UNITED STATES OF AMERICA

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16

OF THE SECURITIES AND EXCHANGE ACT OF 1934

Includes financial statements and their related notes for the nine-month period ended September 30, 2011 filed by Sociedad Química y Minera de Chile S.A. before the Superintendencia de Valores y Seguros de Chile on November 22, 2011.

SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.

(Exact name of registrant as specified in its charter)

CHEMICAL AND MINING COMPANY OF CHILE INC.

(Translation of registrant's name into English)

El Trovador 4285, Santiago, Chile (562) 425-2000

(Address and phone number of principal executive offices)

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 whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

   Yes ¨                                                                               No x

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82_________

On November 22, 2011, the Registrant filed with the Superintendencia de Valores y Seguros of Chile (the "SVS") a report that included information as to the Registrant's consolidated financial condition and results of operations for the nine-month period ended September 30, 2011. Attached is a summary of such consolidated financial information included in the summary and in the report filed with the Superintendencia de Valores y Seguros of Chile. This financial information was prepared on the basis of International Financial Reporting Standards (“IFRS”).

THIS REPORT IS AN ENGLISH TRANSLATION OF, AND AN INTERNATIONAL FINANCIAL REPORTING STANDARDS PRESENTATION OF, THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2011 REPORT FILED WITH THE SUPERINTENDENCIA DE VALORES Y SEGUROS (SVS) IN CHILE, AND UNLESS OTHERWISE INDICATED, FIGURES ARE IN US DOLLARS.

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the period ended

As of September 30, 2011

SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. and SUBSIDIARIES

Thousands of U.S. dollars

This document is composed of:

- Consolidated Classified Statement of Financial Position

- Interim Consolidated Statement of Comprehensive Income by function.

- Interim Consolidated Statement of Comprehensive Income

- Interim Consolidated Statement of Cash Flows

- Interim Statements of Changes in Net Shareholders’ Equity

- Explanatory Notes to the Interim Consolidated Financial Statements

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

Index of Interim Consolidated Financial Statements

Note			Page
	Interim Consolidated Classified Statements of Financial Position		8
	Interim Consolidated Statement of Comprehensive Income by function		10
	Interim Consolidated Statement of Comprehensive Income		11
	Interim Consolidated Statements of Cash Flows		12
	Interim Statements of Changes in Equity		14
	Notes  to the Interim Consolidated Financial Statements
1	Company’s Identification and Activity		16
2	Bases of presentation of the Interim Consolidated  Financial Statements  and accounting criteria applied
	2.1	Periods covered	17
	2.2	Basis of preparation	17
	2.3	Transactions in foreign currency	20
	2.4	Basis of consolidation	22
	2.5	Significant accounting judgments, estimates & assumptions	25
	2.6	Financial information by operating segment	25
	2.7	Property, plant and equipment	26
	2.8	Investment properties	28
	2.9	Inventory	28
	2.10	Trade and other accounts receivables	29
	2.11	Revenue recognition	30
	2.12	Investments recognized using the equity method	31
	2.13	Income tax	32
	2.14	Earnings per share	32
	2.15	Non- financial asset value(impairment)	34
	2.16	Financial assets	35
	2.17	Financial liabilities	36
	2.18	The environment	36
	2.19	Minimum dividend	37
	2.20	Consolidated statement of cash flows	37
	2.21	Obligations related to employee termination benefits and pension commitments	37
	2.22	Financial derivatives and hedge transactions	38
	2.23	Leases	40
	2.24	Prospecting expenses	40
	2.25	Other provisions accrued expenses accrued	40
	2.26	Compensation plans	41
	2.27	Good and service insurance expenses	42
	2.28	Intangibles assets	42
	2.29	Research and development expenses	43
	2.30	Classification of balances ascurrent and non-current	43

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Index of Interim Consolidated Financial Statements

Note			Page
3	Financial risk management, Objectives and Policies
	3.1	Risk management policy	44
	3.2	Risk factors	45
	3.3	Risk measurement	47
4	Changes in accounting estimates and policies (uniformity).		47
5	Cash and cash equivalents
	5.1	Types of cash and cash equivalent	48
	5.2	Other cash and cash equivalents	48
	5.3	Information on cash and cash equivalents by currency	49
	5.4	Amount of significant restricted (unavailable) cash balances	49
	5.5	Detail of time deposits	50
6	Inventory.		52
7	Related Party Disclosures
	7.1	Disclosures on related parties	52
	7.2	Relationships between the parent company and the entity	52
	7.3	Intermediate parent company and companies controlled by SQM S.A. that publicly issue financial statements	53
	7.4	Detailed identification of the link between the parent company and the subsidiary	54
	7.5	Detail of related parties and transactions with related parties	55
	7.6	Trade and other accounts receivable from related parties, current	57
	7.7	Trade and otheraccounts  payable from related parties, current	58
	7.8	Board of Directors and senior management	59
8	Financial instruments
	8.1	Types of other financial assets	62
	8.2	Trade and other accounts receivable	63
	8.3	Assests and liabilities coverage	66
	8.4	Financial liabilities	68
	8.5	Trade and other accounts payables	77
	8.6	Financial liabilities at fair value through profit or loss	78
	8.7	Financial asset and liability categories	79
	8.8	Financial assets pledged as guarantee	79
	8.9	Estimated fair value of financial instruments and derivative financial instruments	80

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Index of Interim Consolidated Financial Statements

Note			Page
9	Investments and disclosures on investments in subsidiaries		82
10	Investments in associates accounted for using the Equity method
	10.1	Investments in associates accounted for using the Equity method	89
	10.2	Assets, liabilities, revenues and expenses of associates	90
	10.3	Detail of investments in associates	91
11	Joint ventures
	11.1	Policy for the accounting for joint ventures in a Parent Company’s separate financial statements	91
	11.2	Disclosures on interest in joint ventures	91
	11.3	Detail of assets liabilities and profit or loss of significant investments in joint ventures by company	93
	11.4	Detail of the amount of gain (loss) net of investments in significant joint ventures by company	94
12	Intangible assets and goodwill
	12.1	Balances	95
	12.2	Disclosures on intangible assets and goodwill	95
13	Property, plant and equipment
	13.1	Types of property, plant and equipment	98
	13.2	Reconciliation of changes in property. plant and equipment by class	100
	13.3	Detail of property. plant and equipment pledged as guarantees	101
	13.4	Additional information	101
14	Leases
	14.1	Disclosures on finance leases, lessee	102
15	Employee Benefits
	15.1	Acrcruals for employee benefits	103
	15.2	Policies on defined benefit plan	103
	15.3	Other long-term benefits	104
	15.4	Employee post-retirement liabilities	105
	15.5	Employee termination benefits	106
16	Executive compensation plan		107
17	Equity Disclosures
	17.1	Capital Management	108
	17.2	Disclosures on preferred share capital capital	108
	17.3	Dividend policy	110
	17.4	Interim dividends	110

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

Index of Interim Consolidated Financial Statements

Note			Page
18	Provisions and other non-financial liabilities
	18.1	Types of provisions	111
	18.2	Description of other provisions	112
	18.3	Other non-financial liabilities, current	112
	18.4	Movements in provisions ppprovisions	113
	18.5	Detail of main types of provisions and other non-financial liabilities	114
19	Contingencies and restrictions
	19.1	Lawsuits or other relevant events	114
	19.2	Restrictions	118
	19.3	Commitments.	118
	19.4	Restricted or pledged cash	118
	19.5	Collateral received from third parties	119
	19.6	Indirect guarantees	120
20	Revenue		121
21	Earnings per share		121
22	Loan costs		122
23	Effect of variations in foreign currency exchange rates		122
24	The Environment
	24.1	Disclosures on disbursements related to the environment	123
	24.2	Detail of information on disbursements related to the environment	125
	24.3	Description of each project indicating whether these are in process or havebenn finished been finished	137
25	Other current and non-current non-financial assets		142
26	Operating segments
	26.1	Operating segments	143
	26.2	Statements of income classified by operating segment based on groups of products	144

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Index of Interim Consolidated Financial Statements

Note			Page
	26.3	Disbursements of non-monetary assets	146
	26.4	Information on products and services for external customers	147
	26.5	Information on geographical areas	147
	26.6	Revenue from external customers, classified by geographical area	148
	26.7	Non-current assets classified by geographical area	149
	26.8	Information on the main customers	150
	26.9	Property, plant and equipment classified by geographical areas	150
27	Other income, other expenses by function and other gains or losses		152
28	Income Taxes
	28.1	Current tax accounts receivable	153
	28.2	Current tax accounts payables	154
	28.3	Tax earnings	154
	28.4	Income and deferred taxes	155
	28.5	Amendments to the Income Tax Law and Specific Tax on Mining (Royalty) in Chile	164
29	Disclosures on accounts in foreign currency		165
30	Events after the reporting period  period		170

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

CONSOLIDATED CLASSIFIED STATEMENTS OF FINANCIAL POSITION

ASSETS	Note N°	09.30.2011 ThUS$		12.31.2010 ThUS$
Current assets
Cash and cash equivalents	5.1		447,406		524,652
Other current financial assets	8.1		207,103		76,178
Other non-financial  current assets	25		42,873		44,442
Trade and other accounts receivable, current	8.2		456,425		375,945
Trade and other accounts receivable due from related parties, current	7.6		102,824		36,172
Inventory	6.0		707,515		605,101
Current tax assets	28.1		16,480		32,773
Total current assets			1,980,626		1,695,263
Non-current assets
Other non-current financial assets	8.1		31,367		92,674
Other non-financial  assets, non-current	25		23,903		24,157
Non-current rights receivable	8.2		913		1,102
Trade and other accounts receivable due from related parties, non-current			-		-
Investments accounted for using the equity method	10.1		68,835		62,271
Intangible assets other than goodwill	12.1		3,947		3,270
Goodwill	12.1		38,388		38,388
Property, plant and equipment	13.1		1,694,952		1,453,973
Investment property	13.4		1,378		1,373
Deferred tax assets	28		296		365
Total non-current assets			1,863,979		1,677,573
Total assets			3,844,605		3,372,836

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

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

CONSOLIDATED CLASSIFIED STATEMENTS OF FINANCIAL POSITION (continued)

LIABILITIES AND EQUITY	Note N°	09.30.2011 ThUS$			12.31.2010 ThUS$
Liabilities
Current Liabilities
Other current financial liabilities	8.4		268,393			187,555
Trade and other accounts payable	8.5		180,161			152,147
Trade accounts payable due to related parties, current	7.7		397			3,538
Other current provisions	18.1		13,498			15,014
Current tax liabilities	28.2		78,136			7,113
Current accrual for employee benefits	15.1		22,054			44,011
Other non-financial liabilities, current	18.3		92,618			67,459
Total current liabilities			655,257			476,837
Non-current liabilities
Other non-current financial liabilities	8.4		1,094,061			1,090,188
Other non-current accounts payable	8.5		-			-
Other long-term accrued expenses	18.2		6,500			5,500
Deferred tax liabilities	28.4		78,823			100,781
Non-current accruals for employee benefits	15.1		29,328			28,710
Total non-current liabilities			1,208,712			1,225,179
Total liabilities			1,863,969			1,702,016
Equity	17
Issued capital			477,386			477,386
Retained earnings			1,465,568			1,155,131
Other reserves			(13,480	)		(9,713	)
Equity attributable to owners of the parent			1,929,474			1,622,804
Non-controlling interest			51,162			48,016
Total equity			1,980,636			1,670,820
Total liabilities and equity			3,844,605			3,372,836

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

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

CONSOLIDATED STATEMENTS OF INCOME BY FUNCTION

		January to september						July to September
	Note	2011			2010			2011			2010
	N°	ThUS$			ThUS$			ThUS$			ThUS$
Sales	20		1,606,379			1,324,736			574,679			459,468
Cost of sales			(967,506	)		(870,364	)		(332,987	)		(308,297	)
Gross profit			638,873			454,372			241,692			151,171
Other income by function	27		6,313			5,617			935			1,957
Administrative expenses			(66,713	)		(55,455	)		(23,564	)		(19,389	)
Other expenses by function	27		(40,977	)		(16,255	)		(14,114	)		(6,344	)
Other gains (losses)	27		4,629			(5,870	)		(83	)		698
Interest income			17,376			6,501			5,884			3,647
Finance expenses	22		(30,289	)		(26,534	)		(7,671	)		(8,626	)
Equity in income of associates and joint ventures accounted for using the equity method			14,914			8,299			4,876			3,301
Foreign currency transactions	23		(18,987	)		(6,875	)		(11,846	)		(1,523	)
Income before income tax			525,139			363,800			196,109			124,892
Income tax expense	28.4		(132,696	)		(84,359	)		(49,303	)		(28,330	)
Net income			392,443			279,441			146,806			96,562
Net income (loss) attributable to:
Equity holders of the parent			386,862			276,325			143,246			94,803
Non-controlling interests			5,581			3,116			3,560			1,759
Net income for the year			392,443			279,441			146,806			96,562
Earnings per share
Common shares
Basic earnings per share (US$ per share)	21		1.4699			1.0499			0.5443			0.3602

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

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

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	January to September						July to September
	2011			2010			2011			2011
Statement of comprehensive income	ThUS$			ThUS$			ThUS$			ThUS$
Net income for the year		392,443			279,441			146,806			96,562
Other comprehensive income components before foreign currency translation difference
Gains (losses) from foreign currency translation differences, before tax		(1,646	)		588			(1,656	)		943
Other comprehensive income before tax and foreign currency translation differences		(1,646	)		588			(1,656	)		943
Cash flow hedges
Gains (losses) from cash flow hedges, before tax		(2,700	)		(5,683	)		1,262			(10,240	)
Other comprehensive income before tax and cash flow hedges		(2,700	)		(5,683	)		1,262			(10,240	)
Defined benefit plan reserves SQM North America, before tax		(75	)		-			-			-
Other comprehensive income components. net of tax		(4,421	)		(5,095	)		(394	)		(9,297	)
Income tax related to components of other comprehensive income
Income tax related to other comprehensive income cash flow hedges		540			966			(253	)		1,740
Addition of income tax related to other comprehensive income components		540			966			(253	)		1,740
Other comprehensive income		(3,881	)		(4,129	)		(647	)		(7,557	)
Total comprehensive income		388,562			275,312			146,159			89,005
Comprehensive income attributable to
Comprehensive income attributable to owners of the parent		383,095			271,953			142,713			87,246
Comprehensive income attributable to non-controlling interests		5,467			3,359			3,446			1,759
Total comprehensive income		388,562			275,312			146,159			89,005

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

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

CONSOLIDATED STATEMENTS OF CASH FLOWS

Statement of cash flows	Note N°	09.30.2011 ThUS$			09.30.2010 ThUS$
Cash flows provided by operating activities
Net income for the year			392,443			279,441
Adjustment due to reconciliation of profit to cash flows
Depreciation and amortization			139,202			103,293
Amortization of mining rights			5,998			5,186
Increase in Royalty Corfo  accrual			6,064			4,578
Increase in marketing expense accrual			4,177			4,166
Increase in legal accrual			6,087			5,339
Increase in bonus accrual			23,960			34,648
Increase in vacation liabilities			8,321			6,589
Increase in accrued expenses			15,247			6,705
Unrealized effects of foreign currency transactions			18,987			6,875
Non-distributed gains from associates			(16,591	)		(8,299	)
Income tax expense			132,696			84,359
Adjustments for entries other than cash			12,882			10,438
Adjustments for which the effects on cash are cash flows from Investing or financing activities			(303	)		(430	)
Decrease (increase) in trade accounts receivable			(176,036	)		(24,030	)
Increases in other accounts receivable			(25,273	)		2,141
Decrease (increase) in inventory			(108,384	)		(5,926	)
Increase in trade accounts payable			(27,746	)		(63,772	)
Increases in other accounts payable			5,602			31,375
Reconciling adjustments			24,890			203,235
Interest received			2,517			700
Interest paid			(4,331	)		(7,160	)
Income tax paid			(60,768	)		(52,787	)
Net cash flows provided by operating activities			354,751			423,429
Cash flows used in investing activities
Payments to acquire interest in joint ventures			(4,500	)		(3,500	)
Proceeds from the disposal of property, plant and equipment			1,459			1,333
Acquisition of property, plant and equipment			(387,451	)		(235,552	)
Third parties payment of loans			437			983
Receipts from time deposits  with maturities greater than 90 days			(153,013	)		-
Disbursements from time deposits with maturities  greater  than 90 days			69,818			15,043
Net cash flows used in investing activities			(473,250	)		(221,693	)

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

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

CONSOLIDATED STATEMENTS OF CASH FLOWS, continued

Cash flows provided by (used in) financing activities	Note N°	09.30.2011 ThUS$			09.30.2010 ThUS$
Amounts from the issuance of other equity instruments			-			250,000
Amounts received from long-term loans			390,000			224,000
Payments of loans			(250,000	)		(528,040	)
Dividends paid			(83,560	)		(64,882	)
Other cash outflows			(3,525	)		(6,753	)
Net cash flows provided by (used in) financing activities			52,915			(125,675	)
Net increase in cash and cash equivalents before the effect of changes in foreign exchange rates			(65,584	)		76,061
Effects of variation in foreign exchange rate on cash and cash equivalents			(11,662	)		9,392
Net increase in cash and cash equivalents			(77,246	)		85,453
Cash and cash equivalents at beginning of year			524,652			530,394
Cash and cash equivalents at end of year	5		447,406			615,847

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

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

STATEMENTS OF CHANGES IN EQUITY

For the periods ended at September 30, 2011 and 2010:

	Issued capital ThUS$		Foreign currency translation reserve ThUS$			Cash flow hedge reserve ThUS$			Defined benefit plan reserves ThUS$			Subtotal Other reserves ThUS$			Retained earnings ThUS$			Equity attributable to owners of the parent ThUS$			Non-controlling interests ThUS$			Total equity ThUS$
Beginning balance, current period: January 1, 2011		477,386		1,530			(9,207	)		(2,036	)		(9,713	)		1,155,131			1,622,804			48,016			1,670,820
Net income for the year		-		-			-			-			-			386,862			386,862			5,581			392,443
Other comprehensive income (expenses)		-		(1,532	)		(2,160	)		(75	)		(3,767	)		-			(3,767	)		(114	)		(3,881	)
Comprehensive income		-		(1,532	)		(2,160	)		(75	)		(3,767	)		386,862			383,095			5,467			388,562
Dividends declared		-		-			-			-			-			(76,425	)		(76,425	)		-			(76,425	)
Increase (decrease) from  transfers and other changes		-		-			-			-			-			-			-			(2,321	)		(2,321	)
Changes in  equity		-		(1,532	)		(2,160	)		(75	)		(3,767	)		310,437			306,670			3,146			309,816
Ending balance, current year: September 30, 2011		477,386		(2	)		(11,367	)		(2,111	)		(13,480	)		1,465,568			1,929,474			51,162			1,980,636

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

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

STATEMENTS OF CHANGES IN EQUITY, continued

	Issued capital ThUS$		Foreign currency translation reserve ThUS$		Cash flow hedge reserve ThUS$			Defined benefit plan reserves ThUS$			Subtotal Other reserves ThUS$			Retained earnings ThUS$			Equity attributable to owners of the parent ThUS$			Non-controlling interests ThUS$			Total equity ThUS$
Beginning balance, current period: January 1, 2010		477,386		1,234		(7,984	)		(3,056	)		(9,806	)		951,173			1,418,753			45,697			1,464,450
Net income for the year		-		-		-			-			-			276,325			276,325			3,116			279,441
Other comprehensive income		-		345		(4,717	)		-			(4,372	)		-			(4,372	)		243			(4,129	)
Comprehensive income		-		345		(4,717	)		-			(4,372	)		276,325			271,953			3,359			275,312
Dividends		-		-		-			-			-			(63,528	)		(63,528	)		-			(63,528	)
Increase (decrease) from transfers and other changes		-		-		-			-			-			-			-			(1,655	)		(1,655	)
Changes in  equity		-		345		(4,717	)		-			(4,372	)		212,797			208,425			1,704			210,129
Ending balance, prior year: Sptember 30, 2010		477,386		1,579		(12,701	)		(3,056	)		(14,178	)		1,163,970			1,627,178			47,401			1,674,579

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

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

Notes to the Consolidated Financial Statements

Note 1 - Corporate Information for Sociedad Química y Minera de Chile S.A. and Subsidiaries

Historical Background

Sociedad Química y Minera de Chile S.A. and subsidiaries (collectively the “Company”) is a public corporation organized in accordance with the laws of the Republic of Chile, ID N° 93.007.000-9. The Company was constituted by public deed issued on June 17, 1968 by the Notary Public of Santiago Mr. Sergio Rodríguez Garcés. Its existence was approved by Decree No. 1,164 of the Ministry of Finance on June 22, 1968, and it was registered on June 29, 1968 in the Business Registry of Santiago, on page 4,537 Nº 1,992. The parent company is located at El Trovador 4285, 6th Floor, Las Condes, Santiago, Chile. Its phone No. is (56-2) 425-2000.

The Company is registered with the Securities Registry of the Chilean Superintendence of Securities and Insurance (SVS) under No. 0184 dated March 18. 1983 and is subject to inspection by the SVS.

The Company’s operating segments are divided into five main categories, as follows:

Specialty plant nutrients: In this business line, the Company provides advice in practices for fertilization according to each type of crop, soil and climate.  In this business category, potassium derivative products and especially potassium nitrate have played a leading role, given the contribution they make to developing crops, ensuring an improvement in post-crop life in addition to improving quality, flavor and fruit color. Potassium nitrate, which is sold in multiple formats and as a part of other specialty mixtures, is complemented by sodium nitrate, potassium sodium nitrate, and other mixtures.

Iodine: The Company is an important producer of iodine worldwide.  Iodine is a product that is widely used in the pharmaceutical industry, in technology and in nutrition. Additionally, Iodine is also used in x-ray contrast media and polarizing film for LCD displays.

Lithium: The Company’s Lithium is mainly used in rechargeable batteries for cell phones, cameras and laptops. Through the preparation of lithium-based products, the Company provides significant raw materials to face great challenges such as the efficient use of energy and raw material.  Lithium is not only used for rechargeable batteries and in new technologies for electric vehicles, but is also used in industrial applications to lower melting temperatures and to help save costs and energy.

Industrial Chemicals: Industrial chemicals are products used as supplies for a number of production processes. The Company participates in this line of business, producing sodium nitrate, potassium nitrate, boric acid and potassium chloride. Industrial nitrates are also used as a means for the storage of thermal energy at solar energy plants, which are widely used in countries such as Spain and the United States in their search for decreasing CO2 emissions.

Potassium: Potassium is a primary essential macro-nutrient, and even though it does not form part of a plant’s structure, it has a significant role in the development of its basic functions, validating the quality of a crop, increasing post-crop life, improving the crop flavor, its vitamin content and its physical appearance. Within this business line, the Company also produces potassium chlorate and potassium sulfate, both extracted from the salt layer located under the Atacama Salar (the Atacama Saltpeter Deposit).

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

Note 2 - Basis of presentation for the consolidated financial statements and Summary of significant accounting policies

2.1 Periods covered

These consolidated financial statements cover the following periods:

- Consolidated classified statements of financial position as of September 30, 2011 and as of December 31, 2010.

- Consolidated statements of income by function for the periods ended September 30, 2011 and 2010.

- Consolidated statements of comprehensive income for the periods ended September 30, 2011 and 2010.

- Consolidated statements of cash flows for the periods ended September 30, 2011 and 2010.

- Consolidated statements of changes in equity for the periods ended September 30, 2011 and 2010.

2.2 Basis of preparation

The Company’s annual consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (hereinafter “IFRS”) and represent the integral adoption, explicit, and without reserves of the IFRS as issued by the International Accounting Standards Board (IASB).

These interim consolidated financial statements reflect fairly the Company’s, financial position, results of its operations, comprehensive income, changes in equity and cash flows for the nine months periods ended September 30, 2011 and 2010.

IFRS establish certain alternatives for their application. Those alternative applied by the Company are detailed in this Note.

The accounting policies used in the preparation of these consolidated financial statements comply with each IFRS in force at their presentation date.

For the convenience of the reader, these consolidated financial statements and their accompanying notes have been translated from Spanish to English.

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

Note 2 - Basis of presentation for consolidated financial statements and Summary of significant accounting policies (continued)

2.2 Basis of preparation (continued)

a) Accounting pronouncements

As of the date of these consolidated financial statements, the following accounting pronouncements had been issued by the IASB, but their application was not mandatory, and they were not applied by the Company.

	New standards	Mandatory application for:
NIC 19	Benefits to employees	January 1, 2013
NIC 27	Separate Financial Statements	January 1, 2013
NIIF 9	Financial instruments	January 1, 2013
NIIF 10	Consolidated Financial Statements	January 1, 2013
NIIF 11	Joint venture agreements	January 1, 2013
NIIF 12	Disclosures on ownerships in other companies	January 1, 2013
NIIF 13	Fair value measurement	January 1, 2013

IAS 19 Reviewed “Benefits to employees”

Issued on June 2011, replaces IAS 19 (1998). This revised standard modifies the recognition and measurement of expenses on defined benefits plans and termination benefits. Additionally, includes modifications to disclosures of all employee benefits.

IAS 27 “Separate Financial Statements”

Issued on May 2011, replaces IAS 27 (2008). The scope of this standard is solely restricted from this change to separate financial statements, given that aspects related to the definition of control and consolidation were removed or included in IFRS 10. Its early adoption is permitted in conjunction with IFRS 10, IFRS 11 and IFRS 12 and modification to IAS 28.

IFRS 9 “Financial Instruments”

Issued on December 2009, modifies the classification and measurement of financial assets.

Subsequently, this standard was modified on November 2010 in order to include the treatment and classification of financial liabilities. Its early adoption is permitted.

IFRS 10 “Consolidated Financial Statements”

Issued on May 2011, replaces SIC 12 “Consolidation- special purposes entities and parts of IAS 27 “Consolidated Financial Statements”. Establishes clarifications and new parameters for the definition of control, as well as the principles for the preparation of consolidated financial statements.  Its early adoption is permitted in conjunction with IFRS 11, IFRS 12 and modifications to IAS 27 and 28.

IFRS 11 “Joint Venture Agreements”

Issued on May 2011, replaces IAS 31 “Ownerships in Joint Ventures” and SIC 13 “Jointly Controlled Entities”. Within its modifications, the elimination of the concept related to jointly controlled assets is also included as well as the possibility of applying proportionate consolidation for jointly controlled entities. Its early adoption is permitted in conjunction with IFRS 10, IFRS 12 and modifications to IAS 27 and 28.

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

Note 2 - Basis of presentation for consolidated financial statements and Summary of significant accounting policies (continued)

2.2 Basis of preparation (continued)

IFRS 12 “Disclosures on ownerships in other entities”

Issued on May 2011, applies for those entities that have investments in subsidiaries, joint ventures and associates. Its early adoption is permitted in conjunction with IFRS 10, IFRS 11 and modifications to IAS 27 and 28.

IFRS 13 “Fair value measurement”

Issued on May 2011, meets in a single standard how to measure the fair value of assets, liabilities and required disclosures on these incorporating new concepts and clarifications for its measurement.

	Improvements and Modifications	Mandatory application for:
IAS 1	Presentation of Financial Statements	July 1, 2012
IAS12	Income tax	January 1, 2012
IAS 28	Investments in associates and joint ventures	January 1, 2013

IAS 1 “Presentation of Financial Statements”

Issued on June 2011. The main modification of this amendment requires that items of Other Comprehensive Income should be classified and grouped evaluating whether they will be potentially reclassified to income in subsequent periods. Its early adoption is permitted.

IAS 12 “Income Tax”

This amendment, issued on December 2010, provides and exemption to the general principles of IAS 12 regarding to property held for investment that is measured using the fair value model included in IAS 40 “Investment Property”, the exemption also applies to the investment property acquired in a business combination if after the business combination, the acquirer applies the fair value model included in IAS 40. The modification incorporates the assumption that investment properties valued at fair value are realized through its sale, and consequently, requires the related tax rate for sale operations to apply to temporary differences generated by these,. Its early adoption is permitted.

IAS 28 “Investments in associates and joint ventures”

Issued on May 2011, regulates the accounting treatment of these investments after applying the ownership method. Its early adoption is permitted in conjunction with IFRS 10, IFRS 11 and IFRS 12 and the modification to IAS 27.

Management is in the process of evaluating the impact of the adoption of the new standards, improvements and amendments on the Company’s consolidated financial statements.

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

Note 2 - Basis of presentation for consolidated financial statements and Summary of significant accounting policies (continued)

2.3 Transactions in foreign currency

(a) Functional and presentation currency

The Company’s consolidated financial statements are presented in United States dollars (“U.S. dollars” or “USD”), 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 U.S. dollar.

The conversion of the financial statements of foreign companies with functional currency other than U.S. dollars is performed as follows:

- Assets and liabilities using the exchange rate prevailing on the closing date of the consolidated financial statements.

- Statement of income account items using the average exchange rate for the year.

- Equity accounts are stated at the historical exchange rate prevailing at acquisition date (or at the average exchange rate for the period in which it was generated both for the case of retained earnings and for contributions made), as applicable.

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

Note 2 - Basis of presentation for consolidated financial statements and Summary of significant accounting policies (continued)

2.3 Transactions in foreign currency (continued)

(a) Functional and presentation currency (continued)

Foreign currency translation differences which arise from the conversion of financial statements are recorded in the account “Foreign currency translation differences" within other comprehensive income.

(b) Basis of conversion

Domestic subsidiaries

Assets and liabilities denominated in Chilean pesos and other currencies other than the functional currency (U.S. dollar) as of September 30, 2011, and December 31, 2010, have been translated to U.S. dollars at the exchange rates prevailing at those dates.  The corresponding Chilean pesos were converted at Ch$521.76 per US$1.00 as of September 30, 2011, and Ch$468.01 per US$1.00 as of December 31, 2010.

The values of the UF (a Chilean peso-denominated, inflation-indexed monetary unit) used to convert the UF denominated assets and liabilities as of September 30, 2011 amounted to Ch$22,012.69 (US$42.19), and as of December 31, 2010 amounted to Ch$21,455.55 (US$45.84).

Foreign subsidiaries

The exchange rates used to translate the monetary assets and liabilities expressed in foreign currency at the closing date of each period in respect to the U.S. dollar are detailed as follows:

		09.30.2011		12.31.2010
	US$		US$
Brazilian Real		1.85		1.66
New Peruvian Sol		2.77		2.81
Argentinean Peso		4.24		3.98
Japanese Yen		76.65		81.49
Euro		0.74		0.75
Mexican Peso		13.46		12.38
Australian Dollar		1.03		1.01
Pound Sterling		0.64		0.64
South African Rand		8.08		6.63
Ecuadorian Dollar		1.00		1.00
Chilean Peso		521.76		468.01
UF		42.19		45.84

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

Note 2 - Basis of presentation for consolidated financial statements and Summary of significant accounting policies (continued)

2.3 Transactions in foreign currency (continued)

(c) Transactions and balances

Non-monetary transaction balances denominated in a currency other than the functional currency (U.S. dollar) are translated using the exchange rate in force for the functional currency at the transaction date. Monetary assets and liabilities denominated in a foreign currency are translated at the exchange rate of the functional currency prevailing at the closing date of the consolidated classified statement of financial position. All differences are taken to the statement of income with the exception of all monetary items that provide an effective hedge for a net investment in a foreign operation. These items are recognized in other comprehensive income upon the disposal of the investment, at which time they are recognized in the statement of income. Tax charges and credits attributable to exchange differences on those monetary items are also recorded in other comprehensive income.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined.

(d) Group entities

The profit or loss, assets and liabilities of all those entities with a functional currency other than the presentation currency are translated to the presentation currency as follows:

- Assets and liabilities are translated at the closing date exchange rate as of the date of the consolidated statement of financial position.

- Revenue and expenses in each profit or loss account are translated at average exchange rates for the year.

- All resulting foreign currency exchange differences are recognized as a component separate from other comprehensive income (the foreign currency translation difference reserve).

2.4 Basis of consolidation

(a) Subsidiaries

Subsidiaries are all those entities over which the Company has control to lead the financial and operating policies, which, in general, is accompanied by an interest of greater than half the voting rights. Subsidiaries are consolidated from the date on which control is transferred to the Company and are excluded from consolidation on the date that this control ceases to exist.

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

Note 2 - Basis of presentation for consolidated financial statements and Summary of significant accounting policies (continued)

2.4 Basis of consolidation (continued)

(a) Subsidiaries (continued)

In order to recognize the acquisition of a subsidiary, the Company uses the acquisition method. Under this method, the acquisition cost is the fair value of assets delivered, of equity instruments issued and of liabilities incurred or assumed at the exchange date plus costs directly attributable to the acquisition. Identifiable assets acquired and identifiable liabilities and contingencies assumed in a business combination are initially stated at their fair value as of the acquisition date. For each business combination, the acquirer measures the non-controlling interests in the acquiree at fair value.

