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 Production: + 2.5 million ton/year; delivered to 115 Nuestros productos countries Business Lines 35% Iodine and derivatives 21% Specialty Plant Nutrition 24% Potassium 11% Lithium and derivatives 8% Industrial Chemicals Natural Resources Caliche Brines Nitrate Potassium Iodine Lithium Sustainable Development Policy 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 Care for the Environment 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 Biodiversity Specialized Studies on biota and hydrogeology Robust Monitoring Plans at Salar de Atacama and Pampa del Tamarugal Thousands of variables monitored Water Recirculation to processes Monitoring of environmental impact 846 l/s average consumption, equivalent to irrigation water for aprox. 300 hectares Energy 82.7 Million GJ total energy consumption 92% of energy used is solar energy Emissions to Air Air quality monitoring Reduction of PM10 at Maria Elena and Tocopilla Port Estimation of GHG emissions Waste Handling Authorized management systems Over 50% of dangerous waste is disposed for recycling Care for the Environment Our products contribute to NonConventional 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) Relationship with the Community Strategic Guidelines 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 “We mantain a close and long term relationship with our neighbors, based on respect, trust and mutual development”. Relationship with the Community 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 Relationship with the Community 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 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.