UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 

FORM 6-K 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 
OF THE SECURITIES AND EXCHANGE ACT OF 1934
Includes the free translation of a material event sent by Sociedad Química y Minera de Chile S.A. to the 
Superintendencia de Valores y Seguros de Chile on April 26, 2005. 
SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.
(Exact name of registrant as specified in its charter)
CHEMICAL AND MINING COMPANY OF CHILE INC.
(Translation of registrant's name into English) 
El Trovador 4285, Santiago, Chile (562) 425-2000
(Address and phone number of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. 
Form 20-F                   Form 40-F 
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. 
Yes                        No 
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82 ___________ 

	
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On April 26, 2005, the Registrant filed with the Superintendencia de Valores y Seguros of Chile (the “SVS”) a report that included information as to the Registrant's consolidated financial condition and results of operations for the three-month period ended on March 31, 2005. Attached is a summary of such consolidated financial information included in the summary and in the report filed with the Superintendencia de Valores y Seguros of Chile. This financial information was prepared on the basis of accounting principles generally accepted in Chile and does not include a reconciliation of such information to accounting principles generally accepted in the United States of America. 

THIS REPORT IS AN ENGLISH TRANSLATION OF, AND A CHILEAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES PRESENTATION OF, A THREE MONTH PERIOD ENDED MARCH 31, 2005 REPORT FILED WITH THE SUPERINTENDENCIA DE VALORES Y SEGUROS (SVS) IN CHILE, AND UNLESS OTHERWISE INDICATED, FIGURES ARE IN US DOLLARS.	

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Consolidated Financial Statements 
SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.
As of March 31, 2005 and 2004 
     and for the years ended March 31, 2005 and 2004 
(A translation of the original in Spanish- see note 2 (a)) 
Contents	 	
 	 	
Consolidated Financial Statements	 	
 	 	
Consolidated Balance Sheets	2	
Consolidated Statements of Income	4	
Consolidated Statements of Cash Flows	5	
Notes to the Consolidated Financial Statements	6	
 
Ch$	-	Chilean pesos	
ThCh$	-	Thousands of Chilean pesos	
US$	-	United States dollars	
ThUS$	-	Thousands of United States dollars	
UF	-	The UF is an inflation-indexed, Chilean peso-denominated monetary unit. The UF rate is set daily in advance, based on the change in the Consumer Price Index of the previous month.	

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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
 	 	   	As of March 31,	 	
					
	Note		2005	  	2004		

 	 	 	ThUS$		ThUS$		
ASSETS	 	 	 	 	 	 	
Current assets	 	 	 	 	 	 	
   Cash	 	 	20,917	 	13,627	 	
   Time deposits	 	 	9,479	 	36,184	 	
   Marketable securities	4	 	128,021	 	35,229	 	
   Accounts receivable, net	5	 	143,284	 	130,395	 	
   Other accounts receivable, net	5	 	9,688	 	11,562	 	
   Accounts receivable from related companies	6	 	47,451	 	34,396	 	
   Inventories, net	7	 	281,704	 	251,826	 	
   Recoverable taxes	 	 	19,310	 	13,566	 	
   Prepaid expenses	 	 	6,175	 	5,803	 	
   Other current assets	 	 	9,681	 	29,546	 	
 	 	 		 		 	
         Total current assets	 	 	675,710	 	562,134	 	
 	 	 		 		 	
Property, plant and equipment, net	8	 	699,926	 	686,944	 	
 	 	 		 		 	
Other Assets	 	 	 	 	 	 	
   Investments in related companies	9	 	16,561	 	57,506	 	
   Goodwill, net	10	 	17,048	 	12,882	 	
   Negative goodwill, net	10	 	(220	)	(423	)	
   Intangible assets, net	 	 	4,428	 	4,648	 	
   Long-term accounts receivable, net	5	 	209	 	7,066	 	
   Long-term accounts receivable from related companies	6	 	—	 	340	 	
   Other long-term assets	11	 	49,816	 	54,832	 	
 	 	 		 		 	
      Total Other Assets	 	 	87,842	 	136,851	 	
 	 	 		 		 	
         Total assets	 	 	1,463,478	 	1,385,929	 	
 	 	 		 		 	
The accompanying notes form an integral part of these consolidated financial statements. 
2 

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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
 	 	 	As of March 31,	 	
					
	Note		2005	 	2004		
							
 	 	 	ThUS$		ThUS$	 	
LIABILITIES AND SHAREHOLDERS' EQUITY	 	 	 	 	 	 	
Current liabilities	 	 	 	 	 	 	
      Short-term bank debt	12	 	—	 	65,095	 	
      Current portion of long-term debt	12	 	981	 	1,041	 	
      Dividends payable	 	 	173	 	170	 	
      Accounts payable	 	 	58,057	 	52,457	 	
      Other accounts payable	 	 	2,195	 	1,395	 	
      Notes and accounts payable to related companies	6	 	3,243	 	13,569	 	
      Accrued liabilities	13	 	15,260	 	13,223	 	
      Withholdings	 	 	6,640	 	3,316	 	
      Income taxes	 	 	18,542	 	1,220	 	
      Deferred income taxes	14	 	4,353	 	6,423	 	
      Deferred income	 	 	987	 	1,576	 	
      Other current liabilities	 	 	615	 	283	 	
 	 	 		 		 	
            Total current liabilities	 	 	111,046	 	159,768	 	
 	 	 		 		 	
Long-term liabilities	 	 	 	 	 	 	
      Long-term bank debt	12	 	300,000	 	260,000	 	
      Other accounts payable	 	 	1,008	 	2,007	 	
      Deferred income taxes	14	 	35,922	 	26,367	 	
      Staff severance indemnities	15	 	11,780	 	9,914	 	
 	 	 		 		 	
            Total long-term liabilities	 	 	348,710	 	298,288	 	
 	 	 		 		 	
      Minority interest	16	 	33,034	 	28,524	 	
 	 	 		 		 	
Shareholders' equity	 	 	 	 	 	 	
      Paid-in capital	17	 	477,386	 	477,386	 	
      Other reserves	17	 	148,196	 	137,663	 	
      Retained earnings	17	 	345,106	 	284,300	 	
 	 	 		 		 	
            Total shareholders' equity	 	 	970,688	 	899,349	 	
 	 	 		 		 	
               Total liabilities and shareholders' equity	 	 	1,463,478	 	1,385,929	 	
 	 	 		 		 	
The accompanying notes form an integral part of these consolidated financial statements. 
3 

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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
 	 	 	For the years ended	 	
			March 31,		
					
	Note		2005	 	2004		
							
 	 	 	ThUS$ 		ThUS$	 	
Operating results	 	 	 	 	 	 	
   Sales	 	 	206,502	 	168,419	 	
   Cost of sales	 	 	(154,364	)	(131,554	)	
 	 	 		 		 	
      Gross margin	 	 	52,138	 	36,865	 	
   Selling and administrative expenses	 	 	(14,241	)	(12,962	)	
 	 	 		 		 	
      Operating income	 	 	37,897	 	23,903	 	
 	 	 		 		 	
Non-operating results	 	 	 	 	 	 	
   Non-operating income	19	 	3,978	 	4,142	 	
   Non-operating expenses	19	 	(9,295	)	(8,930	)	
 	 	 		 		 	
      Non-operating loss	 	 	(5,317	)	(4,788	)	
 	 	 		 		 	
   Income before income taxes	 	 	32,580	 	19,115	 	
   Income tax expense	14	 	(7,185	)	(4,401	)	
 	 	 		 		 	
      Income before minority interest	 	 	25,395	 	14,714	 	
   Minority interest	16	 	(704	)	(768	)	
 	 	 		 		 	
      Net income before negative goodwill	 	 	24,691	 	13,946	 	
   Amortization of negative goodwill	10	 	60	 	51	 	
 	 	 		 		 	
      Net income for the year	 	 	24,751	 	13,997	 	
 	 	 		 		 	
The accompanying notes form an integral part of these consolidated financial statements. 
4 

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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
 	 	 	For the years ended March 31  	 	
 	 	 				 	
 	 	 	2005	 	2004	 	
 	 	 		 		 	
 	 	 	ThUS$ 	 	ThUS$	 	
Cash flows from operating activities	 	 	 	 	 	 	
Net income for the year
 	 	 	24,751	 	13,997	 	
 	 	 	 	 	 	 	
Charges (credits) to income not representing cash flows	 	 	 	 	 	 	
Depreciation expense	 	 	16,482	 	14,810	 	
Amortization of intangible assets	 	 	122	 	66	 	
Write-offs and accruals	 	 	9,201	 	10,902	 	
Gain on equity investments in related companies	 	 	(275	)	(2,766	)	
Loss on equity investments in related companies	 	 	128	 	73	 	
Amortization of goodwill	 	 	349	 	337	 	
Amortization of negative goodwill	 	 	(60	)	(51	)	
(Profit) loss on sales of assets	 	 	(6	)	(26	)	
Other credits to income not representing cash flows	 	 	(2,396	)	(318	)	
Other charges to income not representing cash flows	 	 	19,839	 	12,901	 	
Foreign exchange difference, net	 	 	(780	)	566	 	
Net changes in operating assets and liabilities:	 	 	 	 	 	 	
(Increase) decrease in trade accounts receivable	 	 	(6,309	)	5,692	 	
Increase in inventories	 	 	(13,356	)	(11,606	)	
Decrease in other assets	 	 	(9,641	)	(9,948	)	
(Decrease) increase in accounts payable	 	 	(1,732	)	4,143	 	
Increase (decrease) in interest payable	 	 	(3,585	)	(3,472	)	
Decrease in net income taxes payable	 	 	(1,321	)	795	 	
(Decrease) increase in other accounts payable	 	 	(5,429	)	(1,373	)	
Decrease in VAT and taxes payable	 	 	(2,011	)	2,928	 	
Minority interest	 	 	(704	)	(768	)	
 	 	 		 		 	
Net cash provided from operating activities	 	 	23,267	 	36,882	 	
 	 	 		 		 	
Cash flows from financing activities	 	 	 	 	 	 	
Proceeds from short term bank financing	 	 	100,000	 	22,056	 	
Payment of dividends	 	 	(128	)	(29	)	
Repayment of bank financing	 	 	(6,000	)	(12,626	)	
 	 	 		 		 	
Net cash used in financing activities	 	 	93,872	 	9,401	 	
 	 	 		 		 	
Cash flows from investing activities	 	 	 	 	 	 	
Sales of property, plant and equipment	 	 	92	 	597	 	
Sales of permanent investments	 	 	13	 	—	 	
Sales of investments	 	 	—	 	203	 	
Other investing income	22	 	768	 	104	 	
Additions to property, plant and equipment	 	 	(24,713	)	(7,973	)	
Capitalized interest	 	 	(768	)	(411	)	
Purchase of permanent investments	 	 	(411	)	(475	)	
Other disbursements	 	 	(666	)	—	 	
 	 	 		 		 	
Net cash used in investing activities	 	 	(25,685	)	(7,955	)	
 	 	 		 		 	
Effect of inflation on cash and cash equivalents	 	 	209	 	(1,911	)	
 	 	 		 		 	
Net change in cash and cash equivalents	 	 	91,663	 	36,417	 	
Beginning balance of cash and cash equivalents	 	 	66,753	 	69,273	 	
 	 	 		 		 	