Companies included in consolidation:

				Ownership interest
		Country of	Functional					09.30.2011		12.31.2010
TAX ID No.	Foreign subsidiaries	origin	currency	Direct		Indirect		Total		Total
Foreign	Nitratos Naturais Do Chile Ltda.	Brazil	US$		0.0000		100.0000		100.0000		100.0000
Foreign	Nitrate Corporation Of Chile Ltd.	United Kingdom	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM North America Corp.	USA	US$		40.0000		60.0000		100.0000		100.0000
Foreign	SQM Europe N.V.	Belgium	US$		0.8600		99.1400		100.0000		100.0000
Foreign	Soquimich S.R.L. Argentina	Argentina	US$		0.0000		100.0000		100.0000		100.0000
Foreign	Soquimich European Holding B.V.	The Netherlands	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM Corporation N.V.	Dutch Antilles	US$		0.0002		99.9998		100.0000		100.0000
Foreign	SQI Corporation N.V.	Dutch Antilles	US$		0.0159		99.9841		100.0000		100.0000
Foreign	SQM Comercial De Mexico S.A. De C.V.	Mexico	US$		0.0013		99.9987		100.0000		100.0000
Foreign	North American Trading Company	USA	US$		0.0000		100.0000		100.0000		100.0000
Foreign	Administración Y Servicios Santiago S.A. De C.V.	Mexico	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM Peru S.A.	Peru	US$		0.9800		99.0200		100.0000		100.0000
Foreign	SQM Ecuador S.A.	Ecuador	US$		0.0040		99.9960		100.0000		100.0000
Foreign	SQM Nitratos Mexico S.A. De C.V.	Mexico	US$		0.0000		51.0000		51.0000		51.0000
Foreign	SQMC Holding Corporation L.L.P.	USA.	US$		0.1000		99.9000		100.0000		100.0000
Foreign	SQM Investment Corporation N.V.	Dutch Antilles	US$		1.0000		99.0000		100.0000		100.0000
Foreign	SQM Brasil Limitada	Brazil	US$		2.7900		97.2100		100.0000		100.0000
Foreign	SQM France S.A.	France	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM Japan Co. Ltd.	Japan	US$		1.0000		99.0000		100.0000		100.0000
Foreign	Royal Seed Trading Corporation A.V.V.	Aruba	US$		1.6700		98.3300		100.0000		100.0000
Foreign	SQM Oceania Pty Limited	Australia	US$		0.0000		100.0000		100.0000		100.0000
Foreign	Rs Agro-Chemical Trading A.V.V.	Aruba	US$		98.3300		1.6667		100.0000		100.0000
Foreign	SQM Indonesia	Indonesia	US$		0.0000		80.0000		80.0000		80.0000
Foreign	SQM Virginia L.L.C.	USA	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM Venezuela S.A.	Venezuela	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM Italia SRL	Italy	US$		0.0000		100.0000		100.0000		100.0000
Foreign	Comercial Caiman Internacional S.A.	Cayman Islands	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM Africa Pty.	South Africa	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM Lithium Specialties LLC	USA	US$		0.0000		100.0000		100.0000		100.0000
Foreign	Fertilizantes Naturales S.A.	Spain	US$		0.0000		100.0000		100.0000		66.6750
Foreign	Iodine Minera B.V.	The Netherlands	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM Agro India Pvt. Ltd.	India	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM Beijin Comercial Ltd.	China	US$		0.0000		100.0000		100.0000		100.0000

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

Note 2 - Basis of presentation for consolidated financial statements and Summary of significant accounting policies (continued)

2.4 Basis of consolidation  (continued)

(a) Subsidiaries (continued)

Companies included in consolidation

				Ownership interest
		Country of	Functional					09.30.2011		12.31.2010
TAX ID No.	Domestic subsidiaries	origin	currency	Direct		Indirect		Total		Total
96.801.610-5	Comercial Hydro  S.A.	Chile	Chilean peso		0.0000		60.6383		60.6383		60.6383
96.651.060-9	SQM Potasio S.A.	Chile	US$		99.9974		0.0000		99.9974		99.9974
96.592.190-7	SQM Nitratos S.A.	Chile	US$		99.9999		0.0001		100.0000		100.0000
96.592180-K	Ajay SQM Chile S.A.	Chile	US$		51.0000		0.0000		51.0000		51.0000
86.630.200-6	SQMC Internacional  Ltda.	Chile	Chilean peso		0.0000		60.6381		60.6381		60.6381
79.947.100-0	SQM Industrial S.A.	Chile	US$		99.0470		0.9530		100.0000		100.0000
79.906.120-1	Isapre Norte Grande Ltda.	Chile	Chilean peso		1.0000		99.0000		100.0000		100.0000
79.876.080-7	Almacenes y Depósitos Ltda.	Chile	Chilean peso		1.0000		99.0000		100.0000		100.0000
79.770.780-5	Servicios Integrales de Tránsitos y Transferencias S.A.	Chile	US$		0.0003		99.9997		100.0000		100.0000
79.768.170-9	Soquimich Comercial S.A.	Chile	US$		0.0000		60.6383		60.6383		60.6383
79.626.800-K	SQM Salar S.A.	Chile	US$		18.1800		81.8200		100.0000		100.0000
78.602.530-3	Minera Nueva Victoria S.A.	Chile	US$		99.0000		1.0000		100.0000		100.0000
78.053.910-0	Proinsa Ltda.	Chile	Chilean peso		0.0000		60.5800		60.5800		60.5800
76.534.490-5	Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.	Chile	Chilean peso		0.0000		100.0000		100.0000		100.0000
76.425.380-9	Exploraciones Mineras S.A.	Chile	US$		0.2691		99.7309		100.0000		100.0000
76.064.419-6	Agrorama Callegari Ltda. (*)	Chile	Chilean peso		0.0000		42.4468		42.4468		42.4468
76.145.229-0	Agrorama S.A.	Chile	Chilean peso		0.0000		60,6377		60,6377		0.0000

(*) Agrorama Callegari Ltda. was consolidated given that the Company has control through subsidiary Soquimich Comercial S.A.

Subsidiaries are consolidated by including in the consolidated financial statements all of their assets, liabilities, revenues, expenses and cash flows upon making the respective adjustments and eliminations of intragroup operations.

The results from subsidiary companies acquired or disposed of during the year are included in consolidated statement of income accounts from the effective date of acquisition or up to the effective date of disposal, as applicable.

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

Note 2 - Basis of presentation for consolidated financial statements and Summary of significant accounting policies (continued)

2.4  Basis of consolidation (continued)

(a) Subsidiaries (continued)

Non-controlling interests represent the portion of subsidiary net assets and operating results not owned by the parent company.

.

2.5 Significant accounting judgments, estimates and assumptions

The information contained in these consolidated financial statements is the responsibility of the Company’s management, who expressly indicate that they have applied all the principles and criteria included in IFRS, issued by the IASB.

In the accompanying consolidated financial statements, judgments and estimates have been made by management to quantify certain assets, liabilities, revenues, expenses and commitments recorded and or disclosed therein. Basically, these estimates include, but are not limited to, the following:

- The useful lives of tangible and intangible assets and their residual values.

- Impairment evaluations and resulting losses, if any.

- Assumptions used for the actuarial calculation of employee benefits.

- Provisions and contingent liabilities.

- Inventory provisions based on technical studies which cover the different variables affecting products in stock (density. humidity. among others) and allowances on slow-moving spare parts in inventory.

- Future costs for the closure of mining facilities.

- The determination of the fair value of certain financial and non-financial assets and derivative instruments.

- The determination and allocation of fair values in business combinations.

Although these estimates have been made considering information available as of the date of preparation of these consolidated financial statements, it is possible that events that may occur in the future could make their modification necessary in future years.  Changes would be recorded prospectively, recognizing the effects of the change in estimates in the respective future consolidated financial statements.

2.6 Financial information by operating segment

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.

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

Note 2 - Basis of presentation for consolidated financial statements and Summary of significant accounting policies (continued)

2.6 Financial information by operating segment (continued)

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

The following operating segments have been identified by the Company:

- Specialty plant nutrients

- Industrial chemicals

- Iodine and derivatives

- Lithium and derivatives

- Potassium

- Other products and services

The Company has not been able to allocate all assets and liabilities to each operating segment because the same productive plants and process are often related to more than one operating segment. Such assets and liabilities are classified as non-allocated in Note 27.

2.7 Property, plant and equipment

Tangible property, plant and equipment assets 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:

1. Accrued interest expenses during the construction period which 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.

26

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

Note 2 - Basis of presentation of consolidated financial statements and Summary of significant accounting principles (continued)

2.7 Property, plant and equipment (continued)

2. The present value of future costs that the Company will have to experience related to the closure of its facilities are included in the asset's cost.

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 incurred.

Property, plant and equipment, net in the case of their residual values are depreciated using thee straight-line method over its estimated useful lives. When portions of a property, plant and equipment item have different useful lives, these portions are recorded as separate items. The useful life is reviewed annually, and revised if necessary.

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

Types of property. plant and equipment	Life		Life
Buildings		3		60
Plant and equipment		3		35
Information technology equipment		3		10
Fixed installations and accessories		3		35
Motor vehicles		5		10
Other property. plant and equipment		2		30

27

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

Note 2 - Basis of presentation of consolidated financial statements and Summary of significant accounting principles (continued)

2.7 Property, plant and equipment (continued)

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.

The Company obtains property rights and mining concessions from the Chilean State Government. Property rights are usually obtained without any initial cost (other than the payment of mining licenses and minor registration expenses) and when rights are obtained on these concessions, the Company retains them while it pays the related annual license fees. Such license fees, which are paid annually, are recorded as prepaid expenses and amortized over the following twelve month period. Amounts attributable to mining concessions acquired from other Governments or third parties, which are not from the Chilean State, are recorded at their acquisition cost in property, plant and equipment, and depreciated over their contractual lives.

2.8 Investment properties

The Company recognizes as investment properties the net values of land, buildings and other properties held which it intends to commercialize under lease agreements, or to obtain proceeds from their sale as a result of those increases generated in the future in the respective market prices. These assets are not used in the activities and are not destined for the Company’s own use.

Investment properties are initially stated at acquisition cost, which includes the acquisition price or production cost plus directly assignable expenses. Subsequently, investment properties are stated at their acquisition cost less accumulated depreciation, and the possible accrued provisions for value impairment.

2.9 Inventory

The Company states inventory at the lower of cost or net realizable value. Cost includes direct costs of materials and; as applicable, labor costs, indirect costs incurred to transform raw materials into finished products, and general expenses incurred in carrying inventory to their current location and conditions.  The method used to determine the cost of inventory is weighted average cost method.

The net realizable value of inventory represents the estimate of the sales price less estimated finishing costs and costs that will be incurred in commercialization, sales and distribution processes.

Commercial discounts, rebates obtained and other similar entries are deducted in the determination of the acquisition price.

28

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

Note 2 - Basis of presentation of consolidated financial statements and Summary of significant accounting principles (continued)

2.9 Inventory (continued)

The valuation of obsolete, impaired or slow-moving products relates to their estimated net realizable value.  The Company conducts an evaluation of the net realizable value of inventory at the end of each year, recording an estimate with a charge to expense when inventories are overstated. When the circumstances that previously gave rise to the write-down cease to exist, or when there is clear evidence of an increase in the net realizable value due to a change in the economic circumstances (or prices of primary raw materials), the estimate made previously is modified.

Provisions on the Company's inventory have been made based on a technical study which covers the different variables affecting products in stock (density, humidity, among others.)

2.10 Trade and other accounts receivable

Trade and other accounts receivable relate to non-derivative financial assets with fixed payments that can be determined and are not quoted in any active market.  These arise from sales operations involving the products and/or services that the Company commercializes directly to its customers.

These assets are initially recognized at their fair value (which is equivalent to their face value, discounting implicit interest for installment sales) and subsequently at amortized cost according to the effective interest rate method less an accrual for impairment loss.  When the face value of the account receivable does not significantly differ from its fair value, it is recognized at face value. An allowance for impairment loss is established for trade accounts receivable when there is objective evidence that the Company will not be able to collect all the amounts owed to it according to the original terms of accounts receivable.

Implicit interest in installment sales is recognized as interest income when interest is accrued over the term of the operation.

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

Note 2 - Basis of presentation of consolidated financial statements and Summary of significant accounting principles (continued)

2.11 Revenue recognition

Revenue includes the fair value of considerations received or receivable for the sale of goods and services during 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.

Revenue is recognized when its amount can be stated reliably, it is possible that the future economic rewards will flow to the entity and the specific conditions for each type of activity -related revenue are complied with, as follows:

(a) Sale of goods

Sales of goods are recognized when the Company has delivered products to the customer, the customer has total discretion on the distribution channel and the price at which products are sold 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 customers when the related risks of obsolescence and loss have been transferred to the customer and the customer has accepted products in accordance with the conditions established in the sale, the acceptance period has ended or 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) Sales of services

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

(c) Interest income

Interest income is recognized when interest is accrued in consideration of the principal pending payment using the effective interest rate method.

(d) Income from royalties

Income from royalties is recognized based on the accrual in accordance with the economic substance of the related agreements.

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Note 2 - Basis of presentation of consolidated financial statements and Summary of significant accounting principles (continued)

2.11 Revenue recognition (continued)

(e) Income from dividends

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

2.12 Investments recognized using the equity method

Interests in companies in which control is exercised together with another company (joint ventures) or in which the Company has significant influence (associated companies) are recorded using the equity method. Significant influence is assumed to exist when the Company has interest exceeding 20% of the investee's equity.

Under this method, the investment is recognized in the consolidated classified statement of financial position at cost plus changes subsequent to the acquisition in an amount proportional to the net associated company’s equity using the ownership interest in the associate.  The associated goodwill is included at the carrying value of the investee, and it is not subject to amortization. The debit or credit to profit or loss reflects the proportional amount in the associated companies’ results for the reporting period.

Unrealized profit on transactions with associates and subsidiaries are eliminated in consolidation of the ownership percentage that the Company has on these entities.

Unrealized losses are also eliminated unless the transaction provided evidence of loss from impairment of the assets transferred.

Changes in equity of the associates are recognized proportionally with a debit or credit to “Other reserves” and classified according to their origin.

The associated companies and the Company’s reporting dates and policies are similar for equivalent transactions and events under similar circumstances.

In the event that significant influence is lost or the investment is sold or is available-for-sale, the equity value method is discontinued, suspending the recognition of proportional income.

If the resulting amount according to the equity method is negative, the Company’s equity interest is reduced to zero in the consolidated classified statement of financial position unless the Company has a contractual commitment to resolve the equity position.  In this case, the respective provision for risks and expenses is recorded.

Dividends received in these companies are recorded by reducing the equity value and proportional profit or loss recognized in conformity with their interest, and are included in the consolidated statement of income under the caption “Equity in income (losses) of associates and joint ventures accounted for using the equity method”.

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Note 2 - Basis of presentation of consolidated financial statements and Summary of significant accounting principles (continued)

2.13 Income Tax

Corporate income tax for the year is determined as the sum of current 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 year.

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 Chilean 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.

Tax on companies and variations in deferred tax assets or liabilities that are not the result of business combinations are recorded in statement of income accounts or equity accounts in the consolidated classified statement of financial position, considering the origin of the gains or losses which have generated them.

As of the date of these consolidated financial statements, the carrying value of deferred tax assets has been reviewed and reduced to the extent their will not be sufficient taxable income to allow the recovery of all or a portion of the deferred tax assets.  Likewise, as of the date of the consolidated financial statements, deferred tax assets that are not recognized are were evaluated and not recognized as it was not more likely than not that future taxable income will allow for recovery of the deferred tax asset.

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 income tax related to entries directly recognized in equity is recognized with an effect on equity and not with an effect on profit or loss.

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.

2.14 Earnings per share

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

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The Company has not conducted any type of operation of potential dilutive effect that assumes diluted earnings per share other than the basic earnings per share.

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Note 2 - Basis of presentation of consolidated financial statements and Summary of significant accounting principles, continued

2.15 Non-financial  asset value impairment

Assets subject to depreciation and amortization are 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.

The recoverable amount of an asset is the higher between the fair value of an asset or cash generating unit (“CGU”) 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.

When the carrying value of an asset exceeds its recoverable amount, the asset is considered an impaired asset and is reduced to its net recoverable amount.

In evaluating value in use, estimated future cash flows are discounted using a discount rate before taxes which reflects current market evaluation on the time value of money and specific asset risks.

An appropriate valuation model is used to determine the fair value less selling costs.  These calculations are confirmed by valuation multiples, quoted share prices for subsidiaries quoted publicly or other available fair value indicators.

Impairment losses are recognized as expense, except for properties reevaluated previously where the revaluation was taken to equity. In this case impairment is also recognized with a debit to equity up to the amount of any previous revaluation.

For assets other than acquired goodwill, an annual evaluation is conducted of whether there is impairment loss indicators recognized previously that might have already ceased to exist or decreased. The recoverable amount is estimated if such indicators exist.  An impairment loss previously recognized is reversed only if there have been changes in estimates used to determine the asset’s recoverable amount from the last time in which 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 would have not been recognized in prior years. This reversal is recognized with a credit to profit or loss unless an asset is recorded at the revalued amount.  Should this be the case, the reversal is treated as an increase in revaluation.

As of September 30, 2011, and December 31, 2010, the Company is not aware of any indicators of impairment with respect to its depreciated assets.

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Note 2 - Basis of presentation of consolidated financial statements and Summary of significant accounting principles (continued)

2.16 Financial assets

The Company classifies its financial assets under the following categories: at fair value through profit or loss, loans and accounts receivable, financial assets held-to-maturity and financial assets available-for-sale. The classification depends on the purpose for which financial assets were acquired. Management determines the classification of its financial assets at the time of initial recognition.

The Company assesses at each reporting date whether there is any objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of assets is deemed to be impaired if and only if there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred “loss event”) and that loss event has an impact on the estimated future cash flow of the financial asset or the group of financial assets that can be reliably estimated.

(a) Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if it is acquired mainly for the purpose of being sold in the short-term. Derivatives are also classified as acquired for trading unless they are designated as hedge accounts. Assets under this category are classified as current assets and variations generated in fair value are directly recognized in profit or loss.

(b) Loans and accounts receivable

Loans and accounts receivable are non-derivative financial assets with fixed payments or payments that can be determined and are not quoted in any active market. These are included in current assets, except for those with expiration dates exceeding 12 months from the closing date, which are classified as non-current assets. Loans and accounts receivable are included under the caption “Trade and other accounts receivable” in the consolidated classified statement of financial position and are stated at amortized cost. The subsequent measurement at amortized cost is calculated using the effective interest rate method less impairment.

(c) Financial assets held-to-maturity

Financial assets held-to-maturity are non-derivative financial assets with fixed payments or payments that can be determined and fixed expiration dates which management has the positive intention and ability of holding to maturity. If a significant amount of financial assets held to maturity were to be sold, the full category would be reclassified as available for sale. Assets in this category are stated at amortized cost.

(d) Financial assets available for sale

Financial assets available for sale are non-derivative instruments that have been designated in this category or are not classified in any of the other categories. They are included in non-current assets unless the Company intends to dispose of the investment in the 12 months following the closing date. These assets are stated at fair value, recognizing in other comprehensive income those variations in fair value.

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Note 2 - Basis of presentation of consolidated financial statements and Summary of significant accounting principles (continued)

2.17 Financial liabilities

The Company classifies its financial liabilities under the following categories: at fair value through profit or loss, trade accounts payable, interest-bearing loans or derivatives designated as hedging instruments.

The Company’s management determines the classification of its financial liabilities at the time of initial recognition.

Financial debt obligations are recorded at nominal value and as non-current when maturity is over twelve months and as current when maturity is less than twelve months. Interest expenses are recorded the year in which they are accrued under a financial approach.

In accordance with IAS 32 and 39, debt-related expenses are accounted for in the accompanying consolidated classified statements of financial position, deducting the associated debt and are imputed to the results of the year within the life of the debt using the effective interest rate method.

Financial liabilities are derecognized when the obligation is repaid, settled or it expires.

(a) Financial liabilities at fair value through profit or loss

Financial liabilities are classified at fair value when these are held for trading or designated in their initial recognition at fair value through profit or loss. This category includes derivative instruments not designated for hedge accounting.

(b) Trade accounts payable

Trade accounts payable to suppliers are subsequently stated at their amortized cost using the effective interest rate method.

(c) Interest-bearing loans

Loans are subsequently stated at amortized cost using the effective interest rate method. Amortized cost is calculated considering any premium or discount from the acquisition and includes costs of transactions which are an integral part of the effective interest rate.

2.18 The 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.

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Note 2 - Basis of presentation of consolidated financial statements and Summary of significant accounting principles (continued)

2.19 Minimum dividend

As required by the Public Corporations Act, unless otherwise decided by the shareholders through unanimous vote of the holders of those shares issued and subscribed, a public corporation must distribute a minimum dividend of 30% of its profit for the year, except in the event that the Company has losses not absorbed in prior years.

2.20 Consolidated statement of cash flows

Cash equivalents relate to short-term, highly liquid investments that are readily convertible into known amounts of cash and are subject to low risk of change in value, and that expire in less than three months. This classification also applies to mutual funds classified as cash equivalents.

The statement of cash flows includes cash movements performed during the year, determined using the indirect method.

2.21 Obligations related to employee termination benefits and pension commitments

Obligations with the Company’s employees are in accordance with that established in the collective bargaining agreements in force formalized through collective employment agreements and individual employment contracts.   In the case of the United States employees, certain obligations are in accordance with the related pension plan.

These obligations are valued using actuarial calculations, which consider such hypotheses 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.

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Note 2 - Basis of presentation of consolidated financial statements and Summary of significant accounting principles (continued)

2.21 Obligations related to employee termination benefits and pension commitments (continued)

Actuarial losses and gains that may be generated by variations in previously defined obligations are directly recorded in consolidated statement of income.

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

The discount rate used by the Company for calculating the obligation was 6% for the periods ended September 30, 2011 and December 31, 2010.

The Company’s affiliate 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 using a 6.5% interest rate. The net balance of this obligation is presented in the category called non-current accruals for employee benefits.

2.22 Financial derivatives and hedge transactions

Derivatives are recognized initially at fair value as of the date in which the derivatives contract is signed and subsequently they are valued at fair value at each period end.  The method for recognizing the resulting loss or gain 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 an asset or liability recognized or a highly possible foreseen transaction (cash flow hedge);

At the beginning of the transaction, the Company documents the relationship existing between hedging instruments and those entries 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 the end of each period of whether derivatives used in hedging transactions are highly effective to offset changes in the fair value or in cash flows of hedged entries.

The fair value of derivative instruments used for hedging purposes is shown in Note 8.3. Movements in the cash flow hedge reserve (other comprehensive income) are classified as a non-current asset or liability if the remaining expiration period of the hedged item is higher than 12 months and as a current asset or liability if the remaining expiration period of the entry is lower than 12 months.

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Note 2 - Basis of presentation of consolidated financial statements and Summary of significant accounting principles (continued)

2.22 Financial derivatives and hedge transactions(continued)

Financial derivatives are classified as a current asset or liability, and the change in their fair value is recognized directly in profit or loss.

(a) Fair value hedge

The change in the fair value of a derivative is recognized with a debit or credit to profit or loss, as applicable. The change in the fair value of the hedged entry attributable to hedged risk is recognized as part of the carrying value of the hedged entry and is also recognized with a debit or credit to profit or loss.

For fair value hedging related to items recorded at amortized cost, the adjustment of the fair value is amortized against income during the period through maturity. Any adjustment to the carrying value of a hedged financial instrument for which the effective rate is used is amortized with a debit or credit to profit or loss at its fair value attributable to the risk being covered.

If the hedged entry is derecognized, the fair value not amortized is immediately recognized with a debit or credit to profit or loss.

(b) Cash flow hedges

The effective portion of gains or losses from the hedge instrument is initially recognized with a debit or credit to other comprehensive income, whereas any ineffective portion is immediately recognized with a debit or credit to income, as applicable.

Amounts taken to equity are transferred to profit or loss when the hedged transaction affects income for the year, as when the hedged interest income or expense is recognized when a forecasted sale occurs. When the hedged entry is the cost of a non-financial asset or liability, amounts taken to equity are transferred to the initial carrying value of the non-financial asset or liability.

Should the expected firm transaction or commitment no longer be expected to occur, the amounts previously recognized in other comprehensive income are transferred to income. If a hedge instrument expires, is sold, finished, and exercised without any replacement, or if a rollover is performed or if its designation as hedging is revoked, the amounts previously recognized in equity are maintained in shareholders’ equity until the expected firm transaction or commitment occurs.

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Note 2 - Basis of presentation of consolidated financial statements and Summary of significant accounting principles (continued)

2.23 Leases

(a) Leases  - Finance lease

Leases are classified as finance leases when the Company holds substantially all the risks and rewards derived from the ownership. Finance leases are capitalized at the beginning of the lease at the lower of the fair value of the leased asset or the present value of minimum lease payments.

Each lease payment is distributed between the liability and the interest expenses to obtain ongoing interest on the pending balance of the debt. The respective lease obligations, net of interest expense, are included in other non-current liabilities. The interest element of finance cost is debited in the consolidated statement of income during the lease period so that a regular ongoing interest rate is obtained on the remaining balance of the liability for each year. The asset acquired through a finance lease is subject to depreciation over the lesser value of its useful life or the life of the agreement.

(b) Lease - Operating lease

Leases in which the lessor maintains a significant part of the risks and rewards derived from the ownership are classified as operating leases. Operating lease payments (net of any incentive received from the lessor) are debited to the statement of income or capitalized (as applicable) on a straight-line basis over the lease period.

2.24 Prospecting expenses

Those prospecting expenses associated with mineral reserves being exploited are included under Inventory and amortized according to the estimated mineral content reserves. Prospecting expenses associated with future mineral reserves are presented under other non-financial assets as and when minerals included in the future reserve have caliche ore-grade, which makes the mining property economically commercializable.

Those expenses incurred on mining properties in which the product has a low caliche ore-grade that is not economically commercializable, are directly charged to income.

2.25 Other provisions accrued expenses

Provisions are recognized when:

 * The Company has a present obligation as the result of a past event.

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

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

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Note 2 - Basis of presentation of consolidated financial statements and Summary of significant accounting principles (continued)

2.25 Other provisions accrued expenses (continued)

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 time value of money be significant, provisions are discounted using a discount rate before taxes 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 maintaining accruals 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.

The Company determines and recognizes the cost related to employee vacation on an accrual basis.

2.26 Compensation plans

Compensation plans implemented through benefits in share-based payments settled in cash, which have been provided, are recognized in the financial statements at their fair value, in accordance with International Financial Reporting Standard No. 2 “Share-based payments”. Variations in the fair value of options granted are recognized with a charge to wages on a straight-line basis during the period between the date on which these options are granted and the payment date. (See Note N°16)

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Note 2 - Basis of presentation of consolidated financial statements and Summary of significant accounting principles (continued)

2.27 Goods and service insurance expenses

Payments for the different insurance policies which the Company contracts are recognized in expenses considering the proportional amount related to the time that they cover, regardless of payment terms. Amounts paid and not consumed are recognized as prepaid expenses within current assets.

Costs of claims are recognized in profit or loss immediately after they become known, net of recoverable amounts from insurance companies. Recoverable amounts are recorded as a reimbursable asset from the insurance company under “Trade and other accounts receivable", calculated as established in the respective insurance policies.

2.28 Intangible assets

Intangible assets mainly relate to goodwill acquired, water rights, trademarks, and rights of way related to electric lines and development expenses, and computer software licenses.

(a) Goodwill acquired

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 acquisitions of subsidiaries is included in intangible assets, which is subject to value impairment tests annually and is stated at cost plus 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.

(b) Water rights

Water rights acquired by the Company relate to water from natural sources and are recorded at acquisition cost. Given that these assets represent rights granted on a perpetual basis to the Company, these are not amortized. However, they are subject to an impairment assessment on an annual basis.

(c) Right 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 in third party land. These rights are presented under Intangible assets. Amounts paid are capitalized at the date of the agreement and charged to income according to the life of the right of way.

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Note 2 - Basis of presentation of consolidated financial statements and Summary of significant accounting principles (continued)

2.28 Intangible assets (continued)

(d) Computer software

Licenses for IT programs acquired are capitalized based on costs that have been incurred to acquire them and prepare them to use the specific program. 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 probably will generate economic benefits that are higher than costs during more than a year, are recognized as intangible assets. Direct costs include expenses incurred for employees who develop IT programs and an adequate percentage of general expenses.

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

No impairment of intangible assets exists as of September 30, 2011 and December 31, 2010.

2.29 Research and development expenses

Research and development expenses are expensed in the period in which the disbursement is made, with the exception of property, plant and equipment acquired for use in research and development, which are recognized in the accounting under the respective item within property, plant and equipment.

2.30 Classification of balances as current and non-current

In the attached statement of financial position, balances are classified in consideration of their remaining recovery (maturity) dates; i.e., those maturing on a date equal to or lower than twelve months are classified as current 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 anticipated recovery date.

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Note 3 - Financial Risk Management, Objectives and Policies

3.1 Risk management policy

The Risk Management Policy of the company is oriented towards safeguarding its stability and sustainability in relation to all such relevant financial uncertainty components.

The operations of the Company are subject to certain risk factors that may affect the financial position or results of operations. Among these risks, the most relevant are market risk, liquidity risk, foreign exchange rate risk, doubtful accounts risk, and interest rate risk.

There may be additional risks that might also affect the commercial operations, the business, the financial position or the operations of the Company, but at this time they are not considered significant.

The financial risk management structure includes identifying, determining, analyzing, quantifying, measuring and controlling these events. Management, in particular the Finance Management, is responsible for constantly assessing the financial risk.  The Company uses derivatives to cover a significant portion of these risks.

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Note 3 - Financial Risk Management, Objectives and Policies (continued)

3.2 Risk factors

3.2.1 Market risk

Market risks are those uncertainties associated with fluctuations of market variables that affect the assets and liabilities of the Company, such as:

a) Country risk

 The economic position of the countries where the Company has a presence may affect its financial position. For example, the sales carried out in emerging markets expose the Company to risks related to economic conditions and trends in those countries. On the other hand, inventory may also be affected by the economic situation of these countries and/ or the global economy, amongst other probable economic impacts.

b) Price volatility risk

The prices of the Company’s products are affected by the fluctuations of the international prices of fertilizers and chemical products and changes in productive capacities or market demand, all of which might affect the Company’s business, financial position and operating income.

c) Commodities price risk

The Company is exposed to changes in the prices of raw materials and energy, which may have an impact on its production costs, ThUS giving rise to instability in the results.

At present, the Company has a direct annual expense close to US$90 million on account of fuel and close to US$55 million on account of electricity. Variations of 10% in the prices of energy the Company requires to operate, may involve in the short term movements in costs amounting to US$14.5 million.

3.2.2 Doubtful accounts risk

As occurred in the last global financial crisis, the contraction of the global economy and the potentially negative effects on the financial position of the Company’s clients may extend the accounts receivable collection time, increasing the Company’s exposure to doubtful accounts. While measures have been taken in order to minimize risk, the global economy may trigger losses that might have a material adverse effect on the business, financial position or the results of the Company’s operations.

As a way to mitigate these risks, the Company actively controls debt collection and uses measures such as loan insurance, letters of credit, and advance payments with regard to some accounts receivable.

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Note 3 - Financial Risk Management, Objectives and Policies (continued)

3.2 Risk factors (continued)

3.2.3 Foreign exchange risk

As a result of the influence in the price determination, of its relationship with sales costs, and since a significant part of the business of the Company is carried out in that foreign currency, the functional currency of the Company is the U.S. dollar. However, the global business activities of the Company expose it to the foreign exchange fluctuations of several currencies with respect to the US dollar. Therefore, the Company has hedge contracts to insure its main mismatches (assets net of liabilities) in currencies other than the US dollar against the foreign exchange fluctuation. Those contracts are periodically up-dated depending upon the mismatch amount to be covered in these currencies.

A significant portion of the Company’s costs is related to the Chilean peso. Therefore, an increase or decrease in the foreign exchange rate between the Chilean peso and the US dollar would affect its costs US$370 million of the Company’s costs, especially payroll, relate to the Chilean peso, which are hedged by derivative instruments that cover currency fluctuations.

As of December 31, 2010 the Company had derivative instruments classified as foreign exchange risk and interest rate hedged associated with the total bond obligations in both Chilean pesos and UF (units indexed by inflation), for a fair value of US$97.5 million. As of September 30, 2011 this sum amounts to US$ 47.9 million, both in favor of the Company.

3.2.4 Interest rate risk

Interest rate fluctuations, due to the uncertain future behavior of markets, may have a material impact on the financial results of the Company.

The Company has short and long term debts valued at LIBOR plus a spread. As the Company does not have derivative instruments to cover LIBOR fluctuations, the Company is subject to the fluctuations of that rate.

As of September 30, 2011 approximately 28% of the Company’s financial obligations included current portion valued at LIBOR, therefore significant increases in the rate may impact its financial position. A 100 point variation on this rate may trigger variations in the financial expenses close to US$3.8 million per year; however, this effect is significantly counterbalanced by the returns of the Company’s investments that also relate to LIBOR.

In addition, the Company has over the total financial debt as of September 30, 2011 a percentage close to 18% with short term maturity, thus reducing the exposure to interest rate fluctuations.

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Note 3 - Financial Risk Management, Objectives and Policies (continued)

3.2 Risk factors (continued)

3.2.5  Liquidity risk

Liquidity risk is related to the fund requirements to comply with payment obligations. The object of the Company is to keep financial flexibility by comfortably balancing the fund requirements and the flows from the regular business conduct, bank loans, public bonds, short term investments, and negotiable instruments, amongst others.

The Company has a relevant capital expense program that is subject to risks and uncertainties. Mostly the exploration and exploitation of reserves, mining and processing costs, and compliance with the applicable regulations require important capital expenses, which are subject to variations in time.

On the other hand, world financial markets go through contraction and expansion periods that are not foreseeable in the long term and may affect the Company’s access to financial resources. These factors may have a material adverse impact on the business, financial position, and operational results of the Company.

As a result of the foregoing, the Company constantly monitors that its obligations and investments match, taking care as part of its financial risk management strategy of the obligations and investments maturities from a conservative perspective. As of September 30,2011 the Company had committed bank lines amounting to US$537 million and not committed bank lines amounting to US$40 million, in the event additional resources were needed.

The position in other cash and cash equivalents so generated by the Company is invested in highly liquid mutual funds which risk classification is AAA.

3.3 Risk measurement

The Company has methods to measure the effectiveness and efficiency of risk strategies, both prospectively and retrospectively. Those methods are consistent with the risk management profile of the Group.

Note 4 - Changes in accounting estimates and policies (Uniformity)

4.1 Changes in accounting estimates

There are no changes in accounting estimates as of the closing date of the consolidated financial statements.

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Note 4 - Changes in accounting estimates and policies (Uniformity) (continued)

4.2 Changes in accounting policies

As of September 30, 2011, the Company’s consolidated financial statements present no changes in accounting policies or estimates compared to the prior period or the transaction date.

The consolidated classified statements of financial position as of September 30, 2011 and as of December 31,2010 and the statements of income, comprehensive income, equity and cash flows for the periods ended September 30, 2011 and September 30, 2010, have been prepared in accordance with IFRS, and accounting principles and criteria have been applied consistently.

