BBB+	A
The Bank of Nova Scotia	Derivative	A	A+	AA-

39

Notes to the Consolidated Interim Financial Statements
September 30, 2021   

(c) 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 September 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.

(d) 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 September 30, 2021 this was 7.19 and as for December 31, 2020 this was 5.40).

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 September 30, 2021, the Company had unused, available revolving credit facilities with banks, for a total of US$ 493 million.

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

¹ All current assets divided by all current liabilities.

40

Notes to the Consolidated Interim Financial Statements
September 30, 2021   

	Nature of undiscounted cash flows
As of September 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	70.31	0.91	70.93	-	71.84
Unsecured obligations	2,515.55	108.79	932.02	3,001.44	4,042.25
Sub total	2,585.186	109.70	1,002.95	3,001.44	4,114.09
Hedging liabilities	81.40	11.74	30.18	37.73	79.65
Derivative financial instruments	2.97	2.97	-	-	2.97
Sub total	84.37	14.71	30.18	37.73	82.62
Current and non-current lease liabilities	55.01	9.45	30.53	19.64	59.62
Trade accounts payable and other accounts payable	260.14	260.14	-	-	260.14
Total	2,985.38	394	1,063.66	3,058.81	4,516.47

	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	1,872.09	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

As of September 30, 2021, the nominal value of the agreed flows in US dollars of the CCS contracts were ThUS$ 552,202 (ThUS$ 565,295 as of December 31, 2020).

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.

41

Notes to the Consolidated Interim Financial Statements
September 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 September 30, 2021			As of December 31, 2020
	ThUS$			ThUS$
Assets		6,195,061			4,171,768
Liabilities		(2,909,552	)		(2,048,683	)
Equity		3,285,509			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.

42

Notes to the Consolidated Interim Financial Statements
September 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 September 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.

43

Notes to the Consolidated Interim Financial Statements
September 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 September 30, 2021 amounted to ThUS$ 2,379 and as of September 30, 2020 to ThUS$ 2,001.

(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.

44

Notes to the Consolidated Interim Financial Statements
September 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 September 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 September 30, 2021 and 2020, the number of the key management personnel is 125 and 127, respectively.

Key management personnel compensation	For the year ended September 30, 2021		For the year ended September 30, 2020
	ThUS$		ThUS$
Key management personnel compensation		21,609		14,268

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

45

Notes to the Consolidated Interim Financial Statements
September 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 September 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
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

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

46

Notes to the Consolidated Interim Financial Statements
September 30, 2021

					Ownership Interest
Subsidiaries	TAX ID No.	Address	Country of Incorporation	Functional Currency	Direct	Indirect	Total
SQM Japan Co. Ltd.	foreign	From 1st Bldg 207, 5-3-10 Minami- Aoyama, Minato-ku, Tokyo	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 Waterford 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

47

Notes to the Consolidated Interim Financial Statements
September 30, 2021

7.2 Assets, liabilities, results of consolidated subsidiaries as of September 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.		620,938		57,781		511,079		7,627		115,715		31,257			31,370
SQM Potasio S.A.		53,840		1,317,161		261,064		21,548		1,895		139,562			140,022
Serv. Integrales de Tránsito y Transf. S.A.		77,542		34,824		92,845		7,123		22,181		3,249			3,299
Isapre Norte Grande Ltda.		751		684		619		165		2,977		56			35
Ajay SQM Chile S.A.		17,800		2,263		1,094		667		35,832		1,588			1,588
Almacenes y Depósitos Ltda.		224		49		-		-		-		(13	)		(156	)
SQM Salar S.A.		1,134,237		1,127,635		1,067,005		232,551		684,805		143,746			144,251
SQM Industrial S.A.		1,169,497		722,366		768,384		110,804		613,957		129,298			130,778
Exploraciones Mineras S.A.		14,862		22,234		6,731		-		824		510			510
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.		213		447		283		236		2,510		12			13
Soquimich Comercial S.A.		171,663		13,406		96,705		10,874		115,176		11,426			11,500
Comercial Agrorama Ltda.		898		820		3,843		18		1,245		117			118
Comercial Hydro S.A.		4,823		11		8		3		21		(8	)		(8	)
Agrorama S.A.		39		-		4,872		2		129		51			54
Orcoma SpA		10		2,366		60		-		-		(17	)		(17	)
Orcoma Estudio SpA		30		5,820		1,623		81		-		(6	)		(6	)
SQM MaG SPA		2,397		492		1,925		4		2,432		84			85
Sociedad Contractual Minera Búfalo		98		767		848		-		-		(6	)		(6	)
SQM North America Corp.		105,039		20,587		80,954		1,421		224,099		6,523			6,926
RS Agro Chemical Trading Corporation A.V.V.		5,155		-		110		-		-		(22	)		(22	)
Nitratos Naturais do Chile Ltda.		-		127		3,086		-		-		25			25
SQM Corporation N.V.		17,363		53,751		3,617		-		-		7,237			7,246
SQM Perú S.A.		23		-		82		-		-		(1	)		(1	)
SQM Ecuador S.A.		29,770		847		21,759		59		36,258		4,479			4,479
SQM Brasil Ltda.		228		1		462		2,095		-		(78	)		(78	)
Subtotal		3,427,440		3,384,439		2,929,058		395,278		1,860,056		479,069			482,005

48

Notes to the Consolidated Interim Financial Statements
September 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.		31,894		17,788		2,317		-		-		1,859			1,859
SQM Japan Co. Ltd.		26,841		226		23,523		224		53,926		136			136
SQM Europe N.V.		428,172		3,457		344,430		2,203		627,982		27,136			27,136
SQM Indonesia S.A.		3		-		1		-		-		-			-
North American Trading Company		155		145		-		-		-		-			-
SQM Virginia LLC		14,798		14,340		14,798		-		-		(1	)		(1	)
SQM Comercial de México S.A. de C.V.		114,760		7,676		75,865		1,648		181,723		8,239			8,239
SQM Investment Corporation N.V.		13,962		159,378		5,613		866		-		26,745			26,772
Royal Seed Trading Corporation A.V.V.		34		-		18,901		-		-		(36	)		(36	)
SQM Lithium Specialties LLP		15,746		3		1,264		-		-		-			-
Comercial Caimán Internacional S.A.		257		-		1,122		-		-		(2	)		(2	)
SQM France S.A.		345		6		114		-		-		-			-
Administración y Servicios Santiago S.A. de C.V.		191		83		352		183		1,781		10			10
SQM Nitratos México S.A. de C.V.		120		12		34		20		736		22			22
Soquimich European Holding B.V.		10,592		202,846		394		-		-		36,014			36,050
SQM Iberian S.A.		51,213		2,291		23,561		4		95,962		6,217			6,217
SQM Africa Pty Ltd.		60,319		1,306		48,257		-		50,828		2,516			2,516
SQM Oceania Pty Ltd.		5,387		-		3,531		-		2,659		(591	)		(591	)
SQM Beijing Commercial Co. Ltd.		1,921		6		12		-		5,465		(261	)		(261	)
SQM Thailand Limited		3,192		-		3		-		-		(267	)		(267	)
SQM Colombia SAS		10,018		155		9,199		-		13,141		831			831
SQM International NV		27,169		724		5,154		11,644		74,887		(426	)		(426	)
SQM Shanghai Chemicals Co. Ltd.		189,800		197		150,264		-		206,072		34,518			34,518
SQM Australia Pty Ltd.		63,025		227,613		27,922		18,432		-		(4,312	)		(4,312	)
SQM Korea LLC		4,110		155		3,885		-		1,619		(287	)		(287	)
SQM Holland B.V.		6,954		14,797		2,446		-		16,216		(245	)		(245	)
Subtotal		1,080,978		653,204		762,962		35,224		1,332,997		137,815			137,878
Total		4,508,418		4,037,643		3,692,020		430,502		3,193,053		616,884			619,883

49

Notes to the Consolidated Interim Financial Statements
September 30, 2021

Assets, liabilities, results of consolidated subsidiaries as of December 31, 2020 and for the period ended September 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		143,724		47,907			47,697
SQM Potasio S.A.		16,680		1,108,579		155,379		23,323		1,888		44,843			44,801
Serv. Integrales de Tránsito y Transf. S.A.		55,142		36,291		75,848		6,485		23,925		2,765			2,761
Isapre Norte Grande Ltda.		812		839		795		181		2,247		25			14
Ajay SQM Chile S.A.		25,441		1,549		9,563		713		29,724		1,132			1,132
Almacenes y Depósitos Ltda.		256		51		-		-		-		(1	)		(54	)
SQM Salar S.A.		855,683		1,035,088		814,686		214,914		437,502		54,723			54,681
SQM Industrial S.A.		950,058		679,345		634,105		113,230		613,730		70,759			70,001
Exploraciones Mineras S.A.		16,572		22,293		9,010		-		-		(155	)		(155	)
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.		279		571		305		396		1,703		31			-
Soquimich Comercial S.A.		136,623		13,796		56,293		12,630		80,169		5,071			5,096
Comercial Agrorama Ltda.		683		970		4,215		23		965		(161	)		(162	)
Comercial Hydro S.A.		4,834		15		14		4		21		19			19
Agrorama S.A.		55		-		5,631		10		228		201			202
Orcoma SpA		3		2,365		35		-		-		(9	)		(9	)
Orcoma Estudio SpA		4		4,559		411		-		-		(493	)		(493	)
SQM MaG SPA		1,491		521		1,129		6		1,341		126			126
Sociedad Contractual Minera Búfalo		50		323		350		-		-		(1	)		(1	)
SQM North America Corp.		124,679		21,085		107,801		1,638		167,628		(1,018	)		(1,018	)
RS Agro Chemical Trading Corporation A.V.V.		5,155		-		88		-		-		(20	)		(20	)
Nitratos Naturais do Chile Ltda.		-		128		3,109		-		-		250			250
Nitrate Corporation of Chile Ltd.		5,076		-		-		-		-		-			-
SQM Corporation N.V.		7,696		56,356		3,607		-		-		(27,430	)		(27,430	)
SQM Perú S.A.		25		-		83		-		-		(7	)		(7	)
SQM Ecuador S.A.		26,490		918		23,074		59		25,085		(844	)		(844	)
SQM Brasil Ltda.		217		1		508		2,111		-		84			84
Subtotal		2,709,136		3,049,491		2,301,953		380,770		1,529,880		197,797			196,671

50

Notes to the Consolidated Interim Financial Statements
September 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		-		-		1,663			1,663
SQM Japan Co. Ltd.		25,122		243		21,926		255		48,003		314			314
SQM Europe N.V.		456,357		3,844		399,930		2,411		492,922		(19,743	)		(19,743	)
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		153,305		741			741
SQM Investment Corporation N.V.		13,965		132,994		5,434		864		-		1,877			1,877
Royal Seed Trading Corporation A.V.V.		21		-		18,851		-		-		(33	)		(33	)
SQM Lithium Specialties LLP		15,746		3		1,264		-		-		(3	)		(3	)
Comercial Caimán Internacional S.A.		258		-		1,122		-		-		1			1
SQM France S.A.		345		6		114		-		-		-			-
Administración y Servicios Santiago S.A. de C.V.		221		47		350		188		2,012		63			63
SQM Nitratos México S.A. de C.V.		141		13		77		20		715		8			8
Soquimich European Holding B.V.		5,046		172,956		245		-		-		(27,262	)		(27,262	)
SQM Iberian S.A.		41,485		2,359		20,118		4		82,246		212			212
SQM Africa Pty Ltd.		47,069		1,420		37,636		-		40,144		(485	)		(485	)
SQM Oceania Pty Ltd.		3,951		-		1,516		-		2,435		285			285
SQM Beijing Commercial Co. Ltd.		12,086		30		9,942		-		13,538		51			51
SQM Thailand Limited		3,539		-		83		-		2,259		(213	)		(213	)
SQM Colombia SAS		11,621		176		11,653		-		10,229		(378	)		(378	)
SQM International		31,998		923		17,374		4,027		92,727		1,649			1,649
SQM Shanghai Chemicals Co. Ltd.		84,318		379		79,482		-		42,129		440			440
SQM Australia Pty Ltd.		21,749		130,152		4,306		158		-		(1,602	)		(1,602	)
SQM Korea LLC		587		122		42		-		-		-			-
SQM Holland B.V.		3,767		16,248		460		4		-		(54	)		(54	)
Subtotal		932,929		500,388		725,132		9,903		982,664		(42,434	)		(42,434	)
Total		3,642,065		3,549,879		3,027,085		390,673		2,512,544		155,477			154,351

51

Notes to the Consolidated Interim Financial Statements
September 30, 2021

7.3 Background on non-controlling interests

			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	% of interests in the ownership held by non-controlling interests		As of September 30, 2021	As of September 30, 2020		As of September 30, 2021		As of September 30, 2020		As of September 30, 2021	As of September 30, 2020
			ThUS$	ThUS$		ThUS$		ThUS$		ThUS$	ThUS$
SQM Potasio S.A.	0.0000001	%	-	-		-		-		-	-
Ajay SQM Chile S.A.	49.00000	%	778	555		8,967		8,795		-	277
Soquimich Comercial S.A.	39.36168	%	4,498	1,996		30,501		36,294		6,466	3,965
Comercial Agrorama Ltda.	30.00000	%	35	(48	)	(643	)	(707	)	-	-
SQM Indonesia S.A.	20.00000	%	-	-		1		-		-	-
Agrorama S.A.	0.00000	%	-	-		-		-		-	-
SQM Thailand Limited	0,00400	%	-	-		-		1		-	-
Total			5,311	2,503		38,826		44,383		6,466	4,242

52

Notes to the Consolidated Interim Financial Statements
September 30, 2021

Note 8 Equity-accounted investees

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

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

	Equity-accounted investees		Share in profit (loss) of associates and joint ventures 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 total other comprehensive income of associates accounted for using the equity method for the period ended
Associates	As of September 30, 2021	As of December 31, 2020	As of September 30, 2021	As of September 30, 2020		As of September 30, 2021	As of September 30, 2020	As of September 30, 2021	As of September 30, 2020
	ThUS$	ThUS$	ThUS$	ThUS$		ThUS$	ThUS$	ThUS$	ThUS$
Abu Dhabi Fertilizer Industries WWL (**)	-	11,505	-	(156	)	-	-	-	(156	)
Doktor Tarsa Tarim Sanayi AS (*)	-	-	-	4,031		-	-	-	4,031
Ajay North America	15,976	14,468	2,196	1,908		-	-	2,196	1,908
Ajay Europe SARL	7,727	7,875	1,174	778		562	405	1,736	1,183
SQM Eastmed Turkey (*)	-	-	-	247		-	-	-	247
Kore Potash PLC (**)	-	26,175	-	158		-	92	-	250
Total	23,703	60,023	3,370	6,966		562	497	3,932	7,463

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

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

53

Notes to the Consolidated Interim Financial Statements
September 30, 2021

							Dividends received for the period ending
Associate	Description of the nature of the relationship	Address	Country of incorporation	Share of ownership in associates			As of September  30, 2021		As of September  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	%		822		1,429
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								1,814		2,626

54

Notes to the Consolidated Interim Financial Statements
September 30, 2021

8.2 Assets, liabilities, revenue and expenses of associates

	As of September 30, 2021				For the period ended as of September 30, 2021
	Assets		Liabilities					Other comprehensive		Comprehensive
Associate	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	402	5,072	7,806	96	-	(7,568	)	-		(7,568	)
Ajay North America	23,068	15,242	5,707	-	37,640	4,481		-		4,481
Ajay Europe SARL	21,308	1,318	7,171	-	36,593	2,349		(25	)	2,324
Total	44,778	21,632	20,684	96	74,233	(738	)	(25	)	(763	)

	As of December 31, 2020				For the period ended as of September 30, 2020
	Assets		Liabilities					Other comprehensive	Comprehensive
Associate	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	-	-	-	-	-	-		-	-
Ajay North America	18,513	15,749	4,737	-	33,896	3,893		-	3,893
Ajay Europe SARL	22,032	1,493	7,773	-	32,511	1,556		809	2,365
SQM Eastmed Turkey	-	-	-	-	-	-		-	-
Kore Potash PLC	5,691	124,112	786	-	-	(1,321	)	486	(835	)
Total	75,549	149,940	20,002	101	73,048	3,708		1,295	5,003

55

Notes to the Consolidated Interim Financial Statements
September 30, 2021

8.3 Other information

(a) Transactions for the period ended September 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 gains (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.

· As of September 30, 2021, an evaluation was made of the recovery of the investment on Abu Dhabi Fertilizer Industries WWL, reversing ThUS$ 960 of the recognized impairment in the prior quarter in other profits (losses) and recognizing a receivable of ThUS$ 9,668 in dividends receivable, leaving the investment value at zero.

(b) Transactions for the period ended September 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. This resulted in a transfer in equity of non-controlling interest to other reserves in an amount of ThUS$ 754.

· In the third quarter of 2020 SQM S.A. increased its shares in Kore Potash PLC to 20.26% as a result of the acquisition of 260,598,591 shares out of 584,753,846 shares issued for a capital increase corresponding to ThUS$ 1,679.

· In the third quarter of 2020, shares held in Doktor Tarsa Tarim and its subsidiaries were sold through Soquimich European Holdings B.V. at a value of ThUS$ 33,066, which brought about a loss of ThUS$ 11,408.

· In the third quarter of 2020, SQM Holland B.V., prepaid Plantacote N.V. a value of ThUS$ 10,541, corresponding to the acquisition of Plantacote N.V. assets, which are presented in the line “Other non-current financial assets.”

· In the third quarter of 2020, shares held in SQM Eastmed Turkey were sold through Soquimich European Holdings B.V. at a value of ThUS$ 618, which brought about a loss of ThUS$ 408.

56

Notes to the Consolidated Interim Financial Statements
September 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 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
Joint Venture	As of September 30, 2021	As of December 31, 2020	As of September 30, 2021	As of September 30, 2020		As of September 30, 2021		As of September 30, 2020		As of September 30, 2021	As of September 30, 2020
	ThUS$	ThUS$	ThUS$	ThUS$		ThUS$		ThUS$		ThUS$	ThUS$
SQM Vitas Fzco.	13,453	9,720	3,678	970		314		(1,689	)	3,992	(719	)
SQM Qingdao Star Corp Nutrition Co. Ltd. (*)	-	-	-	83		-		-		-	83
Pavoni & C. Spa	7,055	7,222	282	245		(233	)	7		49	252
Covalent Lithium Pty Ltd. (**)	-	-	-	216		47		39		47	255
Sichuan SQM Migao Chemical Fertilizers Co Ltd.	-	9,028	-	(560	)	-		-		-	(560	)
Total	20,508	25,970	3,960	954		128		(1,643	)	4,088	(689	)

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

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

57

Notes to the Consolidated Interim Financial Statements
September 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 September 30, 2021		As of December 31, 2020		As of September 30, 2021		As of September 30, 2020		As of September 30, 2021			As of September 30, 2020			As of September 30, 2021		As of September 30, 2020
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$		ThUS$
SQM Vitas Brasil Agroindustria (1)		4,719		3,511		2,862		311		(313	)		(1,875	)		2,549		(1,564	)
SQM Vitas Perú S.A.C. (1)		3,617		1,659		817		397		-			-			817		397
Total		8,336		5,170		3,679		708		(313	)		(1,875	)		3,366		(1,167	)

The companies are subsidiaries of:

SQM Vitas Fzco.

						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 September 30, 2021	As of September 30, 2020
						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

58

Notes to the Consolidated Interim Financial Statements
September 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 September 30, 2021	As of September 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.

59

Notes to the Consolidated Interim Financial Statements
September 30, 2021

9.2 Assets, liabilities, revenue and expenses from joint ventures

	As of September 30, 2021								For the period ended September 30, 2021
	Assets				Liabilities								Other comprehensive			Comprehensive
Joint Venture	Current		Non-current		Current		Non-current		Revenue		Net gain (loss)		income			income
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQM Vitas Fzco.		211		27,176		482		-		-		7,356		-			7,356
SQM Vitas Brasil Agroindustria		54,572		4,764		42,055		-		75,799		5,726		(627	)		5,099
SQM Vitas Perú S.A.C.		28,809		7,480		25,427		965		32,372		1,635		-			1,635
Pavoni & C. Spa		13,533		6,919		12,096		659		15,925		563		(466	)		97
Covalent Lithium Pty Ltd.		1,197		2,065		3,643		1,110		-		73		93			166
Total		98,322		48,404		83,703		2,734		124,096		15,353		(1,000	)		14,353

	As of December 31, 2020									For the period ended September 30, 2020
	Assets					Liabilities									Other comprehensive			Comprehensive
Joint Venture	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		-		-		(1,120	)		-			(1,120	)
SQM Vitas Fzco.		(496	)		20,431		496		-		-		1,940			-			1,940
SQM Vitas Brasil Agroindustria		40,064			5,527		33,410		-		62,871		621			(3,751	)		(3,130	)
SQM Vitas Perú S.A.C.		34,548			7,928		33,145		1,080		27,246		794			-			794
Pavoni & C. Spa		10,645			7,493		9,270		836		13,384		491			326			817
Covalent Lithium Pty Ltd.		1,418			2,131		2,823		910		-		432			45			477
Total		115,686			47,922		93,300		2,826		103,501		3,158			(3,380	)		(222	)

60

Notes to the Consolidated Interim Financial Statements
September 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 September 30, 2021		As of December 31, 2020		As of September 30, 2021		As of December 31, 2020		As of September 30, 2021		As of December 31, 2020
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		-		30		-		-		-		-
SQM Vitas Fzco.		4,005		4,251		-		-		-		-
SQM Vitas Brasil Agroindustria		3,877		4,065		12,002		6,820		-		-
SQM Vitas Perú S.A.C.		2,321		1,043		235		227		382		691
Pavoni & C. Spa		321		767		7,025		5,573		-		-
Covalent Lithium Pty Ltd.		490		653		1,082		953		-		-
Total		11,014		10,809		20,344		13,573		382		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 September 30, 2021			As of September 30, 2020			As of September 30, 2021			As of September 30, 2020			As of September 30, 2021			As of September 30, 2020
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		-			(549	)		-			-			-			154
SQM Vitas Fzco.		-			-			-			(2	)		-			-
SQM Qingdao Star Corp Nutrition Co. Ltd.		-			-			-			-			-			-
SQM Vitas Brasil Agroindustria		(211	)		(213	)		(260	)		(536	)		(840	)		-
SQM Vitas Perú S.A.C.		(266	)		(167	)		(232	)		(247	)		(396	)		(168	)
Pavoni & C. Spa		(186	)		(184	)		(239	)		(242	)		(271	)		(309	)
Covalent Lithium Pty Ltd.		(118	)		(142	)		(41	)		(16	)		-			432
Total		(781	)		(1,255	)		(772	)		(1,043	)		(1,507	)		109

61

Notes to the Consolidated Interim Financial Statements
September 30, 2021

9.4 Disclosure of interests in joint ventures

a) Transactions for the period ended September 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 September 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.

· In the second quarter of 2020, shares held in Arpa Speciali S.R.L. were sold through SQM Pavoni & C., SpA. At a value of ThUS$ 56, which brought about a loss of ThUS$ 125. An initial installment of ThUS$ 17 was charged, leaving two pending installments of ThUS$ 20 maturing June 30, 2021 and June 30, 2022. The pending installments are classified as other accounts receivable.

· In the third quarter of 2020, shares held in Coromandel SQM India were sold through Soquimich European Holdings B.V. at a value of ThUS$ 1,604, which brought about a loss of ThUS$ 643.

· As of the third quarter SQM Qingdao-Star Co.,Ltd. is held available for sale, therefore suspending the shareholding method, and the part proportional to profit or loss is no longer recognized. This is presented in the line “Non-current assets or disposal groups classified as held for sale.”