Ending balance of cash and cash equivalents	 	 	158,416	 	105,690	 	
 	 	 		 		 	
The accompanying notes form an integral part of these consolidated financial statements. 
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
Note 1 - Company Background 
Sociedad Química y Minera de Chile S.A. (the “Company”) was registered with the Chilean Superintendency of Securities and Insurance (“SVS”) on March 18, 1983. 
Note 2 - Summary of Significant Accounting Policies 
 	 	
a)	Basis for the preparation of the consolidated financial statements 	
The accompanying consolidated financial statements have been prepared in U.S. dollars in accordance with accounting principles generally accepted in Chile (“Chilean GAAP”) and the regulations of the SVS. Certain accounting practices applied by the Company that conform with Chilean GAAP may not conform with generally accepted accounting principles in the United States (“US GAAP”). For the convenience of the reader, the consolidated financial statements and their accompanying notes have been translated from Spanish into English. 
The consolidated financial statements include the accounts of Sociedad Química y Minera de Chile S.A. (the “Parent Company”) and subsidiaries (companies in which the Parent Company holds a controlling participation, generally equal to direct or indirect ownership of more than 50%). The Parent Company and its subsidiaries are referred to as the “Company”. 
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. 
In accordance with SVS Circular No. 1,697 and Technical Bulletins Nos. 64 and 72 of the Chilean Association of Accountants, the consolidated financial statements include the following subsidiaries: 
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
Note 2 - Summary of Significant Accounting Policies (continued) 	
 	 	 	
a)	Basis for the preparation of the consolidated financial statements (continued)	
 	 	 	
 	Direct or indirect ownership  	 	
 				 	
 	2005	 	2004	 	
 		 		 	
Foreign subsidiaries:	%	 	%	 	
Nitrate Corp. of Chile Limited (United Kingdom)	100.00	 	100.00	 	
Soquimich SRL – Argentina	100.00	 	100.00	 	
Nitratos Naturais do Chile Ltda. (Brazil)	100.00	 	100.00	 	
SQM Europe NV (Belgium)	100.00	 	100.00	 	
SQM North America Corp. (USA)	100.00	 	100.00	 	
North American Trading Company (USA)	100.00	 	100.00	 	
SQM Peru S.A.	100.00	 	100.00	 	
SQM Corporation NV (Dutch Antilles)	100.00	 	100.00	 	
S.Q.I. Corporation NV (Dutch Antilles)	100.00	 	100.00	 	
Soquimich European Holding BV (Holland)	100.00	 	100.00	 	
PTM - SQM Ibérica S.A. (Spain)	100.00	 	100.00	 	
SQMC Holding Corporation LLP (USA)	100.00	 	100.00	 	
SQM Ecuador S.A.	100.00	 	100.00	 	
Cape Fear Bulk LLC (USA)	51.00	 	51.00	 	
SQM Investment Corporation NV (Dutch Antilles)	100.00	 	100.00	 	
SQM Brasil Ltda.	100.00	 	100.00	 	
Royal Seed Trading Corporation AVV (Aruba)	100.00	 	100.00	 	
SQM Japon Co. Ltda.	100.00	 	100.00	 	
SQM Oceanía PTY Limited (Australia)	100.00	 	100.00	 	
SQM France S.A.	100.00	 	100.00	 	
RS Agro-Chemical Trading AVV (Aruba)	100.00	 	100.00	 	
SQM Comercial de México S.A. de C.V.	100.00	 	100.00	 	
SQM Indonesia	80.00	 	80.00	 	
SQM Virginia LLC (USA)	100.00	 	100.00	 	
Agricolima S.A. de C.V. (Mexico)	100.00	 	100.00	 	
SQM Venezuela S.A.	100.00	 	100.00	 	
SQM Italia SRL (Italy)	95.00	 	95.00	 	
Comercial Caiman Internacional S.A. (Cayman Islands)	100.00	 	100.00	 	
Mineag SQM Africa Limited (South Africa)	100.00	 	100.00	 	
Fertilizantes Olmeca y SQM S.A. de C.V. (Mexico)	100.00	 	100.00	 	
Administración y Servicios Santiago S.A. de C.V. (Mexico)	100.00	 	100.00	 	
SQM Lithium Specialties LLC (USA)	100.00	 	100.00	 	
SQM Nitratos México S.A. de C.V.	51.00	 	51.00	 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 )
 
Note 2 - Summary of Significant Accounting Policies (continued) 
a) 	Basis for the preparation of the consolidated financial statements (continued) 	
 	 	
	Direct or indirect ownership	
		
	2005	 	2004	
				
	%		%	
Domestic subsidiaries:	 	 	 	
Servicios Integrales de Tránsitos y Transferencias S.A.	100.00	 	100.00	
Soquimich Comercial S.A.	60.64	 	60.64	
Isapre Norte Grande Ltda.	100.00	 	100.00	
Almacenes y Depósitos Ltda.	100.00	 	100.00	
Ajay SQM Chile S.A.	51.00	 	51.00	
SQM Nitratos S.A.	99.99	 	99.99	
Proinsa Ltda.	60.58	 	60.58	
SQM Potasio S.A.	100.00	 	100.00	
SQMC International Limitada	60.64	 	60.64	
SQM Salar S.A.	100.00	 	100.00	
Yumbes SCM	100.00	 	—	
Comercial Hydro S.A.	60.64	 	60.64	
All significant inter-company balances, transactions and unrealized gains and losses arising from transactions between these companies have been eliminated in consolidation. 
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
 
Note 2 - Summary of Significant Accounting Policies (continued) 
b)	Period 	
 	 	
 	These consolidated financial statements have been prepared as of March 31, 2005 and 2004 and for the years then ended. 	
 	  	
c)	Reporting currency and monetary correction 	
 	 	
 	The financial statements of the Company are prepared in U.S. dollars. As a significant portion of the Company’s operations are transacted in U.S. dollars, the U.S. dollar is considered the currency of the primary economic environment in which the Company operates. 	
 	 	
 	The Parent Company and those subsidiaries which maintain their accounting records in U.S. dollars are not required, or permitted, to restate the historical dollar amounts for the effects of inflation. 	
 	 	
 	The financial statements of domestic subsidiaries, which maintain their accounting records in Chilean pesos have been restated to reflect the effects of variations in the purchasing power of Chilean pesos during the year. For this purpose, and in accordance with Chilean regulations, non-monetary assets and liabilities, equity and income statement accounts have been restated in terms of year-end constant pesos based on the change in the consumer price index during the year (-0.8% and -0.5% in 2005 and 2004, respectively). The resulting net charge or credit to income arises as a result of the gain or loss in purchasing power from the holding of non-U.S. dollar denominated monetary assets and liabilities exposed to the effects of inflation. 	
 	 	
 	Prior period financial statements presented for comparative purposes have not been restated to reflect the change in the purchasing power of the Chilean pesos during the most recent year-end. In accordance with Chilean GAAP, amounts expressed in U.S. dollars, including amounts included in the consolidated financial statements as determined in prior years from the translation of financial statements of those Chilean subsidiaries which maintain their accounting records in Chilean pesos, are not adjusted for price-level changes. 	
 	 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
 
Note 2 - Summary of Significant Accounting Policies (continued) 
d) 	Foreign currency	
 	 	 	 	 	
 	i)	Foreign currency transactions 	
 	 	 	 	 	
 	 	Monetary assets and liabilities denominated in Chilean pesos and other currencies have been translated to U.S. dollars at the observed exchange rates determined by the Central Bank of Chile in effect at each year-end of Ch$585.93 per US$1 at March 31, 2005 and Ch$616.41 per US$1 at March 31, 2004. 	
 	 	 	 	 	
 	ii)	Translation of non-U.S. dollar financial statements 	
 	 	 	 	 	
 	 	In accordance with Chilean GAAP, the financial statements of foreign and domestic subsidiaries that do not maintain their accounting records in U.S. dollars are translated from the respective local currencies to U.S. dollars in accordance with Technical Bulletin No. 64 and 72 of the Chilean Association of Accountants (“BT 64-BT 72”) as follows:  	
 	 	 	 	 	
 	 	a)	For those subsidiaries and affiliates located in Chile which keep their accounting records in price-level adjusted Chilean pesos: 	
 	 	 	 	 	
 	 	 	–  	Balance sheet accounts are translated to U.S. dollars at the year-end exchange rate without eliminating the effects of price-level restatement.	
 	 	 	–	Income statement accounts are translated to U.S. dollars at the average exchange rate each month. The monetary correction account on the income statement, which is generated by the inclusion of price-level restatement on the non-monetary assets and liabilities and shareholders’ equity, is translated to U.S. dollars at the average exchange rate for each month. 	
 	 	 	–	Translation gains and losses, as well as the price-level restatement to the balance sheet mentioned above, are included as an adjustment in shareholders’ equity, in conformity with Circular No. 1,697 of the SVS. 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
Note 2 - Summary of Significant Accounting Policies (continued)
 	 	b)	The financial statements of those foreign subsidiaries that keep their accounting records in currencies other than the U.S. dollar have been translated at historical exchange rates as follows:	
 	 	 	 	 	
 	 	 	—	Monetary assets and liabilities are translated at year-end exchange rates between the US dollar and the local currency. 	
 	 	 	 	 	
 	 	 	—	All non-monetary assets and liabilities and shareholders’ equity are translated at historical exchange rates between the US dollar and the local currency. 	
 	 	 	 	 	
 	 	 	—	Income and expense accounts are translated at average exchange rates between the US dollar and the local currency. 	
 	 	 	 	 	
 	 	 	—	Any exchange differences are included in the results of operations for the period. 	
d)	Foreign currency (continued)	
Foreign exchange differences for the period ended March 31, 2005 and 2004 generated net earnings (loss) of ThUS$ 780 and ThUS$ (566), respectively, which have been charged to the consolidated statements of income in each respective period.
The monetary assets and liabilities of foreign subsidiaries were translated into US dollars at the exchange rates per US dollar prevailing at March 31, as follows:
 	2005	 	2004	 	

