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Provisions and other non-financial liabilities | 12 Months Ended
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Dec. 31, 2021
Disclosure of other provisions [abstract] |
Disclosure of provisions [text block] |
Note 18 | Provisions and other non-financial liabilities
| 18.1 | Types of provisions
|  | As of December 31, 2021 |  |  | As of December 31, 2020 |
Types of provisions |  | Current |  |  | Non-current |  |  | Total |  |  | Current |  |  | Non-current |  |  | Total |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
Provision for legal complaints (1) |  |  | 48,518 |  |  |  | 1,223 |  |  |  | 49,741 |  |  |  | 8,905 |  |  |  | 1,260 |  |  |  | 10,165 |
Provision for dismantling, restoration and rehabilitation cost (2) |  |  | - |  |  |  | 58,592 |  |  |  | 58,592 |  |  |  | - |  |  |  | 61,265 |  |  |  | 61,265 |
Other provisions (3) |  |  | 269,148 |  |  |  | 1,223 |  |  |  | 270,371 |  |  |  | 95,261 |  |  |  | 92 |  |  |  | 95,353 |
Total |  |  | 317,666 |  |  |  | 61,038 |  |  |  | 378,704 |  |  |  | 104,166 |  |  |  | 62,617 |  |  |  | 166,783 |
(1) These provisions correspond to legal processes that are pending resolution or that have not yet been disbursed, these provisions are mainly related to litigation involving the subsidiaries located in Chile, Brazil and the United States (see note 20.1). (2) The commitments related to Sernageomin have been incorporated through the issuance of the guarantee for the restoration of the place where the production sites are located. (3) See Note 18.2.
| 18.2 | Description of other provisions
Current provisions, other short-term provisions |  | As of December 31, 2021 |  |  | As of December 31, 2020 |
|  | ThUS$ |  |  | ThUS$ |
Rent under Lease contract (1) |  |  | 260,889 |  |  |  | 85,167 |
Provision for additional tax related to foreign loans |  |  | 1,027 |  |  |  | 740 |
End of agreement bonus |  |  | 2,792 |  |  |  | 8,159 |
Directors’ per diem allowance |  |  | 3,938 |  |  |  | 698 |
Miscellaneous provisions |  |  | 502 |  |  |  | 497 |
Total |  |  | 269,148 |  |  |  | 95,261 |
(1) Payment Obligations for the lease contract with CORFO: These correspond to obligations assumed in the Lease Agreement. Our subsidiary SQM Salar holds exclusive rights to exploit the mineral resources in an area covering approximately 140,000 hectares of land in the Salar de Atacama in northern Chile, of which SQM Salar is only entitled to exploit the mineral resources in 81,920 hectares. These rights are owned by Corfo and leased to SQM Salar pursuant to the Lease Agreement. Corfo cannot unilaterally amend the Lease Agreement and the Project Agreement, and the rights to exploit the resources cannot be transferred. The Lease Agreement establishes that SQM Salar is responsible for making quarterly lease payments to Corfo according to specified percentages of the value of production of minerals extracted from the Salar de Atacama brines, maintaining Corfo’s rights over the Mining Exploitation Concessions and making annual payments to the Chilean government for such concession rights. The Lease Agreement was entered into in 1993 and expires on December 31, 2030. On January 17, 2018, SQM and CORFO reached an agreement to end an arbitration process directed by the arbitrator, Mr. Héctor Humeres Noguer, in case 1954-2014 of the Arbitration and Mediation Center of Santiago Chamber of Commerce and other cases related to it. The agreement signed in January 2018, includes important amendments to the lease agreement and project agreement signed between CORFO and SQM in 1993. The main modifications became effective on April 10, 2018 and requires an increase in the lease payments by increasing the lease rates associated with the sale of the different products produced in the Salar de Atacama, including lithium carbonate, lithium hydroxide and potassium chloride. This agreement has been amended since it was signed, and it is reasonable to expect that it will continue to be amended as mutually agreed by the parties. Additionally, SQM Salar commits to contribute to research and development efforts, as well as to the communities in close proximity to the Salar de Atacama and provide a percentage of total annual sales of SQM Salar to regional development. SQM Salar commits to contribute between US$10.8 million and US$18.9 million per year to research and development efforts, between US$10 to US$15 million per year to the communities in close proximity to the Salar de Atacama, and 1.7% of total annual sales of SQM Salar to regional development .