9.5 Joint Ventures

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 March 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.

62

Notes to the Consolidated Interim Financial Statements
September 30, 2021

Note 10 Cash and cash equivalents

10.1 Types of cash and cash equivalents

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

Cash	As of September 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Cash on hand		46		54
Cash in banks		914,694		244,548
Other demand deposits		11,614		2,527
Total Cash		926,354		247,129

Cash equivalents	As of September 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Short-term deposits, classified as cash equivalents		358,267		51,595
Short-term investments, classified as cash equivalents		580,422		210,378
Total cash equivalents		938,689		261,973
Total cash and cash equivalents		1,865,043		509,102

10.2 Short-term investments, classified as cash equivalents

As of September 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 September 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Legg Mason - Western Asset Institutional Cash Reserves		256,642		107,625
JP Morgan US dollar Liquidity Fund Institutional		323,780		102,753
Total		580,422		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.

63

Notes to the Consolidated Interim Financial Statements
September 30, 2021

10.3 Information on cash and cash equivalents by currency

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

Currency	As of September 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Peso (*)		13,284		7,190
Dollar		1,777,446		454,402
Euro		2,531		17,144
Mexican Peso		1,608		1,378
South African Rand		2,864		14,286
Japanese Yen		1,461		1,646
Peruvian Sol		5		3
Indian rupee		-		6
Chinese Yuan		12,940		11,597
Indonesian rupee		3		3
Pound Sterling		3		19
Australian Dollar		52,888		1,411
South Korean won		8		16
Dirham United Arab Emirates		1		-
Polish Zloty		1		1
Total		1,865,043		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 September 30, 2021, and, December 31, 2020 pledged assets are as follows

Restricted cash balances	As of September 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Isapre Norte Grande Ltda.		609		731
Total		609		731

64

Notes to the Consolidated Interim Financial Statements
September 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 September 30, 2021
								ThUS$		ThUS$		ThUS$
Banco crédito e inversiones	Fixed term	Peso		0.14	%	09-30-2021	10-13-2021		8,375		-		8,375
Sumitomo Mitsui Banking	Fixed term	Dollar		0.07	%	09-30-2021	10-15-2021		100,000		-		100,000
Sumitomo Mitsui Banking	Fixed term	Dollar		0.09	%	09-30-2021	10-29-2021		100,000		-		100,000
Sumitomo Mitsui Banking	Fixed term	Dollar		0.11	%	09-30-2021	11-30-2021		120,000		-		120,000
Banco crédito e inversiones	Fixed term	Dollar		0.24	%	08-13-2021	10-08-2021		2,500		1		2,501
Banco crédito e inversiones	Fixed term	Dollar		0.22	%	08-23-2021	10-01-2021		6,000		2		6,002
Banco Itaú Corpbanca	Fixed term	Dollar		0.48	%	08-30-2021	10-29-2021		2,500		1		2,501
Banco Itaú Corpbanca	Fixed term	Dollar		0.48	%	08-31-2021	10-29-2021		2,000		1		2,001
Banco Santander	Fixed term	Dollar		0.20	%	09-02-2021	11-05-2021		2,500		-		2,500
Banco Santander	Fixed term	Dollar		0.20	%	09-03-2021	11-02-2021		2,000		-		2,000
Banco Itaú Corpbanca	Fixed term	Dollar		0.47	%	09-07-2021	10-29-2021		1,300		-		1,300
Banco Estado	Fixed term	Dollar		0.06	%	09-16-2021	11-30-2021		3,500		-		3,500
Banco Santander	Fixed term	Dollar		0.33	%	09-21-2021	10-29-2021		2,000		-		2,000
Banco Itaú Corpbanca	Fixed term	Dollar		0.45	%	09-23-2021	10-25-2021		1,000		-		1,000
Banco Scotiabank	Fixed term	Dollar		0.05	%	09-28-2021	10-29-2021		3,500		-		3,500
Banco Santander	Fixed term	Dollar		0.39	%	09-30-2021	11-15-2021		1,000		-		1,000
Banco Itaú Corpbanca	Fixed term	Dollar		1.80	%	09-30-2021	11-30-2021		87		-		87
Total									358,262		5		358,267

65

Notes to the Consolidated Interim Financial Statements
September 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

66

Notes to the Consolidated Interim Financial Statements
September 30, 2021

Note 11 Inventories

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

Type of inventory	As of September 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Raw material		4,245		10,694
Production supplies		38,344		31,007
Products-in-progress		527,561		487,830
Finished product		541,782		563,497
Total		1,111,932		1,093,028

As of September 30, 2021, and December 31, 2020, the Company held caliche stockpiles, solutions in solar ponds and intermediary salts amounting ThUS$ 448,992 and ThUS$ 422,535, respectively (including products in progress).

As of September 30, 2021, bulk inventories recognized within work in progress and finished goods were ThUS$ 124,212 and ThUS$ 127,721 respectively.

As of September 30, 2021, and December 2020, inventory allowances recognized, amounted to ThUS$ 76,187 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 September 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Raw material and supplies for production		1,216		1,934
Products-in-progress		61,329		66,122
Finished product		13,642		12,874
Total		76,187		80,930

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

67

Notes to the Consolidated Interim Financial Statements
September 30, 2021

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

Conciliation	As of September 30, 2021			As of December 31, 2020
	ThUS$			ThUS$
Beginning balance		80,930			88,174
Increase in Lower Value (1)		(3,866	)		(5,404	)
Additional Provision Differences of Inventory (2)		-			(704	)
Increase / Decrease eventual differences and others (3)		72			1,244
Provision Used		(949	)		(2,380	)
Total changes		(4,743	)		(7,244	)
Final balance		76,187			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
September 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
September 30, 2021

12.3 Detailed identification of related parties and subsidiaries

As of September 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	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
September 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 September 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 4 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 September 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 September 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 September 30, 2021 ThUS$		As of September 30, 2020 ThUS$
Foreign	Doktor Tarsa Tarim Sanayi AS	Associate	Turkey	Sale of products		-		4,471
Foreign	Ajay Europe S.A.R.L.	Associate	France	Sale of products		27,661		37,466
Foreign	Ajay Europe S.A.R.L.	Associate	France	Dividends		992		1,197
Foreign	Ajay North America LL.C.	Associate	USA	Sale of products		22,213		31,088
Foreign	Ajay North America LL.C.	Associate	USA	Dividends		822		1,429
Foreign	SQM Vitas Brasil Agroindustria	Other related parties	Brazil	Sale of products		36,004		39,917
Foreign	SQM Vitas Perú S.A.C.	Other related parties	Peru	Sale of products		8,108		17,387
Foreign	Coromandel SQM India	Joint venture	India	Sale of products		1,937		1,515
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		-		1,375
Foreign	Plantacote NV	Other related parties	Belgium	Sale of products		-		5,869
Foreign	Pavoni & CPA	Joint venture	Italy	Sale of products		701		2,250
Foreign	SQM Eastmed Turkey	Associate	Turquía	Sale of products		-		162
Foreign	Covalent Lithium Pty Ltd	Joint venture	Australia	Engineering services		-		-
Chile	Banco de Chile	Other related parties	Chile	Service provider		13,917		-
Chile	Empresa Nacional de Telecomunicaciones	Other related parties	Chile	Service provider		697		-

73

Notes to the Consolidated Interim Financial Statements September 30, 2021

12.5 Trade receivables due from related parties, current:

Tax ID No	Name	Nature	Country of origin	Currency	As of September 30, 2021	As of  December 31, 2020
					ThUS$	ThUS$
Foreign	Ajay Europe S.A. R.L.	Associate	France	Euro	3,614	4,625
Foreign	Ajay North America LLC.	Associate	United States of America	Dollar	4,108	2,956
Foreign	Abu Dhabi Fertilizer Industries WWL *	Associate	United Arab Emirates	United Arab Emirates Dirham	9,668	595
96.511.530-7	Soc. de Inversiones Pampa Calichera	Other related parties	Chile	Dollar	5	6
Foreign	SQM Vitas Brasil Agroindustria	Other related parties	Brazil	Dollar	27,965	24,335
Foreign	SQM Vitas Perú S.A.C.	Other related parties	Peru	Dollar	14,767	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	1,837	1,095
Foreign	Covalent Lithium Pty Ltd.	Joint venture	Australia	Australian dollar	-	84
Foreign	Sichuan SQM Migao Chemical Fertilizers Co Ltd.	Joint venture	China	Dollar	-	4,464
Total					62,196	62,601

As of September 30, 2021 and December 31, 2020, receivables are net of provision for ThUS$ 1,367 and ThUS$ 7,545. As of December 31, 2020, the most significant balance corresponds to the net presentation of provision of receivables of Sichuan SQM Migao Fertilizer Co Ltd. For ThUS$ 6,502.

12.6 Trade payables due to related parties, current:

Tax ID No	Company	Nature	Country of origin	Currency	As of September 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	342	324
Total					342	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 September 30, 2021

Note 13 Financial instruments

13.1     Types of other current and non-current financial assets

Description of other financial assets	As of September 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Financial assets at amortized cost (1)		746,132		345,459
Derivative financial instruments
- For hedging		3,564		-
- Non-hedging (2)		4,578		2,610
Total other current financial assets		754,274		348,069
Financial assets at fair value through other comprehensive income (4) (5)		10,342		14,569
Derivative financial instruments
- For hedging		-		37,276
Other financial assets at amortized cost		94		80
Total other non-current financial assets		10,436		51,925

Institution	As of September 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Banco de Crédito e Inversiones		55,033		185,589
Banco Santander (3)		150,199		45,168
Banco Itau Corpbanca		174,913		49,006
Banco de Chile		80,101		-
Scotiabank Sud Americano		283,385		31,668
Itau Chile Corredora de Bolsa Ltda		2,501		-
JP Morgan Asset Management		-		34,028
Total		746,132		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 September 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 September 30, 2021

13.2     Trade and other receivables

	As of September 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		440,331		-		440,331		313,265		-		313,265
Prepayments, current		48,313		-		48,313		19,900		-		19,900
Other receivables, current		12,864		6,316		19,180		32,041		11,165		43,206
Total trade and other receivables		501,508		6,316		507,824		365,206		11,165		376,371

See discussion about credit risk in Note 4.2.

	As of September 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	452,176	(11,845	)	440,331	327,586	(14,321	)	313,265
Prepayments, current	49,098	(785	)	48,313	20,684	(784	)	19,900
Other receivables, current	17,587	(4,723	)	12,864	36,664	(4,623	)	32,041
Other receivables, non-current	6,316	-		6,316	11,165	-		11,165
Total trade and other receivables	525,177	(17,353	)	507,824	396,099	(19,728	)	376,371

76

Notes to the Consolidated Interim Financial Statements September 30, 2021

(a) Portfolio analysis

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

As of September 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		1,481		430,106		2		122
1 - 30 days		98		13,078		2		1
31 - 60 days		18		1,881		-		-
61 - 90 days		5		284		-		-
91 - 120 days		5		109		-		-
121 - 150 days		3		6		3		5
151 - 180 days		5		114		-		-
181 - 210 days		1		1		3		22
211 - 250 days		1		1		2		13
>250 days		147		5,420		121		1,013
Total		1,764		451,000		133		1,176

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 September 30, 2021

(b) Estimate for doubtful accounts

As of September 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	%	8	%	36	%	46	%	91	%	-	-
Total Gross Book Value	430,228		13,079		1,881		284		6,704		452,176	63,563
Deterioration Estimate	3,904		1,026		685		131		6,099		11,845	1,367

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 September 30, 2021, and December 31, 2020, movements in provisions are as follows:

Provisions	As of September 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		(282	)		(4,684	)
Write-off of receivables		(6,876	)		(750	)
Difference in exchange rate		(1,396	)		-
Impairment of Accounts Receivable Provision at the end of the Period		18,719			27,273
(1) Trade and other Receivables Provision		11,845			14,321
(2) Current Other Receivables Provision		5,508			5,407
(3) Provision Trade receivables with related parties, current		1,367			7,545
Recovery of Insurance		210			347
Impairment of Accounts Receivable Provision		18,719			27,273
Renegotiated Provision		1,070			1,728
Non-renegotiated Provision		17,649			25,545

78

Notes to the Consolidated Interim Financial Statements September 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 September 30, 2021	Assets		Liabilities		Total Realized			Hedging Reserve in Gross Equity (1)
Type of Instrument: Cross currency interest rate swaps UF/CLP
Cash flow hedge derivatives
short term		3,564		8,654
long term		-		70,140
Underlying Debt Hedge		3,564		78,794		(26,175	)		(49,056	)
Type of Instrument: Forwards/Options
Non-hedge derivatives with effect on income
short term		4,578		2,972
Underlying Investments Hedge		4,578		2,972		(2,871	)		-
Total Instrumentos		8,142		81,766		(29,046	)		(49,056	)

As of December 31, 2020	Assets		Liabilities		Total Realized			Hedging Reserve in Gross Equity (1)
Type of Instrument: Cross currency interest rate swaps UF/CLP
Cash flow hedge derivatives
short term		-		26,699
long term		37,276		13,511
Underlying Debt Hedge		37,276		40,210		(9,154	)		(6,233	)
Type of Instrument: Forwards/Options
Non-hedge derivatives with effect on income
short term		2,610		5,393
Underlying Investments Hedge		2,610		5,393		1,178			-
Total Instrumentos		39,886		45,603		(7,976	)		6,233

(1) See underlying hedges in Note 4.2 letters b) and d) and movement of cash flow hedge reserve in Note 20.4.      

The balances in the column “Total Realized” consider the intermediate effects of the contracts that were in place between January 1 and September 30, 2021 and January 1 and December 31, 2020. 

Hedging Effect in Profit and Equity for the period as of September 30, 2021	Variation Total			Effect on Profit or Loss			Hedge Reserves from Variation in Gross Hedges
Analysis Effect by Type of Coverage
Hedging in Current and Non-Current Assets		(33,712	)
Hedging in Current and Non-Current Liabilities		38,584
Total Hedge Effect in Profit or Loss and Equity for the period		4,872			(17,021	)		21,893

79

Notes to the Consolidated Interim Financial Statements September 30, 2021

Derivative contract maturities are detailed as follows:

	Contract amount
Series	ThUS$		Currency	Maturity date
H		119,938	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.

13.4     Financial liabilities

Other current and non-current financial liabilities

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

Other current and non-current financial	As of September 30, 2021						As of December 31, 2020
liabilities	Currents		Non-Current		Total		Currents		Non-Current		Total
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Liabilities at amortized cost
Bank borrowings		309		69,554		69,863		82		69,376		69,458
Obligations with the public		33,086		2,449,371		2,482,457		36,781		1,816,626		1,853,407
Derivative financial instruments
For hedging		8,654		70,140		78,794		26,699		13,511		40,210
Non-Hedging		2,972		-		2,972		5,393		-		5,393
Total		45,021		2,589,065		2,634,086		68,955		1,899,513		1,968,468

Current and non-current bank borrowings

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

Current and non-current bank borrowings	As of September 30, 2021		As of December 31, 2020
	ThUS$		ThUS$
Current borrowings		309		82
Non-current borrowings		69,554		69,376
Current and non-current bank borrowings		69,863		69,458

80

Notes to the Consolidated Interim Financial Statements September 30, 2021

a)            Bank borrowings, current:

As of September 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

0.87

%

1.27

%

Debtor

Creditor

Nominal amounts as of September 30, 2021

Current amounts as of September 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

-

-

-

309

-

309

-

309

Total

-

-

-

309

-

309

-

309

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 
September 30, 2021

b) Unsecured obligations, current:

As of September 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		1.56	%		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		3.46	%		4.25	%
93.007.000-9	SQM S.A.	Chile		-	MUS$400	07/22/2021	US$	Semiannual	Upon maturity		4.00	%		4.25	%
93.007.000-9	SQM S.A.	Chile		-	MUS$700	03/10/2021	US$	Semiannual	Upon maturity		3.62	%		3.50	%
93.007.000-9	SQM S.A.	Chile		564	H	07/05/2021	UF	Semiannual	Semiannual		1.37	%		4.90	%
93.007.000-9	SQM S.A.	Chile		699	O	08/01/2021	UF	Semiannual	Upon maturity		2.06	%		3.80	%
93.007.000-9	SQM S.A.	Chile		563	P	07/15/2021	UF	Semiannual	Upon maturity		2.04	%		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 September 30, 2021						Carrying amounts of maturities as of September 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		-		1,884		1,884		-		1,884		1,884		(433	)		1,451
SQM S.A.	Chile	MUS$300		5,347		-		5,347		5,347		-		5,347		(614	)		4,733
SQM S.A.	Chile	MUS$450		7,597		-		7,597		7,597		-		7,597		(679	)		6,918
SQM S.A.	Chile	MUS$400		-		3,211		3,211		-		3,211		3,211		(237	)		2,974
SQM S.A.	Chile	MUS$700		-		680		680		-		680		680		(515	)		165
SQM S.A.	Chile	H		-		14,785		14,785		-		14,785		14,785		(172	)		14,613
SQM S.A.	Chile	O		-		343		343		-		343		343		(82	)		261
SQM S.A.	Chile	P		-		747		747		-		747		747		(12	)		735
SQM S.A.	Chile	Q		1,257		-		1,257		1,257		-		1,257		(21	)		1,236
Total				14,201		21,650		35,851		14,201		21,650		35,851		(2,765	)		33,086

82

Notes to the Consolidated Interim Financial Statements 
September 30, 2021

Debtor								Periodicity
Tax I 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 
September 30, 2021

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

The following table shows the details of bank loans as of September 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

1.96

%

1.27

%

Debtor	Creditor	Nominal non-current maturities as of September 30, 2021								Carrying amounts of maturities as of September 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		(446	)		69,554
Total			-		70,000		-		70,000		-		70,000		-		70,000		(446	)		69,554

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 
September 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 September 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		3.42	%		3.63	%
93.007.000-9	SQM S.A.		Chile		-		MUS$450	05/07/2029	US$		Semiannual	Upon maturity		4.10	%		4.25	%
93.007.000-9	SQM S.A.		Chile		-		MUS$400	01/22/2050	US$		Semiannual	Upon maturity		4.19	%		4.25	%
93.007.000-9	SQM S.A.		Chile		-		MUS$700	09/10/2051	US$		Semiannual	Upon maturity		3.43	%		3.50	%
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		3.69	%		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 September 30, 2021												Carrying amounts of maturities as of September 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		(1,011	)		248,989
	MUS$300		300,000		-		-		-		-		300,000		300,000		-		-		-		-		300,000		(321	)		299,679
	MUS$450		-		-		-		-		450,000		450,000		-		-		-		-		450,000		450,000		(4,512	)		445,488
	MUS$400		-		-		-		-		400,000		400,000		-		-		-		-		400,000		400,000		(6,406	)		393,594
	MUS$700		-		-		-		-		700,000		700,000		-		-		-		-		700,000		700,000		(14,898	)		685,102
	H		-		-		-		-		101,071		101,071		-		-		-		-		101,071		101,071		(1,249	)		99,822
	O		-		-		-		-		55,589		55,589		-		-		-		-		55,589		55,589		(843	)		54,746
	P		-		-		-		-		111,177		111,177		-		-		-		-		111,177		111,177		(68	)		111,109
	Q		-		-		-		-		111,178		111,178		-		-		-		-		111,178		111,178		(336	)		110,842
	Total		300,000		-		250,000		-		1,929,015		2,479,015		300,000		-		250,000		-		1,929,015		2,479,015		(29,644	)		2,449,371

85

Notes to the Consolidated Interim Financial Statements 
September 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 
September 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 equivalent to 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.

2020

During 2020, the amortization of principal amounted to UF 363,636.36, equivalent to ThUS$ 13,296 with an associated cross currency swap hedge income of ThUS$ 814.

2021

During 2021, amortization of principal amounted to UF 363,636.36, equivalent to ThUS$ 14,870 with an associated cross currency swap hedge loss of ThUS$ 760.

For more details on restrictions, See Note 20.1

For the periods ended September 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	September 30, 2021		December 31, 2020
	ThUS$		ThUS$
Payments of interest, Series H bonds		6,661		6,601
CCS Coverage		1,598		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 September 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	September 30, 2021		December 31, 2020
	ThUS$		ThUS$
Interest payment		-		6,875

87

Notes to the Consolidated Interim Financial Statements 
September 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 with respect a restrictions in Note 20.1

For the periods ended September 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	September 30, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest, Series O bonds		2,225		2,070
CCS Coverage		438		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 September 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	September 30, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest		5,438		10,875

88

Notes to the Consolidated Interim Financial Statements 
September 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 September 30, 2021 and December 31, 2020, the following payments have been made.

Payments made	September 30, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest		10,938		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 September 30, 2021 and December 31, 2020, the following payments and their associated CCS have been made:

Payments made	September 30, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest series P		3,835		3,534
CCS Coverage		3,119		3,439

89

Notes to the Consolidated Interim Financial Statements 
September 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 UF, 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 periods ended September 30, 2021 and December 31, 2020, the following payments have been made:

Payments made	September 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 September 30, 2021 and December 31, 2020, the following payments have been made:

Payments made	September 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.

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

Payments made	September 30, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest		17,000		8,500

90

Notes to the Consolidated Interim Financial Statements
September 30, 2021

(x) Single series seventh issue bonds MUS$ 700

On September 10, 2021, the Company has placed unsecured bonds in international markets for US$ 700 million, pursuant to Rule 144-A and Regulation S of the Securities and Exchange Commission, at an annual interest rate of 3.50 % and a maturity in the year 2051.

For the periods ended on September 30, 2021 and December 31, 2020, no payments have been made.

91

Notes to the Consolidated Interim Financial Statements
September 30, 2021

13.5 Trade and other payables

a) Details trade and other payables

	As of September 30, 2021						As of December 31, 2020
Details trade and other payables	Current		Non-current		Current		Current		Non-current		Total
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Accounts payable		259,613		-		259,613		203,346		-		203,346
Other accounts payable		529		-		529		587		-		587
Prepayments from customers		-		11,644		11,644		-		4,027		4,027
Total		260,142		11,644		271,786		203,933		4,027		207,960

As of September 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 September 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		131,734		1,757		2,112		8		108		11,644		147,363
Services		77,828		1,443		55		-		81		-		79,407
Others		31,044		13		-		-		-		-		31,057
Total		240,606		3,213		2,167		8		189		11,644		257,827

	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 September 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		954		1,375		353		32		172		-		2,886
Services		4,419		79		261		400		1,033		-		6,192
Others		2,604		270		70		65		1,343		-		4,352
Total		7,977		1,724		684		497		2,548		-		13,430

	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 September 30, 2021, the Company has purchase orders amounting to ThUS$ 97,681 and ThUS$ 55,516 as of December 31, 2020.