Brazilian Real	2.67	 	2.92	 	
New Peruvian Sol	3.26	 	3.46	 	
Argentine Peso	2.92	 	2.88	 	
Japanese Yen	107.39	 	105.69	 	
Euro	0.77	 	0.82	 	
Mexican Peso	11.23	 	11.21	 	
Indonesian Rupee	9,289.97	 	8,465.00	 	
Australian Dollar	1.29	 	1.31	 	
Pound Sterling	0.52	 	0.58	 	
South African Rand	5.79	 	6.66	 	
The Company uses the “observed exchange rate”, which is the rate determined daily by the Chilean Central Bank based on the average exchange rates at which bankers conduct authorized transactions. 
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
Note 2 - Summary of Significant Accounting Policies (continued) 
e)	Cash and cash equivalents	
The Company considers all highly liquid investments with a remaining maturity of less than 90 days as of the closing date of the financial statements to be cash equivalents. 
f)	Time Deposits	
Time deposits are recorded at cost plus accrued interest.
g)	Marketable securities 	
Marketable securities are recorded at the lower of cost plus accrued interest or market value. 
h)	Allowance for doubtful accounts 	
The Company records an allowance for doubtful accounts based on estimated probable losses. 
i)	Inventories and materials 	
Inventories of finished products and work in process are valued at average production cost. Raw materials and products acquired from third parties are stated at average cost and materials-in-transit are valued at cost. All such values do not exceed net realizable values.
Inventories of non-critical spare parts and supplies are classified as other current assets, except for those items which the Company estimates to have a turnover period of one year or more, which are classified as other long-term assets.
j)	Income taxes and deferred income taxes 	
Prior to 2000, income taxes were charged to results in the same period in which the income and expenses were recorded and were calculated in accordance with the enacted tax laws in Chile and the other jurisdictions in which the Company operated. 
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
Note 2 - Summary of Significant Accounting Policies (continued)
j)	Income and deferred taxes (continued)	
Under Chilean law, the Parent Company and its subsidiaries are required to file separate tax declarations. 
Beginning January 1, 2000, the Company records deferred income taxes in accordance with Technical Bulletin Nos. 60, 69, 71 and 73 of the Chilean Association of Accountants, and with Circular No. 1466 issued on January 27, 2000 by the SVS, recognizing the deferred tax effects of temporary differences between the financial and tax values of assets and liabilities, using the liability method. The effect of the temporary differences at March 31, 1999 were recorded in complementary asset and liability accounts, which are recognized in the statement of operations over the estimated period in which they reverse.
k)	Property, plant and equipment 	
Property, plant, equipment and property rights are recorded at acquisition cost, considering in general an average residual value of 5%, except for certain assets that were restated in accordance with a technical appraisal in 1989. Depreciation expense has been calculated using the straight-line method based on the estimated useful lives of the assets and is charged directly to expenses. 
Property, plant and equipment acquired through financial lease agreements are accounted for at the present value of the minimum lease payments plus the purchase option based on the interest rate included in each contract. The Company does not legally own these assets and therefore cannot freely dispose of them.
In conformity with Technical Bulletin No. 31 and 33 of the Chilean Association of Accountants, the Company capitalizes interest cost associated with the financing of new assets during the construction period of such assets. 
Maintenance costs of plant and equipment are charged to expenses as incurred.
The Company obtains property rights and mining concessions from the Chilean state. Other than minor filing fees, the property rights are usually obtained without initial cost, and once obtained, are retained by the Company as long as the annual fees are paid. Such fees, which are paid annually in March, are recorded as prepaid assets to be amortized over the following twelve months. Values attributable to these original mining concessions are recorded in property, plant and. 
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 )
Note 2 - Summary of Significant Accounting Policies (continued) 
l) 	Investments in related companies 	
Investments in related companies over which the Company has significant influence, are included in other assets and are recorded using the equity method of accounting, in accordance with SVS Circulars Nos. 368 and 1,697 and Technical Bulletins Nos. 64 and 72 issued by the Chilean Association of Accountants. Accordingly, the Company’s proportional share in the net income or loss of each investee is recognized in the non-operating income and expense classification in the consolidated statements of income on an accrual basis, after eliminating any unrealized profits from transactions with the related companies. 
The translation adjustment to U.S. dollars of investments in domestic subsidiaries that maintain their accounting records and are controlled in Chilean pesos is recognized in other reserves within shareholders’ equity. Direct and indirect investments in foreign subsidiaries or affiliates are controlled in U.S. dollars. 
Investments in which the Company has less than 20% participation and the capacity to exert significant influence or control over the investment, because SQM forms part of its Board of Directors, have been valued using the equity method. 
m)	Goodwill and negative goodwill	
Goodwill is calculated as the excess of the purchase price of companies acquired over their net book value, whereas negative goodwill occurs when the net book value exceeds the purchase price of companies acquired. Goodwill and negative goodwill resulting from equity method investments are maintained in the same currency in which the investment was made and are amortized based on the estimated period of investment return, generally 20 and 10 years for goodwill and negative goodwill, respectively. 
n)	Intangible assets	
Intangible assets are stated at cost plus acquisition expenses and are amortized over a period of up to a maximum of 40 years, in accordance with Technical Bulletin No. 55 of the Chilean Association of Accountants. 
o)	Mining development cost 	
Mining development costs are recorded in other long-term assets and are amortized utilizing the unit of production basis. 
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 )
Note 2 - Summary of Significant Accounting Policies (continued)
p)	Accrued employee severance	
The Company calculates the liability for staff severance indemnities based on the present value of the accrued benefits for the actual years of service worked assuming an average employee tenure of 24 years and a real annual discount rate of 9%. 
q)	Vacations	
The cost of employee vacations is recognized in the financial statements on an accrual basis.
r) 	Saleback operations	
These operations are registered in Other Current Assets at the amount of the purchase. Starting at the purchase date, the respective interest is recorded in accordance with SVS Circular 768.
s)	Dividends	
Dividends are generally declared in U.S. dollars but are paid in Chilean pesos.
t)	Derivative Contracts 	
The Company maintains derivative contracts to hedge against movements in foreign currencies, which are recorded in conformity with Technical Bulletin No. 57 of the Chilean Association of Accountants. Such contracts are recorded at fair value with net losses recognized on the accrual basis and gains recognized when realized.
u) 	Reclassifications 	
For comparison purposes, certain reclassifications have been made to the 2003 financial statements.
v)	Revenue recognition 	
Revenue is recognized on the date goods are physically delivered or when they are considered delivered according to the terms of the contract.
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 )
w)	Computer software 	
Computational systems developed internally using the Company’s personnel and materials are charged to income during the year in which the expenses are incurred. In accordance with Circular No. 981 dated December 28, 1990 of the SVS, computer systems acquired by the Company are recorded at cost.
x)	Research and development expenses 	
Research and development cost are charged to the income statement in the period in which they are incurred. Property, plant and equipment that are acquired for use in research and development activities and determined to provide additional benefits to the Company are recorded in property, plant and equipment.
Note 3 - Changes in Accounting Principles 
a)	Changes in Accounting Principles 	
Up to December 31, 2004, the financial statements of the subsidiary Fertilizantes Naturales S.A. were considered in consolidation given that the Company maintained the control of this subsidiary (due to its right to manage this subsidiary's financial and operating policies). Beginning on January 1, 2005, the Company no longer controls this subsidiary and therefore the aforementioned subsidiary has been excluded from consolidation in accordance with letters a) to d) of No.6 in Attachment 1 to Technical Bulletin No. 72 issued by the Chilean Association of Accountants.
There were no other changes in the accounting principles used by the Company during 2005 and 2004. 
b)	Reformulation of 2004 Financial Statements 	
For comparison purposes, the financial statements as of March 31, 2004 have been reformulated excluding and incorporate the following assets and liabilities of Fertilizantes Naturales S.A. and
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 )
SQM Lithium Specialties LLP, respectively. Consequently, assets and liabilities excluded and included are detailed as follows: 
  	Fertilizantes	  	SQM Lithium	  	
	Naturales S.A.		Specialties LLP		
 		 		 	
 	ThUS$	 	ThUS$	 	
Current Asset	(9,907	)	386	 	
Property, Plant and Equipment	(104	)	26,421	 	
Other Assets	(71	)	714	 	
Current Liability	(9,501	)	1,681	 	
Note 4 - Marketable Securities 
As of March 31 marketable securities are detailed as follows: 
 	2005	 	2004	 	
 		 		 	
 	ThUS$	 	ThUS$	 	
Mutual funds	128,021	 	35,229	 	
 		 		 	
Total	128,021	 	35,229	 	
 		 		 	
Mutual funds consist of investments with Citibank in highly liquid funds invested in fixed-rate debt in the United States. 
Note 5 - Short-term and long-term Accounts Receivable 
a)  	Short term and long-term accounts receivable and other accounts receivable as of March 31 are detailed as follows: 	
 	 	
    	 	 	 	    	Between 90 days	    	Total	    	
	Up to 90 days		and 1 year		Short-term (net)		
													
	2005	 	2004		2005	 	2004		2005	 	2004		
		 				 				 			
 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	
Short-term	 	 	 	 	 	 	 	 	 	 	 	 	
Trade accounts receivable	98,677	 	101,200	 	20,451	 	14,485	 	119,128	 	115,685	 	
Allowance for doubtful accounts	 	 	 	 	 	 	 	 	(8,567	)	(6,923	)	
Notes receivable	33,944	 	23,349	 	2,379	 	1,138	 	36,323	 	24,487	 	
Allowance for doubtful accounts	 	 	 	 	 	 	 	 	(3,600	)	(2,854	)	

Accounts receivable, net	 	 	 	 	 	 	 	 	143,284	 	130,395	 	
 	 	 	 	 	 	 	 	 		 		 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 )
Other accounts receivable	7,186	 	10,320	 	3,118	 	2,148	 	10,304	 	12,468	 	
Allowance for doubtful accounts	 	 	 	 	 	 	 	 	(616	)	(906	)	
 	 	 	 	 	 	 	 	 		 		 	
Other accounts receivable, net	 	 	 	 	 	 	 	 	9,688	 	11,562	 	
 	 	 	 	 	 	 	 	 		 		 	
Long-term receivables	 	 	 	 	 	 	 	 	209	 	7,066	 	
 	 	 	 	 	 	 	 	 		 		 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
Note 5 - Short-term and Long-term Accounts Receivable (continued)
Consolidated Short-term and Long-term Receivables – by Geographic Location
 	 	 	 	 	Europe, Africa and	 	Asia and	 	USA, Mexico	 	Latin America	 	 	 	 	 	
 	Chile  	 	the Middle East	 	Oceania	 	and Canada	 	and the Caribbean	 	Total  	 	
 				 				 				 				 				 				 	
 	2005	 	2004	 	2005	 	2004	 	2005	 	2004	 	2005	 	2004	 	2005	 	2004	 	2005	 	2004	 	
 		 		 		 		 		 		 		 		 		 		 		 		 	
 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	
Net short-term trade accounts receivable	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance	20,303	 	27,186	 	31,903	 	21,410	 	332	 	3,380	 	36,827	 	34,095	 	21,196	 	22,691	 	110,561	 	108,762	 	
% of total	18.36	%	25.00	%	28.86	%	19.69	%	0.30	%	3.10	%	33.31	%	31.35	%	19.17	%	20.86	%	100.00	%	100.00	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net short-term notes receivable	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance	25,181	 	17,729	 	3,961	 	1,170	 	24	 	46	 	183	 	526	 	3,374	 	2,162	 	32,723	 	21,633	 	
% of total	76.95	%	81.95	%	12.10	%	5.41	%	0.07	%	0.21	%	0.57	%	2.44	%	10.31	%	9.99	%	100.00	%	100.00	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net short-term other accounts receivable	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance	4,046	 	4,252	 	1,034	 	623	 	1	 	19	 	4,494	 	6,373	 	113	 	295	 	9,688	 	11,562	 	
% of total	41.76	%	36.78	%	10.67	%	5.39	%	0.01	%	0.16	%	46.39	%	55.12	%	1.17	%	2.55	%	100.00	%	100.00	%	

Subtotal short-term accounts receivable, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance	49,530	 	49,167	 	36,898	 	23,203	 	357	 	3,445	 	41,504	 	40,994	 	24,683	 	25,148	 	152,972	 	141,957	 	
% of total	32.38	%	34.64	%	24.12	%	16.35	%	0.23	%	2.43	%	27.13	%	28.86	%	16.14	%	17.72	%	100.00	%	100.00	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Long-term accounts receivable, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance	190	 	7,047	 	4	 	4	 	—	 	—	 	—	 	—	 	15	 	15	 	209	 	7,066	 	
% of total	90.91	%	99.73	%	1.91	%	0.06	%	—	 	—	 	—	 	—	 	7.18	%	0.21	%	100.00	%	100.00	%	

Total short and long-term accounts receivable, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance	49,720	 	56,214	 	36,902	 	23,207	 	357	 	3,445	 	41,504	 	40,994	 	24,698	 	25,163	 	153,181	 	149,023	 	
% of total	32.46	%	37.72	%	24.09	%	15.57	%	0.23	%	2.31	%	27.10	%	27.51	%	16.12	%	16.89	%	100.00	%	100.00	%	

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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
Note 6 - Balances and Transactions with Related Parties 
Accounts receivable from and payable to related companies are stated in US dollars and accrue no interest. 
Transactions are made under terms and conditions which are similar to those offered to unrelated third parties. 
a)     Amounts included in balances with related parties as of March 31, 2005 and 2004 are as follows: 
 	Short-term  	 	Long-term  	 	
 		 		 	