Note 5 - Cash and cash equivalents

5.1 Types of cash and cash equivalents

As of September 30, 2011 and December 31, 2010, cash and cash equivalents are detailed as follows:

	09.30.2011		12.31.2010
Cash and cash equivalents	ThUS$		ThUS$
Cash on hand		146		83
Bank balances		28,700		24,267
Short-term time deposits		246,879		375,057
Other cash and cash equivalents		171,681		125,245
Cash and cash equivalents		447,406		524,652

5.2 Other cash and cash equivalents

As of September 30, 2011, and December 31, 2010, other cash and cash equivalents relate to mutual fund units for investments made in:

Institution	09.30.2011 ThUS$		12.31.2010 ThUS$
Legg Mason Western Asset Institutional Liquid Reserves		57,290		52,576
BlackRock Institutional cash series Plc		56,413		36,712
JP Morgan US dollar Liquidity Fund Institutional		57,978		35,957
Total		171,681		125,245

These other cash equivalents are highly liquid fund manager accounts that are basically invested in short-term fixed rate notes in the U.S. market.

48

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

 

Note 5 - Cash and cash equivalents (continued)

5.3 Information on cash and cash equivalents by currency

Cash and cash equivalents are classified by currency as follows:

	09.30.2011		12.31.2010
Original currency	ThUS$		ThUS$
Chilean Peso		93,182		331,011
US Dollar		340,143		176,703
Euro		6,988		6,784
Mexican Peso		361		102
South African Rand		5,166		8,776
Japanese Yen		1,268		1,192
Peruvian Sol		57		13
Brazilian Real		18		21
Chinese Yuan		214		40
Indonesian rupee		5		5
Pound sterling		4		5
Totals		447,406		524,652

5.4 Amount of significant restricted (unavailable) cash balances

Cash on hand and in current bank accounts are available resources, and their carrying value is equal to their fair value.

As of September 30, 2011 and December 31, 2010, the Company has no significant cash balances with any type of restriction.

49

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 5 - Cash and Cash Equivalents (continued)

5.5 Detail of time deposits

Cash and cash equivalents in time deposits at each year-end are detailed as follows:

	Type of						Principal		Interest accrued to-date		09.30.2011		12.31.2010
Receiver of the deposit	Deposit	Original Currency	Interest rate		Interest rate	Expiration date	ThUS$		ThUS		ThUS$		ThUS$
Banco Crédito e Inversiones	Fixed term	US Dollar		0.50	8/29/2011	11/23/2011		30,000		13		30,013		26,401
Banco Crédito e Inversiones	Fixed term	US Dollar		0.39	9/22/2011	11/28/2011		5,000		-		5,000		4,168
Banco Crédito e Inversiones	Fixed term	Chilean pesos		0.47	9/14/2011	11/22/2011		10,062		25		10,087		6,738
Banco Crédito e Inversiones	Fixed term	Chilean pesos		0.44	9/23/2011	10/6/2011		2,492		3		2,495		10,574
Banco Crédito e Inversiones	-	-		-	-	-		-		-		-		10,150
Banco Crédito e Inversiones	-	-		-	-	-		-		-		-		10,355
Banco de Chile	Fixed term	US Dollar		0.55	9/21/2011	11/22/2011		10,107		2		10,109		20,781
Banco de Chile	Fixed term	Chilean pesos		0.51	7/25/2011	10/21/2011		18,105		207		18,312		16,056
Banco de Chile	-	-		-	-	-		-		-		-		15,832
Banco de Chile	-	-		-	-	-		-		-		-		20,962
Banco de Chile	-	-		-	-	-		-		-		-		7,271
Banco de Chile	-	-		-	-	-		-		-		-		20,306
Banco de Chile	-	-		-	-	-		-		-		-		1,667
Banco Estado	Fixed term	US Dollar		0.72	9/20/2011	11/29/2011		20,232		4		20,236		17,001
Banco Estado	Fixed term	Chilean pesos		3.90	9/06/2011	11/9/2011		3,920		10		3,930		-
Banco Santander-Santiago	Fixed term	US Dollar		0.45	9/22/2011	11/28/2011		15,563		1		15,564		10,499
Banco Santander-Santiago	Fixed term	US Dollar		1.16	9/29/2011	11/29/2011		20,000		1		20,001		15,528
Banco Santander-Santiago	Fixed term	US Dollar		0.40	9/30/2011	10/07/2011		10,000		-		10,000		20,897
Banco Santander-Santiago	Fixed term	Chilean pesos		2.85	9/12/2011	12/02/2011		1,394		2		1,396		31,752
Banco Santander-Santiago	Fixed term	Chilean pesos		2.85	9/12/2011	12/01/2011		11,698		17		11,715		6,251
Banco Santander-Santiago	Fixed term	Chilean pesos		2.80	9/13/2011	12/02/2011		8,048		11		8,059		3,200
Banco Santander-Santiago	Fixed term	Chilean pesos		2.83	9/14/2011	12/02/2011		3,650		5		3,655		20,009
Banco Security	Fixed term	US Dollar		0.50	8/30/2011	11/23/2011		15,271		7		15,278		16,014
Banco Security	-	-		-	-	-		-		-		-		7,017
Citibank New – York	Overnight	US Dollar		0.01	9/30/2011	10/03/2011		794		-		794		557

50

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 5 - Cash and Cash Equivalents (continued)

5.5 Detail of time deposits (continued)

Cash and cash equivalents in time deposits at each year-end are detailed as follows:

							Principal		Interest accrued		09.30.2011		12.31.2010
Receiver of the deposit	Type of Deposit	Original Currency	Interest rate		Placement date	Expiration date	ThUS$		to-date ThUS$		ThUS$		ThUS$
Citibank New - York	Overnight	USD Dollar		0.01	9/30/2011	10/03/2011		137		-		137		-
Citibank New - York	Overnight	USD Dollar		0.01	9/30/2011	10/03/2011		1,137		-		1,137		-
Citibank New - York	Overnight	USD Dollar		0.00	9/30/2011	10/03/2011		1,047		-		1,047		-
Corpbanca	Fixed term	USD Dollar		1.15	9/29/2011	11/29/2011		25,000		1		25,001		15,556
Corpbanca	Fixed term	Chilean pesos		0.52	7/20/2011	10/18/2011		18,047		225		18,272		5,786
Corpbanca	Fixed term	Chilean pesos		0.49	9/06/2011	11/22/2011		10,805		42		10,847		4,060
Corpbanca	-	-		-	-	-		-		-		-		8,786
IDBI Bank	Fixed term	Indian rupee		-	9/30/2011	10/31/2011		2		-		2		3
Scotiabank Sud Americano	Fixed term	Chilean pesos		3.50	9/08/2011	10/17/2011		3,784		8		3,792		20,880
Total												246,879		375,057

51

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Nota 6 - Inventory

The composition of inventory is detailed as follows:

Type of inventory	09.30.2011 ThUS$		12.31.2010 ThUS$
Raw materials		4,760		7,120
Supplies for production		29,631		21,398
Products-in-progress		336,937		291,536
Finished products		336,187		285,047
Total		707,515		605,101

Inventory reserves recognized as of September 30, 2011 amount to ThUS$67,344, as of December 31, 2010 amounted to ThUS$63,597. Inventory reserves have been made based on a technical study that covers the different variables affecting products in stock (density, humidity, among others.) Additionally, reserves have been recognized for lower prices on the sale of products and inventory difference.

As of September 30, 2011 the sum registered as cost of sale related to inventory in the statement of income amounts to ThUS$799,139 and as of September 30, 2010 to ThUS$723,247.

The breakdowns of inventory reserves are detailed as follows:

Type of Inventory	09.30.2011 ThUS$		12.31.2010 ThUS$
Raw materials reserves		593		593
Supplies for production reserves		500		500
Products-in-progress reserves		36,069		43,115
Finished products reserves		23,459		19,389
Total		60,621		63,597

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

Note 7 - Related Party Disclosures

7.1 Related party disclosures

Balances pending at each period-end are not guaranteed, accrue no interest and are settled in cash. No guarantees have been delivered or received for trade and other accounts receivable from related parties or trade and other accounts payable to related parties. For the period ended September 30, 2011, the Company has not recorded any impairment in accounts receivable related to amounts owed by related parties. This evaluation is conducted every year through an examination of the financial position of the related party in the market in which it operates.

52

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 7 - Related Party Disclosures (continued)

7.2 Relationships between the parent company and the entity

According to the Company’s by-laws., no shareholder can own more than 32% of the Company’s voting shares.

Sociedad de Inversiones Pampa Calichera S.A. and Global Mining Investments (Chile) S.A., collectively the Pampa Group, are the owners of a number of shares that are equivalent to 27.41% of the current total amount of shares issued, subscribed and paid of the Company. In addition, Kowa Company Ltd., Inversiones La Esperanza (Chile) Limitada, Kochi S.A. and La Esperanza Delaware Corporation, collectively the Kowa Group, are the owners of a number of shares equivalent to 2.08% of the total amount of shares of SQM S.A. issued, subscribed and paid.

The Pampa Group and the Kowa Group have informed the Company, the Chilean SVS and the pertinent stock exchanges in Chile and abroad that they are not and have never been related parties.. In addition, this assertion is regardless of the fact that both Groups on December 21, 2006 subscribed to a joint venture agreement with respect to those shares. Consequently, such parties assert that the Pampa Group, by itself, does not concentrate more than 32% of the voting rights capital of the Company, and the Kowa Group does not concentrate by itself more than 32% of the voting rights capital of SQM S.A.

Detail of effective concentration

Taxpayer ID	Company name	Ownership percentage %
96.511.530-7	Sociedad de Inversiones Pampa Calichera S.A.		21.66
96.863.960-9	Global Mining Investments (Chile) S.A.		3.34
76.165.311-5	Potasios de Chile S.A.		2.41
Total Pampa Group			27.41
79.798.650-k	Inversiones la Esperanza (Chile) Ltda.		1.40
59.046.730-8	Kowa Co Ltd.		0.30
96.518.570-4	Kochi S.A.		0.29
59.023.690-k	La Esperanza Delaware Corporation		0.09
Total Kowa Group			2.08

7.3 Intermediate parent company and companies controlled by SQM S.A. that publicly issue financial statements

The following intermediate parent companies prepare public financial statements:

Soquimich Comercial S.A.

53

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 7 - Related Party Disclosures (continued)

7.4 Detailed identification of the link between the parent company and the subsidiary as of September 30, 2011 and December 31, 2010

Subsidiary	Interest percentage in subsidiary 09.30.2011 and 12.31.2010
	Direct %		Indirect %		Total %
Comercial Hydro S.A.		0.0000		60.6383		60.6383
SQM Potasio S.A.		99.9974		0.0000		99.9974
SQM Nitratos S.A.		99.9999		0.0001		100.0000
Ajay SQM Chile S.A.		51.0000		0.0000		51.0000
SQMC Internacional Ltda.		0.0000		60.6381		60.6381
SQM Industrial S.A.		99.0470		0.9530		100 .0000
Isapre Norte Grande Ltda.		1.0000		99.0000		100.0000
Almacenes y Depósitos Ltda.		1.0000		99.0000		100.0000
Serv. Integrales de Tránsitos y Transferencias S.A.		0.0003		99.9997		100.0000
Soquimich Comercial S.A.		0.0000		60.6383		60.6383
SQM Salar S.A.		18.1800		81.8200		100.0000
Minera Nueva Victoria S.A.		99.0000		1.0000		100.0000
Proinsa Ltda.		0.0000		60.5800		60.5800
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.		0.0000		100.0000		100.0000
Exploraciones Mineras S.A.		0.2691		99.7309		100.0000
Agrorama Callegari Ltda.		0.0000		42.4468		42.4468
Agrorama S.A. (*)		0.0000		60.6377		60.6377
Nitratos Naturais Do Chile Ltda.		0.0000		100.0000		100.0000
Nitrate Corporation of Chile Ltd.		0.0000		100.0000		100.0000
SQM North America Corporation.		40.0000		60.0000		100.0000
SQM Europe N.V.		0.8600		99.1400		100.0000
Soquimich SRL Argentina		0.0000		100.0000		100.0000
Soquimich European Holding B.V.		0.0000		100.0000		100.0000
SQM Corporation N.V.		0.0002		99.9998		100.0000

(*) This subsidiary was constituted on April 07, 2011.

54

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 7 - Related Party Disclosures (continued)

7.4 Detailed identification of the link between the parent company and the subsidiary as of September 30, 2011 and December 31, 2010 (continued)

Subsidiary	Interest percentage in subsidiary 09.30.2011 and 12.31.2010
	Direct %		Indirect %		Total %
SQI Corporation N.V.		0.0159		99.9841		100.0000
SQM Comercial de México S.A. de C.V.		0.0013		99.9987		100.0000
North American Trading Co.		0.0000		100.0000		100.0000
Administración y Servicios Santiago S.A. de C.V.		0.0000		100.0000		100.0000
SQM Perú S.A.		0.9800		99.0200		100.0000
SQM Ecuador S.A.		0.0040		99.9960		100.0000
SQM Nitratos México S.A.		0.0000		51.0000		51.0000
SQMC Holding Corporation L.L.P.		0.1000		99.9000		100.0000
SQM Investment Corporation N.V.		1.0000		99.0000		100.0000
SQM Brasil Limitada.		2.7900		97.2100		100.0000
SQM France S.A.		0.0000		100.0000		100.0000
SQM Japan Co Ltd.		1.0000		99.0000		100.0000
Royal Seed Trading A.V.V.		1.6700		98.3300		100.0000
SQM Oceania Pty Limited.		0.0000		100.0000		100.0000
Rs Agro Chemical Trading A.V.V.		98.3333		1.6667		100.0000
SQM Indonesia S.A.		0.0000		80.0000		80 .0000
SQM Virginia L.L.C.		0.0000		100.0000		100.0000
SQM Venezuela S.A.		0.0000		100.0000		100.0000
SQM Italia SRL		0.0000		100.0000		100.0000
Comercial Caiman Internacional S.A.		0.0000		100.0000		100.0000
SQM Africa Pty.Ltd.		0.0000		100.0000		100.0000
SQM Lithium Specialties LLP.		0.0000		100.0000		100.0000
Fertilizantes Naturales S.A.(**)		0.0000		100.0000		100.0000
Iodine Minera B.V.		0.0000		100.0000		100.0000
SQM Agro India Pvt. Ltd.		0.0000		100.0000		100.0000
SQM Beijin Comercial Co. Ltd.		0.0000		100.0000		100.0000

(**) At December 31, 2010 the share held in Fertilizantes Naturales S.A. was 66.75%.

7.5 Detail of related parties and transactions with related parties

Transactions between the parent company and its subsidiaries are part of the Company's common transactions.  In addition, these have been eliminated in consolidation and are not detailed in this note.

55

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 7 - Related Party Disclosures (continued)

7.5 Detail of related parties and transactions with related parties (continued)

Taxpayer ID	Company	Relationship	Original country	Transaction	09.30.2011 ThUS$		09.30.2010 ThUS$
Foreign	Doktor Tarsa Tarim Sanayi As	Associate	Turkey	Product Sales		20,431		9,939
Foreign	Doktor Tarsa Tarim Sanayi As	Associate	Turkey	Dividends		33		-
Foreign	Ajay Europe S.A.R.L.	Associate	France	Product Sales		19,606		16,827
Foreign	Ajay Europe S.A.R.L.	Associate	France	Dividends		11		118
Foreign	Ajay North America LLC.	Associate	United States	Product Sales		35,625		27,130
Foreign	Ajay North America LLC.	Associate	United States	Dividends		268		701
Foreign	Abu Dhabi Fertilizer Industries WWL	Associate	United Arab Emirates	Product Sales		5,900		9,202
Foreign	Abu Dhabi Fertilizer Industries WWL	Associate	United Arab Emirates	Dividends		-		525
Foreign	Kowa Company Ltd.	Jointly-controlled entity	Japan	Product Sales		94,875		67,529
Foreign	NU3 B.V.	Associate	The Netherlands	Product Sales		12,548		10,323
Foreign	NU3 B.V.	Associate	The Netherlands	Services Sales		81		76
Foreign	NU3 N.V.	Associate	Belgium	Product Sales		8,386		10,283
Foreign	SQM Vitas Brasil	Joint venture	Brazil	Product Sales		34,454		-
Foreign	SQM Vitas Perú	Joint venture	Peru	Product Sales		10,775		-
Foreign	SQM Vitas Perú	Joint venture	Peru	Sales of fixed assets		16		-

56

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 7 - Related Party Disclosures (continued)

7.6 Trade and other accounts receivable from related parties, current

					09.30.2011		12.31.2010
Taxpayer ID	Company	Relationship	Country	Currency	ThUS$		ThUS$
77.557.430-5	Sales de Magnesio Ltda.	Associate	Chile	Chilean peso		94		106
96.511.530-7	Soc.de Inversiones Pampa Calichera	Jointly-controlled entity	Chile	US Dollar		8		8
79.049.778-9	Callegari Agrícola S.A.	Other related party	Chile	Chilean peso		217		6
Foreign	Doktor Tarsa Tarim Sanayi AS	Associate	Turkey	US Dollar		4,466		-
Foreign	Nutrisi Holding N.V.	Associate	Belgium	Euro		1,647		1,618
Foreign	Ajay Europe S.A.R. L.	Associate	France	US Dollar		3,821		2,043
Foreign	Ajay North America LLC.	Associate	United states	US Dollar		8,895		2,666
Foreign	Abu Dhabi Fertilizer Industries WWL	Associate	United Arab Emirates	US Dollar		3,893		4,517
Foreign	NU3 B.V.	Associate	The Netherlands	Euro		485		1,083
Foreign	NU3 N.V.	Associate	Belgium	Euro		265		-
Foreign	Misr Speciality Fertilizers	Associate	Egypt	US Dollar		-		335
Foreign	Kowa Company Ltd.	Jointly-controlled entity	Japan	US Dollar		32,825		23,134
Foreign	SQM Thailand Co. Ltd.	Associate	Thailand	US Dollar		1,051		656
Foreign	Qingdao SQM-Star Corp	Joint venture	China	US Dollar		74		-
Foreign	SQM Vitas Brasil Agroindustria	Joint venture	Brazil	US Dollar		28,520		-
Foreign	SQM Vitas Perú S.A.C.	Joint venture	Peru	US Dollar		16,210		-
Foreign	SQM Vitas Southerm Africa PTY.	Joint venture	South Africa	US Dollar		353		-
Total						102,824		36,172

57

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 7 - Related Party Disclosures (continued)

7.7 Trade and other accounts payable to related parties, current

					09.30.2011		12.31.2010
Taxpayer ID	Company	Relationship	Country	Currency	ThUS$		ThUS$
Foreign	Doktor Tarsa Tarim Sanayi AS	Associate	Turkey	US Dollar		-		73
Foreign	NU3 N.V.	Associate	Belgium	US Dollar		-		270
Foreign	SQM Vitas	Joint venture	United Arab Emirates	Dirham of the United Arab Emirates		222		2,614
Foreign	Coromandel Fertilizers Limited	Joint venture	India	Rupee		175		581
Total						397		3,538

As of September 30, 2011, and September 30, 2010 there are no allowances for doubtful accounts relating to outstanding balances from transactions with related parties.

58

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 7 - Related Party Disclosures (continued)

7.8 Board of directors and senior management

1) Board of directors

The Company is managed by a Board of Directors which is composed of eight regular directors who are elected for a three-year period. The present Board of Directors was elected by the shareholders at the Ordinary Shareholders' Meeting of April 28, 2011.

As of September 30, 2011, the Company has an Audit Committee made up of three members of the Board of Directors. This Committee performs those duties provided in Article 50 bis of Law No. 18,046.

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

2) Directors’ Compensation

2.1 Compensation for 2011

2.1.1 Board of Directors

Directors’ compensation is detailed as follows:

a) A payment of a monthly fixed gross amount of UF 300 in favor of the Chairman of the Company’s Board of Directors and UF 50 in favor of the seven remaining board members regardless of their attendance at Board meetings or the number of meetings attended.

b) A payment in domestic currency in favor of the Chairman of the Company’s Board of Directors consisting of a variable and gross amount equivalent to 0.35% of total net for the period effectively earned by the Company during fiscal year 2011.

c) A payment in domestic currency in favor of each Company’s directors excluding the Chairman of the Board, consisting of a variable and gross amount equivalent to 0.04% of total net income for  the year effectively earned by the Company during fiscal year 2011.

d) The fixed and variable amounts indicated above will not be subject to any charge between them, and those expressed as a percentage will be paid immediately after the shareholders at the respective Annual General Shareholders’ Meeting of the Company approve the statement of financial position (balance sheet), the financial statements, the annual report, the report by the account inspectors and the report of external auditors for the fiscal year ending December 31, 2011.

e) Therefore, the remunerations and profit sharing paid to members of the Board of Directors and Audit Committee during 2011 amount to ThUS$ 245.

59

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 7 - Related Party Disclosures (continued)

2) Directors’ Compensation

2.1.2 Audit Committee

The remuneration of the Audit Committee is detailed as follows:

a) A payment of a monthly, fixed and gross amount of UF 17 in favor of each of the three Directors who are a part of the Company’s Audit Committee regardless of the number of meetings conducted during the respective month.

b) A payment in domestic currency and in favor of each of the three Directors of a variable and gross amount equivalent to 0.013% of the Company’s total net income for the  year effectively earned by the Company during fiscal year 2011.

2.2 Compensation for 2010

2.2.1 Directors’ Compensation and Committee

The remuneration of Directors is composed of:

f) A payment of a monthly fixed gross amount of UF 300 in favor of the Chairman of the Company’s Board of Directors and UF 50 in favor of the seven remaining board members regardless of their attendance at Board meetings or the number of meetings attended during the related month.

g) A payment in domestic currency in favor of the Chairman of the Company’s Board of Directors consisting of a variable and gross amount equivalent to 0.35% of total net income for the period effectively earned by the Company during fiscal year 2010.

h) A payment in domestic currency in favor of each Company’s directors excluding the Chairman of the Board, consisting of a variable and gross amount equivalent to 0.04% of total net income for  the year effectively earned by the Company during fiscal year 2010.

i) The fixed and variable amounts indicated above will not be subject to any charge between them, and those expressed as a percentage will be paid immediately after the shareholders at the respective Annual General Shareholders’ Meeting of the Company approve the statement of financial position (balance sheet), the financial statements, the annual report, the report by the account inspectors and the report of external auditors for the fiscal year ending December 31, 2010.

j) Therefore, the remunerations and profit sharing paid to members of the Board of Directors and Audit Committee during 2010 amount to ThUS$ 2,869.

2.2.2 Audit Committee

The remuneration of Directors Committee is composed of:

c) A payment of a monthly, fixed and gross amount of UF 17 in favor of each of the three Directors who are a part of the Company’s Audit Committee regardless of the number of meetings conducted during the respective month.

60

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 7 - Related Party Disclosures (continued)

2.2.2 Directors Committee (continued)

d) A payment in domestic currency and in favor of each of the three Directors of a variable and gross amount equivalent to 0.013% of the Company’s total net income for the  year effectively earned by the Company during fiscal year 2010.

3)  No guarantees have been constituted in favor of the Directors.

4) Senior Management remuneration

As of September 30, 2011, the global remuneration paid to the 114 main executives amounts to ThUS$ 17,397 (ThUS$ 21,809 as of December 31, 2010). This includes monthly fixed salary and variable performance bonuses.

The Company has a bonuses intermediate and bi-intermediate plan for compliance target and level of individual contribution to the Company’s results. These benefits are structured in a minimum and maximum of gross remunerations which are paid once a year or every two years.

5) Additionally, the Company has retention bonuses for the Company’s executives. The amount of these bonuses is linked to the price of the Company’s share and is payable in cash between 2011 and 2016 (See Note 16).

6) No guarantees have been constituted in favor of the Company’s management.

7) The Company’s Managers and Directors do not receive or have not received any benefit during the period ended as of September 30, 2011 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.

8) One of the Company’s Board of Directors is member of the Ultramar Group. During the period ended September 30, 2011, the amount of operations with this Group is approximately ThUS$9,462 (ThUS$ 11,532 as of December 31, 2010).

9) The Company currently maintains financial operations with BCI Bank (Banco de Crédito e Inversiones). A member of the Company’s Board of Directors also belongs to the Board of Directors of BCI Bank.

61

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial Instruments

Financial assets are detailed as follows:

8.1 Types of other financial assets

Types of other financial assets	09.30.2011 ThUS$		12.31.2010 ThUS$
Other current financial assets (1)		153,013		69,818
Derivative instruments (2)		37,176		1,363
Hedging assets, current		16,914		4,997
Total other current financial assets		207,103		76,178
Other non-current financial assets (3)		117		118
Hedging assets, non-current		31,250		92,556
Total other non-current financial assets		31,367		92,674

(1)       Relates to time deposits with purchased maturities greater than 90 days.

(2)       Relate to forwards and options that were not classified as hedging instruments. (See note 8.3)

(3)       Relate to guarantees delivered for the lease of offices and investments in Sociedad Garantizadora de Pensiones (ownership interest of 3 %.)

62

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial Instruments (continued)

8.1 Types of other financial assets (continued)

Other financial assets, current

Financial Institution	09.30.2011 ThUS$		12.31.2010 ThUS$
Banco Santander		22,730		-
BBVA		13,945		-
HSBC		8,866		-
Banco de Crédito e Inversiones		17,387		36,251
Banco de Chile		71,262		10,333
Corpbanca		18,823		18,031
Banco Itau Chile		-		5,203
Total		153,013		69,818

8.2 Trade and other accounts receivable

a) Trade and other accounts receivable, net:

Description of the type of trade and other accounts receivable, net:	09.30.2011 ThUS$		12.31.2010 ThUS$
Trade accounts receivable		434,067		350,720
Other accounts receivable		22,358		25,225
Trade and other accounts receivable current, net		456,425		375,945
Trade and other accounts receivable non-current, net		913		1,102
Other accounts receivable		913		1,102
Total		457,338		377,047

b) Trade and other accounts receivable, gross:

Types of trade and other accounts receivable, gross	09.30.2011 ThUS$		12.31.2010 ThUS$
Trade accounts receivable		451,508		367,545
Other accounts receivable		24,351		27,282
Trade and other accounts receivable current, gross		475,859		394,827
Other accounts receivable		913		1,102
Total		476,772		395,929

63

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial Instruments (continued)

8.2 Trade and other accounts receivable (continued)

c) Detail of financial assets past due

Financial assets past due are composed of the following: Trade and other accounts receivable as of September 30, 2011 and December 31, 2010.

							Balances as of 09.30.2011
Financial assets	Past due for less than three months ThUS$		Past due for between three and six months ThUS$		Past due for between six and twelve months ThUS$		Past due for more than twelve months ThUS$		Total ThUS$
Trade and other accounts receivable		38,463		4,665		6,085		11,176		60,389
Total		38,463		4,665		6,085		11,176		60,389

							Balances as of 12.31.2010
Financial assets	Past due for less than three months ThUS$		Past due for between three and six months ThUS$		Past due for between six and twelve months ThUS$		Past due for more than twelve months ThUS$		Total ThUS$
Trade and other accounts receivable		57,804		606		6,976		4,245		69,631
Total		57,804		606		6,976		4,245		69,631

64

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial Instruments (continued)

8.2       Trade and other accounts receivable (continued)

d) Allowance for doubtful accounts

The Company records an allowance for doubtful accounts when in the Company’s management’s opinion, all collection means have been exhausted or there are certain doubts as to the recovery of trade and other accounts receivable.

Financial assets	09.30.2011 ThUS$			12.31.2010 ThUS$
Trade and other accounts receivable		(19,434	)		(18,882	)
Balance		(19,434	)		(18,882	)

Reconciliation of variations in the allowance for doubtful accounts of trade and other accounts receivable.

	09.30.2011 ThUS$			12.31.2010 ThUS$
Opening balance		18,882			17,083
Bad debt expense		2,211			2,028
Write-offs		(871	)		(118	)
Exchange difference		(788	)		(111	)
Total		19,434			18,882

e) Credit risk concentration

Credit risk concentrations with respect to trade receivables are reduced due to the great number of entities included in the Company’s client database and their distribution throughout the world.

65

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial Instruments (continued)

8.2       Trade and other accounts receivable (continued)

The policy of the Company is to request a collateral (such as letters of credit and guarantee clauses or other), and/ or to have insurance for certain accounts as the management deems suitable. Renegotiated debts are not significant and are limited to accounts receivable in Chile.

Trade receivables	09.30.2011 ThUS$			12.31.2010 ThUS$
Gross trade receivable		476,772			395,929
Overdue which are not considered to be impaired		(60,389	)		(69,631	)
Allowance for doubtful accounts		(19,434	)		(18,882	)
Receivables that are neither overdue or considered impaired in value		396,949			307,416

8.3 Assets and Liabilities Coverage

The balance represents derivative instruments measured at fair value which have been classified as hedges from exchange and interest rate risks related to the total obligations relating to bonds of the Company in Chilean pesos and UF. As of September 30, 2011 the nominal value of flows in Cross Currency Swap contracts agreed upon in US dollars amounted to ThUS$ 408,052 as of December 31, 2010 such contracts amounted to ThUS$ 410,618.

Hedging assets	Derivative instruments (CCS)		Effect on profit or loss for the period, derivative Instruments			Hedging reserve in other comprehensive income (equity)			Deferred income tax hedging reserve in equity		Hedging reserve in other comprehensive income (equity)
	ThUS$		ThUS$			ThUS$			ThUS$		ThUS$
September 30, 2011		48,164		(45,511	)		(13,792	)		2,425		(11,367	)
December 31,  2010		97,553		46,936			(11,093	)		1,886		(9,207	)

Liability Coverage	Derivate instruments (IP) ThuS$
September 30,  2011		1.709
December 31,2010		-

66

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial Instruments (continued)

8.3 Assets and Liabilities Coverage (continued)

Balances in the column “Effects on profit or loss”, consider the annual effects of contracts that were in force as of September 30, 2011 and December 31, 2010.

As of September 30, 2011, the Company has hedging assets associated to the Investments Plan amounting to ThUS$ 1,709.

Derivative contract maturities are detailed as follows:

Series	Contract Amount ThUS$		Currency	Expiration Date
C		79,539	UF	12.01.2026
G		33,673	Chilean peso	01.05.2014
H		146,360	UF	01.05.2013
I		56,041	UF	04.01.2014
J		92,440	Chilean peso	04.01.2014

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 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 Chilean pesos and UF. Likewise, hedging contracts are denominated in the same currencies and have the same expiration dates of bond principal payments.

Hedge Accounting

The Company classifies derivative instruments as hedging that may include derivative or implicit derivatives either as fair value hedge derivative instruments, cash flow hedge derivative instruments, or hedge derivative instruments for net investment in a business abroad.

67

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial Instruments (continued)

8.3 Assets and Liabilities Coverage (continued)

(a)  Fair value hedges

Changes in fair values of derivative instruments classified as fair value hedge derivative instruments are accounted for in gains and losses immediately along with any change in the fair value of the covered item that is attributable to the risk that is covered.

The Company documents the relationship between hedge instruments and the covered entry along with the objectives of its risk management and strategy to carry out different hedge transactions. In addition, upon commencement of the period covered and then on a quarterly basis the Company documents whether hedge instruments have been efficient and met the objective to cover market fluctuations for which purpose we use the effectiveness test. A hedge instrument is deemed effective if the effectiveness test result is between 80 to 120%.

The hedge instruments are classified as effective or not effective on the basis of the effectiveness test results. To date, the effectiveness tests have defined them as effective.

(b)  Cash flow hedges

Cash flow hedges cover exposure to the cash flow variations attributable to a risk associated with a specific transaction that is very likely to be executed, that may have material effects on the results of the Company.

