financing-and-investment-policy

Financing and Investment Policy

Investment Policy

  • Areas of investment: SQM may invest in anything related to its objectives, in the activities and with the purposes described in its By-laws and at the time, in the amount, and in the measure necessary to maintain or augment its operations and interests. According to the above, SQM may particularly invest in projects and works that allow maintaining, improving, or increasing its production capacity, commercialization, diversification of products or opening markets, and in fixed assets or other assets such as shares and rights in companies that have some relation to its objectives and which allow increasing the profits, functionality, or performance of SQM.
  • Maximum limit of investment: The maximum investment limit shall be determined by the possibility of financing the respective investments. The resources required for said purpose could come from internal sources -Dividend Policy- and external sources -Finance Policy-. Consequently, the maximum investment limit will be determined by the capacity that SQM has or generates to obtain the necessary funds to make such investments in accordance with the aforementioned Policies.
  • Participation in the control of areas of investment: SQM is not subject to special regulations in the control of Areas of Investment. This, regardless of the ability of SQM’s Administration to ensure the highest returns from said Areas.

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Finance Policy

  • Maximum level of debt: The maximum level of consolidated debt of SQM shall be given by the Debt/Equity ratio of “one point five". This limit may only be exceeded if management has obtained express prior authorization in this regard from the Shareholders at an Extraordinary Shareholders Meeting.
  • Attributions of SQM’S Administration to arrange or agree upon restrictions to the distribution of dividends with creditors: SQM’s Administration shall not have the power to arrange or agree upon, with its creditors, one or more restrictions to the distribution of dividends. This, with the exception of the portion of those that come from limitations to profit sharing in companies in which SQM participates and which are formed for the purpose of realizing projects which financing obliges to agree upon such restrictions.
  • Authority of SQM's management to arrange or agree with creditors upon the granting of guaranties or security interests or other liens: SQM's management shall not have the authority to arrange or agree upon, with its creditors, the granting of guaranties, security interests or other liens to finance investments other than guaranties, security interests or other liens on the assets of or ownership interests in any investment project to which the guaranty, security interest or other lien relates, with the sole exception of any and all guaranties, security interests or other liens that the SQM management deems presently necessary or necessary in the future and freely grants or constitutes in favor of one or more subsidiary companies, which such guaranties, security interests and other liens are hereby broadly and expressly authorized and approved.

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Powers of SQM'S Management for the Subscription, Amendment of Revocation of Contracts involving purchases, sales, or leasing of goods and services essential to the operationf of SQM

SQM’s Management understands that the contracts or agreements essential for the normal operation of SQM and its subsidiaries are those related with:

  • The provision or supply of raw materials, supplies, materials and spare parts necessary for the exploration and exploitation of mining concessions or for the production of the goods produced by SQM or by third parties in which or with which it has some participation or connection.
  • The provision of services that allow the obtainment of the Company’s purposes.
  • The commercialization of the products that SQM produces, acquires, or receives in property or on consignment.
  • The insurance of SQM’s goods, facilities, offices, securities, and other assets and resources.
  • The study and execution of SQM’s investment projects.
  • The hiring of SQM employees and their individual or collective employment conditions and terms.

SQM’s Management shall have the necessary and sufficient powers and authority for the subscription, amendment, annulment, and revocation of those contracts or agreements related to the same, similar or different matters than those indicated above, while observing the prevailing market conditions and the pertinent regulations and legal and statutory provisions.

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Investor Relations