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Joint Ventures

12 Months Ended

Dec. 31, 2020

Disclosure Of Joint Ventures Explanatory [Abstract]

Disclosure of joint ventures [text block]

Note 9

Joint Ventures

9.1

Policy for the accounting of equity accounted investment in joint ventures

This accounting policy is described in Note 2.6. For these joint ventures there is no quoted market price to measure these investments.

At the date of issuance of these financial statements, the Company is not aware of the existence of any significant contingent liabilities associated with the partnerships in joint ventures.

9.2

Disclosures of interest in joint ventures

Operations conducted in 2020

In the second quarter of 2020, the Company has taken 100% ownership of SQM Vitas BV through the subsidiary Soquimich European Holdings with a cost of ThUS$ 1,276 and its name has been changed to SQM Holland. (See Note 8.1)

In the second quarter of 2020, shares held in Arpa Speciali S.R.L. were sold through SQM Pavoni

& C., SpA. at a value of ThUS$ 56, which brought about a loss of ThUS$ 125. An initial installment of ThUS$ 17 was charged, leaving two pending installments of ThUS$ 20 maturing June 30, 2021 and June 30, 2022. The pending installments are classified as other accounts receivable.

In the third quarter of 2020, shares held in Coromandel SQM India were sold through Soquimich European Holdings B.V. at a value of ThUS$ 1,505, which brought about a loss of ThUS$ 643.

During fourth quarter of 2020, the shares in SQM Qingdao-Star Co, Ltd. were sold through SQM Industrial S.A. for ThUS$ 1,303, which brought about a gain of ThUS$ 62. As of December 31, 2020, the sale proceeds were recorded in other receivables.

A subsequent event associated with the joint venture with Sichuan SQM Migao Chemical Fertilizers Co Ltd. is reported in Note 31.2. Accordingly, the effect on the statement of income for the fourth quarter of 2020 under "Other gains (losses)" is a gain of ThUS$7,036 on the reversal of the impairment associated with this investment.

Operations conducted in 2019

On January 01, 2019, SQM Vitas Perú changed its functional currency from the Peruvian sol to Dollar.

Operations conducted in 2018

During the first quarter of 2018, Minera Exar S.A. increased its capital by ThUS$ 13,000. The entity was a joint venture and contributions were made on January 25, 2018 (ThUS$ 6,000) and on February 14, 2018 (ThUS$ 7,000) by SQM Potasio S.A. and Lithium Americas Corporation (LAC). Both partners share 50% ownership of the respective company.

On March 14, 2018, the company SQM Vitas Plantacote B.V. was closed.

As of the date, Minera Exar S.A. has changed its functional currency from the Argentine peso to the United States dollar.

In April 2018, Minera Exar made a new capital increase of ThUS$ 7,000, which was contributed in equal parts by its partners.

On May 15, 2018, the subsidiary Soquimich European Holdings BV, signed a joint venture agreement with PAVONI & C., SpA in Italy, EUR 5.5 million were paid for a 50% share, generating a lower value of EUR 2.6 million. The functional currency of the joint venture is the Euro.

On December 31, 2018, the conditions were met for Covalent Lithium Pty Ltd, to be recognized as a separate joint venture. In previous years, the financial statements for this entity were included as part of SQM Australia Pty.

On December 31, 2018, as part of the investment in Pavoni & C., SpA. the goodwill generated in the purchase of this joint venture by an amount of ThUS$ 3,206.

The subsidiary SQM Industrial S.A. recorded an impairment loss of ThUS$ 8,802, corresponding to its Sichuan SQM-Migao Chemical Fertilizer Co, Ltd, joint venture. The impairment is disclosed by netting the value of the aforementioned investment, in the caption “Equity method investments".

During December 2018, the Company sold its shares in Minera Exar S.A. and generated a profit before taxes of ThUS$ 14,507.