8.4 Financial liabilities

As of September 30, 2011, and December 31, 2010, financial liabilities are detailed as follows:

Types of interest-bearing loans	09.30.2011 ThUS$		12.31.2010 ThUS$
Current interest-bearing loans
Bank loans (a)		241,986		150,958
Derivative instruments (8.6)		4,888		18,353
Current hedging liabilities		1,709		-
Unsecured obligations (b)		19,810		18,244
Total		268,393		187,555
Non-current interest-bearing loans
Bank loans (c)		189,821		140,000
Non-current hedging liabilities		-		-
Unsecured obligations (d)		904,240		950,188
Total		1,094,061		1,090,188

68

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial instruments (continued)

8.4 Financial liabilities (continued)

a)   Current bank loans:

As of September 30, 2011 and December 31, 2010, current bank loans are detailed as follows:

Debtor				Creditor													09.30.2011
Taxpayer ID	Subsidiary	Country	Taxpayer ID	Financial institution	Country	Currency	Type of repayment	Effective rate			Nominal rate			Up to 90 days ThUS$			Current maturities More than 90 days less than 1 year ThUS$		Total ThUS$
93.007.000-9	SQM.S.A.	Chile	97.032.000-8	Banco BBVA Chile	United States	USD	Maturity date		0.9975	%		0.9975	%		-			20,043		20,043
97.007.000-9	SQM.S.A.	Chile	97.030.000-7	Banco Estado	United States	USD	Maturity date		0.9465	%		0.9465	%		-			20,040		20,040
93.007.000-9	SQM S.A.	Chile	97.004.000-5	Banco de Chile	Chile	USD	Maturity date		0.6268	%		0.6268	%		20,034			-		20,034
93.007.000-9	SQM S.A.	Chile	Foreign	Banco Estado NY Branch	United States	USD	Maturity date		2.96	%		2.5318	%		1,516			-		1,516
79.626.800-K	SQM Salar S.A.	Chile	97.303.000-7	Banco Estado	Chile	USD	Maturity date		1.2375	%		1.2375	%		-			20,051		20,051
79.626.800-K	SQM Salar S.A.	Chile	97.004.000-5	Banco de  Chile	Chile	USD	Maturity date		1.0293	%		1.0293	%		-			20,033		20,033
79.626.800-K	SQM Salar S.A.	Chile	97.018.000-1	Scotiabank Sud Americano	Chile	USD	Maturity date		1.07	%		0.75	%		10			20,000		20,010
Foreign	Royal Seed Trading Corporation A.V.V.	Aruba	Foreign	ING Capital LLC	United States	USD	Maturity date		2.42	%		0.7375	%		80,200			-		80,200
Foreign	Royal Seed Trading Corporation A.V.V.	Aruba	Foreign	Scotiabank  & Trust (Cayman) Ltd.	Cayman Islands	USD	Bi-annually		1.53	%		1.3541	%		-			34		34
79.947.100-0	SQM  Industrial S.A.	Chile	97.032.000-8	Banco BBVA Chile	Chile	USD	Maturity date		0.7161	%		0.7161	%		20,023			-		20,023
79.947.100-0	SQM Industrial S.A.	Chile	97.018.000-1	Scotiabank Sud Americano	Chile	USD	Maturity date		1.14			0.70			15			20,000		20,015
Totales															121,798			120,201		241,999
Costos obtención prestamos															(13	)		-		(13	)
Total															121,785			120,201		241,986

69

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial instruments (continued)

8.4 Financial liabilities (continued)

 

Debtor				Creditor												12.31.2010
Taxpayer ID	Subsidiary	Country	Taxpayer ID	Financial institution	Country	Currency	Type of repayment	Effective rate			Nominal rate			Up to 90 days ThUS$		Current maturities More than 90 days less than 1 year ThUS$			Total ThUS$
93.007.000-9	SQM S.A.	Chile	Foreign	Banco Estado NY Branch	United States	USD	Maturity date		3.93	%		3.77	%		20,214		-			20,214
93.007.000-9	SQM S.A.	Chile	Foreign	Banco Estado NY Branch	United States	USD	Maturity  date		3.93	%		3.77	%		10,104		-			10,104
93.007.000-9	SQM S.A.	Chile	Foreign	Banco Estado NY Branch	United States	USD	Maturity  date		2.55	%		2.55	%		-		625			625
93.007.000-9	SQM S.A.	Chile	97.032.000-8	BBVA Banco Bilbao Vizcaya Argentaria	Chile	USD	Maturity date		0.64	%		0.64	%		20,030		-			20,030
93.007.000-9	SQM S.A.	Chile	97.032.000-8	BBVA Banco Bilbao Vizcaya Argentaria	Chile	USD	Maturity date		0.26	%		0.26	%		20,000		-			20,000
Foreign	Royal Seed Trading Corporation A.V.V.	Aruba	Foreign	ING Capital LLC	United States	USD	Maturity date		1.22	%		0.80	%		-		80,055			80,055
Total															70,348		80,680			151,028
Borrowing costs															-		(70	)		(70	)
Total															70,348		80,610			150,958

 

70

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial instruments (continued)

8.4 Financial liabilities (continued)

b) Unsecured obligations, current:

Bonds

Debtor														Periodicity					09.30.2011
Tax ID	Subsidiary	Country	Placement in Chile or abroad	Number of registration or ID of the instrument	Series	Placed nominal current value	Currency or indexed unit	Effective rate			Nominal rate			Interest payment	Amortization payment	Up to 90 days ThUS$			Current due dates days less than 1 year ThUS$			Total ThS$
93.007.000-9	SQM S.A	Chile	Foreign	184	Single	-	US$		7.16	%		6.125	%	Bi-annually	At maturity		5,623			-			5,623
93.007.000-9	SQM S.A	Chile	Foreign	184	Single	-	US$		6.15	%		5.50	%	Bi-annually	At maturity		6,086			-			6,086
93.007.000-9	SQM S.A	Chile	Chile	446	C	150.000	UF		6.84	%		4.00	%	Bi-annually	Bi-annually		4,450			3,165			7,615
93.007.000-9	SQM S.A	Chile	Chile	563	G	-	Ch$		6.49	%		7.00	%	Bi-annually	At maturity		-			654			654
93.007.000-9	SQM S.A	Chile	Chile	564	H	-	UF		6.35	%		4.90	%	Bi-annually	Bi-annually		-			1,932			1,932
93.007.000-9	SQM S.A	Chile	Chile	563	I	-	UF		6.73	%		3.00	%	Bi-annually	At maturity		-			-			-
93.007.000-9	SQM S.A	Chile	Chile	563	J	-	Ch$		6.29	%		5.50	%	Bi-annually	At maturity		-			-			-
				Total													16,159			5,751			21,910
				Bond issue costs													(527	)		(1.573	)		(2,100	)
				Total													15,632			4,178			19,810

Effective rates of bonds in Chilean pesos and UF are expressed and calculated in U.S. dollars based on the flows expected in Cross Currency Swap Agreements.

71

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial instruments (continued)

8.4 Financial liabilities (continued)

Debtor															Periodicity					12.31.2010
Tax ID	Subsidiary	Country	Placement in Chile or abroad	Number of registration or ID of the instrument	Series	Placed nominal current value		Currency or indexed unit	Effective rate			Nominal rate			Interest payment	Amortization payment	Up to 90 days ThUS$			Current due dates More than 90 days less than 1 year ThUS$			Total ThUS$
93.007.000-9	SQM S.A	Chile	Foreign		Single		-	US$		6.69	%		6.13	%	Bi-annually	At maturity		-			2,591			2,591
93.007.000-9	SQM S.A	Chile	Foreign		Single		-	US$		5.93	%		5.50	%	Bi-annually	At maturity		-			2,682			2,682
93.007.000-9	SQM S.A	Chile	Chile	446	C		150,000	UF		6.56	%		4.00	%	Bi-annually	Bi-annually		-			7,237			7,237
93.007.000-9	SQM S.A	Chile	Chile	564	H		-	UF		6.29	%		4.90	%	Bi-annually	Bi-annually		4,319			-			4,319
93.007.000-9	SQM S.A	Chile	Chile	563	G		-	Ch$		7.53	%		7.00	%	Bi-annually	At maturity		1,502			-			1,502
93.007.000-9	SQM S.A	Chile	Chile	563	I		-	UF		5.36	%		3.00	%	Bi-annually	At maturity		-			512			512
93.007.000-9	SQM S.A	Chile	Chile	563	J		-	Ch$		6.64	%		5.50	%	Bi-annually	At maturity		-			1,508			1,508
				Total														5,821			14,530			20,351
				Bond issue cost														(270	)		(1,837	)		(2,107	)
				Total														5,551			12,693			18,244

 

72

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial instruments (continued)

8.4 Financial liabilities (continued)

c) Types of non-current interest-bearing loans

Non-current interest-bearing loans as of September 30, 2011 and December 31, 2010 are detailed as follows:

Non-current interest-bearing bank loans

Debtor				Creditor										09.30.2011 Years to maturity
Taxpayer ID	Subsidiary	Country	Taxpayer ID	Financial institution	Country	Currency	Amortization period	Effective rate			Nominal rate			1 to 3 years ThUS$			3 to 5 years ThUS$		More than 5 years ThUS$		Total ThUS$
93.007.000-9	SQM S.A.	Chile	Foreign	Banco Estado NY Branch	United States	USD	At maturity		2.96	%		2.5318	%		-			140,000		-		140,000
Foreign	Royal Seed Trading Corporation A.V.V.	Aruba	Foreign	Scotiabank  & Trust (Cayman) Ltd.	Cayman Islands	USD	At maturity		1.53			1.35			50,000			-		-		50,000
Total															50,000			140,000		-		190,000
Borrowing costs															(179	)		-		-		(179	)
Total															49,821			140,000		-		189,821

Debtor				Creditor										12.31.2010 Years to maturity
Taxpayer ID	Subsidiary	Country	Taxpayer ID	Financial institution	Country	Currency	Amortization period	Effective rate			Nominal rate			1 to 3 years ThUS$		3 to 5 years ThUS$		More than 5 years ThUS$		Total ThUS$
93.007.000-9	SQM S.A.	Chile	Foreign	Banco Estado NY Branch	United States	USD	At maturity		2.55	%		2.55	%		-		140,000		-		140,000
Total															-		140,000		-		140,000
Borrowing costs															-		-		-		-
Total															-		140,000		-		140,000

73

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial instruments (continued)

8.4 Financial liabilities (continued)

d) Non-current unsecured interest-bearing bonds

The breakdown of non-current unsecured interest-bearing bonds as of September 30, 2011 and December 31, 2010 is detailed as follows:

Debtor				Number of											Periodicity		09.30.2011 Non-current due dates
Tax ID	Subsidiary	Country	Placement in Chile or abroad	registration or ID of the instrument	Series	Placed nominal current amount		Currency or indexed unit	Effective rate			Nominal rate			Interest payment	Amortization payment	Over 1 to 3 ThUS$			Over 3 to 5 ThUS$			Over 5 ThUS$			Total ThUS$
93.007.000-9	SQM S.A	Chile	Foreign		Single		200,000,000	US$		7.15	%		6.13	%	Bi-annually	At maturity		-			200,000			-			200,000
93,007,000-9	SQM S,A,	Chile	Foreign		single		250,000,000	US$		6.15	%		5.50	%	Bi-annually	At maturity		-			-			250,000			250,000
93,007,000-9	SQM S,A	Chile	Chile	446	C		2,175,000	UF		6.84	%		4.00	%	Bi-annually	Bi-annually		12,659			12,659			66,464			91,782
93,007,000-9	SQM S,A	Chile	Chile	564	H		4,000,000	UF		6.35	%		4.90	%	Bi-annually	Bi-annually		-			-			168.793			168,793
93,007,000-9	SQM S,A	Chile	Chile	563	G		21,000,000,000	$		6.49	%		7.00	%	Bi-annually	At maturity		40,257						-			40,257
93,007,000-9	SQM S,A	Chile	Chile	563	I		1,500,000	UF		6.73	%		3.00	%	Bi-annually	At maturity		63,298			-			-			63,298
93,007,000-9	SQM S,A	Chile	Chilel	563	J		52,000,000,000	$		6.29			5.50	%	Bi-annually	At maturity		99,684			-			-			99,684
				Total														215,898			212,659			485,257			913,814
				Bond issue costs														(1,967	)		(1,403	)		(6,204	)		(9,574	)
				Total														213,931			211,256			479,053			904,240

Debtor				Number of											Periodicity		12.31.2011 Non-current due dates
Tax ID	Subsidiary	Country	Placement in Chile or abroad	registration or ID of the instrument	Series	Placed nominal current amount		Currency or indexed unit	Effective rate			Nominal rate			Interest payment	Amortization payment	Over 1 to 3 ThUS$			Over 3 to 5 ThUS$			Over 5 ThUS$			Total ThUS$
93,007,000-9	SQM S,A	Chile	Foreign		Single		200,000,000	US$		6.69	%		6.13	%	Bi-annually	At maturity		-			-			200,000			200,000
93,007,000-9	SQM S,A,	Chile	Foreign		single		250,000,000	US$		5.93	%		5.50	%	Bi-annually	At maturity		-			-			250,000			250,000
93,007,000-9	SQM S,A	Chile	Chile	446	C		2,325,000	UF		6.56	%		4.00	%	Bi-annually	Bi-annually		13,755			13,755			75,654			103,164
93,007,000-9	SQM S,A	Chile	Chile	564	H		4,000,000	UF		6.29	%		4.90	%	Bi-annually	Bi-annually		-			-			183,402			183,402
93,007,000-9	SQM S,A	Chile	Chile	563	G		21,000,000,000	Ch$		7.53	%		7.00	%	Bi-annually	At maturity		-			44,877			-			44,877
93,007,000-9	SQM S,A	Chile	Chile	563	I		1,500,000	UF		5.36	%		3.00	%	Bi-annually	At maturity		-			68,776			-			68,776
93,007,000-9	SQM S,A	Chile	Chile	563	J		52,000,000,000	Ch$		6.64	%		5.50	%	Bi-annually	At maturity					111,124			-			111,124
				Total														13,755			238,532			709,056			961,343
				Bond issue costs														(682	)		(2,670	)		(7,803	)		(11,155	)
				Total														13,073			235,862			701,253			950,188

74

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial instruments (continued)

8.4 Financial liabilities (continued)

e) Additional Information

- Bonds

As of September 30, 2011 and December 31, 2010, ThUS$19,810,  ThUS$18,244, respectively are presented at short-term related to principal, current portion plus interest accrued at that date, not including borrowing costs and bonds issuance costs , In the long-term, non-current, the Company presented ThUS$904,240 as of September 30, 2011, ThUS$950,188 as of December 31, 2010 related to principal installments of Series C bonds, unique Series bonds, Series G bonds, Series H bonds, Series J bonds, Series I bonds and single series second issuance bonds.

As of September 30, 2011 and December 31, 2010 the details of each issuance are as follows:

Series “C” bonds

On January 25, 2006, the Company placed Series C bonds for UF 3,000,000 (ThUS$101,918) at an annual rate of 4,00%.

As of September 30, 2011 and December 31, 2010, the Company has made the following payments of principal and interest to comply with its obligations in relation to the Series C bonds.

Payments made		09.30.2011		12.31.2010
	ThUS$		ThUS$
Principal		3,501		6,298
Interest		2,219		4,175

Single Series bonds

On April 5, 2006, the Company placed Single Series bonds for ThUS$200,000 at an annual rate of 6,125%  under "Rule 144 and regulation S of the U,S, Securities Act of 1933."

As of September 30, 2011 and December 31, 2010, the Company has made the following payments of principal and interest to comply with its obligations in relation to the Single Series bonds.

	09.30.2011 ThUS$		12.31.02010 ThUS$
Interest payments		6,125		12,250

75

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial instruments (continued)

8.4 Financial liabilities (continued)

Series “G” and “H” bonds

On January 13, 2009, the Company placed two bond series in the domestic market, Series H for UF 4,000,000 (ThUS$139,216) at an annual interest rate of 4,9% at a term of 21 years with payment of principal beginning in 2019 and Series G for ThCh$ 21,000,000 (ThUS$34,146), which was placed at a term of 5 years with a single payment at the maturity of the term and an annual interest rate of 7%.

As of September 30, 2011 and December 31, 2010, the Company has made the following payments of principal and interest to comply with its obligations in relation to the Series G and H bonds line:

	09.30.2011 ThUS$		12.31.2010 ThUS$
Interest G series		3,094		2,750
Interest H series		8,989		7,763

Series “J” and “I” Bonds

On May 8, 2009, the Company placed two bond series in the domestic market, Series J for ThCh$52,000,000 (ThUS$92,456) which was placed at a term of 5 years with single payment at the expiration date of the term and annual interest rate of 5,5% and Series I for UF 1,500,000 (ThUS$56,051) which was placed at a term of 5 years with single payment at the maturity of the term and annual interest rate of 3,00%.

As of September 30, 2011 and December 31, 2010, the Company has made the following payments of principal and interest to comply with its obligations in relation to the Series J and I bonds:

	09.30.2011 ThUS$		12.31.2010 ThUS$
Interest J series		5,665		5,588
Interest I series		1,954		1,873

76

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial instruments (continued)

8.4 Financial liabilities (continued)

Single Series bonds (second issuance)

On April 21, 2010, the Company informed the Chilean Superintendence of Securities and Insurance of its placement in international markets of an unsecured bond of ThUS$250,000 maturing in ten years beginning on the aforementioned date with an annual interest rate of 5,5%.

As of September 30, 2011 and December 31, 2010, the Company has made the following payments of principal and interest to comply with its obligations in relation to the second-issuance single series bonds.

	09.30.2011 ThUS$		12.31.2010 ThUS$
Interest payments		6,875		6,875

8.5 Trade and other accounts payable

Payments made	09.30.2011				12.31.2010
	ThCh$		ThUS$		ThCh$		ThUS$
Principal, Series 1-B		-		-		15,000,000		29,040

Type of trade and other accounts payable	09.30.2011 ThUS$		12.31.2010 ThUS$
Current trade and other accounts payable
Trade accounts payable		179,657		151,516
Rentals		-		207
Other accounts payable		504		424
Total		180,161		152,147

The purchase commitments held by the Company are recognized as a liability when the services and goods are received by the Company, The Company has purchase order as of September 30, 2011 which amounts ThUS$ 96,763 (December 31, 2010 ThUS$ 51,347)

77

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial instruments (continued)

8.5 Trade and other accounts payable (continued)

Types of creditors and other  accounts payable, non-current	09.30.2011 ThUS$		12.31.2010 ThUS$
Lease liabilities		-		-
Total		-		-

8.6 Financial liabilities at fair value through profit or loss

This balance relates to derivative instruments, measured at fair value, the detail by type of instrument is as follows:

Financial liabilities at fair value through profit or loss		09.30.2011	Effect on profit or loss as of 09.30.2011				12.31.2010	Effect on profit or loss as of 12.31.2010
	ThUS$		ThUS$			ThUS$		ThUS$
Current
Derivative instruments (forwards)		4,429		(4,429	)		15,818		(15,818	)
Derivative instruments  (options)		459		(459	)		2,535		(2,535	)
		4,888		(4,888	)		18,353		(18,353	)

Balances in the column “effect on profit or loss” consider the annual effects of agreements that were in force as of September 30, 2011.

78

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial instruments (continued)

8.7 Financial asset and liability categories

Description of financial assets	09.30.2011 ThUS$		12.31.2010 ThUS$
Financial assets at fair value throughtprofits and loss		37,176		1,363
Financial assets at fair value in other comprehensive income		48,164		97,553
Financial assets at fair value throughtprofits and loss		153,013		69,818
Investments held to maturity		117		118
Loans and accounts receivable		457,338		377,047
Total financial assets		695,808		545,899

Description of financial liabilities	09.30.2011 ThUS$		12.31.2010 ThUS$
Financial liabilities at fair value through profit or loss		6,597		18,353
Financial liabilities measured at amortized cost		1,536,018		1,411,537
Total financial liabilities		1,542,615		1,429,890

8.8 Financial assets pledged as guarantee

On November 4, 2004, Isapre Norte Grande maintained a guarantee equivalent to the total amount owed to its members and healthcare providers, which is managed and maintained by Banco de Chile.
 

As of September 30, 2011 and December 31, 2010, assets pledged as guarantees are detailed as follows:

Restricted cash	09.30.2011 ThUS$		12.31.2010 ThUS$
Isapre Norte Grande Ltda,		487		514
Total		487		514

79

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial instruments (continued)

8.9 Estimated fair value of financial instruments and derivative financial instruments

As required by IFRS 7, the following information is presented for the disclosure of the estimated fair value of financial assets and liabilities.

Although inputs represent Management's best estimate, they are subjective and involve significant estimates related to the current economic and market conditions, as well as risk factors.

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

- Cash equivalents approximate fair value due to the short-term maturities of these instruments.

- Other current financial liabilities are considered at fair value equal to their carrying values.

- For interest-bearing liabilities with an original maturity of more than a year, fair values are calculated by discounting contractual cash flows at their original current market with similar terms.

- For forward and swap contracts, fair value is determined using quoted market prices of financial instruments with similar characteristics.

80

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 8 - Financial instruments (continued)

8.9 Estimated fair value of financial instruments and derivative financial instruments (continued)

The Company’s instruments, listed at carrying value and estimated fair value, are detailed as follows:

	09.30.2011				12.31.2010
	Carrying Value		Fair Value		Carrying Value		Fair Value
	ThUS$		ThUS$		ThUS$		ThUS$
Cash and cash equivalents		447,406		447,406		524,652		524,652
Current trade and other accounts receivable		456,425		456,425		375,945		375,945
Other current financial assets:
- Time deposits (L2)		153,013		153,013		69,818		69,818
- Derivative instruments (L2)		37,176		37,176		1,363		1,363
-  Current hedging assets (L2)		16,914		16,914		4,997		4,997
Total other current financial assets		207,103		207,103		76,178		76,178
Other non-current financial assets:		117		117		118		118
Non-current hedging assets (L2)		31,250		31,250		92,556		92,556
Total other non-current financial assets		31,367		31,367		92,674		92,674
Other current financial liabilities
- Bank loans		241,986		241,986		150,958		150,958
- Derivative instruments (L2)		4,888		4,888		18,353		18,353
-  Hedging liabilities (L2)		1,709		1,709		-		-
-  Unsecured obligations		19,810		19,810		18,244		18,244
Total other current financial
Liabilities		268,393		268,393		187,555		187,555
Trade accounts payable		180,161		180,161		152,147		152,147
Other non-current financial liabilities:
- Bank loans		189,821		195,180		140,000		143,174
-  Unsecured obligations		904,240		1,049,700		950,188		1,092,026
Total other non-current financial liabilities		1,094,061		1,244,880		1,090,188		1,235,200

Fair value hierarchy

Fair value hierarchies correspond to:

Level 1 (L1): when only quoted (unadjusted) prices have been used in active markets,

Level 2 (L2) :when in a phase in the valuation process variables other than prices quoted in Level 1 have been used which are directly observable in markets,

Level 3 (L3): when in a phase in the valuation process, variables not based on observable market data have been used,

81

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 9 - Investments and disclosures on Investments in subsidiaries

9.1 Disclosures on investments in subsidiaries

a) Operations acquired in 2011

On April 7, 2011 was formed Sociedad Agrorama S.A. with ownership of the subsidiary Soquimich Comercial S.A. by 99,999% and Sociedad Productora de Insumos Agrícolas Ltda. by 0,001%. This new company will have a paid-in capital amounting to M$100,000 (ThUS$211), its duration will be indefinite and its main business objective will be the commercializtion and distribution of fertilizers, pesticides and agricultural products or supplies. 

On August 30, 2011, SQM Industrial S.A. made a capital contribution amounting to  ThUS$8,000 to its subsidiary SQMC México S.A. de CV.

During the month of September 2011, SQM Industrial S.A. made a capital contribution amounting to ThUS$14,017 to its subsidiary SQMC México S.A. de CV, thereby increasing its share to  99.873865%.

During the month of September 2011, the subsidiary Soquimich European Holding B.V., purchases from its associate Nutrisi Holding N.V., 66.6% of the share it held in the subsidiary Fertilizantes Naturales S.A. for an amount of ThUS€ 2,200

b) Operations acquired in 2010

On February 2, 2010, the subsidiary SQM Beijin Comercial was formed, to which SQM Industrial S.A. contributed capital of ThUS$100, obtaining an equity interest of 100% in that entity.

82

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 9 - Investments and disclosures on Investments in subsidiaries (continued)

9.1 Disclosures on investments in subsidiaries (continued)

Financial information as of September 30, 2011 of the companies included in the consolidation process is detailed as follows:

09.30.2011
					Assets						Liabilities								Net profit
Subsidiaries	Country	Functional currency	Interest %		Current ThUS$		Non-current ThUS$		Total ThUS$		Current ThUS$		Non-current ThUS$		Total ThUS$		Revenue ThUS$		(loss) ThUS$
SQM Nitratos S.A.	Chile	US dollar		100		820,112		97,081		917,193		801,825		12,037		813,862		156,364		55,895
Proinsa Ltda.	Chile	Chilean Peso		60.58		202		1		203		-		-		-		-		-
SQMC Internacional Ltda.	Chile	Chilean Peso		60.6382		267		-		267		-		-		-		-		(4	)
SQM Potasio S.A.	Chile	US dollar		99.9974		7,066		701,012		708,078		4		117,258		117,262		-		185,817
Serv. Integrales de Tránsito y Transf. S.A.	Chile	US dollar		100		190,689		68,457		259,146		227,283		5,334		232,617		31,548		4,093
Isapre Norte Grande Ltda.	Chile	Chilean Peso		100		423		602		1,025		478		147		625		2,755		18
Ajay SQM Chile S.A.	Chile	US dollar		51		21,038		1,697		22,735		5,978		833		6,811		53,011		6,869
Almacenes y Depósitos Ltda.	Chile	Chilean Peso		100		369		48		417		1		-		1		-		(11	)
SQM Salar S.A.	Chile	US dollar		100		506,881		828,685		1,335,566		478,263		101,333		579,596		567,122		213,980
SQM Industrial S.A.	Chile	US dollar		100		1,274,705		657,070		1,931,775		1,067,943		43,597		1,111,540		595,114		85,225
Minera Nueva Victoria S.A.	Chile	US dollar		100		73,055		56,719		129,774		1,135		2,311		3,446		1,012		2,297
Exploraciones Mineras S.A.	Chile	US dollar		100		438		31,420		31,858		4,013		-		4,013		-		(159	)
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.	Chile	Chilean Peso		100		621		71		692		207		388		595		1,512		(34	)
Soquimich Comercial S.A.	Chile	US dollar		60.6383		237,685		16,380		254,065		143,453		1,026		144,479		141,689		4,605
Agrorama Callegari Ltda.	Chile	Chilean Peso		42.4468		8,244		1,357		9,601		8,330		102		8,432		7,163		(86	)
Comercial Hydro S.A.	Chile	Chilean Peso		60.6382		7,165		284		7,449		50		87		137		82		205
Agrorama S.A.	Chile	Chilean Peso		60.6377		172		-		172		6		-		6		-		(25	)
SQM North América Corp.	United States	US dollar		100		152,975		15,341		168,316		141,384		2,644		144,028		237,920		(7,996	)

83

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 9 - Investments and disclosures on Investments in subsidiaries (continued)

9.1 Disclosures on investments in subsidiaries (continued)

09.30.2011
					Assets						Liabilities
Subsidiaries	Country	Functional currency	Interest %		Current ThUS$		Non-current ThUS$		Total ThUS$		Current ThUS$		Non-current ThUS$		Total ThUS$		Revenue ThUS$		Net profit (loss) ThUS$
RS Agro Chemical.Trading A.V.V.	Aruba	US dollar		100		5,224		-		5,224		-		-		-		-		(3	)
Nitratos Naturais do Chile Ltda.	Brazil	US dollar		100		6		305		311		4,789		-		4,789		-		248
Nitrate  Corporation of Chile Ltd.	England	US dollar		100		5,076		-		5,076		-		-		-		-		-
SQM Corporation N.V.	Dutch Antilles	US dollar		100		669		86,566		87,235		3,694		-		3,694		-		33,998
SQM Perú S.A.	Perú	US dollar		100		9,087		106		9,193		9,411		-		9,411		18,365		(832	)
SQM Ecuador S.A.	Ecuador	US dollar		100		12,090		69		12,159		11,234		-		11,234		17,809		294
SQM Brasil Ltda.	Brazil	US dollar		100		292		61		353		1,100		-		1,100		597		63
SQI Corporation NV.	Dutch Antilles	US dollar		100		-		17		17		36		-		36		-		4
SQMC Holding Corporation L.L.P.	United States	US dollar		100		2,922		14,848		17,770		998		-		998		-		7,180
SQM Japan Co. Ltd.	Japan	US dollar		100		1,768		680		2,448		320		464		784		1,871		292
SQM Europe N.V.	Bélgium	US dollar		100		414,592		304		414,896		375,103		-		375,103		724,282		22,554
SQM Italia SRL	Italy	US dollar		100		1,392		-		1,392		18		-		18		-		-
SQM Indonesia S.A.	Indonesia	US dollar		80		5		-		5		1		-		1		-		-
North American Trading Company	United States	US dollar		100		161		145		306		39		-		39		-		-
SQM Virginia LLC	United States	US dollar		100		14,831		14,376		29,207		14,831		-		14,831		-		(3	)
SQM Comercial de México S.A. de C.V.	México	US dollar		100		67,516		1,257		68,773		46,761		517		47,278		120,704		269

84

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 9 - Investments and disclosures on Investments in subsidiaries (continued)

9.1 Disclosures on investments in subsidiaries (continued)

09.30.2011
					Assets							Liabilities
Subsidiaries	Country	Functional currency	Interest %		Current ThUS$		Non-current ThUS$			Total ThUS$		Current ThUS$		Non-current ThUS$		Total ThUS$		Revenue ThUS$		Net profit (loss) ThUS$$
SQM investment Corporation N.V.	Dutch Antilles	Dólar USA		100		65,621		402			66,023		41,491		721		42,212		7,279		2,416
Royal Seed Trading Corporation A.V.V.	Aruba	US dollar		100		137,332		119			137,451		93,269		50,000		143,269		-		2,241
SQM Lithium Specialties LLP	United States	US dollar		100		15,783		3			15,786		1,264		-		1,264		-		(3	)
Soquimich SRL Argentina	Argentina	US dollar		100		433		-			433		117		-		117		-		(47	)
Comercial Caimán Internacional S.A.	Panama	US dollar		100		497		-			497		1,217		-		1,217		855		21
SQM France S.A.	France	US dollar		100		345		6			351		114		-		114		-		-
Administración y Servicios Santiago S.A. de C.V.	México	US dollar		100		73		-			73		908		180		1,088		2,034		(14	)
SQM Nitratos México S.A. de C.V.	México	US dollar		51		20		1			21		14		-		14		114		(3	)
Soquimich European Holding B.V.	Netherlands	US dollar		100		48,379		108,118			156,497		78,194		-		78,194		-		32,803
Fertilizantes Naturales S.A.	Spain	US dollar		66.67		19,288		(15	)		19,273		16,993		-		16,993		58,735		950
Iodine Minera B.V.	Netherlands	US dollar		100		10,702		-			10,702		1		-		1		66		580
SQM Africa Pty Ltd.	South Africa	US dollar		100		42,756		149			42,905		34,828		-		34,828		74,388		6,220
SQM Venezuela S.A.	Venezuela	US dollar		100		5		-			5		328		-		328		-		(157	)
SQM Oceanía Pty Ltd.	Australia	US dollar		100		4,103		-			4,103		1,301		-		1,301		3,304		1,867
SQM  Agro India Pvt. Ltd.	India	US dollar		100		71		2			73		17		-		17		-		(21	)
SQM Beijin Commercial Co. Ltd.	China	US dollar		100		280		24			304		191		-		191		1,430		16
Total						4,183,426		2,703,768			6,887,194		3,618,935		338,979		3,957,914		2,827125		661,622

85

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 9 - Investments and disclosures on Investments in subsidiaries (continued)

9.1 Disclosures on investments in subsidiaries (continued)

Financial information as of December 31, 2010 of the companies included in the consolidation process is detailed as follows:

12.31.2010
					Assets						Liabilities
Subsidiaries	Country	Functional currency	Interest %		Current ThUS$		Non- current ThUS$		Total ThUS$		Current ThUS$		Non- current ThUS$		Total ThUS$		Revenue ThUS$		Net profit (loss) ThUS$
SQM Nitratos S.A.	Chile	US dollar		100		652,776		61,542		714,318		610,283		11,599		621,882		134,842		29,622
Proinsa Ltda.	Chile	Chilean peso		60,58		227		1		228		-		-		-		-		-
SQMC Internacional Ltda.	Chile	Chilean peso		60.6382		302		-		302		-		-		-		-		(2	)
SQM Potasio S.A.	Chile	US dollar		99.9974		58,331		604,872		663,203		2		172,351		172,353		-		139,838
Serv. Integrales de Tránsito y Transf. S.A.	Chile	US dollar		100		149,255		60,290		209,545		182,671		4,437		187,108		45,446		10,113
Isapre Norte Grande Ltda.	Chile	Chilean peso		100		570		591		1,161		581		154		735		4,018		20
Ajay SQM Chile S.A.	Chile	US dollar		51		15,299		2,378		17,677		6,833		747		7,580		54,948		2,049
Almacenes y Depósitos Ltda.	Chile	Chilean peso		100		413		52		465		1		-		1		-		(13	)
SQM Salar S.A.	Chile	US dollar		100		365,830		658,793		1,024,623		273,758		98,885		372,643		631,151		185,315
Comercial Hydro S.A.	Chile	Chilean peso		60.6382		6,890		329		7,219		40		73		113		185		217
SQM Industrial S.A.	Chile	US dollar		100		1,063,080		596,723		1,659,803		854,130		51,512		905,642		690,541		130,230
Minera Nueva Victoria S.A.	Chile	US dollar		100		73,217		53,754		126,971		445		2,495		2,940		1,578		4,369
Exploraciones Mineras S.A.	Chile	US dollar		100		438		31,380		31,818		3,814		-		3,814		-		(178	)
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.	Chile	Chilean peso		100		645		93		738		224		367		591		1,897		(3	)
Soquimich Comercial S.A.	Chile	US dollar		60.6383		140,678		15,875		156,553		48,195		1,181		49,376		171,181		10,107
Agrorama Callegari Ltda.	Chile	Chilean peso		42.4468		5,024		1,492		6,516		4,998		117		5,115		6,910		(293	)
SQM North América Corp.	United States	US dollar		100		109,944		15,448		125,392		90,533		2,644		93,177		226,249		8,143
RS Agro Chemical.Trading A.V.V.	Aruba	US dollar		100		5,227		-		5,227		-		-		-		-		(5	)
Nitratos Naturais do Chile Ltda.	Brazil	US dollar		100		5		290		295		5,022		-		5,022		-		(124	)

86

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 9 - Investments and disclosures on Investments in subsidiaries (continued)

9.1 Disclosures on investments in subsidiaries (continued)

12.31.2010
					Assets						Liabilities
Subsidiaries	Country	Functional currency	Interest %		Current ThUS$		Non- current ThUS$		Total ThUS$		Current ThUS$		Non- current ThUS$		Total ThUS$		Revenue ThUS$		Net profit (loss) ThUS$
Nitrate  Corporation of Chile Ltd.	England	US dollar		100		5,076		-		5,076		-		-		-		-		-
SQM Corporation N.V.	Dutch Antilles	US dollar		100		669		52,607		53,276		3,712		-		3,712		-		13,472
SQM Perú S.A.	Peru	US dollar		100		15,159		483		15,642		15,027		-		15,027		24,536		1,236
SQM Ecuador S.A.	Ecuador	US dollar		100		8,716		71		8,787		8,149		-		8,149		16,808		298
SQM Brasil Ltda.	Brazil	US dollar		100		295		75		370		1,180		-		1,180		771		17
SQI Corporation NV.	Dutch Antilles	US dollar		100		-		10		10		33		-		33		-		-
SQMC Holding Corporation L.L.P.	United States	US dollar		100		1,501		8,498		9,999		619		-		619		-		492
SQM Japan Co. Ltd.	Japan	US dollar		100		1,440		633		2,073		263		436		699		1,855		218
SQM Europe N.V.	Belgium	US dollar		100		358,214		454		358,668		341,425		-		341,425		861,596		7,107
SQM Italia SRL	Italy	US dollar		100		1,377		-		1,377		17		-		17		-		-
SQM Indonesia S.A.	Indonesia	US dollar		80		5		-		5		1		-		1		-		-
North American Trading Company	United States	US dollar		100		161		145		306		39		-		39		-		-
SQM Virginia LLC	United States	US dollar		100		14,834		14,379		29,213		14,834		-		14,834		-		(1	)
SQM Comercial de México S.A. de C.V.	Mexico	US dollar		100		58,332		1,410		59,742		60,646		-		60,646		130,861		(1,523	)

