UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549










FORM 20-F



 ̈   
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR



x  
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31,
2014

OR



 ̈   
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR



 ̈  
SHELL COMPANY REPORT PURSUANT TO SECTION 23 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company
report_______________________________

For the transition period from   _____________to__________



Commission file number 33-65728



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)

CHILE

(Jurisdiction of incorporation or organization)



El Trovador 4285, 6th Floor,
Santiago, Chile +56 2 2425-2000

(Address of principal executive offices)



Gerardo Illanes +56 2 2425-2485 gerardo.illanes@sqm.comEl Trovador 4285, 6th Floor, Santiago, Chile
(Name, Telephone, E-mail and/or Facsimile Number and Address of Company Contact Person)



Securities registered or to be registered
pursuant to Section 12(b) of the Act.

|Title of each class                                                                            | Name of each exchange on which registered
|---------------------------------------------------------------------------------------------- | -----------------------------------------
|Series B shares, in the form of American Depositary Shares eachrepresenting one Series B share | New York Stock Exchange                  

Securities registered or to be registered
pursuant to Section 12(g) of the Act.

NONE



Securities for which there is a reporting
obligation pursuant to Section 15(d) of the Act.

NONE



Indicate the number of outstanding shares
of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.

|Series A shares | 142,819,552
|--------------- | -----------
|Series B shares | 120,376,972



Indicate by check mark if the registrant
is a well-known seasoned issuer, as defined in rule 405 of the Securities Act:  x YES  ̈ NO

If this report is an annual or transition
report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities
Exchange act of 1934:   ̈ YES x NO

Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. x YES  ̈ NO

Indicate by check mark whether the registrant
has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted
and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files).  ̈YES  ̈ NO

Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, or a non accelerated filer. See definition of “accelerated filer and
large accelerated filer” in rule 12b-2 of the Exchange Act.

x Large
accelerated filer     ̈  Accelerated filer     ̈  Non-
accelerated filer

Indicate by check mark which basis of accounting
the registrant has used to prepare the financial statements included in this filing:

 ̈ U.S.
GAAP TInternational Financial Reporting Standards as issued by the International
Accounting Standards Board  ̈ Other

If “Other” has been checked
in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

Indicate by check mark which financial
statement item the registrant has elected to follow.  ̈ Item 17 x  Item 18

If this is an annual report, indicate by
check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):    ̈ YES x NO











TABLE OF CONTENTS



|                                                          |                                                                              | Page
|--------------------------------------------------------- | ---------------------------------------------------------------------------- | ----
|                                                          |                                                                              |     
|PRESENTATION OF INFORMATION                               | ii                                                                          
|GLOSSARY                                                  | ii                                                                          
|CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS | v                                                                           
|                                                          |                                                                              |     
|PART I                                                    |                                                                              | 1   
|                                                          |                                                                              |     
|ITEM 1.                                                   | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS                        | 1   
|ITEM 2.                                                   | OFFER STATISTICS AND EXPECTED TIMETABLE                                      | 1   
|ITEM 3.                                                   | KEY INFORMATION                                                              | 1   
|ITEM 4.                                                   | INFORMATION ON THE COMPANY                                                   | 24  
|ITEM 5.                                                   | OPERATING AND FINANCIAL REVIEW AND PROSPECTS                                 | 70  
|ITEM 6.                                                   | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES                                   | 88  
|ITEM 7.                                                   | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS                            | 102 
|ITEM 8.                                                   | FINANCIAL INFORMATION                                                        | 104 
|ITEM 9.                                                   | THE OFFER AND LISTING                                                        | 110 
|ITEM 10.                                                  | ADDITIONAL INFORMATION                                                       | 112 
|ITEM 11.                                                  | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                   | 126 
|ITEM 12.                                                  | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES                       | 127 
|                                                          |                                                                              |     
|PART II                                                   |                                                                              | 129 
|                                                          |                                                                              |     
|ITEM 13.                                                  | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES                              | 129 
|ITEM 14.                                                  | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS | 129 
|ITEM 15.                                                  | CONTROLS AND PROCEDURES                                                      | 129 
|ITEM 16.                                                  | RESERVED                                                                     | 130 
|ITEM 16.A                                                 | AUDIT COMMITTEE FINANCIAL  EXPERT                                            | 130 
|ITEM 16.B                                                 | CODE OF ETHICS                                                               | 131 
|ITEM 16.C                                                 | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                       | 131 
|ITEM 16.D                                                 | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES                   | 132 
|ITEM 16.E                                                 | PURCHASES OF EQUITY SECURITIES BY THE ISSUERS AND AFFILIATED PURCHASERS      | 132 
|ITEM 16.F                                                 | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT                                 | 132 
|ITEM 16.G                                                 | CORPORATE GOVERNANCE                                                         | 132 
|ITEM 16.H                                                 | MINE SAFETY AND DISCLOSURE                                                   | 132 
|                                                          |                                                                              |     
|PART III                                                  |                                                                              | 133 
|                                                          |                                                                              |     
|ITEM 17.                                                  | FINANCIAL STATEMENTS                                                         | 133 
|ITEM 18.                                                  | FINANCIAL STATEMENTS                                                         | 133 
|ITEM 19.                                                  | EXHIBITS                                                                     | 133 
|SIGNATURES                                                | 134                                                                         
|                                                          |                                                                             
|CONSOLIDATED FINANCIAL STATEMENTS                         | F-3                                                                         
|EXHIBIT 1.1                                               |                                                                             
|EXHIBIT 8.1                                               |                                                                             
|EXHIBIT 12.1                                              |                                                                             
|EXHIBIT 12.2                                              |                                                                             
|EXHIBIT 13.1                                              |                                                                             
|EXHIBIT 13.2                                              |                                                                             
|EXHIBIT 23.1                                              |                                                                             
|EXHIBIT 23.2                                              |                                                                             
|EXHIBIT 23.3                                              |                                                                             
|EXHIBIT 99.1                                              |                                                                             
|EXHIBIT 99.2                                              |                                                                             
|EXHIBIT 99.3                                              |                                                                             



i







PRESENTATION OF INFORMATION



In this Annual Report on Form 20-F, except
as otherwise provided or unless the context requires otherwise, all references to “we,” “us,”
“Company” or “SQM” are to Sociedad Química y Minera de Chile S.A., an open stock
corporation (sociedad anónima abierta) organized under the laws of the Republic of Chile, and its consolidated subsidiaries.



All references to “$,” “US$,”
“U.S. dollars,” “USD” and “dollars” are to United States dollars, references
to “pesos,” “CLP” and “Ch$” are to Chilean pesos, references to ThUS$
are to thousands of United States dollars, references to ThCh$ are to thousands of Chilean pesos and references to “UF”
are to Unidades de Fomento. The UF is an inflation-indexed, peso-denominated unit that is linked to, and adjusted daily
to reflect changes in, the previous month’s Chilean consumer price index. As of December 31, 2014, UF 1.00 was equivalent
to US$40.59 and Ch$24,627.10 according to the Chilean Central Bank (Banco Central de Chile). As of May 11, 2015, UF 1.00
was equivalent to US$40.88 and Ch$24,808.81.



The Republic of Chile is governed by a
democratic government, organized in fourteen regions plus the Metropolitan Region (surrounding and including Santiago, the capital
of Chile). Our production operations are concentrated in northern Chile, specifically in the Tarapacá Region and in the
Antofagasta Region.



Our fiscal year ends on December 31. As
December 31 is a public holiday in Chile, certain financial information is reflected as of December 30, 2014.



We use the metric system of weights and
measures in calculating our operating and other data. The United States equivalent units of the most common metric units used
by us are as shown below:



1 kilometer equals approximately
0.6214 miles



1 meter equals approximately
3.2808 feet



1 centimeter equals approximately
0.3937 inches



1 hectare equals approximately
2.4710 acres



1 metric ton (“MT”)
equals 1,000 kilograms or approximately 2,205 pounds.



We are not aware of any independent, authoritative
source of information regarding sizes, growth rates or market shares for most of our markets. Accordingly, the market size, market
growth rate and market share estimates contained herein have been developed by us using internal and external sources and reflect
our best current estimates. These estimates have not been confirmed by independent sources.



Percentages and certain amounts contained
herein have been rounded for ease of presentation. Any discrepancies in any figure between totals and the sums of the amounts
presented are due to rounding.



GLOSSARY



“assay values”
Chemical result or mineral component amount contained by the sample.



“average
global metallurgical recoveries” Percentage that measures the metallurgical treatment effectiveness based on the quantitative
relationship between the initial product contained in the mine-extracted material and the final product produced in the plant.



“average
mining exploitation factor” Index or ratio that measures the mineral exploitation effectiveness, based on the quantitative
relationship between (in-situ mineral minus exploitation losses) / in-situ mineral.



“CAGR”
Compound annual growth rate, the year over year growth rate of an investment over a specified period of time.



“cash
and cash equivalents”The International Accounting Standards Board (IASB) defines cash and cash equivalents as
short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value.



“Controller
Group”* A person or company or group of persons or companies that according to Chilean law, have executed a joint performance
agreement, that have a direct or indirect share in a company’s ownership and have the power to influence the decisions of
the company’s management.



ii







“Corfo”
Production Development Corporation (Corporación de Fomento de la Producción), formed in 1939, a national
organization in charge of promoting Chile’s manufacturing productivity and commercial development.



“cut-off
grade” The minimal assay value or chemical amount of some mineral component above which exploitation is economical.



“dilution”
Loss of mineral grade because of contamination with barren material (or waste) incorporated in some exploited ore mineral.



“exploitation
losses” Amounts of ore mineral that have not been extracted in accordance with exploitation designs.



“fertigation”
The process by which plant nutrients are applied to the ground using an irrigation system.



“geostatistical
analysis” Statistical tools applied to mining planning, geology and geochemical data that allow estimation of averages,
grades and quantities of mineral resources and reserves.



“heap
leaching” A process whereby minerals are leached from a heap, or pad, of ROM (run of mine) ore by leaching solutions
percolating down through the heap and collected from a sloping, impermeable liner below the pad.



“horizontal
layering” Rock mass (stratiform seam) with generally uniform thickness that conform to the sedimentary fields (mineralized
and horizontal rock in these cases).



“hypothetical
resources” Mineral resources that have limited geochemical reconnaissance, based mainly on geological data and samples
assay values spaced between 500–1000 meters.



“Indicated
Mineral Resource” See “Resources—Indicated Mineral Resource.”



“Inferred
Mineral Resource” See “Resources—Inferred Mineral Resource.”



“industrial
crops” Refers to crops that require processing after harvest in order to be ready for consumption or sale. Tobacco,
tea and seed crops are examples of industrial crops.



“Kriging
Method”A technique used to estimate ore reserves, in which the spatial distribution of continuous geophysical variables
is estimated using control points where values are known.



“LIBOR”London Inter Bank Offered Rate.



“limited
reconnaissance” Low or limited level of geological knowledge.



“Measured
Mineral Resource” See “Resources—Measured Mineral Resource.”



“metallurgical
treatment” A set of chemical and physical processes applied to the caliche ore and to the salar brines to extract their
useful minerals (or metals).



“ore depth”
Depth of the mineral that may be economically exploited.



“ore type”
Main mineral having economic value contained in the caliche ore (sodium nitrate or iodine).



“ore”
A mineral or rock from which a substance having economic value may be extracted.



“Probable
Mineral Reserve” See “Reserves—Probable Mineral Reserve.”



“Proven
Mineral Reserve” See “Reserves—Proven Mineral Reserve.”



“Reserves—Probable
Mineral Reserve”** The economically mineable part of an Indicated Mineral Resource and, in some circumstances, Measured
Mineral Resource. The calculation of the reserves includes diluting of materials and allowances for losses which may occur when
the material is mined. Appropriate assessments, which may include feasibility studies, have been carried out and include consideration
of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental
factors. These assessments demonstrate at the time of reporting that extraction is reasonably justified. A Probable Mineral Reserve
has a lower level of confidence than a Proved Mineral Reserve.



“Reserves—Proven
Mineral Reserve” ** The economically mineable part of a Measured Mineral Resource. The calculation of the reserves includes
diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments, which may include
feasibility studies, have been carried out and include consideration of and modification by realistically assumed mining, metallurgical,
economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting
that extraction is reasonably justified.



iii







“Resources—Indicated
Mineral Resource” ** The part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade
and mineral content can be estimated with a reasonable level of confidence. The calculation is based on detailed exploration,
sampling and testing information gathered through appropriate sampling techniques from locations such as outcrops, trenches and
exploratory drill holes. The locations are too widely or inappropriately spaced to confirm geological continuity and/or grade
continuity but are spaced closely enough for continuity to be assumed. An Indicated Mineral Resource has a lower level of confidence
than that applying to a Measured Mineral Resource, but has a higher level of confidence than that applying to an Inferred Mineral
Resource.



A deposit
may be classified as an Indicated Mineral Resource when the nature, quality, amount and distribution of data are such as to allow
the Competent Person, as that term is defined under Chilean Law Number 20,235, determining the Mineral Resource to confidently
interpret the geological framework and to assume continuity of mineralization. Confidence in the estimate is sufficient to allow
the appropriate application of technical and economic parameters and to enable an evaluation of economic viability.



“Resources—Inferred
Mineral Resource” ** The part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with
a low level of confidence, by inferring them on the basis of geological evidence and assumed but not verified geological and/or
grade continuity. The estimate is based on information gathered through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes, and this information is of limited or uncertain quality and/or reliability. An Inferred
Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource.



“Resources—Measured
Mineral Resource” ** The part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade
and mineral content can be estimated with a high level of confidence. The estimate is based on detailed exploration, sampling
and testing information gathered through appropriate sampling techniques from locations such as outcrops, trenches and exploratory
drill holes. The locations are spaced closely enough to confirm geological and/or grade continuity.



A deposit
may be classified as a Measured Mineral Resource when the nature, quality, amount and distribution of data are such as to leave
no reasonable doubt, in the opinion of the Competent Person, as that term is defined under Chilean Law Number 20,235, determining
the Mineral Resource, that the tonnage and grade of the deposit can be estimated within close limits and that any variation from
the estimate would not significantly affect potential economic viability. This category requires a high level of confidence in,
and understanding of, the geology and controls of the mineral deposit. Confidence in the estimate is sufficient to allow the appropriate
application of technical and economic parameters and to enable an evaluation of economic viability.



“Resources—Mineral
Resource” ** A concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the
Earth’s crust in such form or quantity and of such grade or quality that it has reasonable prospects for economically viable
extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated
or interpreted from specific geological, metallurgical and technological evidence.



“solar
salts”A mixture of 60% sodium nitrate and 40% potassium nitrate used in the storage of thermo-energy.



“vat
leaching” A process whereby minerals are extracted from crushed ore by placing the ore in large vats containing leaching
solutions.



“waste”
Rock or mineral which is not economical for metallurgical treatment.



“Weighted
average age” The sum of the product of the age of each fixed asset at a given facility and its current gross book value
as of December 31, 2014 divided by the total gross book value of the Company’s fixed assets at such facility as of December
31, 2014.



| | * | The definition of a Controller Group
                                         that has been provided is the one that applies to the Company. Chilean law provides for
                                         a broader definition of a Controller Group.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ** | The definitions we use for resources
                                         and reserves are based on those provided by the “Instituto de Ingenieros de
                                         Minas de Chile” (Chilean Institute of Mining Engineers).
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



iv







CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING STATEMENTS



This Form 20-F contains statements that
are or may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These
statements are not based on historical facts and reflect our expectations for future events and results. Words such as “believe,”
“expect,” “predict,” “anticipate,” “intend,” “estimate,” “should,”
“may,” “likely,” “could” or similar expressions may identify forward-looking information.
These statements appear throughout this Form 20-F and include statements regarding the intent, belief or current expectations
of the Company and its management, including but not limited to any statements concerning:



| | · | trends
                                         affecting the prices and volumes of the products we sell;
| | - | ---------------------------------------------------------------------------------------------------------

| | · | level
                                         of reserves, quality of the ore and brines, and production levels and yields;
| | - | ----------------------------------------------------------------------------------------------------------------------------

| | · | our
                                         capital investment program and development of new products;
| | - | --------------------------------------------------------------------------------------------------------

| | · | the
                                         future impact of competition; and
| | - | ------------------------------------------------------------------------------

| | · | regulatory
                                         changes.
| | - | ------------------------------------------------------------



Such forward-looking statements are not
guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those described
in such forward-looking statements included in this Form 20-F, including, without limitation, the information under Item 4. Information
on the Company, Item Number 5. Operating and Financial Review and Prospects and Item 11. Quantitative and Qualitative Disclosures
About Market Risk. Factors that could cause actual results to differ materially include, but are not limited to:



| | · | volatility
                                         of global prices for our products;
| | - | --------------------------------------------------------------------------------------

| | · | political,
                                         economic and demographic developments in certain emerging market countries, where we
                                         conduct a large portion of our business;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | changes
                                         in production capacities;
| | - | --------------------------------------------------------------------------

| | · | the
                                         nature and extent of future competition in our principal markets;
| | - | --------------------------------------------------------------------------------------------------------------

| | · | our
                                         ability to implement our capital expenditures program, including our ability to obtain
                                         financing when required;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | changes
                                         in raw material and energy prices;
| | - | -----------------------------------------------------------------------------------

| | · | currency
                                         and interest rate fluctuations;
| | - | ---------------------------------------------------------------------------------

| | · | risks
                                         relating to the estimation of our reserves;
| | - | ------------------------------------------------------------------------------------------

| | · | changes
                                         in quality standards or technology applications;
| | - | -------------------------------------------------------------------------------------------------

| | · | adverse
                                         legal, regulatory or labor disputes or proceedings;
| | - | ----------------------------------------------------------------------------------------------------

| | · | changes
                                         in governmental regulations; and
| | - | ---------------------------------------------------------------------------------

| | · | additional
                                         factors discussed below under Item 3. Key Information—Risk Factors.
| | - | -----------------------------------------------------------------------------------------------------------------------



v







PART I



ITEM 1.	IDENTITY OF DIRECTORS,
SENIOR MANAGEMENT AND ADVISERS



Not Applicable.



ITEM 2.	OFFER STATISTICS AND EXPECTED
TIMETABLE



Not Applicable.



ITEM 3.	KEY INFORMATION



3.A. Selected
Financial Data

The following table presents selected
financial data as of December 31, 2014 and the previous four years. The selected financial data should be read in conjunction
with the Consolidated Financial Statements and notes thereto, “Item 5. Operating and Financial Review and Prospects”
and other financial information included herein.



Since January 1, 2010, the Company’s
Consolidated Financial Statements have been prepared in accordance with the International Financial Reporting Standards as published
by the International Accounting Standards Board (IASB).





1









|                                                                                     |  | As of and for the year ended December 31, |         
|------------------------------------------------------------------------------------ |  | ----------------------------------------- | --------
|(in millions of U.S. dollars)(1)                                                     |  | 2014                                      |         
|                                                                                     |  |                                           |         
|Statement of income:                                                                 |  |                                           |         
|Revenues                                                                             |  |                                           | 2,014.2 
|Cost of sales                                                                        |  |                                           | (1,431.2
|                                                                                     |  |                                           |         
|Gross profit                                                                         |  |                                           | 583.0   
|                                                                                     |  |                                           |         
|Other income                                                                         |  |                                           | 24.1    
|Administrative expenses                                                              |  |                                           | (96.5   
|Other expenses(2)                                                                    |  |                                           | (64.3   
|Other gains (losses)                                                                 |  |                                           | 4.4     
|Finance income                                                                       |  |                                           | 16.1    
|Finance expenses                                                                     |  |                                           | (63.4   
|Equity income of associates and joint ventures accounted for using the equity method |  |                                           | 18.1    
|Foreign currency exchange differences                                                |  |                                           | (16.5   
|                                                                                     |  |                                           |         
|Income before income tax expense(2)                                                  |  |                                           | 405.0   





2











|                                                    |  | As of and for the year ended December 31,
|--------------------------------------------------- |  | -----------------------------------------
|(in millions of U.S. dollars)(1)                    |  | 2014                                     
|                                                    |  |                                          
|Income
    tax expense (3)                          |  |                                          
|                                                    |  |                                          
|Profit for the year(2)(3)                           |  |                                          
|Profit attributable to:                             |  |                                          
|Controlling interests (2)(3)                        |  |                                          
|Non-controlling interests                           |  |                                          
|Profit for the year (2)(3)                          |  |                                          
|                                                    |  |                                          
|Basic earnings per share(4)                         |  |                                          
|Basic earnings per ADS(5)(6)                        |  |                                          
|Dividends per share(6)(7)(8)                        |  |                                          
|Dividends per ADS(7)(8)                             |  |                                          
|Weighted average(4)(5)shares
    outstanding (000s) |  |                                          







3







(1) Except
shares outstanding, dividend and net earnings per share and net earnings per ADS.





(2) The
2014 figure includes provisions of approximately US$7 million corresponding to payments made in 2015 to the Chilean Internal Revenue
Service (Servicio de Impuestos Internosor “SII”) for expenses that may not have qualified as tax expenses under
the Chilean tax code. Such payments were made after March 3, 2015, the date on which the Company filed its statutory consolidated
financial statements filed with the Chilean Superintendence of Securities and Insurance (Superintendencia de Valores y Segurosor “SVS”). Therefore, this amount was not reflected in these statutory consolidated financial statements. For more
information, see “Item 3D. Risk Factors—Risks Relating to our Business—We could be subject to numerous risks
as a result of ongoing investigations by the Chilean Internal Revenue Service and the Chilean Public Prosecutor in relation to
certain payments of invoices made by SQM between the tax years 2009 and 2014.”





(3)	In accordance with IAS 12, the effects generated by the change in the income tax rate approved
by Law No. 20.780 on income and deferred taxes have been applied to the income statement. For purposes of the Company’s statutory
consolidated financial statements filed with the SVS, in accordance with the instructions issued by the SVS in its circular 856
of October 17, 2014, the effects generated by the change in the income tax rate were accounted for as retained earnings. The amount
charged to equity was US$52.3 million, thereby giving rise to a difference of US$52.3 million in profit for the year and income
tax expense as presented in the Company’s Audited Consolidated Financial Statements and as presented in its statutory consolidated
financial statements filed with the SVS. Subsequent amendments will be recognized in profit or loss for the period in the Company’s
statutory consolidated financial statements in accordance with IAS 12.





(4) The
Company has not conducted any type of transaction that would give rise to a potential dilutive effect on its earnings per share.
The total number of outstanding shares as of each period end is the same as the weighted average shares outstanding.



(5) The
calculation of earnings per ADSs and dividends per ADS is based on the ratio of 1:1.



(6) Dividends
per share are calculated based on 263,196,524 shares for the periods ended December 31, 2014, 2013, 2012, 2011 and 2010.



(7) Dividends
are paid from net income as determined in accordance with SVS regulations. See “Item 8.A. Dividend Policy.” For dividends
in Ch$, see “Item 8.A. Dividend Policy—Dividends.”



(8) Dividend
amount paid per calendar year to shareholders of the Company. See “Item 8.A. Dividend Policy.”







4







|                              |  | As of and for the year ended December 31, |        
|----------------------------- |  | ----------------------------------------- | -------
|(in millions of U.S. dollars) |  | 2014                                      |        
|Balance Sheet Data:           |  |                                           |        
|Total assets                  |  |                                           | 4,663.7
|Total liabilities             |  |                                           | 2,371.1



5







|                                                |  | As of and for the year ended December 31, |        
|----------------------------------------------- |  | ----------------------------------------- | -------
|(in millions of U.S. dollars)                   |  | 2014                                      |        
|Total equity                                    |  |                                           | 2,292.5
|Equity attributable to controlling interests    |  |                                           | 2,232.6
|Equity attributable to non-controlling interest |  |                                           | 59.9   
|Capital stock                                   |  |                                           | 477.4  





6







EXCHANGE RATES



Chile has two currency markets, the Formal
Exchange Market (Mercado Cambiario Formal) in which we conduct our transactions, and the Informal Exchange Market (Mercado
Cambiario Informal). The Formal Exchange Market comprises banks and other entities authorized by the Chilean Central Bank.
The Informal Exchange Market comprises entities that are not expressly authorized to operate in the Formal Exchange Market, such
as certain foreign exchange houses and travel agencies, among others. The Chilean Central Bank is empowered to determine that
certain purchases and sales of foreign currencies be carried out on the Formal Exchange Market.



Both the Formal Exchange Market and the
Informal Exchange Market are driven by free market forces. Current regulations require that the Chilean Central Bank be informed
of certain transactions and that these transactions be effected through the Formal Exchange Market.



The Observed Exchange Rate (dólar
observado), which is reported by the Chilean Central Bank and published daily in the Chilean newspapers, is computed by taking
the weighted average of the previous business day’s transactions on the Formal Exchange Market. The Chilean Central Bank
has the power to intervene by buying or selling foreign currency on the Formal Exchange Market to attempt to maintain the Observed
Exchange Rate within a desired range. During the past few years the Chilean Central Bank has intervened to attempt to maintain
the Observed Exchange Rate within a certain range only under special circumstances. Although the Chilean Central Bank is not required
to purchase or sell U.S. dollars at any specific exchange rate, it generally uses spot rates for its transactions. Other banks
generally carry out authorized transactions at spot rates as well.



The Informal Exchange Market reflects
transactions carried out at an informal exchange rate (the “Informal Exchange Rate”). There are no limits imposed
on the extent to which the Informal Exchange Rate can fluctuate above or below the Observed Exchange Rate. In recent years, the
variations between the Observed Exchange Rate and the Informal Exchange Rate have not been significant.



The Federal Reserve Bank of New York does
not report a noon buying rate for Chilean pesos.



The U.S. dollar is our functional currency.
However, unless otherwise indicated, any amounts translated into U.S. dollars from Chilean pesos were translated using the Observed
Exchange Rate for December 31, 2014, which was Ch$606.75 per US$1.00. As of May 11, 2015 the Observed Exchange Rate was US$1.00
per Ch$606.92.



7







|Observed Exchange Rate(1) 
|--------------------------
|                          
|                          
|                          
|Year                      
|                          
|2010                      
|2011                      
|2012                      
|2013                      
|2014                      
|                          
|Last six months           
|2014                      
|November                  
|December                  
|2015                      
|January                   
|February                  
|March                     
|April                     
|May (through May 11, 2015)



Source: Central
Bank of Chile



| | (1) | Reflects high and low rates on a
                                         day-to-day basis, for each period reported.
| | --- | ---------------------------------------------------------------------------------------------------------------------



| | (2) | The monthly average rate is calculated
                                         on a day-to-day basis for each month reported. The yearly average rate is calculated
                                         on a month-to-month basis for each year reported.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (3) | Based on transactions observed during
                                         the last day of the period.
| | --- | ----------------------------------------------------------------------------------------------------------



3.B. Capitalization
and Indebtedness

Not applicable.



3.C. Reasons
for the Offer and Use of Proceeds

Not applicable.



3.D. Risk
Factors



Our operations are subject to certain
risk factors that may affect SQM’s business, financial condition, cash flows, or results of operations. In addition to other
information contained in this Annual Report on Form 20-F, you should carefully consider the risks described below. These risks
are not the only ones we face. Additional risks not currently known to us or that are known but we currently believe are not significant
may also affect our business operations. Our business, financial condition, cash flows or results of operations could be materially
affected by any of these risks.



Risks Relating to our Business





We could be subject to numerous
risks as a result of ongoing investigations by the Chilean Internal Revenue Service and the Chilean Public Prosecutor in relation
to certain payments made by SQM between the tax years 2009 and 2014



The SII has been conducting tax investigations related to the payment of invoices by companies, including
SQM, for services that may not have been properly supported. The Chilean Public Prosecutor (Ministerio Público) has
been conducting related inquiries to determine whether such payments may be linked with alleged violations of political contribution
laws involving a variety of Chilean companies, including SQM, and government officials.



8









On February 26, 2015, SQM’s Board
of Directors resolved to establish an ad-hoc committee of the Board of Directors (the “ad-hoc Committee”) authorized
to conduct an internal investigation relating to the issues referred to in the above paragraph and to retain such independent external
advice as it deemed appropriate. The original members of the ad-hoc Committee were José María Eyzaguirre B., Juan
Antonio Guzmán M. and Wolf von Appen B.



The ad-hoc Committee has engaged its own
lawyers from Chile and the United States and forensic accountants from the United States to assist as it proceeds with its internal
review.



On March 12, 2015, José María
Eyzaguirre B. resigned from the ad-hoc Committee and his position was subsequently filled by Hernán Büchi B.



On March 16, 2015, the Board of Directors decided to terminate the employment contract of the Company’s
former CEO, Patricio Contesse G. This followed his failure to cooperate with the ad-hoc Committee’s investigation.



On March 17, 2015, three members of the
Board of Directors resigned, all of whom had been nominated by Potash Corp., one of SQM’s two principal shareholder groups.
Potash Corp. issued a press release stating that the directors resigned because of their concern that they could not ensure that
the Company was conducting an appropriate investigation and collaborating effectively with the Public Prosecutor.



On March 20, 2015, the Company identified to the SII approximately US$11 million in payments of invoices
that may not have been properly supported by services rendered and therefore may not qualify as tax expenses under the Chilean
tax code. These payments originated from the office of the former CEO during the six-year tax period from 2009 to 2014. The statute
of limitations under Chilean law for tax claims is up to six years, during which period the former CEO had an annual discretionary
budget covering the Company and its subsidiaries of approximately US$6 million.



On March 23, 2015, the SII, based on the Income
Tax Law (Ley de Impuesto a La Renta) filed a criminal claim against the Company’s former CEO and current CEO and CFO
in their capacities as the Company’s tax representatives relating to the US$11 million in payments referred to above. This
and subsequent related claims filed by the SII are subject to review by the Public Prosecutor in order to determine whether to
pursue charges against any of the parties in their personal capacities.



On March 30, 2015, the Company submitted amendments to its tax returns for the 2009 to 2014 tax years
and has paid taxes and interest relating to such amended returns totaling approximately US$7 million. The aggregate amount was
approximately evenly distributed over the six-year period, but as the amounts were inconsequential in each individual year, the
Company recorded a provision for the aggregate amount in the “other expenses” line-item of the income statement for
the year ended December 31, 2014.



On March 31, 2015, the SVS filed an administrative
claim against five current or former members of the Board of Directors, alleging that they did not release information in a timely
manner relating to the payments that are subject to the tax claim referred to above.



On April 24, 2015, the Company announced that it had identified up to an additional US$2 million in payments
by its subsidiaries during the same six-year tax period that were authorized by the former CEO and that also may have been insufficiently
supported. On the same date, new members were elected to the Board of Directors at the Annual General Shareholders’ Meeting,
including three new members that were nominated by Potash Corp., and the ad-hoc Committee was subsequently reconstituted by Board
of Directors members Robert A. Kirkpatrick, Wolf von Appen B. and Edward J. Waitzer.





On April 30, 2015, the Public Prosecutor,
after reviewing the claims filed by the SII, informed the Company’s former CEO that it was formally investigating allegations
that he approved the payment of the invoices that were not properly supported by services rendered and in connection therewith
made intentionally false or incomplete declarations or used fraudulent procedures designed to conceal or disguise the true amount
of transactions or to circumvent taxes. If, as a result of the formal investigation, the former CEO is charged and finally adjudicated
responsible, the Company may also be subject to the payment of a fine by the Chilean Criminal Court (Octavo Tribunal
de Juicio Oral en lo Penal de Santiago) totaling 50% to 300% of the tax paid. The Company estimates that no provision
is needed at this stage.







9







On May 11, 2015, the SII filed an additional criminal claim against the former CEO and the current CEO
and CFO in their capacities as the Company’s tax representatives alleging violations of the Chilean Inheritance and Donations
Law (Ley sobre Impuesto a Las Herencias, Asignaciones y Donaciones). The claim states that the Company paid two invoices
in 2009 and 2010 totaling approximately US$175,000 that are alleged to have been improperly supported. The claim states that these
payments should have been classified as donations, and appropriate taxes should have been paid. These payments were accounted for
in the amended tax returns filed with the SII on March 30, 2015. This claim is subject to review by the Public Prosecutor in order
to determine whether to pursue charges against any of the parties in their personal capacities.



Class action complaints have been filed in
the United States against the Company, our former CEO and current CEO and CFO, alleging violations of U.S. securities laws based
on the failure to timely disclose matters related to the subject matter of the various Chilean investigations.



The investigation and the inquiries by the Chilean regulatory authorities have not been completed. We
cannot predict the outcome or the duration of these investigations. We could be subject to civil, criminal or regulatory proceedings
in Chile and we could be subject to civil, criminal or regulatory proceedings outside of Chile, including for violation of U.S.
securities or anti-corruption laws. We have been in communications with our regulators in Chile and the United States. Responding
to our regulator’s inquiries and any future civil, criminal or regulatory inquiries or proceedings could divert our management’s
attention from day-to-day operations. Additionally, expenses that may arise from responding to such inquiries or proceedings, our
review of responsive materials, any related litigation or other associated activities may be significant. Current and former employees,
officers and directors may seek indemnification, advancement or reimbursement of expenses from us, including attorneys’ fees,
with respect to the current inquiry or future proceedings related to this matter. We may be required to pay material damages or
penalties or have other remedies imposed upon us. If, as a result of further investigations, it is determined that our financial
statements were materially incorrect, we could be required to restate financial information for prior reporting periods. The occurrence
of any of the foregoing could materially and adversely affect our business, financial condition, cash flows, results of operations
and the prices of our securities. However, the Company’s management, based on its understanding of the investigation to date,
does not believe there will be any additional material impact to the Company’s business, financial condition, cash flows
or results of operations.





For more information, see “Item 8.A.
Legal Proceedings.”



Arbitration proceedings under the
Lease Agreement for the Salar de Atacama, if determined adversely to us, would materially adversely affect our business and operations



Our subsidiary SQM Salar holds exclusive
and temporary exploitation rights to mineral resources in 81,920 hectares in the Salar de Atacama pursuant to a 1993 lease agreement
between SQM Salar and Corporación de Fomento de la Producción (“Corfo”), a Chilean government entity
(the “Lease Agreement”). The mining exploitation concessions related to such rights are owned by Corfo and leased to
SQM Salar in exchange for quarterly lease payments to Corfo based on specified percentages associated to the value of the products
resulting from the minerals extracted from such concessions. For the year ended December 31, 2014, revenue related to products
originating from the Salar de Atacama represented 39% of our consolidated revenues, which corresponded to revenues from our potassium
product line and our lithium and derivatives product line for the period. All of our products originating from the Salar de Atacama
are derived from our extraction operations under the Lease Agreement.





10









In May 2014, Corfo initiated an arbitration
proceeding against SQM Salar alleging (i) SQM Salar had incorrectly applied the formulas to determine lease payments resulting
in an underpayment to Corfo of at least US$8.9 million for 2009 through 2013 and (ii) SQM Salar had not complied with its obligation
to protect the mining rights of Corfo by failing to place markers to delineate property lines. Based on the alleged breaches of
the Lease Agreement, Corfo sought (i) at least US$8.9 million plus any other amount that may be due in respect of periods after
2013, (ii) early termination of the Lease Agreement, (iii) lease payments that would have been paid through 2030 as compensation
for the early termination of the Lease Agreement and (iv) punitive damages (daño moral) equal to 30% of the contractual
damages awarded. SQM Salar contested the claim, asserting that both parties have applied formulas for the calculation and payment
of lease payments for more than 20 years without conflict, in accordance with the terms of the Lease Agreement and their mutual
understanding of the agreements by the parties during the term of the Lease Agreement. SQM Salar also asserted that the alleged
breaches would be technical breaches and that Corfo may terminate the Lease Agreement solely for a material breach. SQM Salar in
consultation with external counsel believes that it is likely it will prevail in the arbitration proceeding. However, an adverse
ruling awarding damages sought by Corfo or permitting early termination of the Lease Agreement would have a material adverse effect
on our business, financial condition, cash flows and results of operations. We cannot assure you that Corfo will not use this arbitration
proceeding to seek to renegotiate the terms of the Lease Agreement in a manner that is not favorable to SQM Salar. Although the
parties are currently discussing potential resolutions, we cannot assure you such discussions will be successful or that Corfo
will not take other actions in the future in relation to the Lease Agreement that are contrary to our interests.



Our market reputation, commercial
dealings or the price of our securities could be adversely affected by the negative outcome of certain proceedings against certain
recent members of our Board and certain other named defendants



On September 10, 2013, the SVS issued a
press release disclosing it had instituted certain administrative proceedings (the “Cascading Companies Proceedings”)
against (i) Mr. Julio Ponce Lerou (who was the Chairman of the Board and a director of the Company until April 24, 2015), (ii)
Mr. Patricio Contesse Fica, who was a director of the Company until April 24, 2015 and is the son of Mr. Patricio Contesse González
(who was the Company’s CEO until March 16, 2015), and (iii) other named defendants. The Company has been informed that Mr.
Ponce and related persons beneficially owned 29.94% of SQM’s total shares as of December 31, 2014. See “Item 6.E. Share
Ownership.” The SVS alleged breaches of Chilean corporate and securities laws in connection with acts performed by entities
with direct or indirect share ownership interests in SQM (the “Cascading Companies”). The allegations made in connection
with the Cascading Companies Proceedings do not relate to any acts or omissions of the Company or any of its directors, officers
or employees in their capacities as such.



In connection with the Cascading Companies
Proceedings, the SVS alleged the existence of a scheme involving the named defendants whereby, through a number of transactions
occurring between 2009 and 2011, the Cascading Companies allegedly sold securities of various companies, including securities of
SQM, at below-market prices to companies related to Mr. Ponce and other named defendants. These companies allegedly subsequently
sold such securities after a lapse of time, in most cases back to the Cascading Companies, at prices higher than the purchase price.
The SVS alleged violation by the defendants of a number of Chilean corporate and securities laws in furtherance of the alleged
scheme.





11









On January 31, 2014, the SVS added a number
of Chilean financial institutions and asset managers, and certain of their controlling persons, executives or other principals,
as named defendants to the Cascading Companies Proceedings. On September 2, 2014, the SVS issued a decision imposing an aggregate
fine against all of the defendants of UF 4,0110,000 (approximately US$162.8 million as of December 31, 2014), including a fine
against Mr. Ponce of UF 1,700,000 (approximately US$69.0 million as of December 31, 2014) and a fine against Mr. Contesse Fica
of UF 60,000 (approximately US$2.4 million as of December 31, 2014). The defendants are currently challenging the SVS administrative
decision before a Chilean Civil Court.



The High Complexity Crimes Unit (Unidad
de Delitos de Alta Complejidad) of the Metropolitan District Central Northern Attorney’s Office (Fiscalía Metropolitana
Centro Norte) is also investigating various criminal complaints filed against various parties to the Cascading Companies Proceedings.
In addition, the SII announced an investigation of the transactions alleged to have occurred in the Cascading Companies Proceedings
in order to determine whether the individuals or companies involved violated Chilean tax laws or filed false returns for the purpose
of evading taxes.



If, for any reason, the Company is unable
to differentiate itself from the named defendants, such failure could have a material adverse effect on the Company’s market
reputation and commercial dealings. Furthermore, we cannot assure you that a non-appealable ruling in connection with the current
Cascading Companies Proceedings or the investigations of the High Complexity Crimes Unit or the SII that is adverse to Mr. Ponce
or Mr. Contesse Fica will not have a material adverse effect on our market reputation, commercial dealings and the price of our
securities, or that the Cascading Companies will not sell shares of the Company or vote to increase the dividends we pay to our
shareholders.



We recently identified a material
weakness in our internal controls over payments directed by the office of the former Chief Executive Officer



Our management assessed the effectiveness
of its internal control over financial reporting as of December 31, 2014. The assessment was based on criteria established in the
framework “Internal Controls — Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations
of the Treadway Commission (COSO). The Company’s management has determined that the Company did not maintain effective control
over payments directed by the office of the former CEO. Based on the assessment, our management has concluded that as of December
31, 2014, the Company’s internal control over financial reporting was not effective. See “Item 15. Controls and Procedures—Disclosure
Control and Procedures.”



Although we have initiated steps to remediate
the identified material weakness and enhance our internal controls, any failure to implement and maintain such measures or difficulties
encountered in their implementation could (i) result in a material misstatement in our financial reporting or financial statements
that would not be prevented or detected, (ii) cause us to fail to meet our reporting obligations under applicable securities laws
or (iii) cause investors to lose confidence in our financial reporting or financial statements, the occurrence of any of which
could materially and adversely affect our business, financial condition, cash flows, results of operations and the prices of our
securities.



Volatility of world fertilizer and
chemical prices and changes in production capacities could affect our business, financial condition and results of operations



The prices of our products are determined
principally by world prices, which, in some cases, have been subject to substantial volatility in recent years. World fertilizer
and chemical prices vary depending upon the relationship between supply and demand at any given time. Supply and demand dynamics
for our products are tied to a certain extent to global economic cycles, and have been impacted by circumstances related to such
cycles. Furthermore, the supply of certain fertilizers or chemical products, including certain products that we provide, varies
principally depending on the production of the major producers, (including us) and their respective business strategies.





12









Since 2008, world prices of potassium-based
fertilizers (including some of our specialty plant nutrients and potassium chloride) have fluctuated as a result of the broader
global economic and financial conditions. Although prices of potassium-based fertilizers stabilized in 2009 after the conclusion
of important contract negotiations between major producers and buyers, during the second half of 2013, potassium prices declined
as a result of an unexpected announcement made by the Russian company OAO Uralkali (“Uralkali”) that it was terminating
its participation in Belarus Potash Corporation (“BPC”). As a result of the termination of Uralkali’s participation
in BPC, there was increased price competition in the market. In addition, during the first half of 2014, we observed lower pricing
of contracts between Chinese purchasers and major potash producers, which increased volatility in the price of fertilizers. The
average price for our potassium chloride and potassium sulfate business line was approximately 11% lower in 2014 compared to 2013.
We cannot assure you that potassium-based fertilizer prices and sales volumes will not decline in the future.



Iodine prices followed an upward trend
beginning at the end of 2008 and continuing through 2012, reaching an average price of approximately US$53 per kilogram in 2012,
over 40% higher than average prices in 2011. During 2013, even though iodine demand reached record highs, demand growth softened,
and supply increased, causing a decline in iodine prices. The average price of iodine seen by SQM was approximately US$38 per kilogram
in 2014, approximately 23% less than average prices seen by the Company in 2013. We cannot assure you that iodine prices or sales
volumes will not continue to decline in the future.



As a result of events in global markets
during 2009, demand for lithium carbonate declined, causing a decrease in lithium prices and sales volumes. In September 2009,
we announced a 20% reduction in lithium carbonate and lithium hydroxide prices as a means of stimulating demand. As a result, in
2010 we observed demand recovery in the lithium carbonate market, which continued in 2011 and 2012. In 2013, we continued to see
strong market growth, driven mostly by an increase in demand related to battery use. Nevertheless, demand growth was accompanied
by an increase in supply from existing competitors. In 2014, prices remained at similar levels averaging US$5,235 per metric ton
in 2014 for this business line, which was 4% lower compared to 2013. We cannot assure you that lithium prices and sales volumes
will not decline in the future.



We expect that prices for the products
we manufacture will continue to be influenced, among other things, by worldwide supply and demand and the business strategies of
major producers. Some of the major producers (including us) have increased or have the ability to increase production. As a result,
the prices of our products may be subject to substantial volatility. High volatility or a substantial decline in the prices or
sales volumes of one or more of our products could have a material adverse effect on our business, financial condition and results
of operations.



Our sales to emerging markets and
expansion strategy expose us to risks related to economic conditions and trends in those countries



We sell our products in more than 110 countries
around the world. In 2014, approximately 46% of our sales were made in emerging market countries: 18% in Central and South America
(excluding Chile); 7% in Africa and the Middle East; 11% in Chile and 10% in Asia and Oceania (excluding Australia, Japan, New
Zealand, South Korea and Singapore). We expect to expand our sales in these and other emerging markets in the future. In addition,
we may carry out acquisitions or joint ventures in jurisdictions in which we currently do not operate, relating to any of our businesses
or to new businesses in which we believe we may have sustainable competitive advantages. The results of our operations and our
prospects in other countries in which we establish operations will depend, in part, on the general level of political stability
and economic activity and policies in those countries. Future developments in the political systems or economies of these countries
or the implementation of future governmental policies in those countries, including the imposition of withholding and other taxes,
restrictions on the payment of dividends or repatriation of capital, the imposition of import duties or other restrictions, the
imposition of new environmental regulations or price controls or changes in relevant laws or regulations, could have a material
adverse effect on our business, financial condition and results of operations in those countries.





13







Our inventory levels may increase
because of the global economic slowdown



In general, world economic conditions
can affect our inventory levels. At the end of 2014, our inventory levels were relatively high compared to prior years. Higher
inventories carry a financial risk due to increased need for cash to fund working capital and could imply increased risk of loss
of product. We cannot assure you that inventory levels will not continue to remain high or increase further in the future. These
factors could have a material adverse effect on our business, financial condition and results of operations.



Our level of and exposure to unrecoverable
accounts receivable may significantly increase



Potentially negative effects of adverse
global economic conditions on the financial condition of our customers may include the extension of the payment terms of our accounts
receivable and may increase our exposure to bad debt. While we have implemented certain safeguards, such as using credit insurance,
letters of credit and prepayment for a portion of sales, to minimize this risk, the increase in our accounts receivable coupled
with the financial condition of customers may result in losses that could have a material adverse effect on our business, financial
condition and results of operations.



New production of iodine or lithium carbonate from current
or new competitors in the markets in which we operate could adversely affect prices



In recent years, new and existing competitors
have increased the supply of iodine and lithium carbonate, which has affected prices for both products. Further production increases
could negatively impact prices. There is limited information on the status of new iodine or lithium carbonate production capacity
expansion projects being developed by current and potential competitors and, as such, we cannot make accurate projections regarding
the capacities of possible new entrants into the market and the dates on which they could become operational. If these potential
projects are completed in the short term, they could adversely affect market prices and our market share, which, in turn, could
have a material adverse effect on our business, financial condition and results of operations.



We have a capital expenditure program
that is subject to significant risks and uncertainties



Our business is capital intensive. Specifically,
the exploration and exploitation of reserves, mining and processing costs, the maintenance of machinery and equipment and compliance
with applicable laws and regulations require substantial capital expenditures. We must continue to invest capital to maintain
or to increase our exploitation levels and the amount of finished products we produce.



In addition, we require environmental
permits for our new projects. Obtaining permits in certain cases may cause significant delays in the execution and implementation
of new projects and, consequently, may require us to reassess the related risks and economic incentives. We cannot assure you
that we will be able to maintain our production levels or generate sufficient cash flow, or that we will have access to sufficient
investments, loans or other financing alternatives, to continue our activities at or above present levels, or that we will be
able to implement our projects or receive the necessary permits required for them in time. Any or all of these factors may have
a material adverse effect on our business, financial condition and results of operations.



14







High raw materials and energy prices could increase our
production costs and cost of sales, and energy may become unavailable at any price



We rely on certain raw materials and various
energy sources (diesel, electricity, liquefied natural gas, fuel oil and others) to manufacture our products. Purchases of energy
and raw materials we do not produce constitute an important part of our cost of sales, approximately 15% in 2014. In addition,
we may not be able to obtain energy at any price if supplies are curtailed or otherwise become unavailable. To the extent we are
unable to pass on increases in the prices of energy and raw materials to our customers or we are unable to obtain energy, our
business, financial condition and results of operations could be materially adversely affected.



Our reserves estimates could be subject to significant
changes



Our caliche ore mining reserves estimates
are prepared by our own geologists and were most recently validated in January 2015 by Mrs. Marta Aguilera and Mr. Orlando Rojas.
Mrs. Aguilera is a geologist with over 20 years of experience in the field. She is currently employed by SQM as Manager of Geology
and Mining Development. Mrs. Aguilera is a Competent Person (Persona Competente), as that term is defined under Chilean
Law No. 20,235, known as the Law that Regulates the Position of Competent Person and Creates the Qualifying Committee for Competencies
in Mining Resources and Reserves (Ley que Regula la Figura de las Personas Competentes y Crea la Comisión Calificadora
de Competencias de Recursos y Reservas Mineras or “Competent Person Law”), and she is registered under No. 163
in the Public Registry of Competent Persons in Mining Resources and Reserves in accordance with such law and related regulations.
Mr. Orlando Rojas is a civil mining engineer and independent consultant. He is Partner and Chief Executive Officer of the company
EMI-Ingenieros y Consultores S.A., whose offices are located at Renato Sánchez No. 3357, Las Condes, Santiago, Chile. He
is a member of the Institute of Mining Engineers and is registered under No. 118 in the Public Registry of Competent Persons in
Mining Resources and Reserves in accordance with the Competent Person Law and related regulations. He has worked as a mining engineer
for 35 years since graduating from university, including more than 30 years working on estimates for reserves and resources.



Our Salar de Atacama brine mining reserve
estimates are prepared by our own geologists and were most recently validated in March 2015 by Mr. Álvaro Henríquez
and Mr. Orlando Rojas. Mr. Henríquez is a geologist with more than 10 years of experience in the field of hydrogeology.
He is currently employed by SQM as Superintendent of Geology, in the Salar Hydrogeology department. He is a Competent Person and
is registered under No. 226 in the Public Registry of Competent Persons in Mining Resources and Reserves, in accordance with the
Competent Person Law and related regulations. As a hydrogeologist, he has evaluated multiple brine-based projects and has experience
evaluating resources and reserves.



Estimation methods involve numerous uncertainties
as to the quantity and quality of the reserves, and reserve estimates could change upwards or downwards. In addition, our reserve
estimates are not subject to review by external geologists or an external auditing firm. A downward change in the quantity and/or
quality of our reserves could affect future volumes and costs of production and therefore have a material adverse effect on our
business, financial condition and results of operations.



Quality standards in markets in which we sell our products
could become stricter over time



In the markets in which we do business,
customers may impose quality standards on our products and/or governments may enact stricter regulations for the distribution
and/or use of our products. As a result, if we cannot meet such new standards or regulations, we may not be able to sell our products.
In addition, our cost of production may increase in order to meet any such newly imposed or enacted standards. Failure to sell
our products in one or more markets or to important customers could materially adversely affect our business, financial condition
and results of operations.



15







Chemical and physical properties of our products could
adversely affect their commercialization



Since our products are derived from natural
resources, they contain inorganic impurities that may not meet certain customer or government standards. As a result, we may not
be able to sell our products if we cannot meet such requirements. In addition, our cost of production may increase in order to
meet such standards. Failure to meet such standards could materially adversely affect our business, financial condition and results
of operations if we are unable to sell our products in one or more markets or to important customers in such markets.



Our business is subject to many
operating and other risks for which we may not be fully covered under our insurance policies



Our facilities and business operations
in Chile and abroad are insured against losses, damage or other risks by insurance policies that are standard for the industry
and that would reasonably be expected to be sufficient by prudent and experienced persons engaged in businesses similar to ours.



We may be subject to certain events that
may not be covered under our insurance policies, which could have a material adverse effect on our business, financial condition
and results of operations. Additionally, as a result of recent major earthquakes in Chile and other natural disasters worldwide,
conditions in the insurance market have changed and may continue to change in the future, and as a result, we may face higher
premiums and reduced coverage, which could have a material adverse effect on our business, financial condition and results of
operations.



Changes in technology or other developments
could result in preferences for substitute products



Our products, particularly iodine, lithium,
and their derivatives, are preferred raw materials for certain industrial applications, such as rechargeable batteries and LCDs.
Changes in technology, the development of substitute raw materials or other developments could adversely affect demand for these
and other products which we produce. In addition, other alternatives to our products may become more economically attractive as
global commodity prices shift. Any of these events could have a material adverse effect on our business, financial condition and
results of operations.



We are exposed to labor strikes
and labor liabilities that could impact our production levels and costs



Over 96% of our employees are employed
in Chile, of which approximately 68% were represented by 25 labor unions as of December 31, 2014. As in previous years, during
2014 we renegotiated collective labor contracts with individual unions one year before the expiration of such contracts. As of
December 31, 2014, we had concluded negotiations with 21 labor unions, which represent 91.9% of our total unionized workers, signing
new agreements with each for the next three years. In January of 2015, we concluded negotiations with two additional unions, covering
a total of 99.7% of our unionized workers. In order to finalize the current collective bargaining cycle, we need to conduct negotiations
with the remaining two unions.



We are exposed to labor strikes and illegal
work stoppages that could impact our production levels. If a strike or illegal work stoppage occurs and continues for a sustained
period of time, we could be faced with increased costs and even disruption in our product flow that could have a material adverse
effect on our business, financial condition and results of operations.



16







Chilean Law No. 20,123, known as the Subcontracting
Law, provides that when a serious workplace accident occurs, a company must halt work at the site where the accident took place
until authorities from either the National Geology and Mining Service (Servicio Nacional de Geología y Mineríaor “Sernageomin”), the Labor Board (Dirección del Trabajo or “Labor Board”), or the
National Health Service (Servicio Nacional de Salud), inspect the site and prescribe the measures such company must take
to minimize the risk of similar accidents taking place in the future. Work may not be resumed until such company has taken the
prescribed measures, and the period of time before work may be resumed may last for a number of hours, days, or longer. The effects
of this law could have a material adverse effect on our business, financial condition and results of operations.



On December 29, 2014, the Government of
Chile sent the Chilean Congress a bill introducing modifications to the Labor Code in relation to collective rights. The objective
of such bill is to modernize the Chilean labor relations system, giving more power to union organizations. This bill could undergo
modifications after being discussed by the parliament during the year 2015. Therefore, we are not able to predict the potential
effects of such bill on the Company.



Lawsuits and arbitrations could
adversely impact us



We are party to a range of lawsuits and
arbitrations involving different matters as described in Note 19.1 of our Consolidated Financial Statements and Item 8.A. Legal
Proceedings. Although we intend to defend our positions vigorously, our defense of these actions may not be successful. Judgments
or settlements in these lawsuits may have a material adverse effect on our business, financial condition and results of operations.
In addition, our strategy of being a world leader includes entering into commercial and production alliances, joint ventures and
acquisitions to improve our global competitive position. As these operations increase in complexity and are carried out in different
jurisdictions, we might be subject to legal proceedings that, if settled against us, could have a material adverse effect on our
business, financial condition and results of operations.



In 2009, the Chilean labor code (Código
del Trabajo or “Labor Code”) established new procedures for labor matters which include oral trials conducted
by specialized judges. The information available indicates that the majority of these oral trials have found in favor of the employee.
These new procedures have increased the probability of adverse judgments in labor lawsuits which could have a material adverse
effect on our business, financial condition and results of operations.



We have operations in multiple jurisdictions
with differing regulatory, tax and other regimes



We operate in multiple jurisdictions with
complex regulatory environments that are subject to different interpretations by companies and respective governmental authorities.
These jurisdictions may have different tax codes, environmental regulations, labor codes and legal framework, which adds complexity
to our compliance with these regulations. Any failure to comply with such regulations could have a material adverse effect on
our business, financial condition and results of operations.



Environmental laws and regulations
could expose us to higher costs, liabilities, claims and failure to meet current and future production targets



Our operations in Chile are subject to
national and local regulations relating to environmental protection. In accordance with such regulations, we are required to conduct
environmental impact studies or statements before we conduct any new projects or activities or significant modifications of existing
projects that could impact the environment or the health of people in the surrounding areas. We are also required to obtain an
environmental license for certain projects and activities. The Environmental Evaluation Service (Servicio de Evaluación
Ambiental or “Environmental Evaluation Service”) evaluates environmental impact studies submitted for its approval.
The public, government agencies or local authorities may review and challenge projects that may adversely affect the environment,
either before these projects are executed or once they are operating, if they fail to comply with applicable regulations. In order
to ensure compliance with environmental regulations, Chilean authorities may impose fines up to approximately US$9 million per
infraction, revoke environmental permits or temporarily or permanently close facilities, among other enforcement measures.



17







Chilean environmental regulations have
become increasingly stringent in recent years, both with respect to the approval of new projects and in connection with the implementation
and development of projects already approved, and we believe that this trend is likely to continue. Given public interest in environmental
enforcement matters, these regulations or their application may also be subject to political considerations that are beyond our
control.



We regularly monitor the impact of our
operations on the environment and on the health of people in the surrounding areas and have, from time to time, made modifications
to our facilities to minimize any adverse impact. Future developments in the creation or implementation of environmental requirements
or their interpretation could result in substantially increased capital, operation or compliance costs or otherwise adversely
affect our business, financial condition and results of operations.



The success of our current investments
at the Salar de Atacama and Nueva Victoria is dependent on the behavior of the ecosystem variables being monitored over time.
If the behavior of these variables in future years does not meet environmental requirements, our operation may be subject to important
restrictions by the authorities on the maximum allowable amounts of brine and water extraction.



Our future development depends on our
ability to sustain future production levels, which requires additional investments and the submission of the corresponding environmental
impact studies or statements. If we fail to obtain approval or required environmental licenses, our ability to maintain production
at specified levels will be seriously impaired, thus having a material adverse effect on our business, financial condition and
results of operations.



In addition, our worldwide operations
are subject to international and other local environmental regulations. Since environmental laws and regulations in the different
jurisdictions in which we operate may change, we cannot guarantee that future environmental laws, or changes to existing environmental
laws, will not materially adversely impact our business, financial condition and results of operations.



Our water supply could be affected
by geological changes or climate change



Our access to water may be impacted by
changes in geology, climate change or other natural factors, such as wells drying up or reductions in the amount of water available
in the wells or rivers from which we obtain water, that we cannot control. Any such change may have a material adverse effect
on our business, financial condition and results of operations.



Any loss of key personnel may materially
and adversely affect our business



Our success depends in large part on the
skills, experience and efforts of our senior management team and other key personnel. The loss of the services of key members
of our senior management or employees with critical skills could have a negative effect on our business, financial condition and
results of operations. If we are not able to attract or retain highly skilled, talented and qualified senior managers or other
key personnel, our ability to fully implement our business objectives may be materially and adversely affected.



18







Risks Relating to Financial Markets



Currency fluctuations may have a
negative effect on our financial performance



We transact a significant portion of our
business in U.S. dollars, and the U.S. dollar is the currency of the primary economic environment in which we operate. In addition,
the U.S. dollar is our functional currency for financial statement reporting purposes. A significant portion of our costs, however,
is related to the Chilean peso. Therefore, an increase or decrease in the exchange rate between the Chilean peso and the U.S.
dollar would affect our costs of production. The Chilean peso has been subject to large devaluations and revaluations in the past
and may be subject to significant fluctuations in the future. As of December 31, 2014, the Chilean peso exchange rate was Ch$606.75
per U.S. dollar, while as of December 31, 2013, the Chilean peso exchange rate was Ch$524.61 per U.S. dollar. The Chilean peso
therefore depreciated against the U.S. dollar by 16% in 2014. As of April 28, 2015, the Observed Exchange Rate was Ch$611.08 per
U.S. dollar.



As an international company operating
in several other countries, we also transact business and have assets and liabilities in other non-U.S. dollar currencies, such
as, among others, the euro, the South African rand, the Mexican peso, the Chinese yuan, the Thai baht and the Brazilian real.
As a result, fluctuations in the exchange rates of such foreign currencies to the U.S. dollar may have a material adverse effect
on our business, financial condition and results of operations.



Interest rate fluctuations may have
a material impact on our financial performance



We have outstanding short and long-term
debt that bears interest based on the London Interbank Offered Rate (“LIBOR”), plus a spread. Since we are currently
hedging only a portion of these liabilities into fixed rates, we are exposed to interest rate risk relating to LIBOR fluctuations.
As of December 31, 2014, approximately 14% our financial debt had LIBOR-based pricing that was not hedged into fixed rates. A
relative increase in the rate could materially impact our business, financial condition and results of operations.



Risks Relating to Chile



As we are a company based in Chile,
we are exposed to Chilean political risks



Our business, results of operations, financial
condition and prospects could be affected by changes in policies of the Chilean government, other political developments in or
affecting Chile, legal changes in the standards or administrative practices of Chilean authorities or the interpretation of such
standards and practices, over which we have no control.



Changes in regulations regarding,
or any revocation or suspension of our concessions could negatively affect our business



Any changes to regulations to which we
are subject or adverse changes to our concession rights, or a revocation or suspension of our concessions, could have a material
adverse effect on our business, financial condition and results of operations.



19







Changes in mining or port concessions
could affect our operating costs



We conduct our mining operations, including
brine extraction, under exploitation and exploration concessions granted in accordance with provisions of the Chilean constitution
and related laws and statutes. Our exploitation concessions essentially grant a perpetual right (with the exception of the Salar
de Atacama rights, which have been leased to us until 2030) to conduct mining operations in the areas covered by the concessions,
provided that we pay annual concession fees. Our exploration concessions permit us to explore for mineral resources on the land
covered thereby for a specified period of time and to subsequently request a corresponding exploitation concession. Our subsidiary
SQM Salar, as leaseholder, holds exclusive and temporary rights over the mineral resources in an area covering approximately 140,000
hectares of land in the Salar de Atacama in northern Chile, of which SQM Salar is entitled to exploit the mineral resources of
81,920 hectares. These rights are owned by Corfo and leased to SQM Salar pursuant to the Lease Agreement between Corfo and SQM
Salar. Corfo may not unilaterally modify the Lease Agreement, and the rights to exploit the mineral substances cannot be transferred.
The Lease Agreement establishes that SQM Salar is responsible for making quarterly lease payments to Corfo, maintaining Corfo’s
rights over the mining exploitation concessions, and making annual payments to the Chilean government for such concession rights.
The Lease Agreement expires on December 31, 2030. Furthermore, under the regulations of the Chilean Nuclear and Energy Commission
(Comisión Chilena de Energía Nuclear or “CCHEN”), we are limited to 180,100 tons of total lithium
(958,672 tons of lithium carbonate equivalent) extraction in the aggregate for all periods. We are over halfway through the term
of the Lease Agreement and have extracted approximately half of the total accumulated extraction limit of lithium. However, there
can be no assurance that we will not reach the lithium extraction limit prior to the term of the lease agreement. In addition,
we cannot assure you that Corfo will not take other actions in the future in respect of the Lease Agreement that are contrary
to our interests. See “-Risk Relating to our Business-Arbitration
proceedings under the Lease Agreement for the Salar de Atacama, if determined adversely to us, would materially adversely affect
our business and operations.”



We also operate port facilities at Tocopilla,
Chile for the shipment of products and the delivery of raw materials pursuant to maritime concessions, which have been granted
under applicable Chilean laws and are normally renewable on application, provided that such facilities are used as authorized
and annual concession fees are paid.



Any significant changes to any of these
concessions could have a material adverse effect on our business, financial condition and results of operations.



Changes in water rights laws and
other regulations could affect our operating costs



We hold water rights that are key to our
operations. These rights were obtained from the Chilean Water Authority (Dirección General de Aguas) for supply
of water from rivers and wells near our production facilities, which we believe are sufficient to meet current operating requirements.
However, the Chilean water rights code (Código de Aguas or the “Water Code”) is subject to changes,
which could have a material adverse impact on our business, financial condition and results of operations. For example, an amendment
published on June 16, 2005 modified the Water Code, allowing, under certain conditions, the granting of permanent water rights
of up to two liters per second for each well built prior to June 30, 2004, in the areas where we conduct our mining operations,
without considering the availability of water, or how the new rights may affect holders of existing rights. Therefore, the amount
of water we can effectively extract based on our existing rights could be reduced if these additional rights are exercised. In
addition, we must pay annual fees to maintain water rights that have been granted to us and that we are not exercising. These
and potential future changes to the Water Code or other relevant regulations could have a material adverse effect on our business,
financial condition and results of operations.



The Chilean government could levy
additional taxes on corporations operating in Chile



In 2005, the Chilean Congress approved
Law No. 20,026 known as the Law to Establish a Specific Tax on Mining Activity” (Ley que Establece un Impuesto Específico
a la Actividad Minera or the “Royalty Law”), establishing a royalty tax to be applied to mining activities developed
in Chile.



Following the earthquake and tsunami in
February 2010, the Chilean government raised the corporate income tax rate in order to pay for reconstruction. Such legislation
increased the general corporate tax rate from its historic rate of 17.0% to 20.0% for the income accrued in 2011, which was declared
and paid in 2012. On September 27, 2012, Law No. 20,630 introduced new amendments to existing tax legislation. Among the amendments
introduced, the corporate income tax was maintained at 20% beginning in the 2013 calendar year.



20







On September 29, 2014, Law No. 20,780
was published (the “Tax Reform”), introducing significant changes to the Chilean taxation system and strengthening
the powers of the SII to control and prevent tax avoidance. The Tax Reform contemplates, among other matters, changes to the corporate
tax regime to create two tax regimes. Starting on January 1, 2017, Chilean companies will be able to opt between two tax regimes:
(i) the partially integrated shareholder tax regime (sistema parcialmente integrado) or (ii) the attributed income shareholder
taxation regime (sistema de renta atribuida). In both regimes, the corporate tax rate will be increased to 21% in 2014,
22.5% in 2015 and 24% by 2016. On or after January 1, 2017, and depending on the tax regime chosen by the company, tax rates may
be increased to a maximum rate of 25% in 2017 for the attributed income shareholder taxation regime or to a rate of 25.5% in 2017
and subsequently to a maximum rate of 27% in 2018 for the partially integrated shareholder tax regime.



As an open stock corporation, the default
regime that applies to us is the partially integrated regime, unless at a future shareholders’ meeting our shareholders
agree to opt for the attributed income shareholder taxation regime. Under the partially integrated shareholder taxation regime,
shareholders bear the tax on dividends, when paid, but will be permitted to credit against such shareholder taxes only a portion
of the Chilean corporate tax paid by us on our earnings, unless the shareholder is resident in a country with a tax treaty with
Chile, in which case 100% of the Chilean corporate tax paid by us may be credited against such shareholder taxes. As a result,
foreign shareholders resident in a non-treaty jurisdiction (such as the United States) will be subject to a higher effective tax
rate than residents of treaty jurisdictions. Under the attributed-income shareholder taxation regime, shareholders bear the Chilean
tax on our accrued earnings (whether or not dividends have been distributed), but may credit the full amount of the Chilean corporate
tax we pay on such earnings against such shareholder taxes.



The Tax Reform tax increase prompted a US$52.3 million increase in our deferred tax liabilities as of
December 31, 2014. In accordance with IAS 12, the effects generated by the
change in the income tax rate approved by Law No. 20.780 on income and deferred taxes have been applied to the income statement.
For purposes of the Company’s statutory consolidated financial statements filed with the SVS, in accordance with the instructions
issued by the SVS in its circular 856 of October 17, 2014, the effects generated by the change in the income tax rate were accounted
for as retained earnings. The amount charged to equity was US$52.3 million, thereby giving rise to a difference of US$52.3 million
in profit for the year and income tax expense as presented in the Company’s Audited Consolidated Financial Statements and
as presented in its statutory consolidated financial statements filed with the SVS.



Given the difference in accounting treatments
between IFRS and the instructions of the SVS, we will continue to analyze the effects of the Tax Reform on our financial statements
and reporting obligations, and we cannot be sure of how our future financial statements will reflect these changes.



In addition, the Tax Reform may have other
material adverse effects on our business, financial condition and results of operations. Likewise, we cannot assure you that the
manner in which the Royalty Law or the corporate tax rate are interpreted and applied will not change in the future. The Chilean
government may decide to levy additional taxes on mining companies or other corporations in Chile. Such changes could have a material
adverse effect on our business, financial condition and results of operations.



Ratification of the International
Labor Organization’s Convention 169 concerning indigenous and tribal peoples might affect our development plans



Chile, a member of the International Labor
Organization (“ILO”), has ratified the ILO’s Convention 169 (the “Indigenous Rights Convention”)
concerning indigenous and tribal people. The Indigenous Rights Convention established several rights for indigenous people and
communities. Among other rights, the Indigenous Rights Convention states that (i) indigenous groups should be notified and consulted
prior to the development of any project on land deemed indigenous, although veto rights are not mentioned and (ii) indigenous
groups have, to the extent possible, a stake in benefits resulting from the exploitation of natural resources in indigenous land.
The extent of these benefits has not been defined by the Chilean government. To the extent that the new rights outlined in the
Indigenous Rights Convention become laws or regulations in Chile, they could affect the development of our investment projects
in lands that have been defined as indigenous, which could have a material adverse effect on our business, financial condition
and results of operations.



21







Chile is located in a seismically
active region



Chile is prone to earthquakes because
it is located along major fault lines.  The most recent major earthquake in Chile occurred offshore in April 2014 and had
a magnitude of 8.2 on the Richter scale. This earthquake followed another one in February 2010, which caused substantial damage
to some areas of the country. Chile has also experienced volcanic activity. A major earthquake or a volcanic eruption could have
significant negative consequences for our operations and for the general infrastructure, such as roads, rail, and access to goods,
in Chile. Although we maintain industry standard insurance policies that include earthquake coverage, we cannot assure you that
a future seismic or volcanic event will not have a material adverse effect on our business, financial condition and results of
operations.



Risks
Relating to our Shares and to our ADSs



The price of our ADSs and
the U.S. dollar value of any dividends will be affected by fluctuations in the U.S. dollar/Chilean peso exchange rate



Chilean trading in the shares underlying
our ADSs is conducted in Chilean pesos. The depositary will receive cash distributions that we make with respect to the shares
in Chilean pesos. The depositary will convert such Chilean pesos to U.S. dollars at the then prevailing exchange rate to make
dividend and other distribution payments in respect of ADSs. If the value of the Chilean peso falls relative to the U.S. dollar,
the value of the ADSs and any distributions to be received from the depositary will decrease.



Developments in other emerging
markets could materially affect the value of our ADSs



The Chilean financial and securities markets
are, to varying degrees, influenced by economic and market conditions in other emerging market countries or regions of the world.
Although economic conditions are different in each country or region, investor reaction to developments in one country or region
can have significant effects on the securities of issuers in other countries and regions, including Chile and Latin America. Events
in other parts of the world may have a material effect on Chilean financial and securities markets and on the value of our ADSs.



The volatility and low liquidity
of the Chilean securities markets could affect the ability of our shareholders to sell our ADSs



The Chilean securities markets are substantially
smaller, less liquid and more volatile than the major securities markets in the United States. The volatility and low liquidity
of the Chilean markets could increase the price volatility of our ADSs and may impair the ability of a holder to sell our ADSs
into the Chilean market in the amount and at the price and time he wishes to do so.



Our share price may react
negatively to future acquisitions and investments



As world leaders in our core businesses,
part of our strategy is to look for opportunities that will allow us to consolidate and strengthen our competitive position in
jurisdictions in which we currently do not operate. Pursuant to this strategy, we may carry out acquisitions or joint ventures
relating to any of our businesses or to new businesses in which we believe we may have sustainable competitive advantages. Depending
on our capital structure at the time of such acquisitions or joint ventures, we may need to raise significant debt and/or equity
which will affect our financial condition and future cash flows. Any change in our financial condition could affect our results
of operations, negatively impacting our share price.



22







You may be unable to enforce
rights under U.S. Securities Laws



Because we are a Chilean company subject
to Chilean law, the rights of our shareholders may differ from the rights of shareholders in companies incorporated in the United
States, and you may not be able to enforce or may have difficulty enforcing rights currently in effect under U.S. Federal or State
securities laws.



Our Company is an open stock corporation
incorporated under the laws of the Republic of Chile. Most of our directors and officers reside outside the United States, principally
in Chile. All or a substantial portion of the assets of these persons are located outside the United States. As a result, if any
of our shareholders, including holders of our ADSs, were to bring a lawsuit against our officers or directors in the United States,
it may be difficult for them to effect service of legal process within the United States upon these persons. Likewise, it may
be difficult for them to enforce judgments obtained in United States courts based upon the civil liability provisions of the federal
securities laws in the United States against them in the United States.



In addition, there is no treaty between
the United States and Chile providing for the reciprocal enforcement of foreign judgments. However, Chilean courts have enforced
judgments rendered in the United States, provided that the Chilean court finds that the United States court respected basic principles
of due process and public policy. Nevertheless, there is doubt as to whether an action could be brought successfully in Chile
in the first instance on the basis of liability based solely upon the civil liability provisions of the United States federal
securities laws.



As preemptive rights may be
unavailable for our ADS holders, they have the risk of their holdings being diluted if we issue new stock



Chilean laws require companies to offer
their shareholders preemptive rights whenever issuing new shares of capital stock so shareholders can maintain their existing
ownership percentage in a company. If we increase our capital by issuing new shares, a holder may subscribe for up to the number
of shares that would prevent dilution of the holder’s ownership interest.



If we issue preemptive rights, United
States holders of ADSs would not be able to exercise their rights unless a registration statement under the Securities Act were
effective with respect to such rights and the shares issuable upon exercise of such rights or an exemption from registration were
available. We cannot assure holders of ADSs that we will file a registration statement or that an exemption from registration
will be available. We may, in our absolute discretion, decide not to prepare and file such a registration statement. If our holders
were unable to exercise their preemptive rights because we did not file a registration statement, the depositary bank would attempt
to sell their rights and distribute the net proceeds from the sale to them, after deducting the depositary’s fees and expenses.
If the depositary could not sell the rights, they would expire and holders of ADSs would not realize any value from them. In either
case, ADS holders’ equity interest in us would be diluted in proportion to the increase in our capital stock.



23







If we were classified as a
Passive Foreign Investment Company there could be adverse consequences for U.S. investors



We believe that we were not classified
as a Passive Foreign Investment Company (“PFIC”) for 2014. Characterization as a PFIC could result in adverse U.S.
tax consequences to you if you are a U.S. investor in our shares or ADSs. For example, if we (or any of our subsidiaries) are
a PFIC, our U.S. investors may become subject to increased tax liabilities under U.S. tax laws and regulations and will become
subject to burdensome reporting requirements. The determination of whether or not we (or any of our subsidiaries or portfolio
companies) are a PFIC is made on an annual basis and will depend on the composition of our (or their) income and assets from time
to time. See “Item 10.E. Taxation—United States Tax Considerations.”



Changes in Chilean tax regulations
could have adverse consequences for U.S. investors



Currently cash dividends paid by us to
foreign shareholders are subject to a 35% Chilean withholding tax. If we have paid corporate income tax (the “First Category
Tax”) on the income from which the dividend is paid, a credit for the First Category Tax effectively reduces the rate of
Withholding Tax. Changes in Chilean tax regulations could have adverse consequences for U.S. investors. See “Item 3. Risk
Factors—Risks Relating to Chile—The Chilean Government Could Levy Additional Taxes on Corporations Operating in Chile”
and “Item 10. Taxation—Chilean Tax Considerations.”



ITEM 4.	INFORMATION ON THE COMPANY



4.A. History
and Development of the Company



Historical
Background



Sociedad Química y Minera de Chile
S.A. is an open stock corporation organized under the laws of the Republic of Chile. We were constituted by public deed issued
on June 17, 1968 by the Notary Public of Santiago, Mr. Sergio Rodríguez Garcés. Our existence was approved by Decree
No. 1,164 of June 22, 1968 of the Ministry of Finance, and we were registered on June 29, 1968 in the Registry of Commerce of
Santiago, on page 4,537 No. 1,992. Our headquarters is located at El Trovador 4285, Fl. 6, Las Condes, Santiago, Chile. Our telephone
number is +56 2 2425-2000. Our U.S. representative is SQM NA located at 2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta,
GA 30339. The phone number is +1 (770) 916-9407.



Commercial exploitation of the caliche
ore deposits in northern Chile began in the 1830s, when sodium nitrate was extracted from the ore for use in the manufacturing
of explosives and fertilizers. By the end of the nineteenth century, nitrate production had become the leading industry in Chile
and the country was the world’s leading supplier of nitrates. The accelerated commercial development of synthetic nitrates
in the 1920s and the global economic depression in the 1930s caused a serious contraction of the Chilean nitrate business, which
did not recover significantly until shortly before the Second World War. After the war, the widespread commercial production of
synthetic nitrates resulted in a further contraction of the natural nitrate industry in Chile, which continued to operate at depressed
levels into the 1960s.



We were formed in 1968 through a joint
venture between Compañía Salitrera Anglo Lautaro S.A. (“Anglo Lautaro”) and Corfo. Three years after
our formation, in 1971, Anglo Lautaro sold all of its shares to Corfo, and we were wholly owned by the Chilean Government until
1983. In 1983, Corfo began a process of privatization by selling our shares to the public and subsequently listing such shares
on the Santiago Stock Exchange. By 1988, all of our shares were publicly owned. Our Series B ADSs have traded on the NYSE under
the ticker symbol “SQM” since 1993. We accessed international capital markets again for the issuance of additional
ADSs in 1995 and 1999. On December 21, 2006, two groups of shareholders, the “Pampa Group” (which includes the company
Sociedad de Inversiones Pampa Calichera S.A. and its related companies, Inversiones Global Mining Chile Limitada and Potasios
de Chile S.A.) and Kowa Group (which includes the companies Kowa Company Ltd., Inversiones La Esperanza (Chile) Limitada, Kochi
S.A and La Esperanza Delaware Corporation) signed a joint agreement and became the controlling group of SQM.



24







Since our inception, we have produced
nitrates and iodine, which are obtained from the caliche ore deposits in northern Chile. In 1985, we began to use heap leaching
processes to extract nitrates and iodine, and in 1986 we started to produce potassium nitrate at our Coya Sur facility. Between
1994 and 1999, we invested approximately US$300 million in the development of the Salar de Atacama project in northern Chile,
which enabled us to produce potassium chloride, lithium carbonate, potassium sulfate and boric acid.



From 2000 through 2004, we principally
consolidated the investments carried out in the preceding five years. We focused on reducing costs and improving efficiencies
throughout the organization. In addition, in 2001, we signed a commercial distribution agreement with the Norwegian company Yara
International ASA, in order to take advantage of cost synergies in the Specialty Plant Nutrition business line.



Starting in 2005, we began strengthening
our leadership position in our core businesses through a combination of capital expenditures and advantageous acquisitions and
divestitures. Our acquisitions have included the Kemira Emirates Fertiliser Company (“Kefco”) in Dubai in 2005 and
the iodine business of Royal DSM N.V. (“DSM”) in 2006. We also entered into a number of joint ventures, including
a joint venture with Migao Corporation (“Migao”), signed in 2008, for the production of potassium nitrate, and SQM
VITAS, our joint venture with the French Roullier Group. Pursuant to the latter joint venture, in 2010, we launched a new line
of soluble phosphate products, and in 2012 we built new plants for the production of water-soluble fertilizers in Brazil (Candeias),
Peru and South Africa (Durban). We have also sold: (i) Fertilizantes Olmeca, our former Mexican subsidiary, in 2006, (ii) our
stake in Impronta S.R.L., our former Italian subsidiary, in 2007 and (iii) our former butyllithium plant located in Houston, Texas,
in 2008. These sales allowed us to concentrate our efforts on our core products.



The capital expenditure program has allowed
us to add new products to our product line and increase the production capacity of our existing products. In 2005, we started
production of lithium hydroxide at a plant in the Salar del Carmen, near the city of Antofagasta in the north of Chile. In 2007,
we completed the construction of a new prilling and granulating plant. In 2011, we completed expansions of our lithium carbonate
capacity, achieving 48,000 metric tons per year. Since 2010, we have continued to expand our production capacity of potassium
products in our operations in the Salar de Atacama. In 2011, we completed the construction of a new potassium nitrate facility
in Coya Sur, increasing our overall production capacity of potassium nitrate by 300,000 metric tons per year. In 2013, we completed
expansions in the production capacity of our iodine plants in Nueva Victoria. Our capital expenditure program also includes exploration
for metallic minerals. Our exploration efforts have led to discoveries that in some cases may result in sales of the discovery
and the generation of royalty income in the future. Within this context, in 2013 we sold our royalty rights to the Antucoya mining
project to Antofagasta Minerals. In 2013 we also opened a trading office in Thailand.



In 2014, we invested in the development
of new extraction sectors and production increases in both nitrates and iodine at Nueva Victoria, reaching an approximate production
capacity of 6,500 metric tons per year of iodine at the facility. We also issued a bond in the international capital markets for
US$250 million, primarily to refinance existing indebtedness.



Capital Expenditure Program



We regularly review different opportunities
to improve our production methods, reduce costs, increase production capacity of existing products and develop new products and
markets. Additionally, significant capital expenditures are required every year in order to sustain our production capacity. We
are focused on developing new products in response to identified customer demand, as well as new products that can be derived
as part of our existing production or other products that could fit our long-term development strategy. Our capital expenditures
during the past five years were mainly related to the organic growth and sustainability of our business, including the construction
of new facilities and the renovation of plants and equipment. These investments were carried out with internal financing through
our capital expenditure program for investments in Chile.



25







Our capital expenditures for the years
ended December 31, 2014, 2013 and 2012 were as follows:



|(in millions of U.S. dollars) |  | 2014 |       |  | 2013 |  |       | 2012 | 
|----------------------------- |  | ---- | ----- |  | ---- |  | ----- | ---- | 
|Capital Expenditures          |  |      | 112.1 |  |      |  | 386.5 |      | 



During 2014, we had total capital expenditures
of US$112.1 million, primarily related to:



| | · | development
                                         of new extraction sectors and production increases for both nitrates and iodine at Nueva
                                         Victoria;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | investments
                                         aimed at maintaining and improving the quality of finished nitrate products;
| | - | ---------------------------------------------------------------------------------------------------------------------------------

| | · | exploration
                                         and construction of wells to sustain long-term production at the Salar de Atacama;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------

| | · | consolidation
                                         of our corporate enterprise resource planning into SAP and
| | - | -----------------------------------------------------------------------------------------------------------------

| | · | maintenance
                                         across all production units in order to ensure fulfillment of production targets.
| | - | --------------------------------------------------------------------------------------------------------------------------------------



During 2013, we had total capital expenditures
of US$386.5 million, primarily related to:



| | · | improvement
                                         of nitrate-based products at Coya Sur;
| | - | -------------------------------------------------------------------------------------------

| | · | investment
                                         relating to increasing production capacity of potassium-based products at the Salar de
                                         Atacama;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | ongoing
                                         investment relating to increasing production capacity and efficiency in our nitrate and
                                         iodine facilities;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | optimization
                                         of our potassium chloride facility at the Salar de Atacama;
| | - | -----------------------------------------------------------------------------------------------------------------

| | · | projects
                                         to increase the efficiency of our human resources and logistics departments and
| | - | ---------------------------------------------------------------------------------------------------------------------------------

| | · | various
                                         projects designed to maintain production capacity, increase yields, and reduce costs.
| | - | --------------------------------------------------------------------------------------------------------------------------------------



During 2012, we had total capital expenditures
of US$450.0 million, primarily related to:



| | · | projects
                                         to increase capacity and efficiencies at nitrate and iodine facilities in the Tarapacá
                                         region;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | continued
                                         investments related to increasing production capacity of potassium-based products at
                                         the Salar de Atacama, including several projects related to production of finished products
                                         and
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | various
                                         projects designed to maintain production capacity, increase yields and reduce costs.
| | - | -------------------------------------------------------------------------------------------------------------------------------------



The Board of Directors has approved a
capital expenditures plan for 2015 of US$182 million primarily focused on the maintenance of our production facilities. Our 2015
capital investment program will not require any external financing; however, we reserve the right to access capital markets in
order to optimize our financial position.



4.B. Business
Overview



The
Company



We believe that we are the world’s
largest producer of potassium nitrate and iodine chemicals. We also produce specialty plant nutrients, iodine and its derivatives,
lithium and its derivatives, potassium chloride, potassium sulfate and certain industrial chemicals (including industrial nitrates
and solar salts). Our products are sold in over 110 countries through our worldwide distribution network, with 89% of our sales
in 2014 derived from countries outside Chile.



26







Our products are mainly derived from mineral
deposits found in northern Chile. We mine and process caliche ore and brine deposits. The caliche ore in northern Chile contains
the only known nitrate and iodine deposits in the world and is the world’s largest commercially exploited source of natural
nitrates. The brine deposits of the Salar de Atacama, a salt-encrusted depression in the Atacama Desert in northern Chile, contain
high concentrations of lithium and potassium as well as significant concentrations of sulfate and boron.



