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

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

Natural Resources Caliche Brines Nitrate Iodine Potassium Lithium

Sustainable Development Policy  Safe workplace for workers  Care for the environment  Efficient use of resources  Costumer satisfaction  Good neighbor to the community  Safety, Health, Environment, Quality and Community Management Systems Objectives Certification on Responsible Care, international protocol for the Chemical Industry

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 Indegenous communities  Pampa del Tamarugal and Salar de Llamara Tamarugo forest (protected specie) Wildlife Lagoons with stromatolites Some areas are National Reserve Local small farmers Care for the Environment

 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

Care for the Environment  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 Environmental Education Center at Pampa del Tamarugal

Care for the Environment Energy Biodiversity  82.7 Million GJ total energy consumption  92% of energy used is solar energy  Specialized Studies on biota and hydrogeology  Robust Monitoring Plans at Salar de Atacama and Pampa del Tamarugal  Thousands of variables monitored Water Emissions to Air Waste Handling  Recirculation to processes  Monitoring of environmental impact  846 l/s average consumption, equivalent to irrigation water for aprox. 300 hectares  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

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) Care for the Environment

“We mantain a close and long term relationship with our neighbors, based on respect, trust and mutual development”. Strategic Guidelines Relationship with the Community  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

Open Dialogue Relationship with the Community  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

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 Relationship with the Community

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: Liceo Likan Antai Relationship with the Community

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.