92

Notes to the Consolidated Interim Financial Statements
September 30, 2021

13.6 Financial asset and liability categories

a) Financial Assets

	As of September 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		1,865,043		-		1,865,043		509,102		-		509,102
Trade receivables due from related parties at amortized cost		62,196		-		62,196		62,601		-		62,601
Financial assets measured at amortized cost		746,132		94		746,226		345,459		80		345,539
Loans and receivables measured at amortized cost		501,508		6,316		507,824		365,206		11,165		376,371
Total financial assets measured at amortized cost		3,174,879		6,410		3,181,289		1,282,368		11,245		1,293,613
Financial instruments for hedging purposes		3,564		-		3,564		-		37,276		37,276
Financial instruments held for trading		4,578		-		4,578		2,610		-		2,610
Financial assets classified as available for sale at fair value through equity		-		10,342		10,342		-		14,569		14,569
Total financial assets at fair value		8,142		10,342		18,484		2,610		51,845		54,455
Total financial assets		3,183,021		16,752		3,199,773		1,284,978		63,090		1,348,068

93

Notes to the Consolidated Interim Financial Statements
September 30, 2021

b) Financial Liabilities

	As of September 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		8,654		70,140		78,794		26,699		13,511		40,210
Held for trading at fair value through profit or loss		2,972		-		2,972		5,393		-		5,393
Financial liabilities at fair value		11,626		70,140		81,766		32,092		13,511		45,603
Bank loans		309		69,554		69,863		82		69,376		69,458
Obligations to the public		33,086		2,449,371		2,482,457		36,781		1,816,626		1,853,407
Lease Liabilities		7,533		47,560		55,093		5,528		25,546		31,074
Trade and other payables		260,142		11,644		271,786		203,933		4,027		207,960
Trade payables due to related parties		342		-		342		606		-		606
Total financial liabilities at amortized cost		301,412		2,578,129		2,879,541		246,930		1,915,575		2,162,505
Total financial liabilities		313,038		2,648,269		2,961,307		279,022		1,929,086		2,208,108

94

Notes to the Consolidated Interim Financial Statements
September 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 maximize 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.

95

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

	As of September 30, 2021						Measurement Methodology
Fair value measurement of	Carrying Amount at Amortized Cost		Fair value (informative)		Book Value Fair value		Level 1		Level 2		Level 3
assets and liabilities	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Financial Assets
Cash and cash equivalents		1,865,043		1,865,043		-		-		1,865,043		-
Other current financial assets
- Time deposits		746,132		746,132		-		-		746,132		-
- Derivative financial instruments
- Forwards		-		-		3,752		-		3,752		-
- Options		-		-		826		-		826		-
- Hedging assets		-		-		-		-		-		-
- Swaps		-		-		3,564		-		3,564		-
Non-current accounts receivable		6,316		6,316		-		-		-		-
Other non-current financial assets:
- Other		94		94		-		-		94		-
- Equity instruments		-		-		10,342		10,342		-		-
- Hedging assets – Swaps		-		-		-		-		-		-
Other current financial liabilities
- Bank borrowings		309		309		-		-		309		-
- Derivative instruments		-		-		-		-		-		-
- Forwards		-		-		2,931		-		2,931		-
- Options		-		-		42		-		42		-
-Hedging liabilities – Swaps		-		-		8,654		-		8,654		-
-Swaps hedges, investments		-		-		-		-		-		-
- Unsecured obligations		33,086		33,086		-		-		33,086		-
- Current lease liabilities		7,533		7,533		-		-		7,533		-
Other non-current financial liabilities
- Bank borrowings		69,554		70,584		-		-		70,584		-
- Unsecured obligations		2,449,371		2,877,742		-		-		2,877,742		-
- Non-current hedging liabilities		-		-		70,140		-		70,140		-
- Non-current lease liabilities		47,560		33,504		-		-		33,504		-

96

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

	As of December 31, 2020						Measurement Methodology
Fair value measurement of	Carrying Amount at Amortized Cost		Fair value (informative)		Book Value Fair value		Level 1		Level 2		Level 3
assets and liabilities	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		-

97

Notes to the Consolidated Interim Financial Statements
September 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 for book value

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 (Peso/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.

98

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

13.9            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. and includes current and non-current lease liabilities to complete its analysis.

	As of September 30, 2021			As of December 31, 2020
Net debt	ThUS$			ThUS$
Cash and cash equivalents		1,865,043			509,102
Other current financial assets		754,274			348,069
Other non-current financial hedge assets		-			37,276
Other current financial liabilities		(45,021	)		(68,955	)
Lease liabilities, current		(7,533	)		(5,528	)
Other non-current financial liabilities		(2,589,065	)		(1,899,513	)
Non-current Lease liabilities		(47,560	)		(25,546	)
Total		(69,862	)		(1,105,095	)

				From cash flow									Not from cash flow
Cash and	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 September 30, 2021
cash equivalents	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Obligations with the public and bank loans		(1,922,864	)		(685,130	)		58,235			15,456			-			40,564			(58,581	)		(2,552,320	)
Current and non-current lease liabilities		(31,074	)		6,254			1,110			-			-			-			(31,383	)		(55,093	)
Financial instruments derived from hedging		18,070			(760	)		6,063			-			(40,619	)		-			(61,548	)		(78,794	)
Financial instruments derived from non-hedging		-			-			-			-			-			-			-			-
Current and non-current financial liabilities		(1,935,868	)		(679,636	)		65,408			15,456			(40,619	)		40,564			(151,512	)		(2,686,207	)
Cash and cash equivalents		509,102			-			-			1,370,667			-			(14,726	)		-			1,865,043
Deposits that do not qualify as cash and cash equivalents		345,459			-			(2,967	)		417,984			-			(17,197	)		2,853			746,132
Derivatives from hedge assets		(21,004	)		-			-			9,473			14,418			-			677			3,564
Derivatives from other financial non-hedge assets		(2,784	)		-			-			(199	)		4,589			-			-			1,606
Total		(1,105,095	)		(679,636	)		62,441			1,813,381			(21,612	)		8,641			(147,982	)		(69,862	)

99

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

Note 14 Right-of-use assets and Lease liabilities

14.1      Right-of-use assets

Reconciliation of changes in right-of-use assets as of	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
September 30, 2021, net value	ThUS$			ThUS$			ThUS$		ThUS$			ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
Opening Balance		-			23,377			-		2,479			-		-		-		-		-		-		-		4,168			30,024
Additions		17,552			1,209			-		-			-		-		-		-		-		-		-		12,048			30,809
Depreciation expenses		(51	)		(2,703	)		-		(573	)		-		-		-		-		-		-		-		(3,081	)		(6,408	)
Other increases / decreases		-			-			-		-			-		-		-		-		-		-		-		(536	)		(536	)
Total changes		17,501			(1,494	)		-		(573	)		-		-		-		-		-		-		-		8,431			23,865
Closing balance		17,501			21,883			-		1,906			-		-		-		-		-		-		-		12,599			53,889

Reconciliation of changes in right-of-use assets as of	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
December 31, 2020, net value	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.

100

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

14.2 Lease liabilities

	As of September 30, 2021				As of December 31, 2020
	Current		Current		Current		Non-Current
Lease liabilities	ThUS$		ThUS$		ThUS$		ThUS$
Lease liabilities		7,533		47,560		5,528		25,546
Total		7,533		47,560		5,528		25,546

i) Current and non-current lease liabilities

Debtor			Creditor			Contract	Type of	Maturity	Effective
Tax ID No.	Company	Country	TAX ID No.	Supplier	Country	indexation unit	amortization	date	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	%
79.626.800-K	SQM Salar S.A.	Chile	76.158.471-5	Sociedad Inmobiliaria Amaru SpA	Chile	UF	Monthly	07-11-2023		2.00	%
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	%
79.947.100-0	SQM Industrial S.A.	Chile	76.320.186-4	Tecno Fast S.A.	Chile	UF	Monthly	12-31-2022		1.44	%
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	%

101

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

Debtor			Creditor			Contract	Type of	Maturity	Effective
Tax ID No.	Company	Country	TAX ID No.	Supplier	Country	indexation unit	amortization	date	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	%
76.359.919-1	Orcoma Estudios SpA	Chile	70.017.320-8	Obispado de Iquique	Chile	CLP	Monthly	07-12-2036		6.16	%
76.359.919-1	Orcoma Estudios SpA	Chile	73.190.800-1	Comunidad Indígena Aymara Pueblo de Pisiga Choque	Chile	UF	Monthly	07-12-2024		2.53	%
76.359.919-1	Orcoma Estudios SpA	Chile	6.848.218-6	Ruth del Carmen Cortez Maturana	Chile	CLP	Monthly	07-12-2031		7.44	%
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	%
Foreign	SQM Australia PTY	Australia	Extranjero	Ausco Modular Pty Limited	Australia	Australian dollar	Monthly	01-31-2023		5.00	%
Foreign	SQM Australia PTY	Australia	Extranjero	Western Australian Land Authority	Australia	Australian dollar	Monthly	08-31-2051		3.55	%

102

Notes to the Consolidated Interim Financial Statements September 30, 2021  

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

Debtor	Creditor	Nominal amounts as of September 30,2021									Amounts at amortized cost as of September 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			451			1,389			1,840
SQM Salar S.A.	Maquinaria Astudillo y Hermanos Limitada		100			300			400			89			270			359
SQM Salar S.A.	SKM Industrial Ltda.		202			337			539			193			330			523
SQM Salar S.A.	Maquinaria Astudillo y Hermanos Limitada		48			145			193			43			131			174
SQM Salar S.A.	Contrato Hotel Amaru		49			146			195			47			143			190
SQM Industrial S.A.	El Trovador S.A.		466			1,399			1,865			361			1,101			1,462
SQM Industrial S.A.	Sociedad Comercial Grandleasing Chile Ltda		180			540			720			167			508			675
SQM Industrial S.A.	Jungheinrich Rentalif SPA		29			88			117			26			81			107
SQM Industrial S.A.	Tecnofast		18			55			73			18			55			73
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
Orcoma Estudios SpA	Contrato Obispado de Iquique		1			4			5			1			2			3
Orcoma Estudios SpA	Contrato Indigena Aymara		1			4			5			1			4			5
Orcoma Estudios SpA	Contrato Ruth Cortez		1			3			4			1			2			3
Soquimich Comercial S.A.	Containers Operators S.A.		86			258			344			85			256			341
Soquimich Comercial S.A.	Muelles de Penco S.A.		799			124			923			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			126			384			510
SQM North America Corp.	Paces West LL.		55			166			221			44			135			179
SQM North America Corp.	Hawkins Nunmber One, LLC		32			97			129			29			89			118
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			83			253			336
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.		20			59			79			17			52			69
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.		7			21			28			6			19			25
SQM Europe N.V.	Straatsburgdok N.V.		102			306			408			95			286			381
SQM Australia PTY	Ausco Modular Pty Limited		8			24			32			8			24			32
SQM Australia PTY	Western Australian Land Authority		(98	)		(295	)		(393	)		(98	)		(295	)		(393	)
SQM Australia PTY	Eagle Petroleum (WA) Pty Ltd		4			12			16			4			11			15
SQM Australia PTY	Knight Frank		7			20			27			7			20			27
Total			2,996			6,450			9,446			1,922			5,611			7,533

103

Notes to the Consolidated Interim Financial Statements September 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

104

Notes to the Consolidated Interim Financial Statements September 30, 2021  

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

Debtor	Creditor	Nominal amounts as of September 30,2021								Amounts at amortized cost as of September 30, 2021
Company	Supplier	1-2 Years		2-3 Years		3-4 Years		Total		1-2 Years		2-3 Years		3-4 Years		Total
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
SQM Salar S.A.	Empresa Constructora Contex Ltda		4,317		1,079		-		5,396		3,983		1,063		-		5,046
SQM Salar S.A.	Maquinaria Astudillo y Hermanos Limitada		800		534		-		1,334		748		523		-		1,271
SQM Salar S.A.	Maquinaria Astudillo y Hermanos Limitada		386		225		-		611		363		221		-		584
SQM Salar S.A.	Contrato Hotel Amaru		146		-		-		146		145		-		-		145
SQM Salar S.A.	SKM Industrial Ltda.		-		-		-		-		-		-		-		-
SQM Salar S.A.	Ameco Chile S.A.		3,730		5,594		4,507		13,831		3,063		4,959		4,339		12,361
SQM Salar S.A.	Maquinaria Astudillo y Hermanos Ltda.		1,321		-		-		1,321		1,287		-		-		1,287
SQM Industrial S.A.	El Trovador S.A.		236		10		-		246		227		10		-		237
SQM Industrial S.A.	Sociedad Comercial Grandleasing Chile Ltda		18		-		-		18		18		-		-		18
SQM Industrial S.A.	Jungheinrich Rentalif SPA		146		6		-		152		141		6		-		147
SQM Nitratos S.A.	Jungheinrich Rentalif SPA		158		7		-		165		152		7		-		159
SQM S.A.	Jungheinrich Rentalif SPA		10		14		42		66		4		8		33		45
Soquimich Comercial S.A.	Containers Operators S.A.		10		-		-		10		10		-		-		10
Soquimich Comercial S.A.	SAAM Logistics S.A.		8		12		15		35		5		8		13		26
Soquimich Comercial S.A.	Muelles de Penco S.A.		86		-		-		86		86		-		-		86
Soquimich Comercial S.A.	Muelles de Penco S.A.		138		-		-		138		137		-		-		137
Soquimich Comercial S.A.	Inmobiliaria Chincui SPA		148		-		-		148		147		-		-		147
Soquimich Comercial S.A.	Compañía de Leasing Tattersall S.A.		1,255		1,883		418		3,556		1,074		1,750		413		3,237
SQM North America Corp.	Paces West LL.		462		746		65		1,273		396		702		65		1,163
SQM North America Corp.	Hawkins Nunmber One, LLC		257		-		-		257		248		-		-		248
SQM North America Corp.	Deep South Equipment Company		7		-		-		7		7		-		-		7
SQM Comercial de México S.A. de C.V.	Onni Ensenada S.A. de C.V.		789		855		-		1,644		707		823		-		1,530
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.		85		-		-		85		81		-		-		81
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.		31		-		-		31		29		-		-		29
SQM Europe N.V.	Straatsburgdok N.V.		834		1,128		-		1,962		794		1,109		-		1,903
SQM Australia PTY	Knight Frank		23		-		-		23		23		-		-		23
SQM Australia PTY	Eagle Petroleum (WA) Pty Ltd		1,216		1,824		14,593		17,633		1,216		1,824		14,593		17,633
Total			16,617		13,917		19,640		50,174		15,091		13,013		19,456		47,560

105

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Debtor	Creditor	Nominal amounts as of December 31,2020								Amounts at amortized cost as of December 31, 2020
Company	Supplier	1-2 Years		2-3 Years		3-4 Years		Total		1-2 Years		2-3 Years		3-4 Years		Total
		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

106

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Other lease disclosures

Total lease expenses related to lease payments that did not qualify under the scope of IFRS 16 were ThUS$ 55,137 and ThUS$ 48,823 for the periods ended September 30, 2021 and 2020. See Note 23.8.

Expenses related to variable payments not included in lease liabilities were MUS$ 777 and MUS$ 882 for the periods ending September 30, 2021 and 2020.

Income from subleases on right-of-use assets were ThUS$ 100 and ThUS$ 140 as of September 30, 2021 and 2020, respectively.

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

107

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Note 15 Intangible assets and goodwill

15.1 Reconciliation of changes in intangible assets and goodwill

As of September 30, 2021
Intangible assets and goodwill	Useful life	Net Value
		ThUS$
IT programs	Finite	3,589
Mining rights	Finite	151,038
Water rights and rights of way	Indefinite	5,340
Water rights	Finite	16,105
Intellectual property	Finite	6,653
Other intangible assets	Finite	144
Intangible assets other than goodwill		182,869
Goodwill	Indefinite	34,596
Total Intangible Asset		217,465

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
Other intangible assets	Finite	192
Intangible assets other than goodwill		178,407
Goodwill	Indefinite	41,966
Total Intangible Asset		220,373

108

Notes to the Consolidated Interim Financial Statements September 30, 2021  

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

Gross Value	IT programs			Mining rights, Finite			Water rights, and rights of way, Indefinite			Water rights Finite		Customer-related intangible assets		Intellectual property		Other intangible assets			Goodwill			Identifiable intangible assets
Movements in identifiable intangible assets	ThUS$			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		45			20			-			-		-		-		6			-			71
Other increases / decreases for foreign currency exchange rates		(15	)		2,283			(3	)		-		-		-		(5	)		-			2,260
Impairment losses recognized in profit or loss for the year		-			-			-			-		-		-		-			-			-
Decrease for classification as held for sale		-			-			-			-		-		-		-			-			-
Transferred from available for sale		-			16			-			-		-		-		-			-			16
Other increases (decreases)		58			(246	)		-			-		-		7,370		-			(7,370	)		(188	)
Total increases (decreases)		88			2,073			(3	)		-		-		7,370		1			(7,370	)		2,159
Closing balance		35,369			162,569			7,421			18,000		1,778		7,370		2,275			38,130			272,912

Accumulated amortization and impairment	IT programs			Mining rights, Finite			Water rights, and rights of way, Indefinite			Water rights Finite			Customer-related intangible assets			Intellectual property			Other intangible assets			Goodwill			Identifiable intangible assets
Movements in identifiable intangible assets	ThUS$			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		(1,327	)		(1,032	)		-			(1,895	)		-			(717	)		(50	)		-			(5,021	)
Total increases (decreases)		(1,325	)		(1,080	)		-			(1,895	)		-			(717	)		(50	)		-			(5,067	)
Closing balance		(31,780	)		(11,530	)		(2,081	)		(1,895	)		(1,778	)		(717	)		(2,132	)		(3,534	)		(55,447	)

(1) See Note 23.5

109

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Net value	IT programs			Mining rights, Finite			Water rights, and rights of way, Indefinite			Water rights Finite			Customer-related intangible assets		Intellectual property			Other intangible assets			Goodwill			Identifiable intangible assets
Movements in Identifiable intangible assets	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$			ThUS$			ThUS$
Opening Balance		4,826			150,046			5,343			18,000			-		-			192			41,966			220,373
Additions		45			20			-			-			-		-			6			-			71
Amortization		(1,327	)		(1,032	)		-			(1,895	)		-		(717	)		(50	)		-			(5,021	)
Impairment losses recognized in profit for the year		-			(48	)		-			-			-		-			-			-			(48	)
Other increases / decreases for foreign currency exchange rates		(13	)		2,283			(3	)		-			-		-			(5	)		-			2,262
Decrease for classification as held for sale		-			-			-			-			-		-			-			-			-
Transferred from available for sale		-			16			-			-			-		-			-			-			16
Other increases (decreases)		58			(246	)		-			-			-		7,370			-			(7,370	)		(188	)
Total increases (decreases)		(1,237	)		993			(3	)		(1,895	)		-		6,653			(49	)		(7,370	)		(2,908	)
Closing balance		3,589			151,039			5,340			16,105			-		6,653			143			34,596			217,465

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

110

Notes to the Consolidated Interim Financial Statements September 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

111

Notes to the Consolidated Interim Financial Statements September 30, 2021  

(b)            Movements in identifiable goodwill as of September 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		-		-		(7,370	)		38,130
Closing balance		45,500		-		-		(7,370	)		38,130

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	)

112

Notes to the Consolidated Interim Financial Statements September 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		-		-		(7,370	)		34,596
Closing balance		41,966		-		-		(7,370	)		34,596

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

113

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Accumulated impairment	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.		-			-		-			-			-
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	)

Net 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.		-		-		-			-			-
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

114

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Note 16 Property, plant and equipment

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

16.1 Types of property, plant and equipment

	As of September 30, 2021		As of December 31, 2020
Description of types of property, plant and equipment	ThUS$		ThUS$
Property, plant and equipment, net
Land	23,523		23,579
Buildings	236,510		239,666
Other property, plant and equipment	32,854		35,418
Transport equipment	2,434		2,880
Supplies and accessories	4,056		4,183
Office equipment	1,362		459
Network and communication equipment	1,118		1,272
Mining assets	39,288		47,052
IT equipment	3,567		4,083
Energy generating assets	4,190		4,878
Constructions in progress	665,849		486,345
Machinery, plant and equipment	852,372		887,504
Total	1,867,123		1,737,319
Property, plant and equipment, gross
Land	23,523		23,579
Buildings	723,591		705,089
Other property, plant and equipment	237,638		234,238
Transport equipment	13,139		13,030
Supplies and accessories	26,778		26,101
Office equipment	12,846		11,607
Network and communication equipment	9,205		8,951
Mining assets	195,264		194,562
IT equipment	30,047		29,629
Energy generating assets	38,540		38,540
Constructions in progress	665,849		486,345
Machinery, plant and equipment	3,390,382		3,304,061
Total	5,366,802		5,075,732
Accumulated depreciation and value impairment of property, plant and equipment, total
Accumulated depreciation and impairment of buildings	(487,081	)	(465,423	)
Accumulated depreciation and impairment of other property, plant and equipment	(204,784	)	(198,820	)
Accumulated depreciation and impairment of transport equipment	(10,705	)	(10,150	)
Accumulated depreciation and impairment of supplies and accessories	(22,722	)	(21,918	)
Accumulated depreciation and impairment of office equipment	(11,484	)	(11,148	)
Accumulated depreciation and impairment of network and communication equipment	(8,087	)	(7,679	)
Accumulated depreciation and impairment of mining assets	(155,976	)	(147,510	)
Accumulated depreciation and impairment of IT equipment	(26,480	)	(25,546	)
Accumulated depreciation and impairment of energy generating assets	(34,350	)	(33,662	)
Accumulated depreciation and impairment of machinery, plant and equipment	(2,538,010	)	(2,416,557	)
Total	(3,499,679	)	(3,338,413	)

115

Notes to the Consolidated Interim Financial Statements September 30, 2021  

	As of September 30, 2021	As of December 31, 2020
Description of classes of property, plant and equipment	ThUS$	ThUS$
Property, plant and equipment, net
Pumps	25,891	28,184
Conveyor Belt	18,769	20,117
Crystallizer	20,678	22,145
Plant Equipment	167,281	173,335
Tanks	17,281	15,367
Filter	40,102	35,553
Electrical equipment/facilities	95,464	93,937
Other Property, Plant & Equipment	44,228	49,930
Site Closure	33,293	36,828
Piping	96,629	102,578
Well	207,802	226,347
Pond	45,184	41,906
Spare Parts (1)	39,770	41,277
Total	852,372	887,504

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

	As of September 30, 2021	As of December 31, 2020
Conciliation	ThUS$	ThUS$
Opening balance	42,881	39,265
Increase in provision	7,946	3,616
Closing balance	50,827	42,881

116

Notes to the Consolidated Interim Financial Statements September 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 September 30, 2021 and December 31, 2020:

Reconciliation of changes in property, plant and equipment by class as of September 30,	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
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		-			-			286			-			-			161			89		-		172			-		303,564			6,921			311,193
Disposals		-			-			-			-			-			-			-		-		-			-		-			-			-
Increase (decrease) in foreign currency translation difference		(56	)		(119	)		(6	)		(2	)		(11	)		(2	)		-		-		(7	)		-		-			(130	)		(333	)
Reclassifications		-			18,972			3,130			123			928			1,082			165		702		253			-		(105,399	)		85,336			5,292
Other increases (decreases)		-			(351	)		(10	)		(12	)		(240	)		(2	)		-		-		-			-		(18,661	)		(5,806	)		(25,082	)
Decreases for classification as held for sale		-			-			-			-			-			-			-		-		-			-		-			-			-
Total changes		(56	)		18,502			3,400			109			677			1,239			254		702		418			-		179,504			86,321			291,070
Closing balance		23,523			723,591			237,638			13,139			26,778			12,846			9,205		195,264		30,047			38,540		665,849			3,390,382			5,366,802

Reconciliation of changes in property, plant and equipment by class as of September 30,	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
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		-		(21,460	)		(5,895	)		(569	)		(873	)		(310	)		(361	)		(8,466	)		(980	)		(688	)		-		(110,776	)		(150,378	)
Impairment (3)		-		(456	)		(75	)		-			(16	)		(8	)		-			-			(8	)		-			-		(5,738	)		(6,301	)
Increase (decrease) in foreign currency translation difference		-		58			6			2			11			2			-			-			7			-			-		75			161
Reclassifications		-		(112	)		(1	)		12			(9	)		(20	)		(47	)		-			47			-			-		(5,162	)		(5,292	)
Other increases (decreases) (1)		-		312			1			-			83			-			-			-			-			-			-		148			544
Decreases for classification as held for sale		-		-			-			-			-			-			-			-			-			-			-		-			-
Total changes		-		(21,658	)		(5,964	)		(555	)		(804	)		(336	)		(408	)		(8,466	)		(934	)		(688	)		-		(121,453	)		(161,266	)
Closing balance		-		(487,081	)		(204,784	)		(10,705	)		(22,722	)		(11,484	)		(8,087	)		(155,976	)		(26,480	)		(34,350	)		-		(2,538,010	)		(3,499,679	)

117

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Reconciliation of changes in property, plant and equipment by class as of September 30,	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
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		-			-			286			-			-			161			89			-			172			-			303,564			6,921			311,193
Disposals		-			-			-			-			-			-			-			-			-			-			-			-			-
Depreciation expense		-			(21,460	)		(5,895	)		(569	)		(873	)		(310	)		(361	)		(8,466	)		(980	)		(688	)		-			(110,776	)		(150,378	)
Impairment (3)		-			(456	)		(75	)		-			(16	)		(8	)		-			-			(8	)		-			-			(5,738	)		(6,301	)
Increase (decrease) in foreign currency translation difference		(56	)		(61	)		-			-			-			-			-			-			-			-			-			(55	)		(172	)
Reclassifications		-			18,860			3,129			135			919			1,062			118			702			300			-			(105,399	)		80,174			-
Other increases (decreases) (1)		-			(39	)		(9	)		(12	)		(157	)		(2	)		-			-			-			-			(18,661	)		(5,658	)		(24,538	)
Decreases for classification as held for sale (2)		-			-			-			-			-			-			-			-			-			-			-			-			-
Total changes		(56	)		(3,156	)		(2,564	)		(446	)		(127	)		903			(154	)		(7,764	)		(516	)		(688	)		179,504			(35,132	)		129,804
Closing balance		23,523			236,510			32,854			2,434			4,056			1,362			1,118			39,288			3,567			4,190			665,849			852,372			1,867,123

(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 23.5

118

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Reconciliation of changes in property, plant and equipment by class as of December	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
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

Reconciliation of changes in property, plant and equipment by class as of December	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
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	)

119

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Reconciliation of changes in property, plant and equipment by class as of December	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
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.