From our caliche ore deposits, we produce
a wide range of nitrate-based products used for specialty plant nutrients and industrial applications, as well as iodine and iodine
derivatives. At the Salar de Atacama, we extract brines rich in potassium, lithium, sulfate and boron in order to produce potassium
chloride, potassium sulfate, lithium solutions, boric acid and bischofite (magnesium chloride). We produce lithium carbonate and
lithium hydroxide at our plant near the city of Antofagasta, Chile, from the solutions brought from the Salar de Atacama. We market
all of these products through an established worldwide distribution network.



Our products are divided into six categories:
specialty plant nutrients; iodine and its derivatives; lithium and its derivatives; potassium chloride and potassium sulfate;
industrial chemicals; and other commodity fertilizers. Specialty plant nutrients are premium fertilizers that enable farmers to
improve yields and the quality of certain crops. Iodine and its derivatives are mainly used in the X-ray contrast media and biocides
industries and in the production of polarizing film, which is an important component in LCD screens. Lithium and its derivatives
are mainly used in batteries, greases and frits for production of ceramics. Potassium chloride is a commodity fertilizer that
is produced and sold by us worldwide. In addition, we complement our portfolio of plant nutrients through the buying and selling
of other commodity fertilizers for use mainly in Chile. Potassium sulfate is a specialty fertilizer used primarily in crops such
as vegetables, fruits and industrial crops. Industrial chemicals have a wide range of applications in certain chemical processes
such as the manufacturing of glass, explosives and ceramics, and, more recently, industrial nitrates are being used in concentrated
solar power plants as a means for energy storage. In addition, we complement our portfolio of plant nutrients through the buying
and selling of other commodity fertilizers for use mainly in Chile.



For the year ended December 31, 2014, we had revenues of US$2,014.2 million, gross profit of US$583.0
million and profit attributable to controlling interests of US$236.9 million. Our worldwide market capitalization as of December
31, 2014 was approximately US$6.3 billion.



Specialty Plant Nutrition:
We produce four main types of specialty plant nutrients: potassium nitrate, sodium nitrate, sodium potassium nitrate and specialty
blends. Furthermore, we sell other specialty fertilizers including trading of third party products. All of these specialty plant
nutrients are used in either solid or liquid form mainly on high value crops such as vegetables, fruits and flowers. They are
widely used in crops that employ modern agricultural techniques such as hydroponics, greenhousing, fertigation (where fertilizer
is dissolved in water prior to irrigation) and foliar application. According to the type of use or application our products are
primarily marketed under the following brands: UltrasolTM (fertigation), QropTM (open field application), SpeedfolTM
(foliar application) and AllganicTM (organic farming). Specialty plant nutrients have certain advantages over commodity fertilizers,
such as rapid and effective absorption (without requiring nitrification), superior water solubility, increased soil pH (which
reduces soil acidity) and low chloride content. One of the most important products in this business line is potassium nitrate,
which is available in crystalline and prill form, allowing for multiple application methods. Crystalline potassium nitrate products
are ideal for application by fertigation and foliar sprays, and potassium nitrate prills are suitable for soil applications.



27







The needs of more sophisticated customers
are causing the industry to provide solutions rather than individual products. The advantages of our products, plus customized
specialty blends that meet specific needs along with the agronomic service provided, allow us to create plant nutrition solutions
that add value to crops through higher yields and better quality production. Because our products are derived from natural nitrate
compounds or natural potassium brines, they have certain advantages over synthetically produced fertilizers, including the presence
of certain beneficial trace elements, which makes them more attractive to customers who prefer products of natural origin. As
a result, specialty plant nutrients are sold at a premium price compared to commodity fertilizers.



Iodine and its Derivatives:We
believe that we are the world’s leading producer of iodine and iodine derivatives, which are used in a wide range of medical,
pharmaceutical, agricultural and industrial applications, including x-ray contrast media, polarizing films for LCD, antiseptics,
biocides and disinfectants, in the synthesis of pharmaceuticals, herbicides, electronics, pigments and dye components. We market
iodine using the brand QIodineTM.



Lithium and its Derivatives:
We are a leading producer of lithium carbonate, which is used in a variety of applications, including electrochemical materials
for batteries, frits for the ceramic and enamel industries, heat-resistant glass (ceramic glass), air conditioning chemicals,
continuous casting powder for steel extrusion, primary aluminum smelting process, pharmaceuticals and lithium derivatives. We
are also a leading supplier of lithium hydroxide, which is primarily used as an input for the lubricating greases industry and
for certain cathodes for batteries. We market lithium using the following brands: QLithiumCarbonateTM, QLithiumHydroxideTM
and QLubelithTM.



Potassium:We produce potassium
chloride and potassium sulfate from brines extracted from the Salar de Atacama. Potassium chloride is a commodity fertilizer used
to fertilize a variety of crops including corn, rice, sugar, soybean and wheat. Potassium sulfate is a specialty fertilizer used
mainly in crops such as vegetables, fruits and industrial crops. We market potassium chloride using the brand QropTM.



Industrial
Chemicals: We produce four industrial chemicals: sodium nitrate, potassium nitrate, boric acid and potassium chloride.
Sodium nitrate is used primarily in the production of glass, explosives, charcoal briquettes and metal treatment. Potassium nitrate
is used in the manufacturing of specialty glass, and it is also an important raw material for the production of frits for the
ceramics and enamel industries. Solar salts, a combination of potassium nitrate and sodium nitrate, are used as a thermal storage
medium in concentrated solar power plants. Boric acid is used in the manufacture of frits for the ceramics and enamel industries,
LCDs, glass and fiberglass. Potassium chloride is a basic chemical used to produce potassium hydroxide, and it is also used as
an additive in oil drilling as well as in food processing, among other uses. We market our industrial chemicals using the following
brands: QSodiumNitrateTM,QPotassiumNitrateTM,
QPotassiumChlorideTM, QBoricAcidTMand UltrasolTM.



Other Products and Services:We
also sell other fertilizers and blends, some of which we do not produce. We are the only company that produces and distributes
the three main potassium sources: potassium nitrate, potassium sulfate and potassium chloride.



The following table shows the percentage
breakdown of our revenues for 2014, 2013 and 2012 according to our product lines:

|                          |  | 2014 |     |   | 2013 |  |     | 2012 | 
|------------------------- |  | ---- | --- | - | ---- |  | --- | ---- | 
|Specialty Plant Nutrition |  |      | 35  | % |      |  | 31  | %    | 
|Iodine and Derivatives    |  |      | 17  | % |      |  | 21  | %    | 
|Lithium and Derivatives   |  |      | 10  | % |      |  | 9   | %    | 
|Potassium                 |  |      | 29  | % |      |  | 28  | %    | 
|Industrial Chemicals      |  |      | 5   | % |      |  | 7   | %    | 
|Other                     |  |      | 4   | % |      |  | 4   | %    | 
|Total                     |  |      | 100 | % |      |  | 100 | %    | 



28







Business Strategy



Our general
business strategy is to:



| | · | maintain
                                         leadership in specialty plant nutrients, iodine, lithium and industrial nitrates, in
                                         terms of production capacity, competitive pricing and the development of new products;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | maintain
                                         our competitiveness through the continued increase in the efficiency of our production
                                         processes and cost reduction;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | evaluate
                                         and execute acquisitions, joint ventures or commercial alliances which have concrete
                                         synergies with our current core businesses or provide sustainable competitive advantages
                                         and
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | maintain
                                         a solid, conservative financial position and investment grade ratings for our debt securities.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------



We have identified market demand in each
of our major product lines, both within our existing customer base and in new markets, for existing products and for additional
products that can be produced from our natural resources. In order to take advantage of these opportunities, we have developed
specific strategies for each of our product lines.



Specialty Plant Nutrition

Our strategy in our specialty plant nutrition
business is to: (i) continue expanding our sales of natural nitrates by continuing to leverage the advantages of our specialty
products over commodity-type fertilizers; (ii) selectively expand by increasing our sales of higher margin specialty plant nutrients
based on potassium and natural nitrates, particularly soluble potassium nitrate and NPK blends; (iii) pursue investment opportunities
in complementary businesses to enhance our product portfolio, increase production, reduce costs, and add value to and improve
the marketing of our products; (iv) develop new specialty nutrient blends produced in our mixing plants that are strategically
located in or near our principal markets in order to meet specific customer needs; (v) focus primarily on the markets for plant
nutrients in soluble and foliar applications in order to establish a leadership position; (vi) further develop our global distribution
and marketing system directly and through strategic alliances with other producers and global or local distributors; (vii) reduce
our production costs through improved processes and higher labor productivity so as to compete more effectively and (viii) supply
a product with consistent quality according to the requirements of our customers.



Iodine and its Derivatives

Our strategy in our iodine business is
to: (i) increase or at least maintain our market share in the iodine market in order to optimize the use of our available production
capacity; (ii) encourage demand growth and promote new iodine uses; (iii) participate in iodine recycling projects through the
Ajay-SQM Group (“ASG”); (iv) reduce our production costs through improved processes and higher productivity in order
to compete more effectively and (v) supply a product with consistent quality according to the requirements of our customers.



Lithium and its Derivatives

Our strategy in our lithium business is
to: (i) strategically allocate our lithium carbonate and lithium hydroxide sales; (ii) encourage demand growth and promote new
lithium uses; (iii) selectively pursue opportunities in the lithium derivatives business by creating new lithium compounds; (iv)
reduce our production costs through improved processes and higher productivity in order to compete more effectively and (v) supply
a product with consistent quality according to the requirements of our customers.



Potassium

Our strategy in our potassium business
is to: (i) offer a portfolio of potassium products, including potassium sulfate, potassium chloride and other fertilizers, to
our traditional markets; (ii) create flexibility to offer crystalized (standard) or granular (compacted) form products according
to market requirements; (iii) focus on markets where we have logistical advantages and synergies with our specialty plant nutrition
business and (iv) supply a product with consistent quality according to the requirements of our customers.



29







Industrial Chemicals

Our strategy in our industrial chemical
business is to: (i) maintain our leadership position in the industrial nitrates market as well as increase our supply of potassium
chloride in markets where we have natural advantages; (ii) encourage demand growth in different applications; (iii) become a long-term,
reliable supplier for the thermal storage industry; (iv) reduce our production costs through improved processes and higher productivity
in order to compete more effectively and (v) supply a product with consistent quality according to the requirements of our customers.



New Business Ventures

From time to time we evaluate opportunities
to expand in our current core businesses or within new businesses in which we believe we may have sustainable competitive advantages,
both within and outside Chile, and we expect to continue to do so in the future.



We are continuously exploring the possibility
of acquiring controlling interests in companies that have mining properties in our core business areas and are in early stages
of development. Consistent with our business strategy, we will continue to evaluate acquisitions, joint ventures and alliances
in our core businesses and, depending on all facts and circumstances, may seek to acquire controlling stakes or other interests
related to our core businesses both inside and outside of Chile, including other emerging markets.



In addition, we are actively conducting
exploration for metallic minerals in the mining properties we own, through the generation of prospects and the progressive exploration
of such prospects. If such minerals are found, we may decide to exploit, sell or enter into an association to extract these resources.
We have already identified several areas in which we are conducting more targeted exploration, which may lead us to carry out
further studies in order to finally decide how to proceed with any prospect or prospects of interest. We have flexibility in determining
which strategy we consider appropriate, depending on the characteristics of each prospect. We may also decide not to move
forward with any potential metallic prospects discovered from our exploration operations. Between 2011 and 2014 exploration expenses
have averaged US$8.5 million per year, while for 2015 expenses are not expected to exceed US$5 million as a result of a new strategy
to optimize our exploration plan.



In parallel to our own exploration operations,
as of March 2015, we had 12 option agreements in effect with third parties and mining companies related to metallic mineral exploration. In
all these agreements, we retain the rights over the caliche ore, which contains nitrates, iodine and potassium, among others.
We continue to develop our program of exploration alliances with third parties through option contracts, in particular through
minority participation and maintaining royalties on sales if the prospect is exploited. These alliances have enabled us to finance
the metallic exploration efforts carried out by SQM. Our current plan is to achieve and maintain closer to one million hectares
under exploration alliances and maintain exploration investment of approximately US$20 million per year by our current and future
partners in these exploration alliances.



Main Business Lines



Specialty Plant Nutrition



We believe we are the world’s largest
producer of potassium nitrate. We estimate that our sales accounted for approximately 46% of global potassium nitrate sales by
volume in 2014. This estimate does not include potassium nitrate produced and sold locally in China, only net imports/exports.
During 2014, the potassium nitrate market grew around 10% (considering only agricultural use of potassium nitrate, and excluding
sales by Chinese producers to the domestic Chinese market), with global sales exceeding one million metric tons. This was due
in part to the substitution of potassium nitrate for potassium sulfate and also to the more competitive pricing between these
chloride-free sources of potassium. We also produce the following specialty plant nutrients: sodium nitrate, sodium potassium
nitrate and specialty blends (containing various combinations of nitrogen, phosphate and potassium and generally known as “NPK
blends”).



30







These specialty plant nutrients have specific
characteristics that increase productivity and enhance quality when used on certain crops and soils. Our specialty plant nutrients
have significant advantages for certain applications over commodity fertilizers based on nitrogen and potassium, such as urea
and potassium chloride.



In particular, our specialty plant nutrients:



| | · | are
                                         fully water soluble, allowing their use in hydroponics, fertigation, foliar applications
                                         and other advanced agricultural techniques;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | improve
                                         the water use efficiency of crops and help conserve water;
| | - | -----------------------------------------------------------------------------------------------------------

| | · | are
                                         chloride-free, which prevents chloride toxicity in certain crops associated with high
                                         levels of chlorine in plant nutrients;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | provide
                                         nitrogen in nitric form, thereby allowing crops to absorb nutrients faster than they
                                         absorb urea or ammonium-based fertilizers;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | do
                                         not release hydrogen after application, thereby avoiding increased soil acidity;
| | - | ----------------------------------------------------------------------------------------------------------------------------

| | · | possess
                                         trace elements, which promote disease resistance in plants and
| | - | ---------------------------------------------------------------------------------------------------------------

| | · | are
                                         more attractive to customers who prefer products of natural origin.
| | - | ----------------------------------------------------------------------------------------------------------------



In 2014, our specialty plant nutrients
sales increased to US$708.0 million, representing 35% of our total sales for that year and a 3.0% increase from US$687.5 million
specialty plant nutrients sales in 2013. This increase was a result of higher sales volumes, which increased 3.6% in 2014.



Specialty Plant Nutrition: Market



The target market for our specialty plant
nutrients includes producers of high-value crops such as vegetables, fruits, industrial crops, flowers, cotton and others. Furthermore,
we sell specialty plant nutrients to producers of chloride-sensitive crops. Since 1990, the international market for specialty
plant nutrients has grown at a faster rate than the international market for commodity-type fertilizers. This is mostly due to:
(i) the application of new agricultural technologies such as fertigation and hydroponics, and the increasing use of greenhouses;
(ii) the increase in the cost of land and the scarcity of water, which has forced farmers to improve their yields and reduce water
use; and (iii) the increase in demand for higher quality crops, such as fruits and vegetables.



Over the last 10 years, the compound annual
growth rate for vegetable production per capita was 3.0% while the compound annual growth rate for the world population was only
1.5%.



Worldwide scarcity of water and arable
land drives the development of new agricultural techniques to maximize the use of these resources. Irrigation has grown at an
average annual rate of 1.5% during the last 20 years (a pace equal with population growth). However, micro-irrigation has grown
at 10% per year over the same period. Microirrigation systems, which include drip-irrigation and micro-sprinklers, are the most
efficient forms of technical irrigation. These applications require fully water-soluble plant nutrients. Our nitrate-based specialty
plant nutrients provide nitrogen in nitric form, which helps crops absorb these nutrients faster than they absorb urea- or ammonium-based
fertilizers, facilitating a more efficient application of nutrients to the plant and thereby increasing the crop’s yield
and improving its quality.



31







Asia is the region with the lowest ratio
(micro-irrigation/total irrigated hectares) in the world, reaching around 3%. This represents a high potential for this technology,
which is reflected in the high growth rates in recent years. For example, the growth rate of hectares under micro-irrigation in
China is estimated to have exceeded 6% in 2014.



The market for potassium nitrate in China
is 385,000 to 400,000 metric tons, of which approximately 150,000 is related to the tobacco industry and 75,000 to 80,000 is related
to the horticulture business. Of the total, between 40,000 and 50,000 metric tons are imports.



Specialty Plant Nutrition: Our Products



Potassium nitrate, sodium potassium nitrate
and specialty blends are higher margin products derived from, or consisting of, sodium nitrate, and they are all produced in crystallized
or prilled form. Specialty blends are produced using our own specialty plant nutrients and other components at blending plants
operated by us or our affiliates and related companies in Chile, the United States, Mexico, United Arab Emirates, South Africa,
Turkey, China, India, Thailand, Brazil and Peru.



The following table shows our sales volumes
of and revenues from specialty plant nutrients for 2014, 2013 and 2012:

|                                               |  | 2014 |       |  | 2013 |  |       | 2012 | 
|---------------------------------------------- |  | ---- | ----- |  | ---- |  | ----- | ---- | 
|Sales Volume (Th. MT)                          |  |      |       |  |      |  |       |      | 
|Sodium nitrate                                 |  |      | 15.8  |  |      |  | 26.2  |      | 
|Potassium nitrate and sodium potassium nitrate |  |      | 531.6 |  |      |  | 512.6 |      | 
|Specialty blends(1)                            |  |      | 228.0 |  |      |  | 208.1 |      | 
|Other specialty plant nutrients(2)             |  |      | 102.5 |  |      |  | 100.8 |      | 
|Total Revenues(in US$ millions)                |  |      | 708.0 |  |      |  | 687.5 |      | 



| | (1) | Includes Yara’s products sold pursuant to our commercial
agreement.
| | --- | -------------------------------------------------------------------

| | (2) | Includes trading of other specialty fertilizers.
| | --- | ------------------------------------------------



Depending on the systems used to apply
specialty nutrients, fertilizers can be classified as specialty field fertilizers or water-soluble fertilizers.



Specialty field fertilizers are applied
directly to the soil, manually or in a mechanized fashion. Their high solubility levels, lack of harmful chlorine and absence
of acidic reactions make them particularly advantageous for tobacco, potatoes, coffee, cotton and a wide range of fruits and vegetables.



Water-soluble fertilizers are specialty
nutrients that are delivered to the crops using modern irrigation systems. As these systems feature refined technology, the products
used in them must be highly soluble, rich in nutrients, free of impurities and insoluble substances, and with a low salinity index.
The leading nutrient in this segment is potassium nitrate, whose optimal balance of nitric nitrogen and chlorine-free potassium
(the two macronutrients most needed by plants) make it an indispensable source of nutrition for crops that use modern irrigation
systems.



In addition, potassium nitrate is widely
known to be a vital component in foliar feeding applications, where usage is recommended in order to stave off nutritional deficiencies
before the first symptoms appear, correct any deficiencies that arise and prevent physiological stress. This nutrient also helps
promote a suitable balance between fruit production and/or growth, and plant development, particularly in crops with physiological
disorders.



32







Foliar feeding with potassium nitrate
can have beneficial effects:



| | · | when
                                         soil chemistry limits nutrient solubility and availability (pH, organic matter, type
                                         and percentage of clay);
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | when
                                         nutrient absorption through the roots is limited as a result of conditions that hamper
                                         root growth (temperature, moisture, oxygen and loss of soil structure);
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | when
                                         the plant’s local internal demand may surpass real internal nutrient redistribution
                                         capacity, leaving the demand unsatisfied;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | when
                                         nutrient mobility is limited, when plants flower before the leaf growth phase, imposing
                                         limiting factors on xylem nutrient transport; and
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | to
                                         promote rapid recovery from leaf stress caused by climatic conditions, soil conditions
                                         and irrigation management.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



In addition to these products, SQM has
consolidated a product portfolio of over 200 specialty fertilizer blends, including top brands such as UltrasolTM,
for fertigation; QropTM, for application to the soil; SpeedfolTM, for foliar feeding; and AllganicTM,
for organic crops.



Specialty
Plant Nutrition: Marketing and Customers



In 2014, we sold our specialty plant nutrients
in over 85 countries. During the same year, sales of our specialty plant nutrients were as per the table below. No single customer
represented more than 10% of our specialty plant nutrient sales during 2014, and we estimate that our 10 largest customers accounted
in the aggregate for approximately 34% of sales during that period. No supplier accounted for more than 10% of the costs of sales
for this business line.



|Sales Breakdown           |  | 2014 |    |   | 2013 |  |    | 2012 | 
|------------------------- |  | ---- | -- | - | ---- |  | -- | ---- | 
|North America             |  |      | 30 | % |      |  | 27 | %    | 
|Europe                    |  |      | 21 | % |      |  | 20 | %    | 
|Central and South America |  |      | 31 | % |      |  | 32 | %    | 
|Asia and Others           |  |      | 18 | % |      |  | 21 | %    | 



We sell our specialty plant nutrition
products outside Chile mainly through our own worldwide network of representative offices and through our distribution affiliates.



We maintain stocks of our specialty plant
nutrients in the main markets of the Americas, Asia, Europe, the Middle East and Africa in order to facilitate prompt deliveries
to customers. In addition, we sell specialty plant nutrients directly to some of our large customers. Sales are made pursuant
to spot purchase orders and short-term contracts.



In connection with our marketing efforts,
we provide technical and agronomical assistance and support to some of our customers. By working closely with our customers, we
are able to identify new, higher-value-added products and markets. Our specialty plant nutrients are used on a wide variety of
crops, particularly value-added crops, where the use of our products enables our customers to increase yield and command a premium
price.



In 2013, we launched the global SpeedfolTM
Crop SP project in order to promote a range of crop-specific, predominantly potassium nitrate-based, locally-produced, water-soluble
NPK formulations for foliar spray applications. The SpeedfolTM Crop SP project has a duration of five years and targets a
variety of crops such as cereals grains, citrus, mango, cotton, soybean and coffee, in countries such as Brazil, China, India,
Mexico, South Africa and the United States of America. Scientifically proven benefits of SpeedfolTM Crop SP applications
include increased yields, better quality (such as larger-sized fruits) and reduced crop losses (such as less premature fruit drop
and lower lodging incidence in cereals).



33







Our customers are located in both the
northern and southern hemispheres. Consequently, we do not believe there are any seasonal or cyclical factors that can materially
affect the sales of our specialty plant nutrients.



Specialty Plant Nutrition: Joint
Ventures and Agreements



Consistent with our business strategy,
from time to time we evaluate opportunities to expand in our current core businesses, including our specialty plant nutrition
business, or within new businesses in which we believe we may have sustainable competitive advantages. We evaluate potential acquisitions,
joint ventures and alliances with companies both within and outside of Chile, including in other emerging markets.



In May 2008, we signed a commitment letter
for a joint venture with Migao Corporation (“Migao”) for the production and distribution of specialty plant nutrients
in China. Through the joint venture, we constructed a potassium nitrate plant with a production capacity of 40,000 metric tons
per year. The plant began operating in January 2011, and has allowed us to increase our presence in China, which is one of the
most important and fastest growing markets for the fertilizer industry.



In May 2009, our subsidiary Soquimich
European Holdings entered into an agreement with Coromandel Fertilizers Ltd. to create a joint venture for the production and
distribution of water soluble fertilizers in India. The agreement established a 50⁄50 contribution to the joint venture.
As part of the agreement, a new 15,000 metric ton facility was constructed in the city of Kakinada to produce water soluble NPK
grade fertilizers. This new facility began operating in January 2012.



In December 2009, we signed an agreement
with the French Roullier Group to form the joint venture SQM Vitas. This agreement joins two of the largest companies in the businesses
of specialty plant nutrition, specialty animal nutrition and professional hygiene. Peru, Brazil and South Africa are the main
focus markets of this joint venture, and Dubai is the main productive unit. As part of the agreement, our phosphate plant located
in Dubai became part of this joint venture.



In 2012, SQM Vitas started the construction
of new plants in Brazil (Candeias), Peru and South Africa (Durban) for the production of water soluble fertilizers containing
different relative amounts of nitrogen, phosphorus and potassium, and at times, smaller amounts of other chemicals. The Candeias
Industrial Complex plant in Brazil began operating in March 2012 and has a production capacity of 25,000 metric tons per year.



Between 2010 and 2012, we continued to
expand our production capacity of potassium products in our operations in the Salar de Atacama. In 2011, we completed the construction
of a new potassium nitrate facility in Coya Sur, increasing our overall production capacity of potassium nitrate by 300,000 metric
tons.



In 2013, the operations of SQM Vitas in
Spain began with a water soluble NPK fertilizer plant that has a production capacity of 15,000 metric tons per year.



During 2013, the marketing activities
of our joint ventures integrated in SQM (Beijing). This change aims to enhance the efficiency of distribution channels for fertilizer
products by consolidating marketing into a unified brand and management team, thus reducing costs. In addition, our strategy in
this segment is to increase production of water soluble fertilizers and extend our technologies and their applications in order
to increase popularity and expand the use of these products.



34







On March 8, 2013, SQM VITAS acquired the
Controlled Release Fertilizer (“CRF”) Technology and Plantacote® business and brand name from AGLUKON. Plantacote®
is highly efficient in nutrient utilization and is environmentally friendly due to prevention of leaching, volatilization and
fixation of nutrients in the soils as well as the degradation of the coating by microorganisms after complete nutrient release.
The unique coating technology and quality standards make Plantacote® very reliable for growing high-quality plants. This new
global facility will produce both premium and standard CRFs under the Plantacote® brand name in order to supply worldwide
customers that are active in horticulture, agriculture, turf, growing media and consumer markets. Due to this acquisition, SQM
VITAS will be able to further expand its current product portfolio of specialty plant nutrition solutions for the benefit of its
customers.



In December 2014, an asset transfer agreement
was signed between Plantacote BV and Plantacote NV (a new company that is 99.99% owned by Doctor Tarsa, which is a company that
was created in 2000 in which SQM holds a 50% stake). As a result of this agreement, the business and Plantacote® brand were
transferred to the new company Plantacote NV, but with no changes to the business or the CRF project. SQM continues to hold a
50% ownership stake in the company.



Specialty Plant Nutrition: Fertilizer
Sales in Chile



We market specialty plant nutrients in
Chile through our subsidiary Soquimich Comercial S.A. (SQMC).



SQMC is currently one of the main players
in the Chilean market, offering a wide range of products developed specifically for the crops grown in the country. As specialty
plant nutrients have differentiating qualities with respect to traditional fertilizers, they play a key role in this market.



SQMC sells local products as well as products
imported from different countries around the world, including China, Mexico and Venezuela.



All contracts and agreements between Soquimich
Comercial S.A. and its foreign suppliers of fertilizers generally contain standard and customary commercial terms and conditions.
SQMC has been able to obtain adequate supplies of these products with good pricing conditions.



Soquimich Comercial S.A.’s sales
of fertilizers represented approximately 30% of total fertilizer sales in Chile during 2014. Soquimich Comercial S.A.’s
consolidated revenues were approximately US$214 million and US$230 million in 2014 and 2013, respectively.



Specialty Plant Nutrition: Competition



We believe we are the world’s largest
producer of sodium and potassium nitrate for agricultural use. Our sodium nitrate products compete indirectly with specialty and
commodity-type substitutes, which may be used by some customers instead of sodium nitrate depending on the type of soil and crop
to which the product will be applied. Such substitute products include calcium nitrate, ammonium nitrate and calcium ammonium
nitrate.



In the potassium nitrate market our largest
competitor is Haifa Chemicals Ltd. (“Haifa”), in Israel, which is a subsidiary of Trans Resources International Inc.
We estimate that sales of potassium nitrate by Haifa accounted for approximately 31% of total world sales during 2014 (excluding
sales by Chinese producers to the domestic Chinese market), compared to our share of the market which accounted for approximately
46% of global potassium nitrate sales by volume for the period.



ACF, another Chilean producer, mainly
oriented to iodine production, has produced potassium nitrate from caliche ore and potassium chloride since 2005. Kemapco, a Jordanian
producer owned by Arab Potash, produces potassium nitrate in a plant located close to the Port of Aqaba, Jordan. In addition,
there are several potassium nitrate producers in China, the largest of which are Yuantong (Qinghai Salt Lake 75.5% and Wentong
24.5%) and Migao. Most of the Chinese production is consumed by the Chinese domestic market.



35







The principal means of competition in the sale of potassium
nitrate are product quality, customer service, location, logistics, agronomic expertise and price.



In Chile, our products mainly compete
with imported fertilizer blends that use calcium ammonium nitrate or potassium magnesium sulfate. Our specialty plant nutrients
also compete indirectly with lower-priced synthetic commodity-type fertilizers such as ammonia and urea, which are produced by
many producers in a highly price-competitive market. Our products compete on the basis of advantages that make them more suitable
for certain applications as described above.



Iodine and its Derivatives



We believe we are the world’s largest
producer of iodine. In 2014, our revenues from iodine and iodine derivatives amounted to US$335.4 million, representing 17% of
our total revenues in that year. We estimate that our sales accounted for approximately 26% of world iodine sales by volume in
2014.



Iodine: Market



Iodine and iodine derivatives are used
in a wide range of medical, agricultural and industrial applications as well as in human and animal nutrition products. Iodine
and iodine derivatives are used as raw materials or catalysts in the formulation of products such as X-ray contrast media, biocides,
antiseptics and disinfectants, pharmaceutical intermediates, polarizing films for LCDs, chemicals, herbicides, organic compounds
and pigments. Iodine is also added in the form of potassium iodate or potassium iodide to edible salt to prevent iodine deficiency
disorders.



X-ray contrast media is the leading application
of iodine, accounting for 22% of demand. Iodine’s high atomic number and density make it ideally suited for this application,
as its presence in the body can help to increase contrast between tissues, organs, and blood vessels with similar X-ray densities.
Other applications include pharmaceuticals, which account for 13% of demand; iodophors and povidone-iodine, 12%; LCD screens,
12%; animal nutrition, 8%; fluoride derivatives, 7%; biocides, 5%; nylon, 4% and human nutrition, 3%.



We have seen consistent growth in the
iodine market over the last ten years, with the exception of 2009, which was affected by the global financial crisis, with demand
being led by uses related to X-ray contrast media and pharmaceuticals. During 2014, iodine demand grew moderately compared to
2013 as a result of inertia following the high prices observed in the industry from 2011 to 2013. However, the lower prices observed
during 2014 have continued, which could have a positive effect on demand growth in 2015. We estimate that the global market size
in 2014 was approximately 31,600 metric tons, with around 56% of supply coming from Chilean producers, including us.



Iodine: Our Products



We produce iodine in our Nueva Victoria
plant, near Iquique, and our Pedro de Valdivia plant, close to María Elena. We have a total production capacity of approximately
13,300 metric tons per year of iodine, including the Iris plant, which is located next to the Nueva Victoria plant.



Through ASG, we produce organic and inorganic
iodine derivatives. ASG was established in the mid-1990s and has production plants in the United States, Chile and France. ASG
is the world’s leading inorganic and organic iodine derivatives producer.



Consistent with our business strategy,
we are constantly working on the development of new applications for our iodine-based products, pursuing a continuing expansion
of our businesses and maintaining our market leadership.



36







We manufacture our iodine and iodine derivatives
in accordance with international quality standards and have qualified our iodine facilities and production processes under the
ISO-9001:2008 program, providing third party certification of the quality management system and international quality control
standards that we have implemented.



The following table shows our total sales
and revenues from iodine and iodine derivatives for 2014, 2013 and 2012:

|                          |  | 2014 |       |  | 2013 |  |       | 2012 | 
|------------------------- |  | ---- | ----- |  | ---- |  | ----- | ---- | 
|Sales Volume(Th. MT)      |  |      |       |  |      |  |       |      | 
|Iodine and derivatives    |  |      | 8.8   |  |      |  | 9.3   |      | 
|Revenues(in US$ millions) |  |      | 335.4 |  |      |  | 461.0 |      | 



Our sales revenues decreased from US$461.0
million in 2013 to US$335.4 million in 2014. This decrease was primarily attributable to the decrease in iodine prices during
2014. Average iodine prices were more than 20% lower in 2014 when compared to 2013.



Iodine: Marketing and Customers



In 2014, we sold our iodine products to
approximately 260 customers in over 60 countries, and most of our sales were exports: 31% was sold to customers in North America,
35% to customers in Europe, 4% to customers in Central and South America, and 30% to customers in Asia and other regions. Only
two customers accounted for more than 10% of our iodine sales in 2014. Together, these two customers accounted for approximately
31% of sales, and we estimate that our ten largest customers accounted in the aggregate for approximately 61% of sales. No supplier
accounted for more than 10% of the cost of sales of this business line.



The following table shows the geographical
breakdown of our sales for 2014, 2013 and 2012:



|Sales Breakdown         |  | 2014 |    |   | 2013 |  |    | 2012 | 
|----------------------- |  | ---- | -- | - | ---- |  | -- | ---- | 
|North America           |  |      | 31 | % |      |  | 35 | %    | 
|Europe                  |  |      | 35 | % |      |  | 36 | %    | 
|Central & South America |  |      | 4  | % |      |  | 4  | %    | 
|Asia and Others         |  |      | 30 | % |      |  | 25 | %    | 



We sell iodine through our own worldwide
network of representative offices and through our sales, support and distribution affiliates. We maintain inventories of iodine
at our facilities throughout the world to facilitate prompt delivery to customers. Iodine sales are made pursuant to spot purchase
orders or within the framework of supply agreements. Supply agreements generally specify annual minimum and maximum purchase commitments,
and prices are adjusted periodically, according to prevailing market prices.



Iodine: Competition



The world’s main iodine producers
are based in Chile, Japan and the United States. Iodine is also produced in Russia, Turkmenistan, Azerbaijan, Indonesia and China.



Iodine is produced in Chile using a unique
mineral known as caliche ore, whereas in Japan, the United States, Russia, Turkmenistan, Azerbaijan, and Indonesia, producers
extract iodine from underground brines that are mainly obtained together with the extraction of natural gas and petroleum. In
China, iodine is extracted from seaweed.



37







Six Chilean companies accounted for approximately
56% of total global sales of iodine in 2014, including SQM, with approximately 26%, and five other producers, accounting for the
remaining 30%. The other Chilean producers are: Atacama Chemical S.A. (Cosayach), controlled by the Chilean holding Inverraz S.A.;
ACF Minera S.A. owned by the Chilean family De Urruticoechea; Algorta Norte S.A., a joint venture between ACF Minera S.A. and
Toyota Tsusho; SCM Bullmine and RB Energy (a Canadian company previously known as Sirocco Mining Inc. or as Atacama Minerals).



We estimate that eight Japanese iodine
producers accounted for approximately 31% of global iodine sales in 2014, including recycled iodine.



We estimate that iodine producers in the
United States (one of which is owned by Ise Chemicals Ltd., a Japanese company) accounted for 5% of world iodine sales in 2014.



Iodine recycling is a growing trend worldwide.
Several Japanese producers have recycling facilities where they recover iodine and iodine derivatives from iodine waste streams.
Iodine recycling, mainly related to LCD consumption, has increased over the past few years and currently represents approximately
17% of world iodine sales. It is estimated that approximately 74% of total world iodine recycling was done by Japanese iodine
producers.



We, through ASG or alone, are also actively
participating in the iodine recycling business using iodinated side-streams from a variety of chemical processes in Europe and
the United States.



The prices of iodine and iodine derivative
products are determined by market conditions. World iodine prices vary depending upon, among other things, the relationship between
supply and demand at any given time. Iodine supply varies primarily as a result of the production levels of the iodine producers
(including us) and their respective business strategies. Our annual average iodine sales prices decreased to approximately US$38
per kilogram in 2014, as a result of supply growth outpacing demand growth.



Demand for iodine varies depending upon
overall levels of economic activity and the level of demand in the medical, pharmaceutical, industrial and other sectors that
are the main users of iodine and iodine-derivative products. Certain substitutes for iodine are available for certain applications,
such as antiseptics and disinfectants, which could represent a cost-effective alternative to iodine depending on prevailing prices.



The main factors of competition in the
sale of iodine and iodine derivative products are reliability, price, quality, customer service and the price and availability
of substitutes. We believe we have competitive advantages compared to other producers due to the size and quality of our mining
reserves and the available production capacity. We believe our iodine is competitive with that produced by other manufacturers
in certain advanced industrial processes. We also believe we benefit competitively from the long-term relationships we have established
with our largest customers.



Lithium and its Derivatives



We believe we are one of the world’s
largest producers of lithium carbonate and lithium hydroxide. In 2014, our revenues from lithium sales amounted to US$206.8 million,
representing 10% of our total revenues. We estimate that our sales accounted for approximately 27% of the sale of global lithium
chemicals sales by volume.



Lithium: Market



Lithium is mainly marketed as lithium
carbonate. The next most traded compound is lithium hydroxide. Both of these compounds are used to produce the cathodes for rechargeable
batteries, taking advantage of lithium’s extreme electrochemical potential and low density. Batteries are the leading application
for lithium, accounting for 46% of total demand. Lithium carbonate is also used in applications such as ceramic and enamel frits
(5% of demand), heat resistant glass (ceramic glass) (5% of demand), air conditioning chemicals (4% of demand), continuous casting
powder for steel extrusion (2% of demand), primary aluminum smelting process (1% of demand), and others, including the synthesis
of pharmaceuticals and lithium derivatives.



38







Lithium hydroxide is primarily used as
a raw material in the lubricating grease industry (11% of demand), as well as in the dyes and the battery industries.



Lithium’s main properties, which
facilitate its use in this range of applications, are:

| | · | it
                                         is the lightest solid element at room temperature;
| | - | ----------------------------------------------------------------------------------------------

| | · | it
                                         has a low coefficient of thermal expansion;
| | - | ---------------------------------------------------------------------------------------

| | · | it
                                         has high electrochemical potential and low density and
| | - | --------------------------------------------------------------------------------------------------

| | · | it
                                         is the solid with the highest specific heat capacity.
| | - | -------------------------------------------------------------------------------------------------



During 2014, lithium chemicals demand
increased by approximately 9%, reaching approximately 142,000 metric tons, with close to 50% supplied by Chilean producers. We
expect applications related to energy storage to continue driving demand in the coming years.



Lithium: Our Products



We produce lithium carbonate at our Salar
del Carmen facilities, near Antofagasta, Chile, from solutions with high concentrations of lithium, in the form of lithium chloride,
coming from the potassium chloride production at the Salar de Atacama. The annual production capacity of our lithium carbonate
plant is 48,000 metric tons per year. We believe that the technologies we use, together with the high concentrations of lithium
and unique characteristics of the Salar de Atacama, such as high evaporation rate and concentration of other minerals, allow us
to be one of the lowest cost producers worldwide.



We also produce lithium hydroxide at our
facilities at the Salar del Carmen, next to the lithium carbonate operation. The lithium hydroxide facility has a production capacity
of 6,000 metric tons per year and is one of the largest plants in the world.



The following table shows our total sales
and revenues from lithium carbonate and its derivatives for 2014, 2013 and 2012:



|                          |  | 2014 |       |  | 2013 |  |       | 2012 | 
|------------------------- |  | ---- | ----- |  | ---- |  | ----- | ---- | 
|Sales Volume(Th. MT)      |  |      |       |  |      |  |       |      | 
|Lithium and derivatives   |  |      | 39.5  |  |      |  | 36.1  |      | 
|Revenues(in US$ millions) |  |      | 206.8 |  |      |  | 196.5 |      | 



Our revenues in 2014 were US$206.8 million,
a 5.3% increase from US$196.5 million in 2013, due to higher sales volumes supported by strong demand growth.



Lithium: Marketing and Customers



In 2014, we sold our lithium products
to over 220 customers in around 50 countries. Only one customer accounted for more than 10% of our lithium sales in 2014, accounting
for approximately 11% of lithium sales. We estimate that our 10 largest customers accounted in aggregate for approximately 58%
of sales. Only one supplier accounted for over 10% of the cost of sales of this business line, accounting for approximately 13%
of the cost of sales.



39







The following table shows the geographical
breakdown of our sales for 2014, 2013 and 2012:



|Sales Breakdown         |  | 2014 |    |   | 2013 |  |    | 2012 | 
|----------------------- |  | ---- | -- | - | ---- |  | -- | ---- | 
|North America           |  |      | 11 | % |      |  | 12 | %    | 
|Europe                  |  |      | 22 | % |      |  | 25 | %    | 
|Central & South America |  |      | 1  | % |      |  | 2  | %    | 
|Asia and Others         |  |      | 66 | % |      |  | 62 | %    | 



We sell lithium carbonate and lithium
hydroxide through our own worldwide network of representative offices and through our sales, support and distribution affiliates.
We maintain inventories of these products at our facilities throughout the world to facilitate prompt delivery to customers. Sales
of lithium carbonate and lithium hydroxide are made pursuant to spot purchase orders or within the framework of supply agreements.
Supply agreements generally specify annual minimum and maximum purchase commitments, and prices are adjusted periodically, according
to prevailing market prices.



Lithium: Competition



Our main competitors in the lithium carbonate
and lithium hydroxide businesses are Rockwood Lithium (“Rockwood”), which was recently acquired by Albemarle and which,
according to our estimates, has a market share of approximately 22%, and FMC Corporation (“FMC”), which has an estimated
market share of approximately 12%. In addition, a number of Chinese producers together accounted for approximately 37% of the
world market in 2014, by volume. Rockwood produces lithium carbonate at its operations in Chile and in Nevada, United States.
Its production of downstream lithium products is mostly performed in the United States, Germany and Taiwan. Rockwood and Tianqi
are 49%/51% partners in Talison Lithium Pty Ltd., an Australian company that produces lithium mineral concentrate in Western Australia.
Tianqi is in the process of purchasing Galaxy, an Australian company that has a lithium carbonate plant in China. FMC has production
facilities in Argentina through Minera del Altiplano S.A., where it produces lithium chloride and lithium carbonate. Production
of its downstream lithium products is mostly performed in the United States and the United Kingdom.



We believe that lithium production will
increase in the near future, balancing the expected growth in demand. Recently, Orocobre began operating in Argentina, and a number
of new projects to develop lithium deposits have been announced recently. Some of these projects are already under advanced development
and others could materialize in the medium term.



Potassium



We produce potassium chloride and potassium
sulfate by extracting brines from the Salar de Atacama that are rich in potassium chloride and other salts.



Since 2009, our end product capacity has
increased to over 2 million metric tons per year, granting us improved flexibility and market coverage.



In 2014, our potassium chloride and potassium
sulfate revenues amounted to US$584.3 million, representing 29% of our total revenues and a 3.6% decrease compared to 2013.



Potassium is one of the three macronutrients
that a plant needs to develop. Although potassium does not form part of a plant’s structure, it is essential to the development
of its basic functions. Potassium chloride is the most commonly used potassium-based fertilizer. It is used to fertilize crops
that can tolerate relatively high levels of chloride, and to fertilize crops that are grown under conditions with sufficient rainfall
or irrigation practices that prevent chloride from accumulating to excess levels in the rooting systems of the plant.



Some benefits that may be obtained through
the use of potassium are:

| | · | increased
                                         yield and quality;
| | - | ---------------------------------------------------------------------

| | · | increased
                                         production of proteins;
| | - | --------------------------------------------------------------------------



40







| | · | increased
                                         photosynthesis;
| | - | ------------------------------------------------------------------

| | · | intensified
                                         transport and storage of assimilates;
| | - | ------------------------------------------------------------------------------------------

| | · | prolonged
                                         and more intense assimilation period;
| | - | ----------------------------------------------------------------------------------------

| | · | improved
                                         water efficiency;
| | - | -------------------------------------------------------------------

| | · | regulated
                                         opening and closure of stomata and
| | - | -------------------------------------------------------------------------------------

| | · | synthesis
                                         of lycopene.
| | - | ---------------------------------------------------------------



Potassium chloride is also an important
component for our specialty plant nutrition product line, where it is used as a raw material to produce potassium nitrate.



Potassium: Market



During the last decade, the potassium
chloride market has experienced rapid growth due to several key factors such as a growing world population, higher demand for
protein-based diets and less arable land. All of these factors have contributed to growing demand for fertilizers and, in particular,
potassium chloride, as efforts are being made to maximize crop yields and use resources more efficiently. For the last 10 years,
the compound annual growth for the global potassium chloride market was approximately 2.3%.



According to the most recent studies prepared
by the International Fertilizer Industry Association from 2010 to 2011, cereals received 10.3 MT K2O, (i.e., 37.4% of world K
consumption, with a low contribution of wheat (6.2%) compared to rice (12.6%) and maize (14.9%)). In contrast, oilseeds represented
19.8% of the total (5.4 MT K2O), with more than four fifths being applied to soybean (9.0%) and oil palm (7.2%) together. K fertilizer
use on fibre crops and roots and tubers was modest (2.8 and 3.8%, respectively) compared to sugar crops (7.7%) and fruits and
vegetables (16.6%). The remaining 11.8% were applied to other crops.



Demand in the potassium chloride market
increased in 2014. We estimate that demand reached between 61 and 62 million metric tons for potassium chloride during 2014, an
increase of approximately 15% as compared to 2013, with record levels of shipments from the producers Uralkali, in Russia, and
Belaruskali, in Belarus. Demand was affected by the economic uncertainty from the previous year, as some customers pushed their
purchases back from the second half of 2013 to 2014. We do not expect to see demand growth in 2015.



Average prices in the potassium market
decreased significantly during 2013 and the first quarter of 2014 due to unusual events. Uralkali, a leading company in the potash
market, abandoned the business arrangement that it held with BPC and generated market uncertainty which affected the commodity’s
price levels. Beginning in the second quarter of 2014, the price slowly began to recover, but prices did not return to the levels
prevailing prior to these events.



Potassium: Our Products



Potassium chloride differs from our specialty
plant nutrition products because it is a commodity fertilizer and contains chloride. We offer potassium chloride in two grades:
standard and compacted. Potassium sulfate is considered a specialty fertilizer and we offer three grades: standard, compacted
and soluble.



The following table shows our sales volumes
of and revenues from potassium chloride and potassium sulfate for 2014, 2013 and 2012:



|                                       |  | 2014 |         |  | 2013 |  |         | 2012 | 
|-------------------------------------- |  | ---- | ------- |  | ---- |  | ------- | ---- | 
|Sales Volume(Th. MT)                   |  |      |         |  |      |  |         |      | 
|Potassium chloride & potassium sulfate |  |      | 1,556.2 |  |      |  | 1,434.9 |      | 
|Revenues(in US$ millions)              |  |      | 584.3   |  |      |  | 606.3   |      | 



41







Potassium: Marketing and Customers



In 2014, we sold potassium chloride and
potassium sulfate in over 60 countries. No single customer accounted for more than 11% of our sales of potassium chloride and
potassium sulfate in 2014, and we estimate that our 10 largest customers accounted in the aggregate for approximately 47% of such
sales. One supplier accounted for 12% of the cost of sales for the business line and was the only supplier representing more than
10% of the cost of sales of this business line.

The following table shows the geographical
breakdown of our sales for 2014, 2013 and 2012:



|Sales Breakdown         |  | 2014 |    |   | 2013 |  |    | 2012 | 
|----------------------- |  | ---- | -- | - | ---- |  | -- | ---- | 
|North America           |  |      | 23 | % |      |  | 17 | %    | 
|Europe                  |  |      | 13 | % |      |  | 16 | %    | 
|Central & South America |  |      | 45 | % |      |  | 44 | %    | 
|Asia and Others         |  |      | 19 | % |      |  | 23 | %    | 



Potassium: Competition



We estimate that we accounted for less
than 3% of global sales of potassium chloride in 2014. Our main competitors are Uralkali, PCS, Belaruskali and Mosaic. We estimate
that in 2014, Uralkali accounted for approximately 18% of global sales, PCS around 15%, Mosaic around 14%, and Belaruskali approximately
13% of global sales.



In the potassium sulfate market, we have
several competitors, of which the most important are K+S KALI GmbH (Germany), Tessenderlo Chemie (Belgium) and Great Salt Lake
Minerals Corp. (United States). We estimate that these three producers account for approximately 30% of the worldwide production
of potassium sulfate. SQM accounts for less than 2% of global production.



Industrial Chemicals



In addition to producing sodium and potassium
nitrate for agricultural applications, we produce different grades of these products for industrial applications. The different
grades differ mainly in their chemical purity. We enjoy certain operational flexibility when producing industrial nitrates, because
they are produced from the same process as their equivalent agricultural grades, needing only an additional step of purification.
We may, with certain constraints, shift production from one grade to the other depending on market conditions. This flexibility
allows us to maximize yields and to reduce commercial risk.



In addition to producing industrial nitrates,
we produce and market other industrial chemicals such as industrial-grade potassium chloride and boric acid, a by-product of the
production of potassium sulfate.



In 2014, our revenues from industrial
chemicals were US$101.9 million, representing approximately 5% of our total revenues for that year.



Industrial Chemicals: Market



Industrial sodium and potassium nitrates
are used in a wide range of industrial applications, including the production of glass, ceramics, explosives, charcoal briquettes,
metal treatments and various chemical processes.



42







In addition, this product line has also
experienced growth from the use of industrial nitrates as thermal storage in concentrated solar power plants (commonly known as
“CSP”). Solar salts for this specific application contain a blend of 60% sodium nitrate and 40% potassium nitrate
by weight ratio used as a storage and heat transfer medium. Unlike traditional photovoltaic plants, these new plants use a “battery”
or tank that contains molten nitrate salts, which store energy as heat. The salts are kept hot during the day, and release the
solar energy that they have captured during the night, allowing the plant to operate even during hours of darkness. Another difference
with the photovoltaic technology is that CSP plants are of large scale and only take a few years between the development stage
and the commercial operation date. Their development is mainly driven by implementation of renewable programs deployed by different
governments worldwide, along with demand for electricity generation. This market fluctuates according to these factors and is
based on long-term agreements. In 2014 and 2015, the supply of solar salts has been lower than the previous years because of the
delay of some large projects. However, demand is recovering and we have closed agreements for some deliveries in 2015, with larger
volumes in 2016 and 2017.



Industrial-grade potassium chloride is
a basic chemical used to produce potassium hydroxide, and is used as an additive in oil drilling as well as in food processing,
among other applications.



Boric acid is primarily used as raw material
in the manufacturing of glass, fiberglass, ceramic and enamel frits and LCD flat panel displays.



Industrial Chemicals: Our Products



The following table shows our sales volumes
of industrial chemicals and total revenues for 2014, 2013 and 2012:

|                          |  | 2014 |       |  | 2013 |  |       | 2012 | 
|------------------------- |  | ---- | ----- |  | ---- |  | ----- | ---- | 
|Sales Volume(Th. MT)      |  |      |       |  |      |  |       |      | 
|Industrial nitrates       |  |      | 124.7 |  |      |  | 173.5 |      | 
|Boric Acid                |  |      | 0.8   |  |      |  | 2.0   |      | 
|Revenues(in US$ millions) |  |      | 101.9 |  |      |  | 154.0 |      | 



Sales of industrial chemicals decreased
from US$154.0 million in 2013 to US$101.9 million in 2014, primarily as a result of a decrease in sales volumes of solar salts.



Industrial Chemicals: Marketing
and Customers



We sold our industrial nitrate products
in over 70 countries in 2014, with 32% percent of our sales of industrial chemicals to customers in North America, 37% to customers
in Europe, 14% to customers in Central and South America and 17% to customers in Asia and other regions. One customer accounted
for more than 10% of our sales of industrial chemicals in 2014, accounting for approximately 19%, and we estimate that our 10
largest customers accounted in the aggregate for approximately 49% of such sales. No supplier accounted for more than 10% of the
cost of sales of this business line.



The following table shows the geographical
breakdown of our sales for 2014, 2013 and 2012:



|Sales Breakdown         |  | 2014 |    |   | 2013 |  |    | 2012 | 
|----------------------- |  | ---- | -- | - | ---- |  | -- | ---- | 
|North America           |  |      | 32 | % |      |  | 45 | %    | 
|Europe                  |  |      | 37 | % |      |  | 34 | %    | 
|Central & South America |  |      | 14 | % |      |  | 12 | %    | 
|Asia and Others         |  |      | 17 | % |      |  | 9  | %    | 



We sell our industrial chemical products
mainly through our own worldwide network of representative offices and through our sales and distribution affiliates. We maintain
inventories of our different grades of sodium nitrate and potassium nitrate products at our facilities in Europe, North America,
South Africa, Asia and South America to achieve prompt deliveries to customers. Our Research and Development department, together
with our foreign affiliates, provides technical support to our customers and continuously works with them to develop new products
or applications for our products.



43







Industrial Chemicals: Competition



We believe we are the world’s largest
producer of industrial sodium and potassium nitrate. In the case of industrial sodium nitrate, we estimate that our sales represented
close to 45% of world demand in 2014 (excluding internal demand for China and India, for which we believe reliable estimates are
not available). Our competitors are mainly based in Europe and Asia, producing sodium nitrate as a by-product of other production
processes. In refined grade sodium nitrate, BASF AG, a German corporation and several producers in China and Eastern Europe are
highly competitive in the European and Asian markets. Our industrial sodium nitrate products also compete indirectly with substitute
chemicals, including sodium carbonate, sodium sulfate, calcium nitrate and ammonium nitrate, which may be used in certain applications
instead of sodium nitrate and are available from a large number of producers worldwide.



Our main competitor in the industrial
potassium nitrate business is Haifa, which we estimate had a market share of 23%. We estimate that our market share was approximately
25% for 2014.



Producers compete in the market for industrial
sodium and potassium nitrate based on reliability, product quality, price and customer service. We believe that we are a low cost
producer of both products and are able to produce high quality products.



In the potassium chloride and boric acid
markets, we are a relatively small producer, mainly supplying regional needs.



Other Products



A large part of our other revenue is related
to fertilizer trading, usually commodities. These fertilizers are traded in large volumes worldwide. We have developed a trade,
supply and inventory management business that allows us to respond quickly and effectively to the changing fertilizer market in
which we operate and profit on these trades.



Production Process



Our integrated production process can
be classified according to our natural resources:



| | · | caliche
                                         ore deposits, which contain nitrates, iodine and potassium; and
| | - | ----------------------------------------------------------------------------------------------------------------

| | · | brines
                                         from the Salar de Atacama, which contain potassium, lithium, sulfate, boron and magnesium.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------



Caliche Ore Deposits





Caliche ore deposits are located in northern
Chile. During 2014, we operated two surface mines in this region: Pedro de Valdivia and Nueva Victoria. Operations at the Pampa
Blanca site and the El Toco surface mine (which is part of the María Elena site) were temporarily suspended in an effort
to optimize our production facilities with lower production costs.





Caliche ore is found under a layer of
barren overburden in seams with variable thickness from 20 centimeters to five meters, and with the overburden varying in thickness
between 50 centimeters and 1.5 meters.



44







Before proper mining begins, the exploration
stage is carried out, including complete geological reconnaissance, sampling and drilling caliche ore to determine the quality
and characteristics of each deposit. Drill-hole samples are properly identified and tested at our chemical laboratories. With
the exploration information on a closed grid pattern of drill holes, the ore evaluation stage provides information for mine planning
purposes. Mine planning is done on a long-term basis (10 years), medium-term basis (three years) and short-term basis (one year).
Once all of this information has been compiled, detailed planning for the exploitation of the mine takes place.



The mining process generally begins with
bulldozers first ripping and removing the overburden in the mining area. This process is followed by production drilling and blasting
to break the caliche seams. Front-end loaders load the ore onto off-road trucks, which take it to be processed.



At the Pedro de Valdivia mine, trucks
deliver the ore to stockpiles next to rail loading stations. The stockpiled ore is later loaded onto railcars that take the mineral
to the processing facilities, where it is crushed and leached in vats in order to produce concentrated solutions containing nitrate
and iodine.



At the Nueva Victoria site, the run of
mine ore is loaded in heaps and leached with water to produce concentrated solutions containing nitrate, iodine and potassium.
These solutions are then sent to plants where iodine is extracted through both solvent-extraction and blow out processes. The
remaining solutions are subsequently sent to solar evaporation ponds where the solutions are evaporated and rich nitrate salts
are produced. These concentrated nitrate salts are then sent to Coya Sur where they are used to produce potassium nitrate.



Caliche Ore-Derived Products



Caliche ore-derived products are: sodium
nitrate, potassium nitrate, sodium potassium nitrate, iodine, and iodine derivatives.



Sodium Nitrate



During 2014, sodium nitrate for both agricultural
and industrial applications was produced at the Pedro de Valdivia facility and subsequently processed at the Coya Sur plants.
At the Pedro de Valdivia facility, the caliche ore is crushed, creating two products: a coarse fraction and a fine fraction. The
coarse fraction is processed using the Guggenheim method, which was originally patented in 1921 and is based on a closed-circuit
method of leaching vats. This process uses heated brines to leach the crushed caliche in vats and selectively dissolve the contents.
The concentrated solution is then cooled, producing sodium nitrate crystals, which can then be separated from the brine using
basket centrifuges. After the crystallization and separation processes, the nitrate crystals are sent to the processing plant,
and the brine is pumped to the iodine facilities, where the iodide is separated in a solvent extraction plant. Finally, the brine
is returned to the vat leaching process.



The fine fraction from the caliche crushing
process is leached at ambient temperature with water, producing a solution that is pumped to a fines pond. After going through
a separation process, the solution is pumped to the iodine facilities. After a solvent extraction process, the brine is pumped
to solar evaporation ponds in Coya Sur, 15 km south of María Elena, for the concentration of nitrates.



Our total current crystallized sodium
nitrate production capacity at the Pedro de Valdivia facility is approximately 500,000 metric tons per year. Crystallized sodium
nitrate is an intermediate product that is subsequently processed further at the Coya Sur and María Elena production plants
to produce sodium nitrate, potassium nitrate and sodium potassium nitrate in different chemical and physical qualities, including
crystallized and prilled products. Finally, the products are transported by railway to our port facilities in Tocopilla for shipping
to customers and distributors worldwide.



45







Potassium Nitrate



Potassium nitrate is produced at our Coya
Sur facility using a production process developed by us. The brine leached using the fine fraction of the crushed caliche at Pedro
de Valdivia and the brines produced by the heap leaching process at María Elena are pumped to Coya Sur’s solar evaporation
ponds for a nitrate concentration process. After the nitrate concentration process, the brine is pumped to a conversion plant
where salts with lower potassium content, produced at Nueva Victoria or Coya Sur, are added. A chemical reaction begins, producing
brine with dissolved potassium nitrate. This brine is pumped to a crystallization plant, which crystallizes the potassium nitrate
by cooling it and separating it from the liquid by centrifuge.



Our current potassium nitrate production
capacity at Coya Sur is approximately 1,000,000 metric tons per year. In March 2011, a new potassium nitrate production plant
(NPT3) started operations. This plant has been gradually increasing its annual production, reaching approximately 283,000 tons
in 2014. This new plant was designed to use raw material salts harvested at Nueva Victoria (nitrate salts) and the Salar de Atacama
(potassium salts).



The potassium nitrate produced in crystallized
or prilled form at Coya Sur has been certified by TÜV-Rheiland under the quality standard ISO 9001:2008. The potassium nitrate
produced at Coya Sur is transported to Tocopilla for shipping and delivery to customers and distributors.



Sodium Potassium Nitrate



Sodium potassium nitrate is a mixture
of approximately two parts sodium nitrate per one part potassium nitrate. We produce sodium potassium nitrate at our Coya Sur
and María Elena prilling facilities using standard, non-patented production methods we have developed. Crystallized sodium
nitrate is mixed with the crystallized potassium nitrate to make sodium potassium nitrate, which is then prilled. The prilled
sodium potassium nitrate is transported to Tocopilla for bulk shipment to customers.



The production process for sodium potassium
nitrate is basically the same as that for sodium nitrate and potassium nitrate. With certain production restraints and following
market conditions, we may supply sodium nitrate, potassium nitrate or sodium potassium nitrate, either in prilled or crystallized
form.



Iodine and Iodine Derivatives



During 2014, we produced iodine at our
Pedro de Valdivia, María Elena, and Nueva Victoria facilities (including the Iris facility, which is part of the Nueva
Victoria facility).At the María Elena and Nueva Victoria facilities, iodine is extracted from solutions produced
by heap leaching caliche ore. At the Pedro de Valdivia facility, iodine is produced from the vat leaching of caliche ore.In
August 2014, iodine production operations at the Iris plant were restarted after being temporarily suspended in October 2013.



As in the case of nitrates, the process
of extracting iodine from the caliche ore is well established, but variations in the iodine and other chemical contents of the
treated ore and other operating parameters require a high level of know-how to manage the process effectively and efficiently.



The solutions resulting from the leaching
of caliche carry iodine in iodate form. Part of the iodate solution is reduced to iodide using sulfur dioxide, which is produced
by burning sulfur. The resulting iodide is combined with the rest of the untreated iodate solution to release elemental iodine
in low concentrations. The iodine is then extracted from the aqueous solutions and concentrated as iodide form using a solvent
extraction and stripping plant in the Pedro de Valdivia and Nueva Victoria facilities and using a blow out plant in Iris. The
concentrated iodide is oxidized to solid iodine, which is then refined through a smelting process and prilled. We have obtained
patents in the United States and Chile (Chilean patent number 47,080) for our iodine prilling process.



46







Prilled iodine is tested for quality control
purposes, using international standard procedures that we have implemented. It is then packed in 20 to 50 kilogram drums or 350
to 700 kilogram maxibags and transported by truck to Antofagasta, Mejillones, or Iquique for export. Our iodine and iodine derivatives
production facilities have qualified under the ISO-9001:2008 program, providing third-party certification—by TÜV-Rheiland—of
the quality management system. The last recertification process was approved in February 2011. Iodine from the Iris plant was
certified under ISO-9001:2008 in April 2012.



Our total iodine production in 2014 was
approximately 9,602 metric tons: approximately 5,987 metric tons from Nueva Victoria and Iris; 3,242 metric tons from Pedro de
Valdivia; and 373 metric tons from María Elena. The Nueva Victoria facility is also used for recycling iodine from the
potassium iodide contained in the LCD waste solutions imported mainly from Korea. Nueva Victoria is also equipped to toll iodine
from iodide delivered from other SQM facilities. We have the flexibility to adjust our production according to market conditions.
Our total current production capacity at our iodine production plants is approximately 13,300 metric tons per year.



We use a portion of the iodine we produce
to manufacture inorganic iodine derivatives, which are intermediate products used for manufacturing agricultural and nutritional
applications, at facilities located near Santiago, Chile. We also produce inorganic and organic iodine derivative products together
with Ajay, which purchases iodine from us. In the past, we have primarily sold our iodine derivative products in South America,
Africa and Asia, while Ajay and its affiliates have primarily sold their iodine derivative products in North America and Europe.



In September 2010, the National Commission
for the Environment of Chile (Comisión Nacional del Medio Ambiente or “CONAMA”), currently known as
the Environmental Evaluation Service, approved the environmental study of our Pampa Hermosa project in the Tarapacá Region
of Chile. This approval allows us to increase the production capacity of our Nueva Victoria operations to 11,000 metric tons of
iodine per year and to produce up to 1.2 million metric tons of nitrates, mine up to 33 million metric tons of caliche per year
and use new water rights of up to 570.8 liters per second. In recent years, we have made investments in order to increase the
water capacity in the Nueva Victoria operations from two water sources approved by the environmental study of Pampa Hermosa, expand
the capacity of solar evaporation ponds, and implement new areas of mining and collection of solutions. Our current production
capacity at Nueva Victoria is approximately 8,500 metric tons per year of iodine (including the Iris operations) and 700,000 metric
tons per year of nitrates. Additional expansions may be done from time to time in the future, depending on market conditions.



In October 2013, the Environmental Evaluation
Service approved the Pampa Blanca Environmental Impact Study, to increase our caliche ore extraction in the Antofagasta Region
in order to increase production capacity of iodine by 10,000 tons and nitrates by 1.3 million tons. The project also requested
permission to build a pipeline from the Pacific Ocean to the mining site. Operations at Pampa Blanca were temporarily suspended
in March 2010.



Salar de Atacama Brine Deposits



The Salar de Atacama, located approximately
250 kilometers east of Antofagasta, is a salt-encrusted depression in the Atacama Desert, within which lies an underground deposit
of brines contained in porous sodium chloride rock fed by an underground inflow from the Andes mountains. The brines are estimated
to cover a surface of approximately 2,800 square kilometers and contain commercially exploitable deposits of potassium, lithium,
sulfates and boron. Concentrations vary at different locations throughout the Salar de Atacama. Our production rights to the Salar
de Atacama are pursuant to the Lease Agreement between SQM Salar and Corfo, which expires in 2030. The Lease Agreement permits
the CCHEN to establish a total accumulated extraction limit of 180,100 tons of lithium (958,672 tons of lithium carbonate equivalent)
in the aggregate for all periods.



47







Brines are pumped from depths of 1.5 to
60 meters below surface, through a field of wells that are located in areas of the Salar de Atacama that contain relatively high
concentrations of potassium, lithium, sulfate, boron and other minerals.



Products Derived from the Salar
de Atacama Brines



The products derived from the Salar de
Atacama brines are: potassium chloride, potassium sulfate, lithium carbonate, lithium hydroxide, lithium chloride, boric acid
and bischofite (magnesium chloride).



Potassium Chloride



We use potassium chloride in the production
of potassium nitrate. Production of our own supplies of potassium chloride provides us with substantial raw material cost savings.
We also sell potassium chloride to third parties, primarily as a commodity fertilizer.



In order to produce potassium chloride,
brines from the Salar de Atacama are pumped to solar evaporation ponds. Evaporation of the brines results in a complex crystallized
mixture of salts of potassium, sodium and magnesium. Waste sodium chloride salts are removed by precipitation. After further
evaporation, the sodium and potassium salts are harvested and sent for treatment at one of the potassium chloride plants where
potassium chloride is separated by a grinding, flotation, and filtering process. Potassium salts also containing magnesium are
harvested and sent for treatment at one of the cold leach plants where magnesium is removed. Potassium chloride is transported
approximately 300 kilometers to our Coya Sur facilities via a dedicated truck transport system, where it is used in the production
of potassium nitrate. We sell potassium chloride produced at the Salar de Atacama in excess of our needs to third parties. All
of our potassium-related plants in the Salar de Atacama currently have a production capacity in excess of up to 2.6 million metric
tons per year. Actual production capacity depends on volume, metallurgical recovery rates and quality of the mining resources
pumped from the Salar de Atacama.



The by-products of the potassium chloride
production process are (i) brines remaining after removal of the potassium chloride, which are used to produce lithium carbonate
as described below, with the excess amount being reinjected into the Salar de Atacama; (ii) sodium chloride, which is similar
to the surface material of the Salar de Atacama and is deposited at sites near the production facility and (iii) other salts containing
magnesium chloride.



Lithium Carbonate and Lithium Chloride



After the production of potassium chloride,
a portion of the brines remaining is sent to additional solar concentration ponds adjacent to the potassium chloride production
facility. Following further evaporation, the remaining concentrated solution of lithium chloride is transported by truck to a
production facility located near Antofagasta, approximately 230 kilometers from the Salar de Atacama. At the production facility,
the solution is purified and treated with sodium carbonate to produce lithium carbonate, which is dried and then, if necessary,
compacted and finally packaged for shipment. A portion of this purified lithium chloride solution is packaged and shipped to customers.
The production capacity of our lithium carbonate facility is approximately 48,000 metric tons per year. Future production will
depend on the actual volumes and quality of the lithium solutions sent by the Salar de Atacama operations, as well as prevailing
market conditions. Our future production is also subject to the extraction limit of 180,100 tons of lithium (958,672 tons of lithium
carbonate equivalent) in the aggregate for all periods of the Lease Agreement mentioned above.



Our lithium carbonate production quality
assurance program has been certified by TÜV-Rheiland under ISO 9001:2000 since 2005 and under ISO 9001:2008 since October
2009.



48







Lithium Hydroxide



Lithium carbonate is sold to customers,
and we also use it as a raw material for our lithium hydroxide facility, which started operations at the end of 2005. This facility
has a production capacity of 6,000 metric tons per year and is located in the Salar del Carmen, adjacent to our lithium carbonate
operations. In the production process, lithium carbonate is reacted with a lime solution to produce lithium hydroxide brine and
calcium carbonate salt, which is filtered and piled in reservoirs. The brine is evaporated in a multiple effect evaporator and
crystallized to produce the lithium hydroxide, which is dried and packaged for shipment to customers.



Our lithium hydroxide production quality
assurance program has been certified by TÜV-Rheiland under ISO 9001:2000 since 2007 and under ISO 9001:2008 since October
2009.



Potassium Sulfate and Boric Acid



Approximately 12 kilometers northeast
of the potassium chloride facilities at the Salar de Atacama, we use the brines from the Salar de Atacama to produce potassium
sulfate, potassium chloride (as a by-product of the potassium sulfate process) and boric acid. The plant is located in an area
of the Salar de Atacama where high sulfate and potassium concentrations are found in the brines. Brines are pumped to pre-concentration
solar evaporation ponds where waste sodium chloride salts are removed by precipitation. After further evaporation, the sulfate
and potassium salts are harvested and sent for treatment at the potassium sulfate plant. Potassium sulfate is produced using flotation,
concentration and reaction processes, after which it is crystallized, dried and packaged for shipment.



Production capacity for the potassium
sulfate plant is approximately 340,000 metric tons per year, of which approximately 95,000 metric tons correspond to potassium
chloride production as by product of the potassium sulfate process. This capacity is part of the total plant capacity of 2.6 million
metric tons per year. In our dual plant complex we may switch, to some extent, between potassium chloride and potassium sulfate
production. Part of the pond system in this area is also used to process potassium chloride brines extracted from the low sulfate
concentration areas found in the salar.



The principal by-products of the production
of potassium sulfate are: (i) non-commercial sodium chloride, which is deposited at sites near the production facility and (ii)
remaining solutions, which are re-injected into the Salar de Atacama or returned to the evaporation ponds. The principal by-products
of the boric acid production process are remaining solutions that are treated with sodium carbonate to neutralize acidity and
then are reinjected into the Salar de Atacama.



Raw Materials



The main raw material that we require
in the production of nitrate and iodine is caliche ore, which is obtained from our surface mines. The main raw material in the
production of potassium chloride, lithium carbonate and potassium sulfate is the brine extracted from our operations at the Salar
de Atacama.



Other important raw materials are sodium
carbonate (used for lithium carbonate production and for the neutralization of iodine solutions), sulfur, sulfuric acid, kerosene,
anti-caking and anti-dust agents, ammonium nitrate (used for the preparation of explosives in the mining operations), woven bags
for packaging our final products, electricity acquired from electric utilities, and liquefied natural gas and fuel oil for heat
generation. Our raw material costs (excluding caliche ore and salar brines and including energy) represented approximately 15%
of our cost of sales in 2014.



We have several electricity supply agreements
signed with major producers in Chile which are expected to cover our electricity needs until 2030. We have been connected to the
northern power grid in Chile, which currently supplies electricity to most cities and industrial facilities in northern Chile,
since April 2000.



49







For the supply of liquefied natural gas,
in 2013 and 2014 we had a contract with Solgas. For 2015, we executed a supply contract with Endesa, primarily to serve our operations
at the Salar del Carmen and Coya Sur.



We obtain ammonium nitrate, sulfur, sulfuric
acid, kerosene and soda ash from several large suppliers, mainly in Chile and the United States, under long-term contracts or
general agreements, some of which contain provisions for annual revisions of prices, quantities and deliveries. Diesel fuel is
obtained under contracts that provide fuel at international market prices.



We believe that all of our contracts and
agreements with third-party suppliers with respect to our main raw materials contain standard and customary commercial terms and
conditions.



Water Supply



We hold water rights for the
supply of surface and subterranean water near our production facilities. The main sources of water for our nitrate and iodine
facilities at Pedro de Valdivia, María Elena and Coya Sur are the Loa and San Salvador rivers, which run near our production
facilities. Water for our Nueva Victoria and Salar de Atacama facilities is obtained from wells near the production facilities.
In addition, we buy water from third parties for our production processes at the Salar del Carmen lithium carbonate plant, and
we also purchase potable water from local utility companies. We have not experienced significant difficulties obtaining the necessary
water to conduct our operations.



Government
Regulations



Regulations in Chile Generally



We are subject to the full range of government
regulations and supervision generally applicable to companies engaged in business in Chile, including labor laws, social security
laws, public health laws, consumer protection laws, tax laws, environmental laws, securities laws and anti-trust laws. These include
regulations to ensure sanitary and safety conditions in manufacturing plants.



We conduct our mining operations pursuant
to exploration concessions and exploitation concessions granted pursuant to applicable Chilean law. Exploitation concessions essentially
grant a perpetual right (with the exception of the Salar de Atacama rights, which have been leased to us until 2030) to conduct
mining operations in the areas covered by such concessions, provided that annual concession fees are paid. Exploration concessions
permit us to explore for mineral resources on the land covered thereby for a specified period of time, and to subsequently request
a corresponding exploitation concession.



Under Law No. 16,319 that created the
CCHEN, we have an obligation to the CCHEN regarding the exploitation and sale of lithium from the Salar de Atacama. Pursuant to
such obligation, we are subject to annual quotas that limit the total tonnage of lithium authorized to be sold.



We also hold water rights obtained from
the Chilean water regulatory authority for the supply of water from rivers or wells near our production facilities sufficient
to meet our current operating requirements. See “Item 3. Risk Factors—Risks Relating to Chile.” The Water Code
is subject to changes, which could have a material adverse impact on our business, financial condition and results of operations.
For example, Law No. 20,017, published in 2005, modified the Chilean laws relating to water rights and established that, under
certain conditions, permanent water rights of up to two liters per second for each well built prior to June 30, 2004, may be constituted
in the areas where we conduct our mining operations. In constituting these new water rights, the law does not consider the availability
of water, or how the new rights may affect holders of existing rights. Therefore, the amount of water we can effectively extract
based on our existing rights could be reduced if these additional rights are exercised. These and other potential future changes
to Chilean laws relating to water rights could have a material adverse impact on our business, financial condition and results
of operations.



50







We operate port facilities at Tocopilla,
Chile for the shipment of products and the delivery of raw materials pursuant to maritime concessions, which have been granted
under applicable Chilean laws and are normally renewable on application, provided that such facilities are used as authorized
and annual concession fees are paid.



In 2005, the Chilean Congress approved
the Royalty Law, which established a royalty tax to be applied to mining activities developed in Chile. In 2010, modifications
were made to the law and taxes were increased. In 2012, new modifications to the tax laws were enacted to set the corporate tax
rate at 20% for companies like SQM.



On September 29, 2014, the Tax Reform
was published, introducing significant changes to the Chilean taxation system and strengthening the powers of the SII to control
and prevent tax avoidance. The Tax Reform contemplates, among other matters, changes to the corporate tax regime to create two
tax regimes. Starting on January 1, 2017, Chilean companies will be able to opt between two tax regimes: (i) the partially integrated
shareholder tax regime (sistema parcialmente integrado) or (ii) the attributed income shareholder taxation regime (sistema
de renta atribuida). In both regimes, the corporate tax rate will be increased to 21% in 2014, 22.5% in 2015 and 24% by 2016.
On or after January 1, 2017, and depending on the tax regime chosen by the company, tax rates may be increased to a maximum rate
of 25% in 2017 for the attributed income shareholder taxation regime or to a rate of 25.5% in 2017 and subsequently to a maximum
rate of 27% in 2018 for the partially integrated shareholder tax regime.



As an open stock corporation, the default
regime that applies to us is the partially integrated regime, unless at a future shareholders’ meeting our shareholders
agree to opt for the attributed income shareholder taxation regime.



The Tax Reform tax increase prompted a US$52.3 million increase in our deferred tax liabilities as of
December 31, 2014. In accordance with IAS 12, the effects generated by the
change in the income tax rate approved by Law No. 20.780 on income and deferred taxes have been applied to the income statement.
For purposes of the Company’s statutory consolidated financial statements filed with the SVS, in accordance with the instructions
issued by the SVS in its circular 856 of October 17, 2014, the effects generated by the change in the income tax rate were accounted
for as retained earnings. The amount charged to equity was US$52.3 million, thereby giving rise to a difference of US$52.3 million
in profit for the year and income tax expense as presented in the Company’s Audited Consolidated Financial Statements and
as presented in its statutory consolidated financial statements filed with the SVS.



Given the difference in accounting treatments
between IFRS and the instructions of the SVS, we will continue to analyze the effects of the Tax Reform on our financial statements
and reporting obligations, and we cannot be sure of how our future financial statements will reflect these changes.



The Chilean government may again decide
to levy additional taxes on mining companies or other corporations in Chile, and such taxes could have a material adverse impact
on our business, financial condition and results of operations.



In 2006, the Chilean Congress amended
the Labor Code, and effective January 15, 2007, changes were made affecting companies that hire subcontractors to provide certain
services. This new law, known as the Subcontracting Law (Ley de Subcontratación), further amends the Labor Accidents
Law No. 16,744 to provide that when a serious accident in the workplace occurs, a company must halt work at the site where the
accident took place until authorities from the Sernageomin, the Labor Board, or the National Health Service inspect the site and
prescribe the measures such company must take to minimize the risk of similar accidents taking place in the future. Work may not
be resumed until said company has taken the prescribed measures, and the period of time before work may be resumed may last for
a number of hours, days, or longer. The effects of this law could have a material adverse effect on our business, financial condition
and results of operations.



51







On December 2, 2009, Law No. 20,393 went
into effect, establishing criminal liability for legal entities, for the crimes of (a) asset laundering, (b) financing terrorism
and (c) bribery. Such criminal liability applies to legal entities for the aforementioned crimes where such crimes are committed
directly or indirectly in benefit of such legal entity, by the legal entity’s owners, controllers, representatives or principal
executives, to the extent to which the commission of the crime is a consequence of the legal entity’s failure to fulfill
its management and supervisory obligations. The law establishes that the company has fulfilled such obligations when it has adopted
and implemented a prevention model for such crimes.



On January 1, 2010, Law No. 20,382 went
into effect, introducing modifications to the Securities Law and Law No. 18,046 on Corporations (Ley de Sociedades Anónimasor the “Chilean Corporations Act”). The new law regulates corporate governance and, in general, seeks to improve
such matters as the professionalization of senior management at corporations, the transparency of information, and the detection
and resolution of possible conflicts of interest. The law establishes the requirement of at least one independent director for
certain corporations, including SQM. Such director must be a member of the Directors’ Committee, a position which, in turn,
grants the director further supervisory powers. The independent director may be proposed by any shareholder with an ownership
interest of 1% or more in a company and must satisfy a series of independence requirements with respect to the company and the
company’s competition, providers, customers and majority shareholders. The new law also defines the regulations regarding
the information that companies must provide to the general public and to the SVS, as well as regulations relating to the use of
inside information, the independence of external auditors, and procedures for the analysis of transactions with related parties.



In 2010, the Chilean Congress amended
the Environmental Law to create the Ministry of Environment, the Environmental Evaluation Service and the Superintendence for
the Environment (Superintendencia del Medio Ambiente or “Superintendence for the Environment”). These changes
introduced important amendments to environmental regulations by setting up new agencies and introducing new provisions and procedures
applicable to projects whose operations bear an impact on the environment. The new Ministry designs and implements environmental
policies relating to environmental conservation, sustainable growth and the protection of Chile’s renewable energy resources.
In addition, the Ministry is responsible for enacting emission and quality standard regulations, as well as recovery and decontamination
plans. The Environmental Evaluation Service plays an active role in the procedures of the Environmental Impact Evaluation System,
pursuant to which projects are approved or rejected from an environmental standpoint. In procedures for obtaining an environmental
license, any person, including legal entities and companies, will be allowed to file oppositions and comments. Summary procedures,
such as Environmental Impact Statements, allow comments in support or opposition under certain circumstances. Technical reports
from governmental agencies are considered to be final. The Superintendence for the Environment is an independent agency which
coordinates with other governmental agencies in charge of supervision of suspended projects and projects requiring environmental
approval. Likewise, it receives, investigates and rules on complaints concerning the infringement of environmental regulations
and sanctions violators, delivers injunction orders and levies relevant fines. The Environmental Enforcement Superintendence had
its powers suspended until the First Environmental Court was installed in Santiago on December 28, 2012.



There are currently no material legal
or administrative proceedings pending against us except as discussed in Note 19.1 to our Consolidated Financial Statements, Item
8.A. Legal Proceedings and below under “Safety, Health and Environmental Regulations in Chile.” We believe we are
in compliance in all material respects with all applicable statutory and administrative regulations with respect to our business.



52







Safety, Health and Environmental
Regulations in Chile



Our operations in Chile are subject to
both national and local regulations related to safety, health and environmental protection. In Chile, the main regulations on
these matters that are applicable to SQM are the Mine Health and Safety Act of 1989 (Reglamento de Seguridad Minera or
the “Mine Health and Safety Act”), the Health Code (Código Sanitario), the Health and Basic Conditions
Act of 1999 (Reglamento sobre Condiciones Sanitarias y Ambientales Básicas en los Lugares de Trabajoor the “Health
and Basic Conditions Act”), the Subcontracting Law and the Environmental Law of 1994, amended in 2010 (Ley sobre Bases
Generales del Medio Ambiente or the “Environmental Law”).



Health and safety at work are fundamental
aspects in the management of mining operations, which is why SQM has made constant efforts to maintain good health and safety
conditions for the people working at its mining sites and facilities. In addition to the role played by us in this important matter,
the Chilean government has a regulatory role, enacting and enforcing regulations in order to protect and ensure the health and
safety of workers. The Chilean government, acting through the Ministry of Health and the Sernageomin, performs health and safety
inspections at the mining sites and oversees mining projects, among other tasks, and it has exclusive powers to enforce standards
related to environmental conditions and the health and safety of the people performing activities related to mining.



The Mine Health and Safety Act protects
workers and nearby communities against health and safety hazards, and it provides for enforcement of the law where compliance
has not been achieved. SQM’s Internal Mining Standards (Reglamentos Internos Mineros) establish our obligation to
maintain a workplace where safety and health risks are managed appropriately. We must comply with the general provisions of the
Health and Basic Conditions Act, our own internal standards and the provisions of the Mine Health and Safety Act. In the event
of non-compliance, the Ministry of Health and particularly the Sernageomin are entitled to use their enforcement powers to ensure
compliance with the law.



In November 2011, the Ministry of Mining
enacted Law No. 20,551 that Regulates the Closure of Mining Sites and Facilities (Ley que Regula el Cierre de Faenas e Instalaciones
Mineras). This new statute entered in force in November 2012 and required all mining sites to present or update their closure
plans as of November 2014. SQM has fulfilled this requirement for all of its mining sites and facilities. The main requirements
of the law are related to disclosures to the Sernageomin regarding decommissioning plans for each mining site and its facilities,
along with the estimated cost to implement such plans. There is a requirement to provide a form of financial assurance to the
Sernageomin to ensure compliance with the decommissioning plans. There are various types of financial assurance that satisfy the
requirement. The mining site closure plans must be approved by the Sernageomin, and the corresponding financial assurances are
subject to approval by the SVS.



The Environmental Law was subjected to
several important modifications that entered into effect in January 2010, including the creation of the Ministry of the Environment,
the Environmental Evaluation Service and the Superintendence for the Environment. The Superintendence for the Environment began
operations on December 28, 2012. The new and modified Environmental Law replaced the CONAMA with both the Ministry of the Environment,
which is currently the governmental agency responsible for coordinating and supervising environmental issues and the Environmental
Evaluation Service. Under the new Environmental Law, we will continue to be required to conduct environmental impact studies or
statements of any future projects or activities (or their significant modifications) that may affect the environment. The Superintendence
for the Environment is responsible for supervising environmental performance during the construction, operation and closure of
the projects that have been evaluated for environmental purposes, and it is also responsible for enforcing compliance with prevention
and atmospheric decontamination plans. The Environmental Law also promotes citizen participation in project evaluation and implementation,
providing more opportunities for observations or objections to be made during the environmental evaluation process. Annually,
the Superintendence for the Environment audits a sample of approved projects to verify compliance with the environmental permits,
and it may pursue fines or sanctions if applicable, which can be challenged in the Environmental Court.