Accounts receivable	2005	 	2004	 	2005	 	2004 	 	
		 		 		 		 	
 	ThUS$ 	 	ThUS$ 	 	ThUS$ 	 	ThUS$ 	 	
 	 	 	 	 	 	 	 	 	
Ajay Europe S.A.R.L.	2,302	 	2,843	 	—	 	—	 	
Nutrisi Holding N.V.	1,573	 	1,691	 	—	 	—	 	
Generale de Nutrition Vegetale S.A.	132	 	179	 	—	 	—	 	
Abu Dhabi Fertilizer Ind. WLL	6,449	 	4,060	 	—	 	—	 	
NU3 N.V.	403	 	36	 	—	 	—	 	
Doktor Tarsa –SQM Turkey	7,342	 	3,539	 	—	 	—	 	
Yara North America	179	 	358	 	—	 	—	 	
Yara Iberian S.A.	1,652	 	1,196	 	—	 	—	 	
Empresas Melón S.A.	—	 	—	 	—	 	340	 	
Sales de Magnesio S.A.	44	 	74	 	—	 	—	 	
Ajay North America LLC	1,159	 	258	 	—	 	—	 	
Yara International Asia Trade Pte Ltd	2,282	 	1,087	 	—	 	—	 	
Yara France S.A.	32	 	2,538	 	—	 	—	 	
Yara Poland SP	406	 	295	 	—	 	—	 	
Yara Benelux B.V	1,522	 	1,731	 	—	 	—	 	
Yara Hellas S.A.	233	 	198	 	—	 	—	 	
Yara Australia Ltd.	—	 	773	 	—	 	—	 	
Yara UK Ltd.	452	 	327	 	—	 	—	 	
Yara GMBH & CO KG	143	 	282	 	—	 	—	 	
Yara AB	138	 	186	 	—	 	—	 	
Yara Colombia Ltda.	1,153	 	2,060	 	—	 	—	 	
Yara International ASA	151	 	—	 	—	 	—	 	
Yara Agri Norge	7	 	—	 	—	 	—	 	
Yara Agri CZECH Republic	—	 	6	 	—	 	—	 	
Yara International Australia PTY	391	 	—	 	—	 	—	 	
Yara France BU Africa	1,296	 	—	 	—	 	—	 	
NU3 B.V.	523	 	984	 	—	 	—	 	
Yara Argentina S.A.	90	 	36	 	—	 	—	 	
Adubo Trevo S.A.	—	 	75	 	—	 	—	 	
PCS Sales Inc.	10	 	—	 	—	 	—	 	
Yara France BU Latin America	2,294	 	—	 	—	 	—	 	
Yara International Wholesale Spec. Sudafrica	3,557	 	—	 	—	 	—	 	
Yara East Africa Limited	244	 	—	 	—	 	—	 	
Fertilizantes Naturales S.A.	5,584	 	4,537	 	—	 	—	 	
Impronta SRL	5,708	 	5,047	 	—	 	—	 	
 		 		 		 		 	
      Total	47,451	 	34,396	 	—	 	340	 	
 		 		 		 		 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
Note 6 - Balances and Transactions with Related Parties (continued) 
a)     Amounts included in balances with related parties as of March 31, 2005 and 2004, continued: 
 	Short-term  	 	
 		 	
Accounts payable	2005	 	2004	 	
 		 		 	
 	ThUS$	 	ThUS$	 	
NU3 N.V.	551	 	—	 	
Rotem Amfert Negev Limited	17	 	—	 	
Yara Fertilizantes Ltda.	960	 	1,089	 	
Yara International ASA	158	 	—	 	
Yara North America	114	 	—	 	
Yara France	899	 	—	 	
Yara France BU Latin America	—	 	5,452	 	
Yara France S.A.	532	 	—	 	
Fertilizantes Naturales S.A.	12	 	—	 	
PCS Yumbes SCM	—	 	7,028	 	
 		 		 	
      Total	3,243	 	13,569	 	
 		 		 	
There were no outstanding long-term accounts payable with related parties as of March 31, 2005 and 2004 
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
Note 6 - Balances and Transactions with Related Parties (continued) 
b)     During 2005 and 2004, principal transactions with related parties were as follows: 
Company	Relationship	 	Type of transaction	Amount of Transaction	 	Impact on income (charge)  credit	 	
		 		 		 		 	
	 	 	 	 	2005	 	2004	 	2005	 	2004	 	
 	 	 	 	 		 		 		 		 	
	 	 	 	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	
NU3 N.V.	  Indirect	 	Sales of products	 	1,598	 	1,575	 	155	 	478	 	
Doktor Tarsa 	Indirect	 	Sales of products	 	4,589	 	1,299	 	389	 	301	 	
Abu Dhabi Fertilizer WLL 	Indirect	 	Sales of products	 	—	 	244	 	—	 	14	 	
Ajay Europe S.A.R.L.	  Indirect	 	Sales of products	 	2,947	 	835	 	289	 	363	 	
NU3 B.V. 	Indirect	 	Sales of products	 	1,352	 	1,290	 	(4	)	606	 	
Impronta SRL 	Indirect	 	Sales of products	 	414	 	—	 	55	 	—	 	
FENASA	  Indirect	 	Sales of products	 	4,252	 	—	 	535	 	—	 	
Ajay North America LLC 	Indirect	 	Sales of products	 	3,115	 	2,371	 	296	 	1,038	 	
Adubo Trevo S.A. 	Shareholder	 	Sales of products	 	921	 	2,290	 	179	 	660	 	
PCS Yumbes SCM 	Shareholder	 	Sales of products	 	—	 	3,427	 	—	 	2,057	 	
	 	 	Purchases of products	 	—	 	9,383	 	—	 	—	 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
Note 6 - Balances and Transactions with Related Parties (continued) 
Yara France BU America Latina 	Shareholder	 	Sales of products	 	—	 	1,015	 	—	 	45	 	
Yara UK Ltd. 	Shareholder	 	Sales of products	 	457	 	323	 	15	 	104	 	
Yara Int. Asia Trade PTE Ltd. 	Shareholder	 	Sales of products	 	2,269	 	1,804	 	269	 	422	 	
Yara France S.A. 	Shareholder	 	Sales of products	 	44	 	2,412	 	5	 	552	 	
Yara Benelux B.V. 	Shareholder	 	Sales of products	 	2,251	 	2,314	 	295	 	548	 	
Yara AB Sweden 	Shareholder	 	Sales of products	 	303	 	270	 	3	 	87	 	
Yara Australia Ltd. 	Shareholder	 	Sales of products	 	725	 	323	 	22	 	82	 	
Yara Iberian S.A. 	Shareholder	 	Sales of products	 	1,479	 	958	 	170	 	182	 	
Yara Colombia Ltda.	Shareholder	 	Sales of products	 	1,399	 	1,095	 	196	 	222	 	
Yara Planta Nutri Poland 	Shareholder	 	Sales of products	 	446	 	307	 	4	 	80	 	
Yara GMBH & Co Kg 	Shareholder	 	Sales of products	 	364	 	371	 	17	 	100	 	
Yara France 	Shareholder	 	Sales of products	 	1,993	 	—	 	206	 	—	 	
Yara France BU Africa 	Shareholder	 	Sales of products	 	3,882	 	—	 	688	 	—	 	
Yara North America 	Shareholder	 	Sales of products	 	10,291	 	—	 	1,415	 	—	 	
Yara Internacional ASA 	Shareholder	 	Sales of products	 	5,561	 	—	 	452	 	—	 	
Note 7 - Inventories 
Net inventories are summarized as follows: 
 	2005	 	2004	 	
 		 		 	
 	ThUS$ 	 	ThUS$	 	
 	 	 	 	 	
Finished products	158,932	 	139,564	 	
Work in process	109,436	 	101,697	 	
Supplies	13,336	 	10,565	 	
 		 		 	
   Total	281,704	 	251,826	 	
 		 		 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
Note 8 - Property, Plant and Equipment 
Property, plant and equipment are summarized as follows: 
 	2005	 	2004	 	
 		 		 	
 	ThUS$ 	 	ThUS$	 	
Land	 	 	 	 	
Land	20,003	 	20,003	 	
Mining Concessions	44,143	 	42,757	 	
 		 		 	
 	64,146	 	62,760	 	

Buildings and infrastructure	 	 	 	 	
Buildings	163,074	 	161,307	 	
Installations	176,727	 	309,181	 	
Construction-in-progress	58,925	 	27,375	 	
Other	172,354	 	4,478	 	
 		 		 	
 	571,080	 	502,341	 	

Machinery and Equipment	 	 	 	 	
Machinery	417,591	 	408,158	 	
Equipment	98,836	 	106,536	 	
Project-in-progress	20,159	 	12,690	 	
Other	18,526	 	19,349	 	
 		 		 	
 	555,112	 	546,733	 	

Other fixed assets	 	 	 	 	
Tools	8,156	 	7,633	 	
Furniture and office equipment	14,303	 	13,953	 	
Project-in-progress	11,597	 	13,366	 	
Other	9,467	 	7,202	 	
 		 		 	
 	43,523	 	42,154	 	
 		 		 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
Note 8 - Property, Plant and Equipment (continued) 
 	2005	 	2004	 	
 		 		 	
 	ThUS$ 	 	ThUS$	 	
Amounts relating to technical revaluation of fixed assets	 	 	 	 	
Land	8,651	 	8,651	 	
Buildings and infrastructure	40,627	 	40,627	 	
Machinery and equipment	12,091	 	12,091	 	
Other assets	53	 	53	 	
 		 		 	
 	61,422	 	61,422	 	
 		 		 	
   Total property, plant and equipment	1,295,283	 	1,215,410	 	

Less: Accumulated depreciation	 	 	 	 	
Buildings and infrastructure	(237,891	)	(201,574	)	
Machinery and equipment	(303,707	)	(275,903	)	
Other fixed assets	(19,092	)	(17,614	)	
Technical appraisal	(34,667	)	(33,375	)	
 		 		 	
   Total accumulated depreciation	(595,357	)	(528,466	)	
 		 		 	
      Net property, plant and equipment	699,926	 	686,944	 	

 	2005	 	2004	 	
 		 		 	
Depreciation for the year ended March 31:	ThUS$ 	 	ThUS$	 	
 	 	 	 	 	
Buildings and infrastructure	(7,321	)	(6,580	)	
Machinery and equipment	(8,494	)	(7,575	)	
Other fixed assets	(344	)	(323	)	
Technical revaluation	(323	)	(323	)	
 		 		 	
   Total depreciation	(16,482	)	(14,801	)	
 		 		 	
25 

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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
Note 8 - Property, Plant and Equipment (continued)
The Company has capitalized assets obtained through leasing, which are included in other fixed assets and are as follows: 
 	2005	 	2004	 	
 		 		 	
 	ThUS$ 	 	ThUS$	 	
 	 	 	 	 	
Administrative office buildings	2,086	 	2,086	 	
Accumulated depreciation	(482	)	(428	)	
 		 		 	