9.3

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

							Dividends received for the period ending
Joint venture	Description of the nature of the relationship	Domicile	Country of incorporation	Share of interest in ownership			As of December 31, 2020		As of December 31, 2019		As of December 31, 2018
							ThUS$		ThUS$		ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.	Production and distribution of soluble fertilizers.	Huangjing Road, Dawan Town, Qingbaijiang District, Chengdu Municipality, Sichuan Province	China		50	%		-		-		-
Coromandel SQM India	Production and distribution of potassium nitrate.	1-2-10, Sardar Patel Road, Secunderabad – 500003 Andhra Pradesh	India		50	%		-		-		-
SQM Vitas Fzco.	Production and commercialization of specialty plant, animal nutrition and industrial hygiene.	Jebel ALI Free Zone P.O. Box 18222, Dubai	United Arab Emirates		50	%		-		10,598		-
SQM Qingdao Star Corp Nutrition Co. Ltd.	Production and distribution of nutrient plant solutions with specialties NPK soluble.	Longquan Town, Jimo City, Qingdao Municipality, Shangdong Province	China		50	%		2,223		-		-
SQM Vitas Holland	Without information production of specialized fertilizers and other products for distribution in Italy and other countries.	Herikerbergweg 238, 1101 CM Amsterdam Zuidoost	Holland		50	%		-		-		-
Pavoni & C. Spa	products for distribution in Italy and other countries.	Corso Italia 172, 95129 Catania (CT), Sicilia	Italy		50	%		-		-		-
Covalent Lithium Pty Ltd.	Development and operation of the Mt Holland Lithium project, which will include the construction of a lithium extraction and refining mine	L18, 109 St Georges Tce Perth WA 6000 \|PO Box Z5200 St Georges Tce Perth WA 6831	Australia		50	%		-		-		-
Total								2,223		10,598		-

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

(1)

SQM Vitas Fzco.

(2)

Pavoni & C. Spa.

							Dividends received for the period ending
Joint venture	Description of the nature of the relationship	Domicile	Country of incorporation	Share of interest in ownership (*)			As of December 31, 2020		As of December 31, 2019		As of December 31, 2018
							ThUS$		ThUS$		ThUS$
SQM Vitas Brasil Agroindustria (1)	Production and trading of specialty vegetable and animal nutrition and industrial hygiene.	Via Cndeias, Km. 01 Sem Numero, Lote 4, Bairro Cia Norte, Candeias, Bahia.	Brazil		49.99	%		-		-		-
SQM Vitas Perú S.A.C. (1)	Production and trading of specialty vegetable and animal nutrition and industrial hygiene	Av. Juan de Arona 187, Torre B, Oficina 301-II, San Isidro, Lima	Peru		50	%		-		-		-
Arpa Speciali S.R.L. (2)	Production of specialty fertilizers and others for distribution in Italy and other countries.	Mantova (MN) Via Cremona 27 Int. 25	Italy		50.48	%		-		-		-
Total								-		-		-

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

	Equity-accounted investees						Share in profit (loss) of associates and joint ventures accounted for using the equity method
Joint Venture	As of December 31, 2020 (****)		As of December 31, 2019 (****)		As of December 31, 2018 (****)		As of December 31, 2020			As of December 31, 2019			As of December 31, 2018
	ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
Coromandel SQM India (*)		-		1,568		1,729		-			(98	)		174
SQM Vitas Fzco.		9,720		9,111		20,202		2,010			1,797			1,781
SQM Qingdao Star Corp Nutrition Co. Ltd. (*)		-		3,464		3,168		83			296			188
SQM Vitas B.V.		-		1,304		1,345		-			(15	)		(14	)
Minera Exar S.A. (1)		-		-		-		-			-			(206	)
Pavoni & C. Spa		7,222		6,864		7,084		9			36			(39	)
Covalent Lithium Pty Ltd. (**)		-		40		53		-			-			36
Sichuan SQM Migao Chemical Fertilizers Co Ltd. (***)		9,028		1,992		1,992		(280	)		(632	)		(650	)
Total		25,970		24,343		35,573		1,822			1,384			1,270

	Share on other comprehensive income of associates and joint ventures accounted for using the equity method, net of tax									Share on total other comprehensive income of associates and joint ventures accounted for using the equity method
Joint Venture	As of December 31, 2020			As of December 31, 2019			As of December 31, 2018			As of December 31, 2020			As of December 31, 2019			As of December 31, 2018
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Coromandel SQM India (*)		-			(38	)		(159	)		-			(136	)		15
SQM Vitas Fzco.		(1,469	)		437			(903	)		541			2,234			878
SQM Qingdao Star Corp Nutrition Co. Ltd. (*)		-			-			-			83			296			188
SQM Vitas B.V.		-			(27	)		(70	)		-			(42	)		(84	)
Minera Exar S.A. (1)		-			-			-			-			-			(206	)
Pavoni & C. Spa		349			(255	)		70			358			(219	)		31
Covalent Lithium Pty Ltd. (**)		16			(13	)		-			16			(13	)		36
Sichuan SQM Migao Chemical Fertilizers Co Ltd. (***)		-			-			-			(280	)		(632	)		(650	)
Total		(1,104	)		104			(1,062	)		718			1,488			208

(*) As of December 31, 2020, these investments were no longer part of the group, see note 9.2 (a).

