Company: SQM
Filing Date: 2025-04-24
Form Type: 20-F
Source: 0000909037-25-000020
Chunk: 131

Company: CHEMICAL & MINING CO OF CHILE INC
Filing Date: 2025-04-24
Form: 20-F
Item: Item 4A
Chunk 131
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. The resources have been reported as in-situ from a block model regularized to 5mN x 5mE x 5mRL and constrained to an optimized pit shell. Resource pit optimization and economics for derivation of cut-off grade include pricing of US$1300/t FOB Australia of 6% Li2O concentrate, US$5.82/t mining cost, US$44.67/t processing cost, US$8.95/t concentrator feed corporate overheads cost, US$42.39/t on concentrate logistics cost. Mining dilution was set at 5% and recovery at 95%. Royalty rates are 5%. The optimization considered concentrator recoveries of 75% for spodumene mineral domains, 55% for mixed spodumene and petalite mineral domains, and 35% for petalite mineral domains. Costs estimated in Australian Dollars were converted to US Dollars based on an exchange rate of 0.70US$:1.00AU$. The average price from 2026 to 2040 for 6.0% spodumene concentrate from the Benchmark Lithium Forecast Report Q4 2024 was applied for the determination of Mineral Resources. These economic parameters define a 0.50% Li2O cut-off grade for the spodumene and mixed domains and 0.78% Li2O for the petalite domain. Geoinnova Consultores are the Qualified Persons responsible for the Mineral Resource estimate, effective, December 31, 2024. 
Total Mineral Resource tons increased by 30% from 95 metric tons reported as of December 31,2023 to 125.8 metric tons as of December 31, 2024. Depletion of the Mineral Resource was completed by interrogating the 2023 resource model against the end of year mine surface. There was 18 thousand tons of material depleted that was considered part of the 2023 exclusive mineral resource. The model update resulted in an increase of 12.3 metric tons of total Mineral Resources, and changes to reporting parameters (regularizing the model to 5x5x5, changes to mine economics, applying a 100m buffer to the TSF for pit optimization and a change in petalite processing recovery) resulted in an increase of 16.8 Mt to total Mineral Resources. The changes also resulted in a 13% decrease in the reported Li2O grade and a 13% total increase in total