120

Notes to the Consolidated Interim Financial Statements September 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 September 30, 2021			As of September 30, 2020
Costs of capitalized interest	ThUS$			ThUS$
Capitalized interest rate		4	%		4	%
Amount of interest cost capitalized		10,123			6,327

121

Notes to the Consolidated Interim Financial Statements September 30, 2021  

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

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

 

	As of September 30, 2021		As of December 31, 2020
Other non-financial assets, current	ThUS$		ThUS$
Domestic Value Added Tax		18,407		18,107
Foreign Value Added Tax		7,680		7,785
Prepaid mining licenses		3,082		1,025
Prepaid insurance		2,813		10,307
Other prepayments		1,591		946
Refund of Value Added Tax to exporters		-		14,316
Other taxes		4,988		4,499
Other assets		1,090		414
Total		39,651		57,399

	As of September 30, 2021		As of December 31, 2020
Other non-financial assets, non-current	ThUS$		ThUS$
Exploration and evaluation expenses (1)		40,825		17,883
Guarantee deposits		609		731
Other assets		5,526		3,428
Total		46,960		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 September 30, 2021, and December 31, 2020:

 

	As of September 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		433		(526	)
Increase (decrease) due to transfers and other charges		22,509		(245	)
Total changes		22,942		(771	)
Total		40,825		17,883

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

122

Notes to the Consolidated Interim Financial Statements September 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)            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 September 30, 2021, and December 31, 2020 there were no disbursements for this concept.

(b)            Execution: Disbursements for exploration and evaluation under implementation and therefore prior to determination of economic feasibility, are presented as part of property, plant and equipment as constructions in progress.

	As of September 30, 2021		As of December 31, 2020
Explorations in progress	ThUS$		ThUS$
Chile		13,456		14,265
Total		13,456		14,265

	As of September 30, 2021			As of December 31, 2020
Conciliation of explorations in execution	ThUS$			ThUS$
Opening balance		14,265			18,654
Disbursements		8,494			-
Reclassifications		(9,303	)		(4,389	)
Total changes		(809	)		(4,389	)
Total		13,456			14,265

(c)            Economically feasible: Reimbursements for exploration and evaluation whose study concluded that its economic viability is viable are classified in “Other non-financial assets, non-current.”

	Type of	As of September 30, 2021		As of December 31, 2020
Prospecting	Exploration	ThUS$		ThUS$
Chile (1)	Metálica/No Metálica		13,865		10,872
Australia	Litio		17,546		-
Total			31,411		10,872

(1) The value presented for Chile is as of September 2021 for ThUS 3,880, corresponding to non-metallic exploration and evaluation and ThUS$ 9,985 associated with metallic exploration. In December 2020, the amounts of non-metallic exploration were ThUS$ 6,576 and metallic exploration were ThUS$ 4,296.

123

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Economically feasible metallic explorations are those classified as advanced exploration.

	As of September 30, 2021			As of December 31, 2020
Prospecting conciliation	ThUS$			ThUS$
Opening balance		10,872			10,009
Additions		5,356			-
Reclassifications from Exploration in execution – Chile		332			863
Reclassifications from Property, plant and equipment		17,546			-
Reclassifications to Exploration in Exploitation-Chile		(2,695	)		-
Total changes		20,539			863
Total		31,411			10,872

(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”.

	As of September 30, 2021			As of December 31, 2020
Short-Term Exploitation Conciliation	ThUS$			ThUS$
Opening balance		1,318			1,367
Amortization		(727	)		(1,683	)
Reclassifications		294			1,634
Total changes		(433	)		(49	)
Total		885			1,318

	As of September 30, 2021		As of December 31, 2020
Long-Term Exploitation Conciliation	ThUS$		ThUS$
Opening balance		7,011		8,645
Amortization		-		-
Reclassifications		2,403		(1,634	)
Total changes		2,403		(1,634	)
Total		9,414		7,011

124

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Note 18 Employee benefits

18.1 Provisions for employee benefits

	As of September 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		18,326		1,326
Total		19,709		9,096
Non-current
Profit sharing and bonuses		-		-
Severance indemnity payments		26,786		32,199
Total		26,786		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.

125

Notes to the Consolidated Interim Financial Statements September 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.

126

Notes to the Consolidated Interim Financial Statements September 30, 2021  

18.5 Staff severance indemnities

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

	As of September 30, 2021			As of December 31, 2020
Staff severance indemnities	ThUS$			ThUS$
Opening balance		(32,199	)		(27,814	)
Current cost of service		(2,656	)		(3,804	)
Interest cost		(1,017	)		(1,486	)
Actuarial gain/loss		3,795			(2,826	)
Exchange rate difference		4,137			(1,513	)
Benefits paid during the year		1,154			5,244
Total		(26,786	)		(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 September 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 September 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 September 30, 2021	ThUS$			ThUS$
Discount rate		(1,596	)		1,796
Employee turnover rate		(210	)		234

	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.

127

Notes to the Consolidated Interim Financial Statements September 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.

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$ 4,636 and ThUS$ 1,091 in the income statement for the periods ending September 30, 2021 and 2020.

Shares exercised up to September 30, 2021 were 113,734.

128

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Note 19 Provisions and other non-financial liabilities

19.1 Types of provisions

 

	As of September 30, 2021						As of December 31, 2020
	Current		Non-current		Total		Current		Non-current		Total
Types of provisions	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Provision for legal complaints (1)		30,517		1,236		31,753		8,905		1,260		10,165
Provision for dismantling, restoration and rehabilitation cost (2)		-		56,992		56,992		-		61,265		61,265
Other provisions (3)		133,727		-		133,727		95,261		92		95,353
Total		164,244		58,228		222,472		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

129

Notes to the Consolidated Interim Financial Statements September 30, 2021  

19.2 Description of other provisions

 

	As of September 30, 2021		As of December 31, 2020
Current provisions, other short-term provisions	ThUS$		ThUS$
Rent under Lease contract (1)		128,171		85,167
Provision for additional tax related to foreign loans		793		740
End of agreement bonus		2,506		8,159
Directors’ per diem allowance		1,848		698
Miscellaneous provisions		409		497
Total		133,727		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.

130

Notes to the Consolidated Interim Financial Statements September 30, 2021  

19.3 Other non-financial liabilities, Current

 

	As of September 30, 2021		As of December 31, 2020
Description of other liabilities	ThUS$		ThUS$
Tax withholdings		5,023		1,208
VAT payable		4,607		1,642
Guarantees received		2,637		2,636
Accrual for dividend		4,838		8,027
Monthly tax provisional payments		10,501		8,407
Deferred income		24,861		6,435
Withholdings from employees and salaries payable		5,719		5,017
Accrued vacations (1)		23,807		24,003
Other current liabilities		966		3,580
Total		82,959		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.

131

Notes to the Consolidated Interim Financial Statements
September 30, 2021

19.4 Changes in provisions

Description of items that gave rise to variations	Legal complaints			Provision for dismantling, restoration and rehabilitation cost			Others provisions			Total
as of September 30, 2021	ThUS$			ThUS$			ThUS$			ThUS$
Total provisions, initial balance		10,165			61,265			95,353			166,783
Changes
Additional provisions		30,012			4,141			86,743			120,896
Provision used		(8,399	)		-			(49,118	)		(57,517	)
Increase(decrease) in foreign currency exchange		(25	)		-			749			724
Others		-			(8,414	)		-			(8,414	)
Total Increase (decreases)		21,588			(4,273	)		38,374			55,689
Total		31,753			56,992			133,727			222,472

Description of items that gave rise to variations	Legal complaints			Provision for dismantling, restoration and rehabilitation cost			Others provisions			Total
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

132

Notes to the Consolidated Interim Financial Statements
September 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 September 30, 2021			As of December 31, 2020			Description (1)	Calculation (1)
Net Financial Debt (ThUS$)		14,769			1,074,020		Financial Debt – Financial Resources	Other current Financial Liabilities + Other Non-Current Financial Liabilities– Cash and Cash Equivalents – Other Current Financial Assets – Hedging Assets, non-current
Liquidity		7.19			5.40		Current Assets divided by Current Liabilities	Total Current Assets / Total Current Liabilities
ROE		10.15	%		7.79	%	Profit for the year divided by Total Equity	Profit for the year / Equity
Adjusted EBITDA (ThUS$)		626,003			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$)		596,221			524,650		EBITDA	Profit (loss) + Depreciation and Amortization Expense adjustments + Finance Costs + Income Tax
ROA		13.61	%		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		0.02			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 September 30, 2021, this ratio was 0.02.

133

Notes to the Consolidated Interim Financial Statements
September 30, 2021

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

	Financial restrictions (member)
As of September 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	0.02	0.02	0.02	0.02
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

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.

134

Notes to the Consolidated Interim Financial Statements
September 30, 2021

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

Detail of capital classes in shares:

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

	As of September 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

135

Notes to the Consolidated Interim Financial Statements
September 30, 2021

20.4 Disclosures on reserves in Equity

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

	As of September 30, 2021			As of December 31, 2020
Disclosures on reserves in equity	ThUS$			ThUS$
Reserve for currency exchange conversion (1)		(7,688	)		(11,569	)
Reserve for cash flow hedges (2)		(35,870	)		4,491
Reserve for gains and losses from financial assets measured at fair value through other comprehensive income (3)		(10,118	)		6,872
Reserve for actuarial gains or losses in defined benefit plans (4)		(5,548	)		(8,680	)
Other reserves		12,900			16,318
Total		(46,324	)		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.

136

Notes to the Consolidated Interim Financial Statements
September 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
	Before taxes		Before taxes		Tax		Before taxes		Deferred taxes		Before taxes		Deferred taxes		Before taxes		Reserves		Deferred taxes		Total reserves
Movements	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	)
Movement of reserves	(404	)	(3,706	)	1,001		955		(145	)	9,784		(2,642	)	2,537		9,166		(1,786	)	7,380
Effect on profit and loss	14,580		-		-		-		-		-		-		(305	)	14,275		-		14,275
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
Movement of reserves	4,271		(55,289	)	14,928		3,742		(610	)	(10,662	)	3,436		(69	)	(58,007	)	17,754		(40,253	)
Effect on profit and loss	(390	)	-		-		-		-		-		-		(3,349	)	(3,739	)	-		(3,739	)
Reclassification to retained earnings	-		-		-		-		-		(13,375	)	3,611		-		(13,375	)	3,611		(9,764	)
Balances as of September 30, 2021	(7,688	)	(49,116	)	13,246		(6,785	)	1,237		(13,861	)	3,743		12,900		(64,550	)	18,226		(46,324	)

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

137

Notes to the Consolidated Interim Financial Statements
September 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 September 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.		(229	)		(244	)
Others		(19	)		-
Total		12,456			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		12,900			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.

138

Notes to the Consolidated Interim Financial Statements
September 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. Payment began on this provisional dividend on June 10, 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. Payment began on this provisional dividend on September 9, 2021.

139

Notes to the Consolidated Interim Financial Statements
September 30, 2021

20.7  Potential and provisional dividends

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

	As of September 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		1,969		5,904
Soquimich Comercial S.A. Payable Dividend		4,498		2,976
Non-controlling interests		6,467		10,118
Interim dividend		157,774		44,986
Special dividend		-		100,000
Dividends payable		-		4,369
Owners of the Parent		157,774		149,355
Dividends discounted from equity for the period		164,241		159,473

140

Notes to the Consolidated Interim Financial Statements
September 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 US$ 30 million. On September 8, 2021, a jury in the United States District Court in Los Angeles returned a verdict against SQM NA for MUS$ 48.1 million. The verdict is not final and is subject to appeals or motions that SQM NA and the plaintiff may present in the upcoming days, as well as appeals that may be presented to the District 9 Court of Appeals. The Company has registered a pre-tax charge of US$ 30 million with effect on income as of September 30, 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

141

Notes to the Consolidated Interim Financial Statements September 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 amount of the claim is ThUS$ 732. The trial is currently finalized by transaction. On November 10, 2021, the plaintiff withdrew the lawsuit against the Company.

(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. The trial is currently in the discussion stage.

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.

142

Notes to the Consolidated Interim Financial Statements September 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 the accepted compliance program 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 Environmental Court of Antofagasta, 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 State of the Company as of September 30, 2021 and December 31, 2020.

The non-current tax assets presented in the Company’s Interim Financial Statements as of September 30, 2021 of US$ 90.4 million, correspond to the three claims in the recently mentioned dispute. This amount can be broken down as follows: overcharged amount of US$ 18.9 million; 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$ 52.9 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.

143

Notes to the Consolidated Interim Financial Statements September 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 Salar de Atacama Project Agreement 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 Agreement, SQM Salar may be prevented from the exploitation of the mining assets 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 September 30, 2021, the guarantee amounts to ThUS$ 609.

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$ 9,125 and ThUS$ 10,114 on September 30, 2021 and December 31, 2020 respectively; which is detailed as follows:

		As of September 30, 2021		As of December 31, 2020
Grantor	Relationship	ThUS$		ThUS$
Ferosor Agrícola S.A.	Unrelated Third party		4,927		5,626
Tattersall Agroinsumos S.A.	Unrelated Third party		2,000		2,000
Covepa SPA	Unrelated Third party		616		703
Johannes Epple Davanzo	Unrelated Third party		275		314
Hortofrutícola La Serena	Unrelated Third party		274		303
Com. Serv Johannes Epple Davanz	Unrelated Third party		357		408
Juan Luis Gaete Chesta	Unrelated Third party		166		190
Arena Fertilizantes y Semillas	Unrelated Third party		185		211
Vicente Oyarce Castro	Unrelated Third party		207		229
Bernardo Guzmán Schmidt	Unrelated Third party		118		130
Total			9,125		10,114

21.8 Indirect guarantees

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

144

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Note 22 Environment

22.1 Disclosures of disbursements related to the environment

Environmental protection, respect for human rights and overall impact on sustainability are ongoing concerns of the Company, both in its productive processes and throughout the supply chain. This commitment is supported by the principles indicated in the Company’s Sustainable Development Policy and human rights policy. The Company is currently operating under an Environmental Management System (EMS) that has allowed it to strengthen its environmental performance through the effective application of the Company’s Sustainable Development Policy. In 2020, the company announced an ambitious Sustainable Development Plan, which establishes specific measurable goals that seek to make SQM a leader in sustainability around the world. The main goals proposed are:

i) A 65% reduction in the use of fresh water by the year 2040 and 40% by 2030.

ii) A 50% reduction in brine extraction from the Salar de Atacama by 2030, starting with 20% by November 2020.

iii) Ensure that all our products are carbon neutral by 2040 and in the case of lithium, iodine and potassium chloride, this goal is for 2030.

iv) Stimulate more and better instances for dialog with the communities near the operations.

Operations that use caliche as a raw material are carried out in desert areas with climatic conditions that are favorable for drying solids and evaporating liquids using solar energy. Operations involving the open-pit extraction of minerals.

Many of the Company’s products are shipped in bulk at the Port of Tocopilla. In 2007, the city of Tocopilla was declared a “zone saturated with MP10 Particles” mainly due to the emissions from the electric power plants that operate in that city. In October 2010, the “Decontamination Plan for Tocopilla” was put in place. Accordingly, the Company has committed to taking several measures to mitigate the effects derived from bulk product movements in the port, these measures have been timely implemented since 2007.

The Company carries out environmental follow-up and monitoring plans based on specialized scientific studies. Follow-up on relevant variables defined for each project enables the Company to verify the status, for example, of vegetation, flora, fauna and aquatic life in the ecosystems to protect. Follow-up plans are supported by a broad control network that includes monitoring points such as meteorological stations and wells, satellite images, plots for recording the status of vegetation and fauna, etc. The activities comprised in these plans are reported regularly to authorities based on the Company’s commitments made through resolutions that approve different SQM projects. For the specific case of the Salar de Atacama, the Company has implemented an online platform (www.sqmsenlinea.com), which enables any person to access all the environmental information compiled by the Company in keeping with its commitments.

In this context, the Company maintains environmental monitoring across the systems where it operates, which is supported by numerous studies that integrate diverse scientific efforts from prestigious research centers on a national and international level, such as the Spanish National Research Council (CSIC) and the Universidad Católica del Norte.

Furthermore, within the framework of the environmental studies which the Company is conducting, the Company performs significant activities in relation to the recording of Pre-Columbian and historical cultural heritage, as well as the protection of heritage sites, in accordance with current Chilean laws. These activities have been especially performed in the areas surrounding Maria Elena (ME) and the Nueva Victoria plant (NV). This effort is being accompanied by outreach activities for the community and development of sites of interest.

As emphasized in its Sustainable Development Policy, the Company strives to maintain positive relationships with the communities surrounding the locations in which it carries out its operations, as well as to participate in communities’ development by supporting joint projects and activities which help to improve the quality of life for residents. For this purpose, the Company has focused its efforts on activities involving the rescue of historical heritage, education and culture, as well as development. In order to do so, it acts both individually and in conjunction with private and public entities.

145

Notes to the Consolidated Interim Financial Statements September 30, 2021  

22.2 Detailed information on disbursements related to the environment

The cumulative disbursements which the Company had incurred as of September 30, 2021 for the concept of investments in production processes, verification and control of compliance with ordinances and laws related to industrial processes and facilities amounted to ThUS$ 18,818 and are detailed as follows:

146

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Accumulated expenses as of September 30, 2021

Parent Company or			Asset /	Disbursement		Exact or Estimated Date of
Subsidiary	Project Name Associated with Disbursement	Reason for Disbursement	Expense	ThUS$		Disbursement
Miscellaneous	Environment - Operating Area	Not classified	Expense		8,693	09-30-2021
SQM S.A.	01-I017200 - CEDAM at Puquíos at Llamara	Sustainability: Environment and Risk Prevention	Expense		788	09-30-2021
SQM S.A.	01-I019400 - EIA Expansion of TEA and Seawater Impulsion	Environmental processing	Assets		1,250	09-30-2021
SQM S.A.	01-I017600 - Regularization of Hazardous Substances Decree	Environmental processing	Expense		13	06-01-2021
SQM S.A.	01-I028200 - EIA Llamara	Environmental processing	Expense		424	09-29-2021
SQM S.A.	01-I028300 - Implementation PDC 2019 - Llamara sanction process	Sustainability: Environment and Risk Prevention	Expense		281	09-30-2021
SQM S.A.	01-I030700 - Sectorial Permits EIA Project TEA	Environmental processing	Expense		24	09-15-2021
SQM S.A.	01-I035800 - Sustainability DS43 Phase 2	Sustainability: Environment and Risk Prevention	Assets		19	07-31-2021
SQM S.A.	01-S015900 - SQM Sustainability	Environmental processing	Expense		172	09-30-2021
SQM S.A.	01-S014200 - Projections	Environmental processing	Expense		7	05-19-2021
SQM S.A.	01-I039600 - New Warehouse Iodine Stock NV	Environmental processing	Assets		416	09-24-2021
SQM S.A.	01-I039700 - Adapting tanks for hazardous substances NV	Environmental processing	Assets		205	09-14-2021
SQM S.A.	01-P010300 - Adapting tanks for hazardous substances PV	Environmental processing	Assets		17	03-16-2021
SQM S.A.	01-P010400 - Adaptation of dispatch warehouse PV	Environmental processing	Assets		229	09-30-2021
SQM S.A.	01-I038400 - Update APT conceptual and numerical hydrogeological model	Sustainability: Environment and Risk Prevention	Expense		1	06-01-2021
SQM S.A.	01-I041400 - EIA New ponds and stockpiles at Sur Viejo	Environmental processing	Expense		45	09-10-2021
SQM S.A.	01-I044400 - Improve NV proprietary warehouse and offices	Sustainability: Environment and Risk Prevention	Expense		6	08-31-2021
SQM Industrial S.A.	04-J015700 - Update of Closure Plans	Sustainability: Environment and Risk Prevention	Expense		55	05-04-2021
SQM Industrial S.A.	04-J017200 - Guarantee availability  Pampas Industrial Water System	Sustainability: Environment and Risk Prevention	Assets		29	07-07-2021
SQM Industrial S.A.	04-I032600 - Well Water Efficiency - Rec.	Sustainability: Environment and Risk Prevention	Assets		6	07-09-2021
SQM Industrial S.A.	04-J022700 - DIA integration of Coya Sur site	Environmental processing	Expense		76	08-02-2021
SQM Industrial S.A.	04-J022800 - Adaptation light pollution	Sustainability: Environment and Risk Prevention	Assets		75	05-13-2021
SQM Industrial S.A.	04-M004300 - Reduction of Industrial Waste	Sustainability: Environment and Risk Prevention	Expense		76	09-30-2021
SQM Industrial S.A.	04-I038200 - Well water efficiency 2	Sustainability: Environment and Risk Prevention	Assets		627	09-30-2021
SQM Industrial S.A.	04-I038600 - Monitoring extractions NV	Sustainability: Environment and Risk Prevention	Assets		340	09-16-2021
SQM Industrial S.A.	04-J023700 - Regularization Hazardous Substances Decree SQM Industrial	Environmental processing	Assets		453	09-13-2021
SQM Industrial S.A.	04-I046900 - Pilot Floating Photovoltaic Solar Plant (FPV-SV) - Conceptual Engineering	Sustainability: Environment and Risk Prevention	Expense		27	09-27-2021
SQM Industrial S.A.	04-M005400 - Rio Loa preventive monitoring (water and aquatic biota quality)	Sustainability: Environment and Risk Prevention	Expense		4	09-22-2021
SQM Industrial S.A.	04-M004600 - Degreasing chamber TAS ME Plant	Sustainability: Environment and Risk Prevention	Expense		3	07-27-2021
SQM Industrial S.A.	04-J015800 - Other Sector Regulatory 2019	Sustainability: Environment and Risk Prevention	Expense		9	09-27-2021
SQM Industrial S.A.	04-M005600 - Improve N&Y warehouse	Sustainability: Environment and Risk Prevention	Assets		4	09-30-2021
SIT S.A.	03-T009900 - Air quality monitoring system at Tocopilla	Sustainability: Environment and Risk Prevention	Assets		48	09-10-2021
SIT S.A.	03-T010500 - Hydrocarbon detection system at Tocopilla port	Sustainability: Environment and Risk Prevention	Assets		54	02-15-2021
SQM Salar S.A.	19-L014700 - Industrial Waste Management	Sustainability: Environment and Risk Prevention	Expense		63	08-05-2021
SQM Salar S.A.	19-L018800 - UPC Consulting for NW and Others	Sustainability: Environment and Risk Prevention	Expense		12	02-12-2021
Subtotal					14,551