87

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 9 - Investments and disclosures on Investments in subsidiaries (continued)

9.1 Disclosures on investments in subsidiaries (continued)

12.31.2010
					Assets							Liabilities								Net
Subsidiaries	Country	Functional currency	% Interest		Current ThUS$		Non- current ThUS$			Total ThUS$		Current ThUS$		Non- current ThUS$		Total ThUS$		Operating Revenues ThUS$		profit (loss) ThUS$
SQM Investment Corporation N.V.	Dutch Antilles	US dollar	100			71,100		551			71,651		49,515		742		50,257		14,255		587
Royal Seed Trading Corporation A.V.V.	Aruba	US dollar		100		88,567		-			88,567		96,627		-		96,627		-		(9,058	)
SQM Lithium Specialties LLP	United States	US dollar		100		15,786		3			15,789		1,264		-		1,264		-		(1	)
Soquimich SRL Argentina	Argentina	US dollar		100		472		-			472		109		-		109		-		(83	)
Comercial Caimán Internacional S.A.	Panama	US dollar		100		339		-			339		1,080		-		1,080		-		(174	)
SQM France S.A.	France	US dollar		100		345		6			351		114		-		114		-		-
Administración y Servicios Santiago S.A. de C.V.	Mexico	US dollar		100		47		-			47		854		195		1,049		2,597		(173	)
SQM Nitratos México S.A. de C.V.	Mexico	US dollar		51		27		1			28		17		-		17		128		4
Soquimich European Holding B.V.	Netherlands	US dollar		100		68,722		71,384			140,106		94,565		-		94,565		-		12,481
Fertilizantes Naturales S.A.	Spain	US dollar		66.67		16,515		(10	)		16,505		15,175		-		15,175		64,748		749
Iodine Minera B.V.	Netherlands	US dollar		100		10,122		-			10,122		1		-		1		1,467		1,175
SQM Africa Pty Ltd.	South Africa	US dollar		100		38,463		147			38,610		36,736		-		36,736		94,111		149
SQM Venezuela S.A.	Venezuela	US dollar		100		80		-			80		402		-		402		-		(161	)
SQM Oceanía Pty Ltd.	Australia	US dollar		100		1,466		-			1,466		533		-		533		2,207		120
SQM  Agro India Pvt. Ltd.	India	US dollar		100		231		4			235		149		-		149		-		(14	)
SQM Beijin Commercial Co. Ltd.	China	US dollar		100		131		42			173		77		-		77		1,462		(4	)
Total						3,426,343		2,254,796			5,681,139		2,824,693		347,935		3,172,628		3,186,348		546,318

88

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 10 - Investments in associates accounted for using the Equity method

10.1 Investments in associates accounted for using the equity method

As of September 30, 2011 and December 31, 2010, in accordance with criteria established in Note 2.4 and Note 2.12, investments in associates accounted for using the equity method and investments in joint ventures are detailed as follows:

	Note Nº	09.30.2011 ThUS$		12.31.2010 ThUS$
Investments in associates	10.1 to 10.3		48,107		38,262
Joint ventures	11.0  to 11.4		20,728		24,009
Total			68,835		62,271

89

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 10 - Investments in associates accounted for using the Equity method (continued)

10.2 Assets, liabilities, revenues and expenses of associates

09.30.2011
				Assets					Liabilities
Tax ID	Associate	Country of incorporation	Functional currency	Current ThUS$		Non-current ThUS$	Total ThUS$		Current ThUS$		Non- current ThUS$		Total ThUS$		Revenue ThUS$		Profit (loss) ThUS$
77.557.430-5	Sales de Magnesio Ltda.	Chile	Chilean peso		3,292	3		3,295		812		-		812		4,526		741
Foreign	Abu Dhabi Fertilizer Industries WWL	Arabia	Dirham of the United Arab Emirates		19,773	2,206		21,979		5,407		47		5,454		27,631		2,395
Foreign	Doktor Tarsa Tarim Sanayi AS	Turkey	Turkish Lira		65,087	7,413		72,500		38,313		8,619		46,932		52,105		4,812
Foreign	Nutrisi Holding N.V.	Belgium	Euro		3,244	12,187		15,431		28		3,246		3,274		-		4,085
Foreign	Ajay North America	United States	US dollar		32,674	7,950		40,624		10,322		-		10,322		63,048		15,404
Foreign	Nutrichem Benelux	Belgium	Euro		-	-		-		-		-		-		-		-
Foreign	Ajay Europe SARL	France	Euro		23,063	2,306		25,369		10,819		-		10,819		30,379		4,969
Foreign	Generale De Nutrition	Belgium	Euro		-	-		-		-		-		-		-		-
Foreign	Misr Specialty Fertilizers	Egypt	Egyptian pound		2,651	2,825		5,476		2,582		220		2,802		-		(266	)
Foreign	SQM Eastmed Turkey	Turkey	Euro		24	528		552		268		-		268		-		(34	)
Foreign	SQM Thailand Co. Ltd.	Thailand	Thai Bath		8,308	657		8,965		4,969		-		4,969		9,205		262
	Total				158,116	36,075		194,191		73,520		12,132		85,652		186,894		32,368

12.31.2010
				Assets						Liabilities
Tax ID	Associate	Country of incorporation	Functional currency	Current ThUS$		Non- current ThUS$		Total ThUS$		Current ThUS$		Non- current ThUS$		Total ThUS$		Revenue ThUS$		Profit (loss) ThUS$
77.557.430-5	Sales de Magnesio Ltda.	Chile	Chilean peso		3,844		3		3,847		1,143		-		1,143		6,494		1,408
Foreign	Abu Dhabi Fertilizer Industries WWL	Arabia	Dirham of the United Arab Emirates		19,909		2,092		22,001		7,869		-		7,869		35,506		1,960
Foreign	Doktor Tarsa Tarim Sanayi AS	Turkey	Turkish Lira		49,013		7,840		56,853		33,229		27		33,256		64,540		8,003
Foreign	Nutrisi Holding N.V.	Belgium	Euro		449		10,768		11,217		3,228		-		3,228		-		3,056
Foreign	Ajay North America	United States	US dollar		15,585		6,926		22,511		5,168		-		5,168		52,237		4,143
Foreign	Nutrichem Benelux	Belgium	Euro		-		-		-		-		-		-		-		-
Foreign	Ajay Europe SARL	France	Euro		15,428		2,223		17,651		6,519		-		6,519		41,992		2,212
Foreign	Generale De Nutrition	Belgium	Euro		-		-		-		-		-		-		-		-
Foreign	Mirs Specialty Fertilizers	Egypt	Egyptian pound		3,013		3,214		6,227		2,980		226		3,206		4,231		(521	)
Foreign	SQM Eastmed Turkey	Turkey	Euro		34		592		626		247		-		247		646		-
Foreign	SQM Thailand Co. Ltd.	Thailand	Thai Bath		5,307		587		5,894		2,035		-		2,035		11,149		594
	Total				112,582		34,245		146,827		62,418		253		62,671		216,795		20,855

90

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 10 - Investments in associates accounted for using the Equity method (continued)

10.3 Details of investments in associates

 The interest of SQM S.A., in its associates is detailed as follows:

Associate Name	Main Activities of Associate	% Interest			Investment 09.30.2011 ThUS$		Investment 12.31.2010 ThUS$
Sales de Magnesio Ltda.	Magnesium salt trader.		50	%		1,242		1,352
Abu Dhabi Fertilizer Industries Co. W.W.L.	Distribution and trade of specialty vegetal nutrients in the Middle East.		50	%		8,263		7,066
Ajay North America L.L.C	Production and trade of iodine by-products.		49	%		11,903		7,251
Doktor Tarsa Tarim Sanayi AS	Distribution and trade of specialty vegetal nutrients in Turkey.		50	%		12,783		11,799
Nutrisi Holding N.V.	Holding		50	%		6,079		3,551
Ajay Europe SARL	Production and distribution of iodine and iodine products		50	%		4,827		4,076
NU3 B.V.	Production of fertilizers in solid and liquid state.		100	%		-		-
NU3 N.V.	Production of fertilizers in solid and liquid state.		50	%		-		-
Misr Specialty Fertilizers S.A.E.	Production and trade of liquid fertilizers for Egypt		47.4857	%		1,270		1,435
SQM Eastmed Turkey	Production and trade of specialty products		50	%		142		189
SQM Thailand Co. Ltd.	Distribution and trade of specialty vegetal nutrients.		40	%		1,598		1,543
Total						48,107		38,262

The Company does not have an interest in unrecognized losses in investments in associates.

The Company does not have any associates not accounted for using the equity method.

Note 11 - Joint Ventures

11.1 Policy for accounting for joint ventures in a Parent Company’s separate financial statements

The method for the recognition of joint ventures in which equity interest is initially recorded at cost and subsequently adjusted considering changes after the acquisition in the portion of the entity’s net assets which correspond to the investor. Profit for the year of the investor will receive the portion which belongs to it in profit or loss of the entity under joint control.

11.2 Disclosures on interest in joint ventures

a) Operations acquired in 2011

On January 27, 2011 the subsidiary SQM Industrial S.A. made a capital contribution of ThUS$2.500 in Sichuan SQM Migao Chemical Fertilizer Co.

91

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 11 - Joint Ventures (continued)

11.2 Disclosures on interest in joint ventures (continued)

b) Operations acquired in 2010

On March 4, 2010, SQM Industrial S.A. entered an agreement with Qingdao Star Plant Protection Technology Co. Ltd. by means of which the companies formed a joint venture, SQM Qingdao-Star Co. Ltd. Each party made a capital contribution of ThUS$2,000 for an interest of 50%.

On June 24, 2010 SQM Industrial S.A. made a contribution of ThUS$2,500 in SQM Migao Sichuan.

92

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Nota 11 - Policy and disclosures on interest in Joint Ventures (continued)

11.3 Detail of assets, liabilities and results of investments  in joint ventures by company as of 09.30.2011 and 12.31.2010, respectively:

09.30.2011
				Assets						Liabilities
Tax ID	Joint venture	Country	Functional  currency	Current ThUS$		Non- current ThUS$		Total ThUS$		Current ThUS$		Non- current ThUS$		Total ThUS$		Revenues ThUS$		Expenses ThUS$			Net income (loss) ThUS$
Foreign	Sichuan SQM Migao Chemical Fertilizers Co Ltda.	China	US dollar		17,638		10,935		28,573		9,136		-		9,136		9,995		(10,479	)		(484	)
Foreign	Coromandel SQM	India	Indian Rupee		438		433		871		11		-		11		27		(37	)		(10	)
Foreign	SQM Vitas	United Arab Emirates	Dirham of the United Arab Emirates		27,795		8,736		36,531		843		-		843		20,698		(19,186	)		1,511
Foreign	SQM Qindao-Star Co. Ltda.	China	US dollar		2,440		377		2,817		646		-		646		4,097		(3,954	)		143
	Total				48,311		20,481		68,792		10,636		-		10,636		34,817		(33,656	)		1,160

12.31.2010
						Assets						Liabilities
Tax ID	Joint venture	Country	Functional  currency	Current ThUS$		Non- current ThUS$		Total  ThUS$		Current ThUS$		Non- current ThUS$		Total ThUS$		Revenues ThUS$		Expenses ThUS$			Net income  (loss) ThUS$
Foreign	Sichuan SQM Migao Chemical Fertilizers Co Ltda.	China	US dollar		2,987		11,677		14,664		3,744		-		3,744		-		(46	)		(46	)
Foreign	Coromandel SQM	India	Indian Rupee		10		862		872		7		-		7		3		-			3
Foreign	SQM Vitas	United Arab Emirates	Dirham of the United Arab Emirates		27,534		9,499		37,033		2,828		-		2,828		19,954		(18,756	)		1,198
Foreign	SQM Qindao-Star Co. Ltda.	China	US dollar		2,448		387		2,835		808		-		808		2,900		(2,873	)		27
	Total				32,979		22,425		55,404		7,387		-		7,387		22,857		(21,675	)		1,182

93

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Nota 11 - Policy and disclosures on interest in Joint Ventures (continued)

11.4 Amount of net gain (loss) on investments in  joint ventures by company is detailed as follows:

Joint Venture	Main Activities of Joint venture	% Interest			Investment 09.30.2011 ThUS$		Investment 12.31.2010 ThUS$
Coromandel SQM	Production and distribution of  potassium nitrate		50	%		430		432
Sichuan SQM Migao Chemical Fertilizer Co. Ltda.	Production and distribution of soluble fertilizers.		50	%		9,718		5,461
SQM Vitas	Production and trade of vegetal and animal specialty  and industrial hygiene nutrition goods		50	%		9,495		17,102
SQM Quindao-Star Co. Ltda.	Production and distribution of Vegetal Nutrition Solutions  NPK solubles		50	%		1,085		1,014
Total						20,728		24,009

94

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 12 - Intangible assets and goodwill

12.1 Balances

Balances	09.30.2011		12.31.2010
	ThUS$		ThUS$
Intangible assets other than goodwill		3,947		3,270
Goodwill		38,388		38,388
Total		42,335		41,658

12.2 Disclosures on intangible assets and goodwill

Intangible assets relating to goodwill, water rights, trademarks, industrial patents, rights of way and IT programs.

Balances and movements in the main types of intangible assets as of September 30, 2011, and December 31, 2010 are detailed as follows:

Description of types of intangible assets	Useful life	09.30.2011
		ThUS$
Goodwill	Indefinite		38,388
Water rights	Indefinite		1,535
Rights of way, net	Finite		395
Industrial patents, net	Finite		455
Trademarks, net	Finite		1
IT programs, net	Finite		1,561
Total			42,335

Description of types of intangible assets	Useful life	12.31.2010
		ThUS$
Goodwill	Indefinite		38,388
Water rights	Indefinite		1,546
Rights of way, net	Finite		396
Industrial patents, net	Finite		501
Trademarks, net	Finite		4
IT programs, net	Finite		823
Total			41,658

95

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 12 - Intangible assets and Goodwill (continued)

12.2 Disclosures on intangible assets and goodwill (continued)

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

Finite useful life measures the lifetime or the number of productive units or other similar factor that constitute its useful life.

The estimated useful life for software is three years. For other finite useful life assets, the period in which they are amortized relates to periods defined by contracts or the rights that generate them.

Indefinite useful life intangible assets mainly relate to water rights and rights of way, which were obtained as indefinite.

b) Method used to express the amortization of identifiable intangible assets (life or rate)

The method used to express amortization is useful life.

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

Estimated useful lives or amortization rate	Minimum life or Rate	Maximum life or rate
Water rights	Indefinite	Indefinite
Rights of way	1 year	20 years
Industrial patents	1 year	16 years
Trademarks	1 year	5 years
IT programs	2 years	3 years

d) Disclosure on internally-generated assets

The Company has no internally-generated intangible assets.

96

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 12 - Intangible assets and Goodwill (continued)

12.2 Disclosures on intangible assets and goodwill (continued)

c) Movements in identifiable intangible assets as of September 30, 2011

Movements in identifiable intangible assets	Net Goodwill ThUS$		Water rights, net ThUS$			Rights of way, Net ThUS$			Industrial patents, net ThUS$			Trademarks, net ThUS$			Computer software, net ThUS$			Identifiable intangible assets,net
Opening balance		38,388		1,546			396			501			4			823			41,658
Additions		-		-			-			-			-			1,269			1,269
Amortization		-		(7	)		(1	)		(46	)		(3	)		(531	)		(588	)
Other increases (decreases)		-		(4	)		-			-			-			-			(4	)
Ending balance		38,388		1,535			395			455			1			1,561			42,335

Movements in identifiable intangible assets as of December 31, 2010

Movements in identifiable intangible assets	Net goodwill ThUS$		Water rights, net ThUS$			Rights of way, net ThUS$		Industrial patents, net ThUS$			Trademarks, Net ThUS$			Computer software, net ThUS$			Identifiable intangible assets, net
Opening balance		38,388		1,549			395		570			-			322			41,224
Additions		-		91			-		-			-			839			930
Amortization		-		(94	)		-		(69	)		(368	)		(338	)		(869	)
Other increases (decreases)		-					1		-			372			-			373
Ending balance		38,388		1,546			396		501			4			823			41,658

97

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 13 - Property, plant and equipment

As of September 30, 2011 and December 31, 2010, property, plant and equipment are detailed as follows:

13.1 Types of property, plant and equipment

Description of types of property,plant and equipment	09.30.2011 ThUS$		12.31.2010 ThUS$
Property, plant and equipment, net
Construction-in-progress		671,216		356,551
Land		108,323		107,869
Buildings		86,936		88,320
Plant and equipment		434,888		492,525
IT equipment		3,547		3,897
Fixed installations and accessories		310,274		327,511
Motor vehicles		45,343		48,936
Other property, plant and equipment		34,425		28,364
Total		1,694,952		1,453,973
Property, plant and equipment, gross
Construction-in-progress		671,216		356,551
Land		108,323		107,869
Buildings		227,212		221,715
Plant and equipment		1,218,035		1,184,270
IT equipment		23,679		22,759
Fixed installations and accessories		542,077		531,423
Motor vehicles		156,202		151,544
Other property, plant and equipment		56,061		47,910
Total		3,002,805		2,624,041
Accumulated depreciation and value impairment of property, plant and equipment
Accumulated depreciation  of buildings		140,276		133,395
Accumulated depreciation  plant and equipment		783,147		691,745
Accumulated depreciation  of  IT equipment		20,132		18,862
Accumulated depreciation of fixed installations and accessories		231,803		203,912
Accumulated depreciation  of motor vehicles		110,859		102,608
Accumulated depreciation  of other PP&E		21,636		19,546
Total		1,307,853		1,170,068

98

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 13 - Property, plant and equipment (continued)

13.1 Reconciliation of changes in property, plant and equipment by type as of September 30, 2011 and December 31, 2010:

Reconciliation entries of changes in property, plant and equipment by class as of September 30, 2011	Construction in- progress			Land			Buildings, net			Plant and equipment, net			IT equipment, net			Fixed installations and accessories, net			Motor vehicles, net			Improvement of leased property, plant and equipment, net		Other property, plant and equipment, net			Property, plant and equipment, net
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$
Opening balance		356,551			107,869			88,320			492,525			3,897			327,511			48,936			-		28,364			1,453,973
Changes
Additions		400,403			498			150			244			109			248			553			-		113			402.318
Divestitures		-			-			-			(1,066	)		(57	)		-			(451	)		-		-			(1.574	)
Depreciation expense		-			-			(6,877	)		(91,953	)		(1,210	)		(27,871	)		(8,598	)		-		(2,691	)		(139,200	)
Increase(decrease) in foreign currency exchange		-			(44	)		-			(8	)		127			(74	)		(24	)		-		43			20
Others Increases / Decreases		(85,738	)		-			5,343			35,146			681			10,460			4,927			-		8,596			(20,585	)
Total changes		314,665			454			(1,384	)		(57,637	)		(350	)		(17,237	)		(3,593	)		-		6,061			240,979
Ending balance		671,216			108,323			86,936			434,888			3,547			310,274			45,343			-		34,425			1,694,952

99

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 13 - Property, plant and equipment (continued)

13.2 Reconciliation of changes in property, plant and equipment by class as of September 30, 2011 and December 31, 2010, continued:

Reconciliation entries of changes in property, plant and equipment by class as of December 31, 2010	Construction in- progress			Land			Buildings, net			Plant and equipment, net			IT equipment, net			Fixed installations and accessories, net			Motor vehicles, net			Improvement of leased property, plant and equipment, net		Other property, plant and equipment, net			Property, plant and equipment, net
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$
Opening balance		379,416			108,356			86,252			453,859			3,853			193,893			55,341			-		19,576			1,300,546
Changes
Additions		351,792			386			1,021			512			123			41			450			-		126			354,451
Divestitures		-			(26	)		(114	)		(3,391	)		(26	)		-			-			-		(116	)		(3,673	)
Depreciation expense		-			-			(9,226	)		(88,640	)		(1,537	)		(29,342	)		(11,837	)		-		(3,326	)		(143,908	)
Increase(decrease) in foreign currency exchange		-			-			2			55			-			14			13			-		2			86
Reclassifications		-			-			-			-			-			-			-			-		-			-
Others Increases / Decreases		(374,657	)		(847	)		10,385			130,130			1,484			162,905			4,969			-		12,102			(53,529	)
Total changes		(22,865	)		(487	)		2,068			38,666			44			133,618			(6,405	)		-		8,788			153,427
Ending balance		356,551			107,869			88,320			492,525			3,897			327,511			48,936			-		28,364			1,453,973

100

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 13 - Property, plant and equipment (continued)

13.3 Detail of property, plant and equipment pledged as guarantee

There are no restrictions on titles or guarantees for the compliance with obligations which affect property, plant and equipment.

13.4 Additional Information

1) Leased property, plant and equipment

At September 30, 2011, the company has no assets in leasing. At December 31,  2010 the balance of assets in leasing amounted to ThUS$ 1,373 and corresponded to 2 floors of the Las Americas building in Santiago Centro.

2) The investment properties at September 30, 2011 and at December 31, 2010 is as follows:

	09.30.2011		12.31.2010
Description of assets	ThUS$		ThUS$
2 floors of the Las Americas Building, net		1,378		1,373
Total (net)		1,378		1,373

3) Interest capitalized in construction-in-progress

Capitalized interest amounted to ThUS$ 15,897 as of September 30, 2011   and ThUS$ 25,947 as of December 31, 2010.

Financing costs are not capitalized for periods that exceed the normal term of acquisition, construction or installation of the asset, such as in the case of delays, interruptions or temporary suspension of the project due to technical, financial or other issues that inhibit the asset’s maintenance in good conditions for its use.

101

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 14 - Leases

14.1 Disclosures on finance leases, lessee

The asset acquired under a finance lease relates to a contract that the Company, has with Inversiones La Esperanza S.A., which began in June 1992 and ends on June 31, 2011, The agreement entered into indicates 230 installments of UF 663,75 each, with an annual interest rate of 8,5%,

The Company held financial leases as a tenant until July 2011, and for this reason there are no quotas or restrictions to report.

The net book value at September 30, 2011 amounted to ThUS$ 1,378 and at December 31, 2011  to ThUS$ 1,373.

The reconciliation between the total gross investment and the present value is detailed as follows:

	09.30.2011 ThUS$						12.31.2010 ThUS$
Minimum payments to be made	Gross investment		Deferred interest		Present value		Gross investment		Deferred interest			Present value
Not exceeding one year		-		-		-		213		(6	)		207
Total		-		-		-		213		(6	)		207

102

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 15 - Employee benefits

15.1 Accruals for employee benefits

	09.30.2011		12.31.2010
Types of benefits and expenses by employee	ThUS$		ThUS$
Current
Profit sharing and bonuses		22,054		44,011
Total		22,054		44,011
Non- current
Profit sharing and bonuses		2,683		800
Severance indemnities		25,943		27,208
Pension Plan		702		702
Total		29,328		28,710

15.2 Policies on defined benefit plan

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

Short-term benefits for active employees are represented by salaries, social welfare benefits, paid time off, sick leaves and other leaves, profit sharing and incentives and non-monetary benefits; e.g., healthcare services, housing, subsidized or free goods or services. These benefits will be paid over a term not exceeding twelve months.

The Company only has employee benefits for active employees, with the exception of SQM North America, as explained in 15.4 below.

For each incentive bonus delivered to the Company’s employees, there will be a disbursement in the first quarter of the following year calculated based on the net income for the period, applying a factor obtained subsequent to the employee evaluation process.

Employee benefits include bonuses for officers of the Company according to the price per share of the Company and are paid in cash. The short-term portion is presented as the current employee benefits accrual while the long-term portion is presented as non-current.

The bonus provided to the Company’s directors is calculated based on net income for the year at each year-end and will consider the application of a percentage factor.

The benefit relates to vacations (short-term benefits to employees) as provided in the Chilean Labor Code, which indicates that employees with more than a year of service will be entitled to annual holidays for a period of not less than fifteen paid business days. The Company provides the benefit of two additional vacation days.

103

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 15 - Employee benefits (continued)

15.2 Policies on defined benefit plan (continued)

Employee termination benefits are agreed upon and payable based on the last salary for each year of service to the Company or with certain maximum limits in respect to the number of years to be considered or with respect to monetary terms. In general, this benefit is payable when the employee or worker ceases to provide his/her services to the Company, and the right to collect can be obtained for different causes, as indicated in the respective agreements; e.g., retirement, dismissal, voluntary retirement, incapacity or disability, death, etc.

Law No, 19,728 published on May 14, 2001 and effective since October 01, 2002 required “Compulsory Unemployment Insurance” in favor of all dependent employees regulated by the Chilean Labor Code,  Article 5 of this law provided the financing of this insurance through monthly contribution payments by both the employee and the employer.

15.3 Other long-term benefits

Other long-term benefits relate to employee termination benefits and are recorded at their actuarial value.

	09.30.2011		12.31.2010
Employee termination benefits at actuarial value	ThUS$		ThUS$
Employee termination benefits, Chile		25,300		26,577
Other obligations in foreign companies		643		631
Total other non-current liabilities		25,943		27,208
SQM North America’s pension plan		702		702
Total post-employment obligations		702		702

Employee termination benefits have been calculated using the actuarial assessment method of the Company’s obligations with respect to employee termination benefits, which relate to defined benefit plans consisting of days of remuneration per year served at the time of retirement, under conditions agreed upon in the respective agreements established between the Company and its employees.

Under the indemnity fund benefit plan, the Company retains the obligation for the payment of employee termination benefits related to retirements without establishing a separate fund with specific assets, which is referred to as not funded. The discount interest rate of flows expected to be used was 6%.

Benefit payment conditions

The employee termination benefit relates to remuneration days per year worked for the Company with no limit on salary or years of service to the Company, when employees cease to work for the Company due to turnover or death. In this case, the maximum age for men is 65 years and 60 years old for women, which are the usual ages for retirement due to achieving the senior citizen age according to the Chilean pension system provided in Decree Law 3,500 of 1980.

104

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 15 - Employee benefits (continued)

15.3 Other long-term benefits (continued)

Methodology

The determination of the obligation for benefits under IAS 19, Projected Benefit Obligation (PBO) is described as follows:

To determine the Company's total liability, the Company used a mathematical simulation model that was programmed using a computer and processed the situation of each employee on an individual basis.

This model considered months as discrete time; i.e., the Company determined the age of each person and his/her salary on a monthly basis according to the growth rate, ThUS, information on each person was simulated from the beginning of the life of his/her employment contract or when he/she started earning benefits up to the month in which the person reaches the normal retirement age, generating in each period the possible retirement according to the Company’s turnover rate and the mortality rate according to the age reached, When he/she reaches retirement age, the employee finishes his/her service for the Company and receives indemnity related to retirement due to old age.

The methodology followed to determine the accrual for all employees covered by the agreements has considered turnover rates and the mortality rate RV-2010 established by the Chilean Superintendence of Securities and Insurance to calculate pension-related life insurance reserves in Chile according to the Accumulated Benefit Valuation or Accrued Cost of Benefit Method, This methodology is established in IAS 19 Retirement Benefit Costs.

15.4 Employee post-retirement obligations

Up to 2002, our subsidiary SQM North América, had agreed with its employees, a pension plan referred to as “SQM North America Retirement Income Plan”, whose obligation is calculated by measuring the expected future forecasted 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 authority for 2011 and 2010.

Since 2003, SQM North America, offers its employees, benefits associated to pensions based on system 401-k, which generates no obligations to the Company.

105

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 15 - Employee benefits (continued)

15.5 Employee termination benefits

Severance pays calculated at actuarial value present the movements below:

	09.30.2011 ThUS$			12.31.2010 ThUS$
Initial balance		(27,208	)		(28,682	)
Cost of current service		(4,291	)		(7,976	)
Interest cost		(1,106	)		(1,889	)
Actuarial gains/ losses		(104	)		88
Exchange rate difference		2,772			1,785
Benefits paid		3,994			9,466
Balance as of December 31		(25,943	)		(27,208	)

The severance pay liability is valued using the actuarial value method, for which purpose the company uses the following actuarial hypotheses:

		09.30.2011			12.31.2010
Mortality table	RV - 2010			RV - 2009
Real annual interest rate		6	%		6	%
Voluntary resignation turnover rate:
Men		0,9	%		0,9	%	annual
Women		1,53	%		1,53	%	annual
Salary increase		3,0	%		3,0	%	annual
Retirement age:
Men		65			65		years
Women		60			60		years

106

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 16 - Executive compensation plan

The Company counts on a compensation plan for its executives, by means of the granting of payments based on the SQM share price change, paid in cash, and the executives may exercise their rights until the year 2016.

Characteristics of the plan

This compensation plan is related with the company performance through the price of the Series B SQM share (Santiago Stock Exchange).

Participants in this plan

This compensation plan includes 46 executives of the Company, who are entitled to this benefit, provided they stay with the Company during the dates these options are executed. The dates for exercising the options will be the first 7 calendar days of May corresponding to the fiscal year.

Compensation

The compensation for each executive is the differential between the average prices of the share during April of each year compared to the base price established by Company’s management. The base price fixed by the Company for this compensation plan amounts to US$ 50 per share.

The Company reserves the right to exchange that benefit by shares or share options.

The movement of the options in effect for the period, the average prices for the fiscal year of the options and the average contractual life of the options in effect as of September 30, 2011 and December 31, 2010 are the following:

Movement for the period		09.30.2011		12.31.2010
In effect as of January 1		3,370,025		1,150,025
Granted during the fiscal year				2,370,000
Exercised  during the fiscal year		1,030,025		150,000
In circulation as of December 31		2,340,000		3,370,025
Average contractual life	51 months		60 months

The amounts accrued by the plan, as of September 30, 2011 and December 31, 2010, amount to:

Result effect	09.30.2011 ThUS$		12.31.2010 ThUS$
Amount accrued		9,300		22,782
Total accrued compensation		9,300		22,782

107

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 17 - Equity Disclosures

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

17.1 Capital management

The main object of capital management relative to the administration of the Company’s equity is to administer the capital of SQM group as follows:

- Ensure the regular conduct of operations and business continuity in the long term.

- Ensure financing of new investments in order to maintain steady growth.

- Have an adequate capital structure in accordance with the cycles of the economy that have an impact on the business and the nature of the industry.

- Maximize the value of SQM group in the mid and long term.

According to the foregoing, the capital requirements are included on the basis of the financing requirements of the group, 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. The Company manages its capital structure and makes adjustments on the basis of 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.

There have been no changes in the capital management objectives or policy within the years reported in this document.

17.2 Disclosures on preference share capital

Issued share capital is divided into 263,196,524 fully paid and subscribed shares with no par value composed of 142,819,552 Series "A" shares and 120,376,972 Series “B” shares, where both series are preferred shares.

The preferential voting rights for each series are detailed as follows:

Series “A”:

If the election of the President of the Company results in a tie vote, the Company's directors may vote once again, without the vote of the director elected by the Series B shareholders.

Series “B”:

1) A general or extraordinary shareholders' meeting may be called at the request of shareholders representing 5% of the Company's Series B shares.

2) An extraordinary meeting of the Board of Directors may be called with or without the agreement of the Company's President, at the request of the director elected by Series B shareholders.

As of September 30, 2011, December 31, 2010, the Group does not maintain shares in the parent company either directly or through its companies in which it has investments.

108

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 17 - Equity Disclosures (continued)

17.2 Disclosures on preference share capital (continued)

Detail of types of capital in preference shares:

Type of capital in preferred shares	09.30.2011				12.31.2010
Description of type of capital in preferred shares	A Series		B Series		A Series		B Series
Number of authorized shares		142,819,552		120,376,972		142,819,552		120,376,972
Par value of shares in ThUS$		-		-		-		-
Capital amount in shares ThUS$		134,750		342,636		134,750		342,636
Amount of premium issuance ThUS$		-		-		-		-
Amount of reserves ThUS$		-		-		-		-
Number of fully subscribed and paid shares		142,819,552		120,376,972		142,819,552		120,376,972
Number of subscribed, partially paid shares		-		-		-		-
Total number of subscribed shares		142,819,552		120,376,972		142,819,552		120,376,972

As of September 30, 2011, December 31, 2010, the Company has not placed any new issuances of shares on the market.

109

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 17 - Shareholders’ Equity Disclosures (continued)

17.3 Dividend policy

As required by Article 79 of the Chilean Shareholders’ Company Act. unless otherwise decided by unanimous vote of the holders of issued and subscribed shares, the Company must distribute a cash dividend in an amount equal to at least 30% of consolidated profit for the year ended December 31 unless and except to the extent that it has a deficit in retained earnings (losses not absorbed in prior years.)

The Company’s dividend policy for 2011 was detailed as follows:

- Distribution and payment in favor of each shareholder of a final dividend that will be equivalent to 50% of profit for the year obtained in 2011.

- Distribution and payment during 2011, of an interim dividend which is recorded against the aforementioned final dividend. This interim dividend was paid (see below) during the last quarter of 2011, and its amount did not exceed 50% of the retained earnings for distribution obtained during 2011, which are reflected in the Company’s financial statements as of September 30, 2011.

- The distribution and payment by the Company of the remaining balance of the final dividend related to profit for the year for the 2011 fiscal year in up to two installments, which must be effectively paid and distributed prior to June 30, 2012.

- An amount equivalent to the remaining 50% of the Company’s profit for the year for 2011 will be retained and destined to the financing of operations of one or more of the Company’s investment projects with no prejudice to the possible future capitalization of the entirety or a portion of this.

- The Board of Directors does not consider the payment of any additional or interim dividends.