53







On August 10, 1993, the Ministry of Health
published in the Official Gazette a resolution establishing that atmospheric particulate levels at our production facilities in
María Elena and Pedro de Valdivia exceeded air quality standards, affecting the nearby towns. The high particulate matter
levels came principally from dust produced during the processing of caliche ore, particularly the crushing of the ore before leaching.
Residents of the town of Pedro de Valdivia were relocated to the town of María Elena, practically removing Pedro de Valdivia
from the scope of the determination of the Ministry of Health. In 1998, authorities approved a plan to reduce the atmospheric
particulate levels later modified by Decree No. 37/2004 in March 2004, which called for an 80% reduction of the emissions of atmospheric
particulate material. This was achieved by 2008 through the implementation of a project that modified the milling and screening
systems used in the processing of the caliche ore at the María Elena facilities. Due to international market conditions,
this project suspended its operation in March 2010, and today the milling and screening systems used in the processing of the
caliche ore at the María Elena facilities have been suspended. Air quality in the area has improved significantly, and
therefore compliance of air quality standards is expected to be achieved. When the compliance with the Chilean air quality standard
has been achieved for three consecutive years (2012 to 2014), the resolution of 1993 of the Ministry of Health may be reviewed.



On March 16, 2007, the Ministry of Health
published in the Official Gazette a resolution establishing that atmospheric particulate levels exceeded air quality standards
in the coastal town of Tocopilla, where we have our port operations. The high particulate matter levels are caused mainly by two
thermoelectric power plants that use coal and fuel oil and are located next to our port operations. Our contribution to particulate
matter emissions is very small (less than 0.20% of the total). However, the environmental authority included SQM’s operations
in the decontamination plan that it developed, and implementation of the plan began in October 2010. During 2008 and 2009, earlier
than required, SQM implemented control measures for mitigating particulate matter emissions in its port operations according to
the requirements of this plan. We do not expect any additional measures to be required of SQM following the implementation of
the plan.



We continuously monitor the impact of
our operations on the environment and on the health of our employees and other persons who may be affected by such operations.
We have made modifications to our facilities in an effort to eliminate any adverse impacts. Also, over time, new environmental
standards and regulations have been enacted, which have required minor adjustments or modifications of our operations for full
compliance. We anticipate that additional laws and regulations will be enacted over time with respect to environmental matters.
While we believe we will continue to be in compliance with all applicable environmental regulations of which we are now aware,
there can be no assurance that future legislative or regulatory developments will not impose new restrictions on our operations.
We are committed to both complying with all applicable environmental regulations and to continuously improving our environmental
performance through our Environmental Management System (“EMS”) and international certifications, such as the Responsible
Conduct certification from the Chilean Industrial Chemicals Association, which applies to our operations at Nueva Victoria.



We have submitted and will continue to
submit several environmental impact assessment studies related to our projects to the governmental authorities. We require the
authorization of these submissions in order to maintain and to increase our production capacity.



54







International Regulations



SQM employs its best efforts to ensure
compliance with the complex regulatory environments in which it operates.



In October 2014, the European Food Safety
Authority (“EFSA”) released a scientific opinion on the risks to public health related to the presence of perchlorate
in food, particularly fruits and vegetables. The scientific opinion concluded, among other things, that the use of natural fertilizers
and perchlorate contaminated irrigation water may lead to substantial concentrations in food, particularly fruits and vegetables.
The EFSA scientific opinion recommended that additional data gathering be undertaken to improve risk assessment. The review of
the provisional limits established by the European Commission in July 2013 was carried out in March 2015, and new, lower provisional
limits were established for perchlorate presence in fruits and vegetables. The fertilizers sold by SQM contain less than 0.01%
of perchlorate, and agronomical perchlorate uptake studies performed on target crops have shown that the uptake rates are well
within the above mentioned provisional limits. Therefore, we do not anticipate difficulties with compliance. The European Commission
announced a program to monitor perchlorate content in food and drinking water that will last at least one year, and therefore,
the limits are not expected to be reviewed or definitively established during the next 18 months.



In September 2014, Regulation No. 98/2013
went into effect in the European Community, relating to the marketing and use of explosives precursors. The regulation includes
the obligation to report to authorities any suspicious transactions of different products that may be used illegally in the production
of explosives, including potassium nitrate and sodium nitrate produced by SQM. The regulation covers products for agricultural
use and for industrial use indistinctly and does not establish ranges of concentration to which the standard applies. Therefore,
the Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs of the European Commission developed Implementation
Guidelines, which contemplate the definition of ranges of concentration for fertilizer products, within a public-private Committee
set up by the European Commission for this purpose. During 2015, we will improve the existing control procedures and carry out
an awareness program for SQM Europe employees, as well as carrying out internal audit programs in order to appropriately handle
inspections by the competent authorities, with a focus on Belgium and Spain.



SQM has complied with the implementation
requirements for the new Hazard Communication Standard of the U.S. Occupational Safety and Health Administration (“OSHA”),
for the classification and updating of labels and safety data sheets before June 2015. In 2014 the employees of SQM North America
were trained on this new standard.



Research and Development, Patents
and Licenses



See “Item 5.C. Research and Development,
Patents and Licenses.”



4.C.
Organizational Structure



All of our principal operating subsidiaries
are essentially wholly-owned, except for Soquimich Comercial S.A., which is approximately 61% owned by us and whose shares are
listed and traded on the Santiago Stock Exchange, and Ajay SQM Chile S.A., which is 51% owned by us. The following is a summary
of our main subsidiaries as of December 31, 2014. For a list of all our consolidated subsidiaries, see Note 2.5 to our Consolidated
Financial Statements.



55







|Principal subsidiaries                                                                                                                                                 |  | Activity                                                                                                                         |  | Country of Incorporation |  | SQM Beneficial Ownership Interest (Direct/Indirect) |    
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------ |  | --------------------------------------------------- | ---
|SQM Nitrates S.A.                                                                                                                                                      |  | Extracts and sells caliche ore to subsidiaries and affiliates of SQM                                                             |  | Chile                    |  |                                                     | 100
|SQM Industrial S.A.                                                                                                                                                    |  | Produces and markets SQM’s products directly and through other subsidiaries and affiliates of SQM                                |  | Chile                    |  |                                                     | 100
|SQM Salar S.A.                                                                                                                                                         |  | Exploits the Salar de Atacama to produce and market SQM’s products directly and through other subsidiaries and affiliates of SQM |  | Chile                    |  |                                                     | 100
|SQM Potasios S.A.                                                                                                                                                      |  | Produces and markets SQM’s products directly and through other subsidiaries and affiliates of SQM                                |  | Chile                    |  |                                                     | 100
|Servicios Integrates de Transitos y Transferencias S.A. (SIT)                                                                                                          |  | Owns and operates a rail transport system and also owns and operates the Tocopilla port facilities                               |  | Chile                    |  |                                                     | 100
|Soquimich Comercial S.A.                                                                                                                                               |  | Markets SQM’s specialty plant nutrition products domestically and imports fertilizers for resale in Chile                        |  | Chile                    |  |                                                     | 61 
|Ajay-SQM Chile S.A.                                                                                                                                                    |  | Produces and markets SQM’s iodine and iodine derivatives                                                                         |  | Chile                    |  |                                                     | 51 
|Sales and distribution subsidiaries in the United States, Belgium, Brazil, Ecuador, Peru, Argentina, Mexico, South Africa, Spain, China, Thailand and other locations. |  | Market SQM’s products throughout the world                                                                                       |  | Various                  |  |                                                     |    



4.D.
Property, Plant and Equipment



We carry out our operations through the
use of mining rights, production facilities and transportation and storage facilities. Discussion of our mining rights is organized
below according to the geographic location of our mining operations. Our caliche ore mining interests are located throughout the
valley of the Tarapacá and Antofagasta regions of northern Chile (in a part of the country known as “el Norte Grande”).
From caliche ore, we produce products based on nitrates and iodine, and caliche also contains concentrations of potassium. Our
mining interests in the brine deposits of the Salar de Atacama are found within the Atacama Desert, in the eastern region of el
Norte Grande. From these brines, we produce products based on potassium, sulfate, lithium and boron.



56







The map below shows the location of our
principal mining operations and the exploitation and exploration mining concessions that have been granted to us, as well as the
mining properties that we lease from Corfo:







57













Mining Concessions



Mining Concessions for the Exploration
and Exploitation of Caliche Ore Mining Resources



We hold our mining rights pursuant to mining
concessions for exploration and exploitation of mining resources that have been granted pursuant to applicable law in Chile:



| | (1) | “Mining Exploitation Concessions”: entitle us to use the land in order to exploit the
mineral resources contained therein on a perpetual basis, subject to annual payments to the Chilean government.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (2) | “Mining Exploration Concessions”: entitle us to use the land in order to explore for
and verify the existence of mineral resources for a period of two years, at the expiration of which the concession may be extended
one time only for two additional years, if the area covered by the concession is reduced by half. We may alternatively request
an exploitation concession in respect of the area covered by the original exploration concession, which must be made within the
timeframe established by the original exploration concession.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



A Mining Exploration Concession is generally
obtained for purposes of evaluating the mineral resources in a defined area. If the holder of the Mining Exploration Concession
determines that the area does not contain commercially exploitable mineral resources, the Mining Exploration Concession is usually
allowed to lapse. An application also can be made for a Mining Exploitation Concession without first having obtained a Mining Exploration
Concession for the area involved.



As of December 31, 2014, the surface area covered
by Mining Exploitation Concessions that have been granted in relation to the caliche resources of SQM S.A.’s mining sites
corresponds to approximately 554,447 hectares. In addition, as of December 31, 2014, the surface area covered by Mining Exploration
Concessions in relation to the caliche resources of SQM S.A.’s mining sites corresponds to approximately 9,900 hectares.
We have not requested additional mining rights.



Mining Concessions for the Exploitation
of Brines at the Salar de Atacama



As of December 31, 2014, SQM Salar held exclusive
and temporary rights to exploit the mineral resources in an area covering approximately 140,000 hectares of land in the Salar de
Atacama in northern Chile, of which SQM Salar S.A. is only entitled to exploit the mineral resources of 81,920 hectares. These
rights are owned by Corfo and leased to SQM Salar pursuant to the Lease Agreement between Corfo and SQM Salar. Corfo cannot unilaterally
modify the Lease Agreement, and the rights to exploit the resources cannot be transferred. The Lease Agreement establishes that
SQM Salar is responsible for making quarterly lease payments to Corfo according to specified percentages of the value of production
of minerals extracted from the Salar de Atacama brines, maintaining Corfo’s rights over the mining exploitation concessions
and making annual payments to the Chilean government for such concession rights. The Lease Agreement expires on December 31, 2030.



Under the terms of the Salar de Atacama project
agreement between Corfo and SQM Salar, (the “Project Agreement”), Corfo has agreed that it will not permit any other
person to explore, exploit or mine any mineral resources in the approximately 140,000 hectares area of the Salar de Atacama mentioned
above. The Project Agreement expires on December 31, 2030.



SQM Salar holds an additional 254,026 hectares
of constituted Mining Exploitation Concessions in areas near the Salar de Atacama, which correspond to mining reserves that have
not been exploited. SQM Salar also holds Mining Exploitation Concessions that are in the process of being granted covering 78,530
hectares in areas near the Salar de Atacama.



58







In addition, as of December 31, 2014, SQM Salar
held constituted Mining Exploration Concessions covering approximately 102,300 hectares and had applied for additional Mining Exploration
Concessions covering approximately 46,800 hectares. Exploration rights are valid for a period of two years, after which we can
(i) request a Mining Exploitation Concession for the land, (ii) request an extension of the Mining Exploration Concession for an
additional two years (the extension only applies to a reduced surface area equal to 50% of the initial area) or (iii) allow the
concession to expire.



According to the terms of the Lease Agreement,
with respect to lithium production, the CCHEN has established a total accumulated extraction limit set at 180,100 tons of lithium
(958,672 tons of lithium carbonate equivalent) in the aggregate for all periods while the Lease Agreement is in force. More than
halfway through the term of the Lease Agreement, we have extracted approximately half of the total accumulated extraction limit
of lithium.



Corfo has initiated arbitration proceedings
in connection with the Lease Agreement. See “Item 8.A. Legal Proceedings.”



Concessions Generally



As of December 31, 2014, approximately 93%
of SQM’s mining interests were held pursuant to Mining Exploitation Concessions and 7% pursuant to Mining Exploration Concessions.
Of the Mining Exploitation Concessions, approximately 90% already have been granted pursuant to applicable Chilean law, and approximately
10% are in the process of being granted. Of the Mining Exploration Concessions, approximately 66% already have been granted pursuant
to applicable Chilean law, and approximately 34% are in the process of being granted.



In 2014, we made payments of approximately
US$8.2 million to the Chilean government for Mining Exploration and Exploitation Concessions, including the concessions we lease
from Corfo. The US$8.2 million payments do not include quarterly payments we made directly to Corfo pursuant to the Lease Agreement,
which were based on the percentages of the sales price of products produced using brines from the Salar de Atacama.



The following table shows the constituted Mining
Exploitation and Exploration Concessions held by SQM S.A., including the mining properties we lease from Corfo, as of December
31, 2014:



|                      |  | Exploitation Concessions |        |  | Exploration Concessions |  |           | Total        | 
|--------------------- |  | ------------------------ | ------ |  | ----------------------- |  | --------- | ------------ | 
|Region of Chile       |  | Total Number             |        |  | Hectares                |  |           | Total Number | 
|Region I              |  |                          | 2,233  |  |                         |  | 446,280   |              | 
|Region II             |  |                          | 8,539  |  |                         |  | 2,255,109 |              | 
|Region III and others |  |                          | 261    |  |                         |  | 61,393    |              | 
|Total                 |  |                          | 11,033 |  |                         |  | 2,762,782 |              | 



The majority of the Mining Exploitation Concessions
held by SQM were requested primarily for non-metallic mining purposes. However, a small percentage of our Mining Concessions were
requested for metallic mining purposes. The annual payment to the Chilean government for this group of concessions is higher.



Geological studies over mining properties that
were requested primarily for non-metallic mining purposes may show that the concession area is of interest for metallic mining
purposes, in which case we must inform the Sernageomin, indicating that the type of substance contained by such Mining Concessions
has changed, for purposes of the annual payment for these rights.



59







Caliche: Facilities and Reserves



Caliche: Facilities



Currently, our Nueva Victoria and Pedro de
Valdivia mines are being exploited. Operations at the Pampa Blanca site were temporarily suspended in 2010, and operations at the
María Elena site were temporarily suspended in October 2013.



María Elena

The María Elena mine and facilities,
named El Toco, are located 220 kilometers northeast of Antofagasta and are accessible by highway. Until February 2010, caliche
was used at this facility to produce nitrates and iodine through vat leaching. Subsequently, these facilities were equipped to
produce nitrates and iodine through the use of heap leaching and solar evaporation ponds. Heap leaching operations at this site
were temporarily suspended in October 2013. The main production facilities at this site include the operations center located at
El Toco and the iodide plant located at María Elena. The area mined until operations were suspended is located approximately
14 kilometers north of the María Elena production facilities. Electricity and fuel oil are the primary sources of power
for this operation.



Nueva Victoria

The Nueva Victoria mine and facilities are
located 180 kilometers north of María Elena and are accessible by highway. Since 2007, the Nueva Victoria mine includes
the mining properties Soronal, Mapocho and Iris. At this site, we use caliche to produce nitrates and iodine, through heap leaching
and the use of solar evaporation ponds. The main production facilities at this site include the operation centers for the heap
leaching process, the iodide and iodine plants at Nueva Victoria and Iris and the evaporation ponds at the Sur Viejo sector of
the site. The areas currently being mined are located approximately 4 kilometers northeast of Nueva Victoria. Solar energy and
electricity are the primary sources of power for this operation.



Pampa Blanca

The mining facilities at Pampa Blanca, which
is located 100 kilometers northeast of Antofagasta, have been suspended since March 2010. At this site, we used caliche to produce
nitrates and iodine through heap leaching and the use of solar evaporation ponds. The main production facilities at this site included
the operation centers for the heap leaching system and the iodide plant. Electricity was the primary source of power for this operation.



Pedro de Valdivia

The mine and facilities that we operate in
Pedro de Valdivia are located 170 kilometers northeast of Antofagasta and are accessible by highway. At this site, we use caliche
to produce nitrates and iodine through vat and heap leaching and solar evaporation ponds. The main production facilities at this
site include the crushing, vat leaching, fines processing, iodide and iodine plants. The areas currently being mined are located
approximately 32 kilometers southeast of the Pedro de Valdivia production facilities. Electricity, natural gas and fuel oil are
the primary sources of power for this operation.



Caliche: Reserves



Our in-house staff of geologists and mining
engineers prepares our estimates of caliche ore reserves. The Proven and Probable Reserve figures presented below are estimates,
and may be subject to modifications due to natural factors that affect the distribution of mineral grades, which would, in turn,
modify the recovery of nitrate and iodine. Therefore, no assurance can be given that the indicated levels of recovery of nitrates
and iodine will be realized.



60







We estimate ore reserves based on evaluations,
performed by engineers and geologists, of assay values derived from sampling of drill-holes and other openings. Drill-holes have
been made at different space intervals in order to recognize mining resources. Normally, we start with 400x400 meters and then
we reduce spacing to 200x200 meters, 100x100 meters and 50x50 meters. The geological occurrence of caliche ore is unique and different
from other metallic and non-metallic minerals. Caliche ore is found in large horizontal layers at depths ranging from one to four
meters and has an overburden between zero and two meters. This horizontal layering is a natural geological condition and allows
the Company to estimate the continuity of the caliche bed based on surface geological reconnaissance and analysis of samples and
trenches. Mineral resources can be calculated using the information from the drill-hole sampling.



A Mineral Resource is a concentration or occurrence
of natural, solid, inorganic or fossilized organic material in or on the Earth’s crust in such form or quantity and of such
grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics
and continuity of a mineral resource are known, estimated or interpreted from specific geological, metallurgical and technological
evidence.



A Measured Resource is the part of a Mineral
Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high
level of confidence. The estimate is based on detailed exploration, sampling and testing information gathered through appropriate
sampling techniques from locations such as outcrops, trenches, and exploratory drill holes.



An Indicated Mineral Resource is the part of
a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with
a reasonable level of confidence. The estimate is based on detailed exploration, sampling and testing information gathered through
appropriate sampling techniques from locations such as outcrops, trenches and exploratory drill holes.



According to our experience in caliche ore,
the grid pattern drill-holes with spacing equal to or less than 100 meters produce data on the caliche resources that is sufficiently
defined to consider them Measured Resources and then, adjusting for technical, economic and legal aspects, as Proven Reserves.
These reserves are obtained using the Kriging Method and the application of operating parameters to obtain economically profitable
reserves.



Similarly, the information obtained from detailed
geologic work and samples taken from grid pattern drill-holes with spacing equal to or less than 200 meters can be used to determine
Indicated Resources. By adjusting such Indicated Resources to account for technical, economic and legal factors, it is possible
to calculate Probable Reserves. Probable Reserves are calculated by using a polygon-based methodology and have an uncertainty or
margin of error greater than that of Proven Reserves. However, the degree of certainty of Probable Reserves is high enough to assume
continuity between points of observation.



Proven Reserves are the economically mineable
part of a Measured Resource. The calculation of the reserves includes the application of mining parameters including maximum overburden,
minimum thickness of caliche ore, stripping ratio, cutoff grade and application of dilution factors to the grade values. Appropriate
assessments, including pre-feasibility studies or feasibility studies, have been carried out and include consideration of metallurgical,
economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting
that extraction is reasonably justified.



Probable Reserves are the economically mineable
part of an Indicated Resource and in some cases a Measured Resource. The calculation of the reserves includes the application of
mining parameters including maximum overburden, minimum thickness of caliche ore, stripping ratio, cutoff grade and application
of dilution factors to the grade values. Appropriate assessments, including pre-feasibility studies, have been carried out or are
in process and include consideration of metallurgical, economic, marketing, legal, environmental, social and governmental factors.
These assessments demonstrate at the time of reporting that extraction is reasonably justified.



61







The estimates of Proven Reserves of caliche
ore at each of our mines as of December 31, 2014 are set forth below. The Company holds 100% of the concession rights for each
of these mines.



|Mine               |  | Proven Reserves (1)(millions of metric tons) |       |  | Nitrate Average Grade(percentage by weight) |  |     | Iodine Average Grade(parts per million) |  |  | Cutoff Grade Average forMine (3)
|------------------ |  | -------------------------------------------- | ----- |  | ------------------------------------------- |  | --- | --------------------------------------- |  |  | --------------------------------
|Pedro de Valdivia  |  |                                              | 186.3 |  |                                             |  | 7.1 | %                                       |  |  | 369                             
|María Elena        |  |                                              | 98.3  |  |                                             |  | 7.1 | %                                       |  |  | 434                             
|Pampa Blanca       |  |                                              | 54.7  |  |                                             |  | 5.7 | %                                       |  |  | 538                             
|Nueva Victoria (4) |  |                                              | 348.1 |  |                                             |  | 5.7 | %                                       |  |  | 435                             



In addition, the estimates of our Probable
Reserves of caliche ore at each of our principal mines as of December 31, 2014, are as follows:



|Mine                  |  | Probable Reserves (2)(millions of metric tons) |         |  | Nitrate Average Grade(percentage by weight) |  |     | Iodine Average Grade(parts per million) |  |  | Cutoff Grade (3)
|--------------------- |  | ---------------------------------------------- | ------- |  | ------------------------------------------- |  | --- | --------------------------------------- |  |  | ----------------
|Pedro de Valdivia (5) |  |                                                | 264.6   |  |                                             |  | 7.8 | %                                       |  |  | 438             
|María Elena           |  |                                                | 133.8   |  |                                             |  | 7.3 | %                                       |  |  | 377             
|Pampa Blanca          |  |                                                | 464.6   |  |                                             |  | 5.7 | %                                       |  |  | 540             
|Nueva Victoria (6)    |  |                                                | 1,093.7 |  |                                             |  | 5.6 | %                                       |  |  | 420             



Notes on
Reserves:



| | (1) | The Proven Reserves set forth in the table above are shown before losses related to exploitation
and mineral treatment. Proven Reserves are affected by mining exploitation methods, which result in differences between the estimated
reserves that are available for exploitation in the mining plan and the recoverable material that is finally transferred to the
leaching vats or heaps. The average mining exploitation factor for each of our different mines ranges between 80% and 90%, whereas
the average global metallurgical recoveries of processes for nitrate and iodine contained in the recovered material vary between
55% and 65%.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (2) | Probable Reserves can be expressed as Proven Reserves using a conversion factor, only for purposes
of obtaining a projection to be used for long-term planning purposes. On average, this conversion factor is higher than 60%, depending
on geological conditions and caliche ore continuity, which vary from mine to mine.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (3) | The cutoff grades for the Proven and Probable Reserves vary according to the objectives of each
mine. These amounts correspond to the averages of the different sectors.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (4) | The 3.3% increase in the Proven Reserves at Nueva Victoria is the result of the recategorization
of resources within the western sector of the mine from Indicated Resources to Measured Resources.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (5) | The increase of 145.9 million tons in the Probable Reserves at Pedro de Valdivia is the result
of the recategorization of resources within the Algorta section of the mine to Indicated Resources.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (6) | The increase in the Probable Reserves at Nueva Victoria is the result of the recategorization of
resources within the Soronal (692.1 million tons) and Pampa Orcoma (326.1 million tons) sectors of the mine to Indicated Resources.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The complete technical supporting documentation
for the information set forth in the table above is contained in the report “Methodology, Procedure, and Classification of
SQM’s Nitrate and Iodine Resources and Reserves for the Year 2014,” which was prepared by SQM geologist Vladimir Tejerina
and other SQM engineering professionals and validated by Mrs. Marta Aguilera and Mr. Orlando Rojas.



Mrs. Marta Aguilera is a geologist with more
than 20 years of experience in the field. She is currently employed by SQM as Manager of Exploration and Mining Development. Mrs.
Aguilera is a Competent Person, as that term is defined under the Competent Person Law. She is registered under No. 163 in the
Public Registry of Competent Persons in Mining Resources and Reserves in accordance with the Competent Person Law and related regulations.
She has worked as a geologist with both metallic and non-metallic deposits, with vast experience in the latter.



62







Mr. Orlando Rojas is a civil mining engineer
and independent consultant. He is Partner and Chief Executive Officer of the company EMI-Ingenieros y Consultores S.A., whose offices
are located at Renato Sánchez No. 3357, Las Condes, Santiago, Chile. He is a member of the Institute of Mining Engineers
and is registered under No. 118 in the Public Registry of Competent Persons in Mining Resources and Reserves in accordance with
the Competent Person Law and related regulations. He has worked as a mining engineer for 35 years since graduating from university,
including more than 30 years working on estimates for reserves and resources.



Copies of the certificates of qualified competency
issued by the Chilean Mining Commission are attached hereto as Exhibits 99.1 and 99.2.



The proven and probable reserves shown above
are the result of the evaluation of approximately 19.2% of the total caliche-related mining property of our Company. However, we
have explored the areas in which we believe there is a higher potential of finding high-grade caliche ore minerals. The remaining
80.8% of this area has not been explored or has had limited reconnaissance, which is not sufficient to determine the sources of
potential and hypothetical resources. The reserves shown in these tables are calculated based on properties that are not involved
in any legal disputes between SQM and other parties.



Caliche ore is the key raw material used in
the production of iodine, specialty plant nutrients and industrial chemicals. The following gross margins for the business lines
specified were calculated on the same basis as cut off grades used to estimate our reserves. We expect costs to remain relatively
stable in the near future.



|                          |  | 2014         |    |   | 2013  |  |            | 2012         | 
|------------------------- |  | ------------ | -- | - | ----- |  | ---------- | ------------ | 
|                          |  | Gross Margin |    |   | Price |  |            | Gross Margin | 
|Iodine and Derivatives    |  |              | 42 | % |       |  | US$38/kg   |              | 
|Specialty Plant Nutrition |  |              | 21 | % |       |  | US$806/ton |              | 
|Industrial Chemicals      |  |              | 40 | % |       |  | US$812/ton |              | 



We maintain an ongoing program of exploration
and resource evaluation on the land surrounding the mines at Nueva Victoria, Pedro de Valdivia, María Elena, Pampa Blanca
and other sites for which we have the appropriate concessions. In 2014, we continued a basic reconnaissance program on new mining
properties including a geological mapping of the surface and spaced drill-hole campaign covering approximately 7,143 hectares.
We did not carry out detailed explorations during 2014. For 2015 we have an exploration and recategorization program covering 1,609
hectares in Region I of Chile.



Brines from the Salar de Atacama: Facilities
and Reserves



Salar de Atacama: Facilities



Salar de Atacama

Our facilities at the Salar de Atacama are
located 208 kilometers to the east of the city of Antofagasta and 188 kilometers to the southeast of the city of María Elena.
At this site we use brines extracted from the salar to produce potassium chloride, potassium sulfate, boric acid, magnesium chloride
salts and lithium solutions, which are subsequently sent to our lithium carbonate plant at the Salar del Carmen for processing.
The main production plants at this site include the potassium chloride flotation plants (MOP-H I and II), potassium sulfate flotation
plant (SOP-H), boric acid plant (ABO), potassium chloride drying plant (MOP-S) potassium chloride compacting plant (MOP-G) potassium
sulfate drying plant (SOP-S) and potassium sulfate compacting plant (SOP-G). Solar energy is the primary energy source used for
the Salar de Atacama operations.



63







Salar de Atacama: Reserves



Our in-house staff of hydro-geologists and
mining engineers prepares our estimates of potassium, sulfate, lithium and boron reserves at the Salar de Atacama. We have exploitation
concessions covering an area of approximately 81,920 hectares, in which we have carried out geological exploitation, brine sampling
and geostatistical analysis. We estimate that our proven and probable reserves as of December 31, 2014, based on economic restrictions,
geological exploitation, brine sampling and geostatistical analysis up to a depth of 100 meters of our total exploitation concessions,
and additionally, up to a depth of 300 meters over approximately 47% of the same total area, are as follows:





| |                     |  | Proven Reserves (1)       |  |      | Probable Reserves (1)     |  |  | Total Reserves            | 
| | ------------------- |  | ------------------------- |  | ---- | ------------------------- |  |  | ------------------------- | 
| |                     |  | (millions of metric tons) |  |      | (millions of metric tons) |  |  | (millions of metric tons) | 
| | Potassium (K+) (2)  |  |                           |  | 50.2 |                           |  |  | 21.8                      | 
| | Sulfate (SO4-2) (3) |  |                           |  | 40.1 |                           |  |  | 19.1                      | 
| | Lithium (Li+) (4)   |  |                           |  | 3.7  |                           |  |  | 2.3                       | 
| | Boron (B3+) (5)     |  |                           |  | 0.9  |                           |  |  | 0.3                       | 





Notes on reserves:



| | (1) | Metric tons of potassium, sulfate, lithium and boron considered in the proven and probable reserves
are shown before losses from evaporation processes and metallurgical treatment. The recoveries of each ion depend on both brine
composition and the process applied to produce the desired commercial products.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Recoveries for potassium vary from 47% to 77%.
| | --- | ----------------------------------------------

| | (3) | Recoveries for sulfate vary from 27% to 45%.
| | --- | --------------------------------------------

| | (4) | Recoveries for lithium vary from 28% to 40%.
| | --- | --------------------------------------------

| | (5) | Recoveries for boron vary from 28% to 32%.
| | --- | ------------------------------------------



The information set forth in the table above
was validated in March 2015 by Messrs. Álvaro Henríquez and Orlando Rojas using information that was prepared by
geologists, SQM’s engineers and external advisors.



Mr. Henríquez is a geologist with more
than 10 years of experience in the field of hydrogeology. He is currently employed by SQM as Superintendent of Geology, in the
Salar Hydrogeology department. He is a Competent Person and is registered under No. 226 in the Public Registry of Competent Persons
in Mining Resources and Reserves, in accordance with the Competent Person Law. As a hydrogeologist, he has evaluated multiple brine-based
projects and has experience evaluating resources and reserves.



Mr. Orlando Rojas is a civil mining engineer
and independent consultant. He is Partner and Chief Executive Officer of the company EMI-Ingenieros y Consultores S.A., whose offices
are located at Renato Sánchez No. 3357, Las Condes, Santiago, Chile. He is a member of the Institute of Mining Engineers
and is registered under No. 118 in the Public Registry of Competent Persons in Mining Resources and Reserves in accordance with
the Competent Person Law and related regulations. He has worked as a mining engineer for 35 years since graduating from university,
including more than 30 years working on estimates for reserves and resources.



64







Copies of the certificate of qualified competency
issued by the Chilean Mining Commission for Mr. Rojas and Mr. Henríquez are attached hereto as Exhibit 99.2 and 99.3.



A cutoff grade of 1% K is used in the calculation,
considering a low margin scenario using only MOP-S as, and using diluted brine with higher levels of contaminants as, the
raw material, with recovery yields of approximately 47%, which is on the lower end of the range. In this scenario, considering
current market conditions and market conditions from recent years, the production cost of MOP production is still competitive.



The cutoff grade for lithium extraction is
set at 0.05% Li. The cost of the process is competitive in the market despite a small cost increase due to the expansions in the
evaporation area (to reach the required Li concentration) and to the use of additives to maintain the quality of the brine that
is used to feed the plant.



The proven and probable reserves are based
on production experience, drilling, brine sampling and geo-statistic reservoir modeling in order to estimate brine volumes and
their composition. We calculate the volume of brine effectively drainable or exploitable in each evaluation unit. We consider chemical
parameters to determine the process to be applied to the brines. Based on the chemical characteristics, the volume of brine and
drainable porosity, we determine the number of metric tons for each of the chemical ions being evaluated.



Reserves are defined as those geographical
blocks which belong to properly identified hydrogeological units with proven historical brine yield production, and a quality and
piezometric brine monitoring network to control brine evolution over time. Reserve classification is finally achieved by using
the geostatistical estimation error and the search volume, as an indicator between proven and probable reserves. This criterion
applies to all hydrogeological units shallower than 100 meters deep.



For deeper (below 100 meters) and unexploited
units, blocks within the first search volume were estimated and considered in the evaluation as probable reserves and indicated
resources. Blocks within the second and third search volumes were classified as inferred resources until further exploration is
performed. This exploration includes systematic packer testing, chemical brine sampling and long-term pilot production pumping
tests.



This procedure is used to estimate potential
restrictions on production yields, and the economic feasibility of producing such commercial products as potassium chloride, potassium
sulfate, lithium carbonate and boric acid is determined on the basis of the evaluation.



Complementing the reserves information, SQM
has an environmental impact assessment (RCA 226/06) which defines a maximum brine extraction per year until the end of the Lease
Agreement (in the year 2030). Considering the maximum brine production rates, and including reinjection factors, we have performed
several hydrogeological numeric simulations to estimate changes in the volume and quality of the brine during the life of the project.
This procedure allows us to estimate an amount of 26.5 million metric tons of potassium out of our environmentally approved reserves,
which is considered to be a fraction of the proven and probable reserves previously defined.



Brines from the Salar de Atacama are the key
raw material used in the production of potassium chloride and potassium sulfate, and lithium and its derivatives. The following
gross margins for the business lines specified were calculated on the same basis as cut off grades used to estimate our reserves.
We expect costs to remain relatively stable in the near future.



65







|                                         |  | 2014         |    | 2013 |       | 2012        
|---------------------------------------- |  | ------------ | -- | ---- | ----- | ------------
|                                         |  | Gross Margin |    |      | Price |             
|Potassium Chloride and Potassium Sulfate |  |              | 28 | %    |       | US$375/ton  
|Lithium and Derivatives                  |  |              | 42 | %    |       | US$5.235/ton



Other Production Facilities



Coya Sur

The Coya Sur site is located approximately
15 kilometers south of María Elena, and production activities undertaken there are associated with the production of potassium
nitrate and finished products. The main production plants at this site include four potassium nitrate plants with a total capacity
of 1,000,000 metric tons per year. There are also five production lines for crystallized nitrates, with a total capacity of 1,200,000
metric tons per year, and a prilling plant with a capacity of 320,000 metric tons per year. The potassium nitrate produced at Coya
Sur is an intermediate product that is used as a raw material for the production of finished products (crystallized nitrates and
prilled nitrates). Therefore, the production capacities listed above are not independent of one another and cannot be added together
to obtain an overall total capacity. Natural gas is the main source of energy for our Coya Sur operation.



Salar del Carmen

The Salar del Carmen site is located approximately
14 kilometers to the east of Antofagasta. The production plants at this facility include the lithium carbonate plant, with a production
capacity of 48,000 metric tons per year, and the lithium hydroxide plant, with a production capacity of 6,000 metric tons per year.
Electricity and natural gas are the main sources of energy for our Salar del Carmen operation.



The following table provides a summary of our
production facilities as of December 31, 2014;



|Facility                          |  | Type of Facility                                                                   |  | ApproximateSize(hectares) (1) |         |  | Production Capacity(thousands of metric tons/year) |                                                                             | WeightedAverage Age(years) (2) |  |      | Gross Book Value
                                         (millions of US$) (2) | 
|--------------------------------- |  | ---------------------------------------------------------------------------------- |  | ----------------------------- | ------- |  | -------------------------------------------------- | --------------------------------------------------------------------------- | ------------------------------ |  | ---- | ------------------------------------------------------------------------------- | 
|Coya Sur (3)(4)                   |  | Nitrates production                                                                |  |                               | 1,518   |  |                                                    | Potassium nitrate: 1,000 Crystallized nitrates: 1,200 Prilled nitrates: 320 |                                |  | 7.4  |                                                                                 | 
|María Elena (5)(6)                |  | Nitrates and iodine production                                                     |  |                               | 35,830  |  |                                                    | Nitrates: 250 Iodine: 1.6                                                   |                                |  | 11.6 |                                                                                 | 
|Nueva Victoria (5)(7)             |  | Concentrated nitrate salts and iodine production                                   |  |                               | 47,492  |  |                                                    | Iodine: 8.5                                                                 |                                |  | 7.2  |                                                                                 | 
|Pampa Blanca (5)(8)               |  | Concentrated nitrate salts and iodide production                                   |  |                               | 10,441  |  |                                                    | Nitrates: n/a Iodine: n/a                                                   |                                |  | 6.8  |                                                                                 | 
|Pedro de Valdivia (3)             |  | Nitrates and iodine production                                                     |  |                               | 253,880 |  |                                                    | Nitrates: 500 Iodine: 3.2                                                   |                                |  | 11.2 |                                                                                 | 
|Salar de Atacama (3)(9)           |  | Potassium chloride, potassium sulfate, lithium chloride, and boric acid production |  |                               | 35,911  |  |                                                    | Potassium chloride: 2,600 Potassium sulfate: 240 Boric acid: 15             |                                |  | 10.6 |                                                                                 | 
|Salar del Carmen, Antofagasta (3) |  | Lithium carbonate and lithium hydroxide production                                 |  |                               | 126     |  |                                                    | Lithium carbonate: 48 Lithium hydroxide: 6                                  |                                |  | 11.2 |                                                                                 | 
|Tocopilla (10)                    |  | Port facilities                                                                    |  |                               | 22      |  |                                                    | -                                                                           |                                |  | 11.1 |                                                                                 | 





| | (1) | Approximate size considers both the production facilities and the mine for María Elena,
Nueva Victoria, Pampa Blanca, Pedro de Valdivia and the Salar de Atacama. Mining areas are those authorized for exploitation by
the environmental authority and/or Sernageomin.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Weighted average age and gross book value correspond to production facilities, excluding the mine,
for María Elena, Nueva Victoria, Pampa Blanca, Pedro de Valdivia and the Salar de Atacama.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | Includes production facilities and solar evaporation ponds.
| | --- | -----------------------------------------------------------

| | (4) | The potassium nitrate produced at Coya Sur is an intermediate product that is used as a raw material
for the production of finished products (crystallized nitrates and prilled nitrates). Therefore, the production capacities listed
above are not independent of one another and cannot be added together to obtain an overall total capacity.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (5) | Includes production facilities, solar evaporation ponds and leaching heaps.
| | --- | ---------------------------------------------------------------------------

| | (6) | Operations at the El Toco mine at María Elena were temporarily suspended in November 2013.
| | --- | ------------------------------------------------------------------------------------------

| | (7) | Operations at the Iris plant were temporarily suspended in October 2013 and restarted in August
2014.
| | --- | -----------------------------------------------------------------------------------------------------

| | (8) | Operations at Pampa Blanca were temporarily suspended in March 2010.
| | --- | --------------------------------------------------------------------

| | (9) | Potassium chloride and potassium sulfate are produced in a dual plant, and the production capacity
for each of these products depends on the production mix. Therefore, the production capacities for these two products are not independent
of one another and cannot be added together to obtain an overall total capacity.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10) | The Tocopilla port facilities were originally constructed in 1961 and have been refurbished and
expanded since that time.
| | ---- | -------------------------------------------------------------------------------------------------------------------------





66







Our railroad line between our production facilities
and Tocopilla was originally constructed in 1890, but the rails, locomotives, and rolling stock have been replaced and refurbished
as needed. We consider the condition of our principal plant and equipment to be good.



We own, directly or indirectly through subsidiaries,
all of the facilities free of any material liens, pledges or encumbrances, and believe they are suitable and adequate for the business
we conduct in them.



Extraction Yields



The following table shows certain operating
data relating to each of our mines for 2014, 2013 and 2012:



|(in thousands, unless otherwise stated)                                              |  | 2014 |        |  | 2013 |  |        | 2012 | 
|------------------------------------------------------------------------------------ |  | ---- | ------ |  | ---- |  | ------ | ---- | 
|Pedro de Valdivia                                                                    |  |      |        |  |      |  |        |      | 
|Metric tons of ore mined                                                             |  |      | 11,401 |  |      |  | 11,571 |      | 
|Average grade nitrate (% by weight)                                                  |  |      | 8.1    |  |      |  | 7.5    |      | 
|Iodine (parts per million (ppm))                                                     |  |      | 418    |  |      |  | 415    |      | 
|Metric tons of crystallized nitrate produced                                         |  |      | 453    |  |      |  | 445    |      | 
|Metric tons of iodine produced                                                       |  |      | 3.2    |  |      |  | 3.2    |      | 
|                                                                                     |  |      |        |  |      |  |        |      | 
|Maria Elena(1)                                                                       |  |      |        |  |      |  |        |      | 
|Metric tons of ore mined                                                             |  |      | -      |  |      |  | 5,870  |      | 
|Average grade nitrate (% by weight)                                                  |  |      | -      |  |      |  | 6.6    |      | 
|Iodine (ppm)                                                                         |  |      | -      |  |      |  | 484    |      | 
|Metric tons of crystallized nitrate produced                                         |  |      | -      |  |      |  | -      |      | 
|Metric tons of iodine produced                                                       |  |      | 0.4    |  |      |  | 1.5    |      | 
|                                                                                     |  |      |        |  |      |  |        |      | 
|Coya Sur(2)                                                                          |  |      |        |  |      |  |        |      | 
|Metric tons of crystallized nitrate produced                                         |  |      | 519    |  |      |  | 429    |      | 
|                                                                                     |  |      |        |  |      |  |        |      | 
|Pampa Blanca(1)                                                                      |  |      |        |  |      |  |        |      | 
|Metric tons of ore mined                                                             |  |      | –      |  |      |  | –      |      | 
|Iodine (ppm)                                                                         |  |      | –      |  |      |  | –      |      | 
|Metric tons of iodine produced                                                       |  |      | –      |  |      |  | –      |      | 
|                                                                                     |  |      |        |  |      |  |        |      | 
|Nueva Victoria(3)                                                                    |  |      |        |  |      |  |        |      | 
|Metric tons of ore mined                                                             |  |      | 19,792 |  |      |  | 23,515 |      | 
|Iodine (ppm)                                                                         |  |      | 467    |  |      |  | 462    |      | 
|Metric tons of iodine produced                                                       |  |      | 6.0    |  |      |  | 6.1    |      | 
|                                                                                     |  |      |        |  |      |  |        |      | 
|Salar de Atacama(4)                                                                  |  |      |        |  |      |  |        |      | 
|Metric tons of lithium carbonate produced                                            |  |      | 30     |  |      |  | 33     |      | 
|Metric tons of potassium chloride and potassium sulfate and potassium salts produced |  |      | 1,993  |  |      |  | 1,922  |      | 





| | (1) | Operations at the El Toco (María Elena) and Pampa Blanca mines were temporarily suspended
in November 2013 and March 2010, respectively. During 2014, María Elena obtained production from caliche ore exploited in
prior years.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Includes production at Coya Sur from treatment of nitrates solutions from María Elena and
fines from Pedro de Valdivia, nitrates from pile treatment at Nueva Victoria, and net production from NPT, or technical grade potassium
nitrate, plants.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | Operations at the Iris iodine plant at Nueva Victoria were temporarily suspended in October 2013
and restarted in August 2014.
| | --- | ------------------------------------------------------------------------------------------------------------------------------

| | (4) | Lithium carbonate is extracted at the Salar de Atacama and processed at our facilities at the Salar
del Carmen. Potassium salts include synthetic sylvinite produced in the plant and other harvested potassium salts (natural sylvinite,
carnalites and harvests from plant ponds) that are sent to Coya Sur for the production of crystallized nitrates.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





67







Transportation and Storage Facilities



We own and operate railway lines and equipment,
as well as port and storage facilities, for the transport and handling of finished products and consumable materials.



Our main center for production and storage
of raw materials is the hub composed of the facilities in Coya Sur, Pedro de Valdivia and the Salar de Atacama. Other facilities
include Nueva Victoria and the lithium carbonate and lithium hydroxide finishing plants at the Salar del Carmen site. The Tocopilla
port terminal (“Tocopilla Port Terminal”), which we own, is the main facility for storage and shipment of our products.



Nitrate raw materials are produced and initially
stored at our Pedro de Valdivia mine, and subsequently transported by trucks to the plants described in the next paragraph, for
further processing. Nitrate raw material is also produced at Nueva Victoria, from where it is transported by trucks to Coya Sur
for further processing.



Nitrate finished products are produced at our
facilities in Coya Sur and then transported by our rail system to Tocopilla Port Terminal, where they are stored and shipped, either
bagged or in bulk. Potassium chloride is produced at our facilities in the Salar de Atacama and transported either to Tocopilla
Port Terminal or Coya Sur by truck owned by a third-party dedicated contractor. Products transported to Coya Sur are used as a
raw material for the production of potassium nitrate. Potassium sulfate and boric acid are both produced at our facilities in the
Salar de Atacama and are then transported by trucks to the Tocopilla Port Terminal.



Lithium solutions, produced at our facilities
in the Salar de Atacama, are transported to the lithium carbonate facility at the Salar del Carmen site, where finished lithium
carbonate is produced. Part of the lithium carbonate is fed to the adjacent lithium hydroxide plant, where finished lithium hydroxide
is produced. These two products are bagged and stored on the premises and are subsequently transported by truck to the Tocopilla
Port Terminal or to the container terminals, mainly Antofagasta and Mejillones, for shipment on charter vessels or container vessels.



68







Iodine raw material, obtained from the same
mines as the nitrates, is processed, packed in bags or drums, and stored exclusively in the facilities of Pedro de Valdivia and
Nueva Victoria, and then shipped by truck to container terminals, mainly Antofagasta, Mejillones or Iquique, where they are subsequently
shipped to different markets by container vessel or by truck to Santiago, where iodine derivatives are produced.



The facilities at Tocopilla Port Terminal are
located approximately 186 kilometers north of Antofagasta and approximately 124 kilometers west of Pedro de Valdivia, 84 kilometers
west of María Elena and Coya Sur and 372 kilometers west of the Salar de Atacama. Our subsidiary, Servicios Integrales de
Tránsitos y Transferencias S.A. (SIT) operates the facilities under maritime concessions granted pursuant to applicable
Chilean laws. The port also complies with ISPS (International Ship and Port Facility Security Code) regulation. The Tocopilla Port
Terminal facilities include a railcar dumper to transfer bulk product into the conveyor belt system used to store and ship bulk
product.



Storage facilities consist of a six silo system,
with a total storage capacity of 55,000 metric tons, and an open storage area for approximately 250,000 metric tons. Additionally,
to meet future storage needs, we will continue to make investments in accordance with the investment plan outlined by management.
Products are also bagged at port facilities in Tocopilla, where the nominal bagging capacity is approximately 300,000 metric tons
per year.



For transporting bulk product, the conveyor
belt system extends over the coast line to deliver product directly inside bulk carrier hatches. Using this system, the loading
capacity is 1,200 tons per hour. Bags are loaded to bulk vessels using barges that are loaded in the Tocopilla Port Terminal dock
and unloaded by vessel cranes into the corresponding warehouses. Both bulk and bagged trucks are loaded in Tocopilla Port Terminal
for transferring product directly to customers or for transport on container vessels shipping from other ports, mainly Antofagasta,
Mejillones and Iquique.



Bulk carrier loading in the Tocopilla Port
Terminal is mostly contracted to transfer product to our hubs around the world or for shipping to customers, which in some cases
use their own contracted vessels for delivery. Trucking is provided by a mix of spot, contracted and customer-owned equipment.



Tocopilla processes related to the reception,
handling, storage and shipment of bulk/packaged nitrates produced at Coya Sur are certified by the third party organization TÜV-Rheiland
under the quality standard ISO 9001:2008.



Water Rights



We hold water rights for the supply
of surface and subterranean water near our production facilities. The main sources of water for our nitrate and iodine facilities
at Pedro de Valdivia, María Elena, and Coya Sur are the Loa and San Salvador rivers, which run near our production facilities.
Water for our Nueva Victoria and Salar de Atacama facilities is obtained from wells near the production facilities. In addition,
we buy water from third parties for our production processes at the Salar del Carmen lithium carbonate plant, and we also purchase
potable water from local utility companies. We have not experienced significant difficulties obtaining the necessary water to conduct
our operations.



69







Computer System



In addition to the above-listed facilities,
we operate a computer and information system linking our principal subsidiaries to our operating facilities throughout Chile via
a local area network. The computer and information system is used mainly for accounting, monitoring of supplies and inventories,
billing, quality control and research activities. The system’s mainframe computer equipment is located at our offices in
Santiago.



ITEM 4A. UNRESOLVED STAFF COMMENTS



Not applicable.





ITEM 5.    OPERATING AND FINANCIAL REVIEW AND PROSPECTS





The information in this Item 5 should be read
in conjunction with the Company’s Consolidated Financial Statements and the notes thereto included elsewhere in this Annual
Report.



Since January 1, 2010, the Company’s
Consolidated Financial Statements have been prepared in accordance with the International Financial Reporting Standards as published
by the International Accounting Standards Board (IASB).



CRITICAL ACCOUNTING POLICIES AND ESTIMATES



Critical accounting policies are defined as
those that are reflective of significant judgments and uncertainties, which would potentially result in materially different results
under different assumptions and conditions.



We believe that our critical accounting policies
applied in the preparation of our Audited Consolidated Financial Statements are limited to those described below. It should be
noted that in many cases, IFRS specifically dictates the accounting treatment of a particular transaction, limiting management’s
judgment in their application. There are also areas in which management’s judgment in selecting available alternatives would
not produce materially different results.



Trade and Other Accounts Receivable



Trade and other accounts receivable relate
to non-derivative financial assets with fixed payments that can be determined and are not quoted in any active market. These arise
from sales operations involving products and/or services that we sell directly to our customers that are not within the following
categories:



| | · | those which we have the intention of selling immediately in the near future and which are held-for-sale;
| | - | --------------------------------------------------------------------------------------------------------

| | · | those designated at their initial recognition as available-for-sale; and
| | - | ------------------------------------------------------------------------

| | · | those through which we do not intend to recover for reasons other than credit impairment and therefore
must be classified as available-for-sale.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------



These assets are initially recognized at their
fair value (which is equivalent to their face value, discounting implicit interest for installment sales) and subsequently at amortized
cost according to the effective interest rate method less a provision for impairment loss. When the face value of the account receivable
does not significantly differ from its fair value, it is recognized at face value. An allowance for impairment loss is established
for trade accounts receivable when there is objective evidence that we will not be able to collect all the amounts owed to us according
to the original terms of accounts receivable.



70







Implicit interest in installment sales is recognized
as interest income when interest is accrued over the term of the sale.



Income tax



Corporate income tax for the year is determined
as the aggregate of current taxes from all of the consolidated companies. Current taxes are calculated on the basis of the tax
laws enacted or substantively enacted as of the date of our statements of financial position in the countries in which we and our
subsidiaries operate and generate taxable income.



Deferred tax is recognized using the liability
method on temporary differences arising between the tax basis for assets and liabilities and their carrying amounts in our Audited
Consolidated Financial Statements. Deferred income taxes are calculated using the tax rates expected to be applicable when the
assets are realized or the liabilities are settled.



In conformity with current Chilean tax regulations,
the provision for corporate income tax and taxes on mining activity is recognized on an accrual basis, presenting the net balances
of accumulated monthly tax provisional payments for the fiscal period and credits associated with it. The balances of these accounts
are presented in current income taxes recoverable or current taxes payable, as applicable.



Tax on companies and variations in deferred
tax assets or liabilities that are not the result of business combinations are recorded in income statement accounts or net shareholders’
equity accounts in our consolidated statements of financial position, depending on the origin
of the gains or losses which have generated them.



At the year end, the carrying value of deferred
tax assets has been reviewed and reduced for as long as possible for there to be no sufficient taxable income to allow the recovery
of all or a portion of the deferred tax asset. Likewise, at the date of the statement of financial position, deferred tax assets
not recognized are revalued and recognized as long as it has become possible that future taxable income will allow the recovery
of the deferred tax asset.



With respect to deductible temporary differences
associated with investments in subsidiaries, associated companies and interests in joint ventures, deferred tax assets are recognized
solely provided that there is a possibility that the temporary differences will be reversed in the near future and that there will
be taxable income with which they may be used.



The deferred income tax related to entries
directly recognized in equity is recognized with an effect on equity and not with an effect on profit or loss.



Deferred tax assets and liabilities are offset
if there is a legally receivable right of offsetting tax assets against tax liabilities and the deferred tax is related to the
same tax entity and authority.



Inventories



We state inventory at the lower of cost and
net realizable value. The method used to determine the cost of inventory is weighted average cost. The cost of finished products
and products-in-progress includes direct costs of materials and, as applicable, labor costs, indirect costs incurred to transform
raw materials into finished products and general expenses incurred in carrying inventory to their current location and conditions.



71







The net realizable value represents the estimate
of the sales price less all finishing estimated costs and costs that will be incurred in sales and distribution processes. Commercial
discounts, rebates obtained and other similar entries are deducted in the determination of the cost. We conduct an evaluation of
the net realizable value of inventory at the end of each year, recording a provision with a charge to income when circumstances
warrant. When the circumstances that previously gave rise to the reserve cease to exist, or when there is clear evidence of an
increase in the net realizable value due to a change in economic circumstances or prices of main raw materials, the estimate made
previously is modified. The valuation of obsolete, impaired or slow-moving products relates to their estimated net realizable value.

Provisions on our inventory have been made
based on a technical study which covers the different variables affecting products in stock (density, humidity, among others).



Raw materials, supplies and materials are recorded
at the lower of acquisition cost or market value. Acquisition cost is calculated according to the annual average price method.



Obligations related to staff severance
indemnities and pension commitments



Our obligations with respect to our employees
are established in collective bargaining agreements and individual employment contracts. In the case of certain employees in the
United States, our obligations are established through a pension plan, which was terminated in 2002.



These obligations are valued using an actuarial
calculation that considers factors such as mortality rate, employee turnover, interest rates, retirement dates, effects related
to increases in employees’ salaries, as well as the effects on variations in services derived from variations in the inflation
rate.



Actuarial losses and gains that may be generated
by variations in previously defined obligations are directly recorded in profit or loss for the year.



Actuarial losses and gains originating from
deviations deviations between the estimate and the actual behavior of actuarial hypotheses or in the reformulation of established
actuarial hypotheses are recorded in equity.



The discount rate used for calculating obligations
outside the United States was 6% for the periods ended as of December 31, 2014 and 2013.



Our United States subsidiary, SQM North America
Corp. has established pension plans for its retired employees that are calculated by measuring the projected benefit obligation
in accordance with International Accounting Standards (“IAS”) using a net salary progressive rate net of adjustments
to inflation, mortality and turnover assumptions, deducting the resulting amounts at present value using a 5.0% interest rate for
2014 and 2013. The net balance of this obligation is presented in the line item called Provisions for Employee Benefits, Non-Current.



Mining development costs



Mine exploration costs and stripping costs
to maintain production of mineral resources extracted from operating mines are considered variable production costs and are included
in the cost of inventory produced during the period. Mine development costs at new mines, and major development costs at operating
mines outside existing areas under extraction that are expected to benefit future production, are capitalized under “other
long-term assets” and amortized using a units-of-production method over the associated proven and probable reserves. We determine
our proven and probable reserves based on drilling, brine sampling and geostatistical reservoir modeling in order to estimate mineral
volume and composition.



72







All other mine exploration costs, including
expenses related to low grade mineral resources rendering reserves that are not economically exploitable, are charged to the statement
of income in the period in which they are incurred.



Asset value impairment



We assess on an annual basis any impairment
on the value of buildings, plant and equipment, intangible assets, goodwill and investments accounted for using the equity method
of accounting in accordance with IAS 36 “Impairment of Assets.” Assets to which this method applies are:



| | · | investments recognized using the equity method of accounting;
| | - | -------------------------------------------------------------

| | · | property, plant and equipment;
| | - | ------------------------------

| | · | intangible assets; and
| | - | ----------------------

| | · | goodwill.
| | - | ---------



Assets are reviewed for impairment as to the
existence of any indication that the carrying value is lower than the recoverable amount. If such an indication exists, the asset
recoverable amount is calculated in order to determine the extent of the impairment, if any. In the event that the asset does not
generate any cash flows independent from other assets, we determine the recoverable amount of the cash generating unit to which
this asset belongs according to the corresponding business segment (specialty plant nutrients, iodine and derivatives, lithium
and derivatives, potassium, industrial chemicals and other products and services.)



We conduct impairment tests on intangible assets
and goodwill with indefinite useful lives on an annual basis and every time there is indication of impairment. If the recoverable
value of an asset is estimated at an amount lower than its carrying value, the latter decreases to its recoverable amount.



Financial derivatives and hedging transactions



Derivatives are recognized initially at fair
value at the date in which the derivatives contract has been signed and subsequently they are valued at fair value at each period
end. The method for recognizing the resulting loss or gain depends on whether the derivative has been designated as an accounting
hedging instrument and if so, the type of hedging, which may be:



| | a. | fair value hedge of assets and liabilities recognized (fair value hedges); or
| | -- | -----------------------------------------------------------------------------

| | b. | hedging of a single risk associated with an asset or liability recognized or a highly possible
foreseen transaction (cash flow hedge).
| | -- | --------------------------------------------------------------------------------------------------------------------------------------



At the beginning of the transaction, we document
the relationship between hedging instruments and those entries hedged, as well as their objectives for risk management purposes
and the strategy to conduct different hedging operations.



We also document our evaluation both at the
beginning and the end of each period of whether derivatives used in hedging transactions are highly effective to offset changes
in the fair value or in cash flows of hedged entries.



The fair value of derivative instruments used
for hedging purposes is shown in Note 9.3 to our Consolidated Financial Statements.



Non-hedge instruments are classified as current
assets or liabilities, and the change in their fair value is recognized directly in profit or loss.



73







| | a. | Fair value hedge
| | -- | ----------------



The change in the fair value of a derivative
is recognized with a debit or credit to profit or loss, as applicable. The change in the fair value of the hedged entry attributable
to hedged risk is recognized as part of the carrying value of the hedged entry and is also recognized with a debit or credit to
profit or loss.



For fair value hedging related to items recorded
at amortized cost, the adjustment of the fair value is amortized against income on the remaining years to its expiration. Any adjustment
to the carrying value of a hedged financial instrument for which the effective rate is used is amortized with a debit or credit
to profit or loss at its fair value attributable to the risk being covered.



If the hedged entry no longer meets the criteria
for hedge accounting, the fair value not amortized is immediately recognized with a debit or credit to profit or loss.



| | b. | Cash flow hedge
| | -- | ---------------



The effective portion of gains or losses from
the hedging instrument is initially recognized as “other revenue” with a debit or credit to other comprehensive income
whereas any ineffective portion is immediately recognized with a debit or credit to profit or loss, as applicable.



Amounts accumulated in equity are transferred
to profit or loss when the hedged transaction affects income for the period, such as when the hedged interest income or expense
is recognized when a forecasted sale occurs. When the hedged item is the cost of a non-financial asset or liability, amounts taken
to equity are transferred to the initial carrying value of the non-financial asset or liability.



Should the expected firm transaction or commitment
no longer be expected to occur, the amounts previously recognized as other comprehensive income are transferred to income. If a
hedging instrument expires, is sold, finished, and exercised without any replacement, or if a rollover is performed or if its designation
as hedging is revoked, the amounts previously recognized in equity are maintained in equity until the expected firm transaction
or commitment occurs.



| | 5.A. | Operating Results
| | ---- | -----------------



Introduction



The following discussion should
be read in conjunction with the Company’s Consolidated Financial Statements. Certain calculations (including percentages)
that appear herein have been rounded.



Our Consolidated Financial Statements
are prepared in accordance with IFRS standards and prepared in U.S. dollars. The U.S. dollar is the primary currency in which we
operate.



We operate as an independent corporation.
Nonetheless we are a “controlled corporation,” as that term is defined under Chilean law. See “Item 6.E. Share
Ownership.”



Overview
of Our Results of Operations



We divide our operations into the following
product lines:

| | · | the production and sale of specialty plant nutrients;
| | - | -----------------------------------------------------

| | · | the production and sale of iodine and its derivatives;
| | - | ------------------------------------------------------

| | · | the production and sale of lithium and its derivatives;
| | - | -------------------------------------------------------

| | · | the production and sale of potassium, including potassium chloride and potassium sulfate;
| | - | -----------------------------------------------------------------------------------------

| | · | the production and sale of industrial chemicals, principally industrial nitrates and solar salts
and
| | - | ----------------------------------------------------------------------------------------------------

| | · | the purchase and sale of other commodity fertilizers for use primarily in Chile.
| | - | --------------------------------------------------------------------------------



74







We sell our products through three
primary channels: our own sales offices, a network of distributors and, in the case of our fertilizer products, through Yara International
ASA’s (formerly Norsk Hydro ASA) (“Yara”) distribution network in countries where its presence and commercial
infrastructure are larger than ours. Similarly, in those markets where our presence is larger, both our specialty plant nutrients
and Yara’s are marketed through our offices.



Factors
Affecting Our Results of Operations



Our results of operations substantially
depend on:



| | · | trends in demand for and supply of our products, including global economic conditions, which impact
prices and sales volumes;
| | - | -----------------------------------------------------------------------------------------------------------------------------

| | · | efficient operations of our facilities, particularly as some of them run at production capacity;
| | - | ------------------------------------------------------------------------------------------------

| | · | our ability to accomplish our capital expenditures program in a timely manner;
| | - | ------------------------------------------------------------------------------

| | · | the levels of our inventories;
| | - | ------------------------------

| | · | trends in the exchange rate between the U.S. dollar and Chilean peso, as a significant portion
of the cost of sales is in Chilean pesos, and trends in the exchange rate between the U.S. dollar and the euro, as a significant
portion of our sales is denominated in euros; and
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | energy, logistics, raw materials, labor and maintenance costs.
| | - | --------------------------------------------------------------



The following table shows our revenues
(in millions of U.S. dollars) and the percentage accounted for by each of our product lines for each of the periods indicated:



|                            |  | 2014 |         |  | 2013 |  |     | 2012 | 
|--------------------------- |  | ---- | ------- |  | ---- |  | --- | ---- | 
|                            |  | US$  |         |  | %    |  |     | US$  | 
|Specialty plant nutrition   |  |      | 708.0   |  |      |  | 35  | %    | 
|Iodine and derivatives      |  |      | 335.4   |  |      |  | 17  | %    | 
|Lithium and derivatives     |  |      | 206.8   |  |      |  | 10  | %    | 
|Potassium                   |  |      | 584.3   |  |      |  | 29  | %    | 
|Industrial chemicals        |  |      | 101.9   |  |      |  | 5   | %    | 
|Other products and services |  |      | 77.7    |  |      |  | 4   | %    | 
|                            |  |      |         |  |      |  |     |      | 
|Total                       |  |      | 2,014.2 |  |      |  | 100 |      | 





75









The following table shows certain
financial information of the Company under IFRS (in millions of U.S. dollars) for each of the periods indicated, as a percentage
of revenues:





|                                                                                     |  | Year Ended December 31, |         
|------------------------------------------------------------------------------------ |  | ----------------------- | --------
|                                                                                     |  | 2014                    |         
|(in millions of U.S. dollars)                                                        |  | US$                     |         
|Revenues                                                                             |  |                         | 2,014.2 
|Cost of sales                                                                        |  |                         | (1,431.2
|Gross profit                                                                         |  |                         | 583.0   
|Other income                                                                         |  |                         | 24.1    
|Administrative expenses                                                              |  |                         | (96.5   
|Other expenses (1)                                                                   |  |                         | (64.3   
|Other gains (losses)                                                                 |  |                         | 4.4     
|Finance income                                                                       |  |                         | 16.1    
|Finance expenses                                                                     |  |                         | (63.4   
|Equity income of associates and joint ventures accounted for using the equity method |  |                         | 18.1    
|Foreign currency exchange differences                                                |  |                         | (16.5   
|Income before income tax expense(1)                                                  |  |                         | 405.0   
|Income tax expense (2)                                                               |  |                         | (160.7  
|                                                                                     |  |                         |         
|Profit attributable to:                                                              |  |                         |         
|Controlling interests (1)(2)                                                         |  |                         | 236.9   
|Non-controlling interests                                                            |  |                         | 7.4     
|Profit for the year
    (1)(2)                                                       |  |                         | 244.3   







| | (1) | The 2014 figure includes provisions of approximately
US$7 million corresponding to payments made in 2015 to the Chilean Internal Revenue Service (Servicio de Impuestos Internosor “SII”) for expenses that may not have qualified as tax expenses under the Chilean tax code. Such payments were
made after March 3, 2015, the date on which the Company filed its statutory consolidated financial statements filed with the SVS.
Therefore, this amount was not reflected in these statutory consolidated financial statements. For more information, see “Item
3D. Risk Factors—Risks Relating to our Business—We could be subject to numerous risks as a result of ongoing investigations
by the Chilean Internal Revenue Service and the Chilean Public Prosecutor in relation to certain payments of invoices made by
SQM between the tax years 2009 and 2014.”
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





| | (2) | In accordance with IAS 12, the effects generated by the
change in the income tax rate approved by Law No. 20.780 on income and deferred taxes have been applied to the income statement.
For purposes of the Company’s statutory consolidated financial statements filed with the Chilean SVS, in accordance with
the instructions issued by the SVS in its circular 856 of October 17, 2014, the effects generated by the change in the income
tax rate were accounted for as retained earnings. The amount charged to equity was US$52.3 million, thereby giving rise to a difference
of US$52.3 million in profit for the year and income tax expense as presented in the Company’s Audited Consolidated Financial
Statements and as presented in its statutory consolidated financial statements filed with the SVS. Subsequent amendments will
be recognized in profit or loss for the period in the Company’s statutory consolidated financial statements in accordance
with IAS 12.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





Results
of Operations – 2014 compared to 2013



Revenues



Revenues decreased 8.6% to US$2,014.2 million
in 2014 from US$2,203.1 million in 2013.



The main factors causing the decrease in revenues
and the variation in the different product lines are described below.



Specialty Plant Nutrition



Specialty plant nutrition revenues increased
3.0% to US$708.0 million in 2014 from US$687.5 million in 2013. Set forth below are sales volume data for the specified years by
product category in this product line:



|(in Th. MT)                                    |  | 2014 |       |  | 2013 |  |       | % Change | 
|---------------------------------------------- |  | ---- | ----- |  | ---- |  | ----- | -------- | 
|Potassium nitrate and sodium potassium nitrate |  |      | 531.6 |  |      |  | 512.6 |          | 
|Specialty blends                               |  |      | 228.0 |  |      |  | 208.1 |          | 
|Other specialty plant nutrients (*)            |  |      | 102.5 |  |      |  | 100.8 |          | 
|Sodium nitrate                                 |  |      | 15.8  |  |      |  | 26.2  |          | 

* Includes trading of other specialty fertilizers.



Our sales volumes in the specialty plant nutrition
business line increased 3.6% in 2014 compared to 2013. Revenues for our most important product in this business line, potassium
nitrate, grew approximately 5%. In general, potassium nitrate prices are less volatile than other commodity fertilizers such as
potassium chloride. Prices in the business line were largely flat in 2014 compared to 2013.



76







Iodine and Derivatives



Iodine and derivatives revenues decreased 27.2%
to US$335.4 million in 2014 from US$461.0 million in 2013. Set forth below are sales volume data for the specified years:



|(in Th. MT)                |  | 2014 |     |  | 2013 |  |     | % Change | 
|-------------------------- |  | ---- | --- |  | ---- |  | --- | -------- | 
|Iodine and its derivatives |  |      | 8.8 |  |      |  | 9.3 |          | 



SQM was impacted by the overall lower prices
in 2014, and our prices dropped approximately 23% in 2014 compared to 2013. We expect average prices will continue to decline throughout
2015. We believe we are the lowest-cost producer in Chile and as a result are well positioned to face this challenging environment.



Our sales volumes in the iodine and derivatives
business line decreased approximately 5% in 2014 compared to 2013. In 2015, we expect that our sales volumes will increase as we
work to regain market share.



Lithium and Derivatives



Lithium and derivatives revenues increased
5.3% to US$206.8 million in 2014 from US$196.5 million in 2013. Set forth below are sales volume data for the specified years:



|(in Th. MT)             |  | 2014 |      |  | 2013 |  |      | % Change | 
|----------------------- |  | ---- | ---- |  | ---- |  | ---- | -------- | 
|Lithium and derivatives |  |      | 39.5 |  |      |  | 36.1 |          | 



Prices in the lithium carbonate market fell
slightly during 2014, which was reflected in the approximately 4% decline in average prices for this business line in 2014 compared
to 2013. We expect existing competition will add new supply in 2015, but demand growth should exceed this new supply. Therefore,
we expect average prices to increase in 2015.



Our sales volumes in the lithium business line
increased nearly 10% in 2014 compared to 2013. We achieved particularly strong sales volumes in the fourth quarter, in which we
reported the strongest quarterly sales volumes of 2014. We expect our sales volumes in 2015 to remain relatively stable compared
to 2014, totaling just below 40,000 metric tons.



Potassium



Potassium revenues decreased 3.6% to US$584.3
million in 2014 from US$606.3 million in 2013. Set forth below are sales volume data for the specified years:



|(in Th. MT)                              |  | 2014 |         |  | 2013 |  |         | % Change | 
|---------------------------------------- |  | ---- | ------- |  | ---- |  | ------- | -------- | 
|Potassium chloride and potassium sulfate |  |      | 1,556.2 |  |      |  | 1,434.9 |          | 



The increase of approximately 8% in our sales
volumes in 2014 compared to 2013 was offset by lower average prices in 2014. Although prices recovered gradually during the second
half of 2014, on average for the full year, our sales prices were approximately 11% lower in 2014 compared to 2013.



In 2014, we continued to take advantage of
our developed distribution network and distributed potassium chloride to customers all over the world. Our biggest market continued
to be Brazil, which accounted for approximately one-third of our potassium chloride sales for the year.



77







Industrial Chemicals



Industrial chemicals revenues decreased 33.8%
to US$101.9 million in 2014 from US$154.0 million in 2013. Set forth below are sales volume data for the specified years by product
category:



|(in Th. MT)         |  | 2014 |       |  | 2013 |  |       | % Change | 
|------------------- |  | ---- | ----- |  | ---- |  | ----- | -------- | 
|Industrial nitrates |  |      | 124.7 |  |      |  | 173.5 |          | 
|Boric acid          |  |      | 0.8   |  |      |  | 2.0   |          | 



Industrial chemical demand for traditional
applications remained relatively stable compared to 2013. Solar salt sales volumes reached just over 22,000 metric tons in 2014,
which was a significant decline compared to 2013.



SQM executed solar salt supply agreements for
over 200,000 metric tons to be supplied to four new projects in Africa and Latin America between 2015 and 2017. The majority of
these volumes are expected to be delivered in 2016 and 2017. We will continue to pursue new solar salt business in an effort to
further increase sales volumes. Prospects in the solar salt market remain positive, and 2015 sales volumes in this business line
are expected to be higher than 2014.



Other Products and Services



Revenues from other products and services,
which relate primarily to sales of other commodity fertilizers and certain other products, decreased 20.6% to US$77.7 in 2014 from
US$97.9 million in 2013.



Cost of Sales



Cost of sales decreased 3.4% to US$1,431.2
million in 2014, which represented 71% of revenues, from US$1,481.7 million in 2013, which represented 67% of revenues. This increase
as a percentage of revenues was principally caused by lower prices in most of our products. Cost of sales includes, among other
things, depreciation and amortization costs.



Gross Profit



Gross profit decreased 19.2% to US$583.0 million
in 2014, which represented 28.9% of revenues, from US$721.5 million in 2013, which represented 32.7% of revenues. This decrease
as a percentage of revenues was principally caused by lower average prices in 2014 compared to 2013 in our iodine, nitrates and
lithium business lines.



Other Income



Other income descreased 75.1% to US$24.1 million
in 2014, which represented 1.2% of revenues, from US$96.7 million in 2013, which represented 4.4% of revenues.



Administrative Expenses



Administrative expenses decreased 8.3% to US$96.5
million in 2014, which represented 4.8% of revenues, from US$105.2 million in 2013, which also represented 4.8% of revenues.



78







Other Expenses



Other expenses increased 30.2% to US$64.3 million in 2014, which represented 3.2% of revenues, from US$49.4
million in 2013, which represented 2.2% of revenues.



Other Gains (Losses)



Other gains (losses) increased to a gain of
US$4.4 million in 2014, which represented 0.2% of revenues, from a loss of US$11.4 million in 2013, which represented 0.5% of revenues.



Finance Income



Finance income increased 26.8% to US$16.1 million
in 2014, which represented 0.8% of revenues, from US$12.7 million in 2013, which represented 0.6% of revenues.



Finance Expenses



Finance expenses increased 8.2% to US$63.4
million in 2014, which represented 3.1% of revenues, from US$58.6 million in 2013, which represented 2.6% of revenues.



Equity Income of Associates and Joint Ventures
Accounted for Using the Equity Method



Equity income of associates and joint ventures
accounted for using the equity method decreased 3.7% to US$18.1 million in 2014, which represented 0.9% of revenues, from US$18.8
million in 2013, which represented 0.8% of revenues.



Foreign Currency Exchange Differences



Losses from foreign currency exchange differences
increased 37.5% to US$16.5 million in 2014, which represented 0.8% of revenues, from US$12.0 million in 2013, which represented
0.5% of revenues. A significant portion of our costs is related to the Chilean peso as most of our operations occur in Chile. In
addition, although most of our revenues are in U.S. dollars, we have revenues in other currencies, such as the euro and the South
African rand, which depreciated during 2014. Because the U.S. dollar is our functional currency, we are subject to currency fluctuations.
We aim to mitigate this impact through an active hedging program. During 2014, the Chilean peso depreciated 15.7% against the U.S.
dollar.



Income Tax Expense



Income tax expense increased 16.0% to US$160.7
million in 2014 from US$138.5 million in 2013. The effective tax rate was 39.0% in 2014 compared to 22.6% in 2013. The increase
was due to an increase of US$52.3 million in our deferred tax liabilities, as a result of the 2014 Chilean Tax Reform. See “Government
Regulations–Regulations in Chile Generally.” Excluding this effect, income tax expense decreased 21.7%, to US$108.4
million in 2014, an effective rate of 26.3%. The difference between the statutory and effective tax rates was due primarily to
royalty taxes on income.



Profit for the Year



Profit for the year decreased 48.5% to US$244.3 million in 2014 from US$474.6 million in 2013 primarily
as a result of the foregoing factors and lower prices across multiple business lines compared to 2013.



79







Results of Operations – 2013 compared to 2012



Revenues



Revenues decreased 9.3% to US$2,203.1 million
in 2013 from US$2,429.2 million in 2012. The main factors causing the increase in revenues and the variation in the different product
lines are described below.



Specialty Plant Nutrition



Specialty plant nutrition revenues increased
1.8% to US$687.5 million in 2013 from US$675.3 million in 2012. Set forth below are sales volume data for the specified years by
product category in this product line:

|(in Th. MT)                                    |  | 2013 |       |  | 2012 |  |       | % Change | 
|---------------------------------------------- |  | ---- | ----- |  | ---- |  | ----- | -------- | 
|Potassium nitrate and sodium potassium nitrate |  |      | 512.6 |  |      |  | 469.3 |          | 
|Specialty blends                               |  |      | 208.1 |  |      |  | 197.5 |          | 
|Other specialty plant nutrients (*)            |  |      | 100.8 |  |      |  | 89.0  |          | 
|Sodium nitrate                                 |  |      | 26.2  |  |      |  | 24.4  |          | 

* Includes trading of other specialty fertilizers.



Our sales volumes in the specialty plant nutrition
business line in 2013 increased 8.6% compared to sales volumes in 2012. In general, potassium nitrate prices are less volatile
than other commodity fertilizers such as potassium chloride; we saw prices in the business line decrease 6% during 2013 when compared
to 2012.



Iodine and Derivatives



Revenues for iodine and derivatives decreased
20.3% to US$461.0 million in 2013 from US$578.1 million in 2012. Set forth below are sales volume data for the specified years:



|(in Th. MT)            |  | 2013 |     |  | 2012 |  |      | % Change | 
|---------------------- |  | ---- | --- |  | ---- |  | ---- | -------- | 
|Iodine and derivatives |  |      | 9.3 |  |      |  | 11.0 |          | 



Our sales volumes decreased approximately 15%
in 2013 when compared to 2012. Average prices for 2013 were just under US$50/kg, almost 6% less than prices reported during 2012.
These price decreases were in line with market conditions and our expectations.



Lithium and Derivatives



Revenues for lithium and its derivatives decreased 11.6% to US$196.5
in 2013 from US$222.2 million in 2012. Set forth below are sales volume data for the specified years:



|(in Th. MT)                 |  | 2012 |      |  | 2012 |  |      | % Change | 
|--------------------------- |  | ---- | ---- |  | ---- |  | ---- | -------- | 
|Lithium and its derivatives |  |      | 36.1 |  |      |  | 45.7 |          | 



Our sales volumes in the lithium segment decreased
approximately 21% in 2013, when compared to 2012. This resulted from increased supply from various competitors. We believe our
market share totaled 27% in 2013. Prices remained strong in the lithium market, and our average price in the lithium business line
was almost 12% higher in 2013 than prices seen in 2012.



80







Potassium



Potassium revenues increased 0.2% to US$606.3
million in 2013 from US$606.3 million in 2012. Set forth below are sales volume data for the specified years:



|(in Th. MT)                              |  | 2013 |         |  | 2012 |  |         | % Change | 
|---------------------------------------- |  | ---- | ------- |  | ---- |  | ------- | -------- | 
|Potassium chloride and potassium sulfate |  |      | 1,434.9 |  |      |  | 1,209.5 |          | 



Our potassium chloride and potassium sulfate
sales volumes increased over 18% in 2013 compared to 2012, which was in line with our expectations. As mentioned above, pricing
for the second half of 2013 remained volatile, and we were not immune to impacts. Our average price for the potassium chloride
and potassium sulfate business line in 2013 was approximately 16% lower than average prices reported during 2012.



We continued to take advantage of our developed
distribution network, and distributed potassium chloride to customers all over the world. Our biggest market continued to be Brazil,
which, in 2013, accounted for approximately one third of our potassium chloride sales.



Industrial Chemicals



Industrial chemicals revenues decreased 37.2%
to US$154.0 million in 2013 from US$245.2 million in 2012. Set forth below are sales volume data for the specified years by product
category:



|(in Th. MT)         |  | 2013 |       |  | 2012 |  |       | % Change | 
|------------------- |  | ---- | ----- |  | ---- |  | ----- | -------- | 
|Industrial nitrates |  |      | 173.5 |  |      |  | 277.7 |          | 
|Boric acid          |  |      | 2.0   |  |      |  | 1.8   |          | 



Average prices for industrial chemicals business
line in 2013 remained virtually unchanged compared to 2012. As expected, volumes during 2013 decreased significantly compared to
sales volumes reported during 2012. This is a direct result of a reduction in the sale of solar salts, products used for alternative
energy sources. This decrease in sales volumes was particularly relevant during the second half of 2013 when sales volumes in solar
salts were trivial.



Other Products and Services



Revenues from other products and services,
primarily other commodity fertilizers and other products, decreased 5.1% to US$97.9 million in 2013 from US$103.2 million in 2012.



Cost of Sales



Cost of sales increased 5.0% to US$1,481.7
million in 2013, which represented 67% of revenues, from US$1,400.6 million in 2012, which represented 58% of revenues. This increase
in the percentage of revenues was principally caused higher volumes and lower prices in most of our products. Cost of sales includes,
among others, the costs of depreciation and amortization.



Gross Profit



Gross profit decreased 29.9% to US$721.5 million
in 2013, which represented 32.7% of revenues, from US$1,028.6 million in 2012, which represented 42.3% of revenues. Gross margin
was impacted by generally lower average prices in 2013 compared to 2012 in the fertilizer business lines.



81







Other Income



Other income increased 661.4% to US$96.7 million
in 2013, which represented 4.4% of revenues, from US$12.7 million in 2012, which represented 0.5% of revenues.



Administrative Expenses



Administrative expenses decreased 1.1% to US$105.2
million in 2013, which represented 4.8% of revenues, from US$106.4 million in 2012, which represented 4.4% of revenue. The increase
as a percentage of revenue was mostly caused by decreases in revenues and relatively stable expenses.



Other Expenses



Other expenses increased 42.6% to US$49.3 million
in 2013, which represented 2.2% of revenues, from US$34.6 million in 2012, which represented 1.4% of revenues in 2012.



Other Gains (Losses)



Other gains (losses) decreased to a loss of
US$11.3 million in 2013 from a gain of US$0.7 million in 2012.



Finance Income



Finance income decreased 43.6% to US$12.6 million
in 2013, which represented 0.6% of revenues, from US$29.1 million in 2012, which represented 1.2% of revenues. Financial income
decreased resulting from lower returns in financial investments such as money market and time deposits.



Finance Expenses



Finance expenses increased 8.3% to US$58.6
million in 2013, which represented 2.7% of revenues, from US$54.1 million in 2012, which represented 2.2% of revenues. The increase
in finance expenses was due to a net increase in indebtedness during 2013.



Equity Income of Associates and Joint Ventures
Accounted for Using the Equity Method



Equity income of associates and joint ventures
accounted for using the equity method decreased 23.0% to US$18.8 million in 2013, which represented 0.8% of revenues, from US$24.4
million in 2012, which also represented 1.0% of revenues.



Foreign Currency Exchange Differences



Losses from foreign currency exchange differences
decreased 44.9% to US$12.0 million in 2013, which represented 0.5% of revenues, from US$26.8 million in 2012, which represented
1.1% of revenues. A significant portion of our costs is related to the
Chilean peso as most of our operations occur in Chile. Because the U.S. dollar is our functional currency, we are subject to currency
fluctuations. We try to mitigate this impact through an active hedging program.During 2013, the Chilean peso depreciated
by 9.3% against the U.S. dollar.



Income Tax Expense



Income taxes decreased to US$138.5 million
in 2013 from US$216.1 million in 2012. The effective tax rate in 2013 was 22.5% compared with 24.7% in 2012. The difference between
the statutory and effective tax rates is due primarily to royalty taxes on income.



82







Profit for the Year



Profit for the year decreased 27.8% to US$474.6
million in 2013 from US$657.4 million in 2012, as a result of the foregoing factors. Profit for the year was lower in 2013 resulting
from lower prices across multiple business lines, and lower volumes in lithium, iodine and industrial chemicals when compared to
2012.



Impact of Foreign Exchange Rates



We transact a significant portion of our business
in U.S. dollars, which is the currency of the primary economic environment in which we operate and is our financial currency for
financial reporting purposes. A significant portion of our costs is related to the Chilean peso as most of our operations occur
in Chile, and therefore an increase or decrease in the exchange rate between the Chilean peso and the U.S. dollar affects our costs
of production. Additionally, as an international company operating in Chile and several other countries, we transact a portion
of our business and have assets and liabilities in Chilean pesos and other non-U.S. dollar currencies, such as the Euro, the South
African Rand and the Mexican peso. As a result, fluctuations in the exchange rate of such currencies to the U.S. dollar may affect
our financial condition and results of operations. See Note 23 to the Financial Statements included in this Annual Report.



We monitor and attempt to balance our non-dollar
assets and liabilities position, including through foreign exchange contracts and other hedging instruments, to minimize our exposure
to foreign exchange rate risk. As of December 31, 2014, for hedging purposes we had open contracts to buy U.S. dollars and sell
euros for approximately US$31.7 million (EUR 25.2 million) and sell South African rand for approximately US$25.3 million (ZAR 289
million), as well as forward exchange contracts to sell U.S. dollars and buy Chilean pesos for US$89.5 million (Ch$54,304 million).
All of our UF and Chilean pesos bonds were hedged with cross-currency swaps to the U.S. dollar for approximately US$ 368 million
as of December 31, 2014.



In addition, we had open forward exchange contracts
to buy U.S. dollars and sell Chilean pesos for approximately US$274 million (Ch$166,229 million) to hedge our time deposits in
Chilean pesos.



5.B.  Liquidity
and Capital Resources



As of December 31, 2014, we had US$1,008.0
million of cash and cash equivalents and time deposits. In addition, as of December 31, 2014, we had US$546.0 million of unused
uncommitted working capital credit lines.



Shareholders’ equity decreased to US$2,292.5 million as of December 31, 2014 from US$2,432.2 million
as of December 31, 2013. Our ratio of total liabilities to total equity (including non-controlling interest) on a consolidated
basis increased to 1.03 as of December 31, 2014 from 0.96 as of December 31, 2013.



