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Sustainable Production from Natural Resources: The SQM Experience

Sustainable Production from Natural Resources: The SQM Experience. Patricio Contesse G. Chief Executive Officer. SQM. World major producer potassium nitrate , iodine and lithium Earnings 2013: US$ 467.1 millions 4,700 employees and 5,400 contractors

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Sustainable Production from Natural Resources: The SQM Experience

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  1. Sustainable Production from Natural Resources: The SQM Experience Patricio Contesse G. Chief Executive Officer

  2. SQM • World major producer potassium nitrate, iodine and lithium • Earnings 2013: US$ 467.1 millions • 4,700 employees and 5,400 contractors • Production: + 2.5 million ton/year; delivered to 115 countries Nuestros productos Business Lines 35% Iodine and derivatives 21%Specialty Plant Nutrition 24%Potassium 11%Lithium and derivatives 8%Industrial Chemicals

  3. Natural Resources Caliche Brines Nitrate Potassium Iodine Lithium

  4. SustainableDevelopmentPolicy • Safety, Health, Environment, Quality and Community Management Systems Objectives • Safe workplace for workers • Care for the environment • Efficient use of resources • Costumer satisfaction • Good neighbor to the community Certification on Responsible Care, international protocol for the Chemical Industry

  5. CarefortheEnvironment • We operate near sensitive sites … • Salar de Atacama • In its borders there are • Lagoons, meadows and wetlands with reach wildlife • Some areas are National Reserve • Indegenouscommunities • Pampa del Tamarugal and Salar de Llamara • Tamarugo forest (protected specie) • Wildlife • Lagoons with stromatolites • Some areas are National Reserve • Local small farmers

  6. CarefortheEnvironment • We apply high standards … • Minimize potential impact implementing control and mitigation measures • Develop extensive scientific studies ; basis for environmental assessment and operation • All operations are audited regularly by authorities; decades without fines

  7. CarefortheEnvironment • We apply high standards … • Develop environmental education programs for the community; jointly with public organizations • Contribute with scientific studies to increase knowledge of valuable ecological systems EnvironmentalEducation Center at Pampa del Tamarugal

  8. CarefortheEnvironment Biodiversity Emissions to Air Waste Handling Water Energy • Recirculationto processes • Monitoring of environmental impact • 846 l/s average consumption, equivalent to irrigation water for aprox. 300 hectares • Specialized Studiesonbiota and hydrogeology • Robust Monitoring Plans at Salar de Atacama and Pampa del Tamarugal • Thousands of variables monitored • 82.7Million GJ total energy consumption • 92% of energy used is solar energy • Air quality monitoring • Reduction of PM10 at Maria Elena and Tocopilla Port • Estimation of GHG emissions • Authorized management systems • Over 50% of dangerous waste is disposed for recycling

  9. CarefortheEnvironment • Our products contribute to Non-Conventional Renewable Energy Projects … • Solar salts are used for thermal accumulation of solar energy; allows for continuous energy supply (day/night) • Mixture of 60% sodium nitrate and 40% potassium nitrate, both produced by SQM • For every 50 MW project -> 30 Th MT of solar salts. • There are a total of 1,600 MW of Solar Plants operating with thermal storage systems • A new plant will be installed in northern Chile (110 MW)

  10. RelationshipwiththeCommunity StrategicGuidelines “Wemantain a close and longtermrelationshipwithourneighbors, basedonrespect, trust and mutual development”. • Open dialogue with representatives of the communities near our operations and authorities. • Local development programs aligned with the needs of the community, emphasizing • Education • Culture and historical heritage • Social development

  11. RelationshipwiththeCommunity Open Dialogue • Annual communication program with members of the community • Delivery of regular information on environmental issues • Involvement in environmental monitoring and auditing fieldwork • Presentation of results of annual independent audit • Open visits to our operation facilities • Participation of local community in external auditing program • SQM participates in significant local events

  12. RelationshipwiththeCommunity Cultural heritage Research an publications on local cultural heritage Participation in several Saltpeter Heritage Corporations Improvements in Historical Area at Maria Elena Education Literary contest about the Saltpeter heritage School support on Math and extracurricular activities Support cultural and artistic expressions, traditional festivals and carnivals Support Micro-entrepreneurship Micro-entrepreneurship Fund Tourism Development Program Atacama Tierra Fertil Program

  13. RelationshipwiththeCommunity Social Development Programs • Valued by the local community; developed jointly with the community and based on their interests • Supported by authorities • Agricultural Program “Atacama Tierra Fertil” has proven to be a success for local farmers • Hydroponics: lettuce, strawberries, tomatos • Alfalfa crops with modern irrigation systems • Includes educational program at local technical school: LiceoLikanAntai

  14. Final Remarks • We develop our business with a long term perspective … • … a profitable business, committed with our employees, care for the environment and the development of the community.

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