- The Board of Directors considers as necessary to indicate that the aforementioned Dividends Policy correspond to the intention or expectation of the Board regarding this matter, Consequently, the enforcement of such Policy Dividends is necessarily conditioned to net incomes finally obtained, to the results indicating the Company’s regular forecasts or the existence of certain conditions that could affect them, Notwithstanding the above and to the extent that such policy dividend does not suffer a significant change, SQM S.A. will timely communicate its shareholders on this matter.

17.4 Interim dividends

At the Annual Board of Directors meeting held on April 28, 2011, the Directors unanimously agreed to pay a final dividend of US$0.7259 per share in relation to net profit for the year. Notwithstanding the above, US$ 0.41794 per share was already paid as an interim dividend, and this amount should be subtracted from the final dividend detailed above, In line with this, the balance, amounting to US$ 0.30798 per share, will be paid and distributed among shareholders of the Company who are registered with their respective shareholders ‘registry as of   the fifth business day prior to the day in which this dividend will be paid.

On November 23, 2010 the Board of the Company agreed to pay interim dividends amounting to ThUS$ 110,000, payable from December 15, 2010.

110

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 17 - Shareholders’ Equity Disclosures (continued)

17.4 Interim dividends (continued)

At a Board of Directors meeting held on April 29, 2010, the Directors unanimously agreed to reduce its distribution of dividends.  This means that a final dividend of US$ 0.62131 per share will be paid in relation to net profit for the year. Notwithstanding the above, US$ 0.37994 per share was already paid as an interim dividend, and this amount should be subtracted from the final dividend detailed above, In line with this, the balance, amounting to US$ 0.24137 per share, will be paid and distributed among shareholders of the Company who are registered with their respective shareholders ‘registry as of   the fifth business day prior to the day in which this dividend will be paid.

Dividends presented deducted from equity are:

	09.30.2011 ThUS$			12.31.2010 ThUS$
Final dividend		193,050			63,527
Interim dividend		(110,000	)		110,000
Minimum dividend accrual		-			5,831
Reversal of prior year minimum dividend		(5,831	)		-
Total		77,219			179,358

	2011 ThUS$		2010 ThUS$
Dividends attributable to owners of the parent		76,425		178,164
Dividends of non-parent ownerships		794		1,194
Total		77,219		179,358

Note 18 - Provisions and other non-financial liabilities

18.1 Types of provisions

Description of types of provisions	09.30.2011 ThUS$		12.31.2010 ThUS$
Other current provisions
Provision for legal complaints (*)		4,571		2,590
Other provisions – see below		8,927		12,424
Total		13,498		15,014
Other non-current provisions
Other provisions		3,000		2,000
Mine closers		3,500		3,500
Other current provisions		6,500		5,500

111

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 18 - Provisions and other non-financial liabilities (continued)

18.1 Types of provisions (continued)

(*) Provisions for legal complaints relate to legal expenses for lawsuits whose resolution are pending, and correspond to funds estimated necessary to make the disbursement of expenses incurred for this purpose.

This provision relates mainly to the litigation of its subsidiary located in Brazil and United States (see note 19.1. number 2) and other minor litigations.

18.2 Description of other provisions

Description of other provisions	09.30.2011 ThUS$		12.31.2010 ThUS$
Current provisions, other provisions
Provision for tax loss in fiscal litigation		1,457		1,634
Royalties, agreement with CORFO (the Chilean Economic Development Agency)		6,064		5,182
Temporary closer of “El Toco operation”		-		3,264
Retirement plan		-		880
Miscellaneous provisions		1,406		1,464
Total		8,927		12,424
Other long-term provisions
Mine closure		3,500		3,500
Total		3,500		3,500

18.3 Other non-financial liabilities, current

Description of other liabilities	09.30.2011 ThUS$		12.31.2010 ThUS$
Tax withholdings		681		5,529
VAT payable		1,270		12,416
Guarantees received		1,061		1,028
Accrual for minimum dividend		-		4,637
Monthly tax provisional payments		10,894		8,171
Deferred income		59,849		14,350
Withholdings from employees and salaries payable		5,101		4,936
Vacation accrual		13,706		14,854
Other current liabilities		56		1,538
Total		92,618		67,459

112

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 18 - Provisions and other non-financial liabilities (continued)

18.3 Movements in provisions as of September 30, 2011

Description of items that gave rise to variations	Legal complaints			Dismantling, cost of restoration and rehabilitation		Other provisions			Total
	ThUS$			ThUS$		ThUS$			ThUS$
Total provisions, initial balance		4,590			3,500		12,424			20,514
Additional provisions		3,000			-		7,464			10,464
Provision used		(19	)		-		(10,795	)		(10,814	)
Increase (decrease) in foreign currency translation		-			-		(166	)		(166	)
Total provisions, final balance		7,571			3,500		8,927			19,998

18.4 Movements in provisions as of December 31, 2010

Description of items that gave rise to variations	Legal complaints		Dismantling, cost of restoration and rehabilitation		Other provisions			Total
	ThUS$		ThUS$		ThUS$			ThUS$
Total provisions, initial balance		590		3,500		15,852			19,942
Additional provisions		4,000		-		14,301			18,301
Provision used		-		-		(17,803	)		(17,803	)
Increase (decrease) in foreign currency translation		-		-		74			74
Total provisions, final balance		4,590		3,500		12,424			20,514

113

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 18 - Provisions and other non-financial liabilities (continued)

18.5 Detail of main types of provisions and other non-financial  liabilities

Legal expenses: this provision depends on the pending resolution of a legal lawsuit (incurred mainly in Brazil and U.S.A.)

Tax accrual in tax litigation: this accrual relates to lawsuits pending resolution related to taxes in Brazil for two of our subsidiaries, SQM Brazil and NNC.

CORFO (Economic Development Agency) Royalties agreement: relates to the commercialization of mining properties that SQM Salar S.A. pays the Economic Development Agency for on a quarterly basis.  The amount of the lease payable is calculated based on sales of products extracted from the Atacama Saltpeter deposit.

The settlement of the aforementioned amounts is performed on a quarterly basis,

Temporary closure of El Toco operation: The Company’s Board of Directors unanimously agreed to approve the temporary closure of the Toco and Pampa Blanca mining sectors.  The Company accrued a legal severance indemnity for the employees subject to this closure. Additional benefits that will be paid to employees will correspond to 2010 expenses.

Retirement plan: corresponds to a benefit agreed upon with employees to retire from the Company.  Those employees who invoked the agreed-upon plan signed their consent as of December 31, 2010.   The effective retirement date was during 2010, but part of this benefit is pending for 2011.

Note 19 - Contingencies and restrictions

According to note 18,1 the Company has only registered a provision for those lawsuits in which the probability to lose is “more likely than not”,  The Company is party to lawsuits and other relevant legal actions that are detailed as follows:

19.1 Lawsuits and other relevant events

1. Plaintiff	:	Compañía de Salitre y Yodo Soledad S.A.
Defendant	:	Sociedad Química y Minera de Chile S.A.
Date	:	December 1994
Court	:	Civil Court in Pozo Almonte
Reason	:	Nullity of mining concession Cesard 1 to 29
Status	:	Lower court decision in favor of SQM.  Appellate court decision pending
Nominal value	:	ThUS$ 211

114

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 19 - Contingencies and restrictions (continued)

19.1 Lawsuits and other relevant events (continued)

2.	Plaintiffs	:	JB Comércio de Fertilizantes e Defensivos Agrícolas Ltda. (JB)
	Defendants	:	Nitratos Naturais do Chile Ltda. (NNC)
	Date	:	December 1995
	Court	:	MM 1ª, Vara Civel de Comarca de Barueri, Brasil.
	Reason	:	Compensation claim filed by JB against NNC for having appointed a distributor in a territory of Brazil for which JB had an exclusive contract.
	Status	:	Lower court ruling against  Nitratos Naturais do Chile Ltda. and appeal filed by the latter
	Nominal value	:	ThUS$1,800

3.	Plaintiff	:	Compañía Productora de Yodo y Sales S.A.
	Defendant	:	Sociedad Química y Minera de Chile S.A.
	Date	:	November 1999
	Court	:	Civil Court in Pozo Almonte
	Reason	:	Nullity of mining concession Paz II 1 to 25
	Status	:	Lower court decision in favor of SQM.  Appellate court decision pending
	Nominal value	:	ThUS$ 162

4.	Plaintiff	:	Compañía Productora de Yodo y Sales S.A.
	Defendant	:	Sociedad Química y Minera de Chile S.A.
	Date	:	November 1999
	Court	:	Civil Court in Pozo Almonte
	Reason	:	Nullity of mining concession Paz III 1 to 25
	Status	:	Lower court decision in favor of SQM.  Appellate court decision pending
	Nominal value	:	ThUS$ 204
5.	Plaintiff	:	Nancy Erika Urra Muñoz
	Defendants	:	Fresia Flores Zamorano, Duratec-Vinilit S.A. and SQM S.A. and their insurers
	Date	:	December 2008
	Court	:	1st Civil Court of Santiago
	Reason	:	Labor Accident
	Status	:	Evidence
	Nominal value	:	ThUS$ 550

6.	Plaintiffs	:	Eduardo Fajardo Nuñez, Ana Maria Canales Poblete, Raquel Beltran Parra, Eduardo Fajardo Beltran and Martina Fajardo Beltran.
	Defendants	:	SQM Salar S.A. and insured parties
	Date	:	November 2009
	Court	:	20th Civil Court in Santiago
	Reason	:	Labor accident
	Status	:	Evidence
	Nominal value	:	ThUS$ 1,880

115

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 19 - Contingencies and restrictions (continued)

19.1 Lawsuits and other relevant events (continued)

7.  Plaintiff	:	Newland S,A,
Defendant	:	SQM Industrial S.A.
Date	:	August 2010
Court	:	Arbitral Court
Reason	:	Claim for damages due to alleged breach of obligations
Status	:	Ruling against SQMI.  Complaint appeal pending
Nominal value	:	ThUS$480
8. Plaintiffs	:	María Loreto Lorca Morales, Nathan Guerrero Lorca, Maryori Guerrero Lorca, Abraham Guerrero Lorca, Esteban Guerrero Lorca and María Sol Osorio Tapia et all
Defendants	:	Gonzalo Daved Valenzuela, Julio Zamorano Avendaño, Comercial Transportes y Servicios Generales Julio Zamorano Avendaño E.I.R.L. And in solidum SQM S.A. and insurers
Date	:	August 2010
Court	:	2nd Civil Court of Iquique
Reason	:	Claim for damages resulting from the crash of two trucks in July 2008 near Pozo Almonte, causing the death of Mr. Alberto Galleguillos Monardes And Mr. Fernando Guerrero Tapia
Status	:	Evidence submitted.
Nominal value	:	ThUS$3,500
9.  Plaintiff	:	Sociedad Chilena del Litio Ltda.
Defendant	:	SQM Salar S.A.
Date	:	December 2010
Court	:	Arbitral
Reason	:	Payment of sales prices
Status	:	At hearing stage
Nominal value	:	ThUS$2,000

116

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 19 - Contingencies and restrictions (continued)

19.1 Lawsuits and other relevant events (continued)

10. Plaintiff	:	City of Pomona, California USA
Defendant	:	SQM North America Corp (SQM NA)
		The lawsuit also was filed against Sociedad Química y Minera de Chile S.A. this lawsuit has not yet been notified to the Company
Date	:	December 2010
Court	:	United States District Court for the Central District of California
Reason	:	Claim for damages incurred by the city of Pomona, as a result of the alleged responsibility in the perchlorate contamination of municipal underground water wells that feed the freshwater system in the city
Status	:	Claim.
Nominal value	:	Unspecified
11. Plaintiff	:	City of Lindsay, California USA
Defendant	:	SQM North America Corp (SQM NA)
		The lawsuit also was filed against Sociedad Química y Minera de Chile S.A. this lawsuit has not yet been notified to the Company
Date	:	December 2010
Court	:	United States District Court for the Eastern District of California
Reason	:	Claim for damages incurred by the city of Lindsay, as a result of the alleged responsibility in perchlorate contamination of municipal underground water wells that feed the freshwater system in the city
Status	:	Claim.
Nominal value	:	Unspecified
12. Plaintiff	:	Alejandro Tapia Moyano
Defendant	:	SQM Nitratos S.A.
Date	:	February 2011
Court	:	Labour Court of Antofagasta
Reason	:	Compensation for moral damage for illness allegedly acquired as the results of works performed
Status	:	Hearing trial
Nominal value	:	ThUS$200
13. Plaintiff	:	Metalúrgica FAT Limitada
Defendant	:	SQM Salar S.A.
Date	:	August  2011
Court	:	9th Civil Court in Santiago
Reason	:	Compensation for early termination of supply contract and installation of metal structures.
Status	:	Claim reply
Nominal value	:	~THUS$175
14. Plaintiff	:	Nueva Victoria Mining Company Workers Union
Defendant	:	SQM S.A. y SQM Industrial S.A.
Date	:	October 2011
Court	:	Pozo Almonte  Labor Court
Reason	:	Protection of basic rights with compensation action for derived injury to honor, reputation, affections or sentiments,  all of the above due to the implementation of an ordinary or extraordinary work day
Status	:	Claim reply
Nominal value	:	~THUS$9,000

117

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 19 - Contingencies and restrictions (continued)

19.1 Lawsuits and other relevant events (continued)

The Company has been involved and will probably continue being involved either as plaintiffs or defendants in certain judicial proceedings that have been and will be heard by the Arbitral 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.

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 ThUS$ 700.

The Company has made efforts and continues making efforts to obtain payment of certain amounts that are still owed it on occasion of their 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.

The Company has not received legal notice of any claims other than those mentioned in paragraph I above. The claims detailed above seek to annul certain mining claims that were purchased by SQM S.A. and Subsidiaries, the proportional purchase value of which, with respect to the portion affected by the superimposition, exceeds the nominal and approximate amount of ThUS$ 150. The claims seek payment of certain amounts allegedly owed by the Company due to its own activities, which exceed the approximate nominal and individual amount of ThUS$ 150.

19.2   Restrictions

Bank loans of the Company have similar restrictions to the loans of a similar nature that have been valid at the appropriate times and that amongst others relate to maximum indebtedness and minimum equity. Save for the foregoing. The Company, is not exposed to other restrictions or limits on financial indicators relating to contracts and agreements with creditors.

19.3   Commitment

The subsidiary SQM Salar S.A. has signed a rental contract with the Economic Development Agency (CORFO), which establishes that this subsidiary will pay rent to CORFO for the concept of commercialization of certain mining properties owned by CORFO and for the products resulting from this commercialization. The annual rent stated in the aforementioned contract is calculated on the basis of sales of each type of product. The contract is in force until 2030, and rent began being paid in 1996 reflecting an expense amount of ThUS$ 16,885 as of September 30, 2011 (ThUS$ 18,717 as of December 31, 2010).

19.4   Restricted or pledged cash

The subsidiary Isapre Norte Grande S.A. in compliance with that 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 sum 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, 2011, the guarantee amounts to ThUS$ 487.

118

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 19 - Contingencies and restrictions (continued)

19.5 Collateral received from third parties

The main collateral received from third parties (distributors) to guarantee Soquimich Comercial S.A.’s compliance with obligations in contracts of commercial mandates for the distribution and sale of fertilizers amounted to ThUS$6,174 as of September 30, 2011; as of December 31, 2010 these amounted to ThUS $6,389 which is detailed as follows:

Entity name	09.30.2011 ThUS$		12.31.2010 ThUS$
Llanos y Wammes Soc. Com. Ltda		1,916		2,037
Fertglobal Chile Ltda.		3,258		3,352
Tattersall Agroinsumos S.A.		1,000		1,000

119

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 19 - Contingencies and restrictions (continued)

19.6  Indirect guarantees

Guarantees in which there is no pending balance indirectly reflect that the respective guarantees are in force and approved by the Company's Board of Directors and have not been used by the respective subsidiary.

Creditor of the guarantee	Debtor			Pending balances as of the closing date of the financial statements
	Name	Relationship	Type of guarantee	09.30.2011 ThUS$		12.31.2010 ThUS$
Australian and New Zealand Bank	SQM North America  Corp	Subsidiary	Bond		-		-
Australian and New Zealand Bank	SQM Europe N.V.	Subsidiary	Bond		-		-
Generale Bank	SQM North America  Corp	Subsidiary	Bond		-		-
Generale Bank	SQM Europe N.V.	Subsidiary	Bond		-		-
Kredietbank	SQM North America  Corp	Subsidiary	Bond		-		-
Kredietbank	SQM Europe N.V.	Subsidiary	Bond		-		-
Banks and financial institutions	SQM Investment Corp. N.V.	Subsidiary	Bond		-		-
Banks and financial institutions	SQM Europe N.V.	Subsidiary	Bond		-		-
Banks and financial institutions	SQM North America  Corp	Subsidiary	Bond		-		-
Banks and financial institutions	Nitratos Naturais do Chile Ltda.	Subsidiary	Bond		-		-
Banks and financial institutions	SQM México S.A. de C.V.	Subsidiary	Bond		-		-
Banks and financial institutions	SQM Brasil Ltda.	Subsidiary	Bond		-		-
BNP	SQM Investment Corp. N.V.	Subsidiary	Bond		-		-
Sociedad Nacional de Mineria A.G.	SQM Potasio S.A.	Subsidiary	Bond		-		-
ING Capital LLC	Royal Seed Trading A.V.V.	Subsidiary	Bond		80,200		80,055
Scotiabank & Trust (Cayman) Ltd.	Royal Seed Trading A.V.V.	Subsidiary	Bond		50,034		-
JP Morgan Chase Bank	SQM Industrial S.A.	Subsidiary	Bond		-		-
The Bank of Nova Scotia	SQM Investment Corp. N.V.	Subsidiary	Bond		-		-
Morgan Stanley Capital Services	Royal Seef Trading	Subsidiary	Bond		-		-

120

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 20 - Revenue

As of September 30, 2011 and 2010, revenue is detailed as follows:

	09.30.2011		09,30,2010
	ThUS$		ThUS$
Sales of goods		1,601,377		1,319,751
Provision of services		5,002		4,985
Total		1,606,379		1,324,736

Note 21 - Earnings per Share

Basic earnings per share are calculated by dividing net income attributable to the Company’s shareholders by the weighted average of the number of shares in circulation during that period,

As expressed, earnings per share are detailed as follows:

Earnings per share	09.30.2011 ThUS$		09,30,2010 ThUS$
Earnings attributable to owners of the parent		386,862		276,325

	09.30.2011 Units		09,30,2010 Units
Number of common shares in circulation		263,196,524		263,196,524

	09.30.2011	09,30,2010
Basic and diluted earnings per share (US$ per share)	1.4699	1.0499

The Company has not made any operation with a potential dilutive effect that assumes diluted earnings per share different from the basic earnings per share.

121

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 22 - Loan costs

The cost of interest is recognized as expenses in the year in which it is incurred, except for interest that is directly related to the acquisition and construction of tangible property, plant and equipment assets and that complies with the requirements of IAS 23. As of September 30, 2011, total interest expenses incurred amount to ThUS$15,897 (ThUS$19,547 as of September 30, 2010.)

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

Costs of capitalized interest, property, plant and equipment

The cost of capitalized interest is determined by applying the average or weighted average of all financing costs incurred by the Company to the monthly end balances of works-in-progress meeting the requirements of IAS 23.

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

	09.30.2011		09,30,2010
Capitalization rate of costs for capitalized interest, property, plant and equipment	7	%	7	%
Amount of costs for interest capitalized in ThUS$	15,897		19,547

Note 23 - Effect of variations in the foreign currency exchange rates

a) Foreign currency exchange differences recognized in profit or loss except for financial instruments measured at fair value through profit or loss

	09.30.2011 ThUS$			09,30,2010 ThUS$
Conversion foreign exchange gains (losses) recognized in the result of the year.		(18,987	)		(6,875	)
Conversion foreign exchange reserves attributable to the owners of the controlling entity.		(1,532	)		345
Conversion foreign exchange reserves attributable to the non-controlling entity.		(114	)		243

122

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 23 - Effect of variations in the foreign currency exchange rates (continued)

b) Reserves for foreign currency exchange differences

As of September 30, 2011 and December 31, 2010, foreign currency exchange differences are detailed as follows:

Detail	09.30.2011 ThUS$			12.31.2010 ThUS$
Changes in equity generated through the equity method
Comercial Hydro S.A.		937			937
SQMC Internacional Ltda.		22			41
Proinsa Ltda.		17			31
Agrorama Callegari Ltda.		100			161
Isapre Cruz del Norte Ltda.		55			99
Almacenes y Depósitos Ltda.		57			90
Sales de Magnesio Ltda.		142			132
Sociedad de Servicios de Salud S.A.		24			39
Agrorama S.A.		(12	)		-
Doktor Tarsa		(1.348	)		-
Nutrisi Holding		42			-
Ajay Europe		59			-
Misr Specialty Ferti		(39	)		-
SQM Eastmed Turkey		(12	)		-
Charlee SQM (Thailand) Co. Lta.		(50	)		-
Coromandel SQM India		4			-
Total		(2	)		1.530

c) Functional and presentation currency

The functional currency of the aforementioned entities is the Chilean peso and the presentation currency is the United States dollar.

d) Reasons to use one presentation currency and a different functional currency

- The total revenues of these subsidiaries are associated with the Chilean peso.

- The commercialization cost structure of these companies is affected by the local currency.

- The equities of these companies are expressed in local currency (Chilean peso).

Note 24 - The environment

24.1 Disclosures of disbursements related to the environment

The Company is continuously concerned with protecting the environment both in its production processes and with respect to products manufactured. This commitment is supported by the principles indicated in the Company’s Sustainable Development 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

123

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.1 Disclosures of disbursements related to the environment (continued)

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, due to their low waste-to-mineral ratio, generate remaining deposits that slightly alter the environment, A portion of the ore extracted is crushed, a process in which particle emissions occur.  Currently this operation is conducted only at the Pedro de Valdivia worksite,  In the María Elena location, crushing units used to operate that affected the air quality. The Company has implemented a range of mitigating actions that have led to a notable improvement in air quality at Maria Elena, and beginning in March 2010, no ore crushing process is conducted in the Maria Elena sector.

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 MP 10 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 successfully implemented since 2007.

The Company carries out environmental follow-up and monitoring plans based on specialized scientific studies, and it also provides an annual training program in environmental matters to both its direct employees and its contractors’ employees, Within this context, the Company entered into a contract with the National Forestry Corporation (CONAF) aimed at researching the activities of flamingo groups that live in the Salar de Atacama (Atacama Saltpeter Deposit) lagoons. Such research includes a population count of the birds, as well as breeding research. Environmental monitoring activities carried out by the Company at the Salar de Atacama and other systems in which it operates are supported by a number of studies that have integrated diverse scientific efforts from prestigious research centers, including Dictuc from the Pontificia Universidad Católica in Santiago and the School of Agricultural Science of the Universidad de Chile.

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 and the Nueva Victoria plants, This effort is being accompanied by cultural initiatives within the community and the organization of exhibits in local and regional museums.

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, and in order to do so, it acts both individually and in conjunction with private and public entities.

124

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.2 Detail of information on disbursements related to the environment

The accumulated disbursements in which the Company incurred as of September 30, 2011 for the concept of investments in production processes, verification and control of compliance with ordinances and laws relative to industrial processes and facilities, including prior year disbursements related to these projects amounted to ThUS$ 15,847 and are detailed as follows:

125

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.2 Detail of information on disbursements related to the environment

Accumulated expenses as of September 30, 2011

Identification of the Parent Company or subsidiary	Name of the project with which the disbursement is associated	Concept for which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$	Certain or estimated date on which disbursements were or will be made
SQM Industrial S.A.	Environmental Management  (Expenditure 2011 at June)	Not classified	Expense	Not classified	940	12-31-2011
SQM Industrial S.A.	SQ7X - Reach 2011-2013	Support	Expense	Not classified	29	01-31-2014
SQM Industrial S.A.	ANMI – Consulting  Infrastructure for storage of harmful chemical substances	Support: Environment and Risk Prevention	Asset	Development	46	06-30-2011
SQM Industrial S.A.	FNWR - EIS Pampa Blanca Discard yard	Support: Environment and Risk Prevention	Expense	Development	30	12-31-2011
SQM Industrial S.A.	FP55 - FPXA - EIA Zone Mina PB - EIA PB Expansion  (Projects: Ocean water - Pampa Blanca - Agua de Mar Phase I)	Support	Asset	Development	1.614	12-31-2012
SQM Industrial S.A.	JNTU - San Isidro Water Evaluation	Support: Environment and Risk Prevention	Asset	Not classified	556	12-31-2011
SQM Industrial S.A.	JPX9 - EIS Improvement Coya Sur Prilling and Granulation  Plant  (Project:  DT Pilot Plant and Pilot tests on Resin)	Support: Research and Development	Asset	Research	11	06-30-2011
SQM Industrial S.A.	MNYS -   Diffusion Measures for Cultural Heritage and Technology Changes  - Maria Elena	Support: Environment and Risk Prevention	Asset	Not classified	29	12-01-2011
SQM Industrial S.A.	MP17 – Potable Water Chlorination Standardizing   ME/CS/PV	Support	Asset	Not classified	7	06-30-2011
SQM Industrial S.A.	MP5W –Standardization of Fuel TKs	Support	Asset	Not classified	444	12-31-2011
SQM Industrial S.A.	MPIS - Stabilization of roads and dust control on sidewalks	Support	Asset	Development	736	06-30-2011
SQM Industrial S.A.	MPL5 – Repair of sanitary and electric services	Support	Asset	Development	184	06-30-2011
SQM Industrial S.A.	MPLS – Automating of alarms and Hospital Monitoring Station information	Not classified	Asset	Not classified	10	06-30-2011
SQM Industrial S.A.	MQ51 – Reference terms of equity measures -   ME Project	Support: Environment and Risk Prevention	Expense	Not classified	2	12-31-2011
SQM Industrial S.A.	PPNK – Management of  PV Ammonia during plant detention	Support: Environment and Risk Prevention	Asset	Not classified	22	12-31-2011

126

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.2 Detail of information on disbursements related to the environment (continued)

Accumulated expenses as of September 30, 2011 (continued)

Identification of the Parent Company or subsidiary	Name of the project with which the disbursement is associated	Concept for which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$	Certain or estimated date on which disbursements were or will be made
SQM Industrial S.A.	PPZU – Standardize and Certify Plant Fuel Tanks	Support: Environment and Risk Prevention	Asset-Expense	Not classified	546	12-01-2011
SQM Industrial S.A.	JQ8K - EIS Line 4 Drying Plant, Coya Sur (Project: Line 4 Drying Plant)	Expansion of Capacity	Asset	Development	12	09-01-2012
SQM Industrial S.A.	MQ7P - ME replacement of sewer lids in town	Support	Expense	Not classified	16	12-31-2011
SQM Industrial S.A.	IQ8G – Improvement of money exchange office, offices, and facilities	Support	Asset	Not classified	10	12-31-2011
SQM Industrial S.A.	JQB6 – EIS Plant NPT4, Coya Sur (Project: NPTIV)	Expansion of Capacity	Asset	Development	2	04-30-2012
SQM Industrial S.A.	TQ78 – Motorized sweepers	Support: Equipment Replacement	Asset	Development	189	12-31-2011
Minera Nueva Victoria S.A.	IPMN – Sanitary Capacity Expansion -  Iris	Expansion of Capacity	Asset	Development	85	06-30-2011
Minera Nueva Victoria S.A.	IPNW – Pavilion improvements  C/D/B at Iris	Support	Asset	Not classified	44	08-31-2011
Minera Nueva Victoria S.A.	IQ4C – Camp Development (Osmosis and Others)	Expansion of Capacity	Asset	Not classified	1.047	12-31-2012
SIT S.A.	TPLR – Implementation pumping sewage water to sewer system	Support: Environment and Risk Prevention	Asset	Not classified	68	06-30-2011
SIT S.A.	TPM7 – Environmental screens for yards  3 and 4	Not classified	Asset - Expense	Not classified	524	06-30-2011
SIT S.A.	TPR8 – Elimination of riles generation by aspiration	Support: Environment and Risk Prevention	Asset - Expense	Not classified	64	12-31-2011
SIT S.A.	TPYX -  Dust collector enabling  of and seal field  3 Tocopilla	Support: Environment and Risk Prevention	Asset	Development	672	12-31-2011
SIT S.A.	TQAV – Paving roads - IV	Support: Environment and Risk Prevention	Expense	Development	1	12-01-2011
SQM S.A.	AQ0A – Drilling 4 wells, replacement of drill  tip   Pampa del Tamarugal Catchment	Support: Natural Resources	Asset	Development	458	12-31-2011

127

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.2 Detail of information on disbursements related to the environment (continued)

Accumulated expenses as of September 30, 2011 (continued)

Identification of the Parent Company or subsidiary	Name of the project with which the disbursement is associated	Concept for which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$	Certain or estimated date on which disbursements were or will be made
SQM S.A.	IPFT -   Cultural Heritage -  Region I	Support: Environment and Risk Prevention	Expense	Not classified	127	12-31-2011
SQM S.A.	IPXE – Environmental follow-up plan - Salar de Llamara	Support: Environment and Risk Prevention	Expense	Not classified	310	12-31-2012
SQM S.A.	IPXF - Environmental follow-up plan - Pampa del Tamarugal	Support: Environment and Risk Prevention	Expense	Not classified	63	12-31-2012
SQM S.A.	IQ08 - PSA Llamara & Pampa del Tamarugal	Support: Natural Resources	Expense	Development	1.733	12-31-2011
SQM S.A.	IQ0C – Assessment of NV Mining zone	Support: Environment and Risk Prevention	Expense	Not classified	60	12-31-2011
SQM S.A.	IQ1K – Construction of 3 observation pits in Sur Viejo	Support: Natural Resources	Asset	Development	162	12-31-2011
SQM S.A.	IQ1M - PSA Re-injection of water to Puquíos Llamara	Not classified	Asset	Not classified	732	12-31-2011
SQM S.A.	IQ3S – Standardizing of Harmful Substance Handling	Support: Environment and Risk Prevention	Asset	Not classified	85	12-31-2012
SQM S.A.	IQ52 – Environment Office - Nueva Victoria	Not classified	Asset	Not classified	27	12-31-2011
SQM S.A.	IQ53 - Cultural Heritage adduction layout - Soronal (Pampa Hermosa)	Support: Environment and Risk Prevention	Asset	Not classified	3	12-31-2011
SQM S.A.	IQ54 - Cultural Heritage - Pampa Hermosa	Support: Environment and Risk Prevention	Asset	Not classified	116	12-31-2012
SQM S.A.	SCI6 - Environmental Studies - Region I Project	Not classified	Asset	Not classified	2.378	12-31-2011
SQM S.A.	IQ6M – EIS Expansion Nueva Victoria Sur Mine	Support: Natural Resources	Asset	Not classified	7	01-31-2012
SQM S.A.	IQ9V –  Quillagua Project	Not classified	Asset-Expense	Not classified	19	12-31-2014
SQM Nitratos S.A	IP6W - Riles Treatment Plant	Support: Environment and Risk Prevention	Asset	Not classified	39	06-30-2011
SQM Nitratos S.A	PP0V – Environmental Maintenance Projects  ME-PV-NV-PB	Support: Environment and Risk Prevention	Asset - Expense	Development	82	06-30-2011
SQM Salar S.A	CPTP – Installation of emergency showers- potable water	Support	Asset	Not classified	26	12-31-2011

128

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.2 Detail of information on disbursements related to the environment (continued)

Accumulated expenses as of September 30, 2011 (continued)

Identification of the Parent Company or subsidiary	Name of the project with which the disbursement is associated	Concept for which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$		Certain or estimated date on which disbursements were or will be made
SQM Salar S.A	CPZH – Waste Management, Filters, Hydroxide press	Support: Environment and Risk Prevention	Expense	Not classified		41		12-31-2012
SQM Salar S.A	LP5J – Hydro Reloading Study - Salar de Atacama	Support: Environment and Risk Prevention	Expense	Research		107		12-31-2011
SQM Salar S.A	LP82 – Agricultural promotion project in areas near the Salar	Support	Expense	Development		624		12-31-2014
SQM Salar S.A	LPTF – Environmental Study and Survey  2010	Support	Expense	Not classified		358		12-31-2011
SQM Salar S.A	LPTJ -  Sanitary works improvements	Support	Asset	Not classified		206		12-31-2011
SQM Salar S.A	LQ38 –  Mud drying yard	Support: Environment and Risk Prevention	Asset-Expense	Not classified		26		12-31-2011
SQM Salar S.A	CQ8U – New exchange room  CL-HL	Expansion of Capacity	Asset	Not classified		101		12-31-2011
SQM Salar S.A	LQAK – waste rooms  -MOP and  SOP	Support	Expense	Not classified		17		12-31-2011
				Total		15.847

129

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.2 Detail of information on disbursements related to the environment (continued)

Future expenses

Identification of the Parent Company or subsidiary	Name of the project with which the disbursement is associated	Concept for which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$		Certain or estimated date on which disbursements were or will be made
SQM Industrial S.A.	Environmental Management Office  2011 Budget - Expenditure at June 2011)	Not classified	Expense	Not classified		861		12-31-2011
SQM Industrial S.A.	SQ7X - Reach 2011-2013	Support	Expense	Not classified		702		01-31-2014
SQM Industrial S.A.	ANMI – Consulting for Infrastructure for storage of Harmful chemical substances	Support: Risk prevention and the environment	Asset	Development		4		06-30-2011
SQM Industrial S.A.	FP55 - FPXA - EIA Mining Zone PB - EIA PB Expansion (Projects: Ocean water - Pampa Blanca - Agua de Mar Phase I)	Support	Asset	Development		131		12-31-2012
SQM Industrial S.A.	IQ5B – Confection of cement slab for transfer pumps	Expansion of Capacity	Asset	Not classified		110		12-01-2011
SQM Industrial S.A.	MNYS - Diffusion Measures for Cultural Heritage and Technology Changes    Maria Elena	Support: Risk prevention and the environment	Asset	Not classified		107		12-01-2011
SQM Industrial S.A.	MP5W – Standardization of Fuel TKs	Support	Asset	Not classified		656		12-31-2011
SQM Industrial S.A.	MPQU – Construction of warehouse for harmful chemical substances	Support: Risk prevention and the environment	Asset	Development		488		12-31-2011
SQM Industrial S.A.	PPC1 – Eliminate PCB switches in substations 3 and 1/12 Pedro de Valdivia	Support: Equipment Replacement	Asset - Expense	Not classified		171		12-31-2012
SQM Industrial S.A.	PPNK – Management of PV Ammonia during plant detention	Support: Risk prevention and the environment	Asset	Not classified		183		12-31-2011
SQM Industrial S.A.	PPZU – Standardize and Certify Plant Fuel Tanks	Support: Risk prevention and the environment	Asset	Not classified		2.954		12-01-2011
SQM Industrial S.A.	JQ8K - EIS Line 4 Drying Plant, Coya Sur (Project: Line 4 Drying)	Expansion of Capacity	Asset	Development		18		09-01-2012
SQM Industrial S.A.	IQ8G – Improvement of exchange office, offices, and facilities	Support	Asset	Not classified		65		12-31-2011
SQM Industrial S.A.	MQ8M – Reconditioning of monitoring station-  ME	Support: Repair	Asset	Not classified		8		12-31-2011