(**) As of December 31, 2020, this joint venture has a negative value of ThUS$ (92), which is presented in Other non-current provisions.

(***) See subsequent events in Notes 9.2 and 29.2.

(****) These investments include adjustments for unrealized gains.

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

	Equity-accounted investees						Share in profit (loss) of associates and joint ventures accounted for using the equity method
Joint Venture	As of December 31, 2020		As of December 31, 2019		As of December 31, 2018		As of December 31, 2020		As of December 31, 2019		As of December 31, 2018
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
SQM Vitas Brasil Agroindustria (1)		3,511		5,347		5,915		1,018		564		1,439
SQM Vitas Perú S.A.C. (1)		1,659		1,955		2,671		660		211		(275	)
Arpa Speciali S.R.L. (2) (*)		-		92		62		-		31		(44	)
Total		5,170		7,394		8,648		1,678		806		1,120

	Share on other comprehensive income of associates and joint ventures accounted for using the equity method, net of tax									Share on total other comprehensive income of associates and joint ventures accounted for using the equity method
Joint Venture	As of December 31, 2020			As of December 31, 2019			As of December 31, 2018			As of December 31, 2020			As of December 31, 2019		As of December 31, 2018
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$
SQM Vitas Brasil Agroindustria (1)		(1,469	)		(225	)		(792	)		(451	)		339		647
SQM Vitas Perú S.A.C. (1)		-			661			(112	)		660			872		(387	)
Arpa Speciali S.R.L. (2) (*)		-			(1	)		-			-			30		(44	)
Total		(1,469	)		435			(904	)		209			1,241		216

The following companies are subsidiaries of:

(1)

SQM Vitas Fzco.

(2)

Pavoni & C. Spa

9.4	Assets, liabilities, revenue and expenses from joint ventures

	As of December 31, 2020									For the period ended December 31, 2020
	Assets					Liabilities						Gain (loss) from continuing			Other comprehensive			Comprehensive
Joint Venture	Current			Non-current		Current		Non-current		Revenue		operations			income			income
	ThUS$			ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		29,507			4,412		14,156		-		9		(562	)		-			(562	)
Coromandel SQM India		-			-		-		-		-		-			-			-
SQM Vitas Fzco.		(496	)		20,431		496		-		-		4,019			-			4,019
SQM Qingdao Star Corp Nutrition Co. Ltd.		-			-		-		-		-		-			-			-
SQM Vitas Brasil Agroindustria		40,064			5,527		33,410		-		78,960		2,036			(2,938	)		(902	)
SQM Vitas Perú S.A.C.		34,548			7,928		33,145		1,080		37,591		1,319			-			1,319
Pavoni & C. Spa		10,645			7,493		9,270		836		15,958		16			698			714
Covalent Lithium Pty Ltd.		1,418			2,131		2,823		910		-		(232	)		33			(199	)
Total		115,686			47,922		93,300		2,826		132,518		6,596			(2,207	)		4,389

	As of December 31, 2019								For the period ended December 31, 2019
	Assets				Liabilities						Gain (loss) from continuing			Other comprehensive			Comprehensive
Joint Venture	Current		Non-current		Current		Non-current		Revenue		operations			income			income
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		28,668		5,129		13,472		-		7		(1,262	)		-			(1,262	)
Coromandel SQM India		4,504		633		1,704		-		8,197		(197	)		(77	)		(274	)
SQM Vitas Fzco.		9,695		1		1,136		-		36		3,595			(876	)		2,719
SQM Qingdao Star Corp Nutrition Co. Ltd.		7,534		26		632		-		12,003		592			-			592
SQM Vitas B.V.		2,609		-		2		-		-		(30	)		(53	)		(83	)
SQM Vitas Brasil Agroindustria		46,118		7,299		40,334		-		87,901		1,128			(451	)		677
SQM Vitas Perú S.A.C.		29,452		8,378		24,855		6,044		28,590		421			1,322			1,743
Pavoni & C. Spa		9,444		7,074		8,466		735		14,296		71			(510	)		(439	)
Covalent Lithium Pty Ltd.		1,616		958		2,111		383		-		-			(25	)		(25	)
Total		139,640		29,498		92,712		7,162		151,030		4,318			(670	)		3,648