We evaluate from time to time our cash requirements
to fund capital expenditures, dividend payouts and increases in working capital, but we believe our working capital is sufficent
for our present requirements. As debt requirements also depend on the level of accounts receivable and inventories, we cannot accurately
determine the amount of debt we will require nor are our 	 requirements typically seasonal.



83







The table below shows our cash flows for 2014, 2013 and 2012:



|(in millions of U.S. dollars)                                      |  | 2014 |        |   | 2013 |  |        | 2012 | 
|------------------------------------------------------------------ |  | ---- | ------ | - | ---- |  | ------ | ---- | 
|Net cash from (used in):                                           |  |      |        |   |      |  |        |      | 
|Net cash from operating activities                                 |  |      | 591.0  |   |      |  | 651.7  |      | 
|Net cash used in financing activities                              |  |      | (388.0 | ) |      |  | (2.3   | )    | 
|Net cash used in investing activities                              |  |      | (311.4 | ) |      |  | (487.4 | )    | 
|Effects of exchange rate fluctuations on cash and cash equivalents |  |      | (13.7  | ) |      |  | (9.8   | )    | 
|Net increase (decrease) in cash and cash equivalents               |  |      | (122.1 | ) |      |  | 152.3  |      | 



We operate a capital-intensive business that
requires significant investments in revenue-generating assets. Our past growth strategies have included purchasing production facilities
and equipment and the improvement and expansion of existing facilities. Funds for capital expenditures and working capital requirements
have been obtained from net cash from operating activities, borrowing under credit facilities and issuing debt securities.



The Board of Directors approved a capital expenditures
plan for 2015 of US$182 million in connection with investments to be made in Chile. The 2015 capital investment program is primarily
focused on the maintenance of our production facilities. Our 2015 capital investment program does not call for any external financing,
however, we reserve the right to access capital markets in order to optimize our financial position. See “Item 4.A. History
and Development of the Company–Capital Expenditure Program.”



Our other major use of funds is for dividend
distributions. We paid dividends of US$373.8 million and US$273.6 million during 2014 and 2013, respectively. Our 2014 dividend
policy, as approved by our shareholders, is to pay 50% of our profit as calculated in our financial statements filed with the SVS
for each fiscal year in dividends. Under Chilean law, the minimum dividend payout is 30% of profit for each fiscal year.



Financing Activities



Our current ratio, defined as current assets
divided by current liabilities, increased to 4.80 as of December 31, 2014 from 3.40 as of December 31, 2013. The following table
shows key information about our outstanding long- and short-term debt as of December 31, 2014.



|Debt Instrument(1)(2)                   |  | Interest Rate |      |   | Issue Date |               | Maturity Date |               | Amortization
|--------------------------------------- |  | ------------- | ---- | - | ---------- | ------------- | ------------- | ------------- | ------------
|Bilateral loan — US$20 million          |  |               | 0.41 | % |            | Aug. 28, 2014 |               | Feb. 25, 2015 |             
|Bilateral loan — US$20 million          |  |               | 0.38 | % |            | Nov. 17, 2014 |               | May. 22, 2015 |             
|Bilateral loan — US$20 million          |  |               | 0.59 | % |            | Jun. 19, 2014 |               | Jun. 10, 2015 |             
|Bilateral loan — US$20 million          |  |               | 0.46 | % |            | Aug. 26, 2014 |               | Aug. 21, 2015 |             
|Bilateral loan — US$20 million          |  |               | 0.59 | % |            | Oct. 14, 2014 |               | Sep. 2, 2015  |             
|Bilateral loan — US$50 million          |  |               | 1.37 | % |            | Oct. 19, 2012 |               | Oct. 19, 2015 |             
|6.125% Notes due 2016 — US$ 200 million |  |               | 6.13 | % |            | Apr. 15, 2006 |               | Apr. 15, 2016 |             
|Bilateral loan — US$40 million          |  |               | 2.34 | % |            | Oct. 6, 2011  |               | Oct. 6, 2016  |             
|Bilateral loan — US$40 million          |  |               | 0.97 | % |            | Oct. 12, 2011 |               | Oct. 12, 2016 |             
|Bilateral loan — US$40 million          |  |               | 1.94 | % |            | Dec. 21, 2011 |               | Dec. 21, 2016 |             
|Series M Bond — UF 1.0 million          |  |               | 2.90 | % |            | Feb. 1, 2012  |               | Feb. 1, 2017  |             
|Bilateral loan — US$140 million         |  |               | 2.33 | % |            | Oct. 29, 2009 |               | Sep. 13, 2017 |             
|5.50% Notes due 2020 — US$ 250 million  |  |               | 5.50 | % |            | Apr. 21, 2010 |               | Apr. 21, 2020 |             
|3.625% Notes due 2023 — US$ 300 million |  |               | 3.63 | % |            | Apr. 3, 2013  |               | Apr. 3, 2023  |             
|4.375% Notes due 2025 — US$ 250 million |  |               | 4.38 | % |            | Oct. 28, 2014 |               | Jan. 28, 2025 |             
|Series C Bond — UF 1.8 million          |  |               | 5.84 | % |            | Dec. 1, 2005  |               | Dec. 1, 2026  |             
|Series H Bond — UF 4 million            |  |               | 4.03 | % |            | Jan. 5, 2009  |               | Jan. 5, 2030  |             
|Series O Bond — UF 1.5 million          |  |               | 3.56 | % |            | Feb. 1, 2012  |               | Feb. 1, 2033  |             



| | (1) | UF- denominated bonds are fully hedged to U.S. dollars
with cross-currency swaps.
| | --- | ---------------------------------------------------------------------------------

| | (2) | Some floating rate bilateral loans are currently hedged
to fixed rate loans using interest rate swaps.
| | --- | ------------------------------------------------------------------------------------------------------



84







As of December 31, 2014, we had total financial
debt of US$1,748 million compared to US$1,815 million as of December 31, 2013. Taking into account the effects of financial derivatives,
our total financial debt amounted to US$1,786 million as of December 31, 2014 and US$1,792 million as of December 31, 2013. Of
the total debt as of December 31, 2014, US$211.4 million was short-term debt. All of our UF local bonds were hedged with cross-currency
swaps to the U.S. dollar as of December 31, 2014.



As of December 31, 2014, all of our long-term
debt, including the current portion, was denominated in U.S. dollars, and all our UF-denominated bonds were hedged with cross-currency
swaps to the U.S. dollar.



The financial covenants related to our debt
instruments include: (i) limitations on the ratio of total liabilities to equity (including non-controlling interest) on a consolidated
basis, (ii) minimum net worth requirements, (iii) limitations on net financial debt to EBITDA, (iv) limitations on interest indebtedness
of operating subsidiaries and (v) minimum production assets. We believe that the terms and conditions of our debt agreements are
standard and customary and that we are in compliance in all material respects with such terms and conditions as of December 31,
2014.



The following table shows the maturities of
our long-term debt by year as of December 31, 2014 (in millions of US dollars):



|Maturity(1)         |  | Amount |        
|------------------- |  | ------ | -------
|                    |  |        |        
|2015                |  |        | 196.1  
|2016                |  |        | 286.1  
|2017                |  |        | 186.7  
|2018                |  |        | 6.1    
|2019                |  |        | 13.5   
|2020 and thereafter |  |        | 1,058.5
|Total               |  |        | 1,746.9



| | (1) | Only the principal amount has been included. For the UF-denominated local bonds, the amounts presented
reflect the real U.S. dollar obligation as of December 31, 2014, not including the effects of the cross currency swaps that hedge
these bonds to the U.S. dollar and which had, as of December 31, 2014, a market value of US$37 million in favor of SQM.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



85







Environmental and Occupational Safety
and Health Projects





We spent US$7.8 million on environmental, safety
and health projects in 2014. We have budgeted approximately US$7.9 million in 2015 for environmental, safety and health projects.
This amount forms part of the capital expenditure program discussed above.



5.C.
Research and Development, Patents and Licenses, etc.



One of the main objectives of our
research and development team is to develop new processes and products in order to maximize the returns obtained from the resources
that we exploit. Our research is performed by four different units whose research topics include chemical process design, phase
chemistry, chemical analysis methodologies and physical properties of finished products.



Our research and development policy
emphasizes the following: (i) optimization of current processes in order to decrease costs and improve product quality through
the implementation of new technology and (ii) development of higher-margin products from current products through vertical integration
or different product specifications.



Our research and development activities
have been instrumental in improving our production processes and developing new value-added products. As a result of research and
development activities, new methods of extraction, crystallization and finishing products have been developed. Technological advances
in recent years have enabled us to improve process efficiency for the nitrate, potassium and lithium operations, improve the physical
quality of our prilled products and reduce dust emissions and caking by applying specially designed additives to our products handled
in bulk. Our research and development efforts have also resulted in new, value-added markets for our products. One example is the
use of sodium nitrate and potassium nitrate as thermal storage in solar power plants.



We have patented several production processes
for nitrate, iodine and lithium products. These patents have been filed mainly in the United States, Chile and in other countries
when necessary. The patents used in our production processes include Chilean patent No. 47,080 for iodine (production of spherical
granules of chemicals that sublime), Japanese patent No. 4,889,848 for nitrates (granular fertilizers) and patent Numbers 41,838
from Chile, 5393-B and 5391-B from Bolivia, AR001918B1 and AR001916B1 from Argentina and 5,676,916 and 5,939,038 from the U.S.
for lithium (removal of boron from brines).



For the years ended December 31,
2014, 2013 and 2012, we invested US$7.4 million, US$ 9.2 million and US$10.4 million, respectively, on research and development
activities.



5.D. Trend Information



Our revenues decreased 8.6% to US$2,014.2 million in 2014 from US$2,203.1 million in 2013. Gross margin
decreased 19.2% to US$583.0 million in 2014, which represented 28.9% of revenues, from US$721.5 million in 2013, which represented
32.7% of revenues. Profit attributable to controlling interests decreased 49.3% to US$236.9 million in 2014 from US$467.1 million
in 2013.



Our sales volumes in the
specialty plant nutrition business line increased 3.6% in 2014 compared to 2013, while prices were relatively flat. As a result,
our revenues in this business line increased approximately 3.0%. Potassium nitrate is the most important product in this business
line, and according to our estimates, worldwide demand growth for this product grew over 10% in 2014, led by demand in North America.
We believe demand growth was also supported by the shortage in the potassium sulfate market during the year, as farms sought out
alternative sources of chloride-free potassium. We expect demand for potassium nitrate to continue to grow around 5% in 2015. We
believe we are prepared to meet the growing market demand in the future.



86







Our sales volumes in the iodine
business line decreased 5.4% in 2014, and significant downward pressure on prices throughout the year led to a total decrease of
just over 23% in average prices compared to 2013. Prices are expected to decline further in 2015. However, we believe we are the
lowest cost producer in Chile and are therefore well positioned to face the challenging pricing environment. We expect that our
sales volumes will increase as we work to regain some of our market share. According to our estimates, the worldwide iodine market
grew approximately 3% during 2014. We believe that market demand reached approximately 31,600 metric tons, of which SQM had a market
share of approximately 26%. Demand was led by growth in the x-ray contrast media and pharmaceutical industries. We expect worldwide
demand to grow over 3% in 2015, in part related to lower prices.



Our sales volumes in the lithium
business line increased 9.4% in 2014 compared to 2013, and we expect our sales volumes to remain relatively stable in 2015. According
to our estimates, worldwide demand for lithium grew over 9% in 2014, driven primarily by growth of over 14% in the rechargeable
battery market, and growth should continue in 2015. We expect other lithium producers to add some new supply in 2015, but we believe
the demand growth will exceed the new supply, which should lead to an increase in average prices. We estimate that our market share
for 2014 was approximately 27%.



Our sales volumes in the
potassium business line increased 8.5% in 2014 compared to 2013. Although average prices for the business line were 11.1% lower
year over year, prices did increase during the second half of 2014. Demand for potassium chloride was very strong in 2014, reaching
an estimated total of over 60 million metric tons. We do not expect to see further market growth during 2015, and we expect our
sales volumes in the potassium business line to be similar in 2015 to their 2014 level.



Our sales volumes in the industrial
chemicals product line decreased 28.5% in 2014 compared to 2013, largely due to lower solar salt sales volumes. However, we remain
confident in the long-term prospects in the solar thermal energy storage market. We have executed supply agreements of solar salts
for over 200,000 metric tons to be supplied between 2015 and 2017. The majority of these sales volumes are expected to be delivered
during 2016 and 2017. Demand for traditional applications of industrial chemicals remained relatively stable in 2014 compared to
2013.



5.E. Off-Balance
Sheet Arrangements



We have not entered into
any transactions with unconsolidated entities whereby we have financial guarantees, retained or contingent interests in transferred
assets, derivative instruments or other contingent arrangements that would expose us to material continuing risks, contingent liabilities,
or any other obligations arising out of a variable interest in an unconsolidated entity that provides financing, liquidity, market
risk or credit risk support to us or that engages in leasing, hedging or research and development services with us.



5.F. Tabular
Disclosure of Contractual Obligations



The following table shows our material expected
obligations and commitments as of December 31, 2014:

|                                              |  |       |           |  |           |  |         |       |  |  |         |  |  | More    |       
|--------------------------------------------- |  | ----- | --------- |  | --------- |  | ------- | ----- |  |  | ------- |  |  | ------- | ------
|                                              |  |       |           |  | Less Than |  |         | 1 - 3 |  |  | 3 - 5   |  |  | Than    |       
|                                              |  | Total |           |  | 1 year    |  |         | years |  |  | Years   |  |  | 5 years |       
|                                              |  | ThUS$ |           |  | ThUS$     |  |         | ThUS$ |  |  | ThUS$   |  |  | ThUS$   |       
|Long- and short-term debt (1)                 |  |       | 1,787,397 |  |           |  | 213,172 |       |  |  | 472,376 |  |  |         | 12,176
|Capital lease obligations                     |  |       | -         |  |           |  | -       |       |  |  | -       |  |  |         | -     
|Operating leases                              |  |       | 45,365    |  |           |  | 2,835   |       |  |  | 5,671   |  |  |         | 5,671 
|Purchase commitments (2)                      |  |       | 15,966    |  |           |  | 15,966  |       |  |  | -       |  |  |         | -     
|Staff severance indemnities                   |  |       | 30,952    |  |           |  | -       |       |  |  | -       |  |  |         | -     
|Total contractual obligations and commitments |  |       | 1,879,680 |  |           |  | 231,973 |       |  |  | 478,047 |  |  |         | 17,847





(1) Includes interest.



(2) The purchase commitments held by the Company
are recognized as a liability when the services and goods are received by the Company.





87







| | 5.G. | Safe Harbor
| | ---- | -----------



The information contained in Items
5.E and 5.F contains statements that may constitute forward-looking statements. See “Cautionary Statement Regarding Forward-Looking
Statements” in this Annual Report, for safe harbor provisions.



ITEM 6.	DIRECTORS, SENIOR MANAGEMENT
AND EMPLOYEES



| | 6.A. | Directors and Senior Management
| | ---- | -------------------------------



We are managed by our executive
officers under the direction of our Board of Directors, which, in accordance with our by-laws, consists of eight directors, seven
of whom are elected by holders of Series A common shares and one of whom is elected by holders of Series B common shares. The
entire Board of Directors is regularly elected every three years at our Ordinary Shareholders’ Meeting. Cumulative voting
is allowed for the election of directors. The Board of Directors may appoint replacements to fill any vacancies that occur during
periods between elections. If a vacancy occurs, the entire Board must be elected or re-elected at the next regularly scheduled
Ordinary Shareholders’ Meeting. Our Chief Executive Officer is appointed by the Board of Directors and holds office at the
discretion of the Board. The Chief Executive Officer appoints our executive officers. There are regularly scheduled meetings of
the Board of Directors once a month. Extraordinary meetings may be called by the Chairman when requested by (i) the director elected
by holders of the Series B common shares, (ii) any other director with the assent of the Chairman or (iii) an absolute majority
of all directors. The Board has a Directors’ Committee and its regulations are discussed below.



The current Board of Directors
was elected for a three-year term at the Annual Ordinary Shareholders’ Meeting that took place on April 24, 2015.



Our current directors are as follows:



|Name                   |  | Position
    and relevant experience                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Current
    positionheld since
|---------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------
|Juan Antonio Guzmán M. |  | Chairman of the Board and Director. Mr. Guzmán is an
    Industrial and Chemical Engineer from Pontificia Universidad Católica de Chile and has a Ph.D. from the Polytechnic
    of North London. He has professional experience in managing different organizations both in the public sector as a former
    Minister of Education and in the private sector, where he has been appointed to several executive positions as CEO and board
    member (Gener, CGE, Sonda, Soquimich, Indisa,Chilean
    Canadian Chamber of Commerce). In addition, he has been active in entrepreneurial activities including in the energy, mining,
    real estate and health sectors. He has been an SQM board member since 2013. |  | April 2015                    



88







|Name                  |  | Position
    and relevant experience                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | Current
    positionheld since
|--------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------
|                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |                               
|Edward J. Waitzer (1) |  | Vice Chairman of the Board and Director. Mr. Waitzer was Chair
    of Stikeman Elliott LLP, a leading Canadian law firm, from 1999 to 2006 and remains a senior partner whose practice focuses
    on complex business transactions.  He also advises on a range of public policy and governance matters.  He is a
    professor and the Jarislowsky Dimma Mooney Chair in Corporate Governance and is director of the Hennick Centre for Business
    and Law at Osgoode Hall and the Schulich School of Business at York University.  Mr. Waitzer served from 1993 to 1996
    as Chair of the Ontario Securities Commission and of the Technical Committee of the International Organization of Securities
    Commissions and as Vice-President of The Toronto Stock Exchange until 1981. He is Chair of the Liquor Control Board of
    Ontario. He has written and spoken extensively on a variety of legal and public policy issues and serves or has served
    as director of a number of corporations, foundations, community organizations, editorial boards and advisory groups, including
    the Canadian Foundation for the Advancement of Investors Rights. He is currently the President of the Canada-Chile Business
    Council and spent 2003 to 2004 as an advisor to the SVS in Santiago, Chile. He earned his LL.B. in 1976 and his LL.M.
    in 1981 from the Faculty of Law, University of Toronto. Mr. Waitzer was called to the Ontario Bar in 1978 and admitted to
    the New York Bar in 1985. |  | April 2015                    
|                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |                               
|Joanne L. Boyes       |  | Director. Ms Boyes, a Senior Director of Corporate Reporting,
    Finance and Compliance, has been with PotashCorp since 2004 and is responsible for external financial and integrated reporting,
    complex accounting, treasury activities and internal controls compliance.  She is a regular management participant
    on PotashCorp’s Audit Committee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | April 2015                    
|                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |                               
|Hernán Büchi B.       |  | Director. Mr. Büchi is a Civil Engineer with a degree from
    the Universidad de Chile. He served as Vice Chairman of SQM’s Board from January 2000 to April 2002. He is currently
    a member of the Board of Directors of Quinenco S.A. and S.A.C.I. Falabella, among others. He is also Chairman of the Board
    of Directors of the Universidad del Desarrollo.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | April 1993                    



89







|Name                         |  | Position and
    relevant experience                                                                                                                                                                                                                                                                                                                                                                                    |  | Current
    positionheld since
|---------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------
|                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                               
|Robert A. Kirkpatrick        |  | Director. Mr. Kirkpatrick, a Vice President, Deputy General
    Counsel and Assistant Corporate Secretary of PotashCorp, has been with PotashCorp since 1994 and is responsible for securities
    regulatory compliance and advising on corporate finance and development matters.  He is a regular management participant
    on PotashCorp’s Corporate Governance and Nominating Committee.                          |  | April 2015                    
|                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                               
|Hans Dieter Linneberg A. (2) |  | Director. Mr. Linneberg is an Economist from the Universidad
    de Chile.  He also received a Ph.D. from the Université Catholique Louvain, in Belgium.  Currently,
    he is the Executive Director of the Corporate Governance and Capital Markets Department at the Business School of the Universidad
    de Chile, where he is also a faculty member lecturing on corporate governance and international finance. |  | April 2015                    
|                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                               
|Arnfinn F. Prugger           |  | Director. Mr. Prugger, Vice President, Technical Services for
    PCS Potash, has been with the company for over 25 years and has a wide range of senior–level experience in mining and
    geophysics.                                                                                                                                                                                                                 |  | April 2015                    
|                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                               
|Wolf von Appen B.            |  | Director. Mr. Von Appen is an entrepreneur. He is currently
    a member of Centro de Estudios Publicos.                                                                                                                                                                                                                                                                                                                |  | May 2005                      



Our current executive officers are as follows:



|Name                          |  | Position and
    relevant experience                                                                                                                                                                                                                                                                                                                      |  | Current
    positionheld since
|----------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------
|Patricio de Solminihac T. (3) |  | Chief Executive Officer. Mr. de Solminihac is an Industrial Engineer with a degree from the
    Pontificia Universidad Católica de Chile and holds a Master in Business Administration from the University of Chicago. He
    joined SQM in 1988 as Business Development Vice President. Currently he is a member of the Board of Directors of Melon S.A. |  | March 2015                    



90







|Name                  |  | Position and
    relevant experience                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | Current
    positionheld since
|--------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------
|Matías Astaburuaga S. |  | General Counsel and Senior Vice President. Mr. Astaburuaga is
    a lawyer with a degree from the Pontificia Universidad Católica de Chile. He joined SQM in 1989. Prior to joining
    SQM, he was Regional Counsel of The Coca Cola Export Corporation, Andean Region and Regional Counsel of American Life Insurance
    Company, Latin America Region.                                                                                                                              |  | February 1989                 
|                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                               
|Ricardo Ramos R.      |  | Chief Financial Officer and Senior Vice President of Business
    Development. Mr. Ramos is an Industrial Engineer with a degree from the Pontificia Universidad Católica de Chile. He
    joined SQM in 1989. Mr. Ramos is also a member of the Board of Directors of Soquimich Comercial S.A.                                                                                                                                                                                         |  | November 1994                 
|                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                               
|Eugenio Ponce L.      |  | Senior Commercial Vice President. Mr. Ponce is a Mechanical
    Engineer with a degree from the Universidad Católica de Valparaíso. In 1981, he joined SQM as a Sales Manager. He
    became Commercial Manager in 1982, Commercial and Operations Manager in 1988 and Chief Executive Officer of SQM Nitratos S.A.
    in 1991. Currently he is a member of the Board of Directors of Soquimich Comercial S.A. and Vice Chairman of the Board of
    Directors of Pampa Calichera S.A. |  | March 1999                    
|                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                               
|Carlos Díaz O.        |  | Senior Vice President of Operations, Nitrates-Iodine. Mr. Díaz
    is an Industrial Civil Engineer with an engineering degree and an MBA from the Pontificia Universidad Católica de Chile.
    In 1996, he joined SQM as Planning Engineer in the Sales Division where he was promoted to Planning Manager in 1998. In 2002,
    he assumed the position of Deputy Financial Manager of the Commercial Offices and after four years took up the position of
    Logistics Manager.     |  | October 2012                  



91







|Name                      |  | Position and
    relevant experience                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | Current
    positionheld since
|------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------
|Pauline De Vidts S.       |  | Senior Vice President of Human Resources and Sustainability.
    Mrs. De Vidts is an Industrial Engineer with a degree from the Pontificia Universidad Católica de Chile and holds a
    Ph.D. in Chemical Engineering from Texas A&M University. She joined SQM in 1996 to work in process development for the
    Salar de Atacama Operations, becoming Development Manager for these operations in 1998, and later Corporate R&D and Environmental
    Issues Vice President in 2001. Since 2005, she has overseen safety, health, environmental and community issues, and in 2011,
    she also began overseeing corporate communications and public affairs for SQM.                                                                         |  | August 2013                   
|                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                               
|Juan Carlos Barrera P.(4) |  | Senior Vice President Operations, Potassium and Lithium. Mr.
    Barrera is an Industrial Engineer with a degree from the Pontificia Universidad Católica de Chile and holds a Masters
    in Business Administration degree from Tulane University and a Masters in Business Administration degree from Universidad
    de Chile.  He joined SQM in 1991 as an advisor in the Business Development area and has served in many positions since
    then. In 1995, he became Business Development Manager of SQM Nitratos S.A. In 1999, he became the Corporate Quality Manager,
    in 2000, Corporate Supply Chain Vice President and, in 2006, General Manager of Soquimich Comercial S.A.                                                     |  | January 2007                  
|                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                               
|Daniel Jiménez Sch.       |  | Senior Vice President of Exploration. Mr. Jiménez is
    an Industrial Engineer with a degree from the Pontificia Universidad Católica de Chile and holds a Masters in Business
    Administration degree from Old Dominion University. He joined SQM in 1991, holding several positions in the finance and sales
    areas at SQM’s headquarters and foreign subsidiaries in USA and Belgium, countries he was based in for eight years. 
    In 2002, he became VP Sales and Marketing Iodine, Lithium and Industrial Chemicals. In 2007, he became Senior VP of Human
    Resources and Corporate Services. In 2013 he became Senior VP of Exploration. Mr. Jiménez is also a member of the Board
    of Directors of Soquimich Comercial S.A. |  | August 2013                   



92







|Name                |  | Position and
    relevant experience                                                                                                                                                                                                                                                                                             |  | Current
    positionheld since
|------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------
|Macarena Briseño C. |  | Head of Risk Management and Compliance. Ms. Briseño is
    a Civil Engineer with a degree from the Pontificia Universidad Católica de Chile. She joined SQM in 1993 as a planning
    engineer, first in the sales department and then in the finance department. She became VP of Reporting in 2001 and Controller
    in 2003. |  | August 2013                   



| | (1) | As of April 24, 2015, Mr. Waitzer beneficially owned 10,000
                                         of SQM’s shares.
| | --- | ---------------------------------------------------------------------------------------------------------------------

| | (2) | As of April 24, 2015, Mr. Linneberg beneficially owned 455
                                         of SQM’s shares.
| | --- | --------------------------------------------------------------------------------------------------------------------

| | (3) | On March 16, 2015, Mr. Patricio de
                                         Solminihac T. was named as Chief Executive Officer of SQM.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------

| | (4) | As of April 24, 2015, Mr. Barrera
                                         beneficially owned 224 of SQM’s shares.
| | --- | ------------------------------------------------------------------------------------------------------------------



| | 6.B. | Compensation
| | ---- | ------------



During 2014, directors were paid
a monthly fee, which was independent of attendance and the number of Board sessions. For the Chairman, the fee amounted to UF
300 per month. For the remaining seven directors, the fee amounted to UF 50 per month for the period between January and April,
and UF 125 per month for the period between May and December. In addition, the directors received variable compensation (in Chilean
pesos) based on a profit-sharing program approved by the shareholders. In 2014, the Chairman received the equivalent of 0.35%
of 2013 profit and each of the remaining seven directors received the equivalent of 0.04% of 2013 profit.



In addition, during 2014, members
of the Directors’ Committee were paid UF 17 per month for the period between January and April and UF 75 per month for the
period between May and December, regardless of the number of sessions held by the Directors’ Committee. In addition, the
members of the Directors’ Committee received variable compensation (in Chilean pesos) based on a profit-sharing program
approved by the shareholders. In 2014, members of the Directors’ Committee each received an amount equal to 0.013% of 2013
profit. This remuneration is also independent from what the Committee members obtain as members of our Board of Directors.



At the Ordinary Shareholders’
Meeting held on April 25, 2014, shareholders approved the creation of a Health, Safety and Environment Committee. Members of this
committee were paid UF 30 per month, regardless of the number of sessions held.



During 2014, the compensation paid
to each of our directors who served on the Board during the year was as follows (amounts in Chilean pesos):



|                             |  | SQM BoardMeeting(Ch$) |               |  | SQM Directors’Committee(Ch$) |  |             | SQM Health, Safetyand EnvironmentCommittee (Ch$) |  |  | SQMC BoardMeeting (Ch$) |  |  | Total (Ch$) |           
|---------------------------- |  | --------------------- | ------------- |  | ---------------------------- |  | ----------- | ------------------------------------------------ |  |  | ----------------------- |  |  | ----------- | ----------
|Julio Ponce Lerou            |  |                       | 994,050,636   |  |                              |  | —           |                                                  |  |  | —                       |  |  |             | 86,438,001
|Wayne R. Brownlee            |  |                       | 131,599,461   |  |                              |  | —           |                                                  |  |  | 5,075,089               |  |  |             | —         
|Hernán Büchi Buc             |  |                       | 132,761,291   |  |                              |  | 49,068,490  |                                                  |  |  | —                       |  |  |             | —         
|Patricio Contesse Fica       |  |                       | 129,245,311   |  |                              |  | 43,973,524  |                                                  |  |  | 5,075,089               |  |  |             | —         
|José María Eyzaguirre Baeza  |  |                       | 131,599,454   |  |                              |  | —           |                                                  |  |  | 5,075,089               |  |  |             | —         
|Juan Antonio Guzmán Molinari |  |                       | 131,599,460   |  |                              |  | 48,673,467  |                                                  |  |  | —                       |  |  |             | —         
|Alejandro Montero Purviance  |  |                       | 131,602,164   |  |                              |  | —           |                                                  |  |  | —                       |  |  |             | —         
|Wolf Von Appen Behrman       |  |                       | 132,761,293   |  |                              |  | 49,068,491  |                                                  |  |  | —                       |  |  |             | —         
|Total                        |  |                       | 1,915,219,070 |  |                              |  | 146,810,448 |                                                  |  |  | 15,224,967              |  |  |             | 86,438,001



93







For the year ended December 31,
2014, the aggregate compensation paid to our 108 principal executives based in Chile was Ch$15,573 million (approximately US$25.7
million). We do not disclose to our shareholders or otherwise make available to the public information as to the compensation
of our individual executive officers.



We maintain incentive programs
for our employees based on individual performance, company performance and short- medium- and long-term indicators. Additionally,
in order to provide incentives to key executives and to retain such executives, we maintain a long-term cash bonus compensation
plan for certain senior executives, which consists of a long-term bonus linked to share price and is payable between 2016 and
2018.



As of December 31, 2014, the provision
providing a long-term bonus linked to our share price would have increased or decreased by approximately US$1.5 million per each
movement of US$1 in the Series B common share price, when the share price is above US$50. The amount of actual cash bonuses payable
under the long-term incentive program will vary depending on the market share price of the Series B common shares on the date
as of which the bonuses are paid.



As of December 31, 2014, we had
a provision related to all of the incentive programs in an aggregate of US$18.4 million.



We do not maintain any pension
or retirement programs for the members of the Board or our executive officers in Chile.



| | 6.C. | Board Practices
| | ---- | ---------------



Information regarding the period
of time each of SQM’s current Directors has served in his office is provided in the discussion of each member of the Board
above in Item 6.A. Directors and Senior Managers.



The date of expiration of the term
of the current Board of Directors is April 2018. The contracts of our executive officers are indefinite.



The members of the Board are remunerated
in accordance with the information provided above in Item 6.B. Compensation. There are no contracts between SQM, or any of its
subsidiaries, and the members of the Board providing for benefits upon termination of their term.



Directors’ Committee – Audit Committee



As required by Chilean Law, during 2014 we
had a Directors’ Committee (Comité de Directores) composed of three Directors, which performs many of the
functions of an audit committee. This Directors’ Committee complies with the requirements of the NYSE corporate governance
rules applicable to audit committees. Under the NYSE corporate governance rules, the audit committee of a U.S. company must perform
the functions detailed in the NYSE Listed Company Manual Rules 303A.06 and 303A.07. Non-U.S. companies are required to comply
with Rule 303A.06 but are not at any time required to comply with Rule 303A.07.



As of April 24, 2015, our Directors’
Committee was comprised of three Directors, Hernán Büchi B., Hans Dieter Linneberg A. and Edward J. Waitzer, each
of whom meets the NYSE independence requirements for audit committee members. According to Chilean independence requirements,
Mr. Linneberg and Mr. Waitzer meet the requirements for independence.



94







During 2014, our Directors’ Committee
was comprised of three Directors: Mr. Buchi, Mr. Guzmán and Mr. Von Appen. Each of the three members met the NYSE independence
requirements for audit committee members. According to Chilean independence requirements, Mr. Guzmán met the requirements
for independence.



During 2014, the Directors’ Committee
of SQM (the “Committee”) analyzed (i) the Company’s Unaudited Financial Statements and Reports; (ii) the Company’s
Audited Financial Statements and Reports; (iii) the Reports and proposals of external auditors, accounts inspectors and independent
risk rating agencies for the Company; (iv) the proposal to SQM’s Board of Directors about the external auditors and independent
rating agencies that the Board could recommend to the respective shareholders’ meeting for their subsequent appointment;
(v) the tax and other services, other than audit services, provided by the Company’s external auditors and its subsidiaries
in Chile and abroad; (vi) the remuneration and compensation plans for the Company’s main executives; (vii) the information
related to the Company’s operations as referred to in Title XVI of the Corporations Act and (viii) the report on internal
control of the Company and (ix) other matters.



Regarding the above, the Committee:



| | (a) | Examined the information
                                         regarding the financial statements of SQM for the 2013 business year and the Report issued
                                         thereon by the External Auditors of SQM. Similarly, it also examined the Company’s
                                         Interim Consolidated Financial Statements for the 2014 business year.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | Examined: (i) during
                                         its Meeting number 88 on January 07, 2014, the subscription of two “Maritime Transport
                                         Contracts” between the “SQM Group” and the “Ultramar Group,”
                                         linked to Mr. Wolf von Appen B., Director of SQM S.A. The Company’s Directors’
                                         Committee approved said subscriptions and the Board of Directors of SQM S.A., subsequently,
                                         in its Board of Directors Meeting number 680 on January 21, 2014, was informed in a timely
                                         manner about said approvals and, in turn, confirmed that said Contracts were agreed upon
                                         with the prices, terms and other conditions similar to those prevailing in the respective
                                         markets at the pertinent time and, consequently, the Directors present unanimously approved
                                         their subscription with the sole abstention from Director Mr. Von Appen, and declared
                                         that the latter does not constitute an Essential fact for the Company; (ii) the two “Maritime
                                         Transport Contracts” between the “SQM Group” and the “Ultramar
                                         Group,” linked to Mr. Wolf von Appen B., Director of SQM S.A. and which the Board
                                         of Directors of SQM S.A., during its Board of Directors Meeting number 690 on September
                                         16, 2014, confirmed that said contracts were agreed upon with the prices, terms and other
                                         conditions similar to those prevailing in the respective markets at the pertinent time
                                         and, consequently, the Directors present unanimously approved their subscription with
                                         the sole abstention of Director Mr. Von Appen, and declared that the latter does not
                                         constitute an Essential Fact for the Company; (iii) during its Meeting number 94 on December
                                         16, 2014, the three “Legal Services Provision Agreements” between the “SQM
                                         Group” and the Law Firm, “Estudio de Abogados Claro y Cía,”
                                         linked to Messieurs Wayne R. Brownlee and José María Eyzaguirre B., Directors
                                         of SQM. The Company’s Directors Committee approved said Agreements and the Board
                                         of Directors of SQM S.A., subsequently, in its Board of Directors Meeting number 694
                                         on December 16, 2014, was informed in a timely manner about said approvals and, in turn,
                                         also confirmed that said Contracts were agreed upon with the prices, terms and other
                                         conditions similar to those prevailing in the respective markets at the pertinent time
                                         and, consequently, unanimously approved the latter, by the Directors present with the
                                         sole abstention of the Directors Messieurs Wayne R. Brownlee and José María
                                         Eyzaguirre B., and declared that the latter does not constitute an Essential Fact for
                                         the Company and (iv) during its Meeting number 94 on December 16, 2014, the subscription
                                         of a “Maritime Transport Contract” between the “SQM Group” and
                                         the “Ultramar Group,” linked to Mr. Wolf von Appen B., Director of SQM S.A.
                                         The Company’s Directors’ Committee approved said subscription and the Board
                                         of Directors of SQM S.A., subsequently, in its Board of Directors Meeting number 694
                                         on December 16, 2014, was informed in a timely manner about said approval and, in turn,
                                         also confirmed that said Contract was agreed upon with the prices, terms and other conditions
                                         similar to those prevailing in the respective markets at the pertinent time and, consequently,
                                         the Directors present unanimously approved this subscription with the sole abstention
                                         of the Director Mr. Von Appen, and declared that the latter does not constitute an Essential
                                         Fact for the Company.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



95







| | (c) | Proposed to the Company’s
                                         Board of Directors the names of the External Auditors and the Independent Risk Rating
                                         Agencies for SQM and the Company’s Board of Directors, in turn, suggested their
                                         appointment to the respective Annual Ordinary Shareholders Meeting of SQM. The Company’s
                                         Board of Directors approved said suggestions and the shareholders’ meeting also
                                         ratified them.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (d) | Examined the remuneration
                                         system and the compensation plans for the Company’s employees and main executives.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------



Finally,
the Directors’ Committee issued the Annual Management Report referred to in Law 18,046.



On April 25, 2014, the Annual General Shareholders
Meeting of SQM approved an operational budget for the Directors Committee; the operational budget is equivalent to the annual
remuneration of the members of the Directors Committee.



The activities carried out by the Committee,
as well as the expenses incurred by it, are disclosed at the General Shareholders Meeting. During 2014, the Directors Committee
did not incur any consulting expenses.



Article 50 bis of the Chilean Corporations
Act states that the Committee should consist of three Directors, of which at least one member should preferably be independent
from the controller (i.e. any person or entity who “controls” the company for Chilean law purposes), if any, and that
their functions be remunerated.



Comparative Summary of Differences in
Corporate Governance Standards



The following table provides a comparative
summary of differences in corporate governance practices followed by us under our home-country rules and those applicable to U.S.
domestic issuers pursuant to Section 303A of the New York Stock Exchange (NYSE) Listed Company Manual.



Listed Companies that are foreign private
issuers, such as SQM, are permitted to follow home country practices in lieu of the provisions of Section 303A, except such companies
are required to comply with the requirements of Section 303A.06, 303A.11 and 303A.12(b) and (c).



|Section |  | NYSE Standards                                                                                                                                                                                                                                                                                      |  | SQM practices pursuant to Chilean Stock Exchangeregulations                                                                                                                                                                                                                                                                                                                                                                             
|------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|303A.01 |  | Listed companies must have a majority of independent directors.                                                                                                                                                                                                                                     |  | There is no legal obligation to have a majority of independent
    directors on the Board but, according to Chilean law, the Company’s directors cannot
    serve as executive officers.                                                                                                                                                                                                                                                
|        |  |                                                                                                                                                                                                                                                                                                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                         
|303A.02 |  | No director qualifies as “independent” unless the
    Board of Directors affirmatively determines that the director has no material relationship with the listed company (either
    directly or as a partner, shareholder or officer of an organization that has a relationship with the company). |  | A director would not be considered
        independent if, at any time, within the last 18 months he or she:
        
        (i) Maintained
        any relationship of a relevant nature and amount with the company, with other companies of the same group, with its controlling
        shareholder or with the principal officers of any of them or has been a director, manager, administrator or officer of
        any of them;



96







|Section |  | NYSE Standards                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | SQM practices pursuant to Chilean Stock Exchangeregulations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |  | In addition, a director is not independent
        if:
        (i) The director is, or has been
        within the last three years, an employee of the listed company, or an immediate family member is, or has been within
        the last three years, an executive officer, of the listed company.
        (ii) The director has received,
        or has an immediate family member who has received, during any twelve-month period within the last three years, more
        than $120,000 in direct compensation from the listed company, other than director and committee fees and pension
        or other forms of deferred compensation for prior service (provided such compensation is not contingent in any way on
        continued service).
        (iii) (A) The director is a current
        partner or employee of a firm that is the listed company’s internal or external auditor; (B) the director has an
        immediate family member who is a current partner of such a firm; (C) the director has an immediate family member who is
        a current employee of such a firm and personally works on the listed company’s audit; or (D) the director or an
        immediate family member was within the last three years a partner or employee of such a firm and personally worked on
        the listed company’s audit within that time.
        (iv) The director or an immediate
        family member is, or has been with the last three years, employed as an executive officer of another company where
        any of the listed company’s present executive officers at the same time serves or served on that company’s
        compensation committee.
        (v) The director is a current employee,
        or an immediate family member is a current executive officer, of a company that has made payments to, or received
        payments from, the listed company for property or services in an amount which, in any of the last three fiscal years,
        exceeds the greater of $1 million, or 2% of such other company’s consolidated gross revenues. |  | (ii) Maintained
        a family relationship with any of the members described in (i) above;
        
        (iii) Has been a director, manager,
        administrator or principal officer of non-profit organizations that have received contributions from (i) above;
        
        (iv) Has been a partner or a shareholder
        that has had or controlled, directly or indirectly, 10% or more of the capital stock or has been a director, manager,
        administrator or principal officer of an entity that has provided consulting or legal services for a relevant consideration
        or external audit services to the persons listed in (i) above;
        
        (v) Has been a partner or a shareholder
        that has had or controlled, directly or indirectly, 10% or more of the capital stock or has been a director, manager,
        administrator or principal officer of the principal competitor, supplier or clients.
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|303A.03 |  | The non-management directors must meet at regularly scheduled
    executive sessions without management.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | These meetings are not needed given that directors cannot serve
    as executive officers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|303A.04 |  | (a) Listed companies must have a nominating/corporate
        governance committee composed entirely of independent directors.
        (b) The nominating/corporate governance
        committee must have a written charter that addresses:
        (i) the committee’s purpose
        and responsibilities – which, at minimum, must be to: identify individuals qualified to become board members, consistent
        with criteria approved by the board, and to select, or to recommend that the board select, the director nominees for the
        next annual meeting of shareholders; develop and recommend to the board a set of corporate governance guidelines
        applicable to the corporation; and oversee the evaluation of the board and management; and
        (ii) an annual performance evaluation
        of the committee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | This committee is not required as such in the Chilean regulations.  However,
    pursuant to Chilean regulations SQM has a Directors’ Committee (see Board practices above).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|303A.05 |  | Listed companies must have a compensation committee composed
    entirely of independent directors, and must have a written charter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | This committee is not required as such in the Chilean regulations.
    Pursuant to Chilean regulations, SQM has a Directors’ Committee (see Board practices above) that is in charge of reviewing
    management’s compensation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 



97







|Section |  | NYSE Standards                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | SQM practices pursuant to Chilean Stock Exchangeregulations                                                                                                                                                                                                                                                                                                                   
|------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|303A.06 |  | Listed companies must have an audit committee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | This committee is not required as such in the Chilean regulations.  Pursuant
    to Chilean regulations, SQM has a Directors’ Committee that performs the functions of an audit committee and that complies
    with the requirements of the NYSE corporate governance rules.                                                                                                 
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                                                                                                                                                                                                                                                                                                                                                                               
|303A.07 |  | The audit committee must have a minimum of three members. All
    audit committee members must satisfy requirements of independence, and the committee must have a written charter.The
    listed companies must have an internal audit function to provide management with ongoing
    assistance of the Company’s risk management process and the system of internal controls                                                                                                                                                                                                                                                                                                                       |  | Pursuant to Section 303A.00, SQM is not required to comply with
    requirements in 303A.07. Pursuant to Chilean Regulations SQM has a Director’s Committee (see Board practices above)
    that also performs the functions of an audit committee with certain requirements of independence.                                                                                 
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                                                                                                                                                                                                                                                                                                                                                                               
|303A.08 |  | Shareholders must have the opportunity to vote on all equity-compensation
    plans and material revisions thereto.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | SQM does not have equity compensation plans.  However,
    as mentioned in Item 6.B. Compensation, the Company does have a long-term cash bonus compensation plan. Directors and executives
    may only acquire SQM shares by individual purchases.  The purchaser must give notice of such purchases to the Company
    and the Superintendence of Securities and Insurance.
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                                                                                                                                                                                                                                                                                                                                                                               
|303A.09 |  | Listed companies must adopt
    and disclose corporate governance guidelines.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | Chilean law does not require that
        corporate governance guidelines be adopted. Directors’ responsibilities and access to management and independent
        advisors are directly provided for by applicable law. Directors’ compensation is approved at the annual meeting
        of shareholders, pursuant to applicable law.                                       
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                                                                                                                                                                                                                                                                                                                                                                               
|303A.10 |  | Listed companies must adopt
    and disclose a code of business conduct and ethics for directors, officers and employeesand
    promptly disclose any waivers of the code for directors or executive officers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | Not required in the Chilean regulations.  SQM has
    adopted and disclosed a Code of Business Conduct
    and Ethics, available at the Company’s website, www.sqm.com.                                                                                                                                                                                                       
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                                                                                                                                                                                                                                                                                                                                                                               
|303A.11 |  | Listed foreign private issuers
    must disclose any significant ways in which their corporate governance practices differ from those followed by domestic companies
    under NYSE listed standards.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Pursuant to 303A.11, this table shows a comparative summary
    of differences in corporate governance practices followed by SQM under Chilean regulations and those applicable to U.S. domestic
    issuers pursuant to Section 303A.                                                                                                                                        
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                                                                                                                                                                                                                                                                                                                                                                               
|303A.12 |  | Each listed company CEO must
    (a) certify to the NYSE each year that he or she is not aware of any violation by the listed company of NYSE corporate governancelisting standards; (b) promptly notify the NYSE in writing
    after any executive officer becomes aware of any material non-compliance with any applicable provisions of Section 303A; and
    (c) must submit an executed Written Affirmation annually to the NYSE.In
    addition, each listed company must submit an interim Written Affirmation as and when required by the interim Written Affirmation
    form specified by the NYSE. The annual and interim Written Affirmations must be in the form specified by the NYSE. |  | Not required in the Chilean regulations.  The CEO
    must only comply with Section 303A.12 (b) and (c).                                                                                                                                                                                                                                                                      



98







|Section |  | NYSE Standards                                                                                                    |  | SQM practices pursuant to Chilean Stock Exchangeregulations
|------- |  | ----------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------
|303A.13 |  | The NYSE may issue a public reprimand
        letter to any listed company that violates a NYSE listing standard. |  | Not specified in the Chilean regulations.                  



| | 6.D. | Employees
| | ---- | ---------



As of December 31, 2014, we had
4,800 permanent employees, 190 of whom were employed outside of Chile. The average tenure of our permanent employees is approximately
7.4 years.



|                           |  | As
    of December 31, |      
|-------------------------- |  | ---------------------- | -----
|                           |  | 2014                   |      
|Employees in Chile         |  |                        | 4,610
|Employees outside of Chile |  |                        | 190  
|Total employees            |  |                        | 4,800



As of December 31, 2014, 68% of
our permanent employees in Chile were represented by 25 labor unions, which represent their members in collective negotiations
with us. Compensation for unionized personnel is established in accordance with the relevant collective bargaining agreements.
The terms of most such agreements currently in effect are three years, and expiration dates of such agreements vary from contract
to contract. Under these agreements, employees receive a salary according to a scale that depends upon job function, seniority
and productivity. Unionized employees also receive certain benefits provided by law and certain benefits provided under the applicable
collective bargaining agreement, which vary depending upon the terms of the collective agreement, such as scholarships and additional
health, death and disability benefits, among others.



In addition, we own all of the
equity of Institución de Salud Previsional Norte Grande Limitada (“Isapre Norte Grande”), which is a health
care organization that provides medical services primarily to our employees, and of Sociedad Prestadora de Servicios de Salud
Cruz de Norte S.A. (“Prestadora”), which is a hospital in María Elena. We make contributions to Isapre Norte
Grande and to Prestadora in accordance with Chilean laws and the provisions of our various collective bargaining agreements, but
we are not otherwise responsible for their liabilities.



Non-unionized employees receive
individually negotiated salaries, benefits provided for by law and certain additional benefits which we provide.



We provide housing and other facilities
and services for employees and their families at the María Elena site.



We do not maintain any pension
or retirement programs for our Chilean employees. Most workers in Chile are subject to a national pension law, adopted in 1980,
which establishes a system of independent pension plans that are administered by the corresponding Pension Fund Administrator
(“Sociedad Administradora de Fondos de Pensiones”). We have no liability for the performance of any of these pension
plans or any pension payments to be made to our employees. We do, however, sponsor staff severance indemnities plans for our employees
and employees of our Chilean subsidiaries whereby we commit to provide a lump sum payment to each employee at the end of his/her
employment, whether due to death, termination, resignation or retirement.



99







Over 96% of our employees are employed
in Chile, of which approximately 68% were represented by 25 labor unions as of December 31, 2014. As in previous years, during
2014, we renegotiated collective labor contracts with individual unions one year before the expiration of such contracts. As of
December 31, 2014, we had concluded negotiations with 21 labor unions, which represent 91.9% of our total unionized workers, signing
new agreements with each for the next three years. In January of 2015, we concluded negotiations with two additional unions, for
a total of 99.7% of our unionized workers. In order to finalize the current collective bargaining cycle, we need to conduct negotiations
with the remaining two unions. We are exposed to labor strikes and illegal work stoppages that could impact our production levels.
If a strike or illegal work stoppage occurs and continues for a sustained period of time, we could be faced with increased costs
and even disruption in our product flow that could have a material adverse effect on our business, financial condition and results
of operations.



| | 6.E. | Share Ownership
| | ---- | ---------------



As of April 30, 2015, SQM had a
“controlling group,” as such term is defined in Title XV of Chilean Law N°18,045. SQM has been informed that,
as of April 30, 2015, Mr. Julio Ponce Lerou and related persons control 100% of Inversiones SQYA Ltda. (“SQYA”) and
100% of Inversiones SQ Ltda. These two companies control indirectly 29.94% of all shares of SQM (consisting of 71,805,464 Series
A shares and 7,007,688 Series B shares), as follows: (i) Inversiones SQ Ltda. controls 0.0258% of Norte Grande S.A. (“Norte
Grande”) and SQYA controls 67.53% of Norte Grande, which controls 76.51% of Sociedad de Inversiones Oro Blanco S.A., which
controls 88.64% of Sociedad de Inversiones Pampa Calichera S.A. (“Pampa Calichera”), which controls 19.69% of SQM;
(ii) Pampa Calichera controls 99.99% of Inversiones Global Mining (Chile) Limitada, which controls 3.34% of SQM and (iii) Norte
Grande controls 76.34% of Nitratos de Chile S.A., which controls 98.89% of Potasios de Chile S.A., which controls 10.07% of Pampa
Calichera and 6.91% of SQM. Thus, Pampa Calichera and its related companies, Inversiones Global Mining Chile Limitada and Potasios
de Chile S.A. (collectively, “Pampa Group”), control 29.94% of SQM. In addition, the Pampa Group has also informed
SQM that, as of April 30, 2015, it owns an additional 17,748 shares of SQM, currently held under custody at EuroAmerica Corredores
de Bolsa S.A., and an additional 2,000 shares of SQM, currently held under custody at Negocios y Valores Corredores de Bolsa S.A.,
included in the 29.94%.



Kowa Company Ltd., Inversiones
La Esperanza (Chile) Limitada, Kochi S.A., and the Esperanza Delaware Corporation (collectively, “Kowa Group”) are
owners of 2.09% of all shares in SQM. On December 21, 2006, the Pampa Group and the Kowa Group entered into a Joint Operation
Agreement which, together, allows them to control 32% of all shares in SQM. Therefore, the Pampa Group, together with Kowa Group,
indirectly control 32% of all SQM shares, giving them the status of “controlling group” of the Company.



The following table shows the combined stakes
that the Controller Group held in SQM as of:



|                  |  | % Beneficial
    ownership |      
|----------------- |  | -------------------------- | -----
|April 30, 2015    |  |                            | 32.03
|December 31, 2014 |  |                            | 32.03
|December 31, 2013 |  |                            | 32.00
|December 31, 2012 |  |                            | 34.05



Separately from any ownership interest held
by the Controller Group, as of April 30, 2015, SQM has been informed that the Canadian company Potash Corporation of Saskatchewan
Inc. (“PCS”) indirectly controls 100% of the shares of Inversiones El Boldo Limitada, 100% of the shares of Inversiones
RAC Chile Limitada and 100% of the shares of Inversiones PCS Chile Limitada. Through these companies, PCS owns 32% of the total
shares of SQM.  For additional information regarding share ownership of the Company, see “Item 7. Major Shareholders
and Related Party Transactions.”



100







We do not grant stock options or
other arrangements involving the capital of SQM to directors, managers or employees. With respect to the individuals identified
in Item 6B. Compensation, for information on Mr. Ponce’s share holdings see “Item 7A. Major Shareholders.” Mr.
Montero beneficially owns less than 1% of the Company’s shares as of December 31, 2014, the most recent date such information
is available to the Company. For more information on the share holdings of current directors and executive officers, see “Item
6. Directors, Senior Management and Employees–Directors and Senior Management.”



101







ITEM 7.	MAJOR SHAREHOLDERS AND RELATED
PARTY TRANSACTIONS



| | 7.A. | Major Shareholders
| | ---- | ------------------



The following table shows certain information
concerning beneficial ownership of the Series A and Series B common shares of SQM as of April 30, 2015 with respect to each shareholder
known by us to beneficially own more than 5% of the outstanding Series A or Series B common shares. The following information
is derived from our records and reports filed by certain of the persons named below with the SVS and the Santiago Stock Exchange.



|Shareholder                                         |  | Number of series
    A shares beneficially owned |            |  | % series A
    shares |  |       | Number of
    series B shares beneficially owned |  |  | % series B
    shares |  |  | % total
    shares |      
|--------------------------------------------------- |  | ------------------------------------------------ | ---------- |  | --------------------- |  | ----- | ------------------------------------------------ |  |  | --------------------- |  |  | ------------------ | -----
|The Bank of New York                                |  |                                                  | —          |  |                       |  | —     |                                                  |  |  | 61,851,832            |  |  |                    | 51.38
|Sociedad de Inversiones Pampa Calichera S.A.(1) (2) |  |                                                  | 44,827,778 |  |                       |  | 31.39 | %                                                |  |  | 7,007,688             |  |  |                    | 5.82 
|Inversiones El Boldo Ltda.(3)                       |  |                                                  | 29,330,326 |  |                       |  | 20.54 | %                                                |  |  | 17,963,546            |  |  |                    | 14.92
|Inversiones RAC Chile Ltda.(3)                      |  |                                                  | 19,200,242 |  |                       |  | 13.44 | %                                                |  |  | 2,202,773             |  |  |                    | 1.83 
|Potasios de Chile S.A.(2)                           |  |                                                  | 18,179,147 |  |                       |  | 12.73 | %                                                |  |  | —                     |  |  |                    | —    
|Inversiones PCS Chile Limitada.(3)                  |  |                                                  | 15,526,000 |  |                       |  | 10.87 | %                                                |  |  | —                     |  |  |                    | —    
|Inversiones Global Mining Chile Ltda.(2)            |  |                                                  | 8,798,539  |  |                       |  | 6.16  | %                                                |  |  | —                     |  |  |                    | —    
|Banco de Chile por Cuenta de Terceros No Residentes |  |                                                  | —          |  |                       |  | —     |                                                  |  |  | 7,625,343             |  |  |                    | 6.33 



| | (1) | Pampa Calichera is a publicly
                                         held corporation whose shares are traded on the Santiago Stock Exchange. Originally,
                                         the shareholders of Pampa Calichera were employees of SQM. Pampa Calichera was formed
                                         to hold the capital stock of SQM contributed by such employees or later acquired in the
                                         open market.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (2) | As of April 30, 2015, SQM had
                                         a “controlling group,” as such term is defined in Title XV of Chilean Law
                                         N°18,045. SQM has been informed that, as of April 30, 2015, Mr. Julio Ponce Lerou
                                         and related persons control 100% of Inversiones SQYA Ltda. (“SQYA”) and 100%
                                         of Inversiones SQ Ltda. These two companies control indirectly 29.94% of all shares of
                                         SQM (consisting of 71,805,464 Series A shares and 7,007,688 Series B shares), as follows:
                                         (i) Inversiones SQ Ltda. controls 0.0258% of Norte Grande S.A. (“Norte Grande”)
                                         and SQYA controls 67.53% of Norte Grande, which controls 76.51% of Sociedad de Inversiones
                                         Oro Blanco S.A., which controls 88.64% of Sociedad de Inversiones Pampa Calichera S.A.
                                         (“Pampa Calichera”), which controls 19.69% of SQM; (ii) Pampa Calichera controls
                                         99.99% of Inversiones Global Mining (Chile) Limitada, which controls 3.34% of SQM and
                                         (iii) Norte Grande controls 76.34% of Nitratos de Chile S.A., which controls 98.89% of
                                         Potasios de Chile S.A., which controls 10.07% of Pampa Calichera and 6.91% of SQM. Thus,
                                         Pampa Calichera and its related companies, Inversiones Global Mining Chile Limitada and
                                         Potasios de Chile S.A. (collectively, “Pampa Group”), control 29.94% of SQM.
                                         In addition, the Pampa Group has also informed SQM that, as of April 30, 2015, it owns
                                         an additional 17,748 shares of SQM, currently held under custody at EuroAmerica Corredores
                                         de Bolsa S.A., and an additional 2,000 shares of SQM, currently held under custody at
                                         Negocios y Valores Corredores de Bolsa S.A., included in the 29.94%.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Kowa Company Ltd., Inversiones La
Esperanza (Chile) Limitada, Kochi S.A., and the Esperanza Delaware Corporation (collectively, “Kowa Group”) are owners
of 2.09% of all shares in SQM. On December 21, 2006, the Pampa Group and the Kowa Group entered into a Joint Operation Agreement
which, together, allows them to control 32% of all shares in SQM. Therefore, the Pampa Group, together with Kowa Group, indirectly
control 32% of all SQM shares, giving them the status of “controlling group” of the Company.



| | (3) | PCS owns 100% of Inversiones
                                         El Boldo Limitada, 100% of Inversiones RAC Chile Ltda., and 100% of Inversiones PCS Chile
                                         Limitada, and, accordingly, is the beneficial owner of 84,222,887, or 32.00%, of SQM’s
                                         total shares. The stake held by PCS as of December 31, 2013 and 2012 was, respectively,
                                         32.00% and 32.00% of SQM’s total shares.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



102







On December 21, 2006, Pampa Calichera and
Kowa executed a joint performance agreement that allows them to become the “controller group” of the Company, as such
term is defined under Chilean law. We have been informed that, as of April 30, 2015, Mr. Julio Ponce L. and related persons beneficially
owned, through Pampa Calichera and certain other companies, 29.94% of the shares of the Company. As of April 30, 2015, Kowa Group
owned, directly and indirectly, 2.09% of the shares of the Company. As of April 30, 2015, pursuant to the joint performance agreement,
the “controller group” led by Mr. Julio Ponce L. beneficially owned 32.03% of the total shares of the Company.



Series A and Series B common shares have the
same economic rights (i.e., both series are entitled to share equally in any dividends declared on the outstanding stock) and
voting rights at any shareholders meeting, whether ordinary or extraordinary, with the exception of the election of the Board,
in which the Series A shareholders elect seven members and the Series B shareholders elect one member. Additionally, Series B
common shares cannot exceed 50% of SQM’s issued and outstanding stock; shareholders of at least 5% of this Series may call
an Ordinary or Extraordinary Shareholders’ Meeting; and the director elected by this Series may request an extraordinary
Board meeting without the authorization of the Chairman of the Board. These conditions will remain in effect until 2043. Under
our by-laws, the maximum individual voting power personally and/or in representation of other shareholders per Series is limited
to 37.5% of the subscribed shares of each Series with voting rights and 32% of the total subscribed shares with voting rights.
To calculate these percentages, shares that belong to the voting shareholder’s related persons must be added. In addition,
the director elected by the Series B shareholders cannot vote in the election of the Chairman of the Board if a tie vote has occurred
in the prior voting process. As of May 11, 2015, there are 142,819,552 Series A common shares and 120,376,972 Series B common
shares outstanding.



| | 7.B. | Related Party Transactions
| | ---- | --------------------------



Title XVI of the Chilean Corporations Act
regulates transactions with related parties for publicly held corporations and its related parties.



Articles 146 to 149 of the Chilean Corporations
Act requires that our transactions with related parties (i) have as their purpose to contribute to SQM’s interests (ii)
be on price, terms and conditions similar to those customarily prevailing in the market at the time of their approval and (iii)
satisfy the requirements and procedures established by the Chilean Corporations Act. Violation of such articles may also result
in administrative or criminal sanctions and civil liability may be sought by SQM, shareholders or interested third parties that
suffer losses as a result of such violations.



In addition, article 89 of the Chilean Corporations
Act requires that transactions between affiliates, subsidiaries or related parties of a closed-stock company, such as some of
SQM’s main affiliates and subsidiaries, shall also be on terms similar to those customarily prevailing in the market. Directors
and executive officers of companies that violate article 89 are liable for losses resulting from such violations.

With respect to SQM, operations with related
parties include negotiations, proceedings, contracts or operations involving SQM and its controller, directors, managers and officers,
and their spouses and relatives, and other companies and persons connected to the abovementioned parties or mentioned in the by-laws
or by the Directors’ Committee. Such operations may only be carried out if (i) their objective is to contribute to SQM’s
interests and if their price, terms and conditions conform to prevailing market prices, terms and conditions at the time of their
approval and (ii) they satisfy the requirements and procedures established by the Chilean Corporations Act. Such requirements
include, among others:



| | · | that
                                         the operation be informed to the Directors’ Committee and to the Board of Directors
                                         prior to its execution;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | that
                                         the Board of Directors, excluding any Directors involved in the operation, approves the
                                         operation with an absolute majority of its members, or, if an absolute majority is not
                                         feasible, with a unanimous vote by the Directors not involved in the transaction, or,
                                         if neither of these options is available, that an Extraordinary Shareholders’ Meeting
                                         be held and that shareholders representing 2/3 of the outstanding shares with voting
                                         rights approve the operation. In the latter case, prior to the meeting, the shareholders
                                         must be provided with a report by an independent evaluator and with statements by the
                                         directors as to whether or not such operation is in SQM’s interest;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



103







| | · | that
                                         the grounds for the decision and for the exclusion be recorded in the respective minutes
                                         of the Board meeting and
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | that
                                         the agreement and the names of the directors who approved the same be reported at the
                                         next shareholders’ meeting. Infractions will not affect the validity of the operation
                                         but they will grant SQM or its shareholders the right to demand that the related party
                                         committing such infraction refund the amount equivalent to the benefits received by such
                                         party in the operation to SQM, and that such party indemnify for any corresponding damages.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



However, the Board of Directors may authorize
the following operations with related parties to be carried out without following such requirements and procedures, as long as
such authorization is obtained in advance: (a) operations wherein the amount of the transaction is not significant or (b) operations
that, according to the general policies on customary practices determined by the Board of Directors, are considered normal based
on SQM’s business activities or (c) operations carried out between legal entities wherein SQM holds at least a 95% ownership
interest in the counterpart.



We believe that we have complied with the
applicable requirements of the referred articles in all transactions with related parties. Accounts receivable from and payable
to related companies are stated in U.S. dollars and accrue no interest. Other than the above, transactions are made under terms
and conditions that are similar to those offered to unrelated third parties. We further believe that we could obtain from third
parties all raw materials now being provided by related parties that are not our affiliates. The provision of such raw materials
by new suppliers could initially entail additional expenses.



In each case, terms and conditions vary depending
on the transaction pursuant to which it was generated.



The Company regularly enters into business
arrangements with related parties, principally its joint ventures and associates, which are described in Note 9 to the Consolidated
Financial Statements.



| | 7.C. | Interests of Experts and Counsel
| | ---- | --------------------------------



Not applicable.



ITEM 8.	FINANCIAL INFORMATION



| | 8.A. | Consolidated Statements and Other Financial Information
| | ---- | -------------------------------------------------------



| | 8.A.1 | See “Item 18.
Financial Statements.”
| | ----- | ------------------------------------



| | 8.A.2 | See “Item 18.
Financial Statements.”
| | ----- | ------------------------------------



| | 8.A.3 | See “Item 18.
Financial Statements—Reports of Independent Registered Public Accounting Firm.”
| | ----- | ---------------------------------------------------------------------------------------------



| | 8.A.4 | Not applicable.
| | ----- | ---------------



| | 8.A.5 | Not applicable.
| | ----- | ---------------



| | 8.A.6 | Export Sales
| | ----- | ------------



104







We derive most of our revenues from sales
outside of Chile. The distribution of sales presented below reflects the location of the Company’s subsidiaries making such
sales and does not necessarily reflect the final destination of the products sold.



The following is the composition of the consolidated
sales for the periods ending on December 31, 2014, 2013 and 2012:



|Th. US$            |  | 2014 |           |   | 2013 |  |           | 2012 | 
|------------------ |  | ---- | --------- | - | ---- |  | --------- | ---- | 
|                   |  |      |           |   |      |  |           |      | 
|Foreign sales      |  |      | 1,786,953 |   |      |  | 1,960,767 |      | 
|Total sales        |  |      | 2,014,214 |   |      |  | 2,203,140 |      | 
|                   |  |      |           |   |      |  |           |      | 
|% of foreign sales |  |      | 88.72     | % |      |  | 89.00     | %    | 



| | 8.A.7 | Legal Proceedings
| | ----- | -----------------





Chilean Investigations



The SII has been conducting tax investigations
related to the payment of invoices by companies, including SQM, for services that may not have been properly supported. The Chilean
Public Prosecutor has been conducting related inquiries to determine whether such payments may be linked with alleged violations
of political contribution laws involving a variety of Chilean companies, including SQM, and government officials.



On February 26, 2015, SQM’s Board
of Directors resolved to establish the ad-hoc Committee authorized to conduct an internal investigation relating to the issues
referred to in the above paragraph and to retain such independent external advice as it deemed appropriate. The original members
of the ad-hoc Committee were José María Eyzaguirre B., Juan Antonio Guzmán M. and Wolf von Appen B.



The ad-hoc Committee has engaged its own
lawyers from Chile and the United States and forensic accountants from the United States to assist as it proceeds with its internal
review.



On March 12, 2015, José María
Eyzaguirre B. resigned from the ad-hoc Committee and his position was subsequently filled by Hernán Büchi B.





On March 16, 2015, the Board
of Directors decided to terminate the employment contract of the Company’s former CEO, Patricio Contesse G. This followed
his failure to cooperate with the ad-hoc Committee’s investigation.



On March 17, 2015, three members
of the Board of Directors resigned, all of whom had been nominated by Potash Corp., one of SQM’s two principal shareholder
groups. Potash Corp. issued a press release stating that the directors resigned because of their concern that they could not ensure
that the Company was conducting an appropriate investigation and collaborating effectively with the Public Prosecutor.



On March 20, 2015, the Company identified
to the SII approximately US$11 million in payments of invoices that may not have been properly supported by services rendered and
therefore may not qualify as tax expenses under the Chilean tax code. These payments originated from the office of the former CEO
during the six-year tax period from 2009 to 2014. The statute of limitations under Chilean law for tax claims is up to six years,
during which period the former CEO had an annual discretionary budget covering the Company and its subsidiaries of approximately
US$6 million.









105







On March 23,
2015, the SII, based on the Income Tax Law filed a criminal claim against the Company’s former CEO and current CEO and CFO
in their capacities as the Company’s tax representatives relating to the US$11 million in payments referred to above. This
and subsequent related claims filed by the SII are subject to review by the Public Prosecutor in order to determine whether to
pursue charges against any of the parties in their personal capacities.



On March 30, 2015, the Company submitted amendments to its tax returns for the 2009 to 2014 tax years
and has paid taxes and interest relating to such amended returns totaling approximately US$7 million. The aggregate amount was
approximately evenly distributed over the six-year period, but as the amounts were inconsequential in each individual year, the
Company recorded a provision for the aggregate amount in the “other expenses” line-item of the income statement for
the year ended December 31, 2014.



On March 31, 2015, the SVS filed an administrative
claim against five current or former members of the Board of Directors, alleging that they did not release information in a timely
manner relating to the payments that are subject to the tax claim referred to above.



On April 24, 2015, the Company announced that it had identified up to an additional US$2 million in payments
by its subsidiaries during the same six-year tax period that were authorized by the former CEO and that also may have been insufficiently
supported. On the same date, new members were elected to the Board of Directors at the Annual General Shareholders’ Meeting,
including three new members that were nominated by Potash Corp., and the ad-hoc Committee was subsequently reconstituted by Board
of Directors members Robert A. Kirkpatrick, Wolf von Appen B. and Edward J. Waitzer.





On April 30, 2015, the Public Prosecutor,
after reviewing the claims filed by the SII, informed the Company’s former CEO that it was formally investigating allegations
that he approved the payment of the invoices that were not properly supported by services rendered and in connection therewith
made intentionally false or incomplete declarations or used fraudulent procedures designed to conceal or disguise the true amount
of transactions or to circumvent taxes. If, as a result of the formal investigation, the former CEO is charged and finally adjudicated
responsible, the Company may also be subject to the payment of a fine by the Chilean Criminal Court totaling 50%
to 300% of the tax paid. The Company estimates that no provision is needed at this stage. The announcement by the Public Prosecutor
of its formal investigation does not constitute a finding of wrongdoing. Under the Chilean legal system, our former CEO has not
entered a plea and is not required to enter a plea. It is possible that the Public Prosecutor will conclude its investigation without
pursuing formal charges, but if the Public Prosecutor does pursue formal charges, our former CEO may vigorously assert defenses
to such charges without entering any plea or otherwise making any statement. Criminal defendants in Chile have a right to remain
silent at all times throughout the judicial process.







On May 11, 2015, the SII filed an additional criminal claim against the former CEO and the current CEO
and CFO in their capacities as the Company’s tax representatives alleging violations of the Chilean Inheritance and Donations
Law (Ley sobre Impuesto a Las Herencias, Asignaciones y Donaciones). The claim states that the Company paid two invoices
in 2009 and 2010 totaling approximately US$175,000 that are alleged to have been improperly supported. The claim states that these
payments should have been classified as donations, and appropriate taxes should have been paid. These payments were accounted for
in the amended tax returns filed with the SII on March 30, 2015. This claim is subject to review by the Public Prosecutor in order
to determine whether to pursue charges against any of the parties in their personal capacities.



Class action complaints have been filed in the United States against
the Company, our former CEO and current CEO and CFO, alleging violations of U.S. securities laws based on the failure to timely
disclose matters related to the subject matter of the various Chilean investigations. For more information, see “—Class
Actions.”



The investigation and the inquiries by the Chilean regulatory authorities have not been completed. We
cannot predict the outcome or the duration of these investigations. We could be subject to civil, criminal or regulatory proceedings
in Chile and we could be subject to civil, criminal or regulatory proceedings outside of Chile, including for violation of U.S.
securities or anti-corruption laws. We have been in communications with our regulators in Chile and the United States. At this
time, it is difficult to accurately assess the potential impact of these claims or the probability of success. However, the Company’s
management, based on its understanding of the investigation to date, does not believe there will be any additional material impact
to the Company’s business, financial condition, cash flows or results of operations.



106







Class Actions



We understand that three complaints have
been filed in the United States against us, our former and current CEOs and our CFO. The lawsuits allege violations of U.S. securities
laws and purport to be brought on behalf of all purchasers during specified periods when SQM securities were traded on the New
York Stock Exchange.



The complaints are based principally on
allegations that the Company failed to timely disclose matters related to the subject matter of the various Chilean investigations
and that it lacked adequate internal controls. As a result, the lawsuits allege that certain of our financial statements and/or
certain U.S. regulatory filings were inaccurate or misleading.



The lawsuits are in the initial stages
and to date no lead plaintiff has been appointed. We expect that after the appointment of a lead plaintiff, a consolidated amended
complaint will be filed to replace the current complaints. At this time, it is difficult to accurately assess the potential impact
of these claims or the probability of success, and we have not recorded any accounting provisions. The Company’s insurance
carriers have been notified.



Corfo Litigation



Our subsidiary SQM Salar holds exclusive
exploitation rights to mineral resources in 81,920 hectares in the Salar de Atacama pursuant to the Lease Agreement. The mining
exploitation concessions related to such rights are owned by Corfo and leased to SQM Salar in exchange for quarterly lease payments
to Corfo based on specified percentages associated to the value of the products resulting from the minerals extracted from such
concessions. For the year ended December 31, 2014, revenue related to products originating from the Salar de Atacama represented
39% of our consolidated revenues, which corresponded to revenues from our potassium product line and our lithium and derivatives
product line for the period. All of our products originating from the Salar de Atacama are derived from our extraction operations
under the Lease Agreement.



In May 2014, Corfo initiated an arbitration
proceeding against SQM Salar alleging (i) SQM Salar had incorrectly applied the formulas to determine lease payments resulting
in an underpayment to Corfo of at least US$8.9 million for 2009 through 2013 and (ii) SQM Salar had not complied with its obligation
to protect the mining rights of Corfo by failing to place markers to delineate property lines. Based on the alleged breaches of
the Lease Agreement, Corfo sought (i) at least US$8.9 million plus any other amount that may be due in respect of periods after
2013, (ii) early termination of the Lease Agreement, (iii) lease payments that would have been paid through 2030 as compensation
for the early termination of the Lease Agreement and (iv) punitive damages (daño moral) equal to 30% of the contractual
damages awarded. SQM Salar contested the claim, asserting that both parties have applied formulas for the calculation and payment
of lease payments for more than 20 years without conflict, in accordance with the terms of the Lease Agreement and their mutual
understanding of the agreements by the parties during the term of the Lease Agreement. SQM Salar also asserted that the alleged
breaches would be technical breaches and that Corfo may terminate the Lease Agreement solely for a material breach. SQM Salar in
consultation with external counsel believes that it is likely it will prevail in the arbitration proceeding. The parties are currently
discussing potential resolutions.



SQMNA Litigation



In October 2010, the City of Pomona, California,
named Sociedad Química y Minera de Chile S.A. and SQM North America Corporation (“SQMNA”) as defendants in an
action filed in the California Superior Court for Los Angeles County. In this matter the plaintiff seeks damages for alleged groundwater
contamination from the use of defendant’s fertilizer products. The Court has set a trial date for June 2015. SQM has been
dismissed from this action. SQMNA intends to vigorously defend this action.





107









In October 2010, the City of Lindsay, California,
named Sociedad Química y Minera de Chile S.A. and SQMNA as defendants in an action filed in the California Superior Court
for Tulare County. In this matter the plaintiff seeks damages for alleged groundwater contamination from the use of defendant’s
fertilizer products. This case is pending in the trial court. SQMNA and SQM (if it is legally served) intend to vigorously defend
this action.



Other Matters



In addition, various lawsuits, claims and
proceedings, other than those specifically disclosed above, have been or may be instituted or asserted against the Company, relating
to the conduct of the company’s business, including those pertaining to mining, civil, tort, commercial, labor and regulatory
matters, among others. Although the outcome of other litigation cannot be predicted with certainty, and some lawsuits, claims or
proceedings may be disposed of unfavorably to the Company, our management believes the disposition of such other pending matters
will not have a material effect on the company’s business, financial condition, results of operations or cash flows.





| | 8.A.8. | Dividend Policy
| | ------ | ---------------



As required by Chilean law and regulations,
our dividend policy is decided upon from time to time by our Board of Directors and is announced at the Annual Ordinary Shareholders’
Meeting, which is generally held in April of each year. Shareholder approval of the dividend policy is not required. However,
each year the Board must submit the declaration of the final dividend or dividends in respect of the preceding year, consistent
with the then-established dividend policy to the Annual Ordinary Shareholders’ Meeting for approval. As required by the
Chilean Companies Act, unless otherwise decided by unanimous vote of the holders of issued shares, we must distribute a cash dividend
in an amount equal to at least 30% of our consolidated net income for that year (determined in accordance with SVS regulations),
unless and to the extent the Company has a deficit in retained earnings.



The dividend policy for 2014 established that
SQM must distribute and pay in favor of its shareholders, as a final dividend, the amount in Chilean pesos equivalent to 50% of
the distributable income for 2014. For this purpose, distributable net income includes income for the year included in the income
statement item “Profit (Loss) Attributable to Owners of the Parent” (determined in accordance with SVS regulations).



On March 3, 2015, the Company filed its
Chilean statutory consolidated financial statements with the SVS, an English language copy of which was furnished by the Company
on Form 6-K dated April 1, 2015. These Chilean statutory consolidated financial statements were prepared in accordance with the
SVS guidelines and instructions, which are composed of IFRS as issued by the IASB and supplemental instructions from the SVS issued
in its circular 856 of October 17, 2014 that require that the effects generated from the change in the income tax rate approved
by Law 20.780 on deferred tax assets and liabilities be recognized in retained earnings instead of the income statement. The amount
charged to retained earnings as a result was US$52.3 million.





In addition, the Chilean statutory consolidated
financial statements do not include a provision of approximately US$7 million corresponding to payments made in 2015 to the SII
for expenses that may not have qualified as tax expenses under the Chilean tax code. Such payments were made after March 3, 2015,
the date on which the Company filed the Chilean statutory consolidated financial statements. For more information, see "Item
3D. Risk Factors—Risks Relating to our Business—We could be subject to numerous risks as a result of ongoing investigations
by the Chilean Internal Revenue Service and the Chilean Public Prosecutor in relation to certain payments of invoices made by SQM
between the tax years 2009 and 2014.”



These statutory consolidated financial
statements are considered by the U.S. Securities and Exchange Commission (the “Commission”) to be unaudited financial
statements for Commission purposes and were prepared prior to the termination of the employment contract of SQM’s former
CEO following his refusal to cooperate with the Company’s internal investigation. For information about the ongoing internal
investigation into certain payments of services made by SQM, see “Item 3. Risk Factors–Risks Relating to our Business.”



At the Annual Shareholders’ Meeting held on April 24, 2015, shareholders agreed to pay and distribute
a dividend equal to 50% of the distributable income for 2014 (to be determined in accordance with SVS regulations).



The cash dividends
for 2014 have been calculated and approved by shareholders based on the profit attributable to owners of parent as presented in
the Chilean statutory consolidated financial statements, of US$296.4 million.





108









The amount of the final dividend approved
by shareholders at the Annual Shareholders’ Meeting held on April 24, 2015 was US$0.56304 per share. This amount was partially
paid on December 12, 2014, through an interim dividend of US$0.41493 per share. The remaining US$0.14811 was paid on May 8, 2015.



The dividend policy for 2015 that was announced
at the Annual Shareholders’ Meeting held on April 24, 2015 established that SQM must distribute and pay in favor of its
shareholders, as a final dividend, the amount in Chilean pesos equivalent to 50% of the distributable income for 2015, including
payment of an interim dividend during the fourth quarter of the year.



At an Extraordinary Shareholders’ Meeting
held on July 7, 2014, shareholders agreed to pay and distribute an “eventual”dividend (dividendo eventual)
in the amount of US$230 million. This dividend was paid in July 2014.



We generally declare dividends in U.S. dollars
(but may declare dividends in Chilean pesos) and pay such dividends in Chilean pesos. When a dividend is declared in U.S. dollars,
the exchange rate to be used to convert the dividend into Chilean pesos is decided by the shareholders at the meeting that approves
the dividend, which has usually been the Observed Exchange Rate on the date the dividend is declared. In the case of interim dividends,
the exchange rate to be used is the Observed Exchange Rate published five business days before the payment date.



Although the Board of Directors has no current
plan to recommend a change in the dividend policy, the amount and timing for payment of dividends is subject to revision from
time to time, depending upon our then current level of sales, costs, cash flow and capital requirements, as well as market conditions.
Accordingly, there can be no assurance as to the amount or timing of declaration or payment of dividends in the future. Any change
in dividend policy would ordinarily be effective for dividends declared in the year following adoption of the change, and a notice
as to any such change of policy must be filed with Chilean regulatory authorities and would be publicly available information.



Dividends



Each Series A Share and Series B Share is
entitled to share equally in any dividends declared on the outstanding capital stock of SQM.



The following table shows the U.S. dollar equivalent of dividends
per share and per ADS paid in each of the years indicated, based on the Observed Exchange Rate for the date on which the dividend
was declared.



|Dividends                          |  | Per Share |  |     | Per ADS | 
|---------------------------------- |  | --------- |  | --- | ------- | 
|Declared for the
    business year |  | Paid in   |  | Ch$ |         | 
|                                   |  |           |  |     |         | 
|2009 (interim)                     |  | 2009      |  |     | 191.32  | 
|2009                               |  | 2010      |  |     | 126.69  | 
|2010 (interim)                     |  | 2010      |  |     | 198.90  | 
|2010                               |  | 2011      |  |     | 142.40  | 
|2011 (interim)                     |  | 2011      |  |     | 376.99  | 
|2011                               |  | 2012      |  |     | 147.66  | 
|2012(interim)                      |  | 2012      |  |     | 456.93  | 
|2012                               |  | 2013      |  |     | 134.56  | 
|2013 (interim)                     |  | 2013      |  |     | 401.60  | 
|2013                               |  | 2014      |  |     | 73.48   | 
|n/a (eventual)                     |  | 2014      |  |     | 479.51  | 
|2014 (interim)                     |  | 2014      |  |     | 253.80  | 
|2014                               |  | 2015      |  |     | 91.55   | 



109







Dividends payable to holders of ADSs will
be paid net of conversion expenses of the Depositary and will be subject to Chilean withholding tax, currently imposed at the
rate of 35% (subject to credits in certain cases).



As a general requirement, a shareholder who
is not a resident of Chile must register as a foreign investor under one of the foreign investment regimes contemplated by Chilean
law to have dividends, sale proceeds or other amounts with respect to its shares remitted outside Chile through the Formal Exchange
Market. Under the Foreign Investment Contract, the Depositary, on behalf of ADR holders, will be granted access to the Formal
Exchange Market to convert cash dividends from Chilean Pesos to U.S. dollars and to pay such U.S. dollars to ADS holders outside
Chile net of taxes, and no separate registration of ADS holders is required.



| | 8.B. | Significant Changes
| | ---- | -------------------



No significant change has occurred since the
date of the financial statements set forth in Item 18.



ITEM 9.	THE OFFER AND LISTING



| | 9.A. | Offer and Listing Details
| | ---- | -------------------------



Price History



The table below shows, for the periods indicated,
the reported high and low market prices for our shares on the Santiago Stock Exchange and the high and low market prices of the
ADSs as reported by the NYSE, as the two main exchanges on which our shares are traded. On March 27, 2008, the Company voluntarily
delisted its Series A ADSs from the New York Stock Exchange. The ratio of ordinary shares to Series B ADSs is 1:1.



| | (a) | Last 5 years
| | --- | ------------



| |      |  | Santiago Stock Exchange |  |        | NYSE     | 
| | ---- |  | ----------------------- |  | ------ | -------- | 
| |      |  | Per
    Share (1)       |  |        | Per ADS  | 
| |      |  | Series A                |  |        | Series B | 
| |      |  | High                    |  |        | Low      | 
| |      |  | Ch$                     |  |        | Ch$      | 
| | 2010 |  |                         |  | 27,000 |          | 
| | 2011 |  |                         |  | 31,400 |          | 
| | 2012 |  |                         |  | 30,100 |          | 
| | 2013 |  |                         |  | 27,350 |          | 
| | 2014 |  |                         |  | 19,071 |          | 



110







| | (b) | 2013 to 2015 by quarter
| | --- | -----------------------



|               |  | Santiago
    Stock Exchange |        |  | NYSE         | 
|-------------- |  | --------------------------- | ------ |  | ------------ | 
|               |  | Per
    Share (1)           |        |  | Per
    ADS  | 
|               |  | Series
    A                |        |  | Series
    B | 
|               |  | High                        |        |  | Low          | 
|               |  | Ch$                         |        |  | Ch$          | 
|               |  |                             |        |  |              | 
|2013           |  |                             |        |  |              | 
|First quarter  |  |                             | 27,350 |  |              | 
|Second quarter |  |                             | 25,500 |  |              | 
|Third quarter  |  |                             | 21,200 |  |              | 
|Fourth quarter |  |                             | 21,500 |  |              | 
|               |  |                             |        |  |              | 
|2014           |  |                             |        |  |              | 
|First quarter  |  |                             | 19,071 |  |              | 
|Second quarter |  |                             | 18,500 |  |              | 
|Third quarter  |  |                             | 16,700 |  |              | 
|Fourth quarter |  |                             | 16,600 |  |              | 
|               |  |                             |        |  |              | 
|2015           |  |                             |        |  |              | 
|First quarter  |  |                             | 16,300 |  |              | 



| | (c) | Last 6 months
| | --- | -------------



|              |  | Santiago Stock Exchange |        |  | NYSE     | 
|------------- |  | ----------------------- | ------ |  | -------- | 
|              |  | Per
    Share (1)       |        |  | Per ADS  | 
|              |  | Series A                |        |  | Series B | 
|              |  | High                    |        |  | Low      | 
|              |  | Ch$                     |        |  | Ch$      | 
|November 2014 |  |                         | 16,600 |  |          | 
|December 2014 |  |                         | 16,600 |  |          | 
|January 2015  |  |                         | 16,000 |  |          | 
|February 2015 |  |                         | 16,000 |  |          | 
|March 2015    |  |                         | 16,300 |  |          | 
|April 2015    |  |                         | 16,500 |  |          | 



| | (1) | Pesos per share of Common Stock reflect
                                         nominal price at trade date.
| | --- | -------------------------------------------------------------------------------------------------------------

| | (2) | Series B shares began trading on
                                         the New York Stock Exchange on September 20, 1993.
| | --- | ----------------------------------------------------------------------------------------------------------------------------





As of April 30, 2015, there were 61,851,832
Series B ADSs outstanding. As of April 30, 2015, such ADSs represented approximately 23.50% of the total number of issued and outstanding
shares of our Company.





| | 9.B | Plan Of Distribution
| | --- | --------------------



Not Applicable.



| | 9.C | Markets
| | --- | -------



The Series A shares and the Series B shares
are currently traded on the Santiago Stock Exchange, the Bolsa Electrónica de Chile Bolsa de Valores S.A., (the Electronic
Stock Exchange) and the Bolsa de Corredores Bolsa de Valores S.A., (the Valparaíso Stock Exchange). As of December 31,
2014, the Series B shares were also traded on the New York Stock Exchange in the form of ADSs at a ratio of 1:1. The ADSs representing
Series B shares have traded on the NYSE since September 20, 1993. The depositary bank for these ADSs is the Bank of New York
Mellon.