130

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.2 Detail of information on disbursements related to the environment (continued)

Future expenses (continued)

Identification of the Parent Company or subsidiary	Name of the project with which the disbursement is associated	Concept for which the disbursement was made  or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period  ThUS$		Certain or estimated date on which disbursements were or will be made
SQM Industrial S.A.	MQ7P - ME replacement of town’s sewer lids	Support	Asset	Not classified		4		12-31-2011
SQM Industrial S.A.	JQB6 – EIS Plant NPT4, Coya Sur (Project: NPTIV)	Expansion of Capacity	Asset	Development		53		04-30-2012
SQM Industrial S.A.	TQA2 – Sewage System improvement  Villa Prat	Not classified	Expense	Not classified		170		12-30-2012
SQM Industrial S.A.	MOAJ –  Improvement of sewage and potable water systems in Camp   commitment P. Contesse with DDSS)	Not classified	Expense	Not classified		300		12-31-2011
SQM Industrial S.A.	MQA8 – Standardization gas networks in peripheral casinos  (stage 1:project)	Not classified	Asset	Not classified		150		12-30-2011
SQM Industrial S.A.	MQBM – Implementation Archeological study - Maria Elena - Toco	Support: Environment and Risk Prevention	Asset	Not classified		81		12-31-2011
Minera Nueva Victoria S.A.	IQ4C – Development of Camp  (Osmosis and Others)	Expansion of Capacity	Asset	Not classified		2.033		12-31-2012
SIT S.A.	TPR8 – Elimination of riles generation by means of aspiration	Support: Environment and Risk Prevention	Asset - Expense	Not classified		86		12-31-2011
SIT S.A.	TPYX -  Dust collector enabling  of and seal field  3 Tocopilla	Support: Environment and Risk Prevention	Asset	Development		227		12-31-2011
SIT S.A.	MQ6Y -  Maintenance and repair of exchange office in ME and Tocopilla	Support: Environment and Risk Prevention	Asset	Not classified		20		12-30-2011
SIT S.A.	TQAP – Paving Yards N° 3 and N° 4	Expansion of Capacity	Expense	Not classified		1.105		10-30-2012
SIT S.A.	TQAV – Paving of roads - IV	Support: Environment and Risk Prevention	Expense	Development		299		12-01-2011
SQM S.A.	AQ0A –Drilling of 4 Wells, replacement of drill tip, Pampa del Tamarugal Catchment	Support: Natural Resources	Asset	Development		138		12-31-2011
SQM S.A.	IPFT -  Cultural Heritage Region  I	Support: Environment and Risk Prevention	Expense	Not classified		96		12-31-2011

131

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.2 Detail of information on disbursements related to the environment (continued)

Future expenses (continued)

Identification of the Parent Company or subsidiary	Name of the project with which the disbursement is associated	Concept for which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$		Certain or estimated date on which disbursements were or will be made
SQM S.A.	IPXE - Environmental monitoring plan Salar de Llamara	Support: Environment and Risk Prevention	Expense	Not classified		1.117		12-31-2012
SQM S.A.	IPXF - Environmental monitoring plan Pampa del Tamarugal	Support: Environment and Risk Prevention	Expense	Not classified		1.584		12-31-2012
SQM S.A.	IQ08 - PSA Llamara & Pampa of the Tamarugal	Support: Natural Resources	Expense	Development		124		12-31-2011
SQM S.A.	IQ0C – Assessment of NV Mining zone	Support: Environment and Risk Prevention	Expense	Not classified		16		12-31-2011
SQM S.A.	IQ1K – Construction of 3 observation pits in Sur Viejo	Support: Natural Resources	Asset	Development		35		12-31-2011
SQM S.A.	IQ1M - PSA Re-injection of water to  Puquíos Llamara	Not classified	Asset	Not classified		1.513		12-31-2011
SQM S.A.	IQ3S – Standardization of harmful substances management	Support: Environment and Risk Prevention	Asset	Not classified		355		12-31-2012
SQM S.A.	IQ52 – Environment Office-  Nueva Victoria	Not classified	Asset	Not classified		3		12-31-2011
SQM S.A.	IQ53 -  Cultural Heritage- adduction payout - (Pampa Hermosa)	Support: Environment and Risk Prevention	Asset	Not classified		25		12-31-2011
SQM S.A.	IQ54 - Cultural Heritage- Pampa Hermosa	Support: Environment and Risk Prevention	Asset	Not classified		884		12-31-2012
SQM S.A.	SCI6 - Environmental Studies – Region I Project	Not classified	Expense	Not classified		1		12-31-2011
SQM S.A.	IQ6M – EIS Expansion Nueva Victoria Sur Mine	Support:  Natural Resources	Asset	Not classified		38		01-31-2012
SQM S.A.	IQ9V –Quillagua Project	Not classified	Asset-Expense	Not classified		1.000		12-31-2014

132

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.2 Detail of information on disbursements related to the environment (continued)

Future expenses (continued)

Identification of the Parent Company or subsidiary	Name of the project with which the disbursement is associated	Concept for which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$		Certain or estimated date on which disbursements were or will be made
SQM S.A.	PQB9 – Replacement of SO2  gas extractor	Support	Expense	Not classified		231		12-01-2011
SQM Salar S.A	CQ4M – Standardization of Contractor facilities	Support: Environment and Risk Prevention	Asset	Not classified		17		12-31-2012
SQM Salar S.A	LP5J – Hydro reloading study-  Salar de Atacama	Support: Environment and Risk Prevention	Asset-Expense	Research		6		12-31-2011
SQM Salar S.A	LP82 – Agricultural activity promotion project in Salar towns	Support	Expense	Development		674		12-31-2014
SQM Salar S.A	CQ8U – New exchange office CL - HL	Expansion of Capacity	Asset	Not classified		149		12-31-2011
SQM Salar S.A	LQAK – Waste rooms MOP and SOP	Support	Expense	Not classified		8		12-31-2011
				Total		19.000

133

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.2 Detail of information on disbursements related to the environment (continued)

Accumulated expenses, as of December 31, 2010

Identification of the Parent Company or subsidiary	Name of the project with which the disbursement is associated	Concept for which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$		Certain or estimated date on which disbursements were or will be made
SQM Industrial S.A	Environment Management (2010 Expense)	Not classified	Expense	Not classified		1,270		12-01-2011
SQM Industrial S.A	EPRH – Reach 2010	Support	Expense	Not classified		1,010		12-31-2010
SQM Industrial S.A	MCLX - Cleaning of the saving yards	Cost reduction	Expense	Development		604		10-01-2010
SQM Industrial S.A	ANMI -  Infrastructure consulting for the storage of dangerous chemical substances	Support: Risk prevention and the environment	Asset	Development		46		12-01-2010
SQM Industrial S.A	MNH8 - Lightning upgrades	Support	Expense	Development		228		12-01-2010
SQM Industrial S.A	SCCY - Disposal of dangerous residue	Support	Asset - Expense	Development		165		12-01-2010
SQM Industrial S.A	JNTU - San Isidro water evaluation	Support: Risk prevention and the environment	Asset	Not classified		556		12-31-2010
SQM Industrial S.A	JNNX - Nitrate environment various	Support: Risk prevention and the environment	Asset	Not classified		51		12-01-2010
SQM Industrial S.A	MNTE - Industrial hygiene equipment	Support: Risk prevention and the environment	Asset	Development		19		12-01-2010
SQM Industrial S.A	INST - Acquisition of used lubricant rapid disposal bank, NV-ME-PB	Support: Risk prevention and the environment	Expense	Development		46		07-01-2010
SQM Industrial S.A	MP17 - Normalization of consumable water ME/CS/PV	Support	Asset	Not classified		7		12-01-2010
SQM Industrial S.A	MP5W - Normalization TK´s fuel	Support	Asset	Not classified		397		12-01-2010
SQM Industrial S.A	FNWR EID Discard field Pampa Blanca	Support: Risk prevention and the environment	Expense	Development		30		12-01-2010
SQM Industrial S.A	MNYS Actions for the dissemination of cultural heritage, technology change Maria Elena	Support: Risk prevention and the environment	Asset	Not classified		21		12-31-2010
SQM Industrial S.A	FP55-FPXA	Support	Asset	Development		1,106		12-31-2010
SQM Industrial S.A	MP8Z Automation of water volume inlet pipe ME, CS and Vergara	Support	Asset	Development		523		12-01-2010
SQM Industrial S.A	MPL5Repair of sanitary and electric facilities	Support	Asset	Development		184		10-01-2010
SQM Industrial S.A	MPIS - Stabilization of streets and suppression of dust at sidewalks	Support	Asset	Development		736		10-01-2010
SQM Industrial S.A	PPNK Handling of PV ammonia in Detention of plant	Support: Risk prevention and the environment	Asset	Not classified		22		12-01-2010
SQM Industrial S.A	MPGF Improvement of sealing and pressurization room 031	Support	Asset - Expense	Not classified		48		12-01-2010
SQM Industrial S.A	TPO4 Indigenous camp	Support	Asset	Not classified		88		06-11-2010
SQM Industrial S.A	MPLS Automated alarms and information of monitoring station Hospital	Not classified	Asset	Not classified		10		12-01-2010
Minera Nueva Victoria S.A.	IPNW Extension in sanitary capacity for Iris	Support	Asset	Not classified		44		12-01-2010
Minera Nueva Victoria S.A.	IPMN Extension in sanitary capacity for Iris	Capacity upgrade	Asset	Development		85		12-01-2010
SQM Nitratos S.A	PNH2 Maintenance of Environmental projects ME-PV-NV-PB	Support: Risk prevention and the environment	Asset - Expense	Development		48		06-29-2010

134

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.2 Detail of information on disbursements related to the environment (continued)

Accumulated expenses, as of December31, 2010 (continued)

Identification of the Parent Company or subsidiary	Name of the project with which the disbursement is associated	Concept for which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$		Certain or estimated date on which disbursements were or will be made
SQM Nitratos S.A	PP0V - Maintenance of environmental projects ME-PV-NV-PB	Support: Risk prevention and the environment	Asset - Expense	Development		82		12-01-2010
SQM Nitratos S.A	IP6W Treatment plants of “riles”	Support: Risk prevention and the environment	Asset	Not classified		95		12-01-2010
SQM Nitratos S.A	PPAT - Risk prevention projects Sem II 2008	Support: Risk prevention and the environment	Expense	Development		157		12-01-2010
SQM Salar S.A	LP5K Environmental evaluation (mop)	Support: Risk prevention and the environment	Asset	Not classified		4		12-01-2010
SQM Salar S.A	LP5J - Water study Water Recharge Atacama Saltpeter deposit	Support: Risk prevention and the environment	Expense	Research		83		12-31-2010
SQM Salar S.A	LNNT Environmental projects Salar Chaxa	Support: Risk prevention and the environment	Expense	Not classified		98		12-01-2010
SQM Salar S.A	LPIL Upgrade SOP plant	Capacity upgrade	Asset	Development		17		12-01-2010
SQM Salar S.A	LPIK Potassium Plant	Capacity upgrade	Asset	Development		19		12-01-2010
SQM Salar S.A	LP82 - Project to foster the agricultural activity in Locations of Salar	Support	Expense	Development		331		12-31-2012
SQM Salar S.A	LPGA Improvement in facilitiesToconao	Capacity upgrade	Asset	Not classified		109		09-30-2010
SQM Salar S.A	LPK2 Cash exchange house	Not classified	Asset	Not classified		102		12-01-2010
SQM Salar S.A	LPN3 New plant MOP	Support	Asset	Investigation		19		12-31-2011
SQM Salar S.A	CPTP - Installation of drinking water emergency showers	Support	Asset	Not classified		14		04-01-2011
SQM Salar S.A	LPTF Environment projects	Support	Expense	Not classified		169		12-31-2010
SQM Salar S.A	LPTJ Sanitary upgrades	Support	Asset	Not classified		95		05-01-2011
SQM Salar S.A	LPPJ - EID SOP upgrade	Capacity upgrade	Asset	Not classified		14		12-31-2011
SIT S.A.	TNLA - Road paving	Support: Risk prevention and the environment	Asset	Development		82		12-01-2010
SIT S.A.	PNOT - Lightning upgrade (train area)	Support	Asset -Expense	Development		369		12-01-2010
SIT S.A.	TPR8 - Elimination of waste water generation through vacuum	Support: Risk prevention and the environment	Asset - Expense	Not classified		54		12-01-2010
SIT S.A.	TPLR - Waste disposal system	Support: Risk prevention and the environment	Asset	Not classified		68		12-01-2010
SIT S.A.	TPM7 - Environment projects	Not classified	Asset - Expense	Not classified		524		06-30-2011
SQM S.A.	SCI6 - Environment studies	Not classified	Expense	Not classified		2,376		10-01-2010

135

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.2 Detail of information on disbursements related to the environment (continued)

Accumulated expenses, as of December 31, 2010 (continued)

Identification of the Parent Company or subsidiary	Name of the project with which the disbursement is associated	Concept for which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$		Certain or estimated date on which disbursements were or will be made
SQM S.A.	AQ0A Llamara & Tamarugal Meadows	Support Natural resources	Asset	Development		5		03,30,2011
SQM S.A.	IPFT - I Region of Chile Cultural heritage	Support: Risk prevention and the environment	Expense	Not classified		111		12,31,2011
SQM S.A.	IPXE- Environmental follow-up plan at Tamarugal Meadows	Support: Risk prevention and the environment	Expense	Not classified		4		12,31,2012
						12,345

136

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.3 Description of each project, indicating whether they are being implemented or completed

SQM Industrial S.A.

SQ7X: The objective of this Project is to obtain and record information on final products and components of SQM in ECHA database in order to comply with the requirements established by REACH standard of the European Union. This Project is being executed.

ANMI: Compliance with technical and legal aspects and with specific regulations applicable to warehouses, signals, safety and main factors associated with materials, products and supplies at the mine site. In addition, the infrastructure of warehouses for storage of hazardous chemicals will be improved. The project is completed.

FNWR: Preparation of EID for elimination field project Pampa Blanca. The project is close to completion.

FP55 - FPXA: These two projects have a common final object, that is, the installation of an 87 kilometer sea water adductor system from Mejillones to the facilities of SQM in Pampa Blanca, The expenses relate to EIA Mine Zone PB and EIA Enlargement PB only.The projects are being implemented.

JNTU: To make an environmental evaluation of San Isidro waters.The project is close to completion.

JPX9: The final objective of this project is to perform testing on two processes in order to eliminate the perchlorate from certain products, However, the related expenses solely relate to the processing of EIP (Environmental Impact Performance), Improvement in the granulation pilling plant in Coya Sur. The project is being executed.

MNYS: Preparation and implementation of geoglyph conservation project, Editing and publication of book and implementation of information center. Construction of storage for collections, All compensation measures María Elena Technological Change Project. The project is being implemented.

MP17: A study of the current water chlorination system in María Elena, Coya Sur and Pedro de  Valdivia will be made to then implement and start the water chlorination system in accordance with the regulations in force.  The project is completed.

MP5W: Standardization of fuel storage and distribution at the facilities of SQM. The project is being implemented.

MPIS: Improve the urban situation of María Elena, paving roads with dust treatment on sidewalks.  The project is completed,

MPL5: Partial improvement of the water and sewage systems in María Elena. The project is completed.

MPLS: Implement alarms via e-mail for Particle concentration peaks and change the text file information log to a database to implement reports. The project is completed.

137

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.3 Description of each project, indicating whether they are being implemented or completed (continued)

MQ51: The objective of this project is to generate the reference terms to implement the equity measure established in RCA N°0076/2000 which environmentally approves the EID of María Elena’s project. The project is close to completion.

PPNK: Project to ensure control of ammonia gas in crystal plant. This Project is being executed.

PPZU: Required actions will be performed to normalize and certify the fuel tanks in plants located in María Elena, Coya Sur and Pedro de Valdivia. This Project is being executed.

JQ8K: The objective of this Project is to build a new drying plant inCoya Sur, The expenses considered solely correspond to the environmental processing. This Project is being executed.

IQ8G:  This project involves improving and expanding the bathrooms, as well as improving the water storage area. The project is underway.

MQ7P: The lids of the sewage system will be replaced in the town of María Elena, which are currently very old. The project is underway.

JQB6: Elaboration and paperwork of the EIS for the project NPT4 of Coya Sur, which increases the production capacity based on salts.  The project is underway.

TQ78: This project includes the purchase of sweeper trucks with a vacuuming system which intends to lower the Particulate Matter emissions in the Puerto de Tocopilla. The project is underway.

Minera Nueva Victoria S,A,

IPMN: Improve sanitary capacity in camp IRIS by building 3 ditches. This Project is being executed.

IPNW: Replacement of deteriorated bathroom fixtures in order to improve hygiene conditions. The project is completed.

IQ4C: Supply, Construction and Mounting of Osmosis Plant and septic tanks required to enable the camp in Iris plant and other. The project is close completion.

SIT S.A.

TPLR: The goal of this project is to spill sewage generated in Tocopilla port to the public sewage system. The project is completed.

TPM7: Nets will be purchased and installed in yards 3 and 4 in order to control dust emissions coming from screening operations and protect from emissions from the electric power plant. The project is completed.

138

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.3 Description of each project, indicating whether they are being implemented or completed (continued)

TPR8: The Company intends to reduce the generation of liquid and solid industrial waste using aspiration and not washing technologies by implementing an aspiration system that avoids using water and therefore the generation of liquid and solid industrial waste. The project is being implemented.

TPYX: To comply with a commitment to decrease the issuance of particled material to Tocopilla. This Project is being executed.

TQAV: Paving and maintenance of internal roads in the Port of Tocopilla, to decrease the pollution and comply with Executive Decree for saturated zone. The project is underway.
 

SQM Nitratos S.A.

IP6W: Design and build mud, water, oil decanting pits, and a tank with a pumpin order to reuse the decanted water, metla tanks for removal of mud. The project is completed.

PP0V: Instalation of a container to hold harmful waste in maintenance shops and elimination of riles from hydraulic filters maintenance shop at María Elena, Pedro de Valdivia, Nueva Victoria and Pampa Blanca Mines.  The project is completed.

139

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.3 Description of each project, indicating whether they are being implemented or completed (continued)

SQM S.A.

AQ0A: To be able to use water rights that have been granted in relation to several wells situated in the ecological reserve of Conaf called Pampa del Tamarugal and take them outside the “tamarugo” forest and the reserve, ThUS reducing the environmental impact caused by the exploitation thereof.  The project is being implemented.

IPFT: Implementation of patrimonial measures in projects Mine Zone Nueva Victoria, Operations Up-date Nueva Victoria, Evaporation Duct and Pools Iris. The project is being implemented.

IPXE: Implement the environmental follow-up plan of project Pampa Hermosa at Salar de Llamara. The project is being implemented.

IPXF: To implement the environmental follow-up plan of Pampa Hermosa project in Pampa del Tamarugal. This Project is being implemented.

IQ08: The Project includes the following procedures for aquifers of Pampa del Tamarugal and Salar de Llamara: Construction and enabling of observation and monitoring wells, pumping tests, construction of roads on droll and crust terrains Salar. This Project is being implemented.

IQ0C: This is a Project to implement an enhancement program of an area close to Route 5, which will allow developing a self-guided tour of the area referred to as Cantón de Lagunas within the historical saltpeter context. This Project is being implemented.

IQ1K: Construction of 3 observation wells in Sur Viejo in order to comply with environmental commitments proposed in EIP(*) of Pampa Hermosa and to be able to monitor the aquifer located nearby these wells. This Project is being implemented.

IQ1M: To implement the environmental commitments included in the EIP of Project “Pampa Hermosa” to be able to safeguard the puquios zone located in the Aquifer Salar de Llamara. This Project is being implemented.

IQ3S: Improvements in premises for the storage of hazardous raw material in Nueva Victoria. This Project is being implemented.

IQ52: This Project considers the enabling and enlargement of environmental offices in Nueva Victoria. This Project is being implemented

IQ53: To perform heritage prospecting to the new location on the track of Soronal adduction  of Project Pampa Hermosa approved through RCA N° 890/2010. This Project is being implemented

IQ54: Correspond to the implementation of heritage environmental commitments acquired through the environmental assessment of project Pampa Hermosa (RCA N°890/2010). This Project is being implemented

140

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 24 - The environment (continued)

24.3 Description of each project, indicating whether they are being implemented or completed (continued)

SCI6: This project is intended to obtain environmental licenses for the Development projects in Region I of Chile including all pieces of work related to initial environmental requirements which allow that Operations execute the project’s construction and operation. The environmental evaluation to obtain the related license would be conducted through EIA, which contemplates the preparation and processing of the document and also includes specific environmental study activities (the study of tamarugos in Llamara and P. Tamarugal, archeological mitigation steps, environmental study of Loa river, hydro geological studies.) This project is in the process of closure.

IQ6M: Elaboration and submittal of the EIS for the project “Expansion of Nueva Victoria Mine”. The expense considered only includes the environmental paperwork. The project is underway.

IQ9V: Support to development of agricultural and tourism activity in the town of Quillagua, with a view to strengthening the activity through productive improvements, technical assistance and commercialization.  The project is underway.

SQM Salar S.A.

CPTP: Change of the current industrial water system to fresh water in order to comply with the regulations in force contained in DS 72. The project is close completion.

CPZH: The objectives of this Project is the safe and fast recover of the LiOH cake and discard, not discharging it to the ground, avoiding splashing it to surrounding areas which would expose the operators working nearby to harm. This project is being executed.

LP5J: Perform the analyses conducive to refining the hydrological units of the basin, quantifying the recharge to the water-bearing place using environmental isotopic techniques. The project is being implemented.

LP82: Support in the development of demonstration lots, technical assistance for the application of improvements in irrigation and agricultural practices. The project is being implemented.

LPTF: Prepare biannual reports so as to present improvements of environmental checkpoints; knowledge of geological and hydro-geological variables at Salar de Atacama should be improved. The project is being implemented.

LPTJ: Acquisition of stand equipment to ensure the operational continuity of plants TAS and OR; change in current control system of level of accumulation in TK`s of fresh water, sewage, and sewage elevation tanks, amongst others. The project is close completion.

LQ38: The purpose of this projectis to comply with the current regulations and observations effected by the Health SEREMI. The project is underway.

CQ8U: Improve condition and capacity of exchange offices in the Salar del Carmen. The project is underway.

LQAK: The project includes the construction of waste rooms in MOP and SOP casinos, for the purpose of increasing the waste storage capacity. The project is underway.

 

141

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 25 - Other current and non-current non-financial assets

As of September 30, 2011, and December 31, 2010, the composition of other current and non-current assets is detailed as follows:

Other non-financial  assets, current	09.30.2011		12.31.2010
	ThUS$		ThUS$
Agreement termination bonus		2,230		2,108
Domestic Value Added Tax		23,463		30,795
Foreign Value Added Tax		8,563		4,167
Prepaid mining licenses		3,132		1,281
Prepaid insurance		3,092		4,575
Prepaid leases		36		30
Marine concessions		-		48
Other prepaid expenses		1,009		86
Other assets		1,348		1,352
Total		42,873		44,442

Other non-financial  assets, non-current	09.30.2011		12.31.2010
	ThUS$		ThUS$
End of collective negotiation bonus		1,199		1,538
Stain development expenses and prospecting expenses (1)		21,532		21,350
Income taxes recoverable		685		651
Guarantee deposits		487		514
Other assets		-		104
Total		23,903		24,157

(1) Assets for the exploration or evaluation of mineral resources are amortized to the extent that the explored or evaluated area has been exploited. For this purpose, a variable rate is applied to extracted tons, which is determined based on the measured initial reserve and evaluation cost. The Company presents expenses associated with Exploration and Evaluation of Mineral Resources.  Of these expenses, those that are under exploitation are included under Inventory and are amortized according to the estimated ore reserves contained, and expenses associated with future reserves are presented under Other non-current assets.  Those expenses incurred on properties with low ore grade that are not economically exploitable are directly charged to income. As of September 30, 2011 balances associated with the exploration and assessment of mineral resources is presented under Inventory for ThUS$ 4,029 (ThUS$ 1,723 as of December 31 2010).

142

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 25 - Other current and non-current non-financial assets (continued)

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, 2011 and December 31, 2010:

Reconciliation	09.30.2011			12.31.2010
	ThUS$			ThUS$
Assets for the exploration and evaluation of mineral resources, net, beginning balance		21,350			26,832
Changes in assets for exploration and assessment of mineral resources:
Additions		3,777			-
Depreciation and amortization		(1,382	)		(2,044	)
Decrease due to transfers and other charges		(2,213	)		(3,438	)
Assets for exploration and assessment of mineral resources, net, final balance		21,532			21,350

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

Note 26 - Operating segments

26.1 Operating segments

In accordance with IFRS 8 "Operating segments", the Company provides financial and descriptive information about the segments it has defined in consideration of available annual separate financial information, which is regularly evaluated by the maximum authority in making operating decisions with the purpose of deciding how to assign resources and assess performance.

Operating segments relate to the following groups of products that generate revenue and for which the Company incurs expenses and the result of which is regularly reviewed by the Company's maximum authority in the decision-making process:

1. - Specialty plant nutrients

2. - Iodine and its derivatives

3. - Lithium and its derivatives

4. - Industrial chemicals

5. - Potassium

6. - Other products and services

Information relative to assets, liabilities and profit and expenses that cannot be assigned to the segments indicated above, due to the nature of production processes, is included under the "Corporate Unit" category of disclosures.

143

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 26 - Operating segments (continued)

26.2 Statement of income classified by operating segments based on groups of products as of September 30, 2011:

Items in the statement of income	Specialty plant nutrients ThUS$			Iodine and its derivatives ThUS$			Lithium and its derivatives ThUS$			Industrial chemicals ThUS$			Potassium  ThUS$			Other products and services ThUS$			Corporate unit ThUS$			Total segments and Corporate unit ThUS$
Sales		547,107			328,393			132,159			113,353			425,977			59,390			-			1,606,379
Cost of sales		(373,886	)		(144,502	)		(72,029	)		(69,766	)		(252,230	)		(55,093	)		-			(967,506	)
Gross profit		173,221			183,891			60,130			43,587			173,747			4,297			-			638,873
Other income by function		-			-			-			-			-			-			6,313			6,313
Administrative expenses		-			-			-			-			-			-			(66,713	)		(66,713	)
Other expenses by function		-			-			-			-			-			-			(40,977	)		(40,977	)
Other gains		-			-			-			-			-			-			4,629			4,629
Interest income		-			-			-			-			-			-			17,376			17,376
Interest expenses		-			-			-			-			-			-			(30,289	)		(30,289	)
Interest in gains from associates and joint ventures accounted for using the equity method		-			-			-			-			-			-			14,914			14,914
Foreign currency transactions		-			-			-			-			-			-			(18,987	)		(18,987	)
Profit (loss) before taxes		173,221			183,891			60,130			43,587			173,747			4,297			(113,734	)		525,139
Income tax expense		-			-			-			-			-			-			(132,696	)		(132,696	)
Net income (loss) from continuing operations		173,221			183,891			60,130			43,587			173,747			4,297			(246,430	)		392,443
Net income (loss) from discontinued operations		-			-			-			-			-			-			-			-
Net income (loss)		173,221			183,891			60,130			43,587			173,747			4,297			(246,430	)		392,443
Net income attributable to:
Owners of the parent		-			-			-			-			-			-			-			386,862
Non-controlling interests		-			-			-			-			-			-			-			5,581
Net income for the year		-			-			-			-			-			-			-			392,443

144

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 26 - Operating segments (continued)

26.2 Statement of Income classified by operating segments based on groups of products as of September 30, 2010:

Items in the statement of income	Specialty plant nutrients ThUS$			Iodine and its derivatives ThUS$			Lithium and its derivatives ThUS$			Industrial chemicals ThUS$			Potassium  ThUS$			Other products and services ThUS$			Corporate unit ThUS$			Total segments and Corporate unit ThUS$
Sales		452,474			241,826			114,329			109,543			356,794			49,770			-			1,324,736
Cost of sales		(318,929	)		(135,838	)		(64,997	)		(61,419	)		(242,715	)		(46,466	)		-			(870,364	)
Gross profit		133,545			105,988			49,332			48,124			114,079			3,304			-			454,372
Other income by function		-			-			-			-			-			-			5,617			5,617
Administrative expenses		-			-			-			-			-			-			(55,455	)		(55,455	)
Other expenses by function		-			-			-			-			-			-			(16,255	)		(16,255	)
Other gains (losses)		-			-			-			-			-			-			(5,870	)		(5,870	)
Interest income		-			-			-			-			-			-			6,501			6,501
Interest expenses		-			-			-			-			-			-			(26,534	)		(26,534	)
Interest in gains from associates and joint ventures accounted for using the equity method		-			-			-			-			-			-			8,299			8,299
Foreign currency transactions		-			-			-			-			-			-			(6,875	)		(6,875	)
Income (loss) before taxes		133,545			105,988			49,332			48,124			114,079			3,304			(90,572	)		363,800
Income tax expense		-			-			-			-			-			-			(84,359	)		(84,359	)
Net income (loss) from continuing operations		133,545			105,988			49,332			48,124			114,079			3,304			(174,931	)		279,441
Net income (loss) from discontinued operations		-			-			-			-			-			-			-			-
Net income (loss)		133,545			105,988			49,332			48,124			114,079			3,304			(174,931	)		279,441
Net incom e attributable to:
Owners of the parent		-			-			-			-			-			-			-			276,325
Non-controlling interests		-			-			-			-			-			-						3,116
Profit for the year		-			-			-			-			-			-			-			279,441

145

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 26 - Operating segments (continued)

26.3 Disbursements of non-monetary assets of the segment as of September 30, 2011:

Identification of disbursements of non-monetary assets	Chile ThUS$		Latin America and the Caribbean ThUS$		Europe ThUS$		North America ThUS$		Asia and others ThUS$		Balances according to the Statement of Financial Position ThUS$
Investments in joint ventures		-		-		-		-		4,500		4,500
SQM Quindao – Star		-		-		-		-		-		-
SQM Migao Sichuan										4,500		4,500
Amounts in addition of non-current assets		387,400		-		-		-		-		387,400
- Property, plant and equipment		387,177		-		-		-		-		387,177
- Intangible assets		223		-		-		-		-		223
Total segments		387,400		-		-		-		4,500		391,900

26.3 Disbursements of non-monetary assets of the segment as of December 31, 2010:

Identification of disbursements of non-monetary assets	Chile ThUS$		Latin America and the Caribbean ThUS$		Europe ThUS$		North America ThUS$		Asia and others ThUS$		Balances according to the Statement of Financial Position ThUS$
Investments in joint ventures		-		-		-		-		3,500		3,500
SQM Quindao – Star		-		-		-		-		1,000		1,000
SQM Migao Sichuan										2,500		2,500
Amounts in addition of non-current assets		335,997		-		-		-		-		335,997
- Property, plant and equipment		335,632		-		-		-		-		335,632
- Intangible assets		365		-		-		-		-		365
Total segments		335,997		-		-		-		3,500		339,497

 

146

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 26 - Operating segments (continued)

26.4 Information on products and services of external customers

Revenues from operating activities with external customers by group of product and service as of September 30, 2011 are detailed as follows:

Items in the statement of income	Specialty plant nutrients ThUS$		Iodine and its derivatives ThUS$		Lithium and its derivatives ThUS$		Industrial chemicals ThUS$		Potassium ThUS$		Other products and services ThUS$		Total segments and Corporate Unit ThUS$
Revenue		545,406		328,393		132,159		115,054		425,977		59,390		1,606,379

Revenues from operating activities from external customers by group of product and service as of September 30, 2010 are detailed as follows:

Items in the statement of income	Specialty plant nutrients ThUS$		Iodine and its derivatives ThUS$		Lithium and its derivatives ThUS$		Industrial chemicals ThUS$		Potassium  ThUS$		Other products and services ThUS$		Total segments and Corporate Unit ThUS$
Revenue		452,474		241,826		114,329		109,543		356,794		49,770		1,324,736

26.5 Information 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.

147

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 26 - Operating segments (continued)

26.6 Revenues from operating activities from external customers classified by geographical areas as of September 30, 2011:

Identification of revenue from external customers	Chile ThUS$		Latin America and the Caribbean ThUS$		Europe ThUS$		North America ThUS$		Asia and others ThUS$		Balances according to the Statement of income ThUS$
Revenue		163,823		233,453		652,477		334,123		222,503		1,606,379

26.6 Revenue from external customers, classified by geographical areas as of September 30, 2010:

Identification of revenue from external customers	Chile ThUS$		Latin America and the Caribbean ThUS$		Europe ThUS$		North America ThUS$		Asia and others ThUS$		Balances according to the Statement of income ThUS$
Revenue		136,045		132,109		578,412		273,877		204,293		1,324,736

148

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 26 - Operating segments (continued)

26.7 Non-current assets classified by geographical area as of September 30, 2011:

Non-current asset items	Chile ThUS$		Latin America and the Caribbean ThUS$		Europe ThUS$		North America ThUS$		Asia and others ThUS$		Balances according to the Statement of financial position ThUS$
Investments in associates accounted for using the equity method		1,241		-		23,831		11,903		31,860		68,835
Intangible assets other than goodwill		3,491		-		1		455		-		3,947
Goodwill		26,929		86		11,373		-		-		38,388
Property, plant and equipment, net		1,693,026		1,421		291		31		183		1,694,492
Investment property		1,378		-		-		-		-		1,378
Other non-current assets		23,265		241		-		-		397		23,903
Total assets		1,749,330		1,748		35,496		12,389		32,440		1,831,403

26.7 Non-current assets classified by geographical area as of December 31, 2010:

Non-current asset items	Chile ThUS$		Latin America and the Caribbean ThUS$		Europe ThUS$		North America ThUS$		Asia and others ThUS$		Balances according to the Statement of financial position ThUS$
Investments in associates accounted for using the equity method		1,352		-		19,615		7,251		34,053		62,271
Intangible assets other than goodwill		2,765		-		4		501		-		3,270
Goodwill		24,147		86		11,373		724		2,058		38,388
Property, plant and equipment, net		1,451,576		1,858		331		40		168		1,453,973
Investment property		1,373		-		-		-		-		1,373
Other non-current assets		112,820		227		-		3,293		373		116,713
Total assets		1,594,033		2,171		31,323		11,809		36,652		1,675,988

149

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 26 - Operating segments (continued)

26.8 Information on main customers

With respect to the degree of dependency of the Company on its customers, in accordance with, the Company has no external customers who individually represent 10% or more of its income from operating activities. Credit risk concentrations with respect to trade and other accounts receivable are limited due to the significant number of entities in the Company’s portfolio and its worldwide distribution. The Company’s policy requires guarantees (such as letters of credit, guarantee clauses and others) and/or to maintain insurance policies for certain accounts as deemed necessary by the Company's Management.

