Company: SQM
Filing Date: 2025-04-24
Form Type: 20-F
Source: 0000909037-25-000020
Chunk: 1

Company: CHEMICAL & MINING CO OF CHILE INC
Filing Date: 2025-04-24
Form: 20-F
Item: Item 3
Chunk 1
---
 SQM and Codelco, the Chilean state-owned copper mining company which had been mandated by the Chilean government to negotiate its participation in the lithium operations in the Salar de Atacama, entered into a partnership agreement which establishes the rights and obligations of the parties to form an entity for the development of mining and production activities aimed at the production of lithium, potassium and other products from the properties of Corfo in the Salar de Atacama and their subsequent marketing (directly or through its subsidiaries or representative offices). The entity is to be formed through the merger by incorporation of Codelco’s subsidiary, Minera Tarar SpA, into the Company’s subsidiary, SQM Salar, subject to the terms and conditions set forth in the partnership agreement. Minera Tarar will obtain the mineral exploitation rights in the Salar de Atacama for the period January 1, 2031 to December 31, 2060 pursuant to a lease agreement and a project agreement to be entered into with Corfo (the “Tarar-Corfo Agreements”).
The partnership agreement includes forms of several agreements and documents to be entered into by the parties prior to the completion of the transaction, including a shareholders’ agreement, a sales agreement for the sale of the Company’s properties in the Salar de Maricunga, a license to be granted by the Company to the shared entity over certain industrial property rights, the by-laws and powers of attorney of the shared entity, the manner in which the Company will contribute to SQM Salar those assets and contracts of our lithium business in the Salar de Atacama that are not currently owned by SQM Salar, and execution of the Tarar-Corfo Agreements, among others. A number of conditions precedent remain to be satisfied for the formation of the joint venture to become effective, including completion of the consultation process with the indigenous communities in the Salar de Atacama, and termination of the SEC’s investigation described under “We are subject to Chilean and international anti-corruption, anti-bribery, anti-money laundering and international trade laws. Failure to comply with these laws could adversely impact our business, financial condition and results of operations.” on the terms described in the partnership agreement.
Our business is substantially dependent on the exploitation rights under the SQM-Corfo Agreements, since all of our products originating from the Salar de Atacama are derived from our extraction operations under the SQM-Corfo Agreements. For the year ended