147

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Accumulated expenses as of September 30, 2021

Parent Company			Asset /		Disbursement		Exact or Estimated Date of
or Subsidiary	Project Name Associated with Disbursement	Reason for Disbursement	Expense		ThUS$		Disbursement
SQM Salar S.A.	19-L018900 - Evaporation 2018-2019	Sustainability: Environment and Risk Prevention		Assets		3	09-30-2021
SQM Salar S.A.	19-L021400 - Environmental Monitoring 2019	Environmental processing		Expense		881	09-29-2021
SQM Salar S.A.	19-L021700 - Upgrade RH y MA 2019	Environmental processing		Expense		60	08-27-2021
SQM Salar S.A.	19-S013400- Online Monitoring	Sustainability: Environment and Risk Prevention		Expense		131	09-29-2021
SQM Salar S.A.	19-S016200 - Acquisiton of Hardware – Software 2020	Sustainability: Environment and Risk Prevention		Assets		12	08-16-2021
SQM Salar S.A.	19-S016300 - Consulting 2020	Sustainability: Environment and Risk Prevention		Assets		3	02-25-2021
SQM Salar S.A.	19-S016400 - Implementation Acquiere Environmental DB	Sustainability: Environment and Risk Prevention		Assets		3	03-11-2021
SQM Salar S.A.	19-S016700 - Improvements understanding reload	Sustainability: Environment and Risk Prevention		Assets		65	03-25-2021
SQM Salar S.A.	19-L025600 - Purchase of Generators, Variators, trafos. 2020	Sustainability: Environment and Risk Prevention		Assets		50	08-01-2021
SQM Salar S.A.	19-L025800 - Normalization of Administration System	Sustainability: Environment and Risk Prevention		Assets		6	04-09-2021
SQM Salar S.A.	19-C008600 - Asphalting plants Salar del Carmen	Sustainability: Environment and Risk Prevention		Assets		354	09-29-2021
SQM Salar S.A.	19-L026900 - Cameras and lighting at finished product plants	Environmental processing		Assets		19	03-31-2021
SQM Salar S.A.	19-S016500 - Incorporation of test models for artificial intelligence	Sustainability: Environment and Risk Prevention		Assets		4	05-13-2021
SQM Salar S.A.	19-L026800 - Removal of old dryers MOP G III plant	Environmental processing		Assets		1	08-23-2021
SQM Salar S.A.	19-L030200 - Removal and disposal of non- hazardous waste at Salar de Atacama landfill site	Sustainability: Environment and Risk Prevention		Assets		153	09-30-2021
SQM Salar S.A.	19-L030700 - Electrification of wells, second stage	Sustainability: Environment and Risk Prevention		Assets		73	07-31-2021
SQM Salar S.A.	19-L028200 - Environmental Monitoring 2020	Sustainability: Environment and Risk Prevention		Expense		263	09-30-2021
SQM Salar S.A.	19-L029800 - Adaptation DS43	Environmental processing		Assets		76	09-19-2021
SQM Salar S.A.	19-L030100 - Standardization of Sectorial Environmental Permit 136 for Salar de Atacama Works	Environmental processing		Expense		52	06-30-2021
SQM Salar S.A.	19-L031700 - Regulation of Emissions Sources of Light DS N°43	Environmental processing		Assets		136	09-12-2021
SQM Salar S.A.	19-L032300 - Hydrogeology EIA 2021	Sustainability: Environment and Risk Prevention		Assets		200	09-30-2021
SQM Salar S.A.	19-L32000 - Salar Sustainability Project	Sustainability: Environment and Risk Prevention		Assets		51	08-11-2021
SQM Salar S.A.	19-C12400 - New Disposal Salt Deposits	Sustainability: Environment and Risk Prevention		Assets		476	09-30-2021
SQM Nitratos S.A.	12-I039000 - Adapting warehouse for hazardous substances at Mina Oeste	Environmental processing		Assets		58	06-22-2021
Minera Búfalo	20-A008200 - Búfalo proyect stage 1	Environmental processing		Expense		68	09-07-2021
Orcoma Estudios Spa	15-I039100 - Sectorial permits and compliance with environmental commitments EIA Orcoma Proyect	Environmental processing		Expense		807	09-30-2021
SQM Potasio S.A.	14-I039400 - Adapting tank at Iris	Environmental processing		Assets		53	07-12-2021
SQM Potasio S.A.	14-I039800 - Adequacy of the IRIS hazardous substances warehouse	Environmental processing		Assets		209	09-23-2021
Subtotal						4,267
Total						18,818

148

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Committed expenses for future periods as of September 30, 2021

Parent Company			Asset /	Disbursement		Exact or Estimated Date of
or Subsidiary	Project Name Associated with Disbursement	Reason for Disbursement	Expense	ThUS$		Disbursement
Miscellaneous	Environment - Operating Area	Not classified	Expense		3,901	12-31-2021
SQM S.A.	01-I017200 - CEDAM at Puquíos at Llamara	Sustainability: Environment and Risk Prevention	Expense		302	12-31-2021
SQM S.A.	01-I017400 - Development of Pintados and Deposit Humberstone	Sustainability: Environment and Risk Prevention	Expense		25	12-31-2021
SQM S.A.	01-I019400 - EIA Expansion of TEA and Seawater Impulsion	Environmental processing	Assets		508	12-31-2021
SQM S.A.	01-I028200 - EIA Llamara	Environmental processing	Expense		478	12-31-2021
SQM S.A.	01-I028300 - Implementation PDC 2019 - Llamara sanction process	Sustainability: Environment and Risk Prevention	Expense		463	12-31-2021
SQM S.A.	01-I030700 - EIA Project Sector Permits	Environmental processing	Expense		42	12-31-2021
SQM S.A.	01-I038400 - Update hydrogeological model	Sustainability: Environment and Risk Prevention	Expense		63	12-31-2021
SQM S.A.	01-I039600 - New Warehouse Iodine Stock NV	Environmental processing	Assets		796	12-31-2021
SQM S.A.	01-I039700 - Adapting Pond Substances NV	Environmental processing	Assets		446	12-31-2021
SQM S.A.	01-P010300 - Adapting pond substances PV	Environmental processing	Assets		435	12-31-2021
SQM S.A.	01-P010400 - Adapting dispatch warehouse PV	Environmental processing	Assets		215	12-31-2021
SQM S.A.	01-I041400 - DIA New pits and stockpiles in Sur Viejo	Environmental processing	Expense		355	12-31-2021
SQM S.A.	01-I044400 - Improve NV proprietary warehouse and offices	Sustainability: Environment and Risk Prevention	Expense		4	12-31-2021
SQM S.A.	01-I050900 – Responsible Conduct	Sustainability: Environment and Risk Prevention	Expense		1,575	12-31-2021
SQM S.A.	01-S022000 - Sustainability projects SQM-Sustainable luminaires iris-NV	Sustainability: Environment and Risk Prevention	Assets		40	12-31-2021
SQM Industrial S.A.	04-I017700 - Basic Engineering and EIA for TEA industrial area and seawater impulsion N.V	Sustainability: Environment and Risk Prevention	Assets		59	12-31-2021
SQM Industrial S.A.	04-J013500 - Handling equipment associated with PCBs	Sustainability: Environment and Risk Prevention	Expense		304	12-31-2021
SQM Industrial S.A.	04-J015200 - Implementation Economizers	Sustainability: Environment and Risk Prevention	Assets		23	12-31-2021
SQM Industrial S.A.	04-J015700 - Update of Closure Plans	Sustainability: Environment and Risk Prevention	Expense		53	12-31-2021
SQM Industrial S.A.	04-J015800 - Other Sector Regulatory Measures	Sustainability: Environment and Risk Prevention	Expense		41	12-31-2021
SQM Industrial S.A.	04-J017200 - Assurance Availability Sistema Agua Industrial Pampas	Sustainability: Environment and Risk Prevention	Assets		3	12-31-2021
SQM Industrial S.A.	04-M003900 - Revocation PDME	Sustainability: Environment and Risk Prevention	Expense		47	12-31-2021
SQM Industrial S.A.	04-J022700 - DIA Integración Faena Coya Sur	Environmental processing	Expense		176	12-31-2021
SQM Industrial S.A.	04-J022800 - Adaptation light pollution	Sustainability: Environment and Risk Prevention	Assets		246	12-31-2021
SQM Industrial S.A.	04-M004300 - Reduction of Industrial Waste	Sustainability: Environment and Risk Prevention	Expense		97	12-31-2021
SQM Industrial S.A.	04-I038200 - Well Water Efficiency N.V. II	Sustainability: Environment and Risk Prevention	Assets		25	12-31-2021
SQM Industrial S.A.	04-I038600 - Extraction monitoring N.V.	Sustainability: Environment and Risk Prevention	Assets		360	12-31-2021
SQM Industrial S.A.	04-J023700 - Regularization Hazardous Substances Decree SQM Industrial	Environmental processing	Assets		161	12-31-2021
SQM Industrial S.A.	04-I046900 - Pilot Floating Photovoltaic Solar Plant (FPV-SV) - Conceptual Engineering	Sustainability: Environment and Risk Prevention	Expense		13	12-31-2021
SQM Industrial S.A.	04-J025000 - Boiler Scrubber NPT3	Sustainability: Environment and Risk Prevention	Assets		200	12-31-2021
SQM Industrial S.A.	04-M005400 - Rio Loa Preventive Monitoring (Water and Aquatic Biota Quality)	Sustainability: Environment and Risk Prevention	Expense		202	12-31-2021
SQM Industrial S.A.	04-M004600 - Degreasing Chamber TAS ME Plant	Sustainability: Environment and Risk Prevention	Expense		2	12-31-2021
SQM Industrial S.A.	04-I050100 - Engineering Seawater impulsion system	Sustainability: Environment and Risk Prevention	Assets		6	12-31-2021
SQM Industrial S.A.	04-M005600 - Improve N&Y warehouse	Sustainability: Environment and Risk Prevention	Assets		26	12-31-2021
SQM Industrial S.A.	04-S022100 - Recovery of prilled heat in CS/Electric Buses	Sustainability: Environment and Risk Prevention	Assets		345	12-31-2021
Subtotal					12,037

149

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Committed expenses for future periods as of September 30, 2021

Parent Company or			Asset /	Disbursement		Exact or Estimated Date of
Subsidiary	Project Name Associated with Disbursement	Reason for Disbursement	Expense	ThUS$		Disbursement
SIT S.A.	03-T009900 - Air quality monitoring system Tocopilla	Sustainability: Environment and Risk Prevention	Assets		34	12-31-2021
SIT S.A.	03-T010500 - Hydrocarbon Detection System Tocopilla Port	Sustainability: Environment and Risk Prevention	Assets		21	12-31-2021
SIT S.A.	03-T011400 - Purchase of spill control materials	Sustainability: Environment and Risk Prevention	Assets		40	12-31-2021
SQM Salar S.A.	19-L014700 - Industrial Waste Management	Sustainability: Environment and Risk Prevention	Expense		27	12-31-2021
SQM Salar S.A.	19-L018800 - UPC Consulting for NW and Others	Sustainability: Environment and Risk Prevention	Expense		34	12-31-2021
SQM Salar S.A.	19-L018900 - Evaporation 2018-2019	Sustainability: Environment and Risk Prevention	Assets		38	12-31-2021
SQM Salar S.A.	19-L019800 - Paleoclimate Study Salar de Atacama	Sustainability: Environment and Risk Prevention	Expense		35	12-31-2021
SQM Salar S.A.	19-L020000 - Improvement of Operational Monitoring Network	Sustainability: Environment and Risk Prevention	Assets		95	12-31-2021
SQM Salar S.A.	19-L021700 - Update RH y MA 2019	Environmental processing	Expense		32	12-31-2021
SQM Salar S.A	19-S013400 - Online monitoring	Sustainability: Environment and Risk Prevention	Expense		325	12-31-2021
SQM Salar S.A.	19-C006800 - Renovation lighting towers - Salar del Carmen plant	Sustainability: Environment and Risk Prevention	Assets		2	12-31-2021
SQM Salar S.A.	19-L024200 - Environmental Risk Analysis Study Salar de Atacama	Sustainability: Environment and Risk Prevention	Expense		58	12-31-2021
SQM Salar S.A.	19-S016200 - Acquisition of Hardware- Software	Sustainability: Environment and Risk Prevention	Assets		4	12-31-2021
SQM Salar S.A.	19-S016300 - Consulting 2020	Sustainability: Environment and Risk Prevention	Assets		36	12-31-2021
SQM Salar S.A.	19-S016400 - Implementation Acquiere BD Amb	Sustainability: Environment and Risk Prevention	Assets		1	12-31-2021
SQM Salar S.A.	19-S016500 - Incorporation of IA prediction test models	Sustainability: Environment and Risk Prevention	Assets		8	12-31-2021
SQM Salar S.A.	19-S016700 – Improvements to recharge understanding in SdA	Sustainability: Environment and Risk Prevention	Assets		16	12-31-2021
SQM Salar S.A.	19-S016900 - Monitoring water-vegetation dynamics in the Aguas de Quelana sector	Sustainability: Environment and Risk Prevention	Assets		35	12-31-2021
SQM Salar S.A.	19-L025300 - Compliance with Sanitary Resolution	Sustainability: Environment and Risk Prevention	Assets		161	12-31-2021
SQM Salar S.A.	19-L025800 - Normalization of Admin. System	Sustainability: Environment and Risk Prevention	Assets		2	12-31-2021
SQM Salar S.A.	19-C008600 - Asphalting plants at Salar del Carmen	Sustainability: Environment and Risk Prevention	Assets		14	12-31-2021
SQM Salar S.A.	19-L026800 - Removal of old dryers at Plant MOP G III	Environmental processing	Assets		20	12-31-2021
SQM Salar S.A.	19-L028200 - Environmental Monitoring 2020	Sustainability: Environment and Risk Prevention	Expense		195	12-31-2021
SQM Salar S.A.	19-L029800 - Adapting to DS43	Environmental processing	Assets		99	12-31-2021
SQM Salar S.A.	19-L030100 - Compliance with Sectoral Environmental Permit 136 at Salar de Atacama site	Environmental processing	Expense		18	12-31-2021
SQM Salar S.A.	19-L030200 - Removal and final disposal of non-hazardous waste at Salar de Atacama landfill site	Sustainability: Environment and Risk Prevention	Assets		37	12-31-2021
SQM Salar S.A.	19-L031300 - Global FM Compliance Maintenance Area	Environmental processing	Expense		169	12-31-2021
SQM Salar S.A.	19-L031700 - Regulation of Emissions Sources of Light DS N°43	Environmental processing	Assets		1,264	12-31-2021
SQM Salar S.A.	19-L032300 - Hydrogeology EIA 2021	Sustainability: Environment and Risk Prevention	Assets		700	12-31-2021
SQM Salar S.A.	19-C012400 - New Disposal Salt Deposits	Sustainability: Environment and Risk Prevention	Assets		6,024	12-31-2021
SQM Salar S.A.	19-S021500 - SK Improvements -1300 2021	Environmental processing	Expense		14	12-31-2021
SQM Nitratos S.A.	12-I039000 - Adaptation of hazardous waste warehouse	Environmental processing	Assets		22	12-31-2021
Minera Búfalo	20-A008200 - Metallic Project Buffalo Stage 1	Environmental processing	Expense		21	12-31-2021
Orcoma Estudios Spa	15-I039100 - Sectoral Permits and compliance EIA Orcoma Proyect	Environmental processing	Expense		659	12-31-2021
SQM Potasio S.A.	14-I039400 - Adapting Pond Iris	Environmental processing	Assets		417	12-31-2021
SQM Potasio S.A.	14-I039800 - Adapting hazardous substances warehouse IRIS	Environmental processing	Assets		225	12-31-2021
Subtotal					10,902
Total					22,939

150

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Accumulated expenses as of December 31, 2020

Parent Company or			Asset /	Disbursement		Exact or Estimated Date
Subsidiary	Project Name	Reason for Disbursement	Expense	ThUS$		of Disbursement
Miscellaneous	Environment - Operating Area	Not classified	Expense		10,376	06-30-2020
SQM S.A.	01-I017200 - CEDAM at Puquíos (ponds) at Llamara	Sustainability: Environment and Risk Prevention	Expense		4	11-12-2020
SQM S.A.	01-I017600 - Regularization of Substances Decree	Environmental processing	Expense		121	10-22-2020
SQM S.A.	01-I018700 - Penalization Process for Salar de Llamara	Environmental processing	Assets		-	03-31-2020
SQM S.A.	01-I019400 - EIA Expansion of TEA and Seawater Impulsion	Environmental processing	Assets		791	12-31-2020
SQM S.A.	01-I028200 - EIA Llamara	Environmental processing	Expense		722	12-30-2020
SQM S.A.	01-I028300 - Implementation of PDC 2019	Sustainability: Environment and Risk Prevention	Expense		593	12-31-2020
SQM S.A.	01-I030700 - Sector Permits EIA Project	Environmental processing	Expense		280	11-20-2020
SQM S.A.	01-I035800 - Sustainability DS43 Phase 2	Sustainability: Environment and Risk Prevention	Assets		20	11-03-2020
SQM S.A.	01-I038400 - Update hydrogeological model	Sustainability: Environment and Risk Prevention	Gasto		76	12-31-2020
SQM S.A.	01-I039600 - New warehouse iodine stock NV	Environmental processing	Assets		54	12-31-2020
SQM S.A.	01-P010400 - Adequacy of office cellar PV	Environmental processing	Assets		16	12-06-2020
SQM S.A.	01-S014200 - Proyect	Environmental processing	Gasto		63	10-01-2020
SQM S.A.	01-S015900 - Sustainability SQM	Environmental processing	Gasto		975	10-26-2020
SQM Industrial S.A.	04-I017700 - Basic Engineering and EIA for TEA industrial area and seawater impulsion N.V.	Sustainability: Environment and Risk Prevention	Assets		133	07-10-2020
SQM Industrial S.A.	04-I025000 - Re-drilling Well 2PL-2	Sustainability: Environment and Risk Prevention	Expense		1	02-29-2020
SQM Industrial S.A.	04-I032600 - Well Water Efficiency – Rec	Sustainability: Environment and Risk Prevention	Assets		123	07-30-2020
SQM Industrial S.A.	04-I038200 - Well Water Efficiency 2	Sustainability: Environment and Risk Prevention	Assets		79	12-31-2020
SQM Industrial S.A.	04-I038600 - Monitoring Extractions NV	Sustainability: Environment and Risk Prevention	Assets		15	12-24-2020
SQM Industrial S.A.	04-J012200 - DIA and regularization of wells CS	Environmental processing	Assets		-	02-25-2020
SQM Industrial S.A.	04-J015200 - Implement Economizers	Sustainability: Environment and Risk Prevention	Assets		-	09-25-2020
SQM Industrial S.A.	04-J015700 - Update closure plans	Sustainability: Environment and Risk Prevention	Expense		83	12-31-2020
SQM Industrial S.A.	04-J015800 - Other sectoral regularizations	Sustainability: Environment and Risk Prevention	Expense		42	09-24-2020
SQM Industrial S.A.	04-J017200 - Guarantee availability S	Sustainability: Environment and Risk Prevention	Assets		109	07-02-2020
SQM Industrial S.A.	04-J022700 - DIA Integración Faena Coya Sur	Environmental processing	Expense		87	12-31-2020
SQM Industrial S.A.	04-J022800 - Adequacy of light pollution	Sustainability: Environment and Risk Prevention	Assets		48	11-30-2020
SQM Industrial S.A.	04-J023700 - Regularization Decree Hazardous Substances	Environmental processing	Assets		35	11-20-2020
SQM Industrial S.A.	04-M004300 - Industrial Waste Reduction	Sustainability: Environment and Risk Prevention	Expense		77	12-31-2020
SQM Industrial S.A.	04-P010200 - PV Piles Project (DIA)+ Study	Sustainability: Environment and Risk Prevention	Expense		57	11-24-2020
SQM Salar S.A.	19-C006800 - Renovation of lighting towers	Sustainability: Environment and Risk Prevention	Assets		19	09-07-2020
SQM Salar S.A.	19-C008600 - Asphalting plants Salar del Carmen	Sustainability: Environment and Risk Prevention	Assets		432	12-30-2020
SQM Salar S.A.	19-L014700 - Industrial Waste Handling	Sustainability: Environment and Risk Prevention	Expense		45	09-30-2020
SQM Salar S.A.	19-L018800 - UPC Consulting for NW and others	Sustainability: Environment and Risk Prevention	Expense		26	11-13-2020
SQM Salar S.A.	19-L018900 - Evaporation 2018-2019	Sustainability: Environment and Risk Prevention	Assets		1	12-31-2020
SQM Salar S.A.	19-L019800 - Paleoclimate Study (Iberian)	Sustainability: Environment and Risk Prevention	Expense		14	07-16-2020
SQM Salar S.A.	19-L021400 - Environmental Monitoring 2019	Environmental processing	Expense		11	12-31-2020
SQM Salar S.A.	19-L021700 - Improvement of RH and MA 2019	Environmental processing	Expense		40	12-30-2020
Total					15,568

151

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

Accumulated expenses as of December 31, 2020

			Asset /	Disbursement		Exact or Estimated Date of
Parent Company or Subsidiary	Project Name	Reason for Disbursement	Expense	ThUS$		Disbursement
SQM Salar S.A.	19-L023200 - Surveying equipment 2019	Sustainability: Environment and Risk Prevention	Assets		3	03-18-2020
SQM Salar S.A.	19-L025300 - Compliance with Sanitary Resolution	Sustainability: Environment and Risk Prevention	Assets		51	12-13-2020
SQM Salar S.A.	19-L025600 - Purchase of Generators, Miscellaneous	Sustainability: Environment and Risk Prevention	Assets		62	12-31-2020
SQM Salar S.A.	19-L025800 - Standardization of Admin. System	Sustainability: Environment and Risk Prevention	Assets		14	12-31-2020
SQM Salar S.A.	19-L026800 - Removal of old Dryers in MOP G III Plant	Environmental processing	Assets		20	12-22-2020
SQM Salar S.A.	19-S013400 - On-Line Monitoring	Sustainability: Environment and Risk Prevention	Expense		363	12-15-2020
SQM Salar S.A.	19-S016200 - Acquisition of Hardware - Software	Sustainability: Environment and Risk Prevention	Assets		8	11-30-2020
SQM Salar S.A.	19-S016300 - 2020 Consultancy	Sustainability: Environment and Risk Prevention	Assets		33	11-30-2020
SQM Salar S.A.	19-S016400 - Implementation Acquisition of BD Amb.	Sustainability: Environment and Risk Prevention	Assets		4	12-31-2020
SQM Salar S.A.	19-S016700 - Improved understanding of reloading	Sustainability: Environment and Risk Prevention	Assets		49	12-31-2020
Orcoma Estudios Spa	15-I039100 - Sectoral Permitting and Compliance Amb.	Environmental processing	Expense		252	12-31-2020
Minera Búfalo	20-A008200 - Buffalo Project	Environmental processing	Expense		61	11-19-2020
SQM Potasio S.A.	14-I039800 - Adequacy of IRIS Hazardous Substances Warehouse	Environmental processing	Assets		9	12-06-2020
Subtotal					929
Total					16,497