   Total assets in leasing	1,604	 	1,658	 	
 		 		 	
The administrative office buildings were acquired for 230 installments of UF 663.75 each and an annual, contractually established interest rate of 8.5%. 
The vehicles were acquired for 36 installments of ThUS$ 98 each. 
Note 9 - Investments in and Receivables from Related Parties
a)	  Information on foreign investments 	
There are no plans for the foreign investments to pay dividends, as it is the Company’s policy to reinvest those earnings. 
The Company has not designated their foreign investments as net investment hedges.
b)	Transactions executed in 2005 	
* Up to December 31, 2004, the financial statements of the subsidiary Fertilizantes Naturales S.A. were considered in consolidation given that the Company maintained the control of this subsidiary (due to its right to manage this subsidiary's financial and operating policies). Beginning on January 1, 2005, the Company no longer controls this subsidiary and therefore the aforementioned subsidiary has been excluded from consolidation in accordance with letters a) to d) of No.6 in Attachment 1 to Technical Bulletin No. 72 issued by the Chilean Association of Accountants. 
* In March 2005, the subsidiary Soquimich European Holding B.V. made a capital increase of ThUS$ 411 in its related company Misr Specialty Fertilizers. In accordance with Technical Bulletin 
26  

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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
No. 72 issued by the Chilean Association of Accountants and the regulations in Circular No. 1697 issued by the Chilean Superintendency of Securities and Insurance, the valuation was performed in consideration of the book value of the equity of Misr Specialty Fertilizers as of December 31, 2004, which does not significantly differ from its fair value determined at that date. 
* On February 28, 2005, SQM Nitratos S.A. made a capital contribution of ThUS$484 to SQM Corporation N.V., with which it obtained participation of 99.9794% in this subsidiary . SQM S.A. did not concur to this contribution thereby reducing its participation to 0.0002% and ownership held by SQI Corporation N.V. by 0.0204%. In accordance with Technical Bulletin No. 72 issued by the Chilean Association of Accountants, this investment was stated using the pooling-of-interests method. 
*On March 10, 2005, the subsidiary PCS Yumbes SCM, changed its name to Yumbes SCM.
*Assets, liabilities and equity of Yumbes SCM included in consolidation at their respective fair values as of March 31, 2005 are detailed as follows:
 	ThUS$	  	
 		 	
Current assets	9,459	 	
Property, plant & equipment	17,453	 	
Other assets	677	 	
Current liabilities	4,277	 	
Long-term liabilities	5	 	
Shareholders' equity	23,307		
The method applied for the acquisition of Yumbes S.C.M. was the acquisition method. 
The Company continues to review valuation at fair value and for this purpose it will use the term permitted to refine the adjustment established in paragraph 66 of Technical Bulletin No. 72 issued by the Chilean Association of Accountants. 
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 )
c)   Transactions executed in 2004 
* In January 2004, the subsidiary Soquimich European Holding B.V. made a capital contribution of ThUS$ 475 on its affiliate Misr Specialty Fertilizers. In accordance with BT 72 of the Chilean Association of Accountants and SVS Circular 1697, the investment in Misr Specialty Fertilizers was valued using the book value of equity as of December 31, 2003, which does not differ significantly from its fair value determined as of the same date. 
* At the meeting of the shareholders of Empresas Melón S.A. held on February 25, 2004, the shareholders agreed its spin-off in 2 companies, Empresas Melón S.A. and Inmobiliaria San Patricio S.A. As a result, SQM S.A. maintained its ownership of 14.05% in Empresas Melón S.A. and a same ownership percentage was assigned to this entity in the new company. 
* In April 2004, the subsidiary Soquimich European Holding B.V. increased capital by ThUS$ 475 in its affiliate Misr Specialty Fertilizers. In accordance with BT 72 of the Chilean Association of Accountants and SVS Circular 1697, the investment in Misr Specialty Fertilizers was valued using the book value of equity as of March 30, 2004, which does not differ significantly from its fair value determined as of the same date. 
* On August 13, 2004, SQM S.A. transferred 653,748,837 shares of Inmobiliaria San Patricio to Blue Circle South American Holding S.A., which was the totality of the shares held by SQM S.A. (14.05% participation). This transfer was performed in accordance with the contract for acquiring shares of Empresas Melón during 1998. The effect on income is presented as part of the gain from the sale of Empresas Melón. 
* On August 18, 2004, 653,748,837 shares of Empresas Melón S.A. were sold in a public auction in the Santiago Stock Market, which was the totality of the shares held by SQM S.A. (14.05% participation), for ThUS$69,337, paid in cash on the same date. As a result of this sale, a gain before taxes of ThUS$8,179. 
* On August 20, 2004, SQM Potasio S.A. decreased its capital in RS Agro Chemical Trading A.V.V. by ThUS$ 25,000, leaving it with 99.98% participation and SQM S.A. with 0.02%. This operation did not produce goodwill or negative goodwill. 
* In October 2004, the subsidiary Soquimich European Holding B.V. increased its capital in Misr Specialty Fertilizers by ThUS$ 475. In accordance with BT 72 of the Chilean Association of Accountants and SVS Circular 1697, the investment in Misr Specialty
28 

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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
Fertilizers was valued using the book value of equity as of September 30, 2004, which does not differ significantly from its fair value determined as of the same date. 
* On November 18, 2004, the subsidiary Soquimich European Holding B.V., contributed ThUS$268 to a joint venture with SQM Eastmed Turkey. 
* On November 25, 2004, SQM Potasio S.A. decreased its capital in RS Agro Chemical Trading A.V.V. by ThUS$ 30,000, leaving it with 1.667% participation and SQM S.A. with 98.333%. This operation did not produce goodwill or negative goodwill. 
* On December 20, 2004, SQM Nitratos S.A. contributed capital of ThUS$1,350 to SQM Brasil Ltda, thus obtaining participation of 98.77% in this subsidiary. SQM S.A. did not contribute to this increase, thereby reducing its participation to 1.23%. In accordance with Technical Bulletin No. 72 issued by the Chilean Association of Accountants, this investment was valued using the pooling of interests method. 
* On December 23, 2004, SQM S.A. and SQM Nitratos S.A. acquired 43,733,165 and 2,000 shares, respectively, of PSC Yumbes S.C.M. for ThUS$ 39,708 (equivalent to 99.9954% and 0.0046% participation, respectively), of which ThUS$34,511 was paid on the date of acquisition and the remaining ThUS$5,197 will be paid on January 27, 2005. 
Investments in related companies made starting January 1, 2004, are valued in accordance with BT 72 of the Chilean Association of Accountants and SVS Circular 1697, which establish that investments in related companies made until December 31, 2003 will continue to be valued using the equity method and investments in related companies realized starting January 1, 2004 are valued as described in Note 3 “Changes in Accounting Principles”. 
In accordance with the aforementioned standards, the Company began valuing the assets and liabilities of the individual financial statements of PCS Yumbes S.C.M. as of December 31, 2004, valuing them at their respective fair values. This valuation method created goodwill of ThUS$ 12,627, produced principally by the valuation of property, plant and equipment carried out using appraisals performed in accordance with SVS Circular 1698. The goodwill will be amortized over period of 20 years. 
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
Therefore, the assets, liabilities and equity incorporated in the consolidation of the respective fair values as of December 31, 2004 are as follows: 
 	 	 	Adjustment to	 	 	 	
 	Book value	 	Fair value	 	Adjusted value	 	
 		 		 		 	
 	ThUS$	 	ThUS$	 	ThUS$	 	
Current assets	10,958	 	—	 	10,958	 	
Property, plant and equipment	25,708	 	(7,954	)	17,754	 	
Other assets	293	 	—	 	293	 	
Current liabilities	1,935	 	—	 	1,935	 	
Equity	35,024	 	(7,954	)	27,070	 	
The purchase method was applied to the purchase of PCS Yumbes S.C.M.
The Company will continue to review the valuation of fair value to comply with timelines established in paragraph 66 of BT 72.
d)	Investments with less than 20% participation 	
Investments in which the Company has less than 20% participation and the capacity to exert significant influence or control over the investment, because SQM forms part of its Board of Directors, have been valued using the equity method. 
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 )

Note 9 - Investments in and Receivables from Related Companies (continued) 
d)	Detail of investments in related companies	

	 	 	 		 		 		 	 	 	 	 	 	 	 	 	 	 	 	 			
	 		 		 		 		 	Ownership interest	 	Equity of companies	 	Book value of investment	 	Net income (loss)	 	Equity participation in 
net income (loss)		
 	 	 	 	 	 	 	 	 	 				 				 				 				 					
Tax
Registration
Number	 	Company	 	Country of
origin	 	 	 	Number of
shares	 	2005	 	2004	 	2005	 	2004	 	2005	 	2004	 	2005	 	2004	 	2005	 	2004		
	 		 		 	 Controlling 
currency	 		 		 		 		 		 		 		 		 		 		 			
	 		 		 		 		 	%	 	%	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$		

0-E	 	Ajay North America LLC	 	USA	 	US$	 	—	 	49.00	 	49.00	 	11,983	 	11,042	 	5,872	 	5,411	 	457	 	(124	)	224	 	(61	)	
0-E	 	Nutrisi Holding N.V.	 	Belgium	 	US$	 	—	 	50.00	 	50.00	 	5,035	 	4,068	 	2,517	 	2,034	 	(256	)	946	 	(128	)	473	 	
0-E	 	Ajay Europe S.A.R.L.	 	France	 	US$	 	36,700	 	50.00	 	50.00	 	4,422	 	4,120	 	2,211	 	2,060	 	—	 	—	 	—	 	—	 	
0-E	 	Misr Specialty Fertilizers	 	Egypt	 	US$	 	—	 	47.00	 	25.00	 	4,862	 	4,604	 	2,309	 	1,151	 	—	 	—	 	—	 	—	 	
0-E	 	Abu Dhabi Fertilizer Industries WLL	 	UAE	 	US$	 	1,961	 	37.00	 	37.00	 	3,417	 	3,264	 	1,265	 	1,208	 	44	 	232	 	16	 	45	 	
0-E	 	Doktor Tarsa	 	Turkey	 	Euros	 	—	 	50.00	 	50.00	 	2,170	 	2,373	 	1,085	 	1,186	 	—	 	577	 	—	 	289	 	
0-E	 	Impronta SRL	 	Italia	 	Euros	 	—	 	50.00	 	50.00	 	967	 	882	 	483	 	441	 	—	 	278	 	—	 	139	 	
0-E	 	SQM Eastmed Turkey	 	Turkey	 	Euros	 	 	 	50.00	 	—	 	510	 	—	 	255	 	—	 	—	 	—	 	—	 	—	 	
77557430-5	 	Sales de Magnesio Ltda.	 	Chile	 	—	 	—	 	50.00	 	50.00	 	573	 	394	 	287	 	197	 	55	 	44	 	28	 	22	 	
0-E	 	Rui Xin Packaging Materials Sanhe Co.Ltd	 	China	 	US$	 	—	 	25.00	 	25.00	 	482	 	482	 	121	 	121	 	—	 	—	 	—	 	—	 	
81767200-0	 	Asoc. Garantizadora Pensiones	 	Chile	 	—	 	—	 	3.00	 	3.00	 	794	 	755	 	26	 	25	 	—	 	—	 	—	 	—	 	
93390000-2	 	Empresas Melón S.A.	 	Chile	 	—	 	—	 	—	 	14.05	 	—	 	288,805	 	—	 	40,577	 	—	 	13,582	 	—	 	1,908	 	
99551480-K	 	Inmobiliaria San Patricio S.A.	 	Chile	 	—	 	—	 	—	 	14.05	 	—	 	19,960	 	—	 	2,804	 	—	 	(88	)	—	 	(12	)	
0-E	 	Fertilizantes Naturales S.A.	 	Chile	 	—	 	—	 	25.00	 	—	 	—	 	582	 	130	 	291	 	—	 	—	 	7	 	—	 	
 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 	  	 		 		 	  	 	  	 	  	 	  	 	
   Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	16,561	 	57,506	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 	  	 		 		 	  	 	  	 	  	 	  	 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 )
Note 10 - Goodwill and Negative Goodwill
Goodwill and negative goodwill and the related amortization is summarized as follows: 
a)	Goodwill	