111







| | 9.D | Selling Shareholders
| | --- | --------------------



Not applicable.



| | 9.E | Dilution
| | --- | --------



Not applicable.



| | 9.F | Expenses Of
                                         The Issue
| | --- | --------------------------------------------------------------



Not applicable.



ITEM 10.	ADDITIONAL INFORMATION



| | 10.A. | Share Capital
| | ----- | -------------



Not applicable.



| | 10.B. | Memorandum and Articles of Association
| | ----- | --------------------------------------



SQM S.A., headquartered at El Trovador No.
4285, 6th Floor, Santiago, Chile, is an open stock corporation organized under the laws of the Republic of Chile. The Company
was constituted by public deed issued on June 17, 1968 by Mr. Sergio Rodríguez Garcés, Notary Public of Santiago.
Its existence was approved by Decree No. 1,164 of June 22, 1968, of the Ministry of Finance, and it was registered on June 29,
1968, in the Business Registry of Santiago, on page 4,537 No. 1,992.



Corporate purposes



Our main purposes, which appear in article
4 of our By-laws, are to: (a) perform all kinds of chemical or mining activities and businesses and, among others, those
related to researching, prospecting, extracting, producing, working, processing, purchasing, disposing of, and marketing properties,
as applicable, of all metallic and non-metallic and fossil mining substances and elements of any type or nature, to be obtained
from them or from one or more concessions or mining deposits, and in their natural or converted state, or transformed into different
raw materials or manufactured or partially manufactured products, and of all rights and properties thereon; (b) manufacture,
produce, work, purchase, transfer ownership, import, export, distribute, transport, and market in any way, all kinds of fertilizers,
components, raw materials, chemical, mining, agricultural, and industrial products, and their by-products; (c) generate,
produce, distribute, purchase, transfer ownership, and market, in any way, all kinds of electrical, thermal, geothermic or other
type of power, and hydric resources or water rights in general; (d) request, manifest, claim, constitute, explore, work,
lease, transfer ownership, and purchase, in any way, all kinds of mining concessions; (e) purchase, transfer ownership,
and administer, in any way, any kind of telecommunications, railroads, ships, ports, and any means of transport, and represent
and manage shipping companies, common carriers by water, airlines, and carries in general; (f)manufacture, produce, market,
maintain, repair, assemble, construct, disassemble, purchase and transfer ownership, and in any way, any kind of electromechanical
structure, and substructure in general, components, parts, spares, or parts of equipment, and machines, and execute, develop,
advice, and market, any kind of electromechanical or smelting activities; (g) purchase, transfer ownership, lease, and
market any kind of agro industrial and farm forestry activities, in any way (h) purchase, transfer ownership, lease, and
market, in any way, any kind of urban or rural real estate; (i) render any kind of health services and manage hospitals,
private clinics, or similar facilities; (j) construct, maintain, purchase, transfer ownership, and manage, in any way,
any kind of roads, tunnels, bridges, water supply systems, and other required infrastructure works, without any limitation, regardless
of whether they may be public or private, among others, to participate in bids and enter into any kind of contracts, and to be
the legal owner of the applicable concessions; and (k) purchase, transfer ownership, and market, in any way, any kind of
intangible properties such as stocks, bonds, debentures, financial assets, commercial papers, shares or rights in corporations,
and any kind of bearer securities or instruments, and to administer such investments, acting always within the Investment and
Financing Policies approved by the applicable General Shareholders Meeting. We may comply with the foregoing by acting ourselves
or through or with other different legal entities or natural persons, within the country or abroad, with properties of our own
or owned by third parties, and additionally, in the ways and territories, and with the aforementioned properties and purposes,
we may also construct and operate industrial or agricultural facilities or installations; constitute, administer, purchase, transfer
ownership, dissolve, liquidate, transform, modify, or form part of partnerships, institutions, foundations, corporations, or associations
of any kind or nature; perform all actions, enter into all contracts, and incur in all obligations convenient or necessary for
the foregoing; perform any business or activity related to our properties, assets, or patrimony, or with that of our affiliates,
associated companies, or related companies; and render financial, commercial, technical, legal, auditing, administrative, advisory,
and other pertinent services.



112







Directors



As stated in article 9 of the Company’s
By-laws, the Company has 8 Directors. One of the Directors must be “independent” as such term is defined in article
50 bis of Law No. 18,046. Moreover, the possession of shares is not a condition necessary to become a Director of the Company.



As stated in article 10 of the Company’s
By-laws, the term of the Directors is of three years and they can be reelected indefinitely; thus, there is no age limit for their
retirement.



The Company’s By-laws, in articles 16
and 16 bis, essentially establish that the transactions in which a Director has a material interest must comply with the provisions
set forth in articles 136 and 146 to 149 of Law No. 18,046 and the applicable regulations of such Law.



The Board
of Directors duties are remunerated, as stated in article 17 of the Company’s By-laws, and the amount of that compensation
is fixed yearly by the Ordinary Shareholders’ Meeting. Therefore, Directors can neither determine nor modify their compensation.



Directors
cannot authorize Company loans on their behalf.



The Board
of Directors must provide shareholders and the public with sufficient, reliable and timely information pertaining to the Company’s
legal, economic and financial situation, as required by the Law or the Chilean Superintendency of Securities and Insurance. The
Board of Directors must adopt the appropriate measures in order to avoid the disclosure of such information to persons other than
those persons who should possess such information as a result of their title, position or activity within the Company before such
information is disclosed to shareholders and the public. The Board of Directors must treat business dealings and other information
about the Company as confidential until such information is officially disclosed. No Director may take advantage of the knowledge
about commercial opportunities that he has obtained through his position as Director.



Independent Directors and Directors Committee



According
to Chilean Law, SQM must appoint at least one Independent Director and a Directors’ Committee, due to the fact that (a)
the Company has a market capitalization greater than or equal to UF 1,500,000 and (b) at least 12.5% of the Company’s shares
with voting rights are held by shareholders who, on an individual basis, control or possess less than 10% of such shares.



113







Persons
who have not been involved in any of the circumstances described in the Law at any time during the preceding 18 months are considered
independent. Candidates for the position of Independent Director must be proposed by shareholders representing 1% or more of the
Company’s shares, at least 10 days prior to the date of the shareholders’ meeting that has been called in order to
elect the Directors. No less than two days prior to the respective shareholders’ meeting, the candidate must provide the
Chief Executive Officer with a sworn statement indicating that he: (a) accepts his candidacy for the position of Independent Director
(b) does not meet any of the conditions that would prevent him from being the Independent Director (c) is not related to the Company,
the other companies of the group to which the Company belongs, the controller of the Company, or any of the Company’s officers
in such a way that would deprive a sensible person of a reasonable degree of autonomy, interfere with his ability to perform his
duties objectively and effectively, generate a potential conflict of interest, or interfere with his independent judgment, and
(d) assumes the commitment to remain independent as long as he holds the position of Director.



The Directors’
Committee shall have the following powers and duties: (a) to examine the reports of the external auditors, the balance sheet and
other financial statements presented by the Company’s managers or liquidators to its shareholders and issue an opinion about
the same prior to their submission for the approval of the shareholders (b) to propose to the Board of Directors the external
auditors and risk rating agencies to be proposed to the shareholders at the respective shareholders’ meeting. In the event
that an agreement cannot be reached, the Board of Directors shall formulate its own suggestion, and both options shall be submitted
for shareholder consideration at such shareholders’ meeting (c) to examine the information relating to operations referred
to in articles 146 to 149 of Law No. 18,046 and to prepare a report about such operations. A copy of such report shall be sent
to the Board of Directors, and such report must be read at the Board Meeting called for the purpose of approving or rejecting
the respective operation or operations (d) to examine the remuneration system and compensation plans for the Company’s management,
officers and employees (e) to prepare an annual report on its activities, including its main recommendations to the shareholders
(f) to inform the Board of Directors about whether or not it is advisable to hire the external audit firm to provide non-audit
services where the audit firm is not prohibited from providing such services because the nature of the same could pose a threat
to the audit firm’s independence, and (g) any other issues indicated in the Company’s by-laws or authorized by a shareholders’
meeting or the Board of Directors.



The Directors’
Committee shall be comprised of three members, with at least one independent member. In the event that more than three Directors
have the right to form part of the Committee, these same Directors shall unanimously determine who shall make up the Committee.
In the event that an agreement cannot be reached, the Directors who were elected with a greater percentage of votes by shareholders
controlling or possessing less than 10% of the Company’s shares shall be given priority. If there is only one Independent
Director, this Director shall name the other members of the Committee among the other Directors who are not independent. Such
other members of the Committee shall have all of the rights associated with such position. The members of the Committee shall
be compensated for their role. The amount of their remuneration shall be set annually at the General Shareholders’ Meeting,
and it may not be less than the remuneration set for the Company Directors, plus an additional 1/3 of that amount. The General
Shareholders’ Meeting shall determine a budget for the expenses of the Committee and its advisors. Such budget may not be
less than the sum of the annual remunerations of the Committee members. The Committee may need to hire professional advisory services
in order to carry out its duties in accordance with the abovementioned budget. The proposals made by the Committee to the Board
of Directors that are not accepted by the latter must be reported to the shareholders’ meeting prior to the vote by shareholders
on the corresponding matter or matters. In addition to the responsibilities that are associated with the position of Director,
the members of the Committee are jointly and severally liable for any damages they cause in performing their duties as such to
the shareholders and to the Company.



114







Shares



Dividends
are annually distributed to the Series A and Series B shareholders of record on the fifth business day prior to the date for payment
of the dividends. The By-laws do not specify a time limit after which dividend entitlement elapses but Chilean regulations establish
that after 5 years, unclaimed dividends are to be donated to the Fire Department.



Article
5 of the Company’s By-laws establishes that Series B shares may in no case exceed fifty percent of the issued, outstanding
and paid shares of SQM Series B. SQM Series B shares have a restricted right to vote as they can only elect one Director of the
Company, regardless of their capital stock’s share. Series B shares have the right to call for an Ordinary or Extraordinary
Shareholders’ Meeting when the shareholders of at least 5% of the Series B issued shares request so and for an Extraordinary
Board of Directors Meeting without the Chairman’s authorization when it is requested by the Director elected by the shareholders
of the Series B shares. Series A shares have the option to exclude the Director elected by Series B shareholders from the voting
process in which the Chairman of the Board is to be elected, if there is a tie in the first voting process. However, articles
31 and 31 bis of the Company’s By-laws establish that in General Shareholders’ Meetings each shareholder will have
a right to one vote for each share he owns or represents and (a) that no shareholder will have the right to vote for himself or
on behalf of other shareholders of the same Series A or Series B shares representing more than 37.5% of the total outstanding
shares with right to vote of each Series and (b) that no shareholder will have the right to vote for himself or on behalf of other
shareholders representing more than 32% of the total outstanding shares with a right to vote. In calculating a single shareholder’s
ownership of Series A or B shares, the shareholder’s stock and those pertaining to third parties related to them are to
be added.



Article
5 bis of the Company’s By-laws establishes that no person may directly or by means of related third persons concentrate
more than 32% of the Company’s total shares with right to vote.



Each Series
A share and Series B share is entitled to share equally in the Company’s profits, i.e., they have the same rights on any
dividends declared on the outstanding shares of SQM.



The Company
By-laws do not contain any provision relating to (a) redemption provisions (b) sinking funds or (c) liability to capital calls
by the Company.



As established
in article 103 of Law No. 18,046, a company subject to the supervision of the Superintendency of Securities and Insurance (SVS)
may be liquidated in the following cases:



(a) Expiration
of the duration term, if any, as established in its By-laws;

(b) All
the shares end up in the possession of one individual for more than ten continuous days;

(c) By agreement
of an Extraordinary Shareholders Meeting;

(d) By abolition,
pursuant to applicable laws, of the decree that authorized its existence;

(e) Any
other reason contemplated in its By-laws.



Article
40 of the Company’s By-laws states that in the event of liquidation, the shareholders’ meeting will appoint a three-member
receiver committee that will have the authority to carry out the liquidation process. Any surplus will be distributed equally
among the shareholders.



The only
way to change the rights of the holders of the SQM shares is by modifying its By-laws, which can only be carried out by an Extraordinary
Shareholders’ Meeting, as established in article 28 of the Company By-laws.



115







Shareholders’ Meetings



Article 29 of the Company’s By-laws
states that the call to a shareholders’ meeting, either Ordinary or Extraordinary, will be by means of a highlighted public
notice that will be published at least three times, and on different days, in the newspaper of the legal address determined by
the shareholders’ meeting, and in the way and under the conditions indicated by the regulations. Additionally, a notice
will be sent by mail to each shareholder at least fifteen days prior to the date of the Meeting, which shall include a reference
of the matters to be addressed at the meeting. However, those meetings with the full attendance of the shares with right to vote
may be legally held, even if the foregoing formal notice requirements are not met. Notice of any shareholders’ meeting shall
be delivered to the SVS at least fifteen days in advance of such meeting.



Any holder of Series A and/or Series B shares
registered in the Company’s shareholder registry on the fifth business day prior to the date of the meeting will have a
right to participate at that meeting



Article 67 of Law No. 18,046 provides that
decisions made at Extraordinary Shareholders’ Meeting on the following matters require the approval of 2/3 of the outstanding
shares with voting rights: (1) transformation or division of the Company and its merger with another company; (2) modification
of the Company’s term of duration, if any; (3) early dissolution of the Company; (4) change of the corporate domicile; (5)
capital decrease; (6) approval of contributions and estimation of non-cash assets; (7) modification of powers reserved for Shareholders
Meetings or limitations on powers of the Board of Directors; (8) reduction in the number of members of the Board of Directors;
(9) disposal of 50% or more of the Company’s assets; formulation or modification of any business plan exceeding the above
percentage; disposal of 50% or more of an asset belonging to a subsidiary that represents at least 20% of the Company’s
assets and disposal of shares of the referred subsidiary such that the parent company would lose its position as controller of
the same; (10) method in which profits are distributed; (11) granting of real or personal guarantees as sureties for third-party
obligations that exceed 50% of the Company assets, except for subsidiaries, in which case approval of the Board of Directors shall
suffice; (12) acquisition of own shares as set forth in articles 27A and 27B of the said law; (13) other matters indicated in
the By-laws; (14) amendment of the Company By-laws as a result of errors in the constitution process and amendments in the By-laws
involving one or more of the matters stated in the preceding numbers; (15) forced sale of shares carried out by the controller
who would acquire more than 95% of the Company’s shares in a tender offer, and (16) approval or ratification of proceedings
or contracts with related parties in accordance with the provisions of articles 44 and 147 of Law No. 18,046.



Amendments
to the By-laws that are intended to create, modify, defer or suspend preferential rights shall be approved by 2/3 of the shares
of the affected Series.



The transformation
of the Company, the merger of the same, the disposal of assets referred to in number (9) above, the constitution of guarantees
set forth in number (11) above, the constitution of preferences or the increase, postponement or decrease of the existing preferences,
the reparation of formal nullities incurred in the By-laws and the possession of more than 95% of the Company’s shares and
other matters contemplated in the Law or in the By-laws, confer “withdrawal rights.”



Foreign Shareholders



There exists
no restriction on ownership or share concentration, or limiting the exercise of the related right to vote, by local or foreign
shareholders other than those discussed under Item 10.B. Memorandum and Articles of Association.



Change in Control



The Company By-laws provide that no shareholder
may hold more than 32% of the Company’s shares, unless the By-laws are modified at an Extraordinary Shareholders’
Meeting. Moreover, on December 12, 2000, the Chilean Government published the Ley de Oferta Pública de Acciones (“Public
Share Offering Law”) or (OPA law) that seeks to protect the interests of minority shareholders of open stock corporations
in transactions involving a change in control, by requiring that the potential new controller purchase the shares owned by the
remaining shareholders either in total or pro rata. The law applies to those transactions in which the controlling party would
receive a material premium price compared with the price that would be received by the minority shareholders.



116







There are three conditions that would make
it mandatory to operate under the OPA law:



| | 1) | When an investor wants to take
                                         control of a company’s stock.
| | -- | -----------------------------------------------------------------------------------------------------

| | 2) | When a controlling shareholder
                                         holds two-thirds of the company’s stock. If such shareholder buys one more share,
                                         it will be mandatory to offer to acquire the rest of the outstanding stock within 30
                                         days of surpassing that threshold.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3) | When an investor wants to take
                                         control of a corporation, which, in turn, controls an open stock corporation that represents
                                         75% or more of the consolidated assets of the former corporation.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Parties interested in taking control of a
company must (i) notify the company of such intention in writing, and notify its controllers, the companies controlled by it,
the SVS and the markets where its stocks are traded and (ii) publish a highlighted public notice in two newspapers of national
circulation at least 10 business days prior to the date of materialization of the OPA.



Disclosure of Share Ownership



The Company’s By-laws do not provide
for a minimum threshold at which share ownership must be disclosed.



| | 10.C. | Material Contracts
| | ----- | ------------------

The following summarizes the terms and conditions
of the main contracts to which SQM or any subsidiary is a party:



| | · | On
                                         February 12, 1999, SQM S.A. entered into an Electrical Energy Supply contract with Electroandina
                                         S.A. This contract allowed for two three-year renewal options, at the option of SQM.
                                         The two options were exercised. As a result, the contract extends through March 16, 2016.
                                         Early termination of the contract is subject to payment of non-amortized investments.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | On
                                         March 21, 1997, SQM Salar S.A. entered into an Electricity Supply agreement with Norgener
                                         S.A. The term of this contract extends through March 20, 2017, and early termination
                                         is subject to penalties.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | On
                                         March 30, 2012, SQM S.A. entered into an Electrical Energy Supply agreement with Norgener
                                         S.A.  The term of this contract extends through December 31, 2030.  Early termination
                                         of the contract is subject to an agreement between both parties, or in case of Force-Majeure
                                         extended for more than 12 months.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



In addition, the Company, during the normal
course of business, has entered into different contracts, some of which have been described herein, related to its production,
commercial and legal operations. We believe all of these contracts are standard for this type of industry, and none of them is
expected to have a material effect on the Company’s results of operations.



| | 10.D. | Exchange Controls
| | ----- | -----------------

The Central Bank of Chile is responsible for,
among other things, monetary policies and exchange controls in Chile. Appropriate registration of a foreign investment in Chile
permits the investor access to the Formal Exchange Market. Foreign investments can be registered with the Foreign Investment Committee
under Decree Law No. 600 of 1974 or can be registered with the Central Bank of Chile under the Central Bank Act, Law No 18,840
of October 1989. The Central Bank Act is an organic constitutional law requiring a “special majority” vote of the
Chilean Congress to be modified. Effective January 1, 2016, Decree Law No. 600 was repealed by Article 9 of the 2014 Tax Reform.
Therefore, foreign investments made on or after January 1, 2016 cannot be registered with the Foreign Investment Committee. According
to the Tax Reform, a new law, replacing Decree Law No. 600, must be enacted prior to December 31, 2015. If such new law has not
been enacted by December 31, 2015, the repeal of Decree Law No. 600 will be postponed until such new law has been enacted.



117







Our 1993, 1995 and 1998 capital increases
were carried out under and subject to the then current legal regulations, whose summary is hereafter included:



A ‘Convención Capítulo
XXVI del Título I del Compendio de Normas de Cambios Internacionales’ or Compendium of Foreign Exchange Regulations
of the Central Bank of Chile, “Foreign Investment Contract” was entered into and among the Central Bank of Chile,
our Company and the Depositary, pursuant to Article 47 of the Central Bank Act and to Chapter XXVI of the Compendium of Foreign
Exchange Regulations of the Central Bank of Chile, “Chapter XXVI,” which addresses the issuance of ADSs by a Chilean
company. Absent the Foreign Investment Contract, under applicable Chilean exchange controls, investors would not be granted access
to the Formal Exchange Market for the purposes of converting from Chilean pesos to U.S. dollars and repatriating from Chile amounts
received in respect to deposited Series B shares, or Series B shares withdrawn from deposit on surrender of ADSs (including amounts
received as cash dividends and proceeds from the sale in Chile of the underlying Series B shares and any rights arising therefrom).
The following is a summary of the material provisions contained in the Foreign Investment Contract. This summary does not purport
to be complete and is qualified in its entirety by reference to Chapter XXVI and the Foreign Investment Contract.



Under Chapter XXVI and the Foreign Investment
Contract, the Central Bank of Chile has agreed to grant to the Depositary, on behalf of ADS holders, and to any investor not residing
or not domiciled in Chile who withdraws Series B shares upon delivery of ADSs (such Series B shares being referred to herein as
“Withdrawn Shares”) access to the Formal Exchange Market to convert Chilean pesos to U.S. dollars (and remit such
U.S. dollars outside of Chile) in respect of the Withdrawn Shares, including amounts received as (a) cash dividends, (b) proceeds
from the sale in Chile of Withdrawn Shares, or from shares distributed because of the liquidation, merger or consolidation of
the Company, subject to receipt by the Central Bank of Chile of a certificate from the holder of such shares (or from an institution
authorized by the Central Bank of Chile) that such holder’s residence and domicile are outside Chile and a certificate from
a Chilean stock exchange (or from a brokerage or securities firm established in Chile) that such shares were sold on a Chilean
Exchange, (c) proceeds from the sale in Chile of preemptive rights to subscribe for additional Series A and Series B shares, (d)
proceeds from the liquidation, merger or consolidation of the Company and (e) other distributions, including without limitation
those resulting from any recapitalization, as a result of holding Withdrawn Shares. Transferees of Withdrawn Shares will not be
entitled to any of the foregoing rights under Chapter XXVI unless the Withdrawn Shares are redeposited with the Depositary. Investors
receiving Withdrawn Shares in exchange for ADSs will have the right to redeposit such shares in exchange for ADSs, provided that
the conditions to redeposit described hereunder are satisfied.



Chapter XXVI provided that access to the Formal
Exchange Market in connection with dividend payments will be conditioned upon certification by the Company to the Central Bank
of Chile that a dividend payment has been made and any applicable tax has been withheld. Chapter XXVI also provided that access
to the Formal Exchange Market in connection with the sale of Withdrawn Shares or distributions thereon will be conditioned upon
receipt by the Central Bank of Chile of certification by the Depositary that such shares have been withdrawn in exchange for ADSs
and receipt of a waiver of the benefit of the Foreign Investment Contract with respect thereto until such Withdrawn Shares are
redeposited.



118







Chapter XXVI and the Foreign Investment Contract
provide that a person who brings certain types of foreign currency into Chile, including U.S. dollars, to purchase Series B shares
with the benefit of the Foreign Investment Contract must convert it into Chilean pesos on the same date and has 5 banking business
days within which to invest in Series B shares in order to receive the benefits of the Foreign Investment Contract. If such person
decides within such period not to acquire Series B shares, he can access the Formal Exchange Market to reacquire foreign currency,
provided that the applicable request is presented to the Central Bank within 7 banking business days of the initial conversion
into Chilean pesos. Series B shares acquired as described above may be deposited for ADSs and receive the benefits of the Foreign
Investment Contract, subject to receipt by the Central Bank of Chile of a certificate from the Depositary that such deposit has
been effected and that the related ADSs have been issued and receipt by the Custodian of a declaration from the person making
such deposit waiving the benefits of the Foreign Investment Contract with respect to the deposited Series B shares.



Access to the Formal Exchange Market under
any of the circumstances described above is not automatic. Pursuant to Chapter XXVI, such access requires approval of the Central
Bank of Chile based on a request presented through a banking institution established in Chile. The Foreign Investment Contract
will provide that if the Central Bank of Chile has not acted on such request within seven banking days, the request will be deemed
approved.



Under current Chilean law, foreign investments
abiding by the Foreign Investment Contract cannot be changed unilaterally by the Central Bank of Chile. No assurance can be given,
however, that additional Chilean restrictions applicable to the holders of ADSs, the disposition of underlying Series B shares
or the repatriation of the proceeds from such disposition could not be imposed in the future, nor can there be any assessment
of the duration or impact of such restrictions if imposed.



As of April 19, 2001, Chapter XXVI of Title
I of the Compendio de Normas de Cambios Internacionales of the Central Bank of Chile was eliminated and new investments
in ADSs by non-residents of Chile, are now governed by Chapter XIV of the Compendio de Normas de Cambios Internacionales
of the Central Bank of Chile. This was made with the purpose of simplifying and facilitating the flow of capital to and from Chile.
According to the new regulations, such investments must be carried out through Chile’s Formal Exchange Market and only reported
to the Central Bank of Chile. Foreign investments may still be registered with the Foreign Investment Committee under Decree Law
600 of 1974, as amended, and obtain the benefits of the contract executed under Decree Law 600. Effective January 1, 2016, Decree
Law No. 600 was repealed by Article 9 of the 2014 Tax Reform. Therefore, foreign investments made on or after January 1, 2016
cannot be registered with the Foreign Investment Committee. According to the Tax Reform, a new law, replacing Decree Law No. 600,
must be enacted prior to December 31, 2015. If such new law has not been enacted by December 31, 2015, the repeal of Decree Law
No. 600 will be postponed until such new law has been enacted.



The Central Bank is also responsible for controlling
incurrence of loan obligations to be paid from Chile and by a Chilean borrower to banks and certain other financial institutions
outside Chile. Chapter XIV establishes what type of loans, investments, capital increases and foreign currency transactions are
subject to the current Chapter XIV framework. Foreign currency transactions related to foreign loans must be performed through
the Formal Exchange Market, and such transactions and the subsequent modifications of original loans must be properly informed
to the Central Bank. Transactions prior to April 19, 2001, will continue to be regulated by the previous legal framework, except
in cases where an express request has been presented to the Central Bank resigning previous rights to be regulated by the provisions
of Chapter XIV. This summary does not purport to be complete and is qualified in its entirety by reference to the provisions of
Chapter XIV.



As of December 31, 2014, we had bonds issued
in the international markets under Rule 144A/Regulation S of US$200 million, US$250 million and US$300 million. Additionally,
we had outstanding bilateral loans through wholly owned subsidiaries in the amount of US$240 million, which were fully guaranteed
by us.



119







Any purchases of U.S. dollars in connection
with payments on these loans will occur with the Formal Exchange Market. There can be no assurance, however, that restrictions
applicable to payments in respect to the loans could not be imposed in the future, nor can there be any assessment of the duration
or impact of such restrictions if imposed.



| | 10.E. | Taxation
| | ----- | --------



Chilean Tax Considerations



The following describes the material Chilean
income tax consequences of an investment in SQM ADSs by an individual who is not domiciled or resident in Chile or any legal entity
that is not organized under the laws of Chile and does not have a permanent establishment located in Chile, a (“foreign
holder”). This discussion is based upon Chilean income tax laws presently in force, including Ruling No. 324 (1990) of the
Chilean Internal Revenue Service and other applicable regulations and rulings. The discussion is not intended as tax advice to
any particular investor, which can be rendered only in light of that investor’s particular tax situation.



Under Chilean law, provisions contained in
statutes such as tax rates applicable to foreign holders, the computation of taxable income for Chilean purposes and the manner
in which Chilean taxes are imposed and collected may only be amended by another statute. In addition, the Chilean tax authorities
issue rulings and regulations of either general or specific application and interpret the provisions of Chilean tax law. Chilean
tax may not be assessed retroactively against taxpayers who act in good faith relying on such rulings, regulations and interpretations,
but Chilean tax authorities may change said rulings, regulations and interpretations prospectively.



Cash Dividends and Other Distributions



System in Effect Through 2016



The following taxation of cash dividends and
property distributions applies through 2016.



Cash dividends paid by the Company with respect
to the shares, including shares represented by ADSs held by a U.S. holder will be subject to a 35% Chilean withholding tax, which
is withheld and paid by the Company, the “Withholding Tax.” If the Company has paid corporate income tax, the “First
Category Tax,” on the income from which the dividend is paid, a credit for the First Category Tax effectively reduces the
rate of Withholding Tax. When a credit is available, the Withholding Tax is computed by applying the 35% rate to the pre-tax amount
needed to fund the dividend and then subtracting from the tentative withholding tax so determined the amount of First Category
Tax actually paid on the pre-tax income. Under Chilean income tax law, dividends are assumed to have been paid out of our oldest
retained tax profits for purposes of determining the rate at which the First Category Tax was paid.



The effective Withholding Tax rate, after
giving effect to the credit for First Category Tax, generally is:



(Withholding Tax rate) - (First Category
Tax effective rate)
1 - (First Category Tax effective rate)







120







The effective rate of Withholding Tax to be
imposed on dividends paid by the Company will vary depending upon the amount of the First Category Tax paid by the Company on
the earnings to which the dividends are attributed. The withholding tax rates of the three dividends distributed by the Company
during 2014 are as follows:



|May 2014      |  |  | 21.68677 | %
|------------- |  |  | -------- | -
|July 2014     |  |  | 19.20579 | %
|December 2014 |  |  | 19.19106 | %



Dividend distributions made in property (such
as distribution of cash equivalents) would be subject to the same Chilean tax rules as cash dividends. Stock dividends are not
subject to Chilean taxation.



New System in Effect Starting in 2017



On September 29, 2014, the Tax Reform was
published, introducing significant changes to the Chilean taxation system and strengthening the powers of the SII to control and
prevent tax avoidance. The Tax Reform contemplates, among other matters, changes to the corporate tax regime to create two tax
regimes. Starting on January 1, 2017, Chilean companies will be able to opt between two tax regimes: (i) the partially integrated
shareholder tax regime (sistema parcialmente integrado) or (ii) the attributed income shareholder taxation regime (sistema
de renta atribuida). In both regimes, the corporate tax rate will be increased to 21% in 2014, 22.5% in 2015 and 24% by 2016.
On or after January 1, 2017, and depending on the tax regime chosen by the company, tax rates may be increased to a maximum rate
of 25% in 2017 for the attributed income shareholder taxation regime or to a rate of 25.5% in 2017 and subsequently to a maximum
rate of 27% in 2018 for the partially integrated shareholder tax regime.



As an open stock corporation, the default
regime that applies to us is the partially integrated regime, unless at a future shareholders’ meeting our shareholders
agree to opt for the attributed income shareholder taxation regime. Under the partially integrated shareholder taxation regime,
shareholders bear the tax on dividends, when paid, but will be permitted to credit against such shareholder taxes only a portion
of the Chilean corporate tax paid by us on our earnings, unless the shareholder is resident in a country with a tax treaty with
Chile, in which case 100% of the Chilean corporate tax paid by us may be credited against such shareholder taxes. As a result,
foreign shareholders resident in a non-treaty jurisdiction (such as the United States) will be subject to a higher effective tax
rate than residents of treaty jurisdictions. Under the attributed income shareholder taxation regime, shareholders bear the Chilean
tax on our accrued earnings (whether or not dividends have been distributed), but may credit the full amount of the Chilean corporate
tax we pay on such earnings against such shareholder taxes.



Capital Gains



Gains from the sale or other disposition by
a foreign holder of ADSs outside Chile will not be subject to Chilean taxation. The deposit and withdrawal of the shares in exchange
for ADRs will not be subject to any Chilean taxes.



The tax basis of the shares received in exchange
for ADSs (repatriation) will be the acquisition value of the shares. The Series B shares exchanged for ADSs are valued at the
highest price at which they trade on the Chilean Stock Exchange on the date of the exchange or on either of the two business days
preceding the exchange. Consequently, the conversion of ADSs into the shares and the immediate sale of such shares at a price
equal to or less than the highest price for Series B shares on the Chilean Stock Exchange on such dates will not generate a gain
subject to Chilean taxation.



121







Gain recognized on a sale or exchange of shares
(as distinguished from sales or exchanges of ADSs representing such shares) will be subject to both the First Category Tax and
the Withholding Tax if either (i) the foreign holder has held the shares for less than one year since exchanging the ADSs for
the shares, (ii) the foreign holder acquired and disposed of the shares in the ordinary course of its business or as a regular
trader of shares, or (iii) the foreign holder and the purchaser of the shares are related parties within the meaning of Chilean
tax law. The amount of the First Category Tax may be credited against the amount of the Withholding Tax. In all other cases, gain
on the disposition of the shares will be subject only to a capital gains tax, which is assessed at the same rate as the First
Category Tax. Gain recognized in the transfer of common shares that have significant trading volumes in the stock exchange, however,
is not subject to capital gains tax in Chile, provided that the common shares are transferred in a local stock exchange authorized
by the SVS, within the process of a public tender of common shares governed by the Chilean Securities Market Act. Law No. 20,448
states that common shares must also have been acquired after April 19, 2001, either on a local stock exchange authorized by the
SVS, within the referred process of public tender of a common shares governed by the Chilean Securities Market Act, in an initial
public offering of common shares resulting from the formation of a corporation or a capital increase of the same, in an exchange
of convertible securities subject to public offer, or in the redemption of mutual funds shares. According to Ruling No. 224 (2008)
of the Chilean Internal Revenue Service, common shares received by exchange of ADRs are also considered as “acquired on
a stock exchange” if the respective ADRs have been acquired on a foreign stock exchange authorized by the SVS (i.e. London
Stock Exchange, New York Stock Exchange and Bolsa de Valores de Madrid). Common shares are considered to have a high presence
in the stock exchange when they: (a) are registered in the Securities Registry, (b) are registered in a Chilean Stock Exchange,
(c) have an adjusted presence equal to or above 25%.



As of June 19, 2001, capital gains obtained
in the sale of common shares that are publicly traded in a stock exchange are also exempt from capital gains tax in Chile when
the sale is made by “foreign institutional investors” such as mutual funds and pension funds, provided that the sale
is made in a local stock exchange authorized by the SVS, or in accordance with the provisions of the securities market law (Law
18,045). To qualify as foreign institutional investors, the referred entities must be formed outside of Chile, not have a domicile
in Chile, and they must be an “investment fund” in according with the Chilean tax law.



The exercise of preemptive rights relating
to shares will not be subject to Chilean taxation. Any gain on the sale or assignment of preemptive rights relating to shares
will be subject to both the First Category Tax and the Withholding Tax (the former being creditable against the latter).



Other Chilean Taxes



No Chilean inheritance, gift or succession
taxes apply to the transfer or disposition of the ADSs by a foreign holder, but such taxes generally will apply to the transfer
at death or by gift of the shares by a foreign holder. No Chilean stamp, issue, registration or similar taxes or duties apply
to foreign holders of ADSs or shares.



Withholding Tax Certificates



Upon request, the Company will provide to
foreign holders appropriate documentation evidencing the payment of Chilean withholding taxes.



United States Tax Considerations



The following discussion summarizes the principal
U.S. federal income tax consequences to beneficial owners arising from ownership and disposition of the Series A shares and the
Series B shares, together the “shares” and the ADSs. The discussion which follows is based on the United States Internal
Revenue Code of 1986, as amended, the “Code,” the Treasury regulations promulgated thereunder, and judicial and administrative
interpretations thereof, all as in effect and available on the date hereof, and is subject to any changes in these or other laws
occurring after such date. In addition, the summary assumes that the depositary’s activities are clearly and appropriately
defined so as to ensure that the tax treatment of ADSs will be identical to the tax treatment of the underlying shares.



122







For purposes of this summary, the term “U.S.
Holder” means a beneficial owner of shares or ADSs that is, for U.S. federal income tax purposes, (a) an individual who
is a United States citizen or resident, (b) a corporation or partnership created or organized under the laws of the United States
or any political subdivision thereof, (c) an estate, the income of which is subject to U.S. federal income tax regardless of the
source, or (d) a trust (i) that validly elects to be treated as a U.S. person for U.S. federal income tax purposes or (ii)(A)
if a court within the U.S. is able to exercise primary supervision over the administration of the trust and (B) one or more U.S.
persons have the authority to control all substantial decisions of the trust.



The term “Non-U.S. Holder” means,
for purposes of this discussion, a beneficial owner of shares or ADSs that is not a U.S. Holder.



If a partnership (or any other entity treated
as a partnership for U.S. federal income tax purposes) holds shares or ADSs, the tax treatment of the partnership and a partner
in such partnership generally will depend on the status of the partner and the activities of the partnership. Such a partner or
partnership should consult its own tax advisor as to its consequences.



The discussion that follows is not intended
as tax advice to any particular investor and is limited to investors who will hold the shares or ADSs as “capital assets”
within the meaning of Section 1221 of the Code and whose functional currency is the United States dollar. The summary does not
address the tax treatment of U.S. Holders and Non-U.S. Holders that may be subject to special U.S. federal income tax rules, such
as insurance companies, tax-exempt organizations, financial institutions, persons who are subject to the alternative minimum tax,
or persons who are broker-dealers in securities, who hold the shares or ADSs as a hedge against currency risks, as a position
in a “straddle” for tax purposes, or as part of a conversion or other integrated transaction, or who own (directly,
indirectly or by attribution) 10% or more of the total combined voting power of all classes of the Company’s capital stock
entitled to vote or 10% or more of the value of the outstanding capital stock of the Company.



As of this date, there is currently no applicable
income tax treaty in effect between the United States and Chile. However, in 2010, the United States and Chile signed an income
tax treaty that will enter into force once the treaty is ratified by both countries. There can be no assurance that the treaty
will be ratified by either country. The following summary assumes that there is no applicable income tax treaty in effect between
the United States and Chile.



The discussion below does not address the
effect of any United States state, local, estate or gift tax law or foreign tax law on a U.S. Holder or Non-U.S. Holder of the
shares or ADSs. U.S. HOLDERS AND NON-U.S. HOLDERS OF SHARES OR ADSs SHOULD CONSULT THEIR OWN TAX ADVISORS TO DETERMINE THE PARTICULAR
CONSEQUENCES UNDER ANY SUCH LAW OF OWNING OR DISPOSING THE SHARES OR ADSs.



For purposes of applying U.S. federal income
tax law, any beneficial owner of an ADS generally will be treated as the owner of the underlying shares represented thereby.



TO ENSURE COMPLIANCE WITH U.S. TREASURY DEPARTMENT
CIRCULAR 230, INVESTORS ARE ADVISED THAT: (A) ANY DISCUSSION OF U.S. FEDERAL TAX ISSUES IN THIS FORM 20-F IS NOT INTENDED OR WRITTEN
TO BE RELIED UPON, AND CANNOT BE RELIED UPON, BY INVESTORS FOR THE PURPOSE OF AVOIDING PENALTIES THAT MAY BE IMPOSED ON SUCH INVESTORS
UNDER THE U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED; (B) SUCH DISCUSSION IS INCLUDED BY THE COMPANY IN CONNECTION WITH THE
PROMOTION OR MARKETING (WITHIN THE MEANING OF CIRCULAR 230) BY THE COMPANY OF THE TRANSACTIONS OR MATTERS ADDRESSED HEREIN; AND
(C) INVESTORS SHOULD SEEK ADVICE BASED ON THEIR PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.



Cash Dividends and Other Distributions



The U.S. Treasury Department has expressed
concern that depositaries for ADSs, or other intermediaries between the holders of shares of an issuer and the issuer, may be
taking actions that are inconsistent with the claiming of U.S. foreign tax credits by U.S. holders of such receipts or shares.
Accordingly, the analysis regarding the availability of a U.S. foreign tax credit for Chilean taxes and sourcing rules described
below could be affected by future actions that may be taken by the U.S. Treasury Department.



123







The following discussion is based on the current
regime for taxation of cash dividends and distributions applicable in Chile until 2016. For 2017 and later, the U.S. federal income
tax treatment will depend on which of the two shareholder taxation regimes we elect to adopt. See “Item 10. Taxation–Chilean
Tax Considerations–Cash Dividends and Other Distributions—New System in Effect Starting 2017” above.



The following discussion of cash dividends
and other distributions is subject to the discussion below under “Passive Foreign Investment Company Considerations.”
The gross amount of a distribution with respect to shares or ADSs generally will be treated as a taxable dividend to the extent
of the Company’s current and accumulated earnings and profits, computed in accordance with U.S. federal income tax principles.
A dividend distribution will be so included in gross income when received by (or otherwise made available to) (i) the U.S. Holder
in the case of the shares or (ii) the depositary in the case of the ADSs, and in either case will be characterized as ordinary
income for U.S. federal income tax purposes. Distributions in excess of the Company’s current and accumulated earnings and
profits will be applied against and will reduce the U.S. Holder’s tax basis in the shares or ADRs and, to the extent distributions
exceed such tax basis, the excess will be treated as gain from a sale or exchange of such shares or ADSs. U.S. Holders that are
corporations will not be allowed a deduction for dividends received in respect of distributions on the shares or the ADSs. For
example, if the gross amount of a distribution with respect to the shares or ADSs exceeds the Company’s current and accumulated
earnings and profits by US$10.00, such excess will generally not be subject to a U.S. tax to the extent the U.S. Holder’s
tax basis in the shares or ADSs equals or exceeds US$10.00. The Company does not maintain calculations of its earnings and profits
under U.S. federal income tax principles. Accordingly, U.S. Holders should assume that any cash distribution made by us will be
treated as a dividend for U.S. federal income tax purposes.



If a dividend distribution is paid in Chilean
pesos, the amount includable in income will generally be the U.S. dollar value, on the date of receipt by the U.S. Holder in the
case of the shares or by the depositary in the case of the ADSs, of the peso amount distributed, regardless of whether the payment
is actually converted into U.S. dollars. The amount of any distribution of property other than cash will be the fair market value
of such property on the date of distribution. Any gain or loss resulting from currency exchange rate fluctuations during the period
from the date the dividend is includable in the income of the U.S. Holder to the date the pesos are converted into U.S. dollars
will be treated as ordinary income or loss.



A dividend distribution will be treated as
foreign source income and will generally be classified as “passive category income” or in the case of certain U.S.
Holders “general category income” for U.S. foreign tax credit purposes. If Chilean withholding taxes are imposed on
a dividend, U.S. Holders will be treated as having actually received the amount of such taxes (net of any credit for the First
Category Tax) and as having paid such amount to the Chilean taxing authorities. As a result, the amount of dividend income included
in gross income by a U.S. Holder will be greater than the amount of cash actually received by the U.S. Holder with respect to
such dividend income. A U.S. Holder may be able, subject to certain generally applicable limitations, to claim a foreign tax credit
or a deduction for Chilean withholding taxes (net of any credit for the First Category Tax) imposed on dividend payments. The
rules relating to the determination of the U.S. foreign tax credit are complex and the calculation of U.S. foreign tax credits
and, in the case of a U.S. Holder that elects to deduct foreign taxes, the availability of deductions, involve the application
of rules that depend on a U.S. Holder’s particular circumstances. U.S. Holders should, therefore, consult their own tax
advisors regarding the application of the U.S. foreign tax credit rules to dividend income on the shares or ADSs.



Subject to the discussion below under “Information
Reporting and Backup Withholding,” if you are a Non-U.S. Holder, you generally will not be subject to U.S. federal income
or withholding tax on dividends received by you on your shares or ADSs, unless you conduct a trade or business in the United States
and such income is effectively connected with that trade or business.



124







Capital Gains



A U.S. Holder will generally recognize gain
or loss on the sale, redemption or other disposition of the shares or ADRs in an amount equal to the difference between the amount
realized on the sale or exchange and the U.S. Holder’s adjusted basis in such shares or ADSs. Thus, if the U.S. Holder sells
the shares for US$40.00 and such U.S. Holder’s tax basis in such shares is US$30.00, such U.S. Holder will generally recognize
a gain of US$10.00 for U.S. federal income tax purposes. Subject to the discussion below under “Passive Foreign Investment
Company Considerations,” gain or loss upon the sale of the shares or ADSs will be capital gain or loss if the shares or
ADSs are capital assets in the hands of the U.S. Holder. Capital gains on the sale of capital assets held for one year or less
are subject to U.S. federal income tax at ordinary income tax rates. Net capital gains derived with respect to capital assets
held for more than one year are eligible for reduced rates of taxation. Gain or loss realized by a U.S. Holder on the sale or
exchange of shares or ADSs will be U.S. source income. In addition, certain limitations exist on the deductibility of capital
losses by both corporate and individual taxpayers. Any tax imposed by Chile directly on the gain from such a sale would generally
be eligible for the U.S. foreign tax credit; however, because the gain would generally be U.S. source, a U.S. Holder might not
be able to use the credit otherwise available. U.S. Holders should consult their own tax advisors regarding the foreign tax credit
implications of the sale, redemption or other disposition of a share or ADS.



Subject to the discussion below under “Information
Reporting and Backup Withholding,” a Non-U.S. Holder of ADSs or shares will not be subject to United States income or withholding
tax on gain from the sale or other disposition of ADSs or shares unless, in general (i) such gain is effectively connected with
the conduct of a trade or business within the United States or (ii) the Non-U.S. Holder is an individual who is present in the
United States for at least 183 days during the taxable year of the dispositionand certain other
conditions are met.



Passive Foreign Investment Company Considerations



A Non-U.S. corporation will be classified
as a “passive foreign investment company,” or a PFIC, for U.S. federal income tax purposes in any taxable year in
which, after applying certain look-through rules, either (i) at least 75% of its gross income is “passive income”
or (ii) at least 50% of the average value of its gross assets is attributable to assets that produce “passive income”
or are held for the production of passive income. Passive income for this purpose generally includes dividends, interest, royalties,
rents and gains from the sale of stock (including gains from the sale of stock of certain subsidiaries), partnership interests,
securities or commodities.



Based on certain estimates of our gross income
and gross assets and the nature of our business, the Company believes that it was not classified as a PFIC in 2014. The Company’s
status in future years will depend on its assets and activities in those years. If the Company were a PFIC for 2014 or for any
prior or future taxable year during which a U.S. Holder held shares or ADSs, such U.S. Holder of shares or ADSs generally would
be subject to additional filing requirements, imputed interest charges and other disadvantageous tax treatment (including the
denial of taxation at the lower rates applicable to long-term capital gains with respect to any gain from the sale or exchange
of shares or ADSs).



Information Reporting and Backup Withholding



Payments of dividends on the shares or ADSs
and the proceeds of sale or other disposition of the shares or ADSs within the United States by holders may be subject to U.S.
information reporting and backup withholding. A U.S. Holder generally will be subject to U.S. information reporting and backup
withholding (currently at a rate of 28%) unless the recipient of such payment supplies an accurate taxpayer identification number,
as well as certain other information, or otherwise establishes an exemption, in the manner prescribed by United States law and
applicable regulations. U.S. information reporting and backup withholding of U.S. federal income tax at the same rate may also
apply to Non-U.S. Holders that are not “exempt recipients” and that fail to provide certain information as may be
required by United States law and applicable regulations. Any amount withheld under U.S. backup withholding is not an additional
tax and is generally allowable as a credit against the U.S. Holder’s federal income tax liability upon furnishing the required
information to the IRS.



125







In addition, certain U.S. Holders, electing
nonresident aliens and residents of a U.S. possession may be required to report information with respect to their investment in
shares or, it is assumed, ADSs to the Internal Revenue Service. Investors who fail to report required information could become
subject to substantial penalties and/or an extended statute of limitations.



HOLDERS ARE URGED TO CONSULT THEIR OWN TAX
ADVISORS REGARDING THE APPLICATION OF U.S. INFORMATION REPORTING AND BACKUP WITHHOLDING RULES TO THEIR PARTICULAR CIRCUMSTANCES.



| | 10.F. | Dividends and Paying Agents
| | ----- | ---------------------------

Not applicable.



| | 10.G. | Statement by Experts
| | ----- | --------------------

Not applicable.



| | 10.H. | Documents on Display
| | ----- | --------------------



Documents referred to in this Form 20-F are
available to the public at:



http://www.sec.gov/edgar/searchedgar/companysearch.html,
CIK: 909037.



| | 10.I. | Subsidiary Information
| | ----- | ----------------------

See “Item 4.C. Organizational Structure.”



ITEM 11. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK



As explained elsewhere in this Annual Report,
we transact our businesses in more than 110 countries, thereby rendering our market risk dependent upon the fluctuations of foreign
currencies and local and international interest rates. These fluctuations may generate losses in the value of financial instruments
taken in the normal course of business.



We, from time to time and depending upon then
current market conditions, review and re-establish our financial policies to protect our operations. Management is authorized
by our Board of Directors to engage in certain derivative contracts such as forwards and swaps to specifically hedge the fluctuations
in interest rates and in currencies other than the U.S. dollar.



Derivative instruments used by us are generally
transaction-specific so that a specific debt instrument or contract determines the amount, maturity and other terms of the hedge.
We do not use derivative instruments for speculative purposes.



Interest Rate Risk. As of December 31, 2014,
we had approximately 14% of our financial debt effectively priced at LIBOR, and therefore significant increases in the rate could
impact our financial condition.



Interest rate fluctuations, due to the uncertain
future behavior of markets, may have a material impact on our financial results.



126







We have short and long term debt valued at
LIBOR plus a spread. We are partially exposed to fluctuations of this rate, as we hold hedging derivative instruments to hedge
a portion of our liabilities subject to LIBOR rate fluctuations.



As of December 31, 2014, approximately 66%
of our current financial obligations were subject to LIBOR rate fluctuation and therefore, significant increases in the rate may
impact our financial position.



In addition, as of December 31, 2014, our
total financial debt is primarily long-term, with 11% of maturities less than 12 months, which decreases the exposure to changes
in the interest rates.



Exchange Rate Risk. Although the U.S. dollar
is the primary currency in which we transact our businesses, our operations throughout the world expose us to exchange rate variations
for non-U.S. dollar currencies. Therefore, fluctuations in the exchange rate of such local currencies may affect our financial
condition and results of operations. To lessen these effects, we maintain derivative contracts to protect the net difference between
our principal assets and liabilities for currencies other than the U.S. dollar. These contracts are renewed periodically depending
on the amount covered in each currency. Aside from this, we do not hedge potential future income and expenses in currencies other
than the U.S. dollar with the exception of the Euro and Chilean peso. We estimate annual sales in Euros and expenses in Chilean
pesos, and depending on the circumstances we secure the exchange difference with derivative contracts.



The following is a summary of the aggregate
net monetary assets and liabilities that are denominated in non-U.S. dollar currencies as of December 31, 2014, 2013 and 2012.
Figures do not include our financial hedging positions for year-end:



|                   |  | 2014   |         |   | 2013   |  |          | 2012   | 
|------------------ |  | ------ | ------- | - | ------ |  | -------- | ------ | 
|                   |  | Th US$ |         |   | Th US$ |  |          | Th US$ | 
|Chilean pesos      |  |        | 15,787  |   |        |  | (524,530 | )      | 
|Brazilian real     |  |        | (377    | ) |        |  | (1,211   | )      | 
|Euro               |  |        | 37,433  |   |        |  | 32,776   |        | 
|Japanese yen       |  |        | 1,497   |   |        |  | 1,183    |        | 
|Mexican pesos      |  |        | 1,111   |   |        |  | 137      |        | 
|South African rand |  |        | 25,444  |   |        |  | 29,404   |        | 
|Dirhams            |  |        | 19,838  |   |        |  | 24,594   |        | 
|Other currencies   |  |        | 27,356  |   |        |  | 22,924   |        | 
|Total, net         |  |        | 128,089 |   |        |  | (414,723 | )      | 



Also, we had open forward exchange contracts
to buy U.S. dollars and sell Chilean pesos to hedge our time deposits in Chilean pesos for approximately US$274 million (Ch$166,229
million).



The information contained in Item 11. Quantitative
and Qualitative Disclosures About Market Risk, contains statements that may constitute forward-looking statements. See “Cautionary
Statement Regarding Forward-Looking Statements” in this Annual Report, for safe harbor provisions.



ITEM 12. DESCRIPTION OF SECURITIES OTHER
THAN EQUITY SECURITIES



ITEM 12.A.DEBT SECURITIES



Not applicable.



127







ITEM 12.B. WARRANTS AND RIGHTS



Not applicable.



ITEM 12.C. OTHER SECURITIES



Not applicable.



ITEM 12.D. AMERICAN DEPOSITARY RECEIPTS



Depositary Fees and Charges



The Company’s American Depositary Shares (“ADS”)
program is administered by The Bank of New York Mellon (101 Barclay St., 22 Fl. W., New York, NY 10286), as Depositary. Under
the terms of the Deposit Agreement, an ADS holder may have to pay the following service fees to the Depositary:



|Service
    Fees                                         |  | Fees           
|-------------------------------------------------------- |  | ---------------
|Execution and delivery of ADSs and the surrender of ADRs |  | $0.05 per share



Depositary Payments Fiscal Year 2014



The Depositary has agreed to reimburse certain expenses related
to the Company’s ADS program and incurred by the Company in connection with the program. In 2014, the Depositary reimbursed
expenses related to investor relations for a total amount of US$263,575.53.



128







PART II



ITEM 13.	DEFAULTS, DIVIDEND ARREARAGES
AND DELINQUENCIES



Not applicable



ITEM 14.	MATERIAL MODIFICATIONS TO
THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS



Not applicable.



ITEM 15.	CONTROLS AND PROCEDURES



| | (a) | Disclosure Control
                                         and Procedures
| | --- | --------------------------------------------------------------------------





SQM management, with the participation of the Company’s current Chief Executive Officer and Chief
Financial Officer and other members of the Company’s executive management, evaluated the effectiveness of our disclosure
controls and procedures, pursuant to Rule 13(a)-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), as of the end of the period covered by this Annual Report. Based upon that evaluation, our current Chief Executive
Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were not effective
in providing reasonable assurance that material information is made known to management and that financial and non-financial information
is properly recorded, processed, summarized and reported due to the material weakness identified in the control environment discussed
below in “—Management’s Annual Report on Internal Control Over Financial Reporting.”



The Company’s disclosure
controls and procedures are designed to provide reasonable assurance that information required to be disclosed by the issuer in
the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods
specified in the Commission’s rules and forms, and that such information is accumulated and communicated to management of
the Company, with the participation of its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely
decisions regarding required disclosures. However, through the same design and evaluation period of the disclosure controls and
procedures, the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer,
recognized that there are inherent limitations to the effectiveness of any control system regardless of how well designed and operated.
In such a way they can provide only reasonable assurance of achieving the desired control objectives, and no evaluation can provide
absolute assurance that all control issues or instances of fraud, if any, within the Company have been detected.



(b) Management’s Annual Report
on Internal Control Over Financial Reporting



SQM management is responsible for establishing
and maintaining adequate internal control over financial reporting as such term is defined in Exchange Act Rule 13a-15(f). The
Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted
accounting principles.



Because of its inherent limitations, internal
control over financial reporting may not necessarily prevent or detect some misstatements. It can only provide reasonable assurance
regarding financial statement preparation and presentation. Also, projections of any evaluation of effectiveness for future periods
are subject to the risk that controls may become inadequate because of changes in conditions or because the degree of compliance
with the polices or procedures may deteriorate over time.



Management assessed the effectiveness of its
internal control over financial reporting as of December 31, 2014. The assessment was based on criteria established in the framework
“Internal Controls — Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO). Based on the assessment, SQM management has concluded that as of December 31, 2014, the Company’s
internal control over financial reporting was not effective as a result of a material weakness described below.



129







A material weakness is a deficiency, or a
combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a
material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis.





In SQM management’s assessment, the
Company did not maintain effective controls over payments directed by the office of the former Chief Executive Officer. This deficiency
resulted in adjustments to the consolidated financial statements for the year ended December 31, 2014. Additionally, this deficiency
could result in misstatements that would result in a material misstatement of the consolidated financial statements that would
not be prevented or detected. Accordingly, our management has determined that this control deficiency constitutes a material weakness.



(c) Remediation Plans



We reviewed the results of management's
assessment, including the identification of the material weakness described above, with the Audit Committee of our Board of Directors.





In an effort to remediate the identified material
weakness and enhance our internal controls, management has initiated, or is planning to initiate, the following series of measures:



| | · | A
                                         review of the processes, procedures and controls over payments from the budget of the
                                         office of the Chief Executive Officer; to ensure greater oversight and transparency;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Modifications
                                         of the processes, procedures and controls over payments from the budget of the office
                                         of the Chief Executive Officer to ensure greater oversight and transparency;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Investment
                                         in improved education and training relating to the control environment generally and
                                         the modified processes described above once implemented
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





(d) Attestation Report of the Registered
Public Accounting Firm



PriceWaterhouseCoopers Consultores, Auditores y Compañia Limitada (“PWC”), the independent
registered public accounting firm that has audited our Consolidated Financial Statements, has also issued an attestation report
on the Company’s internal control over financial reporting as of December 31, 2014. This attestation report appears on pages
F-1 and F-2 under Item 18 Financial Statements.





(e) Changes in Internal Control over
Financial Reporting





There were no changes in the Company’s
internal control over financial reporting that occurred during 2014 that have materially affected, or are reasonably likely to
materially affect, the Company’s internal control over financial reporting.





ITEM 16. [Reserved]





ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT



The Board of Directors has determined that
the Company does not have an audit committee financial expert within the meaning of the regulations adopted under the Sarbanes-Oxley
Act of 2002.



Pursuant to Chilean regulations, the Company
has a Directors’ Committee whose main duties are similar to those of an audit committee. Each of the members of the Directors’
Committee is a member of the audit committee. See “Item 6.C. Board Practices.”



130







Our Board believes that the members of the
Directors’ Committee have the necessary expertise and experience to perform the functions of the Directors’ Committee
pursuant to Chilean regulations.



ITEM 16B. CODE OF ETHICS



We have adopted a Code of Business Conduct
that applies to the Chief Executive Officer, the Chief Financial Officer, the Internal Auditor as well as all our officers and
employees. Our Code adheres to the definition set forth in Item 16B. of Form 20-F under the Exchange Act.



No waivers have been granted therefrom to
the officers mentioned above.



The full text of the code is available on
our website at http://www.sqm.com in the Investor Relations section under “Corporate Governance.”



Amendments to, or waivers from one or more
provisions of the code will be disclosed on our website.



ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND
SERVICES



The table shows the amount of fees billed
for each of the last two fiscal years by our independent auditors, PricewaterhouseCoopers Consultores, Auditores y Compañía
Limitada (“PwC”) for the 2014 and 2013 fiscal year, in relation to audit services, audit-related services, tax and
other services provided to us (in thousands of U.S. dollars).



|                   |  | 2014 |       |  | 2013 | 
|------------------ |  | ---- | ----- |  | ---- | 
|Audit fees         |  |      | 1,327 |  |      | 
|Audit-related fees |  |      | -     |  |      | 
|Tax fees           |  |      | 146   |  |      | 
|Other fees         |  |      | 223   |  |      | 
|Total fees         |  |      | 1,696 |  |      | 



Audit fees in the above table are the aggregate
fees billed by PwC in 2014 and 2013, in connection with the audit of our annual Consolidated Financial Statements, as well as
the review of other statutory filings.



Audit-related fees in the above table are
fees billed by PwC in 2014 and 2013 for assurance and related services that are reasonably related to the performance of the audit
or review of our financial statements and are not reported under “Audit Fees.”



Total fees in the above table are fees billed
by PwC of US$1.70 million in 2014 and US$1.98 million in 2013.



Directors’ Committee Pre-Approval
Policies and Procedures

Chilean law states that public companies are
subject to “pre-approval” requirements under which all audit and non-audit services provided by the independent auditor
must be pre-approved by the Directors’ Committee. Our Directors’ Committee approves all audits, audit-related, tax
and other services provided by our auditors.



Any services provided by our auditors that
are not specifically included within the scope of the audit must be pre-approved by the Directors’ Committee prior to any
engagement.



131







ITEM 16D. EXEMPTIONS FROM THE LISTING
STANDARDS FOR AUDIT COMMITTEES



Not applicable.



ITEM 16E. PURCHASES OF EQUITY SECURITIES
BY THE ISSUER AND AFFILIATED PURCHASERS



Not applicable.



ITEM 16F. CHANGE IN REGISTRANT’S
CERTIFYING ACCOUNTANT



Not applicable.



ITEM 16G. CORPORATE GOVERNANCE



For a summary of the significant differences
between our corporate governance practices and the NYSE corporate governance standards, see “Item 6.C. Board Practices.”



ITEM 16H.	MINE SAFETY AND DISCLOSURE



Not applicable.



132









PART III



ITEM 17.	FINANCIAL STATEMENTS



See “Item 18. Financial Statements.”



ITEM 18.	FINANCIAL STATEMENTS



For a list of all financial statements filed
as part of this Form 20-F Annual Report, see “Item 19. Exhibits.”



ITEM 19.	EXHIBITS



(a) Index to Financial Statements



|Reports of Independent Registered Public Accounting Firms                                                              |  | F-1 
|---------------------------------------------------------------------------------------------------------------------- |  | ----
|Consolidated Financial Statements:                                                                                     |  |     
|Audited Consolidated Statements of Financial Position as of December 31, 2014 and 2013                                 |  | F-3 
|Audited Consolidated Statements of Income for each of the three years in the period ended December 31, 2014            |  | F-5 
|Audited Consolidated Statement of Comprehensive Income for the three years in the period ended December 31, 2014       |  | F-7 
|Audited Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2014        |  | F-8 
|Audited Consolidated Statements of Changes in Equity for each of the three years in the period ended December 31, 2014 |  | F-10
|Notes to the Audited Consolidated Financial Statements                                                                 |  | F-13
|Supplementary Schedules*                                                                                               |  |     



*All other schedules have
been omitted because they are not applicable or the required information is shown in the Consolidated Financial Statements or
notes thereto.



(b) Exhibits



|ExhibitNo. |  | Exhibit                                                                
|---------- |  | -----------------------------------------------------------------------
|1.1        |  | By-laws (Estatutos) of the Company**                                   
|8.1        |  | Significant subsidiaries of the Company                                
|12.1       |  | Section 302 Chief Executive Officer Certification                      
|12.2       |  | Section 302 Chief Financial Officer Certification                      
|13.1       |  | Section 906 Chief Executive Officer Certification                      
|13.2       |  | Section 906 Chief Financial Officer Certification                      
|23.1       |  | Consent of Marta Aguilera                                              
|23.2       |  | Consent of Orlando Rojas                                               
|23.3       |  | Consent of Álvaro Henríquez                                            
|99.1       |  | Certificate of qualified competency issued by Chilean Mining Commission
|99.2       |  | Certificate of qualified competency issued by Chilean Mining Commission
|99.3       |  | Certificate of qualified competency issued by Chilean Mining Commission



**Incorporated by reference to the
Company’s Annual Report on Form 20-F for the year ended December 31, 2010 filed with the Securities and Exchange Commission
on June 30, 2011.



133







SIGNATURES



The registrant hereby certifies that it meets
all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual
report on its behalf.



SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.



(CHEMICAL AND MINING COMPANY OF CHILE INC.)



/s/ Ricardo Ramos



Ricardo Ramos R.

Chief Financial Officer and

Business Development Senior Vice President



Date: May 18, 2015



134









SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.
AND SUBSIDIARIES



Index to Consolidated Financial Statements



Contents



|Report of Independent Registered Public Accounting Firm                                                                            | F-1 
|---------------------------------------------------------------------------------------------------------------------------------- | ----
|                                                                                                                                   |     
|Consolidated Financial Statements                                                                                                  | F-3 
|                                                                                                                                   |     
|Audited Consolidated Statements of Financial Position as of December 31, 2014 and 2013                                             | F-3 
|Audited Consolidated Statements of Income for each of the three years in the period ended December 31, 2014                        | F-5 
|Audited Consolidated Statement of Other Comprehensive Income for each of
    the three years in the period ended December 31, 2014 | F-7 
|Audited Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2014                    | F-8 
|Audited Consolidated Statements of Changes in Equity for each of the three years in the period ended December 31, 2014             | F-10
|Notes to the Audited Consolidated Financial Statements                                                                             | F-13



|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



135









Report
of Independent Registered Public Accounting Firm



To the Board of Directors and Shareholders

Sociedad Química y Minera de Chile
S.A.



In our opinion, the accompanying consolidated statements of financial position and the related consolidated
statements of income, other comprehensive income, changes in equity and cash flows present fairly, in all material respects, the
financial position of Sociedad Química y Minera de Chile S.A.and
its subsidiaries at December 31, 2014 and 2013, and the results of their operations and their cash flows for each of the three
years in the period ended December 31, 2014 in conformity with International Financial Reporting Standards as issued by the International
Accounting Standards Board. Also in our opinion, the Company did not maintain, in all material respects, effective internal control
over financial reporting as of December 31, 2014, based on criteria established in Internal Control - Integrated Framework (2013)
issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) because a material weakness in internal control
over financial reporting relating to ineffective controls over payments directed by the office of the former Chief Executive Officer.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that
there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented
or detected on a timely basis. The material weakness referred to above is described in Management’s Annual Report on Internal
Control over Financial Reporting appearing under item 15 of the 2014 Annual Report on Form 20F. We considered this material weakness
in determining the nature, timing, and extent of audit tests applied in our audit of the December 31, 2014 consolidated financial
statements, and our opinion regarding the effectiveness of the Company’s internal control over financial reporting does not
affect our opinion on those consolidated financial statements. The Company's management is responsible for these financial statements,
for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control
over financial reporting, included in management's report referred to above. Our responsibility is to express opinions on these
financial statements and on the Company's internal control over financial reporting based on our integrated audits. We conducted
our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material
misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits
of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial
statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal
control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and
operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures
as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.





F-1









Report of Independent Registered Public
Accounting Firm

Sociedad Química y Minera de Chile
S.A.

2





A company’s internal control over
financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s
internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with
generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect
on the financial statements.



Because of its inherent limitations, internal
control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness
to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.







/s/ PricewaterhouseCoopers

Santiago, Chile

May 18, 2015







F-2









| | Sociedad
    Química y Minera de Chile S.A. and Subsidiaries
| | ------------------------------------------------------------



Consolidated Statements of
Financial Position










|Assets                                              |  | Note |  | As of December 31, 2014 |           |  | As of December 31, 2013 | 
|--------------------------------------------------- |  | ---- |  | ----------------------- | --------- |  | ----------------------- | 
|                                                    |  |      |  | ThUS$                   |           |  | ThUS$                   | 
|                                                    |  |      |  |                         |           |  |                         | 
|Current assets                                      |  |      |  |                         |           |  |                         | 
|Cash and cash equivalents                           |  | 7.1  |  |                         | 354,566   |  |                         | 
|Other current financial assets                      |  | 10.1 |  |                         | 670,602   |  |                         | 
|Other current non-financial assets                  |  | 25   |  |                         | 43,736    |  |                         | 
|Trade and other receivables, current                |  | 10.2 |  |                         | 340,830   |  |                         | 
|Trade receivables due from related parties, current |  | 9.5  |  |                         | 134,506   |  |                         | 
|Current inventories                                 |  | 8    |  |                         | 919,603   |  |                         | 
|Current tax assets                                  |  | 28.1 |  |                         | 47,975    |  |                         | 
|Total current assets                                |  |      |  |                         | 2,511,818 |  |                         | 
|                                                    |  |      |  |                         |           |  |                         | 
|Non-current assets                                  |  |      |  |                         |           |  |                         | 
|Other non-current financial assets                  |  | 10.1 |  |                         | 427       |  |                         | 
|Other non-current non-financial assets              |  | 25   |  |                         | 32,171    |  |                         | 
|Trade receivables, non-current                      |  | 10.2 |  |                         | 2,044     |  |                         | 
|Investments in associates                           |  | 11.1 |  |                         | 49,723    |  |                         | 
|Investments in joint ventures                       |  | 12.3 |  |                         | 26,055    |  |                         | 
|Intangible assets other than goodwill               |  | 13.1 |  |                         | 114,735   |  |                         | 
|Goodwill                                            |  | 13.1 |  |                         | 38,388    |  |                         | 
|Property, plant and equipment                       |  | 14.1 |  |                         | 1,887,954 |  |                         | 
|Deferred tax assets                                 |  | 28.4 |  |                         | 340       |  |                         | 
|Total non-current assets                            |  |      |  |                         | 2,151,837 |  |                         | 
|Total assets                                        |  |      |  |                         | 4,663,655 |  |                         | 



The accompanying notes form an integral part of these consolidated
financial statements.





|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 





F-3







| | Sociedad
    Química y Minera de Chile S.A. and Subsidiaries
| | ------------------------------------------------------------



Consolidated Statements of Financial Position
(continued)












|Liabilities and Equity                         |  | Note |  | As of December 31, 2014 |           |   | As of December 31, 2013 | 
|---------------------------------------------- |  | ---- |  | ----------------------- | --------- | - | ----------------------- | 
|                                               |  |      |  | ThUS$                   |           |   | ThUS$                   | 
|                                               |  |      |  |                         |           |   |                         | 
|Liabilities                                    |  |      |  |                         |           |   |                         | 
|Current liabilities                            |  |      |  |                         |           |   |                         | 
|Other current financial liabilities            |  | 10.4 |  |                         | 213,172   |   |                         | 
|Trade and other payables, current              |  | 10.5 |  |                         | 145,160   |   |                         | 
|Trade payables due to related parties, current |  | 9.6  |  |                         | 231       |   |                         | 
|Other current provisions                       |  | 18.1 |  |                         | 27,747    |   |                         | 
|Current tax liabilities                        |  | 28.2 |  |                         | 36,171    |   |                         | 
|Provisions for employee benefits, current      |  | 15.1 |  |                         | 18,384    |   |                         | 
|Other current non-financial liabilities        |  | 18.3 |  |                         | 90,010    |   |                         | 
|Total current liabilities                      |  |      |  |                         | 530,875   |   |                         | 
|                                               |  |      |  |                         |           |   |                         | 
|Non-current liabilities                        |  |      |  |                         |           |   |                         | 
|Other non-current financial liabilities        |  | 10.4 |  |                         | 1,574,225 |   |                         | 
|Other non-current provisions                   |  | 18.1 |  |                         | 8,890     |   |                         | 
|Deferred tax liabilities                       |  | 28.4 |  |                         | 223,349   |   |                         | 
|Provisions for employee benefits, non-current  |  | 15.1 |  |                         | 33,801    |   |                         | 
|Total non-current liabilities                  |  |      |  |                         | 1,840,265 |   |                         | 
|Total liabilities                              |  |      |  |                         | 2,371,140 |   |                         | 
|                                               |  |      |  |                         |           |   |                         | 
|Equity                                         |  | 17   |  |                         |           |   |                         | 
|Share capital                                  |  |      |  |                         | 477,386   |   |                         | 
|Retained earnings                              |  |      |  |                         | 1,768,424 |   |                         | 
|Other reserves                                 |  |      |  |                         | (13,162   | ) |                         | 
|Equity attributable to owners of the Parent    |  |      |  |                         | 2,232,648 |   |                         | 
|Non-controlling interests                      |  |      |  |                         | 59,867    |   |                         | 
|Total equity                                   |  |      |  |                         | 2,292,515 |   |                         | 
|Total liabilities and equity                   |  |      |  |                         | 4,663,655 |   |                         | 



The accompanying notes form an integral part of these consolidated
financial statements.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-4







| | Sociedad
    Química y Minera de Chile S.A. and Subsidiaries
| | ------------------------------------------------------------



Consolidated Statements
of Income










|                                                                                       |  |      |      |  | January to December | 
|-------------------------------------------------------------------------------------- |  | ---- | ---- |  | ------------------- | 
|                                                                                       |  | Note |      |  | 2014                | 
|                                                                                       |  |      |      |  | ThUS$               | 
|Revenue                                                                                |  |      | 20   |  |                     | 
|Cost of sales                                                                          |  |      | 27.2 |  |                     | 
|Gross profit                                                                           |  |      |      |  |                     | 
|                                                                                       |  |      |      |  |                     | 
|Other income                                                                           |  |      | 27.3 |  |                     | 
|Administrative expenses                                                                |  |      | 27.4 |  |                     | 
|Other expenses by function                                                             |  |      | 27.5 |  |                     | 
|Other gains (losses)                                                                   |  |      | 27.6 |  |                     | 
|Profit (loss) from operating activities                                                |  |      |      |  |                     | 
|Finance income                                                                         |  |      |      |  |                     | 
|Finance costs                                                                          |  |      | 22   |  |                     | 
|Share of profit of associates and joint ventures accounted for using the equity method |  |      |      |  |                     | 
|Foreign exchange losses net                                                            |  |      | 23   |  |                     | 
|Profit (loss) before taxes                                                             |  |      |      |  |                     | 
|Income tax expense                                                                     |  |      | 28.4 |  |                     | 
|                                                                                       |  |      |      |  |                     | 
|Profit (loss)                                                                          |  |      |      |  |                     | 
|                                                                                       |  |      |      |  |                     | 
|Profit for the year                                                                    |  |      |      |  |                     | 
|Profit attributable to                                                                 |  |      |      |  |                     | 
|Owners of the Parent                                                                   |  |      |      |  |                     | 
|Non-controlling interests                                                              |  |      |      |  |                     | 
|Profit for the year                                                                    |  |      |      |  |                     | 



The accompanying notes form an integral part of these consolidated
financial statements.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-5







| | Sociedad
    Química y Minera de Chile S.A. and Subsidiaries
| | ------------------------------------------------------------



Consolidated Statements of Income (continued)










|                                           |  |      |  | January to December |     
|------------------------------------------ |  | ---- |  | ------------------- | ----
|                                           |  | Note |  | 2014                |     
|                                           |  |      |  | US$                 |     
|                                           |  |      |  |                     |     
|Earnings per share                         |  |      |  |                     |     
|Common shares                              |  |      |  |                     |     
|Basic earnings per share (US$ per share)   |  | 21   |  |                     | 0.90
|                                           |  |      |  |                     |     
|Diluted common shares                      |  |      |  |                     |     
|Diluted earnings per share (US$ per share) |  | 21   |  |                     | 0.90



The accompanying notes form an integral part of these consolidated
financial statements.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-6









| | Sociedad
    Química y Minera de Chile S.A. and Subsidiaries
| | ------------------------------------------------------------



Consolidated
Statements of Other Comprehensive Income












|                                                                            |  | January to December |        
|--------------------------------------------------------------------------- |  | ------------------- | -------
|                                                                            |  |                     |        
|                                                                            |  | 2014                |        
|Consolidated Statements of comprehensive income                             |  | ThUS$               |        
|                                                                            |  |                     |        
|Profit for the year                                                         |  |                     | 244,278
|                                                                            |  |                     |        
|Components of other comprehensive income:                                   |  |                     |        
|Items that will not to be reclassified to profit or loss                    |  |                     |        
|Actuarial gains/losses from defined benefit plans                           |  |                     | (672   
|                                                                            |  |                     |        
|Items that may be subsequently reclassified to profit or loss               |  |                     |        
|Gain (loss) from foreign currency translation differences                   |  |                     | (4,016 
|Cash flow hedges                                                            |  |                     | 2,196  
|                                                                            |  |                     |        
|Other comprehensive income before taxes                                     |  |                     | (2,492 
|Income taxes associated with cash flow hedges in other comprehensive income |  |                     | (311   
|                                                                            |  |                     |        
|Other comprehensive income                                                  |  |                     | (2,803 
|                                                                            |  |                     |        
|Total comprehensive income                                                  |  |                     | 241,475
|                                                                            |  |                     |        
|Comprehensive income attributable to                                        |  |                     |        
|Owners of the Parent                                                        |  |                     | 234,218
|Non-controlling interests                                                   |  |                     | 7,257  
|Total comprehensive income                                                  |  |                     | 241,475



The accompanying notes form an integral part of these consolidated
financial statements.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-7







| | Sociedad
    Química y Minera de Chile S.A. and Subsidiaries
| | ------------------------------------------------------------



Consolidated Statements of Cash Flows












|Consolidated statements of cash flows                                       |  |      |  | January to December |           
|--------------------------------------------------------------------------- |  | ---- |  | ------------------- | ----------
|                                                                            |  |      |  |                     |           
|                                                                            |  | Note |  | 2014 ThUS$          |           
|Cash flows from (used in) operating activities                              |  |      |  |                     |           
|                                                                            |  |      |  |                     |           
|Types of receipts from
operating activities                                 |  |      |  |                     |           
|                                                                            |  |      |  |                     |           
|Cash receipts from sales of goods and rendering of services                 |  |      |  |                     | 1,944,072 
|                                                                            |  |      |  |                     |           
|Types of payments                                                           |  |      |  |                     |           
|                                                                            |  |      |  |                     |           
|Cash payments to suppliers for the provision of goods and services          |  |      |  |                     | (1,179,413
|Cash payments to and on behalf of employees                                 |  |      |  |                     | (42,218   
|Other payments related to operating activities                              |  |      |  |                     | (9,770    
|Dividends received                                                          |  |      |  |                     | 11,817    
|Interest paid                                                               |  |      |  |                     | (83,592   
|Interest received                                                           |  |      |  |                     | 16,142    
|Reimbursed (paid) income taxes                                              |  |      |  |                     | (76,810   
|Other incomes (outflows) of cash                                            |  |      |  |                     | 10,816    
|                                                                            |  |      |  |                     |           
|Net cash generated from (used in) operating activities                      |  |      |  |                     | 591,044   
|                                                                            |  |      |  |                     |           
|Cash flows from (used in) investing activities                              |  |      |  |                     |           
|Cash receipts from the loss of control of subsidiaries and other businesses |  |      |  |                     | 5,000     
|Other cash payments made to acquire interest in joint ventures              |  |      |  |                     | -         
|Income from non-attendance capital increase                                 |  |      |  |                     | 4,223     
|Proceeds from the sale of property, plant and equipment                     |  |      |  |                     | 156       
|Proceeds from sales of intangible assets                                    |  |      |  |                     | 15,431    
|Acquisition of intangible assets                                            |  |      |  |                     | -         
|Acquisition of property, plant and equipment                                |  |      |  |                     | (112,143  
|Cash advances and loans granted to third parties                            |  |      |  |                     | (2,470    
|Other incomes (outflows) of cash (*)                                        |  |      |  |                     | (221,561  
|                                                                            |  |      |  |                     |           
|Net cash generated from (used in) investing activities                      |  |      |  |                     | (311,364  



(*) Includes other cash receipts (payments),
investments and redemptions of time deposits and other financial instruments, which do not qualify as cash and cash equivalents
in accordance with IAS 7.7 as they record a maturity date from their date of origin greater than 90 days.



The accompanying notes form an integral part of these consolidated
financial statements.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-8







| | Sociedad
    Química y Minera de Chile S.A. and Subsidiaries
| | ------------------------------------------------------------



Consolidated Statements of Cash Flows (continued)










|                                                                                                       |  |      |  | January to December |         
|------------------------------------------------------------------------------------------------------ |  | ---- |  | ------------------- | --------
|                                                                                                       |  |      |  |                     |         
|                                                                                                       |  | Note |  | 2014 ThUS$          |         
|Cash flows from (used in) financing activities                                                         |  |      |  |                     |         
|                                                                                                       |  |      |  |                     |         
|Proceeds from long-term borrowings                                                                     |  |      |  |                     | 250,000 
|Proceeds from short-term borrowings                                                                    |  |      |  |                     | 180,000 
|Total proceeds from borrowings                                                                         |  |      |  |                     | 430,000 
|Repayment of borrowings                                                                                |  |      |  |                     | (230,000
|Dividends paid                                                                                         |  |      |  |                     | (379,044
|Other cash receipts (payments) (*)                                                                     |  |      |  |                     | (208,991
|                                                                                                       |  |      |  |                     |         
|Net cash generated from (used in) financing activities                                                 |  |      |  |                     | (388,035
|                                                                                                       |  |      |  |                     |         
|Net increase (decrease) in cash and cash equivalents before the effect of changes in the exchange rate |  |      |  |                     | (108,355
|                                                                                                       |  |      |  |                     |         
|Effects of exchange rate fluctuations on cash held                                                     |  |      |  |                     | (13,701 
|Net (decrease) increase in cash and cash equivalents                                                   |  |      |  |                     | (122,056
|                                                                                                       |  |      |  |                     |         
|Cash and cash equivalents at beginning of period                                                       |  |      |  |                     | 476,622 
|Cash and cash equivalents at end of period                                                             |  |      |  |                     | 354,566 



(*) It corresponds to the transfer by flow of bonds and cost
by bond issuance.