26.9 Property, plant and equipment classified by geographical area as of September 30, 2011:

Property, plant and equipment	Chile		Latin America and the Caribbean		Europe		North America		Asia and others		Total
	09.30.2011
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Production facilities:
Coya Sur		275,922		-		-		-		-		275,922
María Elena		137,292		-		-		-		-		137,292
Nueva Victoria		229,739		-		-		-		-		229,739
Pampa Blanca		18,562		-		-		-		-		18,562
Pedro de Valdivia		110,342		-		-		-		-		110,342
Salar de Atacama		614,107		-		-		-		-		614,107
Salar del Carmen		212,179		-		-		-		-		212,179
Tocopilla (port premises)		72,208		-		-		-		-		72,208
Subtotal production facilities		1,670,351		-		-		-		-		1,670,351
Corporate facilities:
Santiago		17,628		-		-		-		-		17,628
Antofagasta		4,937		-		-		-		-		4,937
Subtotal corporate facilities		22,565		-		-		-		-		22,565
Subtotal business offices		1,488		1,421		291		31		183		3,414
Total segments		1,694,404		1,421		291		31		183		1,696,330

150

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 26 - Operating segments (continued)

26.9 Property, plant and equipment classified by geographical area as of December 31, 2010:

Property, plant and equipment	Chile		Latin America and the Caribbean		Europe		North America		Asia and others		Total
	12.31.2010
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Production facilities:
Coya Sur		256,570		-		-		-		-		256,570
María Elena		144,233		-		-		-		-		144,233
Nueva Victoria		202,134		-		-		-		-		202,134
Pampa Blanca		20,381		-		-		-		-		20,381
Pedro de Valdivia		84,992		-		-		-		-		84,992
Salar de Atacama		442,281		-		-		-		-		442,281
Salar del Carmen		213,488		-		-		-		-		213,488
Tocopilla (port premises)		63,521		-		-		-		-		63,521
Subtotal production facilities		1,427,600		-		-		-		-		1,427,600
Corporate facilities:
Santiago		14,506		-		-		-		-		14,506
Antofagasta		6,831		-		-		-		-		6,831
Subtotal corporate facilities		21,337		-		-		-		-		21,337
Subtotal business offices		2,639		1,858		331		40		168		5,036
Total segments		1,451,576		1,858		331		40		168		1,453,973

151

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 27 - Other income, other expenses by function and other gains or losses

Other income and expenses are detailed as follows:

a)     Other income by function	09.30.2011 ThUS$		09,30,2010 ThUS$
Discounts obtained from suppliers		555		683
Indemnities received		693		-
Fines collected to suppliers		282		59
Insurance recovery		547		201
Overestimate of accrual for obligation with third parties		588		406
Overestimate of doubtful accounts		150		53
Sale of property, plant and equipment		303		430
Sale of materials, spare parts and supplies		624		580
Sale of mine concessions		613		866
Indemnities at Minera Esperanza		172		680
Over estimate in provision for inventories		473		-
Miscellaneous services		84		468
Other operating income		1,229		1,191
Total		6,313		5,617

b)    Other expenses by function	09.30.2011 ThUS$		09,30,2010 ThUS$
Doubtful accounts impairment		2,211		1,045
VAT and other non recoverable taxes		484		410
Fines paid		147		252
Investment plan expenses		10,294		9,437
Gifts not accepted as credit		1,344		1,576
Adjustment to carrying value of fixed asset properties		-		1,000
Losses at auction		-		500
Indemnities paid		72		55
Legal expenses		2,352		40
Depreciation of immobilized goods		21,012		-
Other operating expenses		3,061		1,940
Total		40,977		16,255

c)    Other gains or losses	09.30.2011 ThUS$		09,30,2010 ThUS$
Retirement plan provision		880		(100	)
PNW adjustment of previous year		732		1,132
El Toco closing provision		3,016		(6,900	)
Other		1		(2	)
Total		4,629		(5,870	)

152

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 28 - Income Taxes

As of September 30, 2011 and December 31, 2010, current income taxes recoverable are detailed as follows:

28.1 Current tax accounts receivable

	09.30.2011		12.31.2010
	ThUS$		ThUS$
Net monthly tax provisional payments, Chilean companies actual year		1,628		19,614
Net monthly tax provisional payments, Chilean companies prior year		12,049		2,158
Monthly tax provisional payments, foreign companies		1,017		562
Corporate tax credits (1)		212		1,111
Corporate tax absorbed by tax losses (2)		1,574		9,328
Total		16,480		32,773

(1): These credits are available to companies and relate to the corporate tax payment in April of the following year, These credits include, amongst others, training expense credits (SENCE) and property, plant and equipment acquisition credits that are equivalent to 4% of the property, plant and equipment purchases made during the year. In addition, some credits relate to the donations the Group has made during 2011 and 2010.

(2): This concept corresponds to the absorption of non-operating losses (NOL’s) determined by the company at year end, which must be imputed or recorded in the Retained Taxable Profits Registry (FUT).

In accordance with the laws in force and as provided by article 31, No. 3 of the Income Tax Law, when profits recorded in the FUT that have not been withdrawn or distributed are totally or partially absorbed by NOL’s, the corporate tax paid on such profits (17%, 16.5%, 16%, 15%, 10% depending on the year in which profits were generated) will be considered to be a provisional payment with respect to the portion representing the absorbed accumulated tax profits.

153

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 28 - Income and deferred taxes (continued)

28.1 Current tax accounts receivable (continued)

Taxpayers are entitled to apply for a refund of this provisional tax payment on the absorbed profits recorded in the FUT registry via their tax returns (Form 22).

Therefore, the provisional payment for absorbed profits (PPAP) recorded in the FUT is in effect a recoverable tax, and as such the Company records it as an asset.

28.2 Current tax accounts payable

Taxes payable	09.30.2011		12.31.2010
	ThUS$		ThUS$
Corporate tax and royalty (1)		78,044		5,984
Foreign company income tax		89		1,105
Article 21 unique tax		3		24
Total		78,136		7,113

(1):This concept relates to the tax accrual that is determined by the company and that will be paid the following year when the appropriate tax return is filed.

The income tax is determined on the basis of the tax result determination to which the tax rate currently in force in Chile, i,e, 17%, is applied (the tax rate was transitorily increased for 2011 and 2012 to 20% and 18.5%, respectively).

The royalty provision is determined by applying the tax rate that was determined to the Operational Net Income (ONI).

In conclusion, both concepts represent the estimated amount the company will have to pay on account of income tax and specific tax on mining.

28.3 Taxable earnings

As of September 30, 2011 and December 31, 2010, the Company and its subsidiaries have recorded the following consolidated balances for retained taxable earnings registry, income not constituting revenue subject to income tax, accumulated tax losses and credit for shareholders:

	09.30.2011 ThUS$		12.31.2010 ThUS$
Taxable profits with credit rights (1)		1,072,739		602,536
Taxable profits without credit rights (1)		124,059		86,920
Taxable losses		10,992		21,630
Credit for shareholders		240,319		123,322

154

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 28 - Income and deferred taxes (continued)

28.3 Taxable earnings (continued)

(1): The Retained Taxable Profits Registry (FUT) is a chronological registry where the profits generated and distributed by the company are recorded. The object of the FUT is to control the accumulated taxable profits of the company that may be distributed, withdrawn or remitted to the owners, shareholders or partners, and the final taxes that must be imposed, called in Chile Global Aggregate Tax (that levies persons resident or domiciled in Chile), or Withholding Tax (that levies persons “Not” resident or domiciled in Chile).

The FUT Register contains profits with credit rights and profits without credit rights, which arise out of the inclusion of the net taxable income determined by the company or the profits received by the company that may be dividends received or withdrawals made within the period.

Profits without credit rights represent the tax payable by the company within the year and filed the following year, therefore they will be deducted from the FUT Registry the following year.

Profits with credit rights may be used to reduce the final tax burden of owners, shareholders or partners, which upon withdrawal are entitled to use the credits associated with the relevant profits.

In summary, companies use the FUT Registry to maintain control over the profits they generate that have not been distributed to the owners and the relevant credits associated with such profits.

28.4 Income and deferred taxes

Assets and liabilities recognized in the consolidated classified statement of financial position are offset if and only if:

1 The Company has legally recognized before the tax authority the right to offset the    amounts recognized in these entries; and

2 Deferred income tax assets and liabilities are derived from income tax related to the same tax authority on:

(i) the same entity or tax subject; or

(ii) different entities or tax subjects who intend either to settle current fiscal assets and liabilities for their net amount, or to realize assets and pay liabilities simultaneously in each of the future periods in which the Company expects to settle or recover significant amounts of deferred tax assets or liabilities,

Deferred income tax assets recognized are those income taxes to be recovered in future periods, related to:

(a) deductible temporary differences;

(b) the offset of losses obtained in prior periods and not yet subject to tax deduction; and

(c) the offset of unused credits from prior periods,

(d)

155

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 28 - Income and deferred taxes (continued)

28.4 Income and deferred taxes (continued)

The Company recognizes a deferred tax asset when there is certainty that these can be offset with fiscal income from subsequent periods, losses or fiscal credits not yet used, but solely as long as it is more likely than not that there will be tax earnings in the future against which to charge to these losses or unused fiscal credits.

Deferred tax liabilities recognized refer to the amounts of income taxes payable in future periods related to taxable temporary differences.

D.1 Income tax assets and liabilities as of September  30, 2011 are detailed as follows:

	Net position, assets				Net position, liabilities
Description of deferred income tax assets and liabilities	Assets		Liabilities		Assets		Liabilities
	ThUS$		ThUS$		ThUS$		ThUS$
Depreciation		-		-		-		87,275
Doubtful accounts impairment		16		-		3,943		-
Vacation accrual		9		-		2,204		-
Production expenses		-		-		-		44,196
Unrealized gains (losses) from sales of products		-		-		68,769		-
Bonds fair value		-		-		2,426		-
Employee termination benefits		-		-		-		3,509
Hedging		-		-		-		18,707
Inventory of products, spare parts and supplies		81		-		8,161		-
Research and development expenses		-		-		-		4,667
Tax losses		-		-		925		-
Capitalized interest		-		-		-		17,017
Expenses in assumption of bank loans		-		-		-		1,961
Unaccrued interest		-		-		190		-
Fair value of property, plant and equipment		-		-		9,606		-
Employee benefits		-		-		4,286		-
Royalty deferred income taxes		-		-		-		7,415
Other		190		-		5,414		-
Balance at year-end		296		-		105,924		184,747
Net balance		296		-		-		78,823

156

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 28 - Income and deferred taxes (continued)

28.4 Income and deferred taxes (continued)

D.2 Income tax assets and liabilities as of December 31, 2010 are detailed as follows:

	Net position, assets				Net position, liabilities
Description of deferred income tax assets	Assets		Liabilities		Assets		Liabilities
and liabilities	ThUS$		ThUS$		ThUS$		ThUS$
Depreciation		-		-		-		88,785
Doubtful accounts impairment		139		-		3,452		-
Vacation accrual		9		-		2,382		-
Production expenses		-		-		-		47,442
Unrealized gains (losses) from sales of products		-		-		49,181		-
Bonds fair value		-		-		1,886		-
Employee termination benefits		-		-		-		2,984
Hedging		-		-		-		20,739
Inventory of products, spare parts and supplies		-		1,050		8,950		-
Research and development expenses		-		-		-		4,215
Tax losses		796		-		2,748		-
Capitalized interest		-		-		-		14,784
Expenses in assumption of bank loans		-		-		-		2,278
Unaccrued interest		-		-		261		-
Fair value of property, plant and equipment		-		-		9,634		-
Employee benefits		-		-		6,052		-
Royalty deferred income taxes		-		-		-		7,462
Other		471		-		3,362		-
Balance at year-end		1,415		1,050		87,908		188,689
Net balance		365		-		-		100,781

157

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 28 - Income and deferred taxes (continued)

28.4 Income and deferred taxes (continued)

D.3 Deferred income taxes related to benefits for tax losses

The Company’s tax loss carryforwards (NOL carryforwards) were mainly generated by losses in Chile, which in accordance with current Chilean tax regulations have no expiration date.

As of September 30, 2011 and December 31, 2010, tax loss carryforwards (NOL carryforwards) are detailed as follows:

	09.30.2011		12.31.2010
	ThUS$		ThUS$
Chile		925		2,748
Other countries		-		796
Balance at year-end		925		3,544

Tax losses (NOL’s) correspond mainly to Mexico, These losses expire on December 31, 2011.

D.4 Unrecognized deferred income tax assets and liabilities

As of September 30, 2011 and December 31, 2010, unrecognized assets and liabilities are detailed as follows:

	09.30.2011			12.31.2010
	ThUS$			ThUS$
	Assets (liabilities)			Assets (liabilities)
Tax losses (NOL’s)		251			251
Doubtful accounts impairment		98			98
Inventory impairment		704			704
Pensions plan		266			266
Vacation accrual		29			29
Depreciation		(67	)		(67	)
Other		(17	)		(17	)
Balance at year-end		1,264			1,264

Tax losses mainly relate to the United States, which expire in 20 years,

158

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 28 - Income and deferred taxes (continued)

28.4 Income and deferred taxes (continued)

D.5 Movements in deferred tax liabilities

Movements in deferred tax liabilities as of September 30, 2011 and December 31, 2010 are detailed as follows:

	09.30.2011			12.31.2010
	ThUS$			ThUS$
	Liabilities (assets)			Liabilities (assets)
Beginning balance of deferred income tax liabilities		100,781			53,802
Increase (decrease) in deferred income taxes in statement of income		(22,992	)		47,230
Recuperación crédito Impuesto 1ª Categoría absorbido por pérdidas tributarias		1,574			-
Increase (decrease) in deferred income taxes in equity		(540	)		(251	)
Balance at period and		78,823			100,781

D.6 Disclosures on income tax expense (income)

The Company recognizes current and deferred income taxes as income or expenses, and they are included in income, unless they arise from:

(a) a transaction or event recognized in the same period or in a different period, outside profit or loss either in other comprehensive income or directly in equity; or

(b) a business combination

159

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 28 - Income and deferred taxes (continued)

28.4 Income and deferred taxes (continued)

D.6 Disclosures on income tax expense (income) (continued)

Current and deferred income tax expenses (income) are detailed as follows

	09.30.2011			09,30,2010
	ThUS$			ThUS$
	Benefit (expenses)			Benefit (expenses)
Current gains tax expense
Current tax expense		(153,669	)		(59,522	)
Adjustments to current taxes of the previous year		(1,950	)		2,552
Current tax expenses, net, total		(155,619	)		(56,970	)
Deferred tax expenses
Deferred tax expense (revenue) relating to the creation and reversal of temporary differences		22,923			(27,389	)
Deferred tax expense (revenue) relating to changes in fiscal rates or the imposition of new taxes		-			-
Deferred tax expenses, net, total		22,923			(27,389	)
Income tax expense		(132,696	)		(84,359	)

Expenses (income) for income taxes for foreign and domestic parties are detailed as follows:

	09.30.2011			09,30,2010
	ThUS$			ThUS$
	Benefit (expenses)			Benefit (expenses)
Current income tax expense by domestic and foreign parties, net
Current income tax expense, foreign parties, net		(1,244	)		(1,319	)
Current income tax expense, domestic, net		(154,375	)		(55,651	)
Total current income tax expense, net		(155,619	)		(56,970	)
Deferred income taxes by foreign and domestic parties, net
Deferred income tax expense, foreign parties, net		(586	)		(1,098	)
Deferred income tax expense, domestic, net		23,509			(26,291	)
Deferred income tax expense, net		22,923			(27,389	)
Income tax expense		(132,696	)		(84,359	)

160

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 28 - Income and deferred taxes (continued)

28.4 Income and deferred taxes (continued)

D.7 Equity interest in taxation attributable to investments recognized according to the equity method:

The Company does not recognize any deferred income tax liability in all cases of taxable temporary differences associated with investments in subsidiaries, branches and associated companies or interest in joint ventures, because as indicated in the standard, the following two conditions are jointly met:

(a) the parent company, investor or interest holder is able to control the time for reversal of the temporary difference; and

(b) It is more likely than not that the temporary difference is not reversed in the foreseeable future.

In addition, the Company does not recognize deferred income tax assets for all deductible temporary differences from investments in subsidiaries, branches and associated companies or interests in joint ventures because it is not possible to meet for the following requirements:

(a) Temporary differences are reversed in a foreseeable future; and

(b) The Company has tax earnings, against which temporary differences can be used.

D.8 Information on the tax effects of other comprehensive income components:

	09.30.2011
				ThUS$
Income tax related to components of other income and expense with a charge or credit to net  equity	Amount before taxes			Expense (income) for income taxes		Amount after taxes
Cash flow hedges		(2,700	)		540		(2,160	)
Total		(2,700	)		540		(2,160	)

	09,30,2010
				ThUS$
Income tax related to components of other income and expense with a charge or credit to equity	Amount before taxes			Expense (income) for income taxes		Amount after taxes
Cash flow hedges		(5,683	)		966		(4,717	)
Total		(5,683	)		966		(4,717	)

161

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 28 - Income and deferred taxes (continued)

28.4 Income and deferred taxes (continued)

D.9 Explanation of the relationship between expense (income) for tax purposes and accounting income

In accordance with paragraph No. 81, letter c) of IAS 12, the Company has estimated that the method that discloses more significant information for the users of its financial statements is the reconciliation of tax expense (income) to the result of multiplying income for accounting purposes by the tax rate in force in Chile. This option is based on the fact that the Parent Company and its subsidiaries incorporated in Chile generate almost the total amount of tax expense (income) and the fact that amounts of subsidiaries incorporated in foreign countries have no relevant significance within the context of the total amount of tax expense (income.)

Reconciliation of numbers in income tax expenses (income) and the result of multiplying financial gain by the rate prevailing in Chile.

	09.30.2011			09,30,2010
	ThUS$			ThUS$
	Income (loss)			Income (loss)
Consolidated income before taxes		525,139			363,800
Income tax rate in force in Chile		20	%		17	%
Tax expense using the legal rate		(105,028	)		(61,846	)
Effect of royalty tax expense		(21,022	)		(17,826	)
Effect of non-taxable income		4,625			2,187
Tax effect of rates in other jurisdictions		(2,264	)		(1,049	)
Tax effect of tax rates supported abroad		(4,146	)		(776	)
Other effects from the reconciliation between carrying amount and the tax expense (income)		(4,861	)		(5,049	)
Tax expense using the effective rate		(132,696	)		(84,359	)

162

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 28 - Income and deferred taxes (continued)

28.4 Income and deferred taxes (continued)

D.10 Tax periods potentially subject to verification:

The Company is potentially subject to income tax audits by tax authorities in each country.  These audits are limited to a number of annual 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 tax regulations in force in the country of origin:

a) Chile

In Chile, the tax authority may review tax returns for up to 3 years from the expiration date of the legal term in which the payment should have been made. In the event that there is an administrative or legal notice, the review can be extended to a period of 6 years.

b) 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.

c) Mexico

In Mexico, the tax authority can review tax returns up to 5 years from the expiration date of the tax return.

d) Spain

In Spain, the tax authority can review tax returns up to 4 years from the expiration date of the tax return.

e) 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.

f) 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 an omission or error in the tax return is detected, the review can be extended for a period of up to 5 years.

163

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 28 - Income and deferred taxes (continued)

28.5 Amendments to the income tax law and specific tax on mining in Chile

a) Amendment to Corporate Tax

Law No. 20,455 was published in the Official Gazette of July 31, 2010. Article 1 of this law temporarily increases the Corporate Tax rate set forth in article 20 of the Income Tax Law (ITL), which levies incomes received or accrued within calendar years 2011 and 2012.

In accordance with that temporary increase, the referred-to rate of 17% increases to 20% for income received or accrued within calendar year 2011 (fiscal year 2012); and to 18,5% for income received or accrued within calendar year 2012 (fiscal year 2013).

b) Amendment to the specific tax on mining

Law No. 20,469 was published in the Official Gazette of October 21, 2010, dealing with the following matters:

a. Article 64 bis of the Income Tax Law, which establishes a specific tax on the operating income derived from mining activities earned by a foreign mine operator, was replaced;

b. It included a new article 64 ter, relating to the method to be used to determine the operating taxable income derived from mining activities that, prior to this amendment, were addressed in the replaced article  64 bis;

c.   It amended article 11 ter of Decree Law 600/ 1974; and

d.  It established transitory and optional regulations applicable to investments or companies subject  to articles 7, 11 bis and 11 ter of DL 600/ 1974; transitory article 5 of Law 20,026, and companies included in the provisions set forth in transitory article 4, even when they are not the recipients of foreign investments.

Subsidiaries SQM Salar S.A, and SQM Nitratos S.A. requested approval from the Ministry of Economy to be subject to the provisions set forth in transitory article 4 so they can choose to be subject, from 2013 and for a 5 year period, to the 5% invariability rate as the specific tax on mining.

164

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 29 - Disclosures on accounts maintained in foreign currency

Assets maintained in foreign currency are detailed as follows:

Types of Assets	Currency	09.30.2011 THUS$		12.31.2010 THUS$
Current assets:
Cash and cash equivalents	BRL		18		22
Cash and cash equivalents	CLP		94,746		332,624
Cash and cash equivalents	CNY		214		104
Cash and cash equivalents	EUR		6,988		6,709
Cash and cash equivalents	GBP		4		5
Cash and cash equivalents	IDR		5		16
Cash and cash equivalents	INR		53		-
Cash and cash equivalents	MXN		361		102
Cash and cash equivalents	PEN		57		13
Cash and cash equivalents	YEN		1,270		1,193
Cash and cash equivalents	ZAR		5,166		1,523
Subtotal cash and cash equivalents			108,882		342,311
Other current financial assets	CLP		153,013		69,818
Subtotal Other current financial assets			153,013		69,818
Other current non-financial assets	ARS		40		42
Other current non-financial assets	BRL		4		2
Other current non-financial assets	CLF		-		21
Other current non-financial assets	CLP		23,783		30,966
Other current non-financial assets	CNY		16		23
Other current non-financial assets	EUR		8,156		4,303
Other current non-financial assets	INR		18		-
Other current non-financial assets	MXN		480		552
Other current non-financial assets	PEN		62		331
Other current non-financial assets	YEN		20		-
Other current non-financial assets	ZAR		1,144		167
Subtotal Other current non-financial assets			33,723		36,407
Rade debtors and other accounts receivable	ARS		-		5
Rade debtors and other accounts receivable	BRL		41		64
Rade debtors and other accounts receivable	CLF		1,119		1,015
Rade debtors and other accounts receivable	CLP		127,424		114,108
Rade debtors and other accounts receivable	CNY		50		48
Rade debtors and other accounts receivable	EUR		77,811		97,193
Rade debtors and other accounts receivable	GBP		1,001		409
Rade debtors and other accounts receivable	MXN		153		58
Rade debtors and other accounts receivable	PEN		-		2
Rade debtors and other accounts receivable	YEN		38		2
Rade debtors and other accounts receivable	ZAR		17,754		7,292
Subtotal rade debtors and other accounts receivable			225,391		220,196
Accounts receivable from related entities	CLP		303		111
Accounts receivable from related entities	EUR		2,406		2,651
Accounts receivable from related entities	YEN		74		-
Accounts receivable from related entities	ZAR		343		-
Subtotal Accounts receivable from related entities			3,126		2,762
Current tax assets	AUD		244		-
Current tax assets	CLP		321		9,098
Current tax assets	CNY		-		20
Current tax assets	EUR		218		140
Current tax assets	MXN		14		39
Current tax assets	PEN		221		61
Current tax assets	YEN		5		16
Current tax assets	ZAR		61		123
Subtotal Current tax assets			1,084		9,497
Total current assets			525,219		680,991

165

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 29 - Disclosures on accounts maintained in foreign currency (continued)

Types of Assets	Currency	09.30.2011 THUS$		12.31.2010 THUS$
Non-current assets:
Other non-current financial assets	BRL		29		34
Other non-current financial assets	CLP		20		20
Other non-current financial assets	EUR		3		3
Other non-current financial assets	YEN		61		58
Subtotal Other non-current financial assets			113		115
Other non-financial non-current assets	BRL		241		227
Other non-financial non-current assets	CLP		542		599
Other non-financial non-current assets	YEN		397		373
Subtotal Other non-financial non-current assets			1,180		1,199
Non-current rights receivable	CLF		395		633
Non-current rights receivable	CLP		518		469
Subtotal Non-current rights receivable			913		1,102
Investments accounted for using the equity method	AED		26,107		24,168
Investments accounted for using the equity method	CLP		1,242		1,352
Investments accounted for using the equity method	EGP		1,270		1,435
Investments accounted for using the equity method	EUR		13,353		9,560
Investments accounted for using the equity method	INR		430		432
Investments accounted for using the equity method	THB		1,598		1,543
Investments accounted for using the equity method	TRY		12,926		11,988
Subtotal Investments accounted for using the equity method			56,926		50,478
Intangible assets other than goodwill	CLP		42		-
Subtotal Intangible assets other than goodwill			42		-
Property, plant and equipment	CLP		1,618		1,762
Subtotal Property, plant and equipment			1,618		1,762
Total non-current assets			60,792		54,656
Total assets			586,011		735,647

166

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 29 - Disclosures on accounts maintained in foreign currency (continued)

Liabilities maintained in foreign currency are detailed as follows:

		09.30.2011						12.31.2010
Types of Liabilities	Currency	Up to 90 days THUS$		Over 90 days to 1 year THUS$		Total THUS$		Up to 90 days THUS$		Over 90 days to 1 year THUS$		Total THUS$
Current liabilities
Other current financial liabilities	CLF		4,091		4,134		8,225		3,577		7,749		11,326
Other current financial liabilities	CLP		-		553		553		814		1,508		2,322
Subtotal Other current financial liabilities			4,091		4,687		8,778		4,391		9,257		13,648
Trade and other accounts payable	ARS		-		-		-		1		-		1
Trade and other accounts payable	BRL		2		316		318		341		-		341
Trade and other accounts payable	CHF		228		-		228		-		-		-
Trade and other accounts payable	CLP		74,964		27,313		102,277		85,403		-		85,403
Trade and other accounts payable	CNY		173		-		173		57		-		57
Trade and other accounts payable	EUR		18,783		943		19,726		22,356		1,535		23,891
Trade and other accounts payable	GBP		46		-		46		40		-		40
Trade and other accounts payable	INR		1		-		1		1		-		1
Trade and other accounts payable	MXN		2,737		5		2,742		1,020		140		1,160
Trade and other accounts payable	PEN		-		42		42		43		-		43
Trade and other accounts payable	ZAR		3,493		293		3,786		1,280		1,062		2,342
Subtotal Trade and other accounts payable			100,427		28,912		129,339		110,542		2,737		113,279
Accounts payable to related entities	EUR		-		322		322		-		997		997
Subtotal Accounts payable to related entities			-		322		322		-		997		997
Other short term accruals	ARS		44		-		44		-		-		-
Other short term accruals	BRL		-		1,476		1,476		-		1,634		1,634
Other short term accruals	CLP		261		-		261		20		-		20
Other short term accruals	EUR		24		-		24		323		-		323
Subtotal Other short term accruals			329		1,476		1,805		343		1,634		1,977
Current tax liabilities	ARS		-		3		3		-		-		-
Current tax liabilities	BRL		-		1		1		-		-		-
Current tax liabilities	CLP		-		1,421		1,421		-		-		-
Current tax liabilities	CNY		-		10		10		-		-		-
Current tax liabilities	EUR		-		-		-		-		335		335
Current tax liabilities	MXN		-		73		73		-		-		-
Subtotal Current tax liabilities			-		1,508		1,508		-		335		335
Employee benefits current accruals	CLP		6,942		12,024		18,966		34,211		9,455		43,666
Employee benefits current accruals	MXN		-		361		361		-		292		292
Subtotal Employee benefits current accruals			6,942		12,385		19,327		34,211		9,747		43,958

167

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 29 - Disclosures on accounts maintained in foreign currency (continued)

		09.30.2011						12.31.2010
Types of Liabilities	Currency	Up to 90 days THUS$		Over 90 days to 1 year THUS$		Total THUS$		Up to 90 days THUS$		Over 90 days to 1 year THUS$		Total THUS$
Other non-financial current liabilities	AUD		-		11		11		-		4		4
Other non-financial current liabilities	BRL		9		52		61		12		-		12
Other non-financial current liabilities	CLP		5,517		15,579		21,096		6,299		12,557		18,856
Other non-financial current liabilities	CNY		8		-		8		18		-		18
Other non-financial current liabilities	EUR		24		786		810		29		84		113
Other non-financial current liabilities	MXN		576		57		633		710		54		764
Other non-financial current liabilities	PEN		70		-		70		79		-		79
Other non-financial current liabilities	ZAR		-		5		5		-		-		-
Subtotal Other non-financial current liabilities			6,204		16,490		22,694		7,147		12,699		19,846
Total Current liabilities			117,993		65,780		183,773		156,634		37,406		194,040

168

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 29 - Disclosures on accounts maintained in foreign currency (continued)

		09.30.2011								12.31.2010
Types of Liabilities	Currency	Over 1 year to 3 years THUS$		Over 3 years to 5 years THUS$		Over 5 years THUS$		Total THUS$		Over 1 year to 3 years THUS$		Over 3 years to 5 years THUS$		Over 5 years THUS$		Total MUS$
Non-current liabilities
Other non-current financial liabilities	CLF		74,990		12,280		231,954		319,224		-		66,081		284,056		350,137
Other non-current financial liabilities	CLP		138,941		-		-		138,941		-		154,485		-		154,485
Subtotal Other non-current financial liabilities			213,931		12,280		231,954		458,165		-		220,566		284,056		504,622
Tax liabilities	CLP		75		-		55		130		56		-		36		92
Tax liabilities	MXN		516		-		-		516		-		-		-		-
Subtotal Tax liabilities			591		-		55		646		56		-		36		92
Employee benefits non-current accruals	CLP		-		-		25,300		25,300		-		-		26,578		26,578
Employee benefits non-current accruals	MXN		-		-		180		180		-		-		195		195
Employee benefits non-current accruals	YEN		-		-		464		464		-		-		436		436
Subtotal Employee benefits non-current accruals			-		-		25,944		25,944		-		-		27,209		27,209
Total Other non-current financial liabilities			214,522		12,280		257,953		484,755		56		220,566		311,301		531,923

169

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

Note 30 - Events after the reporting period

30.1  Authorization of the financial statements

The consolidated financial statements of Sociedad Química y Minera S.A. and subsidiaries prepared in accordance with International Financial Reporting Standards for the period ended September 30, 2011 were approved and authorized for issuance by the Board of Directors at their meeting held on November 22, 2011.

The consolidated financial statements of Sociedad Química y Minera S,A, and subsidiaries have been translated into English and adapted in order to comply with US SEC requirements.These consolidated financial statements were approved and authorized for issuance by the Board of Directors whose meeting was held on August 30, 2011.

30.2  Disclosures of subsequent events

On November 22, 2011, it was reported to the Superintendence of Securities and Insurance that the Board of Directors of Sociedad Química y Minera de Chile S.A. (SQM), in its meeting on November 22 of this year, unanimously agreed to pay and distribute the provisional dividend referred to in SQM’s current   “2011 Dividends Policy” which was informed to SQM’s General Annual Ordinary Shareholders Meeting that was held on April 28 of this year. This, for the essential purpose of being able to pay and distribute as of December 19, 2011, a provisional dividend of     US$0.73329 per share –and which is approximately equivalent to the total amount of US$193 million and the latter corresponds to 49.9% of the distributable net income of the fiscal year 2011 that has been accrued at September 30, 2011.  The above, is charged against the net income of said fiscal year, in favor of the Shareholders who appeared registered in SQM’s Shareholders Registry by the 5th working day prior to December 19th, 2011, and in its equivalent in Chilean pesos according to the value of the “Observed dollar” or “USA dollar” that appears published in the Official Gazette on December 13, 2011.

Management is not aware of any other significant events that occurred between September 30, 2011 and the date of issuance of these consolidated financial statements that may significantly affect them.

30.3  Detail of dividends declared after the reporting date

As of the closing date of these financial statements, there are no dividends declared after the reporting date.

170

Notes to the consolidated Financial Statements as of September 30, 2011

(Translation of consolidated financial statements originally issued in Spanish – see Note 2.2)

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.

SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.

Conf:  /s/ Ricardo Ramos R.

Ricardo Ramos R.

Chief Financial Officer

Date: December 22, 2011

171