				March 31, 2005  		March 31, 2004		
								
Tax Registration
Number		Company		Amount amortized
during the period		Goodwill
balance		Amount amortized
during the period	 	Goodwill
balance		
	 		 		 		 		 		 	
 	 	 	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	
0-E	 	Doktor Tarsa	 	19	 	3	 	18	 	77	 	
79768170-9	 	Soquimich Comercial S.A.	 	38	 	84	 	37	 	235	 	
93390000-2	 	Empresas Melón S.A.	 	—	 	—	 	143	 	8,038	 	
79626800-K	 	SQM Salar S.A.	 	11	 	29	 	11	 	72	 	
0-E	 	SQM México S.A. de C.V.	 	14	 	933	 	14	 	989	 	
96864750-4	 	SQM Potassium S.A.	 	36	 	1,699	 	36	 	1,843	 	
0-E	 	Comercial Caiman Internacional S.A.	 	6	 	171	 	6	 	194	 	
0-E	 	Fertilizantes Olmeca S.A. de C.V.	 	14	 	153	 	14	 	209	 	
0-E	 	Safnits PTY Ltd.	 	15	 	302	 	—	 	—	 	
79947100-0	 	Yumbes SCM	 	159	 	12,479	 	—	 	—	 	
96801610-5	 	Comercial Hydro S.A.	 	37	 	1,195	 	58	 	1,225	 	
 	 	 	 		 		 		 		 	
Total	 	 	 	349	 	17,048	 	337	 	12,882	 	

b)	Negative Goodwill	

				March 31, 2005    		March 31, 2004    		
								
Tax Registration
Number		Company		Amount amortized
during the period	 	Negative
goodwill
balance		Amount amortized
during the period	 	Negative
goodwill
balance		
	 		 		 		 		 		 	
 	 	 	 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	
96575300-1	 	Minera Mapocho S.A.	 	60	 	220	 	51	 	423	 	
 	 	 	 		 		 		 		 	
Total	 	 	 	60	 	220	 	51	 	423	 	
 	 	 	 		 		 		 		 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
Note 11 - Other Long-term Assets 
Other long-term assets are summarized as follows: 
 	2005	 	2004	 	
 		 		 	
 	ThUS$ 	 	ThUS$	 	
Engine and equipment spare-parts, net	22,495	 	29,609	 	
Mine development costs	21,753	 	18,471	 	
Pension plan	1,165	 	1,137	 	
Construction of Salar-Baquedano road	1,620	 	1,740	 	
Deferred loan issuance costs	978	 	1,932	 	
Other	1,805	 	1,943	 	
 		 		 	
   Total	49,816	 	54,832	 	
 		 		 	
Note 12 - Bank Debt 
a)	Short-term bank debt is detailed as follows: 	

 	2005	 	2004	 	
 		 		 	
 	ThUS$	 	ThUS$ 	 	
Bank or financial institution	 	 	 	 	
SCH Overseas Bank	—	 	40,000	 	
Scotiabank	—	 	13,025	 	
Citibank	—	 	12,070	 	
 		 		 	
   Total	—	 	65,095	 	
 		 		 	
Annual average interest rate	—	 	1.44	%	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
Note 12 - Bank Debt (continued)
b)	Long-term bank debt is detailed as follows: 	

 	2005	 	2004	 	
 		 		 	
 	ThUS$	 	ThUS$	 	
Bank or financial institution	 	 	 	 	
Union Bank of Switzerland (1)	200,727	 	200,685	 	
Royal Bank of Canada (2)	—	 	60,356	 	
BBVA Banco Bilbao Vizcaya Argentaria (3)	100,254	 	—	 	
 		 		 	
   Total	300,981	 	261,041	 	
 		 		 	
Less: Current portion	(981	)	(1,041	)	
 		 		 	
      Long-term portion	300,000	 	260,000	 	

(1)	U.S. dollar-denominated loan without guarantee, interest rate of 7.7% per annum, paid semi-annually. The principal is due on September 15, 2006.	
(2)	U.S. dollar-denominated loan without guarantee, interest rate of 1.99% per annum, paid semi-annually. The principal is divided into five equal semi-annual installments, which was fully paid on June 24, 2004.	
(3)	U.S. dollar-denominated loan without guarantee, interest rate of Libor + 0.325% per annum, quarterly payment. The principal is due on March 3, 2010.	

c)	The maturity of long-term debt is as follows: 	

 	2005	 	2004	 	
 		 		 	
 	ThUS$	 	ThUS$	 	
Years to maturity	 	 	 	 	
Current portion	981	 	1,041	 	
1 to 2 years	200,000	 	—	 	
2 to 3 years	—	 	260,000	 	
3 to 5 years	100,000	 	—	 	
 		 		 	
   Total	300,981	 	261,041	 	
 		 		 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
Note 13 - Accrued Liabilities 
As of March 31, 2005 and 2004, accrued liabilities are summarized as follows: 
 	2005	 	2004	 	
 		 		 	
 	ThUS$ $	 	ThUS	 	
Provision for royalties	1,420	 	958	 	
Quarterly bonus	407	 	453	 	
Provision for employee compensation and legal costs	1,568	 	1,701	 	
Taxes and monthly income tax installment payments	1,517	 	746	 	
Vacation accrual	6,088	 	5,515	 	
Accrued employee benefits	2,051	 	920	 	
Marketing expenses	1,100	 	1,225	 	
Other accruals	1,109	 	1,705	 	
 		 		 	
   Total current liabilities	15,260	 	13,223	 	
 		 		 	
Note 14 - Income and Deferred Taxes 
a)	At March 31, 2005 and 2004 the Company has the following consolidated balances for retained tax earnings, income not subject to taxes, tax loss carry-forwards and credit for shareholders:	

 	2005	 	2004	 	
 		 		 	
 	ThUS$	 	ThUS$	 	
Accumulated tax basis retained earnings	 	 	 	 	
   with tax credit	124,591	 	33,185	 	
Tax loss carry-forwards (1)	198,023	 	45,748	 	
Credit for shareholders	25,153	 	6,115	 	

(1)	Income tax losses in Chile can be carried forward indefinitely.	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
Note 14 - Income and Deferred Taxes (continued) 
The deferred taxes as of March 31, 2005 and 2004 represented a net liability of ThUS$ 40,275 and ThUS$ 32,790, respectively, and consisted of: 
2005	Deferred tax asset	  	Deferred tax liability	 	
 					
 	Short-term	 	Long-term		Short-term	 	Long-term		
 		 		 		 		 	
 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	
Temporary differences	 	 	 	 	 	 	 	 	
Allowance for doubtful accounts	1,659	 	546	 	—	 	—	 	
Vacation accrual	970	 	—	 	—	 	—	 	
Unrealized gain on sale of products	9,794	 	—	 	—	 	—	 	
Provision for obsolescence	—	 	1,976	 	—	 	—	 	
Production expenses	7,871	 	—	 	20,636	 	—	 	
Accelerated depreciation	—	 	—	 	—	 	53,479	 	
Exploration expenses	—	 	—	 	—	 	5,244	 	
Capitalized interest	—	 	—	 	—	 	5,804	 	
Staff severance indemnities	—	 	—	 	—	 	1,990	 	
Accrued expenses	—	 	170	 	—	 	—	 	
Capitalized expenses	—	 	—	 	—	 	295	 	
Tax loss carry-forwards	23	 	35,733	 	—	 	—	 	
Losses from derivative transactions	3	 	—	 	—	 	—	 	
Accrued interest	57	 	—	 	—	 	—	 	
Provision for investment contractual obligations	170	 	—	 	—	 	—	 	
Other	1,478	 	2,336	 	6	 	236	 	
 		 		 		 		 	
   Total gross deferred taxes	22,025	 	40,761	 	20,642	 	67,048	 	
Total complementary accounts	—	 	(5,933	)	(2,309	)	(25,099	)	
Valuation allowance	(8,045	)	(28,801	)	—	 	—	 	
 		 		 		 		 	
   Total deferred taxes	13,980	 	6,027	 	18,333	 	41,949	 	
 		 		 		 		 	
36 

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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
Note 14 - Income and Deferred Taxes (continued) 
2004	Deferred tax asset	 	Deferred tax liability	 	
 		 		 	
 	Short-term	 	Long-term	 	Short-term	 	Long-term	 	
 		 		 		 		 	
 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	
Temporary differences	 	 	 	 	 	 	 	 	
Allowance for doubtful accounts	1,236	 	559	 	—	 	—	 	
Vacation accrual	901	 	—	 	—	 	—	 	
Unrealized gain on sale of products	5,778	 	—	 	—	 	—	 	
Provision for obsolescence	—	 	3,164	 	—	 	—	 	
Production expenses	—	 	—	 	18,650	 	—	 	
Accelerated depreciation	—	 	—	 	—	 	59,241	 	
Exploration expenses	—	 	—	 	—	 	4,361	 	
Capitalized interest	—	 	—	 	—	 	6,090	 	
Staff severance indemnities	—	 	—	 	—	 	1,940	 	
Accrued expenses	—	 	—	 	—	 	425	 	
Capitalized expenses	—	 	—	 	—	 	554	 	
Tax loss carry-forwards	119	 	12,595	 	—	 	—	 	
Losses from derivative transactions	—	 	—	 	309	 	—	 	
Accrued interest	66	 	—	 	—	 	—	 	
Other	1,072	 	477	 	43	 	163	 	
 		 		 		 		 	
   Total gross deferred taxes	9,172	 	16,795	 	19,002	 	72,774	 	
Total complementary accounts	—	 	(1,233	)	(3,407	)	(31,384	)	
Valuation allowance	—	 	(539	)	—	 	—	 	
 		 		 		 		 	
   Total deferred taxes	9,172	 	15,023	 	15,595	 	41,390	 	
 		 		 		 		 	
37 

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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
Note 14 - Income and Deferred Taxes (continued) 
c)	Income tax expense is summarized as follows: 	
 	 	
 	2005	 	2004	 	
 		 		 	
 	ThUS$ 	 	ThUS$	 	
Provision for current income tax	(8,752	)	(869	)	
Effect of deferred tax assets and liabilities	2,653	 	(2,030	)	
Effect of amortization of complementary accounts	(1,067	)	(1,532	)	
Other tax charges and credits	(19	)	30	 	
 		 		 	
   Total income tax expense	(7,185	)	(4,401	)	
 		 		 	
Note 15 – Staff Severance Indemnities 
Staff severance indemnities are summarized as follows: 
 	2005	 	2004	 	
 		 		 	
 	ThUS$	 	ThUS$	 	
Opening balance	11,875	 	10,127	 	
Increases in obligation	1,010	 	882	 	
Payments	(591	)	(771	)	
Exchange difference	(514	)	(324	)	
 		 		 	
Balance as of March 31	11,780	 	9,914	 	
 		 		 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
Note 16 - Minority Interest 
Minority interest is summarized as follows: 
 	Equity	 	Net Income/(Loss)	 	
 				 				 	
 	2005	 	2004	 	2005	 	2004	 	
 		 		 		 		 	
 	ThUS$	 	ThUS$	 	ThUS$	 	ThUS$	 	
Soquimich Comercial S.A.	29,555	 	25,167	 	(539	)	(601	)	
Ajay SQM Chile S.A.	3,333	 	3,248	 	(139	)	(96	)	
Cape Fear Bulk LLC	202	 	148	 	(56	)	(48	)	
SQM Italia S.R.L	21	 	19	 	(1	)	2	 	
SQM Nitratos México S.A. de C.V.	(75	)	(58	)	29	 	(25	)	
SQM Indonesia S.A.	(2	)	—	 	2	 	—	 	
 		 		 		 		 	