The accompanying notes form an integral part of these consolidated
financial statements.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-9







| | Sociedad
    Química y Minera de Chile S.A. and Subsidiaries
| | ------------------------------------------------------------



Consolidated Statements of Changes in
Equity










|                                                                    |  | Share
    capital |         |  | Other reserves                                       |  |        | Total
    Other reserves     |  |  | Retained
    earnings                                   |   |  | Equity
    attributable to owners of the Parent |        |   | Non-controlling
    interests |  |        | Total | 
|------------------------------------------------------------------- |  | ----------------- | ------- |  | ---------------------------------------------------- |  | ------ | ---------------------------- |  |  | ------------------------------------------------------- | - |  | ----------------------------------------------- | ------ | - | ----------------------------- |  | ------ | ----- | 
|2014                                                                |  |                   |         |  | Foreign currency
    translation difference reserves |  |        | Cash flow hedge
    reserves |  |  | Actuarial gains (losses)
    from defined benefit plans |   |  | Other miscellaneous
    reserves                |        |   |                               |  |        |       | 
|                                                                    |  | ThUS$             |         |  | ThUS$                                                |  |        | ThUS$                        |  |  | ThUS$                                                   |   |  | ThUS$                                           |        |   | ThUS$                         |  |        | ThUS$ | 
|                                                                    |  |                   |         |  |                                                      |  |        |                              |  |  |                                                         |   |  |                                                 |        |   |                               |  |        |       | 
|Equity at beginning of the year                                     |  |                   | 477,386 |  |                                                      |  | (3,817 | )                            |  |  | (3,766                                                  | ) |  |                                                 | (1,231 | ) |                               |  | (1,677 | )     | 
|Profit for the year)                                                |  |                   | -       |  |                                                      |  | -      |                              |  |  | -                                                       |   |  |                                                 | -      |   |                               |  | -      |       | 
|Other comprehensive income                                          |  |                   | -       |  |                                                      |  | (3,884 | )                            |  |  | 1,885                                                   |   |  |                                                 | (672   | ) |                               |  | -      |       | 
|Comprehensive income                                                |  |                   | -       |  |                                                      |  | (3,884 | )                            |  |  | 1,885                                                   |   |  |                                                 | (672   | ) |                               |  | -      |       | 
|Dividends                                                           |  |                   | -       |  |                                                      |  | -      |                              |  |  | -                                                       |   |  |                                                 | -      |   |                               |  | -      |       | 
|Increase (decrease) due to changes in interests
    in subsidiaries |  |                   | -       |  |                                                      |  | -      |                              |  |  | -                                                       |   |  |                                                 | -      |   |                               |  | -      |       | 
|Increase (decrease) in equity                                       |  |                   | -       |  |                                                      |  | (3,884 | )                            |  |  | 1,885                                                   |   |  |                                                 | (672   | ) |                               |  | -      |       | 
|                                                                    |  |                   |         |  |                                                      |  |        |                              |  |  |                                                         |   |  |                                                 |        |   |                               |  |        |       | 
|Equity as of December 31, 2014                                      |  |                   | 477,386 |  |                                                      |  | (7,701 | )                            |  |  | (1,881                                                  | ) |  |                                                 | (1,903 | ) |                               |  | (1,677 | )     | 



The accompanying notes form an integral part of these consolidated
financial statements.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-10







| | Sociedad
    Química y Minera de Chile S.A. and Subsidiaries
| | ------------------------------------------------------------



Consolidated Statements of Changes in Equity












|                                |  | Share
    capital |         |  | Other reserves                                       |  |        | Total
    Other reserves     |  |  | Retained
    earnings                                   |   |  | Equity
    attributable to owners of the Parent |        |   | Non-controlling
    interests |  |        | Total | 
|------------------------------- |  | ----------------- | ------- |  | ---------------------------------------------------- |  | ------ | ---------------------------- |  |  | ------------------------------------------------------- | - |  | ----------------------------------------------- | ------ | - | ----------------------------- |  | ------ | ----- | 
|2013                            |  |                   |         |  | Foreign currency
    translation difference reserves |  |        | Cash flow hedge
    reserves |  |  | Actuarial gains (losses)
    from defined benefit plans |   |  | Other miscellaneous
    reserves                |        |   |                               |  |        |       | 
|                                |  |                   |         |  |                                                      |  |        |                              |  |  |                                                         |   |  |                                                 |        |   |                               |  |        |       | 
|                                |  | ThUS$             |         |  | ThUS$                                                |  |        | ThUS$                        |  |  | ThUS$                                                   |   |  | ThUS$                                           |        |   | ThUS$                         |  |        | ThUS$ | 
|                                |  |                   |         |  |                                                      |  |        |                              |  |  |                                                         |   |  |                                                 |        |   |                               |  |        |       | 
|Equity at beginning of the year |  |                   | 477,386 |  |                                                      |  | (330   | )                            |  |  | (16,522                                                 | ) |  |                                                 | (2,243 | ) |                               |  | (1,677 | )     | 
|Profit for the year)            |  |                   | -       |  |                                                      |  | -      |                              |  |  | -                                                       |   |  |                                                 | -      |   |                               |  | -      |       | 
|Other comprehensive income      |  |                   | -       |  |                                                      |  | (3,487 | )                            |  |  | 12,756                                                  |   |  |                                                 | 1,012  |   |                               |  | -      |       | 
|Comprehensive income            |  |                   | -       |  |                                                      |  | (3,487 | )                            |  |  | 12,756                                                  |   |  |                                                 | 1,012  |   |                               |  | -      |       | 
|Dividends                       |  |                   | -       |  |                                                      |  | -      |                              |  |  | -                                                       |   |  |                                                 | -      |   |                               |  | -      |       | 
|Increase (decrease) in equity   |  |                   | -       |  |                                                      |  | (3,487 | )                            |  |  | 12,756                                                  |   |  |                                                 | 1,012  |   |                               |  | -      |       | 
|                                |  |                   |         |  |                                                      |  |        |                              |  |  |                                                         |   |  |                                                 |        |   |                               |  |        |       | 
|Equity as of December 31, 2013  |  |                   | 477,386 |  |                                                      |  | (3,817 | )                            |  |  | (3,766                                                  | ) |  |                                                 | (1,231 | ) |                               |  | (1,677 | )     | 



The accompanying notes form an integral part of these consolidated
financial statements.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-11







| | Sociedad
    Química y Minera de Chile S.A. and Subsidiaries
| | ------------------------------------------------------------



Consolidated Statements of Changes in Equity










|                                |  | Share
    capital |         |  | Other reserves                                       |  |        | Total
    Other reserves     |  |  | Retained
    earnings                                   |   |  | Equity
    attributable to owners of the Parent |        |   | Non-controlling
    interests |  |        | Total | 
|------------------------------- |  | ----------------- | ------- |  | ---------------------------------------------------- |  | ------ | ---------------------------- |  |  | ------------------------------------------------------- | - |  | ----------------------------------------------- | ------ | - | ----------------------------- |  | ------ | ----- | 
|2012                            |  |                   |         |  | Foreign currency
    translation difference reserves |  |        | Cash flow hedge
    reserves |  |  | Actuarial gains (losses)
    from defined benefit plans |   |  | Other miscellaneous
    reserves                |        |   |                               |  |        |       | 
|                                |  |                   |         |  |                                                      |  |        |                              |  |  |                                                         |   |  |                                                 |        |   |                               |  |        |       | 
|                                |  | ThUS$             |         |  | ThUS$                                                |  |        | ThUS$                        |  |  | ThUS$                                                   |   |  | ThUS$                                           |        |   | ThUS$                         |  |        | ThUS$ | 
|                                |  |                   |         |  |                                                      |  |        |                              |  |  |                                                         |   |  |                                                 |        |   |                               |  |        |       | 
|Equity at beginning of the year |  |                   | 477,386 |  |                                                      |  | (1,251 | )                            |  |  | (10,230                                                 | ) |  |                                                 | (2,954 | ) |                               |  | (1,677 | )     | 
|Profit for the year)            |  |                   | -       |  |                                                      |  | -      |                              |  |  | -                                                       |   |  |                                                 | -      |   |                               |  | -      |       | 
|Other comprehensive income      |  |                   | -       |  |                                                      |  | 921    |                              |  |  | (6,292                                                  | ) |  |                                                 | 711    |   |                               |  | -      |       | 
|Comprehensive income            |  |                   | -       |  |                                                      |  | 921    |                              |  |  | (6,292                                                  | ) |  |                                                 | 711    |   |                               |  | -      |       | 
|Dividends                       |  |                   | -       |  |                                                      |  | -      |                              |  |  | -                                                       |   |  |                                                 | -      |   |                               |  | -      |       | 
|Increase (decrease) in equity   |  |                   | -       |  |                                                      |  | 921    |                              |  |  | (6,292                                                  | ) |  |                                                 | 711    |   |                               |  | -      |       | 
|                                |  |                   |         |  |                                                      |  |        |                              |  |  |                                                         |   |  |                                                 |        |   |                               |  |        |       | 
|Equity as of December 31, 2013  |  |                   | 477,386 |  |                                                      |  | (330   | )                            |  |  | (16,522                                                 | ) |  |                                                 | (2,243 | ) |                               |  | (1,677 | )     | 



The accompanying notes form an integral part of these consolidated
financial statements.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-12









| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------







| | Note 1 | Identification and activities of the Company and Subsidiaries
| | ------ | -------------------------------------------------------------



| | 1.1 | Historical background
| | --- | ---------------------



Sociedad Química y Minera de Chile
S.A. "SQM" is an open stock corporation organized under the laws of the Republic of Chile, Tax Identification No. 93.007.000-9.



The Company was incorporated through a
public deed dated June 17, 1968 by the notary public of Santiago Mr. Sergio Rodríguez Garcés. Its existence was approved
by Decree No. 1,164 of June 22, 1968 of the Ministry of Finance, and it was registered on June 29, 1968 in the Registry of Commerce
of Santiago, on page 4,537 No. 1,992. SQM's headquarters are located at El Trovador 4285, Fl. 6, Las Condes, Santiago, Chile. The
Company's telephone number is +56 2 2425-2000.





The Company is registered with the Securities
Registry of the Chilean Superintendence of Securities and Insurance (Superintendencia de Valores y Segurosor “SVS”)
under No. 0184 dated March 18. 1983 and is subject to the inspection of the SVS.







| | 1.2 | Main domicile where the Company performs its production
activities
| | --- | ------------------------------------------------------------------



The Company’s main domiciles are:
Calle Dos Sur plot No. 5 - Antofagasta; Arturo Prat 1060 - Tocopilla; Administración Building w/n - Maria Elena; Administración
Building w/n Pedro de Valdivia - María Elena, Anibal Pinto 3228 - Antofagasta, Kilometer 1378 Ruta 5 Norte Highway - Antofagasta,
Coya Sur Plant w/n - Maria Elena, kilometer 1760 Ruta 5 Norte Highway - Pozo Almonte, Salar de Atacama, potassium chloride plant
s/n - San Pedro de Atacama, potassium sulfate plant at Salar de Atacama s/n – San Pedro de Atacama, mining works at Salar
de Ascotán Region II of Chile, Minsal Mining Camp s/n CL Plant CL, Potassium– San Pedro de Atacama.



| | 1.3 | Codes of main activities
| | --- | ------------------------



The codes of the main activities as established
by the Chilean Superintendence of Securities and Insurance are as follows:



| | - | 1700
                                         (Mining)
| | - | ------------------------------------------------------



| | - | 2200
                                         (Chemical products)
| | - | -----------------------------------------------------------------



| | - | 1300
                                         (Investment)
| | - | ----------------------------------------------------------



| | 1.4 | Description of the nature of operations and main activities
| | --- | -----------------------------------------------------------



Our products are mainly derived from mineral deposits found
in northern Chile. We mine and process caliche ore and brine deposits. The caliche ore in northern Chile contains the only known
nitrate and iodine deposits in the world and is the world’s largest commercially exploited source of natural nitrates. The
brine deposits of the Salar de Atacama, a salt-encrusted depression within the Atacama Desert in northern Chile, contain high concentrations
of lithium and potassium as well as significant concentrations of sulfate and boron.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-13







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 1 | Identification and Activities of the Company and Subsidiaries
(continued)
| | ------ | -------------------------------------------------------------------------



| | 1.4 | Description of the nature of operations and main activities,
continued
| | --- | ----------------------------------------------------------------------



From our caliche
ore deposits located in the north of Chile, we produce a wide range of nitrate-based products used for specialty plant nutrients
and industrial applications, as well as iodine and iodine derivatives.At the Salar de Atacama, we extract brines rich in
potassium, lithium, sulfate and boron in order to produce potassium chloride, potassium sulfate, lithium solutions, boric acid
and bischofite (magnesium chloride).We produce lithium carbonate and lithium hydroxide at our plant
near the city of Antofagasta, Chile, from the solutions brought from the Salar de Atacama. We market all of these products through
an established worldwide distribution network.



We sell our products in over 100 countries
worldwide through our global distribution network and generate our revenue mainly from abroad.



Our products are divided into six categories:
specialty plant nutrition, iodine and its derivatives, lithium and its derivatives, industrial chemicals, potassium and other products
and services, described as follows:



Specialty plant nutrition: SQM produces
and sells four types of specialty plant nutrition in this line of business: potassium nitrate, sodium nitrate, sodium potassium
nitrate, and specialty blends. This business is characterized by being closely related to its customers for which it has specialized
staff who provide expert advisory in best practices for fertilization according to each type of crop, soil and climate. Within
this type of business, potassium derivative products and especially potassium nitrate have had a leading role given the contribution
they make to develop crops, thereby ensuring longer post-harvest crop duration, in addition to improving fruit quality, flavor
and color. Potassium nitrate, which is sold in multiple formats and as a part of other specialty blends, is complemented by sodium
nitrate, potassium sodium nitrate, and more than 200 fertilizer blends.



Iodine: The Company is a major producer
of iodine at worldwide level. Iodine is widely used in the pharmaceutical industry, technology and nutrition. Additionally, iodine
is used as X ray contrast media and polarizing film for LCD displays.



Lithium: the Company’s lithium
is mainly used for manufacturing rechargeable batteries for cell phones, cameras and notebooks. Through the manufacturing of lithium-based
products, SQM provides significant materials to face great challenges such as the efficient use of energy and raw materials. Lithium
is not only used for rechargeable batteries and in new technologies for vehicles propelled by electricity, but is also used in
industrial applications to lower melting temperature and to help saving costs and energy.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-14







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 1 | Identification and Activities of the Company and Subsidiaries
(continued)
| | ------ | -------------------------------------------------------------------------



| | 1.4 | Description of the nature of operations and main activities,
continued
| | --- | ----------------------------------------------------------------------



Industrial Chemicals: Industrial
chemicals are products used as supplies for a number of production processes. SQM has operated in this market for more than 30
years producing sodium nitrate, potassium nitrate, boric acid and potassium chloride. Industrial nitrates have increased their
importance over the last few years due to their use as storage means for thermal energy at solar energy plants, which are widelyused
in countries such as Spain and the United States, which seek to decrease their CO2emissions.



Potassium: Potassium is one of the
three macronutrients that a plant needs to develop. Although potassium does not form part of a plant’s structure, it is essential
to the development of its basic functions, validating the quality of a crop, increasing post-crop life, improving the crop’s
flavor, vitamin content and physical appearance. Within this business line, SQM sells potassium chloride and potassium sulfate,
both extracted from the Salar de Atacama.



Other products and services: This
business line includes revenue from commodities, services, interests, royalties and dividends.



| | 1.5 | Other background
| | --- | ----------------



Staff



As of December 31, 2014 and December 31,
2013, staff was detailed as follows:



|                |  | 12/31/2014 |       |  | 12/31/2013 | 
|--------------- |  | ---------- | ----- |  | ---------- | 
|                |  |            |       |  |            | 
|Permanent staff |  |            | 4,800 |  |            | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-15







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 1 | Identification and Activities of the Company and subsidiaries
(continued)
| | ------ | -------------------------------------------------------------------------



| | 1.5 | Other background, continued
| | --- | ---------------------------



Main shareholders





The table below establishes certain information
about the beneficial property of Series A and Series B shares of SQM as of December 31, 2014 and December 31, 2013. In respect
to each shareholder which has interest of more than 5% of outstanding Series A or B shares. The information below is taken from
our records and reports controlled in the Central Securities Depository and reported to the SVS and the Chilean Stock Exchange,
whose main shareholders are as follows:







|Shareholder as of December 31, 2014                        |  | No. of Series A shares
    owned |            |  | % of Series A
    shares |  |       | No. of Series B shares
owned |  |  | % of Series B
    shares |  |  | % of total
    shares |      
|---------------------------------------------------------- |  | -------------------------------- | ---------- |  | ------------------------ |  | ----- | ---------------------------- |  |  | ------------------------ |  |  | --------------------- | -----
|The Bank of New York Mellon, ADRs                          |  |                                  | -          |  |                          |  | -     |                              |  |  | 61,894,725               |  |  |                       | 51.42
|Sociedad de Inversiones Pampa Calichera S.A.(*)            |  |                                  | 44,803,531 |  |                          |  | 31.37 | %                            |  |  | 7,007,688                |  |  |                       | 5.82 
|Inversiones El Boldo Limitada                              |  |                                  | 29,330,326 |  |                          |  | 20.54 | %                            |  |  | 17,963,546               |  |  |                       | 14.92
|Inversiones RAC Chile Limitada                             |  |                                  | 19,200,242 |  |                          |  | 13.44 | %                            |  |  | 2,202,773                |  |  |                       | 1.83 
|Potasios de Chile S.A.(*)                                  |  |                                  | 18,179,147 |  |                          |  | 12.73 | %                            |  |  | -                        |  |  |                       | -    
|Inversiones PCS Chile Limitada                             |  |                                  | 15,526,000 |  |                          |  | 10.87 | %                            |  |  | -                        |  |  |                       | -    
|Inversiones Global Mining (Chile) Limitada (*)             |  |                                  | 8,798,539  |  |                          |  | 6.16  | %                            |  |  | -                        |  |  |                       | -    
|Banco de Chile on behalf of non-resident third parties     |  |                                  | -          |  |                          |  | -     |                              |  |  | 5,795,818                |  |  |                       | 4.81 
|Banco Itau on behalf of investors                          |  |                                  | 20,950     |  |                          |  | 0.01  | %                            |  |  | 5,412,076                |  |  |                       | 4.50 
|Inversiones La Esperanza Limitada                          |  |                                  | 3,711,598  |  |                          |  | 2.60  | %                            |  |  | -                        |  |  |                       | -    
|                                                           |  |                                  |            |  |                          |  |       |                              |  |  |                          |  |  |                       |      
|(*) Total Pampa Group 29.94%                               |  |                                  |            |  |                          |  |       |                              |  | 
|                                                           |  |                                  |            |  |                          |  |       |                              |  |  |                          |  |  |                       |      
|Shareholder as of December 31, 2013                        |  | No. of Series A shares
    owned |            |  | % of Series A
    shares |  |       | No. of Series B shares
owned |  |  | % of Series B
    shares |  |  | % of total
    shares |      
|The Bank of New York Mellon, ADRs                          |  |                                  | -          |  |                          |  | -     |                              |  |  | 56,302,367               |  |  |                       | 46.77
|Sociedad de Inversiones Pampa Calichera S.A.(*)            |  |                                  | 44,758,830 |  |                          |  | 31.34 | %                            |  |  | 6,971,799                |  |  |                       | 5.79 
|Inversiones El Boldo Limitada                              |  |                                  | 29,225,196 |  |                          |  | 20.46 | %                            |  |  | 18,028,676               |  |  |                       | 14.98
|Inversiones RAC Chile Limitada                             |  |                                  | 19,200,242 |  |                          |  | 13.44 | %                            |  |  | 2,202,773                |  |  |                       | 1.83 
|Potasios de Chile S.A.(*)                                  |  |                                  | 18,179,147 |  |                          |  | 12.73 | %                            |  |  | -                        |  |  |                       | -    
|BTG Pactual Chile S.A. C de B                              |  |                                  | 15,593,709 |  |                          |  | 10.92 | %                            |  |  | 797,393                  |  |  |                       | 0.66 
|Inversiones Global Mining (Chile) Limitada (*)             |  |                                  | 8,798,539  |  |                          |  | 6.16  | %                            |  |  | -                        |  |  |                       | -    
|Banco Itau on behalf of investors                          |  |                                  | 20,950     |  |                          |  | 0.01  | %                            |  |  | 5,428,234                |  |  |                       | 4.51 
|Banco de Chile on behalf of non-resident third
    parties |  |                                  | -          |  |                          |  | -     |                              |  |  | 5,234,823                |  |  |                       | 4.35 
|Inversiones La Esperanza Limitada                          |  |                                  | 3,693,977  |  |                          |  | 2.59  | %                            |  |  | -                        |  |  |                       | -    



(*) Total Pampa Group 29.90%



On December 31, 2014 the total number of shareholders was 1,285.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-16







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 2 | Basis of presentation for the consolidated financial
statements
| | ------ | ---------------------------------------------------------------



| | 2.1 | Accounting period
| | --- | -----------------



These consolidated financial statements
cover the following periods:



| | - | Consolidated Statements of Financial Position as of December
31, 2014 and 2013.
| | - | -------------------------------------------------------------------------------

| | - | Consolidated Statements of Changes in Equity for the
years ended December 31, 2014 and 2013.
| | - | --------------------------------------------------------------------------------------------

| | - | Consolidated Statements of Comprehensive Income for the
years ended December 31, 2014 and 2013.
| | - | -----------------------------------------------------------------------------------------------

| | - | Consolidated Statements of Cash Flows for the years ended
December 31, 2014 and 2013.
| | - | -------------------------------------------------------------------------------------



| | 2.2 | Financial statements
| | --- | --------------------



The consolidated financial statements of
Sociedad Química y Minera de Chile S.A. and Subsidiaries, have been prepared in accordance with International Financial
Reporting Standards (hereinafter “IFRS”) and represent the full, explicit and unreserved application of the aforementioned
international standards issued by the International Accounting Standards Board (IASB).



These consolidated financial statements
reflect fairly the Company’s equity and financial position and the results of its operations, changes in the statement of
recognized revenue and expenses and cash flows, which have occurred during the periods then ended.



IFRS establish certain alternatives for
their application. Those applied by the Company and its subsidiaries are included in detail in this Note.



The accounting policies used in the preparation
of these consolidated annual and interim accounts comply with each IFRS in force at their date of presentation. Certain reclassifications
have been made for comparative purposes.



The consolidated financial statements of
SQM S.A. are for the year ended December 31, 2014, and have been prepared in accordance with International Financial Reporting
Standards (IFRS) issued by the International Accounting Standards Board (IASB) incorporated therein and with the interpretations
issued by the International Financial Reporting Standards Interpretations Committee (IFRIC).





As explained in note 28.4, on September
29, 2014 Law No. 20,780 was issued, which introduces modifications to the income tax system in Chile and other tax matters. On
October 17, 2014 the SVS issued Circular No. 856, which established that the effects of the change in the income tax rates on deferred
tax assets and liabilities must be recognized directly within “Retained earnings” instead of the income statement as
required by IAS 12.







In order to comply with IAS 12, these financial
statements are different to those presented to the SVS as the aforementioned effect has been recognized within the income statement.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-17







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 2 | Basis of presentation for the consolidated financial
statements (continued)
| | ------ | ---------------------------------------------------------------------------



| | 2.2 | Financial statements, continued
| | --- | -------------------------------





In addition to the adjustment related to
IAS 12, net income for the period ended December 31, 2014 includes provisions of approximately US$7 million corresponding to payments
made in 2015 to the Chilean Internal Revenue Service (Servicio de Impuestos Internosor “SII”) for expenses
that may not have qualified as tax expenses under the Chilean tax code. See Note 31.2. Such payments were made after March 3, 2015,
the date on which the Company filed its statutory consolidated financial statements filed with the SVS. Therefore, this provision
was not reflected in these statutory consolidated financial statements.



A reconciliation of such differences is
presented as follows:







|As of December 31, 2014                                         |  |                                           |           |   |                                           |  |           |            | 
|--------------------------------------------------------------- |  | ----------------------------------------- | --------- | - | ----------------------------------------- |  | --------- | ---------- | 
|Equity                                                          |  | Consolidated Financial Statements for SVS |           |   | Consolidated Financial Statements for SEC |  |           | Difference | 
|                                                                |  | Th US$                                    |           |   | Th US$                                    |  |           | Th US$     | 
|Parent ́s ownership                                              |  |                                           | 2,239,836 |   |                                           |  | 2,232,648 |            | 
|Share capital                                                   |  |                                           | 477,386   |   |                                           |  | 477,386   |            | 
|Other reserves                                                  |  |                                           | (13,162   | ) |                                           |  | (13,162   | )          | 
|                                                                |  |                                           |           |   |                                           |  |           |            | 
|Retained earnings                                               |  |                                           | 1,775,612 |   |                                           |  | 1,768,424 |            | 
|Retained earning for the last period                            |  |                                           | 1,479,231 |   |                                           |  | 1,531,535 |            | 
|Net Income (loss) for the period                                |  |                                           | 296,381   |   |                                           |  | 236,889   |            | 
|Total retained earnings                                         |  |                                           | 1,775,612 |   |                                           |  | 1,768,424 |            | 
|                                                                |  |                                           |           |   |                                           |  |           |            | 
|Non- controlling                                                |  |                                           | 59,867    |   |                                           |  | 59,867    |            | 
|Retained earnings                                               |  |                                           |           |   |                                           |  |           |            | 
|Retained earning for the last period                            |  |                                           | 55,621    |   |                                           |  | 55,621    |            | 
|Net Income (loss) for the period                                |  |                                           | 7,389     |   |                                           |  | 7,389     |            | 
|Other comprehensive income                                      |  |                                           | (132      | ) |                                           |  | (132      | )          | 
|Dividends                                                       |  |                                           | (5,280    | ) |                                           |  | (5,280    | )          | 
|Increase (decrease) due to changes in interests in subsidiaries |  |                                           | 2,269     |   |                                           |  | 2,269     |            | 
|Total retained earnings                                         |  |                                           | 59,867    |   |                                           |  | 59,867    |            | 
|                                                                |  |                                           |           |   |                                           |  |           |            | 
|Total Equity                                                    |  |                                           | 2,299,703 |   |                                           |  | 2,292,515 |            | 





Dividends paid and the mandatory minimum dividend provision
were determined in accordance with the standards set by the SVS.





|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-18







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 2 | Basis of presentation for the consolidated financial
statements (continued)
| | ------ | ---------------------------------------------------------------------------



| | 2.3 | Basis of measurement
| | --- | --------------------



The consolidated financial statements have
been prepared on the historical cost basis except for the following material items:



| | - | Inventories are recorded at the lower of cost and net realizable value.
| | - | -----------------------------------------------------------------------



| | - | Other current and non-current asset and financial liabilities at amortized cost.
| | - | --------------------------------------------------------------------------------



| | - | Financial derivatives at fair value; and
| | - | ----------------------------------------



| | - | Staff severance indemnities and pension commitments at actuarial value.
| | - | -----------------------------------------------------------------------



| | 2.4 | Accounting pronouncements
| | --- | -------------------------



New accounting pronouncements



a)          The following standards, interpretations
and amendments are mandatory for the first time for annual periods beginning on January 1, 2014:



|Standards and interpretations                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | Mandatory for annualperiods beginning on
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |                                         
|IFRIC 21 “Levies”-Issued in May 2013. Indicates the accounting treatment for a liability to pay a levy if such levy falls within the scope of IAS 37. It proposes that the liability be recognized when the obligation triggering event occurs and payment cannot be avoided. The obligation triggering event will be established in the related legislation and may occur at a given date or gradually over time. Early adoption is permitted.                                                       |  | 01/01/2014                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |                                         
|Amendments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | Mandatory forannual periodsbeginning on 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |                                         
|Amendment to IAS 32 “Financial Instruments: Presentation”- On the offsetting of financial assets and financial liabilities. Issued in December 2011. It clarifies the requirements for the offsetting of financial assets and financial liabilities in the Statement of financial position.  Early adoption is permitted.                                                                                                                                                                             |  | 01/01/2014                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |                                         
|Amendment to IAS 27 “Separate Financial Statements”, IFRS 10 “Consolidated Financial Statements” and IFRS 12 “Disclosure of Interests in Other Entities”-Issued in October 2012. The amendments include the definition of an investment entity and provide an exception for the consolidation of certain subsidiaries of entities meeting the definition for an “investment entity”. The amendments also introduce new disclosure requirements relative to investment entities in IFRS 12 and IAS 27. |  | 01/01/2014                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |                                         
|Amendment to IAS 36 “Impairment of assets”- Issued in May 2013. It amends the disclosure of the recoverable amount of non-financial assets aligning them to the requirements of IFRS 13. Early adoption is permitted.                                                                                                                                                                                                                                                                                 |  | 01/01/2014                              



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-19







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 2 | Basis of presentation of the consolidated financial
statements (continued)
| | ------ | --------------------------------------------------------------------------



| | 2.4 | Accounting pronouncements, continued
| | --- | ------------------------------------



|Amendments                                                                                                                                                                                                                                                                                                                                                                                                                              |  | Mandatory forannual periodsbeginning on
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |                                        
|Amendment to IAS 39 “Financial Instruments: Recognition and Measurement” – on the novation of derivatives and hedge accounting – Published in June 2013. It establishes certain conditions that must be met for the novation of derivatives to allow the continuance of hedge accounting; this in order to avoid novations that are the result of laws and regulations affecting the financial statements. Early adoption is permitted. |  | 01/01/2014                             



The adoption of the standards, amendments
and interpretations described above have no significant impact on the Company’s consolidated financial statements.



b)	New amendments, interpretations and
amendments issued, not effective for 2014, which the Company has not adopted early are as follows:



|Standards and interpretations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | Mandatory for annualperiods beginning on
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |                                         
|IFRS 9 “Financial Instruments”- Published in July 2014. The IASB has issued the full version of IFRS 9, which supersedes the application guidance in IAS 39. This final version includes requirements on the classification and measurement of financial assets and financial liabilities and an expected credit losses model that replaces the incurred loss impairment model used today. The final hedging part of IFRS 9 was issued in November 2013. Early adoption is permitted.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 01/01/2018                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |                                         
|IFRS 15 “Revenue from Contracts with Customers”-Published in May 2014. This standard establishes the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. For such purposes, the basic principle is that an entity will recognize revenue representing the transfer of goods or services to customers in an amount that reflects the consideration that the entity expects to receive in exchange for such goods or services. The application of this standard will replace IAS 11 Construction Contracts and IAS 18 Revenue, as well as IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfers of Assets from Customers and SIC 31 Revenue-Barter Transactions Involving Advertising Services. Early application is permitted. |  | 01/01/2017                              



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-20







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note
2 - 	Basis of presentation for the consolidated financial statements (continued)



| | 2.4 | Accounting pronouncements, continued
| | --- | ------------------------------------



|Amendments and improvements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | Mandatory forannual periodsbeginning on
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                                        
|Amendment of IAS 19 “Employee Benefits” on defined benefit plans – Issued in November 2013. This amendment applies to employee or third party contributions in defined benefit plans. Amendments are intended to simplify the accounting for contributions that are independent of the number of years of service of employees; e.g., contributions by employees that are calculated in accordance with a fixed percentage of the employee’s salary.                                                                                                                                                                                                                 |  | 01/07/2014                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                                        
|Amendment to IFRS 11 “Joint Arrangements” – on the acquisition of interest in a joint operation – Issued in May 2014. This amendment includes guidance relates to the method for accounting for an acquisition of an interest in a joint operation in which the activity constitutes a business, specifying the proper treatment for such acquisitions.                                                                                                                                                                                                                                                                                                              |  | 01/01/2016                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                                        
|Amendment to IAS 16 “Property, Plant and Equipment” and IAS 38 “Intangible Assets” on depreciation and amortization – Issued in May 2014. The amendments clarify that a depreciation method that is based on revenue that is generated by an activity that includes the use of an asset is not appropriate because revenue generated by such an activity in general reflects other factors other than the use of the economic benefits embedded in the asset.  Likewise, the amendments clarify that a revenue-based amortization method is inappropriate to measure the use of the economic benefits embedded in the intangible asset.                              |  | 01/01/2016                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                                        
|Amendments to IAS 16 “Property, Plant and Equipment” and IAS 41 “Agriculture” on bearer plants – Issued in June 2014. These amendments modify the financial information for “bearer plants”, such as vineyards, rubber wood tree and oil palm. The amendments define the concept of “bearer plant” and establish that they should be accounted for in the same way as property, plant and equipment because their operation is similar to that of manufacturing.  Consequently, the amendments include them within the scope of IAS 16, instead of IAS 41. The produce growing on bearer plants will remain within the scope of IAS 41. Early adoption is permitted. |  | 01/01/2016                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                                        
|Amendments to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures”- Issued in September 2014. This amendment addresses an inconsistency between the requirements of IFRS 10 and IAS 28 for the treatment of a sale or contribution of assets between an investor and its associate or joint venture. The main consequence of this amendment is the recognition of a full gain or loss when the transaction involves a business (whether or not in a subsidiary) and a partial gain or loss when the transaction involves assets that are not a business, even if such assets are in a subsidiary                    |  | 01/01/2016                             



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-21







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note
2	Basis of presentation of the consolidated financial statements (continued)



| | 2.4 | Accounting pronouncements, continued
| | --- | ------------------------------------





|Amendments and improvements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | Mandatory forannual periodsbeginning on
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ---------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                                        
|Amendment to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” - Issued in December 2014. The amendment clarifies the application of the exception from consolidation for investment entities and its subsidiaries. The amendment to IFRS 10 clarifies on the exception on consolidation available for entities in group structures that include investment entities. The amendment to IAS 28 allows an entity that is not an investment entity, but has an interest in an associated or joint venture that is an investment entity, an option of accounting policy in the application of the equity method. The entity may opt for maintaining measurement at fair value applied by the associate or joint venture that is an investment entity or, consolidating at investment entity level (associate or joint venture). Early adoption is permitted. |  | 01/01/2016                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                                        
|Amendment to IAS 1 “Presentation of Financial Statements”- Issued in December 2014. This amendment clarifies the application guidance of IAS 1 on materiality and aggregation, presentation of subtotals, structure of the financial statements and disclosure of accounting policies. The amendments are part of the IASB’s Initiative on Disclosures. Early adoption is permitted.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | 01/01/2016                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                                        
|Improvements to Information Financial
        Reporting Standards (2012)
        Issued in December 2013                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Mandatory forannual periodsbeginning on
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                                        
|IFRS 2 “Share-based Payment” – It clarifies the definition of “vesting conditions and “market conditions” and defines separately “performance conditions” and “service conditions.” Such an amendment should be applied prospectively on share-based payment transactions whose grant date is July 1, 2014 or after.  Early adoption is permitted.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | 07/01/2014                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                                        
|IFRS 3, "Business Combinations" – The standard is modified to clarify that the obligation to pay a contingent consideration that meets the definition of a financial instrument is classified as a financial liability or equity, on the basis of the definitions in IAS 32, "Financial Instruments: Presentation." The standard was additionally amended to clarify that all non-equity contingent consideration, both financial and non-financial, is measured at its fair value at each reporting date recognizing changes in fair value in profit or loss. Consequently, there are also changes to IFRS 9, IAS 37 and IAS 39. The amendment is applicable prospectively for business combinations the acquisition date of which is July 1, 2014 or after. Early adoption is permitted provided that amendments to IFRS 9 and IAS 37 also issued as part of the 2012 improvements plan are also applied.  |  |                                        



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-22







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note
2	Basis of presentation for the consolidated financial statements (continued)



| | 2.4 | Accounting pronouncements, continued
| | --- | ------------------------------------



|Improvements to International Financial Reporting Standards (2012)Issued in December 2013.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | Mandatory for annualperiods beginning on
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ----------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                                         
|IFRS 8 “Operating Segments”
– The standard is amended to include the requirement to disclose the judgments made by management in the aggregation of
operating segments. The standard was additionally modified to require a reconciliation of assets of the segments to assets of an
entity, when assets are reported by segment. Early adoption is permitted.
        
        IFRS 13 "Fair Value Measurement”
        – IASB has modified the basis for conclusions of IFRS 13 to clarify that it did not intend to eliminate the ability to measure
        short-term receivables and payables at nominal amounts if the effect of not adjusting is not significant.
        
        IAS 16 "Property,
        Plant and Equipment" and IAS 38, "Intangible Assets" – Both standards are amended to clarify the treatment
        of the gross carrying amount and accumulated depreciation when an entity uses the revaluation model. Early adoption is permitted.
        
        IAS 24 "Related party
        Disclosures" – The standard is modified to include, as related party, an entity that provides key management personnel
        services to the reporting entity of the Parent of the reporting entity (“the managing entity”). Early adoption is permitted. |  | 07/01/2014                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                                         
|Improvements to International Financial
        Reporting Standards (2013)
        Issued in December 2013                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | Mandatory forannual periodsbeginning on 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                                         
|IFRS 1 “First-time Adoption of International
        Financial Reporting Standards” – It clarifies that when a new version of a standard is not yet mandatory but is available
        for early adoption, a first-time adopter of IFRS may opt to apply the older or new version of the standard, provided that the same
        standard is applied to all periods presented.
        
        IFRS 3 “Business Combinations”
        – The standard is modified to clarify that IFRS 3 is not applicable to the accounting recognition of the formation of a new
        joint arrangement under IFRS 11. This amendment also clarifies that only the scope exemption is applied to the financial statements
        of the joint arrangement.
        
        IFRS 13 “Fair Value Measurement”
        – It clarifies that the portfolio exception in IFRS 13, that allows an entity to measure the fair value of a group of financial
        assets and financial liabilities as at their net amount, applies to all contracts (including non-financial contracts) within the
        scope of IAS 39 or IFRS 9. An entity must apply the amendments prospectively from the start of the first annual period in which
        IFRS 13 is applied.                             |  | 07/01/2014                              



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-23







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note
2	Basis of presentation for the consolidated financial statements (continued)



| | 2.4 | Accounting pronouncements, continued
| | --- | ------------------------------------



|Improvements to International Financial
        Reporting Standards (2014)
        Issued in September 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | Mandatory for annualperiods beginning on
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                         
|IFRS 7 "Financial Instruments: Disclosures-"This includes two amendments of IFRS 7. (1) Service contracts: If an entity transfers a financial asset to a third party in conditions that allow the transferor to derecognize the asset, IFRS 7 requires the disclosure of any type of continuing involvement that the entity may still have in the transferred assets. IFRS 7 provides guidance on what is understood as continuing involvement within this context. The amendment is prospective and can be applied retrospectively. This also affects IFRS 1 to provide the same option to the first-time adopters of IFRS. (2) Interim financial statements. The amendment clarifies that the additional disclosure required by amendments of IFRS 7 "Offsetting of financial assets and financial liabilities” is not specifically required for all interim periods unless required by IAS 34. Such amendment is retrospective. |  | 01/01/2016                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                         
|IAS 19 "Employee Benefits" – This amendment clarifies that in order to determine the discount rate for post-employment benefit obligations, the important aspect is the currency in which liabilities are denominated, not the country where they generate. The evaluation of whether a deep market exists for high-quality corporate bonds is based on corporate bonds in such currency, not in corporate bonds of a particular country. Likewise, where there is no deep market for high-quality corporate bonuses in such currency, government bonds in the related currency have to be used, Such amendment is retrospective but limited at the beginning of the first period presented.                                                                                                                                                                                                                                       |  |                                         



The Company's management believes that
the adoption of standards, amendments and interpretations described above are under evaluation and it is expected that they will
not have a significant impact on the Consolidated Financial Statements of the Company.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-24







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 2 | Basis of presentation for the consolidated financial
statements (continued)
| | ------ | ---------------------------------------------------------------------------



| | 2.5 | Basis of consolidation
| | --- | ----------------------



| | (a) | Subsidiaries
| | --- | ------------



Subsidiaries include all the entities over
which Sociedad Química y Minera de Chile S.A. has control, defined as when it is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those variable returns through its power over the entity.
Subsidiaries apply the same accounting policies of their Parent.



To account for acquisitions, the Company
uses the acquisition method. Under this method the acquisition cost is the fair value of assets delivered, equity securities issued
and liabilities incurred or assumed at the date of exchange. Identifiable assets acquired and liabilities and contingencies assumed
in a business combination are measured initially at fair value at the acquisition date. For each business combination, the Company
will measure non-controlling interest of the acquire either at fair value or as proportional share of net identifiable assets of
the acquiree.



Companies included in consolidation:



|               |  |                                                      |  |                |  |                         |  | Ownership interest |        
|-------------- |  | ---------------------------------------------------- |  | -------------- |  | ----------------------- |  | ------------------ | -------
|               |  |                                                      |  | Country of     |  |                         |  | 12/31/2014         |        
|TAX
    ID No. |  | Foreign subsidiaries                                 |  | origin         |  | Functional
    currency |  | Direct             |        
|Foreign        |  | Nitratos Naturais Do Chile Ltda.                     |  | Brazil         |  | US$                     |  |                    | 0.0000 
|Foreign        |  | Nitrate Corporation Of Chile Ltd.                    |  | United Kingdom |  | US$                     |  |                    | 0.0000 
|Foreign        |  | SQM North America Corp.                              |  | USA            |  | US$                     |  |                    | 40.0000
|Foreign        |  | SQM Europe N.V.                                      |  | Belgium        |  | US$                     |  |                    | 0.5800 
|Foreign        |  | Soquimich S.R.L. Argentina                           |  | Argentina      |  | US$                     |  |                    | 0.0000 
|Foreign        |  | Soquimich European Holding B.V.                      |  | Netherlands    |  | US$                     |  |                    | 0.0000 
|Foreign        |  | SQM Corporation N.V.                                 |  | Dutch Antilles |  | US$                     |  |                    | 0.0002 
|Foreign        |  | SQI Corporation N.V.                                 |  | Dutch Antilles |  | US$                     |  |                    | 0.0159 
|Foreign        |  | SQM Comercial De México S.A. de C.V.                 |  | Mexico         |  | US$                     |  |                    | 0.0013 
|Foreign        |  | North American Trading Company                       |  | USA            |  | US$                     |  |                    | 0.0000 
|Foreign        |  | Administración Y Servicios Santiago
    S.A. de C.V. |  | Mexico         |  | US$                     |  |                    | 0.0000 
|Foreign        |  | SQM Peru S.A.                                        |  | Peru           |  | US$                     |  |                    | 0.9800 
|Foreign        |  | SQM Ecuador S.A.                                     |  | Ecuador        |  | US$                     |  |                    | 0.0040 
|Foreign        |  | SQM Nitratos Mexico S.A. de C.V.                     |  | Mexico         |  | US$                     |  |                    | 0.0000 
|Foreign        |  | SQMC Holding Corporation L.L.P.                      |  | USA.           |  | US$                     |  |                    | 0.1000 
|Foreign        |  | SQM Investment Corporation N.V.                      |  | Dutch Antilles |  | US$                     |  |                    | 1.0000 
|Foreign        |  | SQM Brasil Limitada                                  |  | Brazil         |  | US$                     |  |                    | 1.0900 
|Foreign        |  | SQM France S.A.                                      |  | France         |  | US$                     |  |                    | 0.0000 
|Foreign        |  | SQM Japan Co. Ltd.                                   |  | Japan          |  | US$                     |  |                    | 1.0000 
|Foreign        |  | Royal Seed Trading Corporation A.V.V.                |  | Aruba          |  | US$                     |  |                    | 1.6700 
|Foreign        |  | SQM Oceania Pty Limited                              |  | Australia      |  | US$                     |  |                    | 0.0000 
|Foreign        |  | Rs Agro-Chemical Trading Corporation A.V.V.          |  | Aruba          |  | US$                     |  |                    | 98.3333
|Foreign        |  | SQM Indonesia S.A.                                   |  | Indonesia      |  | US$                     |  |                    | 0.0000 
|Foreign        |  | SQM Virginia L.L.C.                                  |  | USA            |  | US$                     |  |                    | 0.0000 
|Foreign        |  | SQM Italia SRL                                       |  | Italy          |  | US$                     |  |                    | 0.0000 
|Foreign        |  | Comercial Caimán Internacional S.A.                  |  | Panama         |  | US$                     |  |                    | 0.0000 
|Foreign        |  | SQM Africa Pty.                                      |  | South Africa   |  | US$                     |  |                    | 0.0000 
|Foreign        |  | SQM Lithium Specialties LLC                          |  | USA            |  | US$                     |  |                    | 0.0000 
|Foreign        |  | SQM Iberian S.A.                                     |  | Spain          |  | US$                     |  |                    | 0.0000 
|Foreign        |  | SQM Agro India Pvt.Ltd.                              |  | India          |  | US$                     |  |                    | 0.0000 
|Foreign        |  | SQM Beijing Commercial Co. Ltd.                      |  | China          |  | US$                     |  |                    | 0.0000 
|Foreign        |  | SQM Thailand Limited                                 |  | Thailand       |  | US$                     |  |                    | 0.0000 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-25









| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note
2	Basis of presentation for the consolidated financial statements (continued)



| | 2.5 | Basis of consolidation, continued
| | --- | ---------------------------------



|             |  |                                                                   |  |           |  |            |  | Ownership interest |         
|------------ |  | ----------------------------------------------------------------- |  | --------- |  | ---------- |  | ------------------ | --------
|             |  |                                                                   |  | Country   |  | Functional |  | 12/31/2014         |         
|TAX ID No.   |  | Domestic subsidiaries                                             |  | of origin |  | currency   |  | Direct             |         
|             |  |                                                                   |  |           |  |            |  |                    |         
|96.801.610-5 |  | Comercial Hydro  S.A.                                             |  | Chile     |  | US$        |  |                    | 0.0000  
|96.651.060-9 |  | SQM Potasio S.A.                                                  |  | Chile     |  | US$        |  |                    | 99.9999 
|96.592.190-7 |  | SQM Nitratos S.A.                                                 |  | Chile     |  | US$        |  |                    | 99.9999 
|96.592.180-K |  | Ajay SQM Chile S.A.                                               |  | Chile     |  | US$        |  |                    | 51.0000 
|86.630.200-6 |  | SQMC Internacional  Ltda.                                         |  | Chile     |  | Ch$        |  |                    | 0.0000  
|79.947.100-0 |  | SQM Industrial S.A.                                               |  | Chile     |  | US$        |  |                    | 99.0470 
|79.906.120-1 |  | Isapre Norte Grande Ltda.                                         |  | Chile     |  | Ch$        |  |                    | 1.0000  
|79.876.080-7 |  | Almacenes y Depósitos Ltda.                                       |  | Chile     |  | Ch$        |  |                    | 1.0000  
|79.770.780-5 |  | Servicios Integrales de Tránsitos y
    Transferencias S.A.       |  | Chile     |  | US$        |  |                    | 0.0003  
|79.768.170-9 |  | Soquimich Comercial S.A.                                          |  | Chile     |  | US$        |  |                    | 0.0000  
|79.626.800-K |  | SQM Salar S.A.                                                    |  | Chile     |  | US$        |  |                    | 18.1800 
|78.053.910-0 |  | Proinsa Ltda.                                                     |  | Chile     |  | Ch$        |  |                    | 0.0000  
|76.534.490-5 |  | Sociedad Prestadora de Servicios de Salud
    Cruz del Norte S.A. |  | Chile     |  | Ch$        |  |                    | 0.0000  
|76.425.380-9 |  | Exploraciones Mineras S.A.                                        |  | Chile     |  | US$        |  |                    | 0.2691  
|76.064.419-6 |  | Comercial Agrorama Ltda.                                          |  | Chile     |  | Ch$        |  |                    | 0.0000  
|76.145.229-0 |  | Agrorama S.A.                                                     |  | Chile     |  | Ch$        |  |                    | 0.0000  
|76.359.919-1 |  | Orcoma Estudios SPA                                               |  | Chile     |  | US$        |  |                    | 51.0000 
|76.360.575-2 |  | Orcoma SPA                                                        |  | Chile     |  | US$        |  |                    | 100.0000



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-26









| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 2 | Basis of presentation for the consolidated financial
statements (continued)
| | ------ | ---------------------------------------------------------------------------



| | 2.5 | Basis of consolidation, continued
| | --- | ---------------------------------



Subsidiaries are consolidated using the
line-by-line method, adding the items that represent assets, liabilities, revenues, and expenses of similar content, and eliminating
those related to intragroup transactions.



Profit or loss of subsidiaries acquired
or disposed of during the year are included in profit or loss accounts consolidated from the date control is transferred to the
Group, or up to the effective datecontrol is lost, as applicable.



Non-controlling interest represents the
equity of a subsidiary not directly or indirectly attributable to the Parent.



| | 2.6 | Significant accounting judgments, estimates and assumptions
| | --- | -----------------------------------------------------------



Management of Sociedad Química y
Minera de Chile S.A. and its subsidiaries is responsible for the information contained in these consolidated financial statements,
which expressly indicate that all the principles and criteria included in IFRSs, as issued by the International Accounting Standards
Board (IASB), have been applied in full.



In preparing the consolidated financial
statements of Sociedad Química y Minera de Chile S.A. and its subsidiaries, Management has made judgments and estimates
to quantify certain assets, liabilities, revenues, expenses and commitments included therein. Basically, these estimates refer
to:



| | - | The useful lives of property, plant and equipment, and intangible assets and their residual value;
| | - | --------------------------------------------------------------------------------------------------



| | - | Impairment losses of certain assets, including trade receivables;
| | - | -----------------------------------------------------------------



| | - | Assumptions used in calculating the actuarial amount of pension-related and severance indemnity
payment benefit commitments;
| | - | ----------------------------------------------------------------------------------------------------------------------------



| | - | Provisions for commitments assumed with third parties and contingent liabilities;
| | - | ---------------------------------------------------------------------------------



| | - | Provisions on the basis of technical studies that cover the different variables affecting products
in stock (density and moist, among others), and allowance for slow-moving spare-parts in stock;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | Future cost for closure of mining sites;
| | - | ----------------------------------------



| | - | The determination of the fair value of certain financial assets and derivative instruments;
| | - | -------------------------------------------------------------------------------------------



| | - | The determination and assignment of fair values in business combinations.
| | - | -------------------------------------------------------------------------



Despite the fact that these estimates have
been made on the basis of the best information available on the date of preparation of these consolidated financial statements,
certain events may occur in the future and oblige their amendment (upwards or downwards) over the next few years, which would be
made prospectively, recognizing the effects of the change in estimates in the related future consolidated financial statements.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-27







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant
                                         accounting policies
| | ------ | ------------------------------------------------------------------------



| | 3.1 | Classification of balances as current and non-current
| | --- | -----------------------------------------------------



In the attached consolidated statement
of financial position, balances are classified in consideration of their remaining recovery (maturity) dates; i.e., those maturing
on a date equal to or lower than twelve months are classified as current and those with maturity dates exceeding the aforementioned
period are classified as non-current.



The exception to the foregoing relates
to deferred taxes, which are classified as non-current, regardless of the maturity they have.



| | 3.2 | Functional and presentation currency
| | --- | ------------------------------------



The Company’s consolidated financial
statements are presented in United States dollars (“U.S. dollars” or “US$”), which is the Company’s
functional and presentation currency and is the currency of the main economic environment in which it operates.



Consequently, the term foreign currency
is defined as any currency other than the U.S. dollar.



The consolidated financial statements are
presented in thousands of United States dollars without decimals.



| | 3.3 | Foreign currency translation
| | --- | ----------------------------



| | (a) | Domestic entities:
| | --- | ------------------



Assets and liabilities denominated in Chilean
pesos and other currencies other than the functional currency (U.S. dollar) as of December 31, 2014 and December 31, 2013 have
been translated to U.S. dollars at the exchange rates prevailing at those dates. The corresponding Chilean pesos were converted
at Ch$606.75 per US$1.00 as of December 31, 2014, and Ch$524.61 per US$1.00 as of December 31, 2013.



The values of the UF (a Chilean peso-denominated,
inflation-indexed monetary unit) used to convert the UF-denominated assets and liabilities as of December 31, 2014 amounted to
Ch$24,627.1 (US$40.59), and as of December 31, 2013 amounted to Ch$23,309.56 (US$44.43).



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-28







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant accounting policies (continued)
| | ------ | -------------------------------------------



| | 3.3 | Foreign currency translation, continued
| | --- | ---------------------------------------



| | (b) | Foreign entities:
| | --- | -----------------



The conversion of the financial statements
of foreign companies with functional currency other than U.S. dollars is performed as follows:



| | - | Assets and liabilities using the exchange rate prevailing on the closing date of the consolidated
financial statements.
| | - | -----------------------------------------------------------------------------------------------------------------------



| | - | Statement of income account items using the average exchange rate for the year.
| | - | -------------------------------------------------------------------------------



| | - | Equity accounts are stated at the historical exchange rate prevailing at the acquisition date.
| | - | ----------------------------------------------------------------------------------------------



Foreign currency translation differences
which arise from the conversion of financial statements are recorded in the account “Foreign currency translation differences,"
within equity.



The exchange rates used to translate the
monetary assets and liabilities expressed in foreign currency at the closing date of each period in respect to the U.S. dollar
are detailed as follows:



|                   |  | 12/31/2014 |        |  | 12/31/2013 | 
|------------------ |  | ---------- | ------ |  | ---------- | 
|                   |  | US$        |        |  | US$        | 
|                   |  |            |        |  |            | 
|Brazilian real     |  |            | 2.65   |  |            | 
|New Peruvian sol   |  |            | 2.97   |  |            | 
|Argentine peso     |  |            | 8.45   |  |            | 
|Japanese yen       |  |            | 120.55 |  |            | 
|Euro               |  |            | 0.82   |  |            | 
|Mexican peso       |  |            | 14.74  |  |            | 
|Australian dollar  |  |            | 0.82   |  |            | 
|Pound Sterling     |  |            | 0.64   |  |            | 
|South African rand |  |            | 11.55  |  |            | 
|Ecuadorian dollar  |  |            | 1.00   |  |            | 
|Chilean peso       |  |            | 606.75 |  |            | 
|UF                 |  |            | 40.59  |  |            | 



| | (c) | Transactions and balances
| | --- | -------------------------



Non-monetary transactions in currencies
other than the functional currency (U.S. dollar) foreign currencies are translated to the respective functional currencies of Group
entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies
at the reporting date are retranslated to the functional currency at the exchange rate at that date. All differences are recorded
in the statement of income except for all monetary items that provide effective hedge for a net investment in a foreign operation.
These items are recognized in other comprehensive income on the disposal of the investment; at the time they are recognized in
the statement of income. Charges and credits attributable to foreign currency translation differences on those hedge monetary items
are also recognized in other comprehensive income.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-29







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant accounting policies (continued)
| | ------ | -------------------------------------------



| | 3.3 | Foreign currency translation, continued
| | --- | ---------------------------------------



Non-monetary assets and liabilities that
are measured at historical cost in a foreign currency are retranslated to the functional currency at the historical exchange rate
of the transaction. Non-monetary items that are measured based on fair value in a foreign currency are translated using the exchange
rate at the date on which the fair value is determined.



| | (d) | Group entities
| | --- | --------------



The revenue, expenses, assets and liabilities
of all entities that have a functional currency other than the presentation currency are converted to the presentation currency
as follows:



| | - | Assets and liabilities are converted at the closing exchange
rate prevailing on the reporting date.
| | - | ---------------------------------------------------------------------------------------------------



| | - | Revenues and expenses of each profit or loss account
are converted at monthly average exchange rates.
| | - | -----------------------------------------------------------------------------------------------------



| | - | All resulting foreign currency translation gains and
losses are recognized as a separate component in translation reserves.
| | - | ---------------------------------------------------------------------------------------------------------------------------



In consolidation, foreign currency differences
arising from the translation of a net investment in foreign entities are recorded in equity (other reserves). At the date of disposal,
such foreign currency translation differences are recognized in the statement of income as part of the gain or loss from the sale.



| | 3.4 | Subsidiaries
| | --- | ------------



SQM S.A. establishes, as basis, the control
exercised in subsidiaries, to determine their share in the consolidated financial statements. Control consists of the Company’s
ability to exercise power in the subsidiary, exposure, or right, to variable performance from its share in the investee and the
ability to use its power on the investee to have an influence on the amount of the investor’s performance.



The Company prepares the consolidated financial
statements using consistent accounting policies for the entire Group, the consolidation of a subsidiary commences when the Company
has control over the subsidiary and stops when control ceases.



| | 3.5 | Consolidated statement of cash flows
| | --- | ------------------------------------



Cash equivalents consist of highly-liquid
short-term investments that are easily convertible in known amounts of cash. They are subject to insignificant risk of changes
in their value and with original maturities of three months or less.



For purposes of the statement of cash flows,
cash and cash equivalents comprise cash and cash equivalents as defined above.



The statement of cash flows includes movements
in cash ocurring during the year, determined using the direct method.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-30









| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note
3	Significant accounting policies (continued)



| | 3.6 | Financial assets
| | --- | ----------------



Management determines the classification
of its financial assets at the time of initial recognition, (on the basis of the business model) for the management of financial
assets and the characteristics of contractual cash flows from the financial assets.



The Company assesses, at each reporting
date, whether there is objective evidence that an asset or group of assets is impaired. An asset or group of financial assets is
impaired if and only if there is evidence of impairment as a result of one or more events occurring after the initial recognition
of the asset or group of assets. For the recognition of impairment, the loss event has to have an impact on the estimate of future
cash flows from the asset or groups of financial assets.



| | 3.7 | Financial liabilities
| | --- | ---------------------



Management determines the classification
of its financial liabilities at the time of initial recognition. As established in IAS 39, financial liabilities at the time of
initial recognition are measured at fair value, less transaction costs that may have been incurred and are directly attributable
to the issue of the financial liability. Subsequently, these are measured at amortized cost using the effective interest method.
For financial liabilities that have been initially recognized at fair value through profit or loss, these will be measured subsequently
at fair value.



| | 3.8 | Financial instruments at fair value through profit or
loss
| | --- | ----------------------------------------------------------



Management will irrevocably determine,
at the time of initial recognition, the designation of a financial instrument at fair value through profit or loss. By doing so,
this eliminates and/or significantly reduces measurement or recognition inconsistency that would otherwise haven arisen from the
measurement of assets or liabilities or from the recognition of gains and losses from them on different bases.



| | 3.9 | Financial instrument offsetting
| | --- | -------------------------------



The Company offsets an asset and liability
if and only if it presently has a legally enforceable right of setting off the amounts recognized and has the intent of settling
for the net amount of realizing the asset and settling the liability simultaneously.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-31









| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note
3	Significant accounting policies (continued)



| | 3.10 | Reclassification of financial instruments
| | ---- | -----------------------------------------



At the time when the Company changes its
business model for managing financial assets, it will reclassify the financial assets affected by the new business model.



For financial liabilities these could not
be reclassified.



| | 3.11 | Derivative and hedging financial instruments
| | ---- | --------------------------------------------



Derivatives are recognized initially at
fair value as of the date on which the derivatives contract is signed and, subsequently, are assessed at fair value. The method
for recognizing the resulting gain or loss depends on whether the derivative has been designated as an accounting hedge instrument
and, if so, it depends on the type of hedging, which may be as follows:



| | (a) | Fair value hedge of assets and liabilities recognized
(fair value hedges);
| | --- | --------------------------------------------------------------------------



| | (b) | Hedging of a single risk associated with an asset or
liability recognized or a highly probable forecast transaction (cash flow hedge).
| | --- | --------------------------------------------------------------------------------------------------------------------------------------



At the beginning of the transaction, the
Company documents the relationship existing between hedging instruments and those items hedged, as well as their objectives for
risk management purposes and the strategy to conduct different hedging operations.



The Company also documents its evaluation
both at the beginning and at the end of each period if derivatives used in hedging transactions are highly effective to offset
changes in the fair value or in cash flows of hedged items.



The fair value of derivative instruments
used for hedging purposes is shown in Note 10.3 (hedging assets and liabilities). Changes in the cash flow hedge reserve are classified
as a non-current asset or liability if the remaining expiration period of the hedged item is higher than 12 months, and as a current
asset or liability if the remaining expiration period of the entry is lower than 12 months.



Investing derivatives are classified as a current asset or liability,
and the change in their fair value is recognized directly in profit or loss.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-32







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant accounting policies (continued)
| | ------ | -------------------------------------------



| | 3.11 | Derivative and hedging financial instruments, continued
| | ---- | -------------------------------------------------------



| | (a) | Fair value hedge
| | --- | ----------------



The change in the fair value of a derivative
is recognized with a debit or credit to profit or loss, as applicable. The change in the fair value of the hedged entry attributable
to hedged risk is recognized as part of the carrying value of the hedged entry and is also recognized with a debit or credit to
profit or loss.



For fair value hedges related to items
recorded at amortized cost, the adjustment of the fair value is amortized against profit or loss during the period, through maturity.
Any adjustment to the carrying value of a hedged financial instrument, for which the effective rate is used, is amortized with
a debit or credit to profit or loss at its fair value, attributable to the risk being covered.



If the hedged entry is derecognized, the
fair value not amortized is immediately recognized with a debit or credit to profit or loss.



| | (b) | Cash flow hedges
| | --- | ----------------



The effective portion of gains or losses
from the hedge instrument is initially recognized with a debit or credit to other comprehensive income, whereas any ineffective
portion is immediately recognized with a debit or credit to profit or loss, as applicable.



Amounts taken to equity are transferred
to profit or loss when the hedged transaction affects profit or loss, as when the hedged interest income or expense is recognized
when a projected sale occurs. When the hedged entry is the cost of a non-financial asset or liability, amounts taken to other reserves
are transferred to the initial carrying value of the non-financial asset or liability.



Should the expected firm transaction or
commitment no longer be expected to occur, the amounts previously recognized in equity are transferred to profit or loss. If a
hedge instrument expires, is sold, finished, or exercised without any replacement, or if a rollover is performed or if its designation
as hedging is revoked, the amounts previously recognized in other reserves are maintained in equity until the expected firm transaction
or commitment occurs.



| | 3.12 | Derecognition of financial instruments
| | ---- | --------------------------------------



In accordance with IAS 39, the Company
derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights
to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial
asset are transferred; and the control of the financial assets has not been retained.



The Company derecognizes a financial liability
when its contractual obligations or a part of these are discharged, paying to the creditor or its legally extinguished entity the
primary responsibility for the liability.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-33







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant accounting policies (continued)
| | ------ | -------------------------------------------



| | 3.13 | Derivative financial instruments
| | ---- | --------------------------------



The Company maintains derivative financial
instruments to hedge its exposure to foreign currencies. Derivative financial instruments are recognized initially at fair value;
attributable transaction costs are recognized when incurred. Subsequent to initial recognition, changes in fair value of such derivatives
are recognized in profit or loss as part of gains and losses.



The Company permanently assesses the existence
of embedded derivatives, both in its contracts and financial instruments. As of December 31, 2014 and 2013, there are no embedded
derivatives.



| | 3.14 | Fair value measurements
| | ---- | -----------------------



From the initial recognition, the Company
measures its assets and liabilities at fair value plus or minus transaction costs incurred that are directly attributable to the
acquisition of a financial asset or issuance of a financial liability.



| | 3.15 | Leases
| | ---- | ------



| | (a) | Lease - Finance lease
| | --- | ---------------------



Leases are classified as finance leases
when the Company holds substantially all the risks and rewards derived from the ownership of the asset. Finance leases are capitalized
at the beginning of the lease, at the lower of the fair value of the leased asset or the present value of minimum lease payments.



Each lease payment is distributed between
the liability and the interest expenses to obtain ongoing interest on the pending balance of debt. The respective lease obligations,
net of interest expense, are included in other non-current liabilities. The interest element of finance cost is debited in the
consolidated statement of income during the lease period so that a regular ongoing interest rate is obtained on the remaining balance
of the liability for each year.



| | (b) | Lease – Operating lease
| | --- | -----------------------



Leases in which the lesser maintains a
significant part of the risks and rewards derived from the ownership are classified as operating leases. Operating lease payments
(net of any incentive received from the lesser) are debited to the statement of income or capitalized (as applicable) on a straight-line
basis over the lease period.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-34







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant accounting policies (continued)
| | ------ | -------------------------------------------



| | 3.16 | Deferred acquisition costs from insurance contracts
| | ---- | ---------------------------------------------------



Acquisition costs from insurance contracts
are classified as prepayments and correspond to insurance contracts in force, recognized using the straight-line method and on
an accrual basis, and are recognized under other non-financial assets.



These are expensed considering the proportional
period of time they cover, regardless of the related payment dates.



| | 3.17 | Trade and other receivables
| | ---- | ---------------------------



Trade and other receivables relate to non-derivative
financial assets with fixed and determinable payments and are not quoted in any active market. These arise from sales operations
involving the products and/or services, of which the Company commercializes directly to its customers.



These assets are initially recognized at
their fair value and subsequently at amortized cost according to the effective interest rate method, less a provision for impairment
loss. An allowance for impairment loss is established for trade receivables when there is objective evidence that the Company will
not be able to collect all the amounts which are owed to it, according to the original terms of receivables.



Implicit interest in installment sales
is recognized as interest income when interest is accrued over the term of the operation.



| | 3.18 | Inventory measurement
| | ---- | ---------------------



The Company states inventories for the
lower of cost and net realizable value. The cost price of finished products and products in progress includes the direct cost of
materials and, when applicable, labor costs, indirect costs incurred to transform raw materials into finished products, and general
expenses incurred in carrying inventories to their current location and conditions. The method used to determine the cost of inventories
is weighted average cost.



Commercial discounts, rebates obtained,
and other similar entries are deducted in the determination of the acquisition price.



The net realizable value represents the
estimate of the sales price, less all finishing estimated costs and costs which will be incurred in commercialization, sales, and
distribution processes.



The Company conducts an evaluation of the
net realizable value of inventories at the end of each year, recording an estimate with a charge to income when these are overstated.
When a situation arises whereby the circumstances, which previously caused the rebate to cease to exist, or when there is clear
evidence of an increase in the net realizable value due to a change in the economic circumstances or prices of main raw materials,
the estimate made previously is modified.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-35







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant accounting policies (continued)
| | ------ | -------------------------------------------



| | 3.18 | Inventory measurement, continued
| | ---- | --------------------------------



The valuation of obsolete, impaired or
slow-moving products relates to their net estimated, net realizable value.



Provisions on the Company's inventories
have been made based on a technical study which covers the different variables which affect products in stock (density and humidity,
among others).



Raw materials, supplies and materials are
recorded at the lower of acquisition cost or market value. Acquisition cost is calculated according to the average price method.



| | 3.19 | Investments in associates and joint ventures
| | ---- | --------------------------------------------



Interests in companies on which joint control
is exercised (joint venture) or where an entity has significant influence (associates) are recognized using the equity method of
accounting. Significant influence is presumed to exist when interest greater than 20% is held in the capital of an investee.



Under this method, the investment is recognized
in the statement of financial position at cost plus changes, subsequent to the acquisition, and considering the proportional share
in the equity of the associate. For such purposes, the interest percentage in the ownership of the associate is used. The associated
goodwill acquired is included in the carrying amount of the investee and is not amortized. The debit or credit to profit or loss
reflects the proportional share in the profit or loss of the associate.



Unrealized gains for transactions with
affiliates or associates are eliminated considering the interest percentage the Company has on such entities. Unrealized losses
are also eliminated, except if the transaction provides evidence of impairment loss of the transferred asset.



Changes in the equity of associates are
recognized considering the proportional amounts with a charge or credit to “Other reserves” and classified considering
their origin.



Reporting dates of the associate, the Company
and related policies are similar for equivalent transactions and events under similar circumstances.



In the event that the significant influence
is lost or the investment is sold or is held as available for sale, the equity method is discontinued, suspending the recognition
of proportional share of profit or loss.



If the resulting amount according to the
equity method is negative, the share of profit or loss is reflected at zero value in the consolidated financial statements, unless
a commitment exists by the Company to reinstate the Company’s equity position, in which case the related provision for risks
and expenses is recorded.



Dividends received by these companies are
recorded by reducing the equity value, and the proportional share of profit or loss recognized in conformity with the share of
equity are included in the consolidated profit or loss accounts in the caption “Equity share of profit (loss) of associates
and joint ventures that are accounted for using the equity method of accounting”.





|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-36







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant accounting policies (continued)
| | ------ | -------------------------------------------



| | 3.20 | Transactions with non-controlling interests
| | ---- | -------------------------------------------



Non-controlling interests are recorded
in the consolidated statement of financial position within equity separate from equity attributable to the owners of the Parent.



| | 3.21 | Related party transactions
| | ---- | --------------------------



Transactions between the Company and its
subsidiaries are part of the Company’s normal operations within its scope of business activities. Conditions for such transactions
are those normally effective for those types of operations with regard to terms and market prices. Also, these transactions have
been eliminated in consolidation. Expiration conditions for each case vary by virtue of the originating transaction.



| | 3.22 | Property, plant and equipment
| | ---- | -----------------------------



Tangible property, plant and equipment
assets are stated at acquisition cost, net of the related accumulated depreciation, amortization and impairment losses that they
might have experienced.



In addition to the price paid for the acquisition
of tangible property, plant and equipment, the Company has considered the following concepts as part of the acquisition cost, as
applicable:



1.	     Accrued interest expenses during
the construction period which are directly attributable to the acquisition, construction or production of qualifying assets, which
are those that require a substantial period prior to being ready for use. The interest rate used is that related to the project’s
specific financing or, should this not exist, the average financing rate of the investor company.



2.	     The future costs that the Company
will have to experience, related to the closure of its facilities at the end of their useful life, are included at the present
value of disbursements expected to be required to settle the obligation.



Construction-in-progress is transferred
to property, plant and equipment in operation once the assets are available for use and the related depreciation and amortization
begins on that date.



Extension, modernization or improvement
costs that represent an increase in productivity, ability or efficiency or an extension of the useful lives of property, plant
and equipment are capitalized as a higher cost of the related assets. All the remaining maintenance, preservation and repair expenses
are charged to expense as incurred.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-37







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant accounting policies (continued)
| | ------ | -------------------------------------------



| | 3.22 | Property, plant and equipment, continued
| | ---- | ----------------------------------------



The replacement of full assets, which increase
the asset’s useful life or its economic capacity, are recorded as a higher value of property, plant and equipment with the
related derecognition of replaced or renewed elements.



Based on the impairment analysis conducted
by the Company’s management, it has been considered that the carrying value of assets does not exceed therecoverableamount.



Gains or losses which are generated from
the sale or disposal of property, plant and equipment are recognized as income (or loss) in the period, and calculated as the difference
between the sales proceeds and its net carrying value.



Costs incurred from daily maintenance of
property, plant and equipment are expensed in the period incurred.Depreciation of property, plant and equipment



Property, plant and equipment are depreciated
through the straight-line distribution of cost over the estimated technical useful life of the asset which is the period in which
the Company expects to use the asset. When components of one item of property, plant and equipment have different useful lives,
they are recorded as separate assets. Useful lives are reviewed on an annual basis.



The useful lives used for the depreciation
and amortization of assets included in property, plant and equipment are presented below.



|Types of property, plant and equipment |  | Minimum life or rate |  | Maximum life or rate
|-------------------------------------- |  | -------------------- |  | --------------------
|                                       |  |                      |  |                     
|Buildings                              |  | 3                    |  | 60                  
|Plant and equipment                    |  | 3                    |  | 35                  
|Information technology equipment       |  | 3                    |  | 10                  
|Fixtures and fittings                  |  | 3                    |  | 35                  
|Motor vehicles                         |  | 5                    |  | 10                  
|Other property, plant and equipment    |  | 2                    |  | 30                  



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-38









| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant accounting policies (continued)
| | ------ | -------------------------------------------



| | 3.23 | Goodwill
| | ---- | --------



Goodwill acquired represents the excess
in acquisition cost on the fair value of the Company's ownership of the net identifiable assets of the subsidiary on the acquisition
date. Goodwill acquired related to the acquisition of subsidiaries is included in goodwill, which is subject to impairment tests.
The Company has not identified any indicator of impairment. Nonetheless, this valuation is carried out on yearly basis every time
consolidated financial statements are issued, and is stated at cost less accumulated impairment losses. Gains and losses related
to the sale of an entity include the carrying value of goodwill related to the entity sold.



This intangible asset is assigned to cash-generating
units with the purpose of testing impairment losses. It is allocated based on cash-generating units expected to obtain benefits
from the business combination from which the aforementioned goodwill acquired arose.



| | 3.24 | Intangible assets other than goodwill
| | ---- | -------------------------------------



Intangible assets mainly relate to water
rights, trademarks, and rights of way related to electric lines, development expenses, and computer software licenses.



| | (a) | Water rights
| | --- | ------------



Water rights acquired by the Company relate
to water from natural sources and are recorded at acquisition cost. Given that these assets represent legal rights granted in perpetuity
to the Company, they are not amortized, but are subject to annual impairment tests.



| | (b) | Right of way for electric lines
| | --- | -------------------------------



As required for the operation of industrial
plants, the Company has paid rights of way in order to install wires for the different electric lines in third party land. These
rights are presented under intangible assets. Amounts paid are capitalized at the date of the agreement and charged to income,
according to the life of the right of way.



| | (c) | Computer software
| | --- | -----------------



Licenses for IT programs acquired are capitalized
based on costs that have been incurred to acquire them and prepare them to use the specific program. These costs are amortized
over their estimated useful lives.



Expenses related to the development or
maintenance of IT programs are recognized as an expense as and when incurred. Costs directly related to the production of unique
and identifiable IT programs controlled by the Group, and which will probably generate economic benefits that are higher than costs
during more than a year, are recognized as intangible assets. Direct costs include expenses incurred for employees who develop
IT programs and an adequate percentage of general expenses.



The costs of development for IT programs
recognized as assets are amortized over their estimated useful lives.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-39







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant accounting policies (continued)
| | ------ | -------------------------------------------



| | 3.24 | Intangible assets other than goodwill, continued
| | ---- | ------------------------------------------------



| | (d) | Mining property and concession rights
| | --- | -------------------------------------



The Company holds mining property and concession
rights from the Chilean Government. Property rights are usually obtained with no initial cost (other than the payment of mining
patents and minor recording expenses) and upon obtaining rights on these concessions, these are retained by the Company while annual
patents are paid. Such patents, which are paid annually, are recorded as prepaid assets and amortized over the following twelve
months. Amounts attributable to mining concessions acquired from third parties that are not from the Chilean Government are recorded
at acquisition cost within intangible assets.



No impairment of intangible assets exists
as of December 31, 2014 and December 31, 2013.



| | 3.25 | Research and development expenses
| | ---- | ---------------------------------



Research and development expenses are charged
to profit or loss in the period in which the disbursement was made.



| | 3.26 | Prospecting expenses
| | ---- | --------------------



The Company has mining property and concession
rights from the Chilean Government and acquired from third parties other than the Chilean Government, destined to the exploitation
of caliche ore and saltpeter deposits and also the exploration of this type of deposits.



Upon obtaining these rights, the Company
initially records disbursements directly associated with the exploration and evaluation of deposits (associated with small deposits
with trading feasibility) as asset at cost. Such disbursements include the following concepts:



| | - | Disbursements for geological reconnaissance evaluation
| | - | ------------------------------------------------------



| | - | Disbursements for drilling
| | - | --------------------------



| | - | Disbursements for drilling work and sampling
| | - | --------------------------------------------



| | - | Disbursements for activities related to technical assessment and trading feasibility of drilling
work
| | - | -----------------------------------------------------------------------------------------------------



| | - | And any disbursement directly related to specific projects where its objective is finding mining
resources.
| | - | -----------------------------------------------------------------------------------------------------------



Subsequently, the Company distinguishes
exploration and evaluation projects according to the economic feasibility of the mineral extracted in the area or exploration,
among those where it is probable that future economic benefits will be generated(profitable projects) and those projects for which
it is not probable that economic benefit will flow to the Company in the future (i.e., when the mine site has low ore grade and
its exploitation is not economically profitable).



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-40







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant accounting policies (continued)
| | ------ | -------------------------------------------



| | 3.26 | Prospecting expenses, continued
| | ---- | -------------------------------



If technical studies determine that the
ore grade is not economically suitable for exploitation, the asset is directly expensed. Otherwise, it is held in the caption “other
non-current assets”, reclassifying the portion related to the area to be exploited in the year in the caption inventories
and such amount is amortized as production cost on the basis of estimated tons to be extracted.



The technical reasons for this classification
correspond to the fact that this is an identifiable non-monetary asset that is owned to be used in our production of our processes
as the main raw material.For this reason and because our disbursements correspond to proven reserves with a trading feasibility
and used as main raw material in our production processes, these are presented as inventories that will be exploited within the
commercial year and the remainder as development costs for small deposits and prospecting expenses in the caption “other
non-current assets”.



| | 3.27 | Impairment of non-financial assets
| | ---- | ----------------------------------



Assets subject to depreciation and amortization
are subject to impairment testing, provided that an event or change in the circumstances indicates that the amounts in the accounting
records may not be recoverable. An impairment loss is recognized for the excess of the book value of the asset over its recoverable
amount.



The recoverable amount of an asset is the
higher between the fair value of an asset or cash generating unit (“CGU”) less costs of disposal. For purpose of assessing
impairment, assets are grouped at the lowest levels for which they are largely independent cash inflows (“CGU”).



When the carrying value of an asset exceeds
its recoverable amount, the asset is considered an impaired asset and is reduced to its net recoverable amount.



In evaluating value in use, estimated future
cash flows are discounted using a discount rate before taxes which reflects current market evaluation on the time value of money
and specific asset risks.



An appropriate valuation model is used
to determine the fair value less costs of disposal. These calculations are confirmed by valuation multiples, quoted share prices
for subsidiaries quoted publicly or other observable fair value indicators.



Impairment losses from continuing operations
are recognized with a debit to profit or loss in the categories of expenses associated with the impaired asset function.



As of December 31, 2014, the Company was unaware of any indication
of impairment with respect to its assets.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-41







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant accounting policies (continued)
| | ------ | -------------------------------------------



| | 3.27 | Impairment of non-financial assets, continued
| | ---- | ---------------------------------------------



For assets other than acquired goodwill,
an annual evaluation i of previously recognized impairments is conducted to determine whether the conditions which caused the previous
impairments have been reversed or ceased to exist. The recoverable amount is estimated if such indicators exist. An impairment
loss previously recognized is reversed only if there have been changes in estimates used to determine the asset’s recoverable
amount from the last time in which an impairment loss was recognized. If this is the case, the carrying value of the asset is increased
to its recoverable amount. This increased amount cannot exceed the carrying value that would have been determined net of depreciation
if an asset impairment loss had not been recognized in prior years. This reversal is recognized with a credit to profit or loss.



| | 3.28 | Minimun dividend
| | ---- | ----------------



As required by the Shareholders’
Corporations Act, unless decided otherwise by the unanimous vote by the shareholders of subscribed and paid shares, a public company
must distribute dividends as agreed by the shareholders at the General Shareholders’ Meeting held each year with a minimum
of 30% of its profit for the year ended December 31, 2014, except when the Company records unabsorbed losses from prior years.



However, the Company defines as policy
the distribution of 50% of its profit for the year ended December 31, 2014.



| | 3.29 | Earnings per share
| | ---- | ------------------



The net basic earnings per share amounts
are calculated by dividing profit for the year attributable to ordinary owners of the parent by the weighted average number of
ordinary shares outstanding during the year.



The Company has not conducted any type
of operation of potential dilutive effect that assumes diluted earnings per share other than the basic earnings per share.



| | 3.30 | Trade and other payables
| | ---- | ------------------------



Trade and other payables are measured at fair value plus all
costs associated with the transaction. Subsequently, these are carried at amortized cost using the effective interest rate method.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-42







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant accounting policies (continued)
| | ------ | -------------------------------------------



| | 3.31 | Interest-bearing borrowings
| | ---- | ---------------------------



At initial recognition, interest-bearing
borrowings are measured at fair value. Subsequently, they are measured at amortized cost using the effective interest rate method.
Amortized cost is calculated considering any premium or discount from the acquisition and includes costs of transactions which
are an integral part of the effective interest rate.



These are recorded as non-current when
their expiration period exceeds twelve months and as current when the term is lower than such term. Interest expense is calculated
in the year in which they are accrued following a financial criterion.



| | 3.32 | Other provisions
| | ---- | ----------------



Provisions are recognized when:



| | - | The Company has a present obligation as the result of
a past event.
| | - | -------------------------------------------------------------------



| | - | It is more likely than not that certain resources must
be used, including benefits, to settle the obligation.
| | - | -------------------------------------------------------------------------------------------------------------



| | - | A reliable estimate can be made of the amount of the
obligation.
| | - | ----------------------------------------------------------------



In the event that the provision or a portion
of it is reimbursed, the reimbursement is recognized as a separate asset solely if there is certainty of income.



In the consolidated statement of income,
the expense for any provision is presented net of any reimbursement.



Should the effect of the time value of
money be significant, provisions are discounted using a discount rate before tax that reflects the liability’s specific risks.
When a discount rate is used, the increase in the provision over time is recognized as a finance cost.



The Company’s policy is maintaining
provisions to cover risks and expenses based on a better estimate to deal with possible or certain and quantifiable responsibilities
from current litigation, compensations or obligations, pending expenses for which the amount has not yet been determined, collaterals
and other similar guarantees for which the Company is responsible. These are recorded at the time the responsibility or the obligation
that determines the compensation or payment is generated.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-43







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant accounting policies (continued)
| | ------ | -------------------------------------------



| | 3.33 | Obligations related to employee termination benefits
and pension commitments
| | ---- | ----------------------------------------------------------------------------



Obligations with the Company’s employees
are in accordance with that established in the collective bargaining agreements in force, formalized through collective employment
agreements and individual employment contracts, except for the United States that is regulated in accordance with employment plans
in force up to 2002.



These obligations are valued using actuarial
calculations, according to the projected unit credit method which considers such assumptions as the mortality rate, employee turnover,
interest rates, retirement dates, effects related to increases in employees’ salaries, as well as the effects on variations
in services derived from variations in the inflation rate. This, considering criteria in force contained in the revised IAS 19.



Actuarial gains and losses that may be
generated by variations in defined, pre-established obligations are directly recorded in “other comprehensive income, Actuarial
gains/losses from defined benefit plans.



Actuarial losses and gains have their origin
in departures between the estimate and the actual behavior of actuarial assumptions or in the reformulation of established actuarial
assumptions.



The discount rate used by the Company for
calculating the obligation was 5.5% for the periods ended December 31, 2014 and December 31, 2013.



The Company’s subsidiary SQM North
America has established pension plans for its retired employees that are calculated by measuring the projected obligation using
a net salary progressive rate net of adjustments for inflation, mortality and turnover assumptions, deducting the resulting amounts
at present value using a 6.5% interest rate for 2014 and 2013. The net balance of this obligation is presented under the non-current
provisions for employee benefits.



| | 3.34 | Compensation plans
| | ---- | ------------------



Compensation plans implemented through
benefits in share-based payments settled in cash, which have been provided, are recognized in the financial statements at their
fair value, and classified in provision for employee benefits ('non-current') in accordance with International Financial Reporting
Standards No. 2 "Share-based Payments.” Changes in the fair value of options granted are recognized with a charge to
compensation expenses on a straight-line basis during the period between the date on which these options are granted and the vesting
date (see Note 16).



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-44







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant accounting policies (continued)
| | ------ | -------------------------------------------



| | 3.35 | Revenue recognition
| | ---- | -------------------



Revenue includes the fair value of consideration
received or receivable for the sale of goods and services during performance of the Company's activities. Revenue is presented
net of value added tax, estimated returns, rebates and discounts and after the elimination of sales among subsidiaries.



Revenue is recognized when its amount can
be reliably measured. It is probable that the future economic benefits will flow to the entity and the specific conditions for
each type of activity related revenue are complied with, as follows:



| | (a) | Sale of goods
| | --- | -------------



The sale of goods is recognized when the
Company has delivered products to the customer, and there is no obligation pending compliance that could affect the acceptance
of products by the customer. The delivery does not occur until products have been shipped to the customer or confirmed as received
by customers. When the related risks of obsolescence and loss have been transferred to the customer and the customer has accepted
products in accordance with the conditions established in the sale, when the acceptance period has ended, or when there is objective
evidence that those criteria required for acceptance have been met.



Sales are recognized in consideration of
the price set in the sales agreement, net of volume discounts and estimated returns at the date of the sale. Volume discounts are
evaluated in consideration of annual foreseen purchases and in accordance with the criteria defined in agreements.



| | (b) | Sale of services
| | --- | ----------------



Revenue associated with the rendering of
services is recognized considering the degree of completion of the service as of the date of presentation of the consolidated classified
statement of financial position, provided that the result from the transaction can be estimated reliably.



| | (c) | Interest income
| | --- | ---------------



Interest income is recognized when interest
is accrued in consideration of the principal pending payment using the effective interest rate method.



| | (d) | Income from dividends
| | --- | ---------------------



Income from dividends is recognized when
the right to receive the payment is established.



| | 3.36 | Finance income and finance costs
| | ---- | --------------------------------



Finance income is mainly composed of interest
income in financial instruments such as term deposits and mutual fund deposits. Interest income is recognized in profit or loss
at amortized cost, using the effective interest rate method.



Finance costs are mainly composed of interest
on bank borrowing expenses, interest on bonds issued and interest capitalized for borrowing costs for the acquisition, construction
or production or qualifying assets.



Borrowing costs and bonds issued are recognized in profit or
loss using the effective interest rate method.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-45







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant accounting policies (continued)
| | ------ | -------------------------------------------



| | 3.36 | Finance income and finance costs, continued
| | ---- | -------------------------------------------



For finance costs accrued during the construction
period that are directly attributable to the acquisition, construction or production of qualifying assets, the effective interest
rate related to the project’s specific financing is used. If none exist, the average financing rate of the subsidiary that
makes the investment is utilized.



Borrowing and financing costs that are
directly attributable to the acquisition, construction or production of an asset are capitalized as part of that asset’s
cost.



| | 3.37 | Income tax and deferred taxes
| | ---- | -----------------------------



Corporate income tax for the year is determined
as the sum of current taxes from the different consolidated companies.



Current taxes are based on the application
of the various types of taxes attributable to taxable income for the year.



Differences between the book value of assets
and liabilities and their tax basis generate the balance of deferred tax assets or liabilities, which are calculated using the
tax rates expected to be applicable when the assets and liabilities are realized.



In conformity with current Chilean tax
regulations, the provision for corporate income tax and taxes on mining activity is recognized on an accrual basis, presenting
the net balances of accumulated monthly tax provisional payments for the fiscal period and associated credits. The balances of
these accounts are presented in current income taxes recoverable or current taxes payable, as applicable.



Tax on companies and variations in deferred
tax assets or liabilities that are not the result of business combinations are recorded in statement of income accounts or equity
accounts in the consolidated statement of financial position, considering the origin of the gains or losses which have generated
them.