152

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

Future expenses as of December 31, 2020

			Asset /	Disbursement		Exact or Estimated Date of
Parent Company or Subsidiary	Project Name	Reason for Disbursement	Expense	ThUS$		Disbursement
Miscellaneous	Environment - Operating Area	Not classified	Expense		12,276	12-31-2021
SQM S.A.	01-I017200 - CEDAM at Puquíos (ponds) at Llamara	Sustainability: Environment and Risk Prevention	Expense		42	12-31-2021
SQM S.A.	01-I017400 - Development of Pintados and surrounding area.	Sustainability: Environment and Risk Prevention	Expense		108	12-31-2021
SQM S.A.	01-I018700 - Salar de Llamara Sanction Process	Environmental processing	Assets		-	12-31-2021
SQM S.A.	01-I019400 - EIA Expansion of TEA and Seawater Impulsion	Environmental processing	Assets		5	12-31-2021
SQM S.A.	01-I028300 - Implementation of PDC 2019	Sustainability: Environment and Risk Prevention	Expense		332	12-31-2021
SQM S.A.	01-I030700 - Sectorial Permits EIA Project Tente en el Aire	Environmental processing	Expense		66	12-31-2021
SQM S.A.	01-I031300 - DIA Actualization RCA TEA	Environmental processing	Expense		369	12-31-2021
SQM S.A.	01-I035800 - Substantiation DS43 Phase 2	Sustainability: Environment and Risk Prevention	Assets		39	12-31-2021
SQM S.A.	01-I038400 - Hydrogeological model update	Sustainability: Environment and Risk Prevention	Expense		124	12-31-2021
SQM S.A.	01-I039600 - New Warehouse Stock Iodine NV	Environmental processing	Assets		606	12-31-2021
SQM S.A.	01-I039700 - Substance Pond Adaptation	Environmental processing	Assets		380	12-31-2021
SQM S.A.	01-P010300 - Adequacy of substance tanks	Environmental processing	Assets		355	12-31-2021
SQM S.A.	01-P010400 - Adaptation of PV dispatch warehouse	Environmental processing	Assets		294	12-31-2021
SQM S.A.	01-S014200 - Proyecta	Environmental processing	Expense		7	12-31-2021
SQM S.A.	01-S015900 – SQM Sustainability	Environmental processing	Expense		155	12-31-2021
SQM Industrial S.A.	04-I025000 - Re-drilling Well 2PL-2	Sustainability: Environment and Risk Prevention	Expense		127	12-31-2021
SQM Industrial S.A.	04-I032600 - Well Water Efficiency – Rec.	Sustainability: Environment and Risk Prevention	Assets		27	12-31-2021
SQM Industrial S.A.	04-I038200 - Well Water Efficiency 2	Sustainability: Environment and Risk Prevention	Assets		551	12-31-2021
SQM Industrial S.A.	04-I038600 - Monitoring Extractions NV	Sustainability: Environment and Risk Prevention	Assets		240	12-31-2021
SQM Industrial S.A.	04-J015200 - Implementation Economizers	Sustainability: Environment and Risk Prevention	Assets		30	12-31-2021
SQM Industrial S.A.	04-J015700 - Update of Closure Plans	Sustainability: Environment and Risk Prevention	Expense		17	12-31-2021
SQM Industrial S.A.	04-J015800 - Other Sector Regulatory Measures	Sustainability: Environment and Risk Prevention	Expense		120	12-31-2021
SQM Industrial S.A.	04-J017200 - Guarantee availability S	Sustainability: Environment and Risk Prevention	Assets		32	12-31-2021
SQM Industrial S.A.	04-J019900 - Provisional Access to Cerro Domina	Sustainability: Environment and Risk Prevention	Expense		4	12-31-2021
SQM Industrial S.A.	04-J022700 - DIA Integration of the Coya Sur mine site	Environmental processing	Expense		296	12-31-2021
SQM Industrial S.A.	04-J022800 - Adjustment of Light Pollution	Sustainability: Environment and Risk Prevention	Assets		321	12-31-2021
SQM Industrial S.A.	04-J023700 - Regularization of SQM Industrial Hazardous Substances Decree	Environmental processing	Assets		615	12-31-2021
SQM Industrial S.A.	04-M004300 - Reducción de Residuos Industriales	Sustainability: Environment and Risk Prevention	Expense		173	12-31-2021
SQM Industrial S.A.	04-P010200 - PV Piles Project (EIS)+ Study	Sustainability: Environment and Risk Prevention	Expense		275	12-31-2021
SIT S.A.	03-T009900 - Air Quality Monitoring System Tocopilla	Sustainability: Environment and Risk Prevention	Assets		82	12-31-2021
SIT S.A.	03-T010500 - Hydrocarbon Detection System Tocopilla Port	Sustainability: Environment and Risk Prevention	Assets		75	12-31-2021
SQM Salar S.A.	19-C006800 - Renovation of lighting tower park	Sustainability: Environment and Risk Prevention	Assets		2	12-31-2021
SQM Salar S.A.	19-L014700 - Industrial Waste Management	Sustainability: Environment and Risk Prevention	Expense		89	12-31-2021
SQM Salar S.A.	19-L018800 - UPC Consulting for NW and others	Sustainability: Environment and Risk Prevention	Expense		46	12-31-2021
SQM Salar S.A.	19-L018900 - Evaporation 2018-2019	Sustainability: Environment and Risk Prevention	Assets		41	12-31-2021
SQM Salar S.A.	19-L019800 - Paleoclimate Study (Iberian)	Sustainability: Environment and Risk Prevention	Expense		35	12-31-2021
Total					18,356

153

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

Future expenses as of December 31, 2020

			Asset /	Disbursement		Exact or Estimated Date of
Parent Company or Subsidiary	Project Name	Reason for Disbursement	Expense	ThUS$		Disbursement
SQM Salar S.A.	19-L020000 - Improvement of Operations Monitoring Network	Sustainability: Environment and Risk Prevention	Assets		95	12-31-2021
SQM Salar S.A.	19-L021400 - Environmental Monitoring 2019	Environmental processing	Expense		21	12-31-2021
SQM Salar S.A.	19-L021700 - Update RH y MA 2019	Environmental processing	Expense		92	12-31-2021
SQM Salar S.A.	19-L024200 - Environmental Risk Analysis Study	Sustainability: Environment and Risk Prevention	Expense		58	12-31-2021
SQM Salar S.A.	19-L025300 - Compliance with Sanitary Resolution	Sustainability: Environment and Risk Prevention	Assets		161	12-31-2021
SQM Salar S.A.	19-L025600 - Purchase of Generators, Variators	Sustainability: Environment and Risk Prevention	Assets		46	12-31-2021
SQM Salar S.A.	19-L025800 - Normalization of Admin. System	Sustainability: Environment and Risk Prevention	Assets		8	12-31-2021
SQM Salar S.A.	19-L026800 - Removal of old dryers at Plant MOP G III	Environmental processing	Assets		20	12-31-2021
SQM Salar S.A.	19-L026900 - Cameras and Lighting Products	Environmental processing	Assets		17	12-31-2021
SQM Salar S.A.	19-S013400- Online Monitoring	Sustainability: Environment and Risk Prevention	Expense		187	12-31-2021
SQM Salar S.A.	19-S016200 - Acquisition of Hardware- Software	Sustainability: Environment and Risk Prevention	Assets		14	12-31-2021
SQM Salar S.A.	19-S016300 - Consulting 2020	Sustainability: Environment and Risk Prevention	Assets		39	12-31-2021
SQM Salar S.A.	19-S016400 - Implementation Acquiere BD Amb	Sustainability: Environment and Risk Prevention	Assets		4	12-31-2021
SQM Salar S.A.	19-S016500 - Incorporation of test models	Sustainability: Environment and Risk Prevention	Assets		12	12-31-2021
SQM Salar S.A.	19-S016700 – Improvements to recharge understanding	Sustainability: Environment and Risk Prevention	Assets		81	12-31-2021
SQM Salar S.A.	19-S016900 - Water dynamics monitoring	Sustainability: Environment and Risk Prevention	Assets		35	12-31-2021
SQM Nitratos S.A.	12-I039000 - Adaptation of hazardous waste warehouse	Environmental processing	Assets		80	12-31-2021
Orcoma Estudios Spa	15-I039100 - Sectoral Permits and compliance	Environmental processing	Expense		235	12-31-2021
Minera Búfalo	20-A008200 - Búfalo Project	Environmental processing	Expense		189	12-31-2021
SQM Potasio S.A.	14-I039400 - Adapting Pond Iris	Environmental processing	Assets		370	12-31-2021
SQM Potasio S.A.	14-I039800 - Adapting hazardous substances warehouse IRIS	Environmental processing	Assets		261	12-31-2021
Subtotal					2,025
Total					20,381

154

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

22.3 Description of each project, indicating whether these are in process or have been finished

Sociedad Quimica y Minera de Chile S.A.

Environmental Commitments Implementation Projects

I0172: The project includes the commitments the Tamarugos Environmental Management Plan, which contemplates an Environmental Education Program that includes the design, construction and start-up of an Environmental Education Center (CEDAM) at Puquios de Llamara.

I0174: The Project include implementing "Value Added" at the former Pintados station. and a storage facility in Humberstone to store archaeological material, committed to in environmental assessments.

I0283: The project involves the implementation of actions committed in the PDC. The implementation considers consulting with consultants (legal, hydrogeological and in processing with PDC), studies and additional follow-up.

I0307: The project involves the preparation and processing of sectoral and environmental permits with the DGA and SERNAGEOMIN for the “Tente en el Aire” Project.

I0384: The project contemplates updating the Conceptual and Numerical Hydrogeological Model for the Pampa del Tamarugal Aquifer.

Environmental Improvement Initiatives and Projects

I0176: The project involves diagnosis of works for their adaptation to the recently enacted Regulation of Hazardous Substances.

I0396: The project involves improving NV's hazardous substances pond facilities, in accordance with the Adaptation Plan for Hazardous Substances Regulation DS 43.

I0397: The project involves constructing a new NV warehouse, in accordance with the Hazardous Substances Regulation DS 43.

I0444: The project considers improving the proprietary warehouse and environmental offices in Nueva Victoria.

P0103: The project involves improving the hazardous substances pond facilities at PV, in accordance with the Adaptation Plan for Hazardous Substances Regulation DS 43.

P0104: The project involves adapting the PV warehouse, in accordance with the Hazardous Substances Regulation DS 43.

I0509: The project involves improving the NV Iodine plant sectors aligned with the CR principles in each of the principles that this requires (safety, environment, waste).

S0220: The goal of the project is to finance the change in lighting with less energy consumption in the Iris Camp, aligned with the goals of the company’s sustainable development plan.

155

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

Projects for the Studies and Presentations to the Environmental Assessment System

I0194: The project consists of the preparation and processing of the Environmental Impact Study for Expansion of TEA and Impulsion.

I0282: The project consists of the preparation and processing of the Environmental Impact Study for Llamara.

I0358: The project contemplates standardizing facilities in accordance with standard DS43, Hazardous Substances regulation.

I0414: The project includes the preparation and processing of an Environmental Impact Statement (EIS) required to obtain environmental authorization for additional surface ponds, new scrap storage areas, increased transport of nitrate-rich salts to Coya Sur and increased BF portage (AFA) from Nueva Victoria to Sur Viejo.

S0142: The project considers SQM baseline survey in terms of ESG, we will compare ourselves to the industry and best practices to later plan how to reduce the gaps in the future with concrete initiatives.

S0159: The project considers surveying all the company’s sustainability initiatives, integrating the different practices in the areas of the company, identifying its strengths and opportunities to strengthen the management of its sustainability, aligning the strategy with the SDGs for all SQM operations in Chile. Support in completing the DJSI survey.

SQM Industrial S.A.

Environmental Commitments Implementation Projects

J0158: The project will prepare and process sectorial permits for favorable reports to construct in Coya Sur (CS) and permits for hydraulic works defined in Article 294 of the Water Code (evaporation wells) at CS and NV.

J0250: The project involves the development of engineering and installation of a scrubber in the boilers in the NPT3 plant, in compliance with the environmental commitment.

Environmental Improvement Initiatives and Projects

I0326: The project considers installation of floating covers to reduce evaporation in water collection wells in NV.

I0382: The project consists of acquisition of floating covers to decrease evaporation, reducing the loss of water resources for the productive phase of iodine.

I0386 The project considers a monitoring and transmission system for effective extractions and dynamic levels in extraction wells owned by SQM, which supply the Nueva Victoria site.

I0469: The project considers the development of conceptual engineering studies for assessment of technical-economic feasibility for the implementation of a pilot floating photovoltaic solar plant in the Sur Viejo water ponds (FPV-SV).

J0135: This project consists of dealing with all the oils and components that contain 50ppm or more of Policlorobife (PCB) by 2025 at the latest.

J0152: The project will install exhaust gas heat recovery equipment in boilers and implement associated structural improvements.

J0157: The project will update the closure plans in accordance with the normal regime established by current legislation. These requirements include an initial external audit, detailed risks analysis and their control, and other requirements.

156

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

J0172: The project will ensure the availability of water resources in "CS, ME, VE and CV" adductions.

J0228: The project considers the installation and normalization of lighting in Coya Sur and María Elena.

J0237: The project involves improving the hazardous substance pond facilities at CS and improvements to the hazardous substance storage facilities at CS and ME, in accordance with the Adaptation Plan for Hazardous Substances Regulation DS 43.

M0039: The project consists of undertaking the legal technical analyses necessary to request the Revocation of the María Elena Decontamination Plan with the Ministry of the Environment

M0043: The project considers the removal of industrial waste to free up the sites defined for this purpose.

M0046: The project involves controlling and eliminating the passage of grease from the TAS plant into the CS plants.

M0056: The project involves improving electrical facilities in the storage warehouses, repairing structures and roofs, improving patio floors, reducing waste generation, reducing the risk of fatigue among warehouse staff and increasing productivity, including equipment with electrical traction and mechanical support for storage and dispatch.

I0501: The project involves constructing a 400 l/s seawater collection and impulsion system for watering the leach heap, iodide plant and evaporation pond.

S0221: The project involves financing heat recovery in the prilling plant in CS and hiring electric buses. The goal of the project is to finance initiatives that are aligned with the goals of the company’s sustainable development plan.

Projects for the Studies and Presentations to the Environmental Assessment System

I0177: The project will complete the basic engineering, execute the EIA Tente en el Aire, obtain the legal and sectorial permits for a second stage to secure the execution of the project.

J0227: The project consists of the preparation and processing of an Environmental Impact Declaration (DIA) to extend the useful life of the NPT2 plant and incorporate fuel with KNO3. Prepare and process a DIA for the expansion and updating of Coya Sur.

M0054: The project involves developing the preliminary identification studies of the mine and PV heap area, identification of intake points and layouts for the sea water impulsion line.

SIT S.A.

Environmental Improvement Initiatives and Projects

T0099: The project involves preparing a detailed emissions inventory, particulate matter dispersion model and protocol development. Measurement of fugitive emissions from Tocopilla Port operations and Air Quality Monitoring.

T0105: The purpose of the project is to install a system that detects and issues early warnings of hydrocarbons in the sea near the facilities at Tocopilla Port.

T0114: The goal of the project is to have a containment system to protect against water contamination from hydrocarbons or other contaminant liquid substances.

157

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

SQM Salar S.A.

Environmental Commitments Implementation Projects

L0198: The project will date sediment in the depositional environments of the last 50,000 years to complement the facies sedimentological model provided by the consultant. The project will try to reconstruct the variability history of the lagoon system with absolute ages.

L0200: The project will identify an appropriate device. Field testing of sensors. Purchase of sensors for all points. Installation of sensors. Analyze remote data transmission (future project).

L0214: The project consists of implementing a 2019 environmental monitoring plan to monitor an optimum compliance of current environmental regulations.

L0217: The project involves quoting new equipment. Purchase of new equipment. Reparation of old equipment for use as backup in the event of unexpected failure of new equipment.

L0301: The project will identify the requirements to request landfill permits and ensure their physical and chemical stability. It will include the safety measures that apply to construction and any future growth, in order to protect the environment and the life and welfare of people.

L0323: This considers undertaking hydrogeological and hydroecological studies, improvements in hydrogeological numerical modeling, instrumentation in environmentally sensitive areas and topographical surveys, to improve the hydrogeological-environmental understanding of the Salar de Atacama, to better respond to questions from environmental officials.

S0134: The project involves showing information online regarding extractions and reinjections from the Salar. Additionally, it includes biotic and hydrogeological information to show authorities and the community the actions implemented by SQM for the environmental variable it has committed to.

C0124: The project involves the construction of discarded salt deposits, required by the increase in production in the lithium hydroxide and lithium carbonate plant.

Environmental Improvement Initiatives and Projects

C0068: The project consists of the renovation of 11 Maxi light towers, eliminating fuel consumption.

C0086: The project involves asphalting the Salar de Carmen plants to reduce the dust particles in suspension raised during the movement of trucks.

L0147: This project contemplates the reduction of these industrial waste storage points and packaging of different industrial waste according to the RCA and legislation in force.

L0188: The project involves the participation of an external consulting team to narrow down the sources of the risks identified, propose operational optimization plans, improvements to control systems (monitoring networks) and support in modeling this deposit with a view to a better evolution of short- and medium-term projections (5 years).

L0189: It includes improving the current lysimeter stations and implementing new stations in important sectors that are not currently measured, with the ability to remotely transmit information. This will improve the spatial coverage of the stations that measure evaporation within the basin. This considers consulting with an expert to propose methodological improvements.

L0242: This contemplates consulting to study the large-scale behavior of lagoon systems through the development of analytic or semi-analytic solutions.

L0253: This considers the regularization of the potable water system and the disposal of sewage waters from management.

158

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

L0256: This contemplates the renovation of generators in SQM Salar to extend their useful life and purchase variators and transformers in different strengths to have stock in the event of failures and thereby ensure ongoing operations.

L0258: This considers the normalization of the Electricity System for maintaining and operating the transformer substations.

L0268: This considers the removal of old dryers and their final disposal at authorized facilities.

L0269: This considers improving controls over plant equipment and feed mixtures to keep products within specifications, to comply with current regulations regarding lighting and mitigate substandard conditions at the plant.

L0282: It will consider an ecological assessment plan and environmental variables, a monitoring and early warning plan, a contingency plan and a vegetation response model. Hydro-geological modeling and early warning well modeling.

L0298: It will consider adapting civil works to store hazardous substances, according to DS43.

L0302: It will consider removing non-hazardous industrial waste stored on site and reduce the amount of waste in authorized landfills.

L0307: It will consider electrifying 21 wells, which represent almost 27% of wells, from the Salar de Atacama generator, to optimize the use of the fuel supply truck, reduce the carbon footprint, and the losses associated with fuel distribution.

L0313: This considers generating protection and backup systems to ensure reliable operation of medium voltage equipment, which may provoke harm to people or damages to facilities.

L0317: This considers standardizing all external sources of lighting that do not have DS 43 certification for light pollution. The main activity involves regulating or changing all sources of emission that do not meet standards, considering the scopes and procedures established in this decree.

S0162: This contemplates the acquisition of technology for optimization and traceability of GHS data.

S0163: The project contains measurement methodology for different terrain parameters and subsequent conceptual modeling.

S0164: This contemplates the unification of proprietary and third-party databases.

S0165: This project takes responsibility for an opportunity to improve the speed of data analysis and efficiency in decision-making.

S0167: This contemplates a series of measures in the conceptualization of the Salar de Atacama basin, as well as updating data sets, which must be implemented to strengthen the model and which will be the management tool model for the basin.

S0169: The project aims to improve the understanding of dynamics between the vegetation and water bodies in the Aguas de Quelana sector.

L0320: The project aims to finance waste separation and recycling initiatives in the Salar de Atacama.

S0215: The projects aims to implement improvements in practices and reportability in accordance with international standard SK 1300 and to comply annually with SEC (Security Exchange Commission) requirements.

159

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

SQM Nitratos S.A.

Environmental Improvement Initiatives and Projects

I0390: The project contemplates making improvements to the common warehouse in Mina Oeste based on the commitments defined in the adaptation plan presented to the Health SEREMI, thereby complying with DS43.

Sociedad Contractual Minera Bufalo

Environmental Improvement Initiatives and Projects

A0082: The project contemplates the characterization of a potential copper deposit, through the execution of a 3D geophysics program, drilling and sample studies, decreasing the uncertainty of the geological model, as well as processing environmental and sectoral permits that enable the development of activities in the area.

Orcoma Estudios Spa

Environmental Commitments Implementation Projects

I0391: The project consists of obtaining sectoral and environmental sectoral permits for the Orcoma Project.

SQM Potasio S.A.

Environmental Improvement Initiatives and Projects

I0394: The project involves improving Iris's hazardous substances pond facilities, in accordance with the Adaptation Plan for Hazardous Substances Regulation DS 43.

I0398: The project involves adapting the hazardous substances warehouse at the NV Iodine Plant, in accordance with Hazardous Substances Regulation DS 43.