| 18.3 | Other non-financial liabilities, Current
Description of other liabilities |  | As of December 31, 2021 |  |  | As of December 31, 2020 |
|  | ThUS$ |  |  | ThUS$ |
Tax withholdings |  |  | 21,546 |  |  |  | 1,208 |
VAT payable |  |  | 26,111 |  |  |  | 1,642 |
Guarantees received |  |  | 746 |  |  |  | 2,636 |
Accrual for dividend |  |  | 34,184 |  |  |  | 8,027 |
Monthly tax provisional payments |  |  | 23,319 |  |  |  | 8,407 |
Deferred income |  |  | 5,605 |  |  |  | 6,435 |
Withholdings from employees and salaries payable |  |  | 5,587 |  |  |  | 5,017 |
Accrued vacations (1) |  |  | 23,467 |  |  |  | 24,003 |
Other current liabilities |  |  | 1,109 |  |  |  | 3,580 |
Total |  |  | 141,674 |  |  |  | 60,955 |
(1) Vacation benefit (short-term benefits to employees, current) is in line with the provisions established in Chile’s Labor Code, which indicates that employees with more than a year of service will be entitled to annual vacation for a period of at least fifteen paid business days. The Company provides the benefit of two additional vacation days.
18.4 | Changes in provisions
Description of items that gave rise to variations as of December 31, 2021 |  | Legal complaints |  |  | Provision for dismantling, restoration and rehabilitation cost |  |  | Other provisions |  |  | Total |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
Total provisions, initial balance |  |  | 10,165 |  |  |  | 61,265 |  |  |  | 95,353 |  |  |  | 166,783 |
Changes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Additional provisions |  |  | 48,012 |  |  |  | 7,302 |  |  |  | 232,254 |  |  |  | 287,568 |
Provision used |  |  | (8,399 | ) |  |  | - |  |  |  | (56,959 | ) |  |  | (65,358 | )
Increase(decrease) in foreign currency exchange |  |  | (37 | ) |  |  | - |  |  |  | (35 | ) |  |  | (72 | )
Others |  |  | - |  |  |  | (9,975 | ) |  |  | (242 | ) |  |  | (10,217 | )
Total Increase (decreases) |  |  | 39,576 |  |  |  | (2,673 | ) |  |  | 175,018 |  |  |  | 211,921 |
Total |  |  | 49,741 |  |  |  | 58,592 |  |  |  | 270,371 |  |  |  | 378,704 |
Description of items that gave rise to variations as of December 31, 2020 |  | Legal complaints |  |  | Provision for dismantling, restoration and rehabilitation cost |  |  | Other provisions |  |  | Total |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
Total provisions, initial balance |  |  | 14,924 |  |  |  | 33,238 |  |  |  | 97,093 |  |  |  | 145,255 |
Changes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Additional provisions |  |  | 62,922 |  |  |  | 30,974 |  |  |  | 60,685 |  |  |  | 154,581 |
Provision used |  |  | (67,685 | ) |  |  | - |  |  |  | (59,939 | ) |  |  | (127,624 | )
Increase(decrease) in foreign currency exchange |  |  | 4 |  |  |  | - |  |  |  | (2,486 | ) |  |  | (2,482 | )
Others |  |  | - |  |  |  | (2,947 | ) |  |  | - |  |  |  | (2,947 | )
Total Increase (decreases) |  |  | (4,759 | ) |  |  | 28,027 |  |  |  | (1,740 | ) |  |  | 21,528 |
Total |  |  | 10,165 |  |  |  | 61,265 |  |  |  | 95,353 |  |  |  | 166,783 |
Description of items that gave rise to variations as of December 31, 2019 |  | Legal complaints |  |  | Provision for dismantling, restoration and rehabilitation cost |  |  | Other provisions |  |  | Total |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
Total provisions, initial balance |  |  | 14,862 |  |  |  | 28,822 |  |  |  | 94,335 |  |  |  | 138,019 |
Changes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Additional provisions |  |  | 4,111 |  |  |  | - |  |  |  | 150,314 |  |  |  | 154,425 |
Provision used |  |  | (4,049 | ) |  |  | - |  |  |  | (147,532 | ) |  |  | (151,581 | )
Increase(decrease) in foreign currency exchange |  |  | - |  |  |  | - |  |  |  | (24 | ) |  |  | (24 | )
Others |  |  | - |  |  |  | 4,416 |  |  |  | - |  |  |  | 4,416 |
Total Increase (decreases) |  |  | 62 |  |  |  | 4,416 |  |  |  | 2,758 |  |  |  | 7,236 |
Total |  |  | 14,924 |  |  |  | 33,238 |  |  |  | 97,093 |  |  |  | 145,255 |

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