At each reporting period, the carrying
amount of deferred tax assets has been reviewed and reduced to the extent there will not be sufficient taxable income to allow
the recovery of all or a portion of the deferred tax assets. Likewise, as of the date of the consolidated financial statements,
deferred tax assets that are not recognized were evaluated and not recognized as it was more likely than not that future taxable
income will allow for recovery of the deferred tax asset.



With respect to deductible temporary differences
associated with investments in subsidiaries, associated companies and interest in joint ventures, deferred tax assets are recognized
solely provided that it is more likely than not that the temporary differences will be reversed in the near future and that there
will be taxable income with which they may be used.



The deferred income tax related to entries directly recognized
in equity is recognized with an effect on equity and not with an effect on profit or loss.



Deferred tax assets and liabilities are offset if there is a
legally receivable right of offsetting tax assets against tax liabilities and the deferred tax is related to the same tax entity
and authority.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-46







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 3 | Significant accounting policies (continued)
| | ------ | -------------------------------------------



| | 3.38 | Segment reporting
| | ---- | -----------------



IFRS 8 requires that companies adopt a
“management approach” to disclose information on the operations generated by its operating segments. In general, this
is the information that management uses internally for the evaluation of segment performance and making the decision on how to
allocate resources for this purpose.



An operating segment is a group of assets
and operations responsible for providing products or services subject to risks and performance different from those of other business
segments. A geographical segment is responsible for providing products or services in a given economic environment subject to risks
and performance different from those of other segments that operate in other economic environments.



For assets and liabilities the allocation
to each segment is not possible given that these are associated with more than one segment, except for depreciation, amortization
and impairment of assets, which are directly allocated to the applicable segments, in accordance with the criteria established
in the costing process for product inventories.



The following operating segments have been
identified by the Company:



| | - | Specialty plant nutrients
| | - | -------------------------



| | - | Industrial chemicals
| | - | --------------------



| | - | Iodine and derivatives
| | - | ----------------------



| | - | Lithium and derivatives
| | - | -----------------------



| | - | Potassium
| | - | ---------



| | - | Other products and services
| | - | ---------------------------



| | 3.39 | Environment
| | ---- | -----------



In general, the Company follows the criteria
of considering amounts used in environmental protection and improvement as environmental expenses. However, the cost of facilities,
machinery and equipment used for the same purpose are considered property, plant and equipment, as the case may be.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-47







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 4 | Financial risk management
| | ------ | -------------------------



| | 4.1 | Financial risk management policy
| | --- | --------------------------------



The Company’s financial risk management
policy is focused on safeguarding the stability and sustainability of Sociedad Química y Minera de Chile S.A. and its subsidiaries
with regard to all such relevant financial uncertainty components.



The Company’s operations are subject
to certain financial risk factors that may affect its financial position or results. The most significant risk exposures are market
risk, liquidity risk, currency risk, doubtful accounts risk, and interest rate risk, among others.



Potentially, additional known or unknown
risks may exist, of which we currently deem not to be significant, which could also affect the Company’s business operations,
its business, financial position, or profit or loss.



The financial risk management structure
includes identifying, determining, analyzing, quantifying, measuring and controlling these events. Management and, in particular,
Finance Management, is responsible for constantly assessing the financial risk. The Company uses derivatives to hedge a significant
portion of those risks.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-48







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 4 | Financial risk management, continued
| | ------ | ------------------------------------



| | 4.2 | Risk factors
| | --- | ------------



| | 4.2.1 | Market risk
| | ----- | -----------



Market risk refers to the uncertainty associated
with fluctuations in market variables affecting the Company’s assets and liabilities, including:



| | a) | Country risk: The economic situation of the countries
where the Company operates may affect its financial position. For example, sales conducted in emerging markets expose SQM to risks
related to economic conditions and trends in those countries. In addition, inventories may also be affected by the economic scenario
in such countries and/or the global economy, among other probable economic impacts.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) | Price risk: The Company’s product prices are affected by the fluctuations in international
prices of fertilizers and chemicals, as well as changes in productive capacities or market demand, all of which might affect the
Company’s business, financial position and results of operations.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | c) | Commodity price risk: The Company is exposed to changes in commodity prices and energy which
may have an impact on its production costs that may cause unstable results.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------



As of to-date, the SQM Group
incurs an annual expenditure of approximately US$140 million associated with fuel, gas and equivalents, including approximately
US$54 million related to direct electrical supply consumption. A change of 10% in the prices of energy required for the Company’s
operations may involve costs of approximately US$14 million in short-term movements.



As stated in the Company’s
annual report, the markets in which the Company operates are unpredictable, exposed to significant fluctuations in supply and demand,
and price volatility. Additionally, the supply of certain fertilizers or chemicals, including certain products which the Company
trades, vary mainly depending on the production of top producers and their respective business strategies. Accordingly, the Company
cannot forecast with certainty changes in demand, responses from competitors or fluctuations in the final price of its products.
These factors can lead to significant impacts on the Company’s product sales volumes, financial position and share price.



| | d) | Quality standards:In the markets in which we operate, customers might impose quality standards
on our products and/or governments could enact more stringent standards for the distribution and/or use of our products. Consequently,
we might not be able to sell our products if we are not able to meet those new standards. In addition, our production costs might
increase to meet such new standards. Not being able to sell our products in one or more markets or to key customers might significantly
affect our business, financial position or the results of our operations.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-49







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 4 | Financial risk management, continued
| | ------ | ------------------------------------



| | 4.2.2 | Doubtful accounts risk
| | ----- | ----------------------



A contraction of the global economy and
the potentially adverse effects in the financial position of our customers may extend the receivables recovery period for SQM,
increasing its exposure to doubtful account risk. While measures have been taken to minimize such risk, the global economic situation
may result in losses that might have a material adverse effect on the Company’s business, financial position or results of
operations.



To mitigate these risks, SQM actively controls
debt collection and has established certain safeguards which include loan insurance, letters of credit, and prepayments for a portion
of receivables.



| | 4.2.3 | Currency risk
| | ----- | -------------



As a result of its influence on price level
determination as well as its relationship with cost of sales, and since a significant portion of the Company’s business transactions
are performed in that foreign currency, the functional currency of SQM is the United States dollar. However, the global business
activities of the Company expose it to the foreign exchange fluctuations of several currencies with respect to the value of the
U.S. dollar. Accordingly, SQM has entered into hedge contracts to mitigate the exposure generated by its main mismatches (assets,
net of liabilities) in currencies other than the U.S. dollar against the foreign exchange fluctuation. These contracts are periodically
updated depending on the mismatch amount to be hedged in such currencies. Occasionally, and subject to the Board of Directors’
approval, in the short-term the Company insures cash flows from certain specific items in currencies other than the U.S. dollar.



A significant portion of the Company’s
costs, particularly payroll, is denominated in Chilean pesos. Accordingly, an increase or decrease in the exchange rate against
the U.S. dollar would affect the Company’s profit for the period. Approximately US$ 470 million of the Company’s costs
are denominated in Chilean pesos. A significant portion of the effect of such obligations on the statement of financial position
is hedged by derivative instrument transactions on the balance mismatch in such currency.



As of December 31, 2013, the Company recorded
derivative instruments classified as currency and interest rate hedges associated with all the bonds payable, denominated both
in Chilean pesos and UF, with a fair value of US$23.6 million in favor of SQM. As of December 31, 2014, this amounts to US$37 million
against SQM.



As of December 31, 2014, the Chilean peso
to U.S. dollar exchange rate was Ch$606.75 per US$1.00 (Ch$ 524.61 per US$ 1.00 as of December 31, 2013).



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-50









| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 4 | Financial
                                         risk management, continued
| | ------ | -----------------------------------------------------------------------------



| | 4.2.4 | Interest
                                         rate risk
| | ----- | -----------------------------------------------------------



Interest rate fluctuations,
primarily due to the uncertain future behavior of markets, may have a material impact on the financial results of the Company.



The Company has
current and non-current debts valued at LIBOR, plus a spread. The Company is partially exposed to fluctuations in such rate, as
SQM currently holds hedging derivative instruments to hedge a portion of its liabilities subject to the LIBOR rate fluctuations.



As of December
31, 2014, approximately 14% of the Company’s financial liabilities are measured at LIBOR. Accordingly, any significant increase
in this rate may have an impact on the Company’s financial position. A 100 basic point variation in this rate may trigger
variations in financial expenses of close to US$ 0.6 million. However, this effect is significantly counterbalanced by the returns
of the Company’s investments that are also strongly related to LIBOR.



In addition, as
of December 31, 2014, the Company's financial liabilities are mainly concentrated in the long-term and approximately 9% have maturities
of less than 12 months, decreasing in the process the exposure to changes in interest rates.



| | 4.2.5 | Liquidity
                                         risk
| | ----- | -------------------------------------------------------



Liquidity risk
relates to the funds needed to comply with payment obligations. The Company’s objective is to maintain financial flexibility
through a comfortable balance between fund requirements and cash flows from regular business operations, bank borrowings, bonds,
short term investments, and marketable securities, among others.



The Company has
an important capital expense program which is subject to change over time.



On the other hand,
world financial markets go through periods of contraction and expansion that are unforeseeable in the long-term and may affect
SQM’s access to financial resources. Such factors may have a material adverse impact on the Company’s business, financial
position and results of operations.



SQM constantly
monitors the matching of its obligations with its investments, taking due care of maturities of both, from a conservative perspective,
as part of this financial risk management strategy. As of December 31, 2014, the Company had unused, available revolving credit
facilities with banks, for a total of approximately US$546 million.



The position in
other cash and cash equivalents generated by the Company are invested in highly liquid mutual funds with an AAA risk rating.



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 



F-51







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 4 | Financial
                                         risk management, continued
| | ------ | -----------------------------------------------------------------------------



| | 4.3 | Risk measurement
| | --- | ----------------



The Company has
methods to measure the effectiveness and efficiency of financial risk hedging strategies, both prospectively and retrospectively.
These methods are consistent with the risk management profile of the Group.



| | Note 5 | Changes
                                         in accounting estimates and policies (consistent presentation)
| | ------ | ---------------------------------------------------------------------------------------------------------------



| | 5.1 | Changes in
                                         accounting estimates
| | --- | ------------------------------------------------------------------------



There are no changes
in accounting estimates as of the closing date of the consolidated financial statements.



| | 5.2 | Changes in
                                         accounting policies
| | --- | -----------------------------------------------------------------------



As of December
31, 2014, the Company’s consolidated financial statements present no changes in accounting policies or estimates compared
to the prior period.



The consolidated
statements of financial position as of December 31, 2014 and December 31, 2013, and statements of the comprehensive income, changes
in equity and cash flows for the periods ended December 31, 2014 and 2013, have been prepared in accordance with International
Financial Reporting Standards (IFRS) except for that indicated in Note 2.2. and the principles and criteria have been applied
consistently.



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 



F-52







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 6 | Background
                                         of companies included in consolidation
| | ------ | ------------------------------------------------------------------------------------------



| | 6.1 | Parent’s
                                         stand-alone assets and liabilities
| | --- | ------------------------------------------------------------------------------------



|            |  | 12/31/2014 |            |   | 12/31/2013 | 
|----------- |  | ---------- | ---------- | - | ---------- | 
|            |  | ThUS$      |            |   | ThUS$      | 
|            |  |            |            |   |            | 
|Assets      |  |            | 4,305,107  |   |            | 
|Liabilities |  |            | (2,072,459 | ) |            | 
|Equity      |  |            | 2,232,648  |   |            | 



| | 6.2 | Parent
                                         entity
| | --- | ------------------------------------------------------



As provided in
the Company’s by-laws, no shareholder can concentrate more than 32% of the Company’s voting right shares and therefore
there is no controlling entity.



| | 6.3 | Joint
                                         arrangements of controlling interest
| | --- | -----------------------------------------------------------------------------------



Sociedad de Inversiones
Pampa Calichera S.A., Potasios de Chile S.A., and Inversiones Global Mining (Chile) Limitada, collectively the Pampa Group, are
the owners of a number of shares that are equivalent to 29.94% as of December 31, 2014 of the current total amount of shares issued,
subscribed and fully-paid of the Company. In addition, Kowa Company Ltd., Inversiones La Esperanza (Chile) Limitada, Kochi S.A.
and La Esperanza Delaware Corporation, collectively the Kowa Group, are the owners of a number of shares equivalent to 2.10% of
the total amount of issued, subscribed and fully-paid shares of SQM S.A..



The Pampa Group
and the Kowa Group have informed SQM S.A., the Chilean SVS and the relevant stock exchanges in Chile and abroad that they are
not and have never been related parties between them. In addition, this is regardless of the fact that both Groups on December
21, 2006 have entered into a Joint Action Agreement (JAA) related to those shares. Consequently, the Pampa Group, by itself, does
not concentrate more than 32% of the voting right capital of SQM S.A., and the Kowa Group does not concentrate by itself more
than 32% of the voting right capital of SQM S.A..



Likewise, the Joint
Action Agreement has not transformed the Pampa and Kowa Groups into related parties between them. The Joint Action Agreement has
only transformed the current controller of SQM S.A., composed of the Pampa Group, and the Kowa Group into related parties of SQM
S.A..



Detail of effective concentration



|Tax ID No.            |  | Name                                         |  | Ownership
interest % |      
|--------------------- |  | -------------------------------------------- |  | -------------------- | -----
|96.511.530-7          |  | Sociedad de Inversiones Pampa Calichera S.A. |  |                      | 19.69
|96.863.960-9          |  | Inversiones Global Mining (Chile) Limitada   |  |                      | 3.34 
|76.165.311-5          |  | Potasios de Chile S.A.                       |  |                      | 6.91 
|Total
    Pampa Group |  |                                              |  |                      | 29.94
|                      |  |                                              |  |                      |      
|79.798.650-k          |  | Inversiones la Esperanza (Chile)  Ltda.      |  |                      | 1.41 
|59.046.730-8          |  | Kowa Co Ltd.                                 |  |                      | 0.30 
|96.518.570-4          |  | Kochi S.A.                                   |  |                      | 0.30 
|59.023.690-k          |  | La Esperanza Delaware Corporation            |  |                      | 0.09 
|Total
    Kowa Group  |  |                                              |  |                      | 2.10 



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 



F-53







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 6 | Background
                                         of companies included in consolidation (continued)
| | ------ | ------------------------------------------------------------------------------------------------------



| | 6.4 | General information
                                         on consolidated subsidiaries
| | --- | -----------------------------------------------------------------------------------------



As of December
31, 2014 and December 31, 2013, the general information of the companies on which the Company exercises control and significant
influence is as follows:



|                                                                  |  |              |  |                                                                                                           |  | Country of     |  | Functional |  | Ownership interest |         
|----------------------------------------------------------------- |  | ------------ |  | --------------------------------------------------------------------------------------------------------- |  | -------------- |  | ---------- |  | ------------------ | --------
|Subsidiary                                                        |  | Tax ID       |  | Address                                                                                                   |  | incorporation  |  | currency   |  | Direct             |         
|                                                                  |  |              |  |                                                                                                           |  |                |  |            |  |                    |         
|SQM
    Nitratos S.A.                                             |  | 96.592.190-7 |  | El
    Trovador 4285 Las Condes                                                                           |  | Chile          |  | US$        |  |                    | 99.9999 
|Proinsa
    Ltda.                                                 |  | 78.053.910-0 |  | El Trovador
    4285 Las Condes                                                                           |  | Chile          |  | Ch$        |  |                    | -       
|SQMC
    Internacional Ltda.                                      |  | 86.630.200-6 |  | El Trovador
    4285 Las Condes                                                                           |  | Chile          |  | Ch$        |  |                    | -       
|SQM
    Potasio S.A.                                              |  | 96.651.060-9 |  | El Trovador
    4285 Las Condes                                                                           |  | Chile          |  | US$        |  |                    | 99.9999 
|Serv.
    Integrales de Tránsito y Transf. S.A.                   |  | 79.770.780-5 |  | Arturo Prat
    1060, Tocopilla                                                                           |  | Chile          |  | US$        |  |                    | 0.0003  
|Isapre
    Norte Grande Ltda.                                     |  | 79.906.120-1 |  | Anibal Pinto
    3228, Antofagasta                                                                        |  | Chile          |  | Ch$        |  |                    | 1.0000  
|Ajay
    SQM Chile S.A.                                           |  | 96.592.180-K |  | Av. Pdte.
    Eduardo Frei 4900, Santiago                                                                 |  | Chile          |  | US$        |  |                    | 51.0000 
|Almacenes
    y Depósitos Ltda.                                   |  | 79.876.080-7 |  | El Trovador
    4285 Las Condes                                                                           |  | Chile          |  | Ch$        |  |                    | 1.0000  
|SQM
    Salar S.A.                                                |  | 79.626.800-K |  | El Trovador
    4285 Las Condes                                                                           |  | Chile          |  | US$        |  |                    | 18.1800 
|SQM
    Industrial S.A.                                           |  | 79.947.100-0 |  | El Trovador
    4285 Las Condes                                                                           |  | Chile          |  | US$        |  |                    | 99.0470 
|Exploraciones
    Mineras S.A.                                    |  | 76.425.380-9 |  | Los Militares
    4290 Las Condes                                                                         |  | Chile          |  | US$        |  |                    | 0.2691  
|Sociedad
    Prestadora de Servicios de Salud Cruz del Norte S.A. |  | 76.534.490-5 |  | Anibal Pinto
    3228, Antofagasta                                                                        |  | Chile          |  | Ch$        |  |                    | -       
|Soquimich
    Comercial S.A.                                      |  | 79.768.170-9 |  | El Trovador
    4285 Las Condes                                                                           |  | Chile          |  | US$        |  |                    | -       
|Comercial
    Agrorama Ltda.                                      |  | 76.064.419-6 |  | El Trovador
    4285 Las Condes                                                                           |  | Chile          |  | Ch$        |  |                    | -       
|Comercial
    Hydro S.A.                                          |  | 96.801.610-5 |  | El Trovador
    4285 Las Condes                                                                           |  | Chile          |  | Ch$        |  |                    | -       
|Agrorama
    S.A.                                                 |  | 76.145.229-0 |  | El Trovador
    4285 Las Condes                                                                           |  | Chile          |  | Ch$        |  |                    | -       
|Orcoma
    Estudios SPA                                           |  | 76.359.919-1 |  | Apoquindo
    3721 Of.131 Las Condes                                                                      |  | Chile          |  | US$        |  |                    | 51.0000 
|Orcoma
    SPA                                                    |  | 76.360.575-2 |  | Apoquindo
    3721 Of.131 Las Condes                                                                      |  | Chile          |  | US$        |  |                    | 100.0000
|SQM
    North America Corp.                                       |  | Foreign      |  | 2727 Paces
    Ferry Road, Building Two, Suite 1425, Atlanta, GA                                          |  | United States  |  | US$        |  |                    | 40.0000 
|RS
    Agro Chemical Trading Corporation A.V.V.                   |  | Foreign      |  | Caya Ernesto
    O. Petronia 17, Orangestad                                                               |  | Aruba          |  | US$        |  |                    | 98.3333 
|Nitratos
    Naturais do Chile Ltda.                              |  | Foreign      |  | Al. Tocantis
    75, 6° Andar, Conunto 608 Edif. West Gate, Alphaville Barureri, CEP 06455-020, Sao Paulo |  | Brazil         |  | US$        |  |                    | -       
|Nitrate
    Corporation of Chile Ltd.                             |  | Foreign      |  | 1 More London
    Place London SE1 2AF                                                                    |  | United Kingdom |  | US$        |  |                    | -       
|SQM
    Corporation N.V.                                          |  | Foreign      |  | Pietermaai
    123, P.O. Box 897, Willemstad, Curacao                                                     |  | Dutch Antilles |  | US$        |  |                    | 0.0002  
|SQM
    Peru S.A.                                                 |  | Foreign      |  | Avenida
    Camino Real N° 348 of. 702, San Isidro, Lima                                                  |  | Peru           |  | US$        |  |                    | 0.9800  
|SQM
    Ecuador S.A.                                              |  | Foreign      |  | Av. José
    Orrantia y Av. Juan Tanca Marengo Edificio Executive Center Piso 2 Oficina 211               |  | Ecuador        |  | US$        |  |                    | 0.0040  
|SQM
    Brasil Ltda.                                              |  | Foreign      |  | Al. Tocantis
    75, 6° Andar, Conunto 608 Edif. West Gate, Alphaville Barureri, CEP 06455-020, Sao Paulo |  | Brazil         |  | US$        |  |                    | 1.0900  



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 



F-54







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 6 | Background
                                         of companies included in consolidation (continued)
| | ------ | ------------------------------------------------------------------------------------------------------



| | 6.4 | General information on consolidated subsidiaries,
continued
| | --- | -----------------------------------------------------------



|                                                     |  |         |  |                                                                                                       |  | Country of         |  | Functional |  | Ownership interest |       
|---------------------------------------------------- |  | ------- |  | ----------------------------------------------------------------------------------------------------- |  | ------------------ |  | ---------- |  | ------------------ | ------
|Subsidiary                                           |  | Tax ID  |  | Address                                                                                               |  | incorporation      |  | currency   |  | Direct             |       
|                                                     |  |         |  |                                                                                                       |  |                    |  |            |  |                    |       
|SQI
    Corporation N.V.                             |  | Foreign |  | Pietermaai
    123, P.O. Box 897, Willemstad, Curacao                                                 |  | Dutch
    Antilles |  | US$        |  |                    | 0.0159
|SQMC Holding
    Corporation L.L.P.                  |  | Foreign |  | 2727 Paces
    Ferry Road, Building Two, Suite 1425, Atlanta                                          |  | United States      |  | US$        |  |                    | 0.1000
|SQM Japan
    Co. Ltd.                               |  | Foreign |  | From
    1st Bldg 207, 5-3-10 Minami- Aoyama, Minato-ku, Tokyo                                        |  | Japan              |  | US$        |  |                    | 1.0000
|SQM Europe
    N.V.                                  |  | Foreign |  | Houtdok-Noordkaai
    25a B-2030 Amberes Bélgica                                                      |  | Belgium            |  | US$        |  |                    | 0.5800
|SQM Italia
    SRL                                   |  | Foreign |  | Via A. Meucci,
    5 500 15 Grassina Firenze                                                          |  | Italy              |  | US$        |  |                    | -     
|SQM Indonesia
    S.A.                               |  | Foreign |  | Perumahan
    Bumi Dirgantara Permai, Jl Suryadarma Blok Aw No 15 Rt 01/09 17436 Jatisari Pondok Gede |  | Indonesia          |  | US$        |  |                    | -     
|North American
    Trading Company                   |  | Foreign |  | 2727 Paces
    Ferry Road, Building Two, Suite 1425, Atlanta, GA                                      |  | United States      |  | US$        |  |                    | -     
|SQM Virginia
    LLC                                 |  | Foreign |  | 2727 Paces
    Ferry Road, Building Two, Suite 1425, Atlanta, GA                                      |  | United States      |  | US$        |  |                    | -     
|SQM Comercial
    de México S.A. de C.V.             |  | Foreign |  | Av. Moctezuma
    144-4  Ciudad del Sol. CP 45050, Zapopan, Jalisco México                            |  | Mexico             |  | US$        |  |                    | 0.0010
|SQM Investment
    Corporation N.V.                  |  | Foreign |  | Pietermaai
    123, P.O. Box 897, Willemstad, Curacao                                                 |  | Dutch Antilles     |  | US$        |  |                    | 1.0000
|Royal Seed
    Trading Corporation A.V.V.            |  | Foreign |  | Caya Ernesto
    O. Petronia 17, Orangestad                                                           |  | Aruba              |  | US$        |  |                    | 1.6700
|SQM Lithium
    Specialties LLP                      |  | Foreign |  | 2727 Paces
    Ferry Road, Building Two, Suite 1425, Atlanta, GA                                      |  | United States      |  | US$        |  |                    | -     
|Soquimich
    SRL Argentina                          |  | Foreign |  | Espejo 65
    Oficina 6 – 5500 Mendoza                                                                |  | Argentina          |  | US$        |  |                    | -     
|Comercial
    Caimán Internacional S.A.              |  | Foreign |  | Edificio
    Plaza Bancomer  Calle 50                                                                 |  | Panama             |  | US$        |  |                    | -     
|SQM France
    S.A.                                  |  | Foreign |  | ZAC des
    Pommiers  27930   FAUVILLE                                                                |  | France             |  | US$        |  |                    | -     
|Administración
    y Servicios Santiago S.A. de C.V. |  | Foreign |  | Av. Moctezuma
    144-4  Ciudad del Sol. CP 45050, Zapopan, Jalisco México                            |  | Mexico             |  | US$        |  |                    | -     
|SQM Nitratos
    México S.A. de C.V.                 |  | Foreign |  | Av. Moctezuma
    144-4  Ciudad del Sol. CP 45050, Zapopan, Jalisco México                            |  | Mexico             |  | US$        |  |                    | -     



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 



F-55







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 6 | Background
                                         of companies included in consolidation (continued)
| | ------ | ------------------------------------------------------------------------------------------------------



| | 6.4 | General information on consolidated subsidiaries,
continued
| | --- | -----------------------------------------------------------





|                                    |  |         |  |                                                                                                   |  | Country of    |  | Functional |  | Ownership interest |  
|----------------------------------- |  | ------- |  | ------------------------------------------------------------------------------------------------- |  | ------------- |  | ---------- |  | ------------------ | -
|Subsidiary                          |  | Tax ID  |  | Address                                                                                           |  | incorporation |  | currency   |  | Direct             |  
|                                    |  |         |  |                                                                                                   |  |               |  |            |  |                    |  
|Soquimich European Holding
    B.V. |  | Foreign |  | Loacalellikade 1 Parnassustoren
    1076 AZ Amsterdan                                             |  | Netherlands   |  | US$        |  |                    | -
|SQM Iberian S.A                     |  | Foreign |  | Provenza 251 Principal 1a CP 08008,
    Barcelona                                                 |  | Spain         |  | US$        |  |                    | -
|SQM Africa Pty Ltd.                 |  | Foreign |  | Tramore House, 3 Wterford Office Park,
    Waterford Drive, 2191 Fourways, Johannesburg           |  | South Africa  |  | US$        |  |                    | -
|SQM Oceania Pty Ltd.                |  | Foreign |  | Level 9, 50 Park Street, Sydney NSW
    2000, Sydney                                              |  | Australia     |  | US$        |  |                    | -
|SQM  Agro India Pvt. Ltd.           |  | Foreign |  | C 30 Chiragh Enclave New Dehli, 110048                                                            |  | India         |  | US$        |  |                    | -
|SQM Beijing Commercial Co. Ltd.     |  | Foreign |  | Room 1001C, CBD International Mansion
    N 16 Yong An Dong Li, Jian Wai Ave Beijing 100022, P.R. |  | China         |  | US$        |  |                    | -
|SQM Thailand Limited                |  | Foreign |  | Unit 2962, Level 29, N° 388, Exchange
    Tower Sukhumvit Road, Klongtoey Bangkok                 |  | Thailand      |  | US$        |  |                    | -





|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 



F-56







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 6 | Background
                                         of companies included in consolidation (continued)
| | ------ | ------------------------------------------------------------------------------------------------------



| | 6.5 | Information
                                         attributable to non-controlling interests
| | --- | ----------------------------------------------------------------------------------------------



|Subsidiary                   |  | % of interests inthe ownershipheld by non-controllinginterests. |            |   | Profit (loss) attributable tonon-controlling interests |  |        | Equity, non-controllinginterests |  |  | Dividends paid to non-controlling interests |  
|---------------------------- |  | --------------------------------------------------------------- | ---------- | - | ------------------------------------------------------ |  | ------ | -------------------------------- |  |  | ------------------------------------------- | -
|                             |  |                                                                 |            |   | 12/31/2014                                             |  |        | 12/31/2013                       |  |  | 12/31/2014                                  |  
|                             |  |                                                                 |            |   | ThUS$                                                  |  |        | ThUS$                            |  |  | ThUS$                                       |  
|Proinsa
    Ltda.            |  |                                                                 | 0,1        | % |                                                        |  | -      |                                  |  |  | -                                           |  
|SQM Potasio
    S.A.         |  |                                                                 | 0,0000001  | % |                                                        |  | -      |                                  |  |  | -                                           |  
|Ajay SQM
    Chile S.A.      |  |                                                                 | 49         | % |                                                        |  | (2,595 | )                                |  |  | (3,389                                      | )
|SQM Indonesia
    S.A.       |  |                                                                 | 20         | % |                                                        |  | -      |                                  |  |  | -                                           |  
|Soquimich
    Comercial S.A. |  |                                                                 | 39,3616784 | % |                                                        |  | (4,763 | )                                |  |  | (4,051                                      | )
|Comercial
    Agrorama Ltda. |  |                                                                 | 30         | % |                                                        |  | (30    | )                                |  |  | (18                                         | )
|Agrorama
    S.A.            |  |                                                                 | 0,001      | % |                                                        |  | -      |                                  |  |  | -                                           |  
|Orcoma Estudios
    SPA      |  |                                                                 | 49         | % |                                                        |  | (1     | )                                |  |  | -                                           |  
|SQM
    (Thailand) Limited.  |  |                                                                 | 0.004      | % |                                                        |  | -      |                                  |  |  | -                                           |  
|Total                        |  |                                                                 |            |   |                                                        |  | (7,389 | )                                |  |  | (7,458                                      | )



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 



F-57







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 6 | Background
                                         of companies included in consolidation (continued)
| | ------ | ------------------------------------------------------------------------------------------------------



| | 6.6 | Information
                                         on consolidated subsidiaries
| | --- | ---------------------------------------------------------------------------------



|12/31/2014                                                       
|-----------------------------------------------------------------
|                                                                 
|Subsidiary                                                       
|                                                                 
|                                                                 
|SQM
    Nitratos S.A.                                            
|Proinsa
    Ltda.                                                
|SQMC Internacional
    Ltda.                                     
|SQM Potasio
    S.A.                                             
|Serv. Integrales
    de Tránsito y Transf. S.A.                  
|Isapre Norte
    Grande Ltda.                                    
|Ajay SQM
    Chile S.A.                                          
|Almacenes
    y Depósitos Ltda.                                  
|SQM Salar
    S.A.                                               
|SQM Industrial
    S.A.                                          
|Exploraciones
    Mineras S.A.                                   
|Sociedad
    Prestadora de Servicios de Salud Cruz del Norte S.A.
|Soquimich
    Comercial S.A.                                     
|Comercial
    Agrorama Ltda.                                     
|Comercial
    Hydro S.A.                                         
|Agrorama
    S.A.                                                
|Orcoma SpA                                                       
|Orcoma Estudio
    SpA                                           
|SQM North
    America Corp.                                      
|RS Agro
    Chemical Trading Corporation A.V.V.                  
|Nitratos
    Naturais do Chile Ltda.                             
|Nitrate
    Corporation of Chile Ltd.                            
|SQM Corporation
    N.V.                                         
|SQM Peru
    S.A.                                                
|SQM Ecuador
    S.A.                                             
|SQM Brasil
    Ltda.                                             
|SQI Corporation
    N.V.                                         
|SQMC Holding
    Corporation L.L.P.                              
|SQM Japan
    Co. Ltd.                                           



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 

F-58







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 6 | Background
                                         of companies included in consolidation (continued)
| | ------ | ------------------------------------------------------------------------------------------------------



| | 6.6 | Information on consolidated subsidiaries, continued
| | --- | ---------------------------------------------------



|12/31/2014                                          
|----------------------------------------------------
|                                                    
|Subsidiary                                          
|                                                    
|                                                    
|SQM
    Europe N.V.                                 
|SQM Italia
    SRL                                  
|SQM Indonesia
    S.A.                              
|North American
    Trading Company                  
|SQM Virginia
    LLC                                
|SQM Comercial
    de México S.A. de C.V.            
|SQM Investment
    Corporation N.V.                 
|Royal Seed
    Trading Corporation A.V.V.           
|SQM Lithium
    Specialties LLP                     
|Soquimich
    SRL Argentina                         
|Comercial
    Caimán Internacional S.A.             
|SQM France
    S.A.                                 
|Administración
    y Servicios Santiago S.A. de C.V.
|SQM Nitratos
    México S.A. de C.V.                
|Soquimich
    European Holding B.V.                 
|SQM Iberian
    S.A.                                
|SQM Africa
    Pty Ltd.                             
|SQM Oceanía
    Pty Ltd.                            
|SQM Agro
    India Pvt. Ltd.                        
|SQM Beijing
    Commercial Co. Ltd.                 
|SQM
    Thailand Limited                            
|Total                                               



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 



F-59







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 6 | Background
                                         of companies included in consolidation (continued)
| | ------ | ------------------------------------------------------------------------------------------------------



| | 6.6 | Information on consolidated subsidiaries, continued
| | --- | ---------------------------------------------------



|12/31/2013                                                       
|-----------------------------------------------------------------
|                                                                 
|Subsidiary                                                       
|                                                                 
|                                                                 
|SQM
    Nitratos S.A.                                            
|Proinsa
    Ltda.                                                
|SQMC Internacional
    Ltda.                                     
|SQM Potasio
    S.A.                                             
|Serv. Integrales
    de Tránsito y Transf. S.A.                  
|Isapre Norte
    Grande Ltda.                                    
|Ajay SQM
    Chile S.A.                                          
|Almacenes
    y Depósitos Ltda.                                  
|SQM Salar
    S.A.                                               
|SQM Industrial
    S.A.                                          
|Exploraciones
    Mineras S.A.                                   
|Sociedad
    Prestadora de Servicios de Salud Cruz del Norte S.A.
|Soquimich
    Comercial S.A.                                     
|Comercial
    Agrorama Ltda.                                     
|Comercial
    Hydro S.A.                                         
|Agrorama
    S.A.                                                
|Orcoma SpA                                                       
|Orcoma Estudio
    SpA                                           
|SQM North
    America Corp.                                      
|RS Agro
    Chemical Trading Corporation A.V.V.                  
|Nitratos
    Naturais do Chile Ltda.                             
|Nitrate
    Corporation of Chile Ltd.                            
|SQM Corporation
    N.V.                                         
|SQM Peru
    S.A.                                                
|SQM Ecuador
    S.A.                                             
|SQM Brasil
    Ltda.                                             
|SQI Corporation
    N.V.                                         
|SQMC Holding
    Corporation L.L.P.                              
|SQM Japan
    Co. Ltd.                                           



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 



F-60







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 6 | Background
                                         of companies included in consolidation (continued)
| | ------ | ------------------------------------------------------------------------------------------------------



| | 6.6 | Information on consolidated subsidiaries, continued
| | --- | ---------------------------------------------------



|12/31/2013                                          
|----------------------------------------------------
|                                                    
|Subsidiary                                          
|                                                    
|                                                    
|SQM
    Europe N.V.                                 
|SQM Italia
    SRL                                  
|SQM Indonesia
    S.A.                              
|North American
    Trading Company                  
|SQM Virginia
    LLC                                
|SQM Comercial
    de México S.A. de C.V.            
|SQM Investment
    Corporation N.V.                 
|Royal Seed
    Trading Corporation A.V.V.           
|SQM Lithium
    Specialties LLP                     
|Soquimich
    SRL Argentina                         
|Comercial
    Caimán Internacional S.A.             
|SQM France
    S.A.                                 
|Administración
    y Servicios Santiago S.A. de C.V.
|SQM Nitratos
    México S.A. de C.V.                
|Soquimich
    European Holding B.V.                 
|SQM Iberian
    S.A.                                
|SQM Africa
    Pty Ltd.                             
|SQM Oceanía
    Pty Ltd.                            
|SQM Agro
    India Pvt. Ltd.                        
|SQM Beijing
    Commercial Co. Ltd.                 
|SQM
    Thailand Limited                            
|Total                                               



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 

F-61







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 6 | Background of companies
included in consolidation (continued)
| | ------ | -------------------------------------------------------------



| | 6.7 | Detail of
                                         transactions between consolidated companies
| | --- | ----------------------------------------------------------------------------------------------



Transactions
conducted in 2014On November 21, 2014, shareholders at the Extraordinary Shareholders’ Meeting of the subsidiary Orcoma
Estudios SPA approved a capital increase from US$1,500, divided in 150,000 single series shares, wholly subscribed and paid, to
US$4,631,507, divided in 196,229 single series shares with no par value. SQM S.A. did not subscribe to the capital increase, and
as a result its ownership interest in this subsidiary decreased to 51%. SQM S.A. recognized a gain of ThUS$2,359 for not subscribing
to the capital increase.



At the General
Shareholders’ Meeting of the subsidiary SQM Ecuador S.A., the shareholders agreed to absorb the accumulated losses of the
company of ThUS$ 455.



Transactions
conducted in 2013



On December 31,
2013, the subsidiary Orcoma Estudios SPA was incorporated where Sociedad Quimica y Minera de Chile S.A. made a capital contribution
of US$ 1,500.



On December 31,
2013, the subsidiary Orcoma SPA was incorporated where Sociedad Quimica y Minera de Chile S.A. made a capital contribution of
ThUS$ 2,358.



On March 25, 2013,
SQM Industrial S.A. increased by ThUS$ 1,500 the capital of its subsidiary SQM Beijing Commercial Co. Ltd.



During the first
half of 2013 Iodine Minera was absorbed into Soquimich European Holdings.



During the first
half of 2013 Soquimich European Holdings B.V. purchased shares of SQM Thailand Limited, acquiring 99.996% of this company.



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 

F-62







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 7 | Cash
                                         and cash equivalents
| | ------ | ------------------------------------------------------------------



| | 7.1 | Types of
                                         cash and cash equivalents
| | --- | ---------------------------------------------------------------------------



As of December
31, 2014 and December 31, 2013, cash and cash equivalents are detailed as follows:



|a)	      Cash         |  | 12/31/2014 |        |  | 12/31/20131 | 
|--------------------- |  | ---------- | ------ |  | ----------- | 
|                      |  | ThUS$      |        |  | ThUS$       | 
|                      |  |            |        |  |             | 
|Cash on hand          |  |            | 88     |  |             | 
|Cash in banks         |  |            | 29,404 |  |             | 
|Other demand deposits |  |            | -      |  |             | 
|Total
    cash        |  |            | 29,492 |  |             | 



|b)	     Cash equivalents                               |  | 12/31/2014 |         |  | 12/31/2013 | 
|------------------------------------------------------ |  | ---------- | ------- |  | ---------- | 
|                                                       |  | ThUS$      |         |  | ThUS$      | 
|                                                       |  |            |         |  |            | 
|Short-term deposits, classified as cash equivalents    |  |            | 29,492  |  |            | 
|Short-term investments, classified as cash equivalents |  |            | 295,582 |  |            | 
|Total
    cash equivalents                             |  |            | 325,074 |  |            | 
|                                                       |  |            |         |  |            | 
|Total
    cash and cash equivalents                    |  |            | 354,566 |  |            | 



| | 7.2 | Short-term
                                         investments, classified as cash equivalents
| | --- | -----------------------------------------------------------------------------------------------



As of December
31, 2014 and December 31, 2013, short-term investments, classified as cash and cash equivalents relate to mutual funds (investment
liquidity funds) for investments in:



|Institution                                            |  | 12/31/2014 |         |  | 12/31/2013 | 
|------------------------------------------------------ |  | ---------- | ------- |  | ---------- | 
|                                                       |  | ThUS$      |         |  | ThUS$      | 
|Legg Mason - Western Asset Institutional Cash Reserves |  |            | 100,988 |  |            | 
|BlackRock - Institutional US Dollar Liquidity Fund     |  |            | 97,351  |  |            | 
|JP Morgan US dollar Liquidity Fund Institutional       |  |            | 97,243  |  |            | 
|Total                                                  |  |            | 295,582 |  |            | 



Short-term investments are highly liquid
fund manager accounts that are basically invested in short-term fixed rate notes in the U.S. market.



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 



F-63







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 7 | Cash and cash equivalents
(continued)
| | ------ | -------------------------------------



| | 7.3 | Information
                                         on cash and cash equivalents by currency
| | --- | ---------------------------------------------------------------------------------------------



As of December
31, 2014 and December 31, 2013, information on cash and cash equivalents by currency is detailed as follows:



|Original currency  |  | 12/31/2014 |         |  | 12/31/2013 | 
|------------------ |  | ---------- | ------- |  | ---------- | 
|                   |  | ThUS$      |         |  | ThUS$      | 
|Chilean Peso (*)   |  |            | 6,355   |  |            | 
|US Dollar          |  |            | 328,392 |  |            | 
|Euro               |  |            | 10,449  |  |            | 
|Mexican Peso       |  |            | 736     |  |            | 
|South African Rand |  |            | 4,046   |  |            | 
|Japanese Yen       |  |            | 1,701   |  |            | 
|Peruvian Sol       |  |            | 1       |  |            | 
|Brazilian Real     |  |            | 29      |  |            | 
|Chinese Yuan       |  |            | 769     |  |            | 
|Indonesian Rupiah  |  |            | 4       |  |            | 
|Indian Rupee       |  |            | 12      |  |            | 
|Thai Baht          |  |            | 2,055   |  |            | 
|Argentine Peso     |  |            | 12      |  |            | 
|Pound Sterling     |  |            | 5       |  |            | 
|Total              |  |            | 354,566 |  |            | 



(*) The Company maintains financial
derivative policies which allow dollarizing these term deposits in Chilean pesos.



| | 7.4 | Amount of
                                         significant restricted (unavailable) cash balances
| | --- | -----------------------------------------------------------------------------------------------------



Cash on hand and
in current bank accounts are available resources, and their carrying value is equal to their fair value.



As of December
31, 2014, the amount ThUS$ 3,250 can be found in “other current financial assets”. This corresponds to the collateral
securities associated to the fair value of the Cross Currency Swap (Margin Call). At December 31, 2013, the Company has no significant
cash balances with any type of restriction.



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 



F-64







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 7 | Cash and cash equivalents
(continued)
| | ------ | -------------------------------------



| | 7.5 | Short-term deposits, classified as cash equivalents
| | --- | ---------------------------------------------------



The detail at the
end of each period is as follows:



|2014Receiver of the deposit     |  | Type of deposit |  | Original Currency |  | Interest rate |      |  | Placement date |            | Expiration date |            | PrincipalThUS$ |  |        | Interest accruedto-dateThUS$ |  |  | 31/12/2014ThUS$ | 
|------------------------------- |  | --------------- |  | ----------------- |  | ------------- | ---- |  | -------------- | ---------- | --------------- | ---------- | -------------- |  | ------ | ---------------------------- |  |  | --------------- | 
|Banco
    Estado                |  | Fixed
    term  |  | Ch$               |  |               | 0.24 |  |                | 12/30/2014 |                 | 01/08/2015 |                |  | 4,121  |                              |  |  | -               | 
|Banco Crédito
    e Inversiones |  | Fixed term      |  | Ch$               |  |               | 0.23 |  |                | 12/30/2014 |                 | 01/08/2015 |                |  | 824    |                              |  |  | -               | 
|Banco BBVA
    Chile            |  | Fixed term      |  | US$               |  |               | 0.45 |  |                | 10/29/2014 |                 | 01/06/2015 |                |  | 20,000 |                              |  |  | 16              | 
|BBVA Banco
    Francés          |  | Fixed term      |  | US$               |  |               | 18.5 |  |                | 12/29/2014 |                 | 01/28/2015 |                |  | 362    |                              |  |  | -               | 
|ABN
    Amro Bank               |  | Fixed
    term  |  | Euro              |  |               | -    |  |                | 12/31/2014 |                 | 01/31/2015 |                |  | 4,169  |                              |  |  | -               | 
|Total                           |  |                 |  |                   |  |               |      |  |                |            |                 |            |                |  | 29,476 |                              |  |  | 16              | 





|2013 Receiver
                                         of the deposit |  | Type
    of deposit |  | Original
    Currency |  | Interest
    rate |      |  | Placement
    date |            | Expiration
    date |            | Principal ThUS$ |  |         | Interest accruedto-dateThUS$ |  |  | 31/12/2013ThUS$ | 
|--------------------------------------------------------------------- |  | ------------------- |  | --------------------- |  | ----------------- | ---- |  | ------------------ | ---------- | ------------------- | ---------- | --------------- |  | ------- | ---------------------------- |  |  | --------------- | 
|Banco BBVA
    Chile                                                  |  | Fixed term          |  | US$                   |  |                   | 0.50 |  |                    | 12/20/2013 |                     | 01/09/2014 |                 |  | 10,000  |                              |  |  | 2               | 
|Banco BBVA Chile                                                      |  | Fixed term          |  | US$                   |  |                   | 0.50 |  |                    | 12/20/2013 |                     | 01/09/2014 |                 |  | 10,000  |                              |  |  | 2               | 
|Banco BBVA Chile                                                      |  | Fixed term          |  | US$                   |  |                   | 0.50 |  |                    | 12/20/2013 |                     | 01/09/2014 |                 |  | 10,000  |                              |  |  | 2               | 
|Banco Crédito e
    Inversiones                                       |  | Fixed term          |  | US$                   |  |                   | 0.40 |  |                    | 12/16/2013 |                     | 01/16/2014 |                 |  | 20,000  |                              |  |  | 3               | 
|Banco Crédito e
    Inversiones                                       |  | Fixed term          |  | US$                   |  |                   | 0.48 |  |                    | 12/16/2013 |                     | 02/06/2014 |                 |  | 20,000  |                              |  |  | 4               | 
|Banco Crédito e
    Inversiones                                       |  | Fixed term          |  | US$                   |  |                   | 0.50 |  |                    | 10/17/2013 |                     | 01/03/2014 |                 |  | 10,093  |                              |  |  | 10              | 
|Banco Crédito e
    Inversiones                                       |  | Fixed term          |  | US$                   |  |                   | 0.58 |  |                    | 12/16/2013 |                     | 03/11/2014 |                 |  | 20,000  |                              |  |  | 5               | 
|Banco Crédito e
    Inversiones                                       |  | Fixed term          |  | Ch$                   |  |                   | 0.37 |  |                    | 12/30/2013 |                     | 01/13/2014 |                 |  | 4,384   |                              |  |  | -               | 
|Banco Crédito e
    Inversiones                                       |  | Fixed term          |  | Ch$                   |  |                   | 0.38 |  |                    | 12/27/2013 |                     | 01/09/2014 |                 |  | 4,193   |                              |  |  | 2               | 
|Banco Santander - Santiago                                            |  | Fixed term          |  | US$                   |  |                   | 0.48 |  |                    | 12/09/2013 |                     | 01/23/2014 |                 |  | 20,314  |                              |  |  | 6               | 
|Banco Santander - Santiago                                            |  | Fixed term          |  | US$                   |  |                   | 0.52 |  |                    | 12/04/2013 |                     | 01/03/2014 |                 |  | 10,104  |                              |  |  | 4               | 
|Banco Santander - Santiago                                            |  | Fixed term          |  | Ch$                   |  |                   | 0.43 |  |                    | 10/21/2013 |                     | 01/03/2014 |                 |  | 14,352  |                              |  |  | 148             | 
|IDBI Bank                                                             |  | Fixed term          |  | Indian rupee          |  |                   | -    |  |                    | 12/31/2013 |                     | 6/30/2014  |                 |  | 2       |                              |  |  | -               | 
|Citibank New York                                                     |  | Overnight           |  | US$                   |  |                   | 0.01 |  |                    | 12/31/2013 |                     | 01/02/2014 |                 |  | 444     |                              |  |  | -               | 
|Citibank New York                                                     |  | Overnight           |  | US$                   |  |                   | 0.01 |  |                    | 12/31/2013 |                     | 01/02/2014 |                 |  | 640     |                              |  |  | -               | 
|Citibank New York                                                     |  | Overnight           |  | US$                   |  |                   | 0.01 |  |                    | 12/31/2013 |                     | 01/02/2014 |                 |  | 1,301   |                              |  |  | -               | 
|ABN Amro Bank                                                         |  | Fixed term          |  | Euro                  |  |                   | -    |  |                    | 12/31/2013 |                     | 01/31/2014 |                 |  | 2,193   |                              |  |  | -               | 
|                                                                      |  |                     |  |                       |  |                   |      |  |                    |            |                     |            |                 |  |         |                              |  |  |                 | 
|Total                                                                 |  |                     |  |                       |  |                   |      |  |                    |            |                     |            |                 |  | 158,020 |                              |  |  | 188             | 





|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 



F-65







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 8 | Inventories
| | ------ | -----------



The composition of inventory at each
period-end is as follows:



|Type of inventory       |  | 12/31/2014ThUS$ |         |  | 12/31/2013ThUS$ | 
|----------------------- |  | --------------- | ------- |  | --------------- | 
|                        |  |                 |         |  |                 | 
|Raw materials           |  |                 | 9,540   |  |                 | 
|Supplies for production |  |                 | 30,398  |  |                 | 
|Products-in-progress    |  |                 | 453,816 |  |                 | 
|Finished product        |  |                 | 425,849 |  |                 | 
|Total                   |  |                 | 919,603 |  |                 | 



Inventory provisions
recognized as of December 31, 2014 amount to ThUS$82,966, and ThUS$97,248 as of December 31, 2013. Inventory provisions have been
made based on a technical study that covers the different variables affecting products in stock (density and humidity, among others).
Additionally, provisions are recognized if goods are sold cheaper than the related cost, and for differences that arise from inventory
counts.



As of December
31, 2014, the sum registered as cost of sale related to inventory in the statement of income amounts to ThUS$1,259,983 and to
ThUS$1,314,276 as of December 31, 2013.



The breakdown of inventory provisions
is detailed as follows:



|Type of inventory                  |  | 12/31/2014ThUS$ |        |  | 12/31/2013ThUS$ | 
|---------------------------------- |  | --------------- | ------ |  | --------------- | 
|                                   |  |                 |        |  |                 | 
|Raw material provisions            |  |                 | 93     |  |                 | 
|Supplies for production provisions |  |                 | 500    |  |                 | 
|Products-in-progress provisions    |  |                 | 55,994 |  |                 | 
|Finished product provisions        |  |                 | 26,379 |  |                 | 
|Total                              |  |                 | 82,966 |  |                 | 



The Company has
not delivered inventory as collateral for the periods indicated above.



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 

F-66







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 9 | Related
                                         party disclosures
| | ------ | ------------------------------------------------------------------



| | 9.1 | Related party
                                         disclosures
| | --- | ------------------------------------------------------------------



Balances pending
at period-end are not guaranteed, accrue no interest and are settled in cash. No guarantees have been delivered or received for
trade and other receivables due from related parties or trade and other payables due to related parties. For the period ended
December 31, 2014, the Company has not recorded any impairment in accounts receivable related to amounts owed by related parties.
This evaluation is conducted every year through an examination of the financial position of the related party in the market in
which it operates.



| | 9.2 | Relationships
                                         between the parent and the entity
| | --- | ----------------------------------------------------------------------------------------



According to the
Company’s by-laws, no shareholder can own more than 32% of the Company’s voting right shares.



Sociedad de Inversiones
Pampa Calichera S.A., Potasios de Chile S.A., and Inversiones Global Mining (Chile) Ltda., collectively the Pampa Group, are the
owners of a number of shares that are equivalent to 29.94% as of December 31, 2014 of the current total amount of shares issued,
subscribed and fully-paid of the Company. In addition, Kowa Company Ltd., Inversiones La Esperanza (Chile) Limitada, Kochi S.A.
and La Esperanza Delaware Corporation, collectively the Kowa Group, are the owners of a number of shares equivalent to 2.10% of
the total amount of shares of SQM S.A. issued, subscribed and fully-paid.



The Pampa Group
and the Kowa Group have informed SQM S.A., the Chilean SVS and the relevant stock exchanges in Chile and abroad that they are
not and have never been related parties between them. In addition, this is regardless of the fact that both Groups on December
21, 2006 have entered into a Joint Action Agreement (JAA) related to those shares. Consequently, the Pampa Group, by itself, does
not concentrate more than 32% of the voting right capital of SQM S.A., and the Kowa Group does not concentrate by itself more
than 32% of the voting right capital of SQM S.A.



Likewise, the Joint
Action Agreement has not transformed the Pampa and Kowa Groups into related parties between them. The Joint Action Agreement has
only transformed the current controller of SQM S.A., composed of the Pampa Group, and the Kowa Group into related parties of SQM
S.A.



Detail of effective concentration



|Tax ID No.            |  | Name                                         |  | Ownershipinterest % |      
|--------------------- |  | -------------------------------------------- |  | ------------------- | -----
|96.511.530-7          |  | Sociedad de Inversiones Pampa Calichera S.A. |  |                     | 19.69
|96.863.960-9          |  | Inversiones Global Mining (Chile) Ltda.      |  |                     | 3.34 
|76.165.311-5          |  | Potasios de Chile S.A.                       |  |                     | 6.91 
|Total
    Pampa Group |  |                                              |  |                     | 29.94
|                      |  |                                              |  |                     |      
|79.798.650-k          |  | Inversiones la Esperanza (Chile) Ltda.       |  |                     | 1.41 
|59.046.730-8          |  | Kowa Co Ltd.                                 |  |                     | 0.30 
|96.518.570-4          |  | Kochi S.A.                                   |  |                     | 0.30 
|59.023.690-k          |  | La Esperanza Delaware Corporation            |  |                     | 0.09 
|Total
    Kowa Group  |  |                                              |  |                     | 2.10 



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 



F-67







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 9 | Related party disclosures
(continued)
| | ------ | -------------------------------------



| | 9.3 | Detailed
                                         identification of the link between the Parent and subsidiary
| | --- | --------------------------------------------------------------------------------------------------------------



As of December
31, 2014 and December 31, 2013, the detail of entities that are related parties of the SQM S.A. Group is as follows:



|Tax
    ID No. |  | Name                                                 |  | Country
    of origin |  | Functional
    currency |  | Nature    
|-------------- |  | ---------------------------------------------------- |  | --------------------- |  | ----------------------- |  | ----------
|Foreign        |  | Nitratos Naturais Do Chile Ltda.                     |  | Brazil                |  | US$                     |  | Subsidiary
|Foreign        |  | Nitrate Corporation Of Chile Ltd.                    |  | United Kingdom        |  | US$                     |  | Subsidiary
|Foreign        |  | SQM North America Corp.                              |  | United States         |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Europe N.V.                                      |  | Belgium               |  | US$                     |  | Subsidiary
|Foreign        |  | Soquimich S.R.L. Argentina                           |  | Argentina             |  | US$                     |  | Subsidiary
|Foreign        |  | Soquimich European Holding B.V.                      |  | The Netherlands       |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Corporation N.V.                                 |  | Dutch Antilles        |  | US$                     |  | Subsidiary
|Foreign        |  | SQI Corporation N.V.                                 |  | Dutch Antilles        |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Comercial De México S.A. de C.V.                 |  | Mexico                |  | US$                     |  | Subsidiary
|Foreign        |  | North American Trading Company                       |  | United States         |  | US$                     |  | Subsidiary
|Foreign        |  | Administración y Servicios Santiago
    S.A. de C.V. |  | Mexico                |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Peru S.A.                                        |  | Peru                  |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Ecuador S.A.                                     |  | Ecuador               |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Nitratos Mexico S.A. de C.V.                     |  | Mexico                |  | US$                     |  | Subsidiary
|Foreign        |  | SQMC Holding Corporation L.L.P.                      |  | United States         |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Investment Corporation N.V.                      |  | Dutch Antilles        |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Brasil Limitada                                  |  | Brazil                |  | US$                     |  | Subsidiary
|Foreign        |  | SQM France S.A.                                      |  | France                |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Japan Co.  Ltd.                                  |  | Japan                 |  | US$                     |  | Subsidiary
|Foreign        |  | Royal Seed Trading Corporation A.V.V.                |  | Aruba                 |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Oceania Pty Limited                              |  | Australia             |  | US$                     |  | Subsidiary
|Foreign        |  | Rs Agro-Chemical Trading Corporation A.V.V.          |  | Aruba                 |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Indonesia S.A.                                   |  | Indonesia             |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Virginia L.L.C.                                  |  | United States         |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Italia SRL                                       |  | Italy                 |  | US$                     |  | Subsidiary
|Foreign        |  | Comercial Caiman Internacional S.A.                  |  | Panamá                |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Africa Pty. Ltd.                                 |  | South Africa          |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Lithium Specialties LLC                          |  | United States         |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Iberian S.A.                                     |  | Spain                 |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Agro India Pvt. Ltd.                             |  | India                 |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Beijing Commercial Co. Ltd.                      |  | China                 |  | US$                     |  | Subsidiary
|Foreign        |  | SQM Thailand Limited                                 |  | Thailand              |  | US$                     |  | Subsidiary



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 

F-68







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 9 | Related party disclosures
(continued)
| | ------ | -------------------------------------



| | 9.3 | Detailed identification of the link between the Parent
and subsidiary, continued
| | --- | --------------------------------------------------------------------------------



As of December 31, 2014 and December
31, 2013, the detail of entities that are a related parties of the SQM S.A: Group is as follows:



|Tax ID No.   |  | Name                                                              |  | Country oforigin     |  | Functional currency  |  | Nature                                
|------------ |  | ----------------------------------------------------------------- |  | -------------------- |  | -------------------- |  | --------------------------------------
|96.801.610-5 |  | Comercial Hydro  S.A.                                             |  | Chile                |  | Chilean peso         |  | Subsidiary                            
|96.651.060-9 |  | SQM Potasio S.A.                                                  |  | Chile                |  | US$                  |  | Subsidiary                            
|96.592.190-7 |  | SQM Nitratos S.A.                                                 |  | Chile                |  | US$                  |  | Subsidiary                            
|96.592.180-K |  | Ajay SQM Chile S.A.                                               |  | Chile                |  | US$                  |  | Subsidiary                            
|86.630.200-6 |  | SQMC Internacional Ltda.                                          |  | Chile                |  | Chilean peso         |  | Subsidiary                            
|79.947.100-0 |  | SQM Industrial S.A.                                               |  | Chile                |  | US$                  |  | Subsidiary                            
|79.906.120-1 |  | Isapre Norte Grande Ltda.                                         |  | Chile                |  | Chilean peso         |  | Subsidiary                            
|79.876.080-7 |  | Almacenes y Depósitos Ltda.                                       |  | Chile                |  | Chilean peso         |  | Subsidiary                            
|79.770.780-5 |  | Servicios Integrales de Tránsitos y Transferencias
    S.A.       |  | Chile                |  | US$                  |  | Subsidiary                            
|79.768.170-9 |  | Soquimich Comercial S.A.                                          |  | Chile                |  | US$                  |  | Subsidiary                            
|79.626.800-K |  | SQM Salar S.A.                                                    |  | Chile                |  | US$                  |  | Subsidiary                            
|78.053.910-0 |  | Proinsa Ltda.                                                     |  | Chile                |  | Chilean peso         |  | Subsidiary                            
|76.534.490-5 |  | Sociedad Prestadora de Servicios de Salud Cruz del
    Norte S.A. |  | Chile                |  | Chilean peso         |  | Subsidiary                            
|76.425.380-9 |  | Exploraciones Mineras S.A.                                        |  | Chile                |  | US$                  |  | Subsidiary                            
|76.064.419-6 |  | Comercial Agrorama Ltda.                                          |  | Chile                |  | Chilean peso         |  | Subsidiary                            
|76.145.229-0 |  | Agrorama S.A.                                                     |  | Chile                |  | Chilean peso         |  | Subsidiary                            
|76.359.919-1 |  | Orcoma Estudios SPA                                               |  | Chile                |  | US$                  |  | Subsidiary                            
|76.360.575-2 |  | Orcoma SPA                                                        |  | Chile                |  | US$                  |  | Subsidiary                            
|77.557.430-5 |  | Sales de Magnesio Ltda.                                           |  | Chile                |  | Chilean peso         |  | Associate                             
|Foreign      |  | Abu Dhabi Fertilizer Industries WWL                               |  | United Arab Emirates |  | Arab Emirates dirham |  | Associate                             
|Foreign      |  | Doktor Tarsa Tarim Sanayi AS                                      |  | Turkey               |  | Turkish lira         |  | Associate                             
|Foreign      |  | Ajay North America                                                |  | United States        |  | US$                  |  | Associate                             
|Foreign      |  | Ajay Europe SARL                                                  |  | France               |  | Euro                 |  | Associate                             
|Foreign      |  | SQM Eastmed Turkey                                                |  | Turkey               |  | Euro                 |  | Associate                             
|Foreign      |  | Charlee SQM Thailand Co. Ltd.                                     |  | Thailand             |  | Thai baht            |  | Associate                             
|Foreign      |  | Sichuan SQM Migao Chemical Fertilizers Co Ltda.                   |  | China                |  | US$                  |  | Joint venture                         
|Foreign      |  | Coromandel SQM                                                    |  | India                |  | Indian rupee         |  | Joint venture                         
|Foreign      |  | SQM Vitas Fzco.                                                   |  | Arab Emirates        |  | Arab Emirates dirham |  | Joint venture                         
|Foreign      |  | SQM Star Qingdao Corp Nutrition Co., Ltd.                         |  | China                |  | US$                  |  | Joint venture                         
|Foreign      |  | SQM Vitas Spain                                                   |  | Spain                |  | Euro                 |  | Joint control or significant influence
|Foreign      |  | SQM Vitas Holland                                                 |  | Dutch Antilles       |  | Euro                 |  | Joint venture                         
|Foreign      |  | SQM Vitas Plantacote B.V.                                         |  | Dutch Antilles       |  | Euro                 |  | Joint control or significant influence
|Foreign      |  | Kowa Company Ltd.                                                 |  | Japan                |  | US$                  |  | Joint control                         
|96.511.530-7 |  | Sociedad de Inversiones Pampa Calichera                           |  | Chile                |  | US$                  |  | Joint control                         
|96.529.340-k |  | Norte Grande S.A.                                                 |  | Chile                |  | Chilean peso         |  | Other related parties                 
|79.049.778-9 |  | Callegari Agricola S.A.                                           |  | Chile                |  | Chilean peso         |  | Other related parties                 
|Foreign      |  | Coromandel Internacional                                          |  | India                |  | Indian rupee         |  | Other related parties                 
|Foreign      |  | Vitas Roullier SAS                                                |  | France               |  | Euro                 |  | Other related parties                 
|Foreign      |  | SQM Vitas Brasil Agroindustria                                    |  | Brazil               |  | US$                  |  | Joint control or significant influence
|Foreign      |  | SQM Vitas Peru S.A.C.                                             |  | Peru                 |  | US$                  |  | Joint control or significant influence
|Foreign      |  | SQM Vitas Southern Africa Pty.                                    |  | South Africa         |  | US$                  |  | Joint control or significant influence



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 



F-69







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 9 | Related party disclosures
(continued)
| | ------ | -------------------------------------



| | 9.4 | Detail of
                                         related parties and related party transactions
| | --- | -------------------------------------------------------------------------------------------------



Transactions between
the Parent and its subsidiaries are part of the Company's common transactions. Their conditions are those customary for this type
of transactions in respect of terms and market prices. In addition, these have been eliminated in consolidation and are not detailed
in this note.



Maturity terms
for each case vary by virtue of the transaction giving rise to them.



As of December
31, 2014 and December 31, 2013, there are no allowances for doubtful accounts related to balances pending of transactions with
related parties as there is no impairment in them.



As of December
31, 2014, 2013 and 2012, the detail of transactions with related parties is as follows:



|Tax ID No.   |  | Company                             |  | Nature                |  | Country oforigin     |  | Transaction        |  | 12/31/2014ThUS$ |        |  | 12/31/2013ThUS$ |  |        | 12/31/2012ThUS$ | 
|------------ |  | ----------------------------------- |  | --------------------- |  | -------------------- |  | ------------------ |  | --------------- | ------ |  | --------------- |  | ------ | --------------- | 
|Foreign      |  | Doktor Tarsa Tarim Sanayi As        |  | Associate             |  | Turkey               |  | Sale of products   |  |                 | 26,806 |  |                 |  | 13,844 |                 | 
|Foreign      |  | Doktor Tarsa Tarim Sanayi As        |  | Associate             |  | Turkey               |  | Other Transactions |  |                 | -      |  |                 |  | 740    |                 | 
|Foreign      |  | Ajay Europe S.A.R.L.                |  | Associate             |  | France               |  | Sale of products   |  |                 | 28,566 |  |                 |  | 35,884 |                 | 
|Foreign      |  | Ajay Europe S.A.R.L.                |  | Associate             |  | France               |  | Dividends          |  |                 | 2,728  |  |                 |  | 5,093  |                 | 
|Foreign      |  | Ajay North America LLC.             |  | Associate             |  | United States        |  | Sale of products   |  |                 | 23,533 |  |                 |  | 40,605 |                 | 
|Foreign      |  | Ajay North America LLC.             |  | Associate             |  | United States        |  | Dividends          |  |                 | 7,139  |  |                 |  | 10,437 |                 | 
|Foreign      |  | Ajay North America LLC.             |  | Associate             |  | United States        |  | Sale of services   |  |                 | 90     |  |                 |  | -      |                 | 
|Foreign      |  | Abu Dhabi Fertilizer Industries WWL |  | Associate             |  | United Arab Emirates |  | Sale of products   |  |                 | 8,535  |  |                 |  | 7,908  |                 | 
|Foreign      |  | Charlee SQM Thailand Co. Ltd.       |  | Associate             |  | Thailand             |  | Sale of products   |  |                 | 6,852  |  |                 |  | 5,669  |                 | 
|77.557.430-5 |  | Sales de Magnesio Ltda.             |  | Associate             |  | Chile                |  | Sale of products   |  |                 | 1,112  |  |                 |  | 1,186  |                 | 
|77.557.430-5 |  | Sales de Magnesio Ltda.             |  | Associate             |  | Chile                |  | Dividends          |  |                 | 1,245  |  |                 |  | 892    |                 | 
|77.557.430-5 |  | Sales de Magnesio Ltda.             |  | Associate             |  | Chile                |  | Sale of services   |  |                 | 35     |  |                 |  | -      |                 | 
|96.529.340-k |  | Norte Grande S.A.                   |  | Other related parties |  | Chile                |  | Sale of services   |  |                 | -      |  |                 |  | 140    |                 | 
|79.049.778-9 |  | Callegari Agrícola S.A.             |  | Other related parties |  | Chile                |  | Other Transactions |  |                 | 47     |  |                 |  | -      |                 | 
|Foreign      |  | Kowa Company Ltd.                   |  | Other related parties |  | Japan                |  | Sale of products   |  |                 | 76,714 |  |                 |  | 77,176 |                 | 



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 

F-70







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 9 | Related party disclosures
(continued)
| | ------ | -------------------------------------



| | 9.4 | Detail of related parties and related party transactions,
continued
| | --- | -------------------------------------------------------------------



|Tax ID No. |  | Company                                         |  | Nature                                 |  | Country oforigin     |  | Transaction       |  | 12/31/2014ThUS$ |        |  | 12/31/2013ThUS$ |  |        | 12/31/2012ThUS$ | 
|---------- |  | ----------------------------------------------- |  | -------------------------------------- |  | -------------------- |  | ----------------- |  | --------------- | ------ |  | --------------- |  | ------ | --------------- | 
|Foreign    |  | Kowa Company Ltd.                               |  | Other related parties                  |  | Japan                |  | Services received |  |                 | 1,546  |  |                 |  | 702    |                 | 
|Foreign    |  | SQM Vitas Brasil Agroindustria                  |  | Joint control or significant influence |  | Brazil               |  | Sale of products  |  |                 | 51,841 |  |                 |  | 52,901 |                 | 
|Foreign    |  | SQM Vitas Peru S.A.C.                           |  | Joint control or significant influence |  | Peru                 |  | Sale of products  |  |                 | 30,978 |  |                 |  | 21,255 |                 | 
|Foreign    |  | SQM Vitas Southern Africa Pty.                  |  | Joint control or significant influence |  | South Africa         |  | Sale of products  |  |                 | 13,975 |  |                 |  | 17,908 |                 | 
|Foreign    |  | SQM Vitas Fzco.                                 |  | Joint venture                          |  | United Arab Emirates |  | Sale of products  |  |                 | 1,681  |  |                 |  | 289    |                 | 
|Foreign    |  | SQM Vitas Fzco.                                 |  | Joint venture                          |  | United Arab Emirates |  | Sale of services  |  |                 | -      |  |                 |  | 98     |                 | 
|Foreign    |  | Sichuan SQM Migao Chemical Fertilizers Co Ltda. |  | Joint venture                          |  | China                |  | Sale of products  |  |                 | 53,763 |  |                 |  | 56,254 |                 | 
|Foreign    |  | Sichuan SQM Migao Chemical Fertilizers Co Ltda. |  | Joint venture                          |  | China                |  | Sale of services  |  |                 | -      |  |                 |  | 282    |                 | 
|Foreign    |  | Coromandel SQM India                            |  | Joint venture                          |  | India                |  | Sale of products  |  |                 | 4,930  |  |                 |  | 5,242  |                 | 
|Foreign    |  | SQM Star Qingdao Corp Nutrition Co., Ltd.       |  | Joint venture                          |  | China                |  | Sale of services  |  |                 | -      |  |                 |  | 148    |                 | 
|Foreign    |  | SQM Vitas Spain                                 |  | Joint venture                          |  | Spain                |  | Sale of products  |  |                 | 7,700  |  |                 |  | 1,624  |                 | 
|Foreign    |  | SQM Vitas Plantacote B.V.                       |  | Joint venture                          |  | Netherlands          |  | Sale of products  |  |                 | 4      |  |                 |  | -      |                 | 



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 

F-71







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 9 | Related party disclosures
(continued)
| | ------ | -------------------------------------



| | 9.5 | Trade receivables
                                         due from related parties, current:
| | --- | ---------------------------------------------------------------------------------------------



|              |  |                                                     |  |                               |  |                          |  |                          |  | 12/31/2014 |         |  | 12/31/2013 | 
|------------- |  | --------------------------------------------------- |  | ----------------------------- |  | ------------------------ |  | ------------------------ |  | ---------- | ------- |  | ---------- | 
|Tax
    ID N° |  | Company                                             |  | Nature                        |  | Country
    of origin    |  | Currency                 |  | ThUS$      |         |  | ThUS$      | 
|77.557.430-5  |  | Sales
    de Magnesio Ltda.                         |  | Associate                     |  | Chile                    |  | Ch$                      |  |            | 340     |  |            | 
|Foreign       |  | Charlee
    SQM Thailand Co. Ltd.                   |  | Associate                     |  | Thailand                 |  | US$                      |  |            | 2.559   |  |            | 
|Foreign       |  | Doktor
    Tarsa Tarim Sanayi AS                    |  | Associate                     |  | Turkey                   |  | US$                      |  |            | -       |  |            | 
|Foreign       |  | Ajay
    Europe S.A.R.L.                            |  | Associate                     |  | France                   |  | Euro                     |  |            | 3.674   |  |            | 
|Foreign       |  | Ajay
    North America LLC.                         |  | Associate                     |  | United
    States        |  | US$                      |  |            | 2.793   |  |            | 
|Foreign       |  | Abu
    Dhabi Fertilizer Industries WWL             |  | Associate                     |  | United
    Arab Emirates |  | Arab
    Emirates dirham |  |            | 3.596   |  |            | 
|Foreign       |  | Kowa
    Company Ltd.                               |  | Jointly
    controlled entity |  | Japan                    |  | US$                      |  |            | 19.445  |  |            | 
|96.511.530-7  |  | Soc.de
    Inversiones Pampa Calichera              |  | Jointly
    controlled entity |  | Chile                    |  | US$                      |  |            | 7       |  |            | 
|Foreign       |  | SQM
    Vitas Brasil Agroindustria                  |  | Joint
    venture             |  | Brazil                   |  | US$                      |  |            | 29.425  |  |            | 
|Foreign       |  | SQM
    Vitas Peru S.A.C.                           |  | Joint
    venture             |  | Peru                     |  | US$                      |  |            | 20.716  |  |            | 
|Foreign       |  | SQM
    Vitas Southern Africa PTY                   |  | Joint
    venture             |  | South
    Africa         |  | US$                      |  |            | 3.772   |  |            | 
|Foreign       |  | Coromandel
    SQM India                            |  | Joint
    venture             |  | India                    |  | Indian
    rupee         |  |            | 2.534   |  |            | 
|Foreign       |  | Sichuan
    SQM Migao Chemical Fertilizers Co Ltda. |  | Joint
    venture             |  | China                    |  | US$                      |  |            | 43.900  |  |            | 
|79.049.778-9  |  | Callegari
    Agrícola S.A.                         |  | Other
    related parties     |  | Chile                    |  | Ch$                      |  |            | 87      |  |            | 
|Foreign       |  | SQM
    Vitas Fzco.                                 |  | Joint
    venture             |  | United
    Arab Emirates |  | Arab
    Emirates dirham |  |            | 523     |  |            | 
|Foreign       |  | SQM
    Vitas Spain                                 |  | Joint
    venture             |  | Spain                    |  | Euro                     |  |            | 1.099   |  |            | 
|Foreign       |  | SQM
    Vitas Plantacote B.V.                       |  | Joint
    venture             |  | Holland                  |  | Euro                     |  |            | -       |  |            | 
|Foreign       |  | SQM
    Star Qingdao Corp Nutrition Co., Ltd.       |  | Joint
    venture             |  | China                    |  | US$                      |  |            | 36      |  |            | 
|Foreign       |  | SQM
    Vitas Holland                               |  | Joint
    venture             |  | Holland                  |  | Euro                     |  |            | -       |  |            | 
|Total         |  |                                                     |  |                               |  |                          |  |                          |  |            | 134,506 |  |            | 



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 

F-72







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 9 | Related party disclosures
(continued)
| | ------ | -------------------------------------



| | 9.6 | Trade payables
                                         due to related parties, current:
| | --- | ----------------------------------------------------------------------------------------



|Tax IDNo.               |  | Company.                         |     | Nature            |  | Country oforigin |   | Currency         |  | 12/31/2014ThUS$ |     |  | 12/31/2013ThUS$ | 
|----------------------- |  | -------------------------------- | --- | ----------------- |  | ---------------- | - | ---------------- |  | --------------- | --- |  | --------------- | 
|Foreign                 |  | Doktor
    Tarsa Tarim Sanayi AS |     | Associate         |  | Turkey           |   | Turkish
    lira |  |                 | 71  |  |                 | 
|Foreign                 |  | SQM
    Vitas Plantacote B.V.    |     | Joint
    venture |  | Holland          |   | Euro             |  |                 | 160 |  |                 | 
|Total
    as of to-date |  |                                  | 231 |                   |  |                  | - |                 



| | 9.7 | Board of
                                         Directors and Senior Management
| | --- | ---------------------------------------------------------------------------------



| | 1) | Board of directors
| | -- | ------------------



The Company is
managed by a Board of Directors which is composed of eight regular directors who are elected for a three-year period. The present
Board of Directors was elected by the shareholders at the Ordinary Shareholders' Meeting of April 25, 2013.



As of December
31, 2014, the Company has an Audit Committee made up of three members of the Board of Directors. This Committee performs those
duties provided in Article 50 bis of Law No. 18,046 on Shareholders Company, the Shareholders’ Corporations Act.



During the periods
covered by these financial statements, there are no pending balances receivable and payable between the Company, its directors
or members of Senior Management other than those related to remuneration, fee allowances and profit-sharing. In addition, there
were no transactions conducted between the Company, its directors or members of Senior Management.



| | 2) | Directors’ Compensation
| | -- | -----------------------



| | 2.1.1 | Board of Directors
| | ----- | ------------------



Directors’
compensation is detailed as follows:



| | a) | A payment
                                         of a monthly fixed gross amount of UF 300 in favor of the Chairman of the Company’s
                                         Board of Directors and UF 125 in favor of the seven remaining board members regardless
                                         of their attendance at Board meetings or the number of meetings attended during the respective
                                         month.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) | A payment
                                         in domestic currency in favor of the Chairman of the Company’s Board of Directors
                                         consisting of a variable and gross amount equivalent to 0.35% of profit for the period
                                         effectively earned by the Company during fiscal year 2014.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | c) | A payment
                                         in domestic currency in favor of each Company’s directors excluding the Chairman
                                         of the Board, consisting of a variable and gross amount equivalent to 0.05% of profit
                                         for the period effectively earned by the Company during fiscal years 2014.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | d) | The fixed
                                         and variable amounts indicated above will not be subject to any charge between them,
                                         and those expressed as a percentage will be paid immediately after the shareholders at
                                         the respective Annual General Shareholders’ Meeting of the Company approve the
                                         statement of financial position (balance sheet), the financial statements, the annual
                                         report, the report by the account inspectors and the report of external auditors for
                                         the fiscal years ending December 31, 2014.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 

F-73







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 9 | Related party disclosures
(continued)
| | ------ | -------------------------------------



| | 9.7 | Board of Directors and Senior Management, continued
| | --- | ---------------------------------------------------



| | e) | Therefore,
                                         the remunerations and profit sharing paid to members of the Board of Directors and Audit
                                         Committee during 2014 amount to ThUS$3,424 (ThUS$ 4,827 as of December 31, 2013).
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3) | Audit Committee
| | -- | ---------------



The remuneration of Directors Committee
is composed of:



| | a) | A payment
                                         of a monthly, fixed and gross amount of UF 17 in favor of each of the three Directors
                                         who are a part of the Company’s Audit Committee, regardless of the number of meetings
                                         conducted during the respective month.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) | A payment
                                         in domestic currency and in favor of each of the three Directors of a variable and gross
                                         amount equivalent to 0.013% of the Company’s profit for the period effectively
                                         earned by the Company during fiscal years 2014 and 2013.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 4) | No guarantees have been constituted in favor of the directors.
| | -- | --------------------------------------------------------------



| | 5) | Senior management compensation:
| | -- | -------------------------------



As
of December 31, 2014, the global compensation paid to the 108 main executives amounts to ThUS$25,666 (ThUS$32,888 as of December
31, 2013). This includes monthly fixed salary and variable performance bonuses.



The
Company has a bonuses intermediate and bi-intermediate plan for compliance target and level of individual contribution to the
Company’s profit or loss. These benefits are structured in a minimum and maximum of gross remunerations which are paid once
a year or every two years.



| | 6) | Additionally,
                                         the Company has retention bonuses for the Company’s executives. The amount of these
                                         bonuses is linked to the price of the Company’s share and is payable in cash between
                                         2012 and 2016 (see Note 16).
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 7) | No
                                         guarantees have been constituted in favor of the Company’s management.
| | -- | ------------------------------------------------------------------------------------------------------------------



| | 8) | The
                                         Company’s Managers and Directors do not receive or have not received any benefit
                                         during the period ended December 31, 2014 and the year ended December 31, 2013 or compensation
                                         for the concept of pensions, life insurance, paid time off, profit sharing, incentives,
                                         or benefits due to disability other than those mentioned in the preceding points.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 9) | In
                                         accordance with IAS 24, we should report that the Company's Director Mr. Wolf Von Appen
                                         B. is also a member of the Ultramar Group. As of December 31, 2014, the amount of transactions
                                         with this Group is approximately ThUS$12,287 (ThUS$16,850 as of December 31, 2013). In
                                         addition, Director José María Eyzaguirre is also a partner of Claro y Compañía.
                                         As of December 31, 2014, the amount of transactions with this Group is approximately
                                         ThUS$242 (ThUS$85 as of December 31, 2013).
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 



F-74







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 9 | Related party disclosures
(continued)
| | ------ | -------------------------------------



| | 9.8 | Key management
                                         personnel compensation
| | --- | ------------------------------------------------------------------------------



|                                          |  | 12/31/2014 |        |  | 12/31/2013 | 
|----------------------------------------- |  | ---------- | ------ |  | ---------- | 
|                                          |  | ThUS$      |        |  | ThUS$      | 
|                                          |  |            |        |  |            | 
|Salaries                                  |  |            | 18,778 |  |            | 
|Long-Term Bonus                           |  |            | 3,917  |  |            | 
|Annual Bonus                              |  |            | 2,971  |  |            | 
|Key
    management personnel compensation |  |            | 25,666 |  |            | 



Management does
not receive an end-of-strike Bonus, nor has it received post-employment benefits. Regarding the share-based benefits:

| | a. | There is one
                                         in which 10 executives were involved and is triggered if the stock of SQM B exceeds US$
                                         50,00, a situation that occurred in 2014.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b. | The
                                         other shared benefit- in which 26 executives were involved at December 31, 2014- will
                                         be determined in December 2015, if payment were to be appropriate.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 

F-75







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 10 | Financial
                                         instruments
| | ------- | --------------------------------------------------------------



Financial assets in conformity with
IAS 39 are detailed as follows:



| | 10.1 | Types of
                                         other financial assets
| | ---- | ------------------------------------------------------------------------



|Description of other financial assets    |  | 12/31/2014 |         |  | 12/31/2013 | 
|---------------------------------------- |  | ---------- | ------- |  | ---------- | 
|                                         |  | ThUS$      |         |  | ThUS$      | 
|                                         |  |            |         |  |            | 
|Other current financial assets (1)       |  |            | 653,442 |  |            | 
|Derivatives (2)                          |  |            | 17,160  |  |            | 
|Hedging assets, current                  |  |            | -       |  |            | 
|Total other current financial assets     |  |            | 670,602 |  |            | 
|                                         |  |            |         |  |            | 
|Other non-current financial assets       |  |            | 427     |  |            | 
|Hedging assets, non-current              |  |            | -       |  |            | 
|Total other non-current financial assets |  |            | 427     |  |            | 



| | (1) | Relates
                                         to term deposits with maturities exceeding 90 days and less than 360 days from the investment
                                         date.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (2) | Relate to forwards and options that were
                                         not classified as hedging instruments (see detail in Note 10.3).
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------



Detail of other current financial
assets



|Institution                    |  | 12/31/2014 |         |  | 12/31/2013 | 
|------------------------------ |  | ---------- | ------- |  | ---------- | 
|                               |  | ThUS$      |         |  | ThUS$      | 
|Banco Santander                |  |            | 141,914 |  |            | 
|BBVA                           |  |            | 91,718  |  |            | 
|Banco de Crédito e Inversiones |  |            | 140,216 |  |            | 
|Banco de Chile                 |  |            | 60,153  |  |            | 
|Corpbanca                      |  |            | 91,372  |  |            | 
|Banco Itaú                     |  |            | 100,136 |  |            | 
|Banco Security                 |  |            | 24,683  |  |            | 
|Morgan Stanley                 |  |            | 3,250   |  |            | 
|Total                          |  |            | 653,442 |  |            | 



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 



F-76









| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 10 | Financial instruments (continued)
| | ------- | ---------------------------------



| | 10.2 | Trade and
                                         other receivables, current and non-current
| | ---- | ---------------------------------------------------------------------------------------------



|                                      |  | 12/31/2014 |         |  | 12/31/2013  | 
|------------------------------------- |  | ---------- | ------- |  | ----------- | 
|                                      |  | Current    |         |  | Non-current | 
|                                      |  | ThUS$      |         |  | ThUS$       | 
|Trade receivables                     |  |            | 322,231 |  |             | 
|Prepayments                           |  |            | 11,378  |  |             | 
|Other receivables                     |  |            | 7,221   |  |             | 
|Total
    trade and other receivables |  |            | 340,830 |  |             | 



|                                                      |  | 12/31/2014              |         |  | 12/31/2013                             | 
|----------------------------------------------------- |  | ----------------------- | ------- |  | -------------------------------------- | 
|                                                      |  | Assets beforeallowances |         |  | Allowance fordoubtful tradereceivables | 
|                                                      |  | ThUS$                   |         |  | ThUS$                                  | 
|Receivables
    related to credit operations, current |  |                         | 337,296 |  |                                        | 
|Trade
    receivables, current                        |  |                         | 337,296 |  |                                        | 
|Prepayments,
    current                              |  |                         | 14,178  |  |                                        | 
|Other
    receivables, current                        |  |                         | 9,184   |  |                                        | 
|Current
    trade and other receivables               |  |                         | 360,658 |  |                                        | 
|Other
    receivables, non-current                    |  |                         | 2,044   |  |                                        | 
|Non-current
    receivables                           |  |                         | 2,044   |  |                                        | 
|Total
    trade and other receivables                 |  |                         | 362,702 |  |                                        | 



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 

F-77







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 10 | Financial instruments (continued)
| | ------- | ---------------------------------



10.2	Trade and other receivables,
continued



Portfolio stratification, continued



The Company’s
policy is to require guarantees (such as letters of credit, guarantee clauses and others) and/or maintain insurance policies for
certain accounts as deemed necessary by management.