160

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

Note 23 Gains (losses) from operating activities in the statement of income of expenses, included according to their nature

23.1 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 September 30, 2021
Geographic areas	Specialty plant nutrition		Iodine and derivatives		Lithium and derivatives		Potassium		Industrial chemicals		Other		Total ThUS$
Chile		102,495		1,277		410		33,858		2,964		20,160		161,164
Latin America and the Caribbean		62,864		7,471		3,280		62,460		4,840		436		141,351
Europe		133,049		121,323		49,501		30,118		12,546		953		347,490
North America		216,705		80,558		34,743		45,481		21,436		1,606		400,529
Asia and Others		125,337		117,517		395,496		36,082		52,651		406		727,489
Total		640,450		328,146		483,430		207,999		94,437		23,561		1,778,023

For the period ended as of September 30, 2020
Geographic areas	Specialty plant nutrition		Iodine and derivatives		Lithium and derivatives		Potassium		Industrial chemicals		Other		Total ThUS$
Chile		70,156		945		300		19,115		2,616		18,100		111,232
Latin America and the Caribbean		51,919		8,188		1,099		39,552		1,763		290		102,811
Europa		116,054		115,946		35,882		24,199		8,553		624		301,258
North America		187,278		67,197		18,690		27,554		17,508		1,032		319,259
Asia and Others		97,229		70,452		190,498		32,536		77,074		1,036		468,825
Total		522,636		262,728		246,469		142,956		107,514		21,082		1,303,385

161

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

(b) Main product and service lines:

	For the period from January to September of the year				For the period from July to September of the year
	2021		2020		2021		2020
Products and Services	ThUS$		ThUS$		ThUS$		ThUS$
Specialty plant nutrition		640,450		522,636		229,217		174,840
- Sodium Nitrates		14,729		13,925		3,056		4,027
- Potassium nitrate and sodium potassium nitrate		372,845		322,146		123,663		102,217
- Specialty Blends		172,295		115,890		73,807		46,506
- Other specialty fertilizers		80,581		70,675		28,691		22,090
Iodine and derivatives		328,146		262,728		108,630		74,108
Lithium and derivatives		483,430		246,469		185,157		95,253
Potassium		207,999		142,956		88,746		65,471
Industrial chemicals		94,437		107,514		40,491		33,809
Other		23,561		21,082		9,310		9,393
- Services		2,609		2,353		817		824
- Income from property leases		1,149		1,063		274		352
- Income from subleases on right-of-use assets		100		140		24		30
- Commodities		10,730		9,982		5,052		5,284
- Other ordinary income of Commercial Offices		8,973		7,544		3,143		2,903
Total		1,778,023		1,303,385		661,551		452,874

162

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

23.2 Cost of sales

Cost of sales broken down by nature of expense:

	For the period from January to September of the year						For the period from July to September of the year
	2021			2020			2021			2020
Nature of expense	ThUS$			ThUS$			ThUS$			ThUS$
Raw materials and consumables used		(241,178	)		(213,503	)		(91,905	)		(72,824	)
Classes of employee benefit expenses		(162,133	)		(121,144	)		(58,872	)		(44,448	)
Depreciation expense		(150,351	)		(142,073	)		(50,846	)		(46,883	)
Depreciation of Right-of-use Assets (contracts under IFRS 16)		(4,456	)		(4,404	)		(1,523	)		(1,990	)
Amortization expense		(5,659	)		(9,288	)		(3,004	)		(7,077	)
Investment plan expenses		(9,200	)		(11,027	)		(3,201	)		(2,200	)
Provision for materials, spare parts and supplies		(548	)		1,271			28			3,621
Contractors		(111,423	)		(97,091	)		(39,775	)		(34,882	)
Operating leases		(51,833	)		(45,776	)		(15,918	)		(16,700	)
Mining concessions		(6,333	)		(5,091	)		(2,778	)		(1,607	)
Operational transportation		(56,368	)		(49,298	)		(24,164	)		(20,008	)
Freight / product transportation costs		(49,121	)		(35,858	)		(19,685	)		(11,582	)
Purchase of products from third parties		(239,393	)		(191,072	)		(70,878	)		(55,028	)
Insurance		(15,877	)		(11,940	)		(6,444	)		(4,746	)
CORFO rights and other agreements		(81,366	)		(59,138	)		(41,194	)		(18,102	)
Export costs		(69,964	)		(62,763	)		(22,897	)		(23,069	)
Expenses related to variable lease payments (contracts under IFRS 16)		(777	)		(882	)		(397	)		(334	)
Variation in gross inventory		14,162			105,623			15,087			14,488
Variation in inventory provision		4,742			3,521			1,219			2,566
Other		6,387			(3,093	)		383			2,698
Total		(1,230,689	)		(953,026	)		(436,764	)		(338,107	)

163

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

23.3 Other income

	For the period from January to September of the year				For the period from July to September of the year
	2021		2020		2021			2020
Other income	ThUS$		ThUS$		ThUS$			ThUS$
Discounts obtained from suppliers		659		501		232			182
Fines charged to suppliers		66		231		40			8
Taxes recovered		219		101		3			13
Amounts recovered from insurance		1,800		13,296		483			12,259
Overestimate of provisions for third-party obligations		148		83		73			41
Sale of assets classified as properties, plant and equipment		1,385		1,298		258			661
Sale of mining rights		8,296		5,387		77			1,480
Easements, pipelines and roads		3,059		1,619		107			1,601
Refunds for mining patents and notarial expenses		198		56		130			42
Others		234		245		(78	)		58
Total		16,064		22,817		1,325			16,345

23.4 Administrative expenses

	For the period from January to September of the year						For the period from July to September of the year
	2021			2020			2021			2020
Administrative expenses	ThUS$			ThUS$			ThUS$			ThUS$
Employee benefit expenses		(43,348	)		(40,351	)		(15,369	)		(14,528	)
Marketing costs		(2,150	)		(2,014	)		(505	)		(416	)
Amortization expenses		(88	)		(64	)		(30	)		(26	)
Entertainment expenses		(2,592	)		(2,753	)		(585	)		(669	)
Advisory services		(10,333	)		(9,018	)		(3,071	)		(3,069	)
Lease of buildings and facilities		(2,527	)		(2,165	)		(1,500	)		(277	)
Insurance		(3,164	)		(2,585	)		(1,105	)		(1,011	)
Office expenses		(4,469	)		(4,410	)		(1,424	)		(1,371	)
Contractors		(4,598	)		(4,305	)		(2,201	)		(2,256	)
Depreciation of Right-of-use Assets (contracts under IFRS 16)		(1,951	)		(1,962	)		(668	)		(1,045	)
Other expenses		(8,645	)		(5,003	)		(3,524	)		(1,044	)
Total		(83,865	)		(74,630	)		(29,982	)		(25,712	)

164

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

23.5 Other expenses

	For the period from January to September of the year						For the period from July to September of the year
	2021			2020			2021			2020
Other expenses	ThUS$			ThUS$			ThUS$			ThUS$
Depreciation and amortization expense
Depreciation of assets not in use		(28	)		(105	)		(9	)		(81	)
Subtotal		(28	)		(105	)		(9	)		(81	)
Impairment losses (reversals of impairment losses) recognized in profit for the year
Properties, plant and equipment		(6,301	)		(1,370	)		(503	)		(847	)
Intangible assets other than goodwill		(48	)		(140	)		-			-
Non-current assets and disposal groups held for sale		-			(106	)		-			(106	)
Subtotal		(6,349	)		(1,616	)		(503	)		(953	)
Other expenses, by nature
Legal expenses		(23,541	)		(68,712	)		(22,683	)		(65,438	)
VAT and other unrecoverable taxes		(1,393	)		(215	)		(983	)		(148	)
Fines paid		(803	)		(294	)		(43	)		(84	)
Investment plan expenses		1			(757	)		1			(279	)
Exploration expenses		-			(3,704	)		3,373			(1,427	)
Contributions and donations		(6,809	)		(6,697	)		(3,743	)		(2,710	)
Other operating expenses		(733	)		(1,593	)		(505	)		(504	)
Subtotal		(33,278	)		(81,972	)		(24,583	)		(70,590	)
Total		(39,655	)		(83,693	)		(25,095	)		(71,624	)

23.6 Other losses

	For the period from January to September of the year						For the period from July to September of the year
	2021			2020			2021		2020
Other income	ThUS$			ThUS$			ThUS$		ThUS$
Impairment of interests in associates		(3,879	)		478			960		6,102
Sale of investments in associates		-			(11,819	)		-		(11,819	)
Sale of investments in joint ventures		-			(543	)		-		(543	)
Others		81			(157	)		109		39
Total		(3,798	)		(12,041	)		1,069		(6,221	)

165

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

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

	For the period from January to September of the year				For the period from July to September 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)		282		1,244		925		(646	)
Totals		282		1,244		925		(646	)

23.8 Summary of expenses by nature

The following summary considers notes 23.2, 23.4 and 23.5

	For the period from January to September of the year						For the period from July to September of the year
	2021			2020			2021			2020
Expenses by nature	ThUS$			ThUS$			ThUS$			ThUS$
Raw materials and consumables		(241,178	)		(213,503	)		(91,905	)		(72,824	)
Classes of Employee Benefit Expenses		(205,481	)		(161,495	)		(74,241	)		(58,976	)
Depreciation expense		(150,379	)		(142,178	)		(50,855	)		(46,964	)
Depreciation of Right-of-use Assets		(6,407	)		(6,366	)		(2,191	)		(3,035	)
Impairment of Properties, plant and equipment, intangible and Goodwill		(6,349	)		(1,616	)		(503	)		(953	)
Amortization expense		(5,747	)		(9,352	)		(3,034	)		(7,103	)
Legal expenses		(23,541	)		(68,712	)		(22,683	)		(65,438	)
Investment plan expenses		(9,199	)		(11,784	)		(3,200	)		(2,479	)
Exploration expenses		-			(3,704	)		3,373			(1,427	)
Provision for materials, spare parts and supplies		(548	)		1,271			28			3,621
Contractors		(116,021	)		(101,396	)		(41,976	)		(37,138	)
Operational leases		(54,360	)		(47,941	)		(17,418	)		(16,977	)
Mining concessions		(6,333	)		(5,091	)		(2,778	)		(1,607	)
Operational transportation		(56,368	)		(49,298	)		(24,164	)		(20,008	)
Freight and product transportation costs		(49,121	)		(35,858	)		(19,685	)		(11,582	)
Purchase of products from third parties		(239,393	)		(191,072	)		(70,878	)		(55,028	)
CORFO rights y other agreements		(81,366	)		(59,138	)		(41,194	)		(18,102	)
Export costs		(69,964	)		(62,763	)		(22,897	)		(23,069	)
Expenses related to variable lease payments (contracts under IFRS 16)		(777	)		(882	)		(397	)		(334	)
Insurance		(19,041	)		(14,525	)		(7,549	)		(5,757	)
Consultant and advisor services		(10,333	)		(9,018	)		(3,071	)		(3,069	)
Variation in gross inventory		14,162			105,623			15,087			14,488
Variation in inventory provision		4,742			3,521			1,219			2,566
Other		(21,207	)		(26,072	)		(10,929	)		(4,248	)
Total expenses by nature		(1,354,209	)		(1,111,349	)		(491,841	)		(435,443	)

166

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

23.9 Finance expenses

	For the period from January to September of the year						For the period from July to September of the year
	2021			2020			2021			2020
Finance expenses	ThUS$			ThUS$			ThUS$			ThUS$
Interest expense from bank borrowings and overdrafts		(1,905	)		(2,177	)		(663	)		(610	)
Interest expense from bonds		(63,326	)		(65,723	)		(21,629	)		(21,145	)
Interest expense from loans		(794	)		(1,328	)		(237	)		(308	)
Reverse capitalized interest expenses		10,123			6,327			3,722			2,004
Financial expenses for restoration and rehabilitation provisions		(541	)		(575	)		328			(160	)
Interest on lease agreement		(1,110	)		(884	)		(390	)		(266	)
Interest and bank charges		(988	)		(633	)		(380	)		(217	)
Other finance costs		(72	)		(75	)		(31	)		(9	)
Total		(58,613	)		(65,068	)		(19,280	)		(20,711	)

23.10 Finance income

	For the period from January to September of the year				For the period from July to September of the year
	2021		2020		2021		2020
Finance income	ThUS$		ThUS$		ThUS$		ThUS$
Interest from term deposits		2,150		9,177		706		1,859
Interest from marketable securities		44		2,118		20		181
Interest from maintenance of minimum bank balance in current account		2		16		-		2
Other finance income		65		222		38		7
Other finance interest		591		952		202		117
Total		2,852		12,485		966		2,166

167

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

Note 24 Reportable segments

24.1 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 24.2).

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.

168

Notes to the Consolidated Interim Financial Statements
September 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.

169

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

24.2 Reportable segment disclosures:

Operating segment items as of	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 September 30, 2021
September 30, 2021	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Revenue		640,450			328,146			483,430			94,437			207,999			23,561			1,778,023			1,778,023			-			1,778,023
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		640,450			328,146			483,430			94,437			207,999			23,561			1,778,023			1,778,023			-			1,778,023
Costs of sales		(480,683	)		(186,208	)		(307,813	)		(78,335	)		(155,955	)		(21,695	)		(1,230,689	)		(1,230,689	)		-			(1,230,689	)
Administrative expenses		-			-			-			-			-			-			-			-			(83,865	)		(83,865	)
Finance expense		-			-			-			-			-			-			-			-			(58,613	)		(58,613	)
Depreciation and amortization expense		(46,702	)		(30,144	)		(50,368	)		(10,886	)		(24,275	)		(158	)		(162,533	)		(162,533	)		-			(162,533	)
The entity’s interest in the profit or loss of associates and joint ventures accounted for by the equity method		-			-			-			-			-			-			-			-			7,330			7,330
Income (loss) before taxes		159,767			141,938			175,617			16,102			52,044			1,866			547,334			547,334			(172,259	)		375,075
Income tax expense		-			-			-			-			-			-			-			-			(105,888	)		(105,888	)
Net income (loss)		159,767			141,938			175,617			16,102			52,044			1,866			547,334			547,334			(278,147	)		269,187
Assets		-			-			-			-			-			-			-			-			6,813,338			6,813,338
Equity-accounted investees		-			-			-			-			-			-			-			-			44,211			44,211
Incorporation of non-current assets other than financial instruments, deferred tax assets, net defined benefit assets and rights arising from insurance contracts		-			-			-			-			-			-			-			-			129,048			129,048
Liabilities		-			-			-			-			-			-			-			-			3,489,003			3,489,003
Impairment loss recognized in profit or loss																				-						282			282
Impairment loss of non-financial assets		-			-			-			-			-			-			-			-			(6,349	)		(6,349	)
Cash flows from (used in) operating activities		-			-			-			-			-			-			-			-			418,849			418,849
Cash flows from (used in) investing activities		-			-			-			-			-			-			-			-			(660,704	)		(660,704	)
Cash flows from (used in) financing activities		-			-			-			-			-			-			-			-			1,612,523			1,612,523

170

Notes to the Consolidated Interim Financial Statements
September 30, 2021  

Operating segment items as of	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 September 30, 2020
September 30, 2020	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Revenue		522,636			262,728			246,469			107,514			142,956			21,082			1,303,385			1,303,385			-			1,303,385
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		522,636			262,728			246,469			107,514			142,956			21,082			1,303,385			1,303,385			-			1,303,385
Costs of sales		(399,929	)		(135,262	)		(191,390	)		(78,798	)		(128,647	)		(19,000	)		(953,026	)		(953,026	)		-			(953,026	)
Administrative expenses		-			-			-			-			-			-			-			-			(74,630	)		(74,630	)
Finance expense		-			-			-			-			-			-			-			-			(65,068	)		(65,068	)
Depreciation and amortization expense		(44,729	)		(33,381	)		(41,694	)		(11,555	)		(24,434	)		(2,103	)		(157,896	)		(157,896	)		-			(157,896	)
The entity’s interest in the profit or loss of associates and joint ventures accounted for by the equity method		-			-			-			-			-			-			-			-			7,920			7,920
Income tax expense, continuing operations		122,707			127,466			55,079			28,716			14,309			2,082			350,359			350,359			(197,956	)		152,403
Income tax expense		-			-			-			-			-			-			-			-			(52,375	)		(52,375	)
Net income (loss)		122,707			127,466			55,079			28,716			14,309			2,082			350,359			350,359			(250,331	)		100,028
Assets		-			-			-			-			-			-			-			-			4,805,616			4,805,616
Equity-accounted investees		-			-			-			-			-			-			-			-			79,340			79,340
Incorporation of non-current assets other than financial instruments, deferred tax assets, net defined benefit assets and rights arising from insurance contracts		-			-			-			-			-			-			-			-			204,073			204,073
Liabilities		-			-			-			-			-			-			-			-			2,713,622			2,713,622
Impairment loss recognized in profit or loss		-			-			-			-			-			-			-			-			1,244			1,244
Reversal of impairment losses recognized in profit or loss for the period		-			-			-			-			-			-			-			-			(1,616	)		(1,616	)
Cash flows from (used in) operating activities		-			-			-			-			-			-			-			-			180,497			180,497
Cash flows from (used in) investing activities		-			-			-			-			-			-			-			-			(148,550	)		(148,550	)
Cash flows from (used in) financing activities		-			-			-			-			-			-			-			-			14,044			14,044

171

Notes to the Consolidated Interim Financial Statements September 30, 2021  

24.3 Statement of comprehensive income classified by reportable segments based on groups of products

Items in the statement of comprehensive income as of	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
September 30, 2021	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Revenue		640,450			328,146			483,430			94,437			207,999			23,561			-			1,778,023
Costs of sales		(480,683	)		(186,208	)		(307,813	)		(78,335	)		(155,955	)		(21,695	)		-			(1,230,689	)
Gross profit		159,767			141,938			175,617			16,102			52,044			1,866			-			547,334
Other incomes by function		-			-			-			-			-			-			16,064			16,064
Administrative expenses		-			-			-			-			-			-			(83,865	)		(83,865	)
Other expenses by function		-			-			-			-			-			-			(39,655	)		(39,655	)
Impairment of gains and review of impairment losses (impairment losses) determined in accordance with IFRS 9		-			-			-			-			-			-			282			282
Other gains (losses)		-			-			-			-			-			-			(3,798	)		(3,798	)
Financial income		-			-			-			-			-			-			2,852			2,852
Financial costs		-			-			-			-			-			-			(58,613	)		(58,613	)
Interest in the profit or loss of associates and joint ventures accounted for by the equity method		-			-			-			-			-			-			7,330			7,330
Exchange differences		-			-			-			-			-			-			(12,856	)		(12,856	)
Profit (loss) before taxes		159,767			141,938			175,617			16,102			52,044			1,866			(172,259	)		375,075
Income tax expense		-			-			-			-			-			-			(105,888	)		(105,888	)
Profit (loss) net		159,767			141,938			175,617			16,102			52,044			1,866			(278,147	)		269,187

172

Notes to the Consolidated Interim Financial Statements September 30, 2021  

 

Items in the statement of comprehensive income as of	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
September 30, 2020	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Revenue		522,636			262,728			246,469			107,514			142,956			21,082			-			1,303,385
Cost of sales		(399,929	)		(135,262	)		(191,390	)		(78,798	)		(128,647	)		(19,000	)		-			(953,026	)
Gross profit		122,707			127,466			55,079			28,716			14,309			2,082			-			350,359
Other incomes by function		-			-			-			-			-			-			22,817			22,817
Administrative expenses		-			-			-			-			-			-			(74,630	)		(74,630	)
Other expenses by function		-			-			-			-			-			-			(83,693	)		(83,693	)
Impairment of gains and review of impairment losses (impairment losses) determined in accordance with IFRS 9		-			-			-			-			-			-			1,244			1,244
Other gains (losses)		-			-			-			-			-			-			(12,041	)		(12,041	)
Financial income		-			-			-			-			-			-			12,485			12,485
Financial costs		-			-			-			-			-			-			(65,068	)		(65,068	)
Interest in the profit or loss of associates and joint ventures accounted for by the equity method		-			-			-			-			-			-			7,920			7,920
Exchange differences		-			-			-			-			-			-			(6,990	)		(6,990	)
Profit (loss) before taxes		122,707			127,466			55,079			28,716			14,309			2,082			(197,956	)		152,403
Income tax expense		-			-			-			-			-			-			(52,375	)		(52,375	)
Profit (loss) from continuing operations		122,707			127,466			55,079			28,716			14,309			2,082			(250,331	)		100,028

173

Notes to the Consolidated Interim Financial Statements September 30, 2021  

24.4 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.

24.5 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.

174

Notes to the Consolidated Interim Financial Statements September 30, 2021  

24.6 Segments by geographical areas

	Chile		Latin America and the Caribbean		Europe		North America		Asia and others		Total
Items as of September 30, 2021	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Revenue		161,164		141,351		347,490		400,529		727,489		1,778,023
Investment accounted for under the equity method		-		-		14,782		15,976		13,453		44,211
Intangible assets other than goodwill		92,338		513		7,056		1,926		81,036		182,869
Goodwill		23,065		-		11,531		-		-		34,596
Property, plant and equipment, net		1,740,732		601		11,622		3,513		110,655		1,867,123
Right-of-use assets		30,699		-		2,137		3,529		17,524		53,889
Other non-current assets		24,170		16		7		3,033		19,734		46,960
Non-current assets		1,911,004		1,130		47,135		27,977		242,402		2,229,648

	Chile		Latin America and the Caribbean		Europe		North America		Asia and others		Total
Items as of September 30, 2020	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Revenue		111,232		102,811		301,258		319,259		468,825		1,303,385
Investment accounted for under the equity method		-		-		41,422		14,791		23,127		79,340
Intangible assets other than goodwill		99,387		1,587		969		1,297		78,581		181,821
Goodwill		22,979		-		11,617		-		-		34,596
Property, plant and equipment, net		1,595,504		628		3,624		3,385		47,552		1,650,693
Right-of-use assets		25,843		-		2,525		4,260		73		32,701
Other non-current assets		18,777		16		5		3		-		18,801
Non-current assets		1,762,490		2,231		60,162		23,736		149,333		1,997,952

175

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Note 25 Effect of fluctuations in foreign currency exchange rates

(a) Foreign currency exchange differences recognized in profit or loss and other comprehensive income:

Foreign currency exchange differences recognized in profit or loss and other comprehensive	As of September 30, 2021			As of September 30, 2020
income	ThUS$			ThUS$
Conversion foreign exchange gains (losses) recognized in the result of the year		(12,856	)		(6,990	)
Conversion foreign exchange reserves
Conversion foreign exchange reserves attributable to the owners of the controlling entity		3,881			13,833
Conversion foreign exchange reserves attributable to the non-controlling entity		459			185
Total		4,340			14,018

(b) Reserves for foreign currency exchange differences:

As of September 30, 2021, and 2020, are detailed as follows:

	As of September 30, 2021			As of September 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.		117			82
Isapre Norte Grande Ltda.		(98	)		(73	)
Almacenes y Depósitos Ltda.		258			153
Sacal S.A.		(3	)		(3	)
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.		(31	)		(25	)
Agrorama S.A.		518			382
SQM Vitas Fzco		(4,049	)		(4,142	)
Ajay Europe		(1,231	)		(1,044	)
SQM Oceanía Pty Ltd.		(579	)		(579	)
SQM Indonesia S.A.		(124	)		(124	)
Abu Dhabi Fertillizers Industries WWL.		372			372
SQM Vitas Holland		99			(81	)
SQM Thailand Limited		(68	)		(68	)
SQM Europe		(1,983	)		(1,983	)
SQM Australia Pty Ltd.		(1,722	)		(4,006	)
Pavoni & C. Spa		(69	)		(22	)
Kore Potash PLC (a)		-			(1,656	)
SQM Colombia SAS		(80	)		(80	)
Total		(7,688	)		(11,912	)

(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.