   Total	33,034	 	28,524	 	(704	)	(768	)	
 		 		 		 		 	
39 

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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.
Consolidated Balance Sheets
(A translation of the original in Spanish- see note 2 ) 
Note 17 - Shareholders’ Equity	
 	 	
a)	Changes to shareholders’ equity consisted of: 	
 	 	  	 	 	 	 	Accumulated	 	 	 	 	 	 	 	
							deficit								
							of subsidiaries in								
	Number		Paid-in		Other		development		Retained		Net				
	of shares		capital		reserves		stage		earnings		income		Total		
															
	 		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		
Balance as of January 1, 2004 	263,196,524	 	477,386	 	141,420	 	(6,519	)	230,932	 	46,753	 	889,972	 	
Transfer 2003 net income to retained earnings 	—	 	—	 	—	 	—	 	46,753	 	(46,753	)	—	 	
Accumulated deficit from subsidiaries in development stage (1) 	—	 	—	 	—	 	(863	)	—	 	—	 	(863	)	
Other comprehensive income (2) 	—	 	—	 	(3,757	)	—	 	—	 	—	 	(3,757	)	
Net income for the year 	—	 	—	 	—	 	—	 	—	 	13,997	 	13,997	 	
  		  		  		 		 		  		 		 	
Balance as of March 31, 2004 	263,196,524	 	477,386	 	137,663	 	(7,382	)	277,685	 	13,997	 	899,349	 	
  		  		  		 		 		  		 		 	
Balance January 1,2005 	263,196,524	 	477,386	 	150,886	 	(8,370	)	254,493	 	74,232	 	948,627	 	
Transfer 2004 net income to retained earnings 	—	 	—	 	—	 	—	 	74,232	 	(74,232	)	—	 	
Other comprehensive income (2) 	—	 	—	 	(2,690	)	—	 	—	 	—	 	(2,690	)	
Net income for the year 	—	 	—	 	—	 	—	 	—	 	24,751	 	24,751	 	
  		  		  		 		 		  		 		 	
Balance as of March 31, 2005 	263,196,524	 	477,386	 	148,196	 	(8.370	)	328,725	 	24,751	 	970,688	 	

(1)	The only subsidiary currently in a development stage is SQM Lithium Specialties Limited.	
(2)	Other comprehensive income includes translation adjustments and the effect of changes in the valuation of the Company’s under-funded pension as of March 31, 2004 and 2005.	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish– see note 2 ) 
Note 17 - Shareholders’ Equity (continued) 	
 	 	 	
b)	The composition of other comprehensive income as of March 31, 2005 is as follows: 	

 	 	 	For the
year ended
March 31, 2005	 	As of
March 31, 2005	 	
 	 	 		 		 	
 	 	 	ThUS$ 	 	ThUS$	 	
Detail	 	 	 	 	 	 	
Technical appraisal	 	 	—	 	151,345	 	
Changes to other comprehensive income from equity method investments:	 	 	 	 	 	 	
Soquimich Comercial S.A.	(1	)	(2,666	)	(1,920	)	
Isapre Note Grande Ltda.	(1	)	—	 	(83	)	
Inversiones Augusta S.A.	(1	)	—	 	(761	)	
SQM Ecuador S.A.	(3	)	—	 	(271	)	
Almacenes y Depósitos Ltda.	(1	)	(23	)	(79	)	
Asociación Garantizadora de Pensiones	(1	)	(1	)	(14	)	
Sales de Magnesio Ltda.	(1	)	—	 	52	 	
SQM North America Corp.	(2	)	—	 	(793	)	
Other Companies	(1	)	—	 	720	 	
 	 	 		 		 	
Total other comprehensive income	 	 	(2,690	)	148,196	 	

(1)	Corresponds to translation adjustments and monetary correction	
(2)	Corresponds to a change in the valuation of the Company’s under–funded pension scheme	
(3)	Corresponds to the translation adjustment produced by the application of a new law implemented by the Ecuadorian Government	
c)     Capital consists of 263,196,524 fully authorized, subscribed and paid shares with no par value, divided into 142,819,552 Series A shares and 120,376,972 Series B shares. 
The preferential voting rights of each series are as follows:
 	Series A :	 	If the election of the president of the Company results in a tied vote, the Company's directors may vote once again, without the vote of the director elected by the Series B shareholders. 	
 	Series B : 	 	1)	A general or extraordinary shareholders' meeting may be called at the request of shareholders representing 5% of the Company's Series B shares. 	
 	 	 	2)	An extraordinary meeting of the Board of Directors may be called with or without the agreement of the Company's president, at the request of a director elected by Series B shareholders. 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish– see note 2 ) 
Note 18 - Derivatives Instruments 	
Derivative instruments are recorded at their fair value at year-end. Changes in fair value are recognized in income with the liability recorded in other current liabilities. Losses from options relate to fees paid by the Company to enter into such contracts. As of March 31, 2005 the Company’s derivative instruments are as follows: 
2005	 	Notional or	 	 	 	 	 	 	 	 	 	 	 	
Type of	 	covered	 	Expiration	 	Description of the contract	 	Position	 	(Liability)Asset	 	Income	 	
derivative	 	amount	 	 	 	type	 	purchase/sale	 	amount	 	(loss) recorded	 	
	 		 		 		 		 		 		 	
 	 	ThUS$	 	 	 	 	 	 	 	ThUS$	 	ThUS$	 	
US dollar Forward	 	6,010	 	2nd quarter of 2005	 	Exchange rate	 	S	 	(22	)	(22	)	
US dollar Forward	 	26	 	2nd quarter of 2005	 	Exchange rate	 	S		1	 	1	 	
US dollar Forward	 	601	 	2nd quarter of 2005	 	Exchange rate	 	S	 	(1	)	(1	)	
US dollar Forward	 	25,849	 	2nd quarter of 2005	 	Exchange rate	 	S	 	68	 	68	 	
US dollar Forward	 	1,078	 	2nd quarter of 2005	 	Exchange rate	 	P	 	(12	)	(12	)	
US dollar Forward	 	24,267	 	3rd quarter of 2005	 	Exchange rate	 	S	 	31	 	31	 	
US dollar Forward	 	284	 	3rd quarter of 2005	 	Exchange rate	 	P	 	6	 	6	 	
US dollar Forward	 	13,671	 	4th quarter of 2005	 	Exchange rate	 	S	 	(5	)	(5	)	
US dollar Forward	 	76	 	4th quarter of 2005	 	Exchange rate	 	P	 	2	 	2	 	
US dollar PUT	 	14,460	 	2nd quarter of 2005	 	Exchange rate	 	S	 	(4	)	(4	)	
US dollar PUT	 	14,460	 	2nd quarter of 2005	 	Exchange rate	 	P	 	94	 	94	 	
US dollar PUT	 	32,005	 	2nd quarter of 2005	 	Exchange rate	 	S	 	(467	)	(467	)	
US dollar PUT	 	63,573	 	2nd quarter of 2005	 	Exchange rate	 	P	 	27	 	27	 	
US dollar PUT	 	10,002	 	3rd quarter of 2005	 	Exchange rate	 	S	 	(251	)	(251	)	
US dollar PUT	 	19,867	 	3rd quarter of 2005	 	Exchange rate	 	P	 	141	 	141	 	
US dollar PUT	 	8,001	 	4th quarter of 2005	 	Exchange rate	 	S	 	(272	)	(272	)	
US dollar PUT	 	15,893	 	4th quarter of 2005	 	Exchange rate	 	P	 	206	 	206	 	
 	 		 	 	 	 	 	 	 		 		 	
 	 	250,123	 	 	 	 	 	 	 	(458	)	(458	)	
 	 		 	 	 	 	 	 	 		 		 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets
(A translation of the original in Spanish– see note 2 ) 
Note 19 - - Non-Operating Income and Expenses 
Amounts included in non-operating income and expenses are summarized as follows: 
a)  Non-operating income
 	2005	 	2004	 	
 		 		 	
 	ThUS$ 	 	ThUS$	 	
Interest income	1,204	 	587	 	
Reversal of allowance for doubtful accounts	14	 	—	 	
Net foreign exchange	780	 	—	 	
Insurance recoveries	40	 	15	 	
Rental of property, plant and equipment	299	 	199	 	
Sales of materials and services	—	 	21	 	
Equity participation in net income of unconsolidated subsidiaries	275	 	2,766	 	
Compensation obtained from third parties	737	 	—	 	
Other income	629	 	554	 	
 		 		 	
Total	3,978	 	4,142	 	

b)  Non-operating expenses
 	2005	 	2004	 	
 		 		 	
 	ThUS$ 	 	ThUS$	 	
Write-off of investments	4,119	 	1,821	 	
Interest expense	4,142	 	4,695	 	
Equity participation in net losses of unconsolidated subsidiaries	128	 	73	 	
Amortization of goodwill	349	 	337	 	
Net foreign exchange losses	—	 	566	 	
Work disruption expenses	25	 	105	 	
Increase in provision for employee compensation and legal costs	71	 	515	 	
Other expenses	461	 	818	 	
 		 		 	
Total	9,295	 	8,930	 	
 		 		 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
Note 20 - - Price-level Restatement 
Amounts charged or credited to income relating to price-level restatement are summarized as follows: 
 	(Charge) credit to income from operations	 	
	2005	 	2004		
 		 		 	
 	ThUS$	 	ThUS$	 	
Property, plant and equipment	(10	)	(68	)	
Other assets and liabilities	(100	)	5	 	
Shareholders’ equity	644	 	360	 	
 		 		 	
   Net price-level restatement	534	 	297	 	
 		 		 	
Note 21 - Assets and Liabilities Denominated in Foreign Currency 
  	2005	   	2004	   	
					
	ThUS$ 		ThUS$		
Assets	 	 	 	 	
Total assets	 	 	 	 	
      Chilean pesos	55,258	 	124,789	 	
      US dollars	1,310,926	 	1,139,918	 	
      Euros	24,082	 	50,021	 	
      Japanese Yen	6,780	 	3,625	 	
      Brazilian Real	241	 	896	 	
      Mexican pesos	7,859	 	18,673	 	
      UF	46,413	 	40,985	 	
      South African Rand	9,056	 	5,900	 	
      Other currencies	2,863	 	1,122	 	
 	 	 	 	 	
Current liabilities	 	 	 	 	
      Chilean pesos	49,071	 	49,288	 	
      US dollars	50,630	 	89,059	 	
      Euros	1,216	 	8,282	 	
      Japanese Yen	19	 	34	 	
      Brazilian Real	684	 	639	 	
      Mexican pesos	6,588	 	7,976	 	
      UF	145	 	147	 	
      South African Rand	2,655	 	3,944	 	
      Other currencies	38	 	399	 	
 	 	 	 	 	
Long-term liabilities	 	 	 	 	
      Chilean pesos	10,382	 	8,042	 	
      US dollars	337,201	 	289,175	 	
      Japanese Yen	117	 	—	 	
      UF	1,008	 	1,071	 	
      Other currencies	2	 	—	 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
Note 22 – Cash Flow Statement 
Amounts included in other investing income are summarized as follows: 
 	2005	 	2004	 	
 		 		 	
 	ThUS$ 	 	ThUS$	 	
Repayment of employee loans	31	 	104	 	
Compensation obtained from third parties	737	 	—	 	
 		 		 	
   Total	768	 	104	 	
 		 		 	
Note 23 – Commitments and Contingencies
I.	Contingencies: 	
 	 	
 	(a)	Material lawsuits or other legal actions of which the Company is party to: 	
 	 	 	 	 	 	