	As of December 31, 2018								For the period ended December 31, 2018
	Assets				Liabilities						Gain (loss) from continuing			Other comprehensive			Comprehensive
Joint Venture	Current		Non-current		Current		Non-current		Revenue		operations			income			income
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		28,577		5,913		12,902		-		16		(1,301	)		-			(1,301	)
Coromandel SQM India		5,905		852		3,050		-		11,605		348			(318	)		30
SQM Vitas Fzco.		30,430		17,592		2,678		-		16,583		3,561			(1,806	)		1,755
SQM Qingdao Star Corp Nutrition Co. Ltd.		7,754		114		1,533		-		13,004		377			-			377
SQM Vitas B.V.		2,692		-		1		-		-		(28	)		(139	)		(167	)
SQM Vitas Brasil Agroindustria		36,648		7,566		31,808		-		82,625		2,879			(1,585	)		1,294
SQM Vitas Perú S.A.C.		22,365		7,785		18,996		5,966		28,619		(550	)		(223	)		(773	)
Pavoni & C. Spa		10,062		6,490		8,098		698		15,461		(79	)		140			61
Covalent Lithium Pty Ltd.		239		100		233		-		-		106			-			106
Total		144,672		46,412		79,299		6,664		167,913		5,313			(3,931	)		1,382

9.5

Other Joint Venture disclosures

	Cash and cash equivalents				Other current financial liabilities				Other non-current financial liabilities
Joint Venture	As of December 31, 2020		As of December 31, 2019		As of December 31, 2020		As of December 31, 2019		As of December 31, 2020		As of December 31, 2019
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		30		33		-		-		-		-
Coromandel SQM India		-		2,240		-		-		-		-
SQM Vitas Fzco.		4,251		3,071		-		-		-		-
SQM Qingdao Star Corp Nutrition Co. Ltd.		-		4,640		-		-		-		-
SQM Vitas B.V.		-		2,609		-		-		-		-
SQM Vitas Brasil Agroindustria		4,065		2,101		6,820		9,106		-		-
SQM Vitas Perú S.A.C.		1,043		225		227		258		691		895
Pavoni & C. Spa		767		314		5,573		5,509		-		-
Covalent Lithium Pty Ltd.		653		693		953		472		-		-
Total		10,809		15,926		13,573		15,345		691		895

	Depreciation and amortization expense for the period ending						Interest expense for the period ending						Income tax benefit (expense) for the period ending
Joint Venture	As of December 31, 2020			As of December 31, 2019			As of December 31, 2020			As of December 31, 2019			As of December 31, 2020			As of December 31, 2019
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		(394	)		(743	)		-			-			244			153
Coromandel SQM India		-			(291	)		-			(4	)		-			(27	)
SQM Vitas Fzco.		(1	)		-			(2	)		(7	)		-			-
SQM Qingdao Star Corp Nutrition Co. Ltd.		-			(62	)		-			-			-			(241	)
SQM Vitas B.V.		-			-			-			(1	)		-			-
SQM Vitas Brasil Agroindustria		(355	)		(33	)		(656	)		(1,176	)		(34	)		181
SQM Vitas Perú S.A.C.		(257	)		(287	)		(326	)		(435	)		(197	)		(316	)
Pavoni & C. Spa		(263	)		(149	)		(410	)		-			(120	)		(214	)
Covalent Lithium Pty Ltd.		(213	)		(126	)		(18	)		(32	)		714			-
Total		(1,483	)		(1,691	)		(1,412	)		(1,655	)		607			(464	)

9.6

Joint Ventures

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

On January 23, 2020, after finalizing the definitive feasibility study, the Company and its project partner Wesfarmers Limited, have decided to postpone the final investment decision to the first quarter of 2021.

In addition, the Company will finance the activities of Mt Holland for a year in an amount of US$ 30 million. As of December 31, 2020, the Company had made contributions in the amount of US$ 30 million, of which, US$ 15 million was paid in favor of the partner in the project and presented as other receivables. If the Company does not approve the investment decision, Wesfarmers Limited does not have an obligation to pay the joint venture an amount equal to the amount contributed by the Company.

See subsequent events in Note 29.2.