176

Notes to the Consolidated Interim Financial Statements September 30, 2021  

Note 26 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 September 30, 2021		As of December 31, 2020
Class of Asset	Currency	ThUS$		ThUS$
Cash and cash equivalents	USD		1,777,446		454,402
Cash and cash equivalents	CLP		13,284		7,190
Cash and cash equivalents	CNY		12,940		11,597
Cash and cash equivalents	EUR		2,531		17,144
Cash and cash equivalents	GBP		3		19
Cash and cash equivalents	AUD		52,888		1,411
Cash and cash equivalents	INR		-		6
Cash and cash equivalents	MXN		1,608		1,378
Cash and cash equivalents	PEN		5		3
Cash and cash equivalents	AED		1		-
Cash and cash equivalents	JPY		1,461		1,646
Cash and cash equivalents	ZAR		2,864		14,286
Cash and cash equivalents	KRW		8		16
Cash and cash equivalents	IDR		3		3
Cash and cash equivalents	PLN		1		1
Subtotal cash and cash equivalents			1,865,043		509,102
Other current financial assets	USD		641,714		145,893
Other current financial assets	CLP		112,560		202,176
Subtotal other current financial assets			754,274		348,069
Other current non-financial assets	USD		9,644		20,645
Other current non-financial assets	AUD		2,200		224
Other current non-financial assets	CLF		27		53
Other current non-financial assets	CLP		19,517		27,837
Other current non-financial assets	CNY		34		1,661
Other current non-financial assets	EUR		452		1,531
Other current non-financial assets	COP		96		70
Other current non-financial assets	MXN		6,457		4,488
Other current non-financial assets	THB		9		70
Other current non-financial assets	JPY		193		157
Other current non-financial assets	ZAR		812		646
Other current non-financial assets	SEK		210		17
Subtotal other non-financial current assets			39,651		57,399
Trade and other receivables	USD		303,890		230,214
Trade and other receivables	PEN		1		1
Trade and other receivables	BRL		22		23
Trade and other receivables	CLF		481		545
Trade and other receivables	CLP		76,892		47,133
Trade and other receivables	CNY		38,337		22,882
Trade and other receivables	EUR		34,042		22,868
Trade and other receivables	GBP		461		682
Trade and other receivables	MXN		822		355
Trade and other receivables	AED		2,037		533
Trade and other receivables	THB		-		1,167
Trade and other receivables	JPY		24,837		23,010
Trade and other receivables	AUD		772		589
Trade and other receivables	ZAR		15,557		12,504
Trade and other receivables	COP		3,357		2,675
Trade and other receivables	SEK		-		25
Subtotal trade and other receivables			501,508		365,206
Receivables from related parties	USD		59,996		61,379
Receivables from related parties	EUR		2,200		1,222
Subtotal receivables from related parties			62,196		62,601

177

Notes to the Consolidated Interim Financial Statements September 30, 2021  

		As of September 30, 2021		As of December 31, 2020
Class of assets	Currency	ThUS$		ThUS$
Current inventories	USD		1,111,932		1,093,028
Subtotal Current Inventories			1,111,932		1,093,028
Current tax assets	USD		134,645		128,529
Current tax assets	BRL		1		-
Current tax assets	CLP		1,470		3,015
Current tax assets	CNY		8		-
Current tax assets	EUR		4,506		218
Current tax assets	MXN		4		-
Current tax assets	PEN		1		4
Current tax assets	ZAR		25		26
Current tax assets	COP		728		417
Current tax assets	THB		-		15
Subtotal current tax assets			141,388		132,224
Non-current assets or groups of assets classified as held for sale	USD		582		1,629
Subtotal Non-current assets or groups of assets classified as held for sale			582		1,629
Total current assets			4,476,574		2,569,258
Other non-current financial assets	USD		10,345		51,828
Other non-current financial assets	CLP		20		20
Other non-current financial assets	JPY		71		77
Subtotal Other non-current financial assets			10,436		51,925
Other non-current non-financial assets	USD		46,267		21,236
Other non-current non-financial assets	BRL		16		17
Other non-current non-financial assets	KRW		12		-
Other non-current non-financial assets	EUR		7		7
Other non-current non-financial assets	CLP		658		782
Subtotal Other non-current non-financial assets			46,960		22,042
Other receivables, non-current	USD		5,239		10,061
Other receivables, non-current	CLF		133		152
Other receivables, non-current	MXN		140		102
Other receivables, non-current	CLP		804		850
Subtotal Other receivables, non-current			6,316		11,165
Investments classified using the equity method of accounting	USD		20,614		23,417
Investments classified using the equity method of accounting	TRY		-		792
Investments classified using the equity method of accounting	AED		12,753		47,774
Investments classified using the equity method of accounting	EUR		10,844		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			44,211		85,993
Intangible assets other than goodwill	USD		175,506		176,282
Intangible assets other than goodwill	MXN		-		1,025
Intangible assets other than goodwill	CLP		139		182
Intangible assets other than goodwill	EUR		7,030		696
Intangible assets other than goodwill	CNY		165		222
Intangible assets other than goodwill	KRW		29		-
Subtotal intangible assets other than goodwill			182,869		178,407
Purchases goodwill, gross	USD		34,438		34,438
Purchases goodwill, gross	EUR		158		7,528
Subtotal Purchases goodwill, gross			34,596		41,966
Property, plant and equipment	USD		1,849,920		1,719,358
Property, plant and equipment	CLP		3,220		3,237
Property, plant and equipment	EUR		10,183		10,954
Property, plant and equipment	AED		824		923
Property, plant and equipment	BRL		111		111
Property, plant and equipment	MXN		2,642		2,494
Property, plant and equipment	COP		108		120
Property, plant and equipment	KRW		115		122
Subtotal property, plant and equipment			1,867,123		1,737,319
Right-of-use assets	USD		32,257		25,238
Right-of-use assets	EUR		2,137		2,428
Right-of-use assets	AED		17,524		60
Right-of-use assets	MXN		1,971		2,298
Subtotal Right-of-use assets			53,889		30,024
Non-current tax assets	USD		90,364		90,364
Subtotal non-current tax assets			90,364		90,364
Total non-current assets			2,336,764		2,249,205
Total assets			6,813,338		4,818,463

178

Notes to the Consolidated Interim Financial Statements September 30, 2021  

		As of September 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		23,586		4,590		28,176		43,218		4,676		47,894
Other current financial liabilities	CLF		1,236		15,609		16,845		20,732		329		21,061
Subtotal other current financial liabilities			24,822		20,199		45,021		63,950		5,005		68,955
Lease liabilities, current	USD		-		4,478		4,478		-		4,750		4,750
Lease liabilities, current	CLF		-		2,246		2,246		-		-		-
Lease liabilities, current	MXN		-		429		429		-		416		416
Lease liabilities, current	EUR		-		380		380		-		362		362
Subtotal Lease liabilities, current			-		7,533		7,533		-		5,528		5,528
Trade and other payables	USD		93,455		-		93,455		83,425		-		83,425
Trade and other payables	CLF		463		-		463		123		-		123
Trade and other payables	BRL		4		-		4		9		-		9
Trade and other payables	THB		3		-		3		30		-		30
Trade and other payables	CLP		98,372		-		98,372		73,857		-		73,857
Trade and other payables	CNY		2,575		-		2,575		1,323		-		1,323
Trade and other payables	EUR		34,295		-		34,295		40,280		-		40,280
Trade and other payables	GBP		36		-		36		18		-		18
Trade and other payables	INR		1		-		1		1		-		1
Trade and other payables	MXN		923		-		923		584		-		584
Trade and other payables	PEN		1		-		1		5		-		5
Trade and other payables	AUD		28,473		-		28,473		2,935		-		2,935
Trade and other payables	ZAR		1,353		-		1,353		1,168		-		1,168
Trade and other payables	JPY		-		-		-		-		-		-
Trade and other payables	COP		188		-		188		175		-		175
Subtotal trade and other payables			260,142		-		260,142		203,933		-		203,933
Trade payables due to related parties, current	USD		-		-		-		-		282		282
Trade payables due to related parties, current	AUD		342		-		342		324		-		324
Subtotal Trade payables due to related parties, current			342		-		342		324		282		606
Other current provisions	USD		32,536		131,575		164,111		103,252		698		103,950
Other current provisions	CLP		-		133		133		216		-		216
Subtotal other current provisions			32,536		131,708		164,244		103,468		698		104,166

179

Notes to the Consolidated Interim Financial Statements September 30, 2021  

		As of September 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		-		39,556		39,556		-		20,981		20,981
Current tax liabilities	CLP		-		-		-		-		61		61
Current tax liabilities	EUR		-		1,913		1,913		-		642		642
Current tax liabilities	MXN		-		1,281		1,281		-		959		959
Subtotal current tax liabilities			-		42,750		42,750		-		22,643		22,643
Provisions for employee benefits, current	USD		13,336		6,151		19,487		2,981		6,011		8,992
Provisions for employee benefits, current	AUD		171		-		171		58		-		58
Provisions for employee benefits, current	CLP		-		-		-		3		-		3
Provisions for employee benefits, current	MXN		39		12		51		43		-		43
Subtotal Provisions for employee benefits, current			13,546		6,163		19,709		3,085		6,011		9,096
Other current non-financial liabilities	USD		62,317		8,365		70,682		51,995		397		52,392
Other current non-financial liabilities	BRL		29		-		29		2		-		2
Other current non-financial liabilities	CLP		5,602		1,140		6,742		6,264		792		7,056
Other current non-financial liabilities	CNY		2,941		307		3,248		60		-		60
Other current non-financial liabilities	EUR		1,415		118		1,533		913		119		1,032
Other current non-financial liabilities	MXN		492		-		492		121		53		174
Other current non-financial liabilities	JPY		28		23		51		52		-		52
Other current non-financial liabilities	PEN		70		-		70		70		-		70
Other current non-financial liabilities	COP		19		71		90		-		-		-
Other current non-financial liabilities	ARS		22		-		22		-		117		117
Subtotal other current non-financial liabilities			72,935		10,024		82,959		59,477		1,478		60,955
Total current liabilities			404,323		218,377		622,700		434,237		41,645		475,882

180

Notes to the Consolidated Interim Financial Statements September 30, 2021  

		As of September 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		369,232		70,141		248,988		-		1,524,185		2,212,546
Other non-current financial liabilities	CLF		-		-		-		-		376,519		376,519
Subtotal Other non-current financial liabilities			369,232		70,141		248,988		-		1,900,704		2,589,065
Non-current lease liabilities	USD		-		10,713		-		19,401		-		30,114
Non-current lease liabilities	UF		-		-		-		13,903		-		13,903
Non-current lease liabilities	MXN		-		-		-		1,640		-		1,640
Non-current lease liabilities	JPY		-		-		-		1,903		-		1,903
Subtotal non-current lease liabilities			-		10,713		-		36,847		-		47,560
Non-current Trade and other payables	USD		-		11,644		-		-		-		11,644
Subtotal Non-current Trade and other payables			-		11,644		-		-		-		11,644
Other non-current provisions	USD		-		27,442		-		-		30,786		58,228
Subtotal Other non-current provisions			-		27,442		-		-		30,786		58,228
Deferred tax liabilities	USD		-		919		-		-		132,101		133,020
Subtotal Deferred tax liabilities			-		919		-		-		132,101		133,020
Provisions for employee benefits, non-current	USD		26,365		-		-		-		-		26,365
Provisions for employee benefits, non-current	CLP		421		-		-		-		-		421
Subtotal Provisions for employee benefits, non-current			26,786		-		-		-		-		26,786
Total non-current liabilities			396,018		120,859		248,988		36,847		2,063,591		2,866,303
Total liabilities													3,489,003

181

Notes to the Consolidated Interim Financial Statements
September  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 September of the year
	2021			2020
Foreign currency exchange rate changes	ThUS$			ThUS$
Loss in foreign currency		(12,856	)		(6,990	)
Foreign currency translation reserve (*)		4,340			14,018
Total		(8,516	)		7,028

The average and closing exchange rate for foreign currency is disclosed in Note 3.3

182

Notes to the Consolidated Interim Financial Statements
September  30, 2021  

Note 27 Income tax and deferred taxes

Tax receivables as of September 30, 2021 and December 31, 2020, are as follows:

27.1            Current and non-current tax assets

(a)            Current

	As of September 30, 2021		As of December 31, 2020
Current tax assets	ThUS$		ThUS$
Monthly provisional income tax payments, Chilean companies		11,070		37,123
Monthly provisional income tax payments, foreign companies		53		1,265
Corporate tax credits (1)		785		1,566
1st category tax absorbed by tax loss (2)		-		2,322
Taxes in recovery process		129,480		89,948
Total		141,388		132,224

(b)             Non-current

	As of September 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.

183

Notes to the Consolidated Interim Financial Statements
September  30, 2021  

27.2            Current tax liabilities

	As of September 30, 2021		As of December 31, 2020
Current tax liabilities	ThUS$		ThUS$
1st Category income tax		27,103		14,736
Foreign company income tax		15,647		7,838
Article 21 single tax		-		69
Total		42,750		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% 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%

184

Notes to the Consolidated Interim Financial Statements
September  30, 2021  

27.3             Income tax and deferred taxes

(a) Deferred tax assets and liabilities as of September 30, 2021

	Net liability position
	Assets		Liabilities
Description of deferred tax assets and liabilities as of September 30, 2021	ThUS$		ThUS$
Unrealized loss		100,209		-
Property, plant and equipment and capitalized interest		-		(185,837	)
Restoration and rehabilitation provision		6,398		-
Manufacturing expenses		-		(124,185	)
Staff severance indemnities, unemployment insurance		-		(7,294	)
Vacation accrual		6,111		-
Inventory provision		21,047		-
Materials provision		10,737		-
Employee benefits		596		-
Research and development expenses		-		(4,441	)
Bad debt provision		2,852		-
Provision for legal complaints and expenses		334		-
Loan acquisition expenses		-		(8,870	)
Financial instruments recorded at market value		4,861		-
Specific tax on mining activity		-		(3,523	)
Tax loss benefit		37,036		-
Other		10,730		-
Foreign items (other)		219		-
Balances to date		201,130		(334,150	)
Net balance				(133,020	)

185

Notes to the Consolidated Interim Financial Statements
September  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	)

186

Notes to the Consolidated Interim Financial Statements
September  30, 2021  

(c) Reconciliation of changes in deferred tax liabilities (assets) as of September 30, 2021

Reconciliation of changes in deferred	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
tax liabilities (assets)	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Unrealized loss		(90,585	)		(9,624	)		-			(9,624	)		(100,209	)
Property, plant and equipment and capitalized interest		187,168			(1,331	)		-			(1,331	)		185,837
Restoration and rehabilitation provision		(6,597	)		199			-			199			(6,398	)
Manufacturing expenses		107,215			16,970			-			16,970			124,185
Staff severance indemnities, unemployment insurance		6,669			30			595			625			7,294
Vacation accrual		(6,138	)		27			-			27			(6,111	)
Inventory provision		(22,200	)		1,153			-			1,153			(21,047	)
Materials provision		(8,812	)		(1,925	)		-			(1,925	)		(10,737	)
Forward		-			14,928			(14,928	)		-			-
Employee benefits		-			(596	)		-			(596	)		(596	)
Research and development expenses		3,581			860			-			860			4,441
Bad debt provision		(5,072	)		2,220			-			2,220			(2,852	)
Provision for legal complaints and expenses		(19,637	)		19,303			-			19,303			(334	)
Loan approval expenses		5,212			3,658			-			3,658			8,870
Financial instruments recorded at market value		3,929			(5,353	)		(3,437	)		(8,790	)		(4,861	)
Specific tax on mining activity		3,012			496			15			511			3,523
Tax loss benefit		(844	)		(36,192	)		-			(36,192	)		(37,036	)
Others		(1,454	)		(9,276	)		-			(9,276	)		(10,730	)
Foreign items (other)		654			(873	)		-			(873	)		(219	)
Total temporary differences, unused losses and unused tax credits		156,101			(5,326	)		(17,755	)		(23,081	)		133,020

187

Notes to the Consolidated Interim Financial Statements
September  30, 2021  

(d)            Reconciliation of changes in deferred tax liabilities (assets) as of December 31, 2020

Reconciliation of changes in deferred	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
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 September 30, 2021, and December 31, 2020, tax loss carryforwards are detailed as follows:

	As of September 30, 2021		As of December 31, 2020
Deferred taxes related to benefits for tax losses	ThUS$		ThUS$
Chile		36,741		818
Foreign		295		26
Total		37,036		844

The tax losses as of September 30, 2021 correspond mainly to SQM S.A., SQM Potasio S.A., SIT S.A., Orcoma SpA., Orcoma Estudio SpA. and SCM Búfalo.

The tax losses from foreign companies correspond mainly to SQM Europe N.V and SQM Internacional NV Ltd.

188

Notes to the Consolidated Interim Financial Statements
September  30, 2021  

(f)            Movements in deferred tax assets and liabilities

Movements in deferred tax assets and liabilities as of September 30, 2021 and December 31, 2020 are detailed as follows:

	Assets (liabilities)
	As of September 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		5,326			29,096
Increase (decrease) deferred taxes in equity		17,755			(1,786	)
Total		(133,020	)		(156,101	)

(g)            Disclosures on income tax (expenses) benefit

Current and deferred tax (expenses) benefit are detailed as follows:

	(Expense) Income
	As of September 30, 2021			As of September 30, 2020
Disclosures on income tax (expense) benefit	ThUS$			ThUS$
Current income tax (expense) income
Current tax (expense)		(113,540	)		(75,662	)
Adjustments to prior year current income tax (expense) benefit		2,326			(1,901	)
Current income tax (expense), net, total		(111,214	)		(77,563	)
Deferred tax (expense)
Deferred tax (expense) relating to the creation and reversal of temporary differences		6,077			22,311
Tax adjustments related to the creation and reversal of temporary differences from the previous year		(751	)		2,877
Deferred tax expense, net, total		5,326			25,188
Income tax expense		(105,888	)		(52,375	)

Tax (expenses) benefit for foreign and domestic parties are detailed as follows:

	(Expense) Income
	As of September 30, 2021			As of September 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		(24,045	)		(2,855	)
Current income tax benefit (expense), domestic, net		(87,169	)		(74,708	)
Current income tax expense, net, total		(111,214	)		(77,563	)
Deferred tax benefit (expense) by foreign and domestic parties, net
Current income tax benefit (expense), foreign parties, net		(9,224	)		6,431
Current income tax benefit (expense), domestic, net		14,550			18,757
Deferred tax expense, net, total		5,326			25,188
Income tax expense		(105,888	)		(52,375	)

189

Notes to the Consolidated Interim Financial Statements
September  30, 2021  

(h)            Disclosures on the tax effects of other comprehensive income components:

	As of September 30, 2021
Income tax related to other income and expense components	Amount before taxes (expense) gain			(Expense) income for income taxes			Amount after taxes
with a charge or credit to net equity	ThUS$			ThUS$			ThUS$
Gain (loss) from defined benefit plans		3,772			(610	)		3,162
Cash flow hedge		(55,289	)		14,928			(40,361	)
Reserve for gains (losses) from financial assets measured at fair value through other comprehensive income		(10,663	)		3,437			(7,226	)
Total		(62,180	)		17,755			(44,425	)

	As of September 30, 2020
Income tax related to other income and expense components	Amount before taxes (expense) gain			(Expense) income for income taxes			Amount after taxes
with a charge or credit to net equity	ThUS$			ThUS$			ThUS$
Gain (loss) from defined benefit plans		(1,834	)		512			(1,322	)
Cash flow hedge		(12,843	)		3,468			(9,375	)
Reserve for gains (losses) from financial assets measured at fair value through other comprehensive income		4,578			(1,236	)		3,342
Total		(10,099	)		2,744			(7,355	)

(i)            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.

190

Notes to the Consolidated Interim Financial Statements
September  30, 2021  

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 September 30, 2021			As of September 30, 2020
Income Tax Expense (Benefit)	ThUS$			ThUS$
Consolidated income before taxes		375,075			152,403
Income tax rate in force in Chile		27	%		27	%
Tax expense using the statutory tax rate		(101,270	)		(41,149	)
Net effect of royalty tax payments		(4,323	)		(3,879	)
Effect of fines affected by article 21 and passive income		(11	)		(1,427	)
Tax effect of revenue from regular activities exempt from taxation		3,487			2,130
Tax rate effect of non-tax-deductible expenses for determining taxable profit (loss)		(2,198	)		(2,615	)
Tax effect of tax rates supported abroad		(4,368	)		(4,496	)
Other tax effects from reconciliation between accounting gains and tax expenses		2,795			(939	)
Tax expense using the effective tax rate		(105,888	)		(52,375	)

191

Notes to the Consolidated Interim Financial Statements
September  30, 2021  

(j) 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.

192

Notes to the Consolidated Interim Financial Statements
September  30, 2021  

Note 28 Events occurred after the reporting date

28.1 Authorization of the financial statements

The consolidated financial statements of the Company and its subsidiaries, prepared in accordance with IFRS for the period ended September 30, 2021, were approved and authorized for issuance by the Company´s Board of Directors on November 17, 2021.

28.2 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 November 17, 2021, the Company reported to CMF that it agreed to call an extraordinary shareholders’ meeting to address the approval and distribution of a special dividend (dividendo eventual) for a total equivalent to US$ 400 million, considering the financial situation of the Company and the financial expectations for the rest of the year, in consideration of the situation of the markets where the company is present.

In addition, subject to the approval of the distribution of the special dividend, the Board of Directors agreed to modify the 2021 dividend policy as follows:

The Board of Sociedad Química y Minera de Chile S.A. has proposed to submit to the consideration of the shareholders at the extraordinary shareholder´s meeting summoned for December 22, 2021 the distribution and payment of a special dividend equivalent to US$ 1,40037 per share to be charged to the SQM´s retained earnings (the “Special Dividend”).

Furthermore, and subject to the approval of the distribution and payment of the special dividend in the Extraordinary Shareholders Meeting, the Board of Directors agreed to modify the 2021 dividend policy which was previously agreed on at a Board meeting held on March 29, 2021 and that was informed to the shareholders at the Annual General Shareholder´s meeting held on April 23, 2021 as follows:

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

(i) 100% of the 2021 net income, when the following financial parameters are met: (a) that the total current assets, dividend by the total current financial liabilities is equal to or greater than 2.5 times, and (b) the sum of the total current liabilities and total non-current liabilities, excluding both cash and cash equivalents and other current financial assets, divided by the total equity is equal to or less than 0.85 times.

(ii) 80% of the 2021 net income, when the following financial parameters are met: (a) that the total current assets, dividend by the total sum of the total current financial liabilities is equal to or greater than 2.0 times, and (b) the total sum of the current liabilities and total non.current liabilities, excluding both cash and cash equivalents and other current financial assets divided by the total equity is equal to or less than 0.95 times.

(iii) 60% of the 2021 net income, when the following financial parameters are met: (a) that the total current assets, dividend by the total sum of the total current financial liabilities is equal to or grater than 1.5 times, and (b) the total sum of the current liabilities and total non-current liabilities, excluding both cash and cash equivalents and other current financial assets divided by the total equity is equal to or less than 1.05 times.

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

193

Notes to the Consolidated Interim Financial Statements
September  30, 2021  

b) Distribute and pay only two interim dividends during 2021, which will be charged against, the aforementioned final dividend and that will be charge to the retained earnings reflected in the consolidated financial statements as of March 31, 2021 and as of June 30, 2021, respectively, the percentage distributed shall be determined per the financial parameters in letter a) above.

It is recorded that on May 19, 2021 and on August 18, 2021, the Company´s Board of Directors agreed to distribute and pay an interim dividend to US$ 0.23797 per share and US$ 0.31439 per share, respectively, both charged to the Company´s 2021 retained earnings. Said amount was paid in its equivalent in Chilean pesos according to the official exchange rate on May 28, 2021 and on September 1, 2021, respectively (the “Interim Dividends”).

c) The Board of Directors will not approve the payment of other interim dividends charged against the 2021 net income.

d) At the ordinary general shareholder´s meeting that will be held in 2022, the Board of Directors shall propose a final dividend pursuant to the percentages in financial parameters described in letter a) above, discounting the Special Dividend and Interim Dividend. If the amount equivalent to the percentage of earnings for 2021 to distribute as expressed in letter (a) above were equal to or less than the amount of the sum of Special Dividend and Interim Dividend, then no additional amount will be distributed and the amount of the Interim Dividends will be understood to be paid as a definitive dividend. In any case, the final dividend may not be less than the mandatory minimum dividend in accordance with Chilean law or the Company´s bylaws.

e) If there is an excess of net income in 2021, this may be retained and assigned or allocated for financing the Company´s own operations, or to one or more investments projects of the Company, notwithstanding a future distribution of special dividends charged to the retained earnings approved at the shareholder´s meeting, or the possible and future capitalization of all or part of the letter.

f) The payment of additional dividends is not considered.

It is expressly stated that the dividend policy described above corresponds to the intention of the Board of Directors, and the compliance of it shall depend on the net income that the Company ultimately obtains, as well as the results of projections that could periodically impact the Company, or the existence of determined conditions that may affect it, as applicable. If the dividend policy exposed by the Board of Directors suffers a substantial change, the Company must communicate it as an essential fact.

Management is not aware of any other significant events that occurred between September 30, 2021 and the date of issuance of these consolidated financial statements that may significantly affect them.

194

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: November 30, 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.

195