 	 	1	Plaintiff	:	SQM Salar S.A.	
 	 	 	Defendants	:	ACE Seguros S.A. (formerly – Cigna Compañía de	
 	 	 	 	 	Seguros (Chile) S.A.) and Chubb de Chile	
 	 	 	 	 	Compañía de Seguros Generales S.A.	
 	 	 	Date of lawsuit	:	April 2001	
 	 	 	Matter	:	Arbitration	
 	 	 	Status	:	Collection of compensation for insured claim	
 	 	 	Instance	:	On December 22, 2004, the court rejected both the principal	
 	 	 	 	 	lawsuit and the countersuit. SQM Salar S.A. has appealed part	
 	 	 	 	 	of this decision, which is currently being processed by the	
 	 	 	 	 	Santiago Court of Appeals.	
 	 	 	Nominative value: ThUS$ 36,316	 	 	
 	 	 	 	 	 	
 	 	2	Plaintiffs	:	Du Guano de Poisson Angibaud S.A. and Generale de	
 	 	 	 	 	Nutrition Vegetale SAS	
 	 	 	Defendants	:	Soquimich European Holdings B.V., NU3 N.V. and SQM	
 	 	 	 	 	France S.A.	
 	 	 	Date of lawsuit	:	December 2002	
 	 	 	Court	:	Court of Arbitration in France	
 	 	 	Matter	:	Termination of the company relationship and	
 	 	 	 	 	liquidation of the company Generale de Nutrition	
 	 	 	 	 	Vegetale SAS	
 	 	 	Status	:	Rejoinder	
 	 	 	Nominative value: ThEuro$ 30,295	 	 	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
Note 23 – Commitments and Contingencies (continued) 
I.	Contingencies (continued): 	
 	 	 	
 	(b)	Models for the Production of the María Elena Site 	
 	 	 	
 	 	The Company is currently implementing different projects related to the María Elena Site Decontamination Plan (Note 26).	
 	 	 	
 	 	Projects that are being implemented in the María Elena site, a priori, do not generate any significant changes in the current mining reserves or forecasted production volumes. 	
 	 	 	
 	 	The final execution of these projects is subject to the approval of environmental impact studies presented last December to the respective authorities. 	
 	 	 	
 	(c)	Other	
 	 	 	
 	 	The Company and its subsidiaries are involved in litigation in the ordinary course of business. Based on the advice of counsel, management believes the litigation will not have a material effect on the consolidated financial statements.	
 	 	 	
II.	Commitments:	
 	 	 	
 	(a)	The subsidiary SQM Salar S.A. maintains an agreement with a government agency, whereby the Company must make annual payments until 2030 based on the Company’s annual sales. This amount, which has been paid since the beginning of the agreement in 1996, was ThUS$ 1,420 in 2005 (ThUS$ 958 in 2004).	
 	 	 	
 	(b)	The Company has certain indirect guarantees, which relate to agreements with no remaining payments pending. These guarantees are still in effect and have been approved by the Company’s Board of Directors; however, they have not been used by the subsidiaries.	
 	 	 	
 	(c)	Bank debt of SQM S.A. and its subsidiaries has no restrictions or terms other than those that might usually be found in identical debt in the financial markets, such as maximum indebtedness and minimum equity among others.	
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
Note 24 – Third Party Guarantees 
As of March 31, 2005 and 2004 the Company has the following indirect guarantees outstanding: 
  	Debtor	Balances outstanding	
 		 		
Beneficiary 	Name	Relationship	 	2005	 	2004	
  	 	 	 	ThUS$ 	 	ThUS$	
Phelps Dodge Corporation 	SQM Potasio S.A.	Subsidiary	 	957	 	1,863	
Note 25 – Sanctions 
During 2005 and 2004, the SVS did not apply sanctions to the Company, its directors or managers. 
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
Note 26 – Environmental Projects 
Disbursements incurred by the Company as of March 31, 2005 relating to its investments in production processes and compliance with regulations related to industrial processes and facilities are as follows: 
 	 	 	Future	 	
 	2005	 	Disbursements	 	
 		 		 	
 	ThUS$	 	ThUS$	 	
Project	 	 	 	 	
Environmental department	174	 	388	 	
Boratos sewage treatment plant	294	 	4	 	
Tocopilla project	615	 	—	 	
Engineering and building of María Elena piles	2,692	 	51,975	 	
Treatment plant MOP	208	 	—	 	
Renewal of fire water network	4	 	—	 	
Increase in P2 camp plant treatment capacity	28	 	32	 	
Light normalization	224	 	27	 	
Light normalization II	—	 	100	 	
Normalization of railings, corridors, CS crystal stairways	—	 	863	 	
Authorization of money exchanges	—	 	200	 	
Implementation of risk control system	117	 	3	 	
Dangerous waste dumps	7	 	357	 	
Extension of the carbonate plant (DIA)	556	 	—	 	
Dry plant aspiration system	118	 	—	 	
Modification of fire network (lithium carbonate)	132	 	—	 	
Improvements in the salt deposit environment	93	 	14	 	
Drying plant emission control	—	 	60	 	
PG Salt deposit risk management	—	 	32	 	
Engineering management environmental expenses	31	 	9	 	
 		 		 	
Total	5,293	 	54,064	 	
 		 		 	
Protecting the environment, both in regards to the Company’s productive processes and the manufactured goods, is a constant concern for SQM. 
SQM is currently implementing an Environmental Management System, which is based on the ISO 14000 standard, with which the Company will improve its environmental performance. The implementation program stipulates that all the operations maintained by the Company in Regions I and II of Chile, will have a fully implemented Environmental Management System by late 2005. 
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
Note 26 – Environmental Projects (continued) 
Processes where sodium nitrate is used as a raw material are carried out in geographical areas such as the desert with favorable weather conditions for drying solid materials and evaporating liquids used in solar energy. The extraction of minerals in open pit mines, given their low waste-to-mineral ratio, gives rise to waste deposits that have little impact on the environment. The extraction process and ore crushing produce particles that are consistent with the industry of operation. 
On August 10, 1993, the Ministry of Health published a resolution under the Sanitary Code that established that the levels of breathable particles present at Maria Elena Plant exceeded the level allowed for air quality and, consequently, affected the nearby city of Maria Elena. Particles mainly come from dust that results from processing the sodium nitrate, particularly at the crushing process prior to leaching. The Company has implemented a series of measures that have shown notable improvement in air quality at María Elena. A new decontamination plan for this area, released on March 13, 2004, is intended to meet air quality standards by April 1, 2006. On December 30, 2004, the Company submitted a proposal entitled “Technological Change at María Elena”, which intends to reduce particle emission, to the government’s Environmental Impact Evaluation System. This proposal is presently pending evaluation by the environmental regulators, whose decision should be made public during the first semester of 2005. 
Ore treatment operations, as they are controlled processes, produce solid residual materials that are the non-soluble by product and a certain degree of moisture. 
SQM entered into a contract with the National Forestry Corporation (CONAF) aimed at researching the activities of flamingo groups that live in the Atacama Salt Mine lagoons. Such research includes a population count of the birds and wildlife, breeding research, additional behavior research and the climate phenomena of the area. 
Consistent with the Company’s ongoing commitment with the environmental authorities, the Company actively participates in the Joint Monitoring Research project for the Atacama Salt Mine watershed along with other mining companies that make use of the water resources that supply the Atacama Salt Mine. To perform this study, SQM has involved diverse scientists from prestigious research institutions such as Dictuc of Pontificia Universidad Católica, the University of Nevada, Cornell University and the University of Binghamton in New York. 
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
Note 27 – Significant Events 
On January 19, 2005, the Company’s Board of Directors informed the SVS that, in an Ordinary Session of the Board on January 18, 2005, they accepted the voluntary and irrevocable resignation of Mr. Avi Milstein as Director and appointed Mr. Daniel Yarur E. in his place. 
On February 25, 2005, Royal Seed Trading Corp A.V.V., a subsidiary of Sociedad Química y Minera de Chile S.A., entered into a syndicated loan for ThUS$ 100,000, guaranteed by its Parent Company, with the following banks: BBVA Securities Inc., BNP Paribas and Rabobank Curacao N.V. The loan matures in 5 years, with quarterly interest payments at an initial annual interest rate of Libor + 0.325%", which could vary depending on any possible future modifications in the subsidiary’s external debt classification. There are no real guarantees associated with this loan. 
On March 16, 2005, the Company informed the Chilean Superintendency of Securities and Insurance (SVS) that the Board of Directors of Sociedad Química y Minera de Chile S.A. (SQM) at the ordinary meeting dated March 15, 2005 unanimously agreed to propose the payment of a final dividend for a sum of US$0.18282 per share in favor of all those shareholders of SQM that are registered with the respective registry during the fifth business day prior to the day in which this dividend will be paid. 
Upon approval of the aforementioned proposal at the next Ordinary Shareholders’ Meeting that will be held on April 29, 2004, the amount of the final dividend to be distributed will be increased from 50% to 65% of net income and implies the partial modification of the Dividend Policy for the 2004 commercial year, which was communicated at the General Ordinary Shareholders’ Meeting held on April 30, 2004. 
Note 28 – Subsequent Events 
The director Mr. José Antonio Silva B. consulted with the Chilean Superintendency of Securities and Insurance ("SVS") as to the applicability of the concept of "limitation of related persons" to Article 31 of the by-laws of SQM S.A. and as equal to this concept already existing in Article 31 Bis of the aforementioned by-laws- and also in respect to the quorum required to modify the percentage of "37.5%" referred to in Article 31. The SVS, through Ordinary Official Communication N002622 dated March 16, 2005, asked the Company's opinion in this respect and the Company, through its management informed the Board of Directors that the concept of "limitation of related persons" does not exist in Article 31 and that the history of both articles plus the interpretation of these articles at the different Shareholders' meetings held throughout the years and the different objectives of these articles, among other aspects, allow concluding that this concept is not applicable to article 31 and that; in addition, the amendment of the percentage requires the vote by absolute majority of shares issued with voting rights present at the Shareholders' meeting that analyze this amendment. Four directors agreed with the opinion provided by the management of SQM S.A. and two directors disagreed with this opinion and this was informed to the SVS. The SVS confirmed the opinion provided by the management of SQM S.A. based on matter of law of fact considerations explained in Ordinary Official Communication N003821 dated April 19, 2005. 
Inversiones El Boldo Limitada, owner of more than 10% of voting right shares issued of SQM S.A. and related to Potash Corporation of Saskatchewan Inc., on April 25, 2005 has requested from the Board of
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
directors of SQM S.A. that it requests an Extraordinary Shareholders' Meeting of the Company to vote as to the convenience of either eliminating or not Series A and B shares - and preferences related to these series - - in which the Company's capital is currently divided through the amendment of the pertinent articles of the Company's by-laws required to reflect this possible elimination and; alternately, and provided that the shareholders do not approve this elimination, to modify article 31 of these by-laws with the purpose of incorporating in this article the concept of "related persons" already included in Article 31 Bis of the aforementioned by-laws. The Company's Board of Directors unanimously agreed on its meeting held on April 26, 2005 to summon such a meeting for May 25, 2005 at 10.00 a.m. 
Management is not aware of any significant subsequent events that have occurred after March 31, 2005 and that may affect the Company’s financial position or the interpretation of these financial statements, (April 26, 2005). 
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SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
Consolidated Balance Sheets 
(A translation of the original in Spanish- see note 2 ) 
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SIGNATURES 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 
SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. 
 	Conf: /s/ Ricardo Ramos	

 	Ricardo Ramos	
 	Chief Financial Officer &	
 	Business Development SVP	

 	 	
Date: May 17, 2005	 	
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