Unsecuritized portfolio



As of December 31, 2014 and December
31, 2013, the detail of the unsecuritized portfolio is as follows:



|12/31/2014                                                    
|--------------------------------------------------------------
|                                                              
|                                                              
|Number
    of customers, portfolio under no renegotiated terms
|Portfolio
    under no renegotiated terms                     
|Number of
    customers under renegotiated terms portfolio    
|Portfolio
    under renegotiated terms, gross                 
|Total
    gross portfolio                                     



|12/31/2013                                                    
|--------------------------------------------------------------
|                                                              
|                                                              
|Number
    of customers, portfolio under no renegotiated terms
|Portfolio
    under no renegotiated terms                     
|Number of
    customers under renegotiated terms portfolio    
|Portfolio
    under renegotiated terms, gross                 
|Total
    gross portfolio                                     



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 

F-78







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 10 | Financial instruments (continued)
| | ------- | ---------------------------------



| | 10.2 | Trade and other receivables, continued
| | ---- | --------------------------------------



The detail of allowances is as follows:



|Provision and write-offs                            |  | 12/31/2014 |        |   | 12/31/2013 |  |        | 12/31/2012 | 
|--------------------------------------------------- |  | ---------- | ------ | - | ---------- |  | ------ | ---------- | 
|                                                    |  | ThUS$      |        |   | ThUS$      |  |        | ThUS$      | 
|Allowance for portfolio under no renegotiated terms |  |            | 16,585 |   |            |  | 16,711 |            | 
|Allowance for portfolio with renegotiated terms     |  |            | 3,717  |   |            |  | 4,459  |            | 
|Write-offs for the period                           |  |            | (474   | ) |            |  | (520   | )          | 
|Total                                               |  |            | 19,828 |   |            |  | 20,650 |            | 



|a) |  | Credit risk concentration
|-- |  | -------------------------



Credit risk concentration
with respect to trade receivables is reduced due to the great number of entities included in the Company’s client database
and their distribution throughout the world.



| | 10.3 | Hedging
                                         assets and liabilities
| | ---- | -----------------------------------------------------------------------



The balance represents
derivative instruments measured at fair value which have been classified as hedges from exchange and interest rate risks related
to the total obligations associated with bonds of the Company in Chilean pesos and UF (and the exchange risk in Chilean pesos
of the Company’s investment plans). As of December 31, 2014, the face value of cash flows in Cross Currency Swap contracts
agreed upon in US dollars amounted to ThUS$368,017 as of December 31, 2013 such contracts amounted to ThUS$555,303 and as of December
31, 2012 such contracts amounted to ThUS$515,156.



|Hedging liabilities |  | Derivativeinstruments(CCS) |        |  | Effect on profit orloss for the periodDerivativeinstruments |  |         | Hedging reservein gross equity |  |  | Deferred taxhedgingreserve inequity |  |  | Hedgingreserve inequity |     
|------------------- |  | -------------------------- | ------ |  | ----------------------------------------------------------- |  | ------- | ------------------------------ |  |  | ----------------------------------- |  |  | ----------------------- | ----
|                    |  | ThUS$                      |        |  | ThUS$                                                       |  |         | ThUS$                          |  |  | ThUS$                               |  |  | ThUS$                   |     
|                    |  |                            |        |  |                                                             |  |         |                                |  |  |                                     |  |  |                         |     
|December 31, 2014   |  |                            | 37,034 |  |                                                             |  | (43,236 | )                              |  |  | 1,638                               |  |  |                         | (311



|Hedging assets    |  | Derivativeinstruments (CCS) |         |  | Effect on profit orloss for the periodDerivativeinstruments |  |         | Hedging reservein gross equity |  |  | Deferred taxhedgingreserve inequity |   |  | Hedgingreserve inequity |      
|----------------- |  | --------------------------- | ------- |  | ----------------------------------------------------------- |  | ------- | ------------------------------ |  |  | ----------------------------------- | - |  | ----------------------- | -----
|                  |  | ThUS$                       |         |  | ThUS$                                                       |  |         | ThUS$                          |  |  | ThUS$                               |   |  | ThUS$                   |      
|                  |  |                             |         |  |                                                             |  |         |                                |  |  |                                     |   |  |                         |      
|December 31, 2013 |  |                             | 23,602  |  |                                                             |  | (45,312 | )                              |  |  | (3,307                              | ) |  |                         | 661  
|December 31, 2012 |  |                             | 100,647 |  |                                                             |  | 49,453  |                                |  |  | (18,419                             | ) |  |                         | 3,684



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 

F-79







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



| | Note 10 | Financial instruments (continued)
| | ------- | ---------------------------------



| | 10.3 | Hedging assets and liabilities, continued
| | ---- | -----------------------------------------



|Hedging liabilities |  | Derivativeinstruments (IRS) |       |  | Effect on profit orloss for the periodderivativeinstruments |  |        | Hedging reservein gross equity |  |  | Deferred taxhedging reservein equity |   |  | Hedgingreserve inequity |  
|------------------- |  | --------------------------- | ----- |  | ----------------------------------------------------------- |  | ------ | ------------------------------ |  |  | ------------------------------------ | - |  | ----------------------- | -
|                    |  | ThUS$                       |       |  | ThUS$                                                       |  |        | ThUS$                          |  |  | ThUS$                                |   |  | ThUS$                   |  
|                    |  |                             |       |  |                                                             |  |        |                                |  |  |                                      |   |  |                         |  
|December 31, 2014   |  |                             | 736   |  |                                                             |  | (1,050 | )                              |  |  | 596                                  |   |  |                         | -
|December 31, 2013   |  |                             | 1,339 |  |                                                             |  | (93    | )                              |  |  | (1,153                               | ) |  |                         | -
|December 31, 2012   |  |                             | 1,879 |  |                                                             |  | 27     |                                |  |  | (1,786                               | ) |  |                         | -



The balances in
the “effect on profit or loss” column consider the interim effects of the contracts in force as of December 31, 2014,
2013 and 2012.



Derivative contract
maturities are detailed as follows:



|Series |  | Contract amountThUS$ |         |  | Currency |    | Maturity date
|------ |  | -------------------- | ------- |  | -------- | -- | -------------
|C      |  |                      | 73,059  |  |          | UF |              
|H      |  |                      | 162,353 |  |          | UF |              
|M      |  |                      | 40,588  |  |          | UF |              
|O      |  |                      | 60,882  |  |          | UF |              



The Company uses
cross currency swap derivative instruments to hedge the possible financial risk associated with the volatility of the exchange
rate associated with Chilean pesos and UF. The objective is to hedge the exchange rate financial risks associated with bonds payable.
Hedges are documented and tested to measure their effectiveness.



Based on a comparison
of critical terms, hedging is highly effective, given that the hedged amount is consistent with obligations maintained for bonds
denominated in Chilean pesos and UF. Likewise, hedging contracts are denominated in the same currencies and have the same expiration
dates of bond principal and interest payments.



Hedge Accounting



The Company classifies
derivative instruments as hedging that may include derivative or embedded derivatives either as fair value hedge derivative instruments,
cash flow hedge derivative instruments, or hedge derivative instruments for net investment in a business abroad.



a) Fair value
hedge



Changes in fair
values of derivative instruments classified as fair value hedge derivative instruments are accounted for in gains and losses immediately
along with any change in the fair value of the hedged item that is attributable to the risk being hedged.



The Company documents
the relationship between hedge instruments and the hedged item along with the objectives of its risk management and strategy to
carry out different hedging transactions. In addition, upon commencement of the period hedged and then on a quarterly basis the
Company documents whether hedge instruments have been efficient and met the objective of hedging market fluctuations for the purpose
of which we use the effectiveness test. A hedge instrument is deemed effective if the effectiveness test result is between 80%
to 120%.



|SQM S.A.
        Los Militares 4290,
        Las Condes,
        Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|-------------------------------------------------------------------------------------------------------------------------------- | 

F-80















| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



Note
10	Financial instruments (continued)



| | 10.3 | Hedging
                                         assets and liabilities, continued
| | ---- | ----------------------------------------------------------------------------------



The
hedge instruments are classified as effective or not effective on the basis of the effectiveness test results. As of to date,
hedges are classified as effective on the basis of the effectiveness tests. This note includes the detail of fair values of derivatives
classified as hedging instruments.



b)
Cash flow hedges



Cash
flow hedges cover exposure to the cash flow variations attributable to a risk associated with a specific transaction that is very
likely to be executed, that may have material effects on the results of the Company.



| | 10.4 | Financial
                                         liabilities
| | ---- | --------------------------------------------------------------



Other
current and non-current financial liabilities



As
of December 31, 2014 and December 31, 2013, the detail is as follows:



|                            |  | 12/31/2014 |         |  | 12/31/2013  | 
|--------------------------- |  | ---------- | ------- |  | ----------- | 
|                            |  | Current    |         |  | Non-current | 
|                            |  | ThUS$      |         |  | ThUS$       | 
|Bank borrowings             |  |            | 191,116 |  |             | 
|Obligations with the public |  |            | 19,453  |  |             | 
|Derivatives                 |  |            | 1,791   |  |             | 
|Hedging liabilities         |  |            | 812     |  |             | 
|Total                       |  |            | 213,172 |  |             | 



Current
and non-current borrowings



As
of December 31, 2014 and December 31, 2013, the detail is as follows:



|                                                                 |  | 12/31/2014 |         |  | 12/31/2013 | 
|---------------------------------------------------------------- |  | ---------- | ------- |  | ---------- | 
|                                                                 |  | ThUS$      |         |  | ThUS$      | 
|Long-term borrowings                                             |  |            | 219,838 |  |            | 
|Short-term borrowings                                            |  |            | 100,057 |  |            | 
|Current portion
    of long-term borrowings                      |  |            | 91,059  |  |            | 
|Short-term loans
    and current portion of long-term borrowings |  |            | 191,116 |  |            | 
|Total borrowings
    assumed                                     |  |            | 410,954 |  |            | 



|SQM
        S.A.
        Los Militares 4290,
        Las
        Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|---------------------------------------------------------------------------------------------------------------------------------------- | 

F-81







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



Note
10	Financial instruments (continued)



| | 10.4 | Financial
                                         liabilities, continued
| | ---- | -------------------------------------------------------------------------



| | a) | Bank loans,
                                         current:
| | -- | -------------------------------------------------------------



As
of December 31, 2014 and December 31, 2013, the detail of this caption is as follows:





|Debtor       |  | Creditor                              |  | Currency oradjustment |  |              |  | Effective                                             |  |                | Nominal |      
|------------ |  | ------------------------------------- |  | --------------------- |  | ------------ |  | ----------------------------------------------------- |  | -------------- | ------- | -----
|Tax ID No    |  | Subsidiary                            |  | Country               |  | Tax ID No.   |  | Financial institution                                 |  | Country        |         | Index
|93.007.000-9 |  | SQM.S.A.                              |  | Chile                 |  | 97.018.000-1 |  | Scotiabank Sud Americano                              |  | Chile          |         | US$  
|93.007.000-9 |  | SQM.S.A.                              |  | Chile                 |  | 97.018.000-1 |  | Scotiabank Sud Americano                              |  | Chile          |         | US$  
|93.007.000-9 |  | SQM.S.A.                              |  | Chile                 |  | 97.030.000-7 |  | Banco Estado                                          |  | Chile          |         | US$  
|93.007.000-9 |  | SQM S.A.                              |  | Chile                 |  | Foreign      |  | Banco Estado NY Branch                                |  | United States  |         | US$  
|79.626.800-K |  | SQM Salar S.A.                        |  | Chile                 |  | 97.018.000-1 |  | Scotiabank Sud Americano                              |  | Chile          |         | US$  
|79.947.100-0 |  | SQM Industrial S.A.                   |  | Chile                 |  | 97.030.000-7 |  | Banco Estado                                          |  | Chile          |         | US$  
|Foreign      |  | Royal Seed Trading Corporation A.V.V. |  | Aruba                 |  | Foreign      |  | Scotiabank & Trust (Cayman) Ltd.                      |  | Cayman Islands |         | US$  
|Foreign      |  | Royal Seed Trading Corporation A.V.V. |  | Aruba                 |  | Foreign      |  | Bank of America                                       |  | United States  |         | US$  
|Foreign      |  | Royal Seed Trading Corporation A.V.V. |  | Aruba                 |  | Foreign      |  | Export Development Canada                             |  | Canada         |         | US$  
|Foreign      |  | Royal Seed Trading Corporation A.V.V. |  | Aruba                 |  | Foreign      |  | The Bank of Tokyo-Mitsubishi UFJ, Lda.
    (New York) |  | United States  |         | US$  





|                                          |  | 12/31/2014                                            |  |                                                               | 12/31/2014 | 
|----------------------------------------- |  | ----------------------------------------------------- |  | ------------------------------------------------------------- | ---------- | 
|Debtor                                    |  | Creditor                                              |  | Nominal amounts                                               |            | 
|Subsidiary                                |  | Financial institution                                 |  | Up
                                         to 90 
days ThUS$ |            | 
|SQM.S.A.                                  |  | Scotiabank Sud Americano                              |  |                                                               | -          | 
|SQM.S.A.                                  |  | Scotiabank Sud Americano                              |  |                                                               | -          | 
|SQM.S.A.                                  |  | Banco Estado                                          |  |                                                               | -          | 
|SQM S.A.                                  |  | Banco Estado NY Branch                                |  |                                                               | -          | 
|SQM Salar S.A.                            |  | Scotiabank Sud Americano                              |  |                                                               | -          | 
|SQM Industrial S.A.                       |  | Banco Estado                                          |  |                                                               | 20,000     | 
|Royal Seed Trading Corporation A.V.V.     |  | Scotiabank & Trust (Cayman) Ltd.                      |  |                                                               | -          | 
|Royal Seed Trading Corporation A.V.V.     |  | Bank of America                                       |  |                                                               | -          | 
|Royal Seed Trading Corporation A.V.V.     |  | Export Development Canada                             |  |                                                               | -          | 
|Royal Seed Trading
    Corporation A.V.V. |  | The Bank of Tokyo-Mitsubishi
    UFJ, Lda. (New York) |  |                                                               | -          | 
|Total                                     |  |                                                       |  |                                                               | 20,000     | 



|SQM
        S.A.
        Los Militares 4290,
        Las
        Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|---------------------------------------------------------------------------------------------------------------------------------------- | 

F-82







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



Note
10	Financial instruments (continued)



| | 10.4 | Financial
                                         liabilities, continued
| | ---- | -------------------------------------------------------------------------



|Debtor       |  | Creditor                              |  | Currency
                                   or adjustment |  |              |  | Effective                                             |  |                | Nominal |      
|------------ |  | ------------------------------------- |  | --------------------------------------------------------- |  | ------------ |  | ----------------------------------------------------- |  | -------------- | ------- | -----
|Tax ID No    |  | Subsidiary                            |  | Country                                                   |  | Tax ID No.   |  | Financial institution                                 |  | Country        |         | index
|93.007.000-9 |  | SQM.S.A.                              |  | Chile                                                     |  | 97.018.000-1 |  | Scotiabank Sud Americano                              |  | Chile          |         | USD  
|93.007.000-9 |  | SQM.S.A.                              |  | Chile                                                     |  | 97.018.000-1 |  | Scotiabank Sud Americano                              |  | Chile          |         | USD  
|93.007.000-9 |  | SQM S.A.                              |  | Chile                                                     |  | Foreign      |  | Banco Estado NY Branch                                |  | United States  |         | USD  
|79.626.800-K |  | SQM Salar S.A.                        |  | Chile                                                     |  | 97.030.000-7 |  | Banco Estado                                          |  | Chile          |         | USD  
|79.626.800-K |  | SQM Salar S.A.                        |  | Chile                                                     |  | 97.018.000-1 |  | Scotiabank Sud Americano                              |  | Chile          |         | USD  
|79.947.100-0 |  | SQM Industrial S.A.                   |  | Chile                                                     |  | 97.030.000-7 |  | Banco Estado                                          |  | Chile          |         | USD  
|Foreign      |  | Royal Seed Trading Corporation A.V.V. |  | Aruba                                                     |  | Foreign      |  | Bank of America                                       |  | United States  |         | USD  
|Foreign      |  | Royal Seed Trading Corporation A.V.V. |  | Aruba                                                     |  | Foreign      |  | Export Development Canada                             |  | Canada         |         | USD  
|Foreign      |  | Royal Seed Trading Corporation A.V.V. |  | Aruba                                                     |  | Foreign      |  | Scotiabank & Trust (Cayman) Ltd.                      |  | Cayman Islands |         | USD  
|Foreign      |  | Royal Seed Trading Corporation A.V.V. |  | Aruba                                                     |  | Foreign      |  | Scotiabank & Trust (Cayman) Ltd.                      |  | Cayman Islands |         | USD  
|Foreign      |  | Royal Seed Trading Corporation A.V.V. |  | Aruba                                                     |  | Foreign      |  | The Bank of Tokyo-Mitsubishi UFJ, Lda.
    (New York) |  | United States  |         | USD  



|                                          |  |                                                       |  | 12/31//2013                                                  |        |  | 12/31/2013                                                                                                | 
|----------------------------------------- |  | ----------------------------------------------------- |  | ------------------------------------------------------------ | ------ |  | --------------------------------------------------------------------------------------------------------- | 
|Debtor                                    |  | Creditor                                              |  | Nominal amounts                                              |        |  | Current amounts                                                                                           | 
|Filial                                    |  | Financial institution                                 |  | Up
                                         to 90 days ThUS$ |        |  | 90
                                         days to 1
                                         year ThUS$ | 
|SQM.S.A.                                  |  | Scotiabank Sud Americano                              |  |                                                              | -      |  |                                                                                                           | 
|SQM.S.A.                                  |  | Scotiabank Sud Americano                              |  |                                                              | -      |  |                                                                                                           | 
|SQM S.A.                                  |  | Banco Estado NY Branch                                |  |                                                              | -      |  |                                                                                                           | 
|SQM Salar S.A.                            |  | Banco Estado                                          |  |                                                              | 20,000 |  |                                                                                                           | 
|SQM Salar S.A.                            |  | Scotiabank Sud Americano                              |  |                                                              | -      |  |                                                                                                           | 
|SQM Industrial S.A.                       |  | Banco Estado                                          |  |                                                              | -      |  |                                                                                                           | 
|Royal Seed Trading Corporation A.V.V.     |  | Bank of America                                       |  |                                                              | -      |  |                                                                                                           | 
|Royal Seed Trading Corporation A.V.V.     |  | Export Development Canada                             |  |                                                              | -      |  |                                                                                                           | 
|Royal Seed Trading Corporation A.V.V.     |  | Scotiabank & Trust (Cayman) Ltd.                      |  |                                                              | -      |  |                                                                                                           | 
|Royal Seed Trading Corporation A.V.V.     |  | Scotiabank & Trust (Cayman) Ltd.                      |  |                                                              | -      |  |                                                                                                           | 
|Royal Seed Trading
    Corporation A.V.V. |  | The Bank of Tokyo-Mitsubishi
    UFJ, Lda. (New York) |  |                                                              | -      |  |                                                                                                           | 
|Total                                     |  |                                                       |  |                                                              | 20,000 |  |                                                                                                           | 



|SQM
        S.A.
        Los Militares 4290,
        Las
        Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|---------------------------------------------------------------------------------------------------------------------------------------- | 

F-83







| | Notes
    to the Consolidated Financial Statements as of December 31, 2014
| | --------------------------------------------------------------------------



Note
10	Financial instruments (continued)



| | 10.4 | Financial
                                         liabilities, continued
| | ---- | -------------------------------------------------------------------------



| | b) | Unsecured
                                         obligations, current:
| | -- | ------------------------------------------------------------------------



As
of December 31, 2014 and December 31, 2013, the detail of current unsecured interest-bearing obligations is composed of promissory
notes and bonds, as follows:



Bonds





|Debtor       |  | Number
                                         of registration
                                         or ID of
                                         the instrument |  | Series |  | Maturitydate |  | Currency
                                         or adjustment
                                                      index |  | Periodicity |  | Effective rate |  |                                                              | Nominalrate |              
|------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------ |  | ------------ |  | --------------------------------------------------------------------------------------------------------------------------- |  | ----------- |  | -------------- |  | ------------------------------------------------------------ | ----------- | -------------
|Tax ID No.   |  | Subsidiary                                                                                                                                                                |  | País   |  |              |  |                                                                                                                             |  |             |  |                |  | Payment
                                         of interest |             | Repayment    
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile  |  | -            |  | ThUS$200,000                                                                                                                |  | 04/15/2015  |  | US$            |  | Semiannual                                                   |             | Upon maturity
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile  |  | -            |  | ThUS$250,000                                                                                                                |  | 04/21/2015  |  | US$            |  | Semiannual                                                   |             | Upon maturity
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile  |  | -            |  | ThUS$250,000                                                                                                                |  | 01/28/2015  |  | US$            |  | Semiannual                                                   |             | Upon maturity
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile  |  | -            |  | ThUS$300,000                                                                                                                |  | 04/03/2015  |  | US$            |  | Semiannual                                                   |             | Upon maturity
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile  |  | 446          |  | C                                                                                                                           |  | 06/01/2015  |  | UF             |  | Semiannual                                                   |             | Semiannual   
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile  |  | 564          |  | H                                                                                                                           |  | 01/05/2015  |  | UF             |  | Semiannual                                                   |             | Semiannual   
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile  |  | 700          |  | M                                                                                                                           |  | 02/01/2015  |  | UF             |  | Semiannual                                                   |             | Upon maturity
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile  |  | 699          |  | O                                                                                                                           |  | 02/01/2015  |  | UF             |  | Semiannual                                                   |             | Upon maturity



|           |  |         |  | 12/31/2014         |  |                                                        | 12/31/2014         | 
|---------- |  | ------- |  | ------------------ |  | ------------------------------------------------------ | ------------------ | 
|           |  |         |  | Nominal maturities |  |                                                        | Current maturities | 
|Subsidiary |  | Country |  | Series             |  | Up
                                         to 90 days |                    | 
|           |  |         |  |                    |  | ThUS$                                                  |                    | 
|SQM S.A.   |  | Chile   |  | ThUS$200,000       |  |                                                        | -                  | 
|SQM S.A.   |  | Chile   |  | ThUS$250,000       |  |                                                        | -                  | 
|SQM S.A.   |  | Chile   |  | ThUS$250,000       |  |                                                        | -                  | 
|SQM S.A.   |  | Chile   |  | ThUS$300,000       |  |                                                        | -                  | 
|SQM S.A.   |  | Chile   |  | C                  |  |                                                        | -                  | 
|SQM S.A.   |  | Chile   |  | H                  |  |                                                        | -                  | 
|SQM S.A.   |  | Chile   |  | M                  |  |                                                        | -                  | 
|SQM S.A.   |  | Chile   |  | O                  |  |                                                        | -                  | 
|Total      |  |         |  |                    |  |                                                        | -                  | 



Effective
rates of bonds in Chilean pesos and UF are expressed and calculated in U.S. dollars based on the flows agreed in Cross Currency
Swap Agreements.



|SQM
        S.A.
        Los Militares 4290,
        Las
        Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|---------------------------------------------------------------------------------------------------------------------------------------- | 

F-84









| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 10	Financial
instruments (continued)



| | 10.4 | Financial liabilities, continued
| | ---- | --------------------------------





|Debtor       |  | Number
                                         of registration
                                         or ID of
                                         the instrument |  | Series  |  | Maturity date |  | Currency
                                         or adjustment index |  | Periodicity |  | Effective rate |  |                                                              | Nominal rate |              
|------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------- |  | ------------- |  | --------------------------------------------------------------------- |  | ----------- |  | -------------- |  | ------------------------------------------------------------ | ------------ | -------------
|Tax ID No.   |  | Subsidiary                                                                                                                                                                |  | Country |  |               |  |                                                                       |  |             |  |                |  | Payment
                                         of interest |              | Repayment    
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile   |  | -             |  | ThUS$200,000                                                          |  | 04/15/2014  |  | US$            |  | Semiannual                                                   |              | Upon maturity
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile   |  | -             |  | ThUS$250,000                                                          |  | 04/21/2014  |  | US$            |  | Semiannual                                                   |              | Upon maturity
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile   |  | -             |  | ThUS$300,000                                                          |  | 04/03/2014  |  | US$            |  | Semiannual                                                   |              | Upon maturity
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile   |  | 446           |  | C                                                                     |  | 06/01/2014  |  | UF             |  | Semiannual                                                   |              | Semiannual   
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile   |  | 563           |  | G                                                                     |  | 01/05/2014  |  | Ch$            |  | Semiannual                                                   |              | Upon maturity
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile   |  | 564           |  | H                                                                     |  | 01/05/2014  |  | UF             |  | Semiannual                                                   |              | Semiannual   
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile   |  | 563           |  | I                                                                     |  | 04/01/2014  |  | UF             |  | Semiannual                                                   |              | Upon maturity
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile   |  | 563           |  | J                                                                     |  | 04/01/2014  |  | Ch$            |  | Semiannual                                                   |              | Upon maturity
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile   |  | 700           |  | M                                                                     |  | 02/01/2014  |  | UF             |  | Semiannual                                                   |              | Upon maturity
|93.007.000-9 |  | SQM S.A.                                                                                                                                                                  |  | Chile   |  | 699           |  | O                                                                     |  | 02/01/2014  |  | UF             |  | Semiannual                                                   |              | Upon maturity







|           |  |         |  | 12/31/2013         |  |                                                        | 12/31/2013         | 
|---------- |  | ------- |  | ------------------ |  | ------------------------------------------------------ | ------------------ | 
|           |  |         |  | Nominal maturities |  |                                                        | Current maturities | 
|Subsidiary |  | Country |  | Series             |  | Up
                                         to 90 days |                    | 
|           |  |         |  |                    |  | ThUS$                                                  |                    | 
|SQM S.A.   |  | Chile   |  | ThUS$200,000       |  |                                                        | -                  | 
|SQM S.A.   |  | Chile   |  | ThUS$250,000       |  |                                                        | -                  | 
|SQM S.A.   |  | Chile   |  | ThUS$300,000       |  |                                                        | -                  | 
|SQM S.A.   |  | Chile   |  | C                  |  |                                                        | -                  | 
|SQM S.A.   |  | Chile   |  | G                  |  |                                                        | 40,030             | 
|SQM S.A.   |  | Chile   |  | H                  |  |                                                        | -                  | 
|SQM S.A.   |  | Chile   |  | I                  |  |                                                        | 66,648             | 
|SQM S.A.   |  | Chile   |  | J                  |  |                                                        | 99,121             | 
|SQM S.A.   |  | Chile   |  | M                  |  |                                                        | -                  | 
|SQM S.A.   |  | Chile   |  | O                  |  |                                                        | -                  | 
|Total      |  |         |  |                    |  |                                                        | 205,799            | 



Effective rates of bonds in Chilean pesos and UF are expressed
and calculated in U.S. dollars based on the flows agreed in Cross Currency Swap Agreements.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-85







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 10	Financial
instruments (continued)



| | 10.4 | Financial liabilities, continued
| | ---- | --------------------------------



| | c) | Types of interest-bearing borrowings, non-current
| | -- | -------------------------------------------------



Non-current interest-bearing borrowings
as of December 31, 2014 and December 31, 2013 are detailed as follows:



|Debtor       |  | Creditor                              |  | Currency
                                   or adjustment |  |            |  | Effective                                        |  |                | Nominal |      
|------------ |  | ------------------------------------- |  | --------------------------------------------------------- |  | ---------- |  | ------------------------------------------------ |  | -------------- | ------- | -----
|Tax ID No.   |  | Subsidiary                            |  | Country                                                   |  | Tax ID No. |  | Financial institution                            |  | Country        |         | index
|93.007.000-9 |  | SQM S.A.                              |  | Chile                                                     |  | Foreign    |  | Banco Estado NY Branch                           |  | United States  |         | US$  
|Foreign      |  | Royal Seed Trading Corporation A.V.V. |  | Aruba                                                     |  | Foreign    |  | Scotiabank & Trust (Caimán) Ltd.                 |  | Cayman Islands |         | US$  
|Foreign      |  | Royal Seed Trading Corporation A.V.V. |  | Aruba                                                     |  | Foreign    |  | Bank of America                                  |  | United States  |         | US$  
|Foreign      |  | Royal Seed Trading Corporation A.V.V. |  | Aruba                                                     |  | Foreign    |  | Export Development Canada                        |  | Canada         |         | US$  
|Foreign      |  | Royal Seed Trading Corporation A.V.V. |  | Aruba                                                     |  | Foreign    |  | The Bank of Tokyo-Mitsubishi UFJ, Ltd (New York) |  | United States  |         | US$  



|                                      |  |                                                      |  | Nominal non-current maturities                                                                      |   |  | Non-current maturities                                                                              | 
|------------------------------------- |  | ---------------------------------------------------- |  | --------------------------------------------------------------------------------------------------- | - |  | --------------------------------------------------------------------------------------------------- | 
|                                      |  |                                                      |  | 31/12/2014                                                                                          |   |  | 31/12/2014                                                                                          | 
|Subsidiary                            |  | Financial institution                                |  | Over
                                         1 years to
                                         2 |   |  | Over
                                         2 years to
                                         3 | 
|                                      |  |                                                      |  | ThUS$                                                                                               |   |  | ThUS$                                                                                               | 
|SQM S.A.                              |  | Banco Estado NY Branch                               |  |                                                                                                     | - |  |                                                                                                     | 
|Royal Seed Trading Corporation A.V.V. |  | Bank of America                                      |  |                                                                                                     | - |  |                                                                                                     | 
|Royal Seed Trading Corporation A.V.V. |  | Export Development Canada                            |  |                                                                                                     | - |  |                                                                                                     | 
|Royal Seed Trading Corporation A.V.V. |  | The Bank of Tokyo-Mitsubishi UFJ, Ltd (New
    York) |  |                                                                                                     | - |  |                                                                                                     | 
|Total                                 |  |                                                      |  |                                                                                                     | - |  |                                                                                                     | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-86







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 10	Financial
instruments (continued)



| | 10.4 | Financial liabilities, continued
| | ---- | --------------------------------



|Debtor       |  | Creditor                              |  | Currency or adjustment |  |             |  | Effective                                        |  |               | Nominal |      
|------------ |  | ------------------------------------- |  | ---------------------- |  | ----------- |  | ------------------------------------------------ |  | ------------- | ------- | -----
|Tax ID No.   |  | Subsidiary                            |  | Country                |  | Tax ID  No. |  | Financial institution                            |  | Country       |         | index
|93.007.000-9 |  | SQM S.A.                              |  | Chile                  |  | Foreign     |  | Banco Estado NY Branch                           |  | United States |         | USD  
|Foreign      |  | Royal Seed Trading Corporation A.V.V. |  | Aruba                  |  | Foreign     |  | Scotiabank & Trust (Caimán) Ltd.                 |  | Islas Caimán  |         | USD  
|Foreign      |  | Royal Seed Trading Corporation A.V.V. |  | Aruba                  |  | Foreign     |  | Bank of America                                  |  | United States |         | USD  
|Foreign      |  | Royal Seed Trading Corporation A.V.V. |  | Aruba                  |  | Foreign     |  | Export Development Canada                        |  | Canada        |         | USD  
|Foreign      |  | Royal Seed Trading Corporation A.V.V. |  | Aruba                  |  | Foreign     |  | The Bank of Tokyo-Mitsubishi UFJ, Ltd (New York) |  | United States |         | USD  



|                                      |  |                                                      |  | Nominal non-current maturities                                                                      |        |  | Non-current maturities                                                                              | 
|------------------------------------- |  | ---------------------------------------------------- |  | --------------------------------------------------------------------------------------------------- | ------ |  | --------------------------------------------------------------------------------------------------- | 
|                                      |  |                                                      |  | 12/31/2013                                                                                          |        |  | 12/31/2013                                                                                          | 
|Subsidiary                            |  | Financial institution                                |  | Over
                                         1 years to
                                         2 |        |  | Over
                                         2 years to
                                         3 | 
|                                      |  |                                                      |  | ThUS$                                                                                               |        |  | ThUS$                                                                                               | 
|SQM S.A.                              |  | Banco Estado NY Branch                               |  |                                                                                                     | -      |  |                                                                                                     | 
|Royal Seed Trading Corporation A.V.V. |  | Scotiabank & Trust (Caimán) Ltd.                     |  |                                                                                                     | 50,000 |  |                                                                                                     | 
|Royal Seed Trading Corporation A.V.V. |  | Bank of America                                      |  |                                                                                                     | -      |  |                                                                                                     | 
|Royal Seed Trading Corporation A.V.V. |  | Export Development Canada                            |  |                                                                                                     | -      |  |                                                                                                     | 
|Royal Seed Trading Corporation A.V.V. |  | The Bank of Tokyo-Mitsubishi UFJ, Ltd (New
    York) |  |                                                                                                     | -      |  |                                                                                                     | 
|Total                                 |  |                                                      |  |                                                                                                     | 50,000 |  |                                                                                                     | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-87







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 10	Financial
instruments (continued)



| | 10.4 | Financial liabilities, continued
| | ---- | --------------------------------



| | d) | Non-current unsecured interest-bearing bonds
| | -- | --------------------------------------------



The breakdown of non-current unsecured
interest-bearing bonds as of December 31, 2014 and December 31, 2013 is detailed as follows:



|             |  |            |  |         |  |                                                                                                                                                                     |  |              |  |               |  |                                                                                                          |  | Periodicity                                            |  |               |  |                |      |  
|------------ |  | ---------- |  | ------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------ |  | ------------- |  | -------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------ |  | ------------- |  | -------------- | ---- | -
|Tax ID No.   |  | Subsidiary |  | Country |  | Number
                                   of registration
                                         or ID of
                                         the instrument |  | Series       |  | Maturity date |  | Currency
                                   or adjustment
                                         index |  | Payment
                                   of interest |  | Repayment     |  | Effective rate |      |  
|93.007.000-9 |  | SQM S.A.   |  | Chile   |  | -                                                                                                                                                                   |  | ThUS$200,000 |  | 04/15/2016    |  | US$                                                                                                      |  | Semiannual                                             |  | Upon maturity |  |                | 6.25 | %
|93.007.000-9 |  | SQM S.A.   |  | Chile   |  | -                                                                                                                                                                   |  | ThUS$250,000 |  | 04/21/2020    |  | US$                                                                                                      |  | Semiannual                                             |  | Upon maturity |  |                | 5.67 | %
|93.007.000-9 |  | SQM S.A.   |  | Chile   |  | -                                                                                                                                                                   |  | ThUS$250,000 |  | 01/28/2025    |  | US$                                                                                                      |  | Semiannual                                             |  | Upon maturity |  |                | 4.46 | %
|93.007.000-9 |  | SQM S.A.   |  | Chile   |  | -                                                                                                                                                                   |  | ThUS$300,000 |  | 04/03/2023    |  | US$                                                                                                      |  | Semiannual                                             |  | Upon maturity |  |                | 3.86 | %
|93.007.000-9 |  | SQM S.A.   |  | Chile   |  | 446                                                                                                                                                                 |  | C            |  | 12/01/2026    |  | UF                                                                                                       |  | Semiannual                                             |  | Semiannual    |  |                | 6.34 | %
|93.007.000-9 |  | SQM S.A.   |  | Chile   |  | 564                                                                                                                                                                 |  | H            |  | 01/05/2030    |  | UF                                                                                                       |  | Semiannual                                             |  | Semiannual    |  |                | 4.23 | %
|93.007.000-9 |  | SQM S.A.   |  | Chile   |  | 700                                                                                                                                                                 |  | M            |  | 02/01/2017    |  | UF                                                                                                       |  | Semiannual                                             |  | Upon maturity |  |                | 3.20 | %
|93.007.000-9 |  | SQM S.A.   |  | Chile   |  | 699                                                                                                                                                                 |  | O            |  | 02/01/2033    |  | UF                                                                                                       |  | Semiannual                                             |  | Upon maturity |  |                | 3.74 | %



|Nominal
                                         non-current maturities 12/31/2014 |  | Non-current
                                         maturities 12/31/2014                         |        
|---------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------- | -------
|Series                                                                             |  | Over
                                         1 year
                                         to 2 |        
|                                                                                   |  | ThUS$                                                                                              |        
|ThUS$200,000                                                                       |  |                                                                                                    | 200,000
|ThUS$250,000                                                                       |  |                                                                                                    | -      
|ThUS$250,000                                                                       |  |                                                                                                    | -      
|ThUS$300,000                                                                       |  |                                                                                                    | -      
|C                                                                                  |  |                                                                                                    | 6,088  
|H                                                                                  |  |                                                                                                    | -      
|M                                                                                  |  |                                                                                                    | -      
|O                                                                                  |  |                                                                                                    | -      
|Total                                                                              |  |                                                                                                    | 206,088



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-88







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 10	Financial
instruments (continued)



| | 10.4 | Financial liabilities, continued
| | ---- | --------------------------------



| | d) | Unsecured interest-bearing liabilities, non-current, continued
| | -- | --------------------------------------------------------------



As of December 31, 2014 and December
31, 2013, the breakdown of unsecured interest-bearing liabilities, non-current is as follows:



|             |  |            |  |         |  |                                                                                                                                                                     |  |              |  |               |  |                                                                                                          |  | Periodicity                                            |  |               |  |                 |      |  
|------------ |  | ---------- |  | ------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------ |  | ------------- |  | -------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------ |  | ------------- |  | --------------- | ---- | -
|Tax ID No.   |  | Subsidiary |  | Country |  | Number
                                   of registration
                                         or ID of
                                         the instrument |  | Series       |  | Maturity date |  | Currency
                                   or adjustment
                                         index |  | Payment
                                   of interest |  | Repayment     |  | Effective
 rate |      |  
|93.007.000-9 |  | SQM S.A.   |  | Chile   |  | -                                                                                                                                                                   |  | ThUS$200,000 |  | 04/15/2016    |  | US$                                                                                                      |  | Semiannual                                             |  | Upon maturity |  |                 | 6.32 | %
|93.007.000-9 |  | SQM S.A.   |  | Chile   |  | -                                                                                                                                                                   |  | ThUS$250,000 |  | 04/21/2020    |  | US$                                                                                                      |  | Semiannual                                             |  | Upon maturity |  |                 | 5.70 | %
|93.007.000-9 |  | SQM S.A.   |  | Chile   |  | -                                                                                                                                                                   |  | ThUS$300,000 |  | 04/03/2023    |  | US$                                                                                                      |  | Semiannual                                             |  | Upon maturity |  |                 | 3.87 | %
|93.007.000-9 |  | SQM S.A.   |  | Chile   |  | 446                                                                                                                                                                 |  | C            |  | 12/01/2026    |  | UF                                                                                                       |  | Semiannual                                             |  | Semiannual    |  |                 | 4.44 | %
|93.007.000-9 |  | SQM S.A.   |  | Chile   |  | 564                                                                                                                                                                 |  | H            |  | 01/05/2030    |  | UF                                                                                                       |  | Semiannual                                             |  | Semiannual    |  |                 | 5.10 | %
|93.007.000-9 |  | SQM S.A.   |  | Chile   |  | 700                                                                                                                                                                 |  | M            |  | 02/01/2017    |  | UF                                                                                                       |  | Semiannual                                             |  | Upon maturity |  |                 | 3.62 | %
|93.007.000-9 |  | SQM S.A.   |  | Chile   |  | 699                                                                                                                                                                 |  | O            |  | 02/01/2033    |  | UF                                                                                                       |  | Semiannual                                             |  | Upon maturity |  |                 | 3.95 | %



|Nominal
                                         non-current maturities 12/31/2013 |  | Non-current
                                         maturities 12/31/2013                         |      
|---------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------- | -----
|Series                                                                             |  | Over
                                         1 year
                                         to 2 |      
|                                                                                   |  | ThUS$                                                                                              |      
|ThUS$200,000                                                                       |  |                                                                                                    | -    
|ThUS$250,000                                                                       |  |                                                                                                    | -    
|ThUS$300,000                                                                       |  |                                                                                                    | -    
|C                                                                                  |  |                                                                                                    | 6,665
|H                                                                                  |  |                                                                                                    | -    
|M                                                                                  |  |                                                                                                    | -    
|O                                                                                  |  |                                                                                                    | -    
|Total                                                                              |  |                                                                                                    | 6,665



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-89







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 10	Financial
instruments (continued)



| | 10.4 | Financial liabilities, continued
| | ---- | --------------------------------



| | e) | Additional information
| | -- | ----------------------



Bonds



As of December 31, 2014 and December
31, 2013, bonds of ThUS$19,453 and ThUS$227,652 respectively were classified as short-term, consisting of the current portion due
plus accrued interest to date, excluding bond issue costs. The non-current portion consisted of ThUS$1,317,429 as of December 31,
2014 and ThUS$1,106,496 as of December 31, 2013, corresponding to the issuance of series C bonds, Single series bonds (ThUS$200),
series H bonds second issue single series bonds (ThUS$250), series M bonds, series O bonds, third issue single series bonds (ThUS$300)
and fourth issue single series bonds (ThUS$250) excluding debt issue costs.



As of December 31, 2014 and December
31, 2013, the details of each issuance are as follows:



Series “C” bonds



On January 24, 2006, the Company placed
Series C bonds for UF 3,000,000 (ThUS$101,918) at an annual rate of 4.00%.



As of December 31, 2014, 2013 and 2012,
the Company has made the following payments with a charge to the Series C bonds:



|Payments made     |  | 12/31/2014 |       |  | 12/31/2013 |  |       | 12/31/2012 | 
|----------------- |  | ---------- | ----- |  | ---------- |  | ----- | ---------- | 
|                  |  | ThUS$      |       |  | ThUS$      |  |       | ThUS$      | 
|Principal payment |  |            | 6,301 |  |            |  | 6.858 |            | 
|Interest payment  |  |            | 3,184 |  |            |  | 4,004 |            | 



Single series first issue ThUS$200,000



On April 5, 2006, the Company placed
Single Series bonds for ThUS$200,000 at an annual rate of 6.125% under "Rule 144 and regulation S of the U.S. Securities Act
of 1933."



As of December 31, 2014, 2013 and 2012,
the Company has made the following payments with a charge to the Single Series bonds:



|Payments made        |  | 12/31/2014 ThUS$ |        |  | 12/31/2013 ThUS$ |  |        | 12/31/2012 ThUS$ | 
|-------------------- |  | ---------------- | ------ |  | ---------------- |  | ------ | ---------------- | 
|Payments of interest |  |                  | 12,250 |  |                  |  | 12,250 |                  | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-90







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 10	Financial
instruments (continued)



| | 10.4 | Financial liabilities, continued
| | ---- | --------------------------------



Series “G” and “H”
bonds



On January 13, 2009, the Company placed two
bond series in the domestic market. Series H for UF 4,000,000 (ThUS$139,216) at an annual interest rate of 4.9% at a term of 21
years with payment of principal beginning in 2019 and Series G for ThCh$ 21,000,000 (ThUS$34,146), which was placed at a term of
5 years with a single payment at the maturity of the term and an annual interest rate of 7%.



As of December 31, 2014, 2013 and 2012,
the Company has made the following payments with a charge to the Series G and H bonds:



|Payments made                          |  | 12/31/2014 ThUS$ |        |  | 12/31/2013 ThUS$ |  |       | 12/31/2012 ThUS$ | 
|-------------------------------------- |  | ---------------- | ------ |  | ---------------- |  | ----- | ---------------- | 
|Payment of principal of Series G bonds |  |                  | 39,713 |  |                  |  | -     |                  | 
|Payments of interest, Series G bonds   |  |                  | 1,366  |  |                  |  | 2,845 |                  | 
|Payments of interest, Series H bonds   |  |                  | 8,496  |  |                  |  | 8,565 |                  | 



Series “J” and “I” bonds



On May 8, 2009, the Company placed two bond
series in the domestic market. Series J for ThCh$52,000,000 (ThUS$92,456) which was placed at a term of 5 years with single payment
at the expiration date of the term and annual interest rate of 5.5% and Series I for UF 1,500,000 (ThUS$56,051) which was placed
at a term of 5 years with single payment at the maturity of the term and annual interest rate of 3.00%.



As of December 31, 2014, 2013 and 2012, the
Company has made the following payments with a charge to the Series J and I bonds:



|Payments made                        |  | 12/31/2014 ThUS$ |        |  | 12/31/2013 ThUS$ |  |       | 12/31/2012 ThUS$ | 
|------------------------------------ |  | ---------------- | ------ |  | ---------------- |  | ----- | ---------------- | 
|Payments of principal Series J bonds |  |                  | 94,454 |  |                  |  | -     |                  | 
|Payment of interest, Series J bonds  |  |                  | 2,563  |  |                  |  | 5,879 |                  | 
|Payments of principal Series I bonds |  |                  | 64,083 |  |                  |  | -     |                  | 
|Payment of interest, Series I bonds  |  |                  | 1,206  |  |                  |  | 2,100 |                  | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-91







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 10	Financial
instruments (continued)



| | 10.4 | Financial liabilities, continued
| | ---- | --------------------------------



Single series bonds, second issue ThUS$250,000



On April 21, 2010, the Company informed
the Chilean Superintendence of Securities and Insurance of its placement in international markets of an unsecured bond of ThUS$250,000
with a maturity of 10 years beginning on the aforementioned date with an annual interest rate of 5.5% and destined to refinance
long-term liabilities.



As of December 31, 2014, 2013 and 2012, the
detail of payments charged to the line of single series bonds, second issue is as follows:



|Payments made    |  | 12/31/2014 ThUS$ |        |  | 12/31/2013 ThUS$ |  |        | 12/31/2012 ThUS$ | 
|---------------- |  | ---------------- | ------ |  | ---------------- |  | ------ | ---------------- | 
|Interest payment |  |                  | 13,750 |  |                  |  | 13,750 |                  | 



Series “M” and “O” bonds



On April 4, 2012, the Company placed two bond
series in the domestic market. Series M for UF 1,000,000 (ThUS$46,601) was placed at a term of 5 years with a single payment at
the maturity of the term and an annual interest rate of 3.3%, and Series O for UF 1,500,000 (ThUS$69,901) was placed at a term
of 21 years with a single payment at the maturity of the term and an annual interest rate of 3.80%



As of December 31, 2014, 2013 and 2012
the Company has made the following payments with a charge to the Series M and O bonds:



|Payments made                       |  | 12/31/2014 ThUS$ |       |  | 12/31/2013 ThUS$ |  |       | 12/31/2012 ThUS$ | 
|----------------------------------- |  | ---------------- | ----- |  | ---------------- |  | ----- | ---------------- | 
|Payment of interest, Series M bonds |  |                  | 1,380 |  |                  |  | 765   |                  | 
|Payment of interest, Series O bonds |  |                  | 2,381 |  |                  |  | 1,320 |                  | 



Single series bonds, third issue ThUS$300,000



On April 3, 2013 in the United States, the Company issued
a non-guaranteed bond with a value of US$ 300 million. The bond is for a 10 year term with an annual coupon rate of 3.625% and
an annual yield of 3.716%. This rate equates to a difference of 180 basis points to comparable US Treasury bonds. The funds raised
will be used to refinance long term liabilities and finance general corporate objectives.



As of December 31, 2014, 2013 and 2012,
the following payments have been made with a debit to the line of single-series bonds, third issue:



|Payments made       |  | 12/31/2014 ThUS$ |        |  | 12/31/2013 ThUS$ |  |       | 12/31/2012 ThUS$ | 
|------------------- |  | ---------------- | ------ |  | ---------------- |  | ----- | ---------------- | 
|Payment of interest |  |                  | 10,875 |  |                  |  | 5,438 |                  | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-92







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 10	Financial
instruments (continued)



| | 10.4 | Financial liabilities, continued
| | ---- | --------------------------------



Single series bonds, fourth issuance ThUS$ 250



On October 23, 2014, the Company informed
the Chilean Superintendence of Securities and Insurance that Sociedad Química y Minera de Chile S.A. agreed to issue and
place unsecured bonds of ThUS$ 250,000 in international markets. This, essentially, maturing in 2025 with a cover annual interest
rate of 4.375% equivalent to a spread of 215 basis points on comparable US Treasury bonds, which were offered to the investors
at a price of 99.410% with respect to capital. The aforementioned agreement was agreed on October 23, 2014 and the issuance and
placement of such bonds was performed in conformity with the provisions of Rule 144A of the US Securities Act of 1933 and these
bonds will not be publicly offered in Chile.



As of December 31, 2014, no payments
have been made.



| | 10.5 | Trade and other payables
| | ---- | ------------------------



|                       |  | 12/31/2014 |         |  | 12/31/2013   | 
|---------------------- |  | ---------- | ------- |  | ------------ | 
|                       |  | Current    |         |  | Non-
current | 
|                       |  | ThUS$      |         |  | ThUS$        | 
|                       |  |            |         |  |              | 
|Accounts payable       |  |            | 144,998 |  |              | 
|Retained  (or accrued) |  |            | 162     |  |              | 
|Total                  |  |            | 145,160 |  |              | 



Purchase commitments held by the Company
are recognized as liabilities when the goods and services are received by the Company. As of December 31, 2014, the Company has
purchase orders amounting to ThUS$15,966 (ThUS$29,395 as of December 31, 2013).



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-93







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 10	Financial
instruments (continued)



| | 10.6 | Financial liabilities at fair value through profit or loss
| | ---- | ----------------------------------------------------------



This balance relates to derivative instruments
measured at their fair value, which has generated balances against the Company. The detail of this type of instrument is as follows:



|Financial liabilities at fair value 
through profit or loss |  | 12/31/2014 |       |  | Effect on profit or loss as of 12/31/2014 |  |       | 12/31/2013 |  |  | Effect on profit or loss as of 12/31/2013 |  |  | 12/31/2012 |       |  | Effect on profit or loss as of 12/31/2012 | 
|----------------------------------------------------------- |  | ---------- | ----- |  | ----------------------------------------- |  | ----- | ---------- |  |  | ----------------------------------------- |  |  | ---------- | ----- |  | ----------------------------------------- | 
|                                                            |  | ThUS$      |       |  | ThUS$                                     |  |       | ThUS$      |  |  | ThUS$                                     |  |  | ThUS$      |       |  | ThUS$                                     | 
|Current                                                     |  |            |       |  |                                           |  |       |            |  |  |                                           |  |  |            |       |  |                                           | 
|Derivative instruments (forward)                            |  |            | 457   |  |                                           |  | -     |            |  |  | 423                                       |  |  |            | 5,100 |  |                                           | 
|Derivative instruments (options)                            |  |            | 1,410 |  |                                           |  | -     |            |  |  | 665                                       |  |  |            | 1,827 |  |                                           | 
|Derivative instruments (IRS)                                |  |            | 736   |  |                                           |  | 1,637 |            |  |  | 1,339                                     |  |  |            | 251   |  |                                           | 
|                                                            |  |            | 2,603 |  |                                           |  | 1,637 |            |  |  | 2,427                                     |  |  |            | 7,178 |  |                                           | 



Balances in the column effect on profit
or loss consider the effects of agreements which were in force as of December 31, 2014, including derivates, received during the
year.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-94







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 10	Financial
instruments (continued)



| | 10.7 | Financial asset and liability categories
| | ---- | ----------------------------------------



| | a) | Financial Assets
| | -- | ----------------



|                                                                  |  | 12/31/2014   |           |  | 12/31/2013   | 
|----------------------------------------------------------------- |  | ------------ | --------- |  | ------------ | 
|                                                                  |  | Current      |           |  | Non-current  | 
|Description of financial assets                                   |  | Amount ThUS$ |           |  | Amount ThUS$ | 
|                                                                  |  |              |           |  |              | 
|Financial assets measured at amortized cost                       |  |              | 653,442   |  |              | 
|Investments held-to-maturity measured at amortized cost           |  |              | -         |  |              | 
|Loans and receivables measured at amortized cost                  |  |              | 340,830   |  |              | 
|Total financial
    assets measured at amortized cost             |  |              | 994,272   |  |              | 
|                                                                  |  |              |           |  |              | 
|Financial assets at fair value through profit or loss             |  |              | 17,160    |  |              | 
|Financial assets at fair value through other comprehensive income |  |              | -         |  |              | 
|Total financial
    assets at fair value                          |  |              | 17,160    |  |              | 
|Total financial
    assets                                        |  |              | 1,011,432 |  |              | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-95







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 10	Financial
instruments (continued)



| | 10.7 | Financial asset and liability categories (continued)
| | ---- | ----------------------------------------------------



| | b) | Financial liabilities
| | -- | ---------------------



|                                                               |  | 12/31/2014   |         |  | 12/31/2013   | 
|-------------------------------------------------------------- |  | ------------ | ------- |  | ------------ | 
|                                                               |  | Current      |         |  | Non-current  | 
|Description of financial liabilities                           |  | Amount ThUS$ |         |  | Amount ThUS$ | 
|                                                               |  |              |         |  |              | 
|Financial liabilities at fair value through profit or loss     |  |              | 2,603   |  |              | 
|Financial liabilities
    at fair value through profit or loss |  |              | 2,603   |  |              | 
|                                                               |  |              |         |  |              | 
|                                                               |  |              |         |  |              | 
|Financial liabilities measured at amortized cost               |  |              | 355,729 |  |              | 
|Total financial
    liabilities measured at amortized cost     |  |              | 355,729 |  |              | 
|Total financial
    liabilities                                |  |              | 358,332 |  |              | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-96







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 10	Financial
instruments (continued)



| | 10.8 | Fair value measurement of assets and liabilities
| | ---- | ------------------------------------------------



Financial assets and liabilities measured
at fair value consist of Options and Forwards hedging the mismatch in the balance sheet and cash flows, Cross Currency Swaps (CCS)
to hedge bonds issued in local currency ($/UF), and Interest Rate Swaps (IRS) to hedge LIBOR rate debt issued.



The value of the Company’s assets
and liabilities recognized by CCS contracts is calculated as the difference between the present value of discounted cash flows
of the asset (pesos/UF) and liability (US$) parts of the derivative. In the case of the IRS, the asset value recognized is calculated
as the difference between the discounted cash flows of the asset (variable rate) and liability (fixed rate) parts of the derivative.
Forwards: Are calculated as the difference between the strike price of the contract and the spot price plus the forwards points
at the date of the contract. Options: The value recognized is calculated using the Black-Scholes method.



In the case of CCS, the entry data used
for the valuation models are UF, peso, and basis swap rates. In the case of fair value calculations for IRS, the FRA (Forward Rate
Agreement) rate and ICVS 23 Curve (Bloomberg: cash/deposits rates, futures, swaps). In the case of forwards, the forwards curve
for the currency in question is used. Finally, with options, the spot price, risk-free rate and volatility of exchange rate are
used, all in accordance with the currencies used in each valuation. The financial information used as entry data for the Company’s
valuation models is obtained from Bloomberg, the well-known financial software company. Conversely, the fair value provided by
the counterparties of derivatives contracts is used only as a control and not for valuation.



The effects on profit or loss of movements
in these amounts may be recognized in the caption Finance costs, foreign currency translation gain (loss) or cash flow hedges in
the statement of comprehensive income, depending on each particular case.



The fair value measurement of debt is
only performed to determine the actual market value of guaranteed and non-guaranteed long-term obligations; bonds denominated in
local currency ($/UF) and foreign currency (US$), credits denominated in foreign currency (US$).



The value of the Company’s reported
liabilities is calculated as the present value of discounted cash flows at market rates at the time of valuation, taking into account
the maturity date and exchange rate. The entry data used for the model includes the UF and peso rates, which are obtained using
Bloomberg, the well-known financial software company and the ‘Asociación de Bancos e Instituciones Financieras’
(ABIF) (Association of Banks and Financial Institutions’).



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-97







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 10	Financial
instruments (continued)



| | 10.9 | Financial assets pledged as guarantee
| | ---- | -------------------------------------



On November 4, 2004, Isapre Norte Grande
maintains a guarantee equivalent to the total amount owed to its members and healthcare providers, which is managed and maintained
by Banco de Chile.



As of December 31, 2014 and December
31, 2013, assets pledged as guarantees are as follows:



|Restricted cash           |  | 12/31/2014 ThUS$ |     |  | 12/31/2013 ThUS$ | 
|------------------------- |  | ---------------- | --- |  | ---------------- | 
|Isapre Norte Grande Ltda. |  |                  | 682 |  |                  | 
|Total                     |  |                  | 682 |  |                  | 



| | 10.10 | Estimated fair value of financial instruments and financial derivatives
| | ----- | -----------------------------------------------------------------------



As required by IFRS 7, the following
information is presented for the disclosure of the estimated fair value of financial assets and liabilities.



Although inputs represent Management's
best estimate, they are subjective and involve significant estimates related to the current economic and market conditions, as
well as risk features.



Methodologies and assumptions used depend
on the risk terms and characteristics of instruments and include the following as a summary:



| | - | Cash equivalent approximates fair value due to the short-term maturities of these instruments.
| | - | ----------------------------------------------------------------------------------------------



| | - | Other current financial liabilities are considered at fair value equal to their carrying values.
| | - | ------------------------------------------------------------------------------------------------



| | - | For interest-bearing liabilities with original maturity of more than a year, fair values are calculated
at discounting contractual cash flows at their original current market with similar terms.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | For forward and swap contracts, fair value is determined using quoted market prices of financial
instruments with similar characteristics.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-98







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 10	Financial
instruments (continued)



| | 10.10 | Estimated fair value of financial instruments and financial derivatives, continued
| | ----- | ----------------------------------------------------------------------------------



The detail of the Company’s instruments at carrying
value and estimated fair value is as follows:





|                                             |  | 12/31/2014     |           |  | 12/31/2013  | 
|-------------------------------------------- |  | -------------- | --------- |  | ----------- | 
|                                             |  | Carrying value |           |  | Fair  value | 
|                                             |  | ThUS$          |           |  | ThUS$       | 
|Cash and cash equivalents                    |  |                | 354,566   |  |             | 
|Current trade and other receivables          |  |                | 340,830   |  |             | 
|Other financial assets, current:             |  |                |           |  |             | 
|- Time deposits                              |  |                | 653,442   |  |             | 
|- Derivative instruments                     |  |                | 17,160    |  |             | 
|- Current hedging assets                     |  |                | -         |  |             | 
|Total
    other current financial assets     |  |                | 670,602   |  |             | 
|Non-Current Trade Receivables                |  |                | 2,044     |  |             | 
|Other non-current financial assets:          |  |                | 427       |  |             | 
|Other
    non-current financial assets:      |  |                | 427       |  |             | 
|Other financial liabilities, current:        |  |                |           |  |             | 
|- Bank loans                                 |  |                | 191,116   |  |             | 
|- Derivative instruments                     |  |                | 1,791     |  |             | 
|- Hedging liabilities                        |  |                | 812       |  |             | 
|- Unsecured obligations                      |  |                | 19,453    |  |             | 
|Other
    financial liabilities, current     |  |                | 213,172   |  |             | 
|Current and non-current accounts payable     |  |                | 145,160   |  |             | 
|Other non-current financial liabilities:     |  |                |           |  |             | 
|- Bank loans                                 |  |                | 219,838   |  |             | 
|- Unsecured obligations                      |  |                | 1,317,429 |  |             | 
|- Non-current hedging liabilities            |  |                | 36,958    |  |             | 
|Other
    non-current financial liabilities: |  |                | 1,574,225 |  |             | 





Fair value hierarchy



Fair value hierarchies are as follows:



| | a) | Level 1: When only quoted (unadjusted) prices have been used in active markets.
| | -- | -------------------------------------------------------------------------------



| | b) | Level 2: When in a phase in the valuation process variable other than prices quoted in Level 1
have been used which are directly observable in markets.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------



| | c) | Level 3: When in a phase in the valuation process variable which are not based in observable market
data have been used.
| | -- | ------------------------------------------------------------------------------------------------------------------------



The valuation techniques used to determine the fair value
of our hedging instruments, bank loans, and unsecurable obligations are level 2 fair value instruments, based on discounted cash
flows using market based rates as of year-end.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-99







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 10	Financial
instruments (continued)



| | 10.11 | Nature and scope of risks arising from financing instruments
| | ----- | ------------------------------------------------------------



As indicated in paragraphs 33 to 42
of IFRS 7 the disclosure of information associated with the nature and scope of risks arising from financial instruments is presented
in Note 4 - Financial Risk Management.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-100







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note
11	Equity-accounted investees



| | 11.1 | Investments in associates recognized according to the equity method of accounting
| | ---- | ---------------------------------------------------------------------------------



As of December 31, 2014 and December
31, 2013, in accordance with criteria established in Note 3.19, investment in associates recognized according to the equity method
of accounting and joint ventures are as follows:



|Associates                          |  | Equity-accounted investees |        |  | Share
                                         on profit (loss) of associates
                                         and joint ventures accounted
                                         for using the equity method |  |        |            |  |  | Share
                                         on other comprehensive income
                                         of associates and joint ventures
                                         accounted for using the equity
                                         method, net of tax |   |  | Share
                                         on total other comprehensive
                                         income of associates
                                         and joint ventures
                                         accounted for using
                                         the equity method |        |  |            | 
|----------------------------------- |  | -------------------------- | ------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------ | ---------- |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------ |  | ---------- | 
|                                    |  | 12/31/2014                 |        |  | 12/31/2013                                                                                                                                                                                                               |  |        | 12/31/2014 |  |  | 12/31/2013                                                                                                                                                                                                                                                                                 |   |  | 12/31/2012                                                                                                                                                                                                                                                                                                                    |        |  | 12/31/2014 | 
|                                    |  | ThUS$                      |        |  | ThUS$                                                                                                                                                                                                                    |  |        | ThUS$      |  |  | ThUS$                                                                                                                                                                                                                                                                                      |   |  | ThUS$                                                                                                                                                                                                                                                                                                                         |        |  | ThUS$      | 
|Sales de Magnesio Ltda.             |  |                            | 1,159  |  |                                                                                                                                                                                                                          |  | 1,649  |            |  |  | 942                                                                                                                                                                                                                                                                                        |   |  |                                                                                                                                                                                                                                                                                                                               | 1,005  |  |            | 
|Abu Dhabi Fertilizer Industries WWL |  |                            | 10,269 |  |                                                                                                                                                                                                                          |  | 11,453 |            |  |  | 1,783                                                                                                                                                                                                                                                                                      |   |  |                                                                                                                                                                                                                                                                                                                               | 1,596  |  |            | 
|Doktor Tarsa Tarim Sanayi AS        |  |                            | 14,869 |  |                                                                                                                                                                                                                          |  | 15,193 |            |  |  | 4,138                                                                                                                                                                                                                                                                                      |   |  |                                                                                                                                                                                                                                                                                                                               | 2,192  |  |            | 
|Ajay North America                  |  |                            | 13,530 |  |                                                                                                                                                                                                                          |  | 13,125 |            |  |  | 6,188                                                                                                                                                                                                                                                                                      |   |  |                                                                                                                                                                                                                                                                                                                               | 7,919  |  |            | 
|Ajay Europe SARL                    |  |                            | 8,004  |  |                                                                                                                                                                                                                          |  | 7,924  |            |  |  | 2,570                                                                                                                                                                                                                                                                                      |   |  |                                                                                                                                                                                                                                                                                                                               | 3,825  |  |            | 
|SQM Eastmed Turkey                  |  |                            | 88     |  |                                                                                                                                                                                                                          |  | 142    |            |  |  | (21                                                                                                                                                                                                                                                                                        | ) |  |                                                                                                                                                                                                                                                                                                                               | 132    |  |            | 
|Charlee SQM Thailand Co. Ltd.       |  |                            | 1,804  |  |                                                                                                                                                                                                                          |  | 1,589  |            |  |  | 158                                                                                                                                                                                                                                                                                        |   |  |                                                                                                                                                                                                                                                                                                                               | 237    |  |            | 
|Total                               |  |                            | 49,723 |  |                                                                                                                                                                                                                          |  | 51,075 |            |  |  | 15,758                                                                                                                                                                                                                                                                                     |   |  |                                                                                                                                                                                                                                                                                                                               | 16,906 |  |            | 



|Associate                           |  | Description of the nature of
    the                                                    |  |                                                                     |  | Country of           |  | Share
                                         of ownership
                                         in |    |   | Dividends received | 
|----------------------------------- |  | --------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------- |  | -------------------- |  | ------------------------------------------------------------------------------------------------------- | -- | - | ------------------ | 
|                                    |  | relationship                                                                            |  | Domicile                                                            |  | incorporation        |  | associates                                                                                              |    |   | 12/31/2014         | 
|                                    |  |                                                                                         |  |                                                                     |  |                      |  |                                                                                                         |    |   | ThUS$              | 
|                                    |  |                                                                                         |  |                                                                     |  |                      |  |                                                                                                         |    |   |                    | 
|Sales de Magnesio Ltda.             |  | Commercialization of magnesium
    salts.                                               |  | El Trovador 4285, Las Condes                                        |  | Chile                |  |                                                                                                         | 50 | % |                    | 
|Abu Dhabi Fertilizer Industries WWL |  | Distribution and commercialization of specialty
    plant nutrients in the Middle East. |  | PO Box 71871, Abu Dhabi                                             |  | United Arab Emirates |  |                                                                                                         | 37 | % |                    | 
|Doktor Tarsa Tarim Sanayi AS        |  | Distribution and commercialization of specialty
    plant nutrients in Turkey.          |  | Organize Sanayi Bolgesi, Ikinci Kisim, 22 cadde
    TR07100 Antalya |  | Turkey               |  |                                                                                                         | 50 | % |                    | 
|Ajay North America                  |  | Production and commercialization of iodine
    derivatives.                             |  | 1400 Industry RD Power Springs GA 30129                             |  | United States        |  |                                                                                                         | 49 | % |                    | 
|Ajay Europe SARL                    |  | Production and commercialization of iodine
    derivatives.                             |  | Z.I. du Grand Verger BP 227 53602 Evron Cedex                       |  | France               |  |                                                                                                         | 50 | % |                    | 
|SQM Eastmed Turkey                  |  | Production and commercialization of specialty products.                                 |  | Organize Sanayi Bolgesi, Ikinci Kisim, 22 cadde
    TR07100 Antalya |  | Turkey               |  |                                                                                                         | 50 | % |                    | 
|Charlee SQM Thailand Co. Ltd.       |  | Distribution and commercialization of specialty
    plant nutrients.                    |  | 31 Soi 138 (Meesuk) LLapdrawrd, Bangkapi, 10240
    Bangkok         |  | Thailand             |  |                                                                                                         | 40 | % |                    | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-101







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 11	Equity-accounted
investees (continued)



| | 11.2 | Assets, liabilities, revenue and expenses of associates
| | ---- | -------------------------------------------------------



|12/31/2014                         
|-----------------------------------
|                                   
|                                   
|                                   
|                                   
|                                   
|Sales de Magnesio Ltda.            
|Abu Dhabi Fertilizer Industries WWL
|Doktor Tarsa Tarim Sanayi AS       
|Ajay North America                 
|Ajay Europe SARL                   
|SQM Eastmed Turkey                 
|Charlee SQM Thailand Co. Ltd.      
|Total                              



|12/31/2013                         
|-----------------------------------
|                                   
|                                   
|                                   
|                                   
|                                   
|Sales de Magnesio Ltda.            
|Abu Dhabi Fertilizer Industries WWL
|Doktor Tarsa Tarim Sanayi AS       
|Ajay North America                 
|Ajay Europe SARL                   
|SQM Eastmed Turkey                 
|Charlee SQM Thailand Co. Ltd.      
|Total                              



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-102







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 11	Equity-accounted
investees (continued)



| | 11.2 | Assets, liabilities, revenue and expenses of associates, continued
| | ---- | ------------------------------------------------------------------



|12/31/2012                         
|-----------------------------------
|                                   
|                                   
|                                   
|                                   
|                                   
|Sales de Magnesio Ltda.            
|Abu Dhabi Fertilizer Industries WWL
|Doktor Tarsa Tarim Sanayi AS       
|Ajay North America                 
|Ajay Europe SARL                   
|SQM Eastmed Turkey                 
|Charlee SQM Thailand Co. Ltd.      
|Total                              



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-103







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note
11	Investment in Associates (continued)



| | 11.3 | Other information
| | ---- | -----------------



The Company has no participation in
unrecognized losses in investments in associates.



The Company presents no investments
unaccounted for according to the equity method of accounting.



The equity method was applied to the
Statement of Financial Position as of December 31, 2014 and December 31, 2013.



The basis of preparation of the financial
information of associates corresponds to the amounts included in the financial statements in conformity with the entity’s
IFRS.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-104







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note
12	Joint Ventures



| | 12.1 | Policy for the accounting of equity accounted investment in joint ventures
| | ---- | --------------------------------------------------------------------------



The method for the recognition of joint
ventures is that in which participation is initially recorded at cost, and subsequently adjusted, considering changes after the
acquisition in the portion of the entity’s net assets of the entity which correspond to the investor. Profit or loss for
the period of the investor will collect the portion which belongs to it in the results of the controlled entity as a whole.



| | 12.2 | Disclosures of interest in joint ventures
| | ---- | -----------------------------------------



| | a) | Operations conducted in 2014
| | -- | ----------------------------



During the second quarter of 2014, SQM
Industrial S.A. received a reimbursement of capital amounting to ThUS$2,011 from SQM Vitas Fzco., resulting in a decrease capital,
and maintaining the interest in this Company.



| | b) | Operations conducted in 2013
| | -- | ----------------------------



As of December 31, there are no changes
in the breakdown of interests in joint ventures.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-105







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 12	Joint Ventures
(continued)



| | 12.3 | Investment in joint ventures accounted for under the equity method of accounting
| | ---- | --------------------------------------------------------------------------------





|                                                     |  |                                                                                                      |  |                                                                                               |  | Country of           |  | Share of interest |       |   | Dividends received | 
|---------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------- |  | -------------------- |  | ----------------- | ----- | - | ------------------ | 
|Joint venture                                        |  | Description of the nature of
    the relationship                                                    |  | Domicile                                                                                      |  | incorporation        |  | in ownership      |       |   | 12/31/2014         | 
|                                                     |  |                                                                                                      |  |                                                                                               |  |                      |  |                   |       |   | ThUS$              | 
|Sichuan SQM Migao Chemical Fertilizers
    Co. Ltda. |  | Production and distribution of
    soluble fertilizers.                                              |  | Huangjing Road, Dawan Town, Qingbaijiang
    District, Chengdu Municipality, Sichuan Province |  | China                |  |                   | 50    | % |                    | 
|Coromandel SQM India                                 |  | Production and distribution of potassium nitrate.                                                    |  | 1-2-10,  Sardar Patel Road, Secunderabad
    – 500003 Andhra Pradesh                          |  | India                |  |                   | 50    | % |                    | 
|SQM Vitas Fzco.                                      |  | Production and commercialization of specialty
    plant and animal nutrition and industrial hygiene. |  | Jebel ALI Free Zone P.O. Box 18222, Dubai                                                     |  | United Arab Emirates |  |                   | 50    | % |                    | 
|SQM Star Qingdao Corp Nutrition. Co. Ltd.            |  | Production and distribution of nutrient plant
    solutions with specialties NPK soluble             |  | Longquan Town, Jimo City, Qingdao Municipality,
    Shangdong Province                        |  | China                |  |                   | 50    | % |                    | 
|SQM Vitas Brazil Agroindustria                       |  | Production and commercialization of specialty
    plant and animal nutrition and industrial hygiene. |  | Via Cndeias, Km. 01 Sem Numero, Lote 4, Bairro
    Cia Norte, Candeias, Bahia.                |  | Brazil               |  |                   | 49.99 | % |                    | 
|SQM Vitas Peru S.A.C.                                |  | Production and commercialization of specialty
    plant and animal nutrition and industrial hygiene  |  | Av. Juan de Arona 187, Torre B, Oficina 301-II,
    San Isidro, Lima                          |  | Peru                 |  |                   | 50    | % |                    | 
|SQM Vitas Southern Africa Pty.                       |  | Production and commercialization of specialty
    plant and animal nutrition and industrial hygiene  |  | 33 Waterford Office Park Waterford Drive Fourways,
    2055 South Africa                      |  | South Africa         |  |                   | 50    | % |                    | 
|SQM Vitas Spain                                      |  | Production and commercialization of specialty plant nutrition                                        |  | C/Manuel Echeverria Manzana 2 Muelle de la
    Cab ( Puerto Real )                            |  | Spain                |  |                   | 50    | % |                    | 
|SQM Vitas Holland                                    |  | Without information                                                                                  |  | Herikerbergweg 238, 1101 CM Amsterdam Zuidoost                                                |  | Holland              |  |                   | 50    | % |                    | 
|SQM Vitas Plantacote B.V.                            |  | Production and commercialization of controlled-released
    fertilizers                              |  | Herikerbergweg 238, 1101 CM Amsterdam Zuidoost                                                |  | Holland              |  |                   | 50    | % |                    | 





|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-106







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 12	Joint Ventures
(continued)



| | 12.3 | Investment in joint ventures accounted for under the equity method of accounting, continued:
| | ---- | --------------------------------------------------------------------------------------------



|Joint Venture                                   |  | Equity-accounted investees |        |  | Share on profit (loss) of associates and joint ventures accounted for using the equity method | 
|----------------------------------------------- |  | -------------------------- | ------ |  | --------------------------------------------------------------------------------------------- | 
|                                                |  | 12/31/2014                 |        |  | 12/31/2013                                                                                    | 
|                                                |  | ThUS$                      |        |  | ThUS$                                                                                         | 
|                                                |  |                            |        |  |                                                                                               | 
|Sichuan SQM Migao Chemical Fertilizers Co. Ltd. |  |                            | 12,819 |  |                                                                                               | 
|Coromandel SQM India                            |  |                            | 754    |  |                                                                                               | 
|SQM Vitas Fzco.                                 |  |                            | 9,189  |  |                                                                                               | 
|SQM Star Qingdao Corp. Nutrition Co. Ltd.       |  |                            | 1,969  |  |                                                                                               | 
|SQM Vitas Holland                               |  |                            | 1,324  |  |                                                                                               | 
|Total                                           |  |                            | 26,055 |  |                                                                                               | 



|Joint Venture                                   |  | Share on other comprehensive income of associates and joint ventures accounted for using the equity method, net of tax |      |   | Share on total other comprehensive income of associates and joint ventures accounted for using the equity method | 
|----------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------- | ---- | - | ---------------------------------------------------------------------------------------------------------------- | 
|                                                |  | 12/31/2014                                                                                                             |      |   | 12/31/2013                                                                                                       | 
|                                                |  | ThUS$                                                                                                                  |      |   | ThUS$                                                                                                            | 
|                                                |  |                                                                                                                        |      |   |                                                                                                                  | 
|Sichuan SQM Migao Chemical Fertilizers Co. Ltd. |  |                                                                                                                        | (1   | ) |                                                                                                                  | 
|Coromandel SQM India                            |  |                                                                                                                        | -    |   |                                                                                                                  | 
|SQM Vitas Fzco.                                 |  |                                                                                                                        | (457 | ) |                                                                                                                  | 
|SQM Star Qingdao Corp. Nutrition Co. Ltd.       |  |                                                                                                                        | -    |   |                                                                                                                  | 
|SQM Vitas Holland                               |  |                                                                                                                        | -    |   |                                                                                                                  | 
|Total                                           |  |                                                                                                                        | (458 | ) |                                                                                                                  | 



The following companies are investments in joint ventures
of



| | (1) | SQM Vitas Fzco.
| | --- | ---------------



| | (2) | SQM Vitas Holland
| | --- | -----------------



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-107







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 12	Joint Ventures
(continued)



| | 12.3 | Investment in joint ventures accounted for under the equity method of accounting, continued:
| | ---- | --------------------------------------------------------------------------------------------





|Joint Venture                 |  | Equity-accounted investees |        |  | Share on profit (loss) of associates and joint ventures accounted for using the equity method | 
|----------------------------- |  | -------------------------- | ------ |  | --------------------------------------------------------------------------------------------- | 
|                              |  | 12/31/2014                 |        |  | 12/31/2013                                                                                    | 
|                              |  | ThUS$                      |        |  | ThUS$                                                                                         | 
|                              |  |                            |        |  |                                                                                               | 
|SQM Vitas Brazil (1)          |  |                            | 5,670  |  |                                                                                               | 
|SQM Vitas Peru (1)            |  |                            | 4,993  |  |                                                                                               | 
|SQM Vitas Southern Africa (1) |  |                            | 180    |  |                                                                                               | 
|SQM Vitas Spain (2)           |  |                            | 1,023  |  |                                                                                               | 
|SQM Vitas Plantacote B.V. (2) |  |                            | 1,135  |  |                                                                                               | 
|Total                         |  |                            | 13,001 |  |                                                                                               | 



|Joint Venture                 |  | Share on other comprehensive income of associates and joint ventures accounted for using the equity method, net of tax |   |  | Share on total other comprehensive income of associates and joint ventures accounted for using the equity method | 
|----------------------------- |  | ---------------------------------------------------------------------------------------------------------------------- | - |  | ---------------------------------------------------------------------------------------------------------------- | 
|                              |  | 12/31/2014                                                                                                             |   |  | 12/31/2013                                                                                                       | 
|                              |  | ThUS$                                                                                                                  |   |  | ThUS$                                                                                                            | 
|                              |  | -                                                                                                                      |   |  | -                                                                                                                | 
|SQM Vitas Brazil (1)          |  |                                                                                                                        | - |  |                                                                                                                  | 
|SQM Vitas Peru (1)            |  |                                                                                                                        | - |  |                                                                                                                  | 
|SQM Vitas Southern Africa (1) |  |                                                                                                                        | - |  |                                                                                                                  | 
|SQM Vitas Spain (2)           |  |                                                                                                                        | - |  |                                                                                                                  | 
|SQM Vitas Plantacote B.V. (2) |  |                                                                                                                        | - |  |                                                                                                                  | 
|Total                         |  |                                                                                                                        | - |  |                                                                                                                  | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-108







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 12	Joint Ventures
(continued)



| | 12.4 | Assets, liabilities, revenue and expenses from joint ventures:
| | ---- | --------------------------------------------------------------



|                                                 |  | 12/31/2014 |        
|------------------------------------------------ |  | ---------- | -------
|                                                 |  | Assets     |        
|Joint Venture                                    |  | Current    |        
|                                                 |  | ThUS$      |        
|                                                 |  |            |        
|Sichuan SQM Migao Chemical Fertilizers Co. Ltda. |  |            | 61,381 
|Coromandel SQM India                             |  |            | 4,820  
|SQM Vitas Fzco.                                  |  |            | 6,366  
|SQM Star Qingdao Corp. Nutrition Co. Ltd.        |  |            | 4,363  
|SQM Vitas Brazil                                 |  |            | 39,006 
|SQM Vitas Peru                                   |  |            | 25,346 
|SQM Vitas Southern Africa                        |  |            | 3,703  
|SQM Vitas Spain                                  |  |            | 2,066  
|SQM Vitas Holland                                |  |            | 512    
|SQM Vitas Plantacote B.V.                        |  |            | 1,529  
|Total                                            |  |            | 149,092



|                                                 |  | 12/31/2013 |        
|------------------------------------------------ |  | ---------- | -------
|                                                 |  | Assets     |        
|Joint Venture                                    |  | Current    |        
|                                                 |  | ThUS$      |        
|                                                 |  |            |        
|Sichuan SQM Migao Chemical Fertilizers Co. Ltda. |  |            | 68,241 
|Coromandel SQM India                             |  |            | 4,545  
|SQM Vitas Fzco.                                  |  |            | 12,790 
|SQM Star Qingdao Corp. Nutrition Co. Ltd.        |  |            | 3,570  
|SQM Vitas Brazil                                 |  |            | 31,243 
|SQM Vitas Peru                                   |  |            | 21,481 
|SQM Vitas Southern Africa                        |  |            | 5,164  
|SQM Vitas Spain                                  |  |            | 1,318  
|SQM Vitas Holland                                |  |            | 95     
|SQM Vitas Plantacote B.V.                        |  |            | 1,323  
|Total                                            |  |            | 149,770



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-109







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 12	Joint Ventures
(continued)



| | 12.4 | Assets, liabilities, revenue and expenses from joint ventures, continued:
| | ---- | -------------------------------------------------------------------------



|                                                 |  | 12/31/2012 |       
|------------------------------------------------ |  | ---------- | ------
|                                                 |  | Assets     |       
|Joint Venture                                    |  | Current    |       
|                                                 |  | ThUS$      |       
|                                                 |  |            |       
|Sichuan SQM Migao Chemical Fertilizers Co. Ltda. |  |            | 21,843
|Coromandel SQM India                             |  |            | 4,388 
|SQM Vitas Fzco.                                  |  |            | 4.568 
|SQM Star Qingdao Corp. Nutrition Co. Ltd.        |  |            | 1,986 
|SQM Vitas Brazil                                 |  |            | 36,874
|SQM Vitas Peru                                   |  |            | 23,308
|SQM Vitas Southern Africa                        |  |            | 2,730 
|Total                                            |  |            | 95,697



| | 12.5 | Other Joint Venture disclosures:
| | ---- | --------------------------------



|                                                 |  | Cash and cash equivalents |        |  | Other current financial liabilities |  |        | Other non-current financial liabilities | 
|------------------------------------------------ |  | ------------------------- | ------ |  | ----------------------------------- |  | ------ | --------------------------------------- | 
|                                                 |  | 12/31/2014                |        |  | 12/31/2013                          |  |        | 12/31/2014                              | 
|                                                 |  | ThUS$                     |        |  | ThUS$                               |  |        | ThUS$                                   | 
|                                                 |  |                           |        |  |                                     |  |        |                                         | 
|Sichuan SQM Migao Chemical Fertilizers Co. Ltda. |  |                           | 234    |  |                                     |  | 8,049  |                                         | 
|Coromandel SQM India                             |  |                           | 69     |  |                                     |  | 197    |                                         | 
|SQM Vitas Fzco.                                  |  |                           | 12,043 |  |                                     |  | 10,605 |                                         | 
|SQM Star Qingdao Corp. Nutrition Co. Ltd.        |  |                           | 2,487  |  |                                     |  | 1,988  |                                         | 
|SQM Vitas Brazil                                 |  |                           | 1,312  |  |                                     |  | 854    |                                         | 
|SQM Vitas Peru                                   |  |                           | 605    |  |                                     |  | 1,166  |                                         | 
|SQM Vitas Southern Africa                        |  |                           | 448    |  |                                     |  | 351    |                                         | 
|SQM Vitas Spain                                  |  |                           | 34     |  |                                     |  | 310    |                                         | 
|SQM Vitas Holland                                |  |                           | 149    |  |                                     |  | 26     |                                         | 
|SQM Vitas Plantacote B.V.                        |  |                           | 458    |  |                                     |  | 109    |                                         | 
|Total                                            |  |                           | 17,839 |  |                                     |  | 23,655 |                                         | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-110









| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 12 | Joint Ventures (continued)
| | ------- | --------------------------



| | 12.5 | Other Joint Venture disclosures, continued:
| | ---- | -------------------------------------------



|                                                 |  | Depreciation and amortization expense |        |   | Interest expense |  |        | Income tax expense, continuing operations | 
|------------------------------------------------ |  | ------------------------------------- | ------ | - | ---------------- |  | ------ | ----------------------------------------- | 
|                                                 |  | 12/31/2014                            |        |   | 12/31/2013       |  |        | 12/31/2012                                | 
|                                                 |  | ThUS$                                 |        |   | ThUS$            |  |        | ThUS$                                     | 
|                                                 |  |                                       |        |   |                  |  |        |                                           | 
|Sichuan SQM Migao Chemical Fertilizers Co. Ltda. |  |                                       | (680   | ) |                  |  | (549   | )                                         | 
|Coromandel SQM India                             |  |                                       | (70    | ) |                  |  | (2     | )                                         | 
|SQM Vitas Fzco.                                  |  |                                       | (1,032 | ) |                  |  | (1,001 | )                                         | 
|SQM Star Qingdao Corp. Nutrition Co. Ltd.        |  |                                       | (60    | ) |                  |  | (71    | )                                         | 
|SQM Vitas Brazil                                 |  |                                       | (405   | ) |                  |  | (328   | )                                         | 
|SQM Vitas Peru                                   |  |                                       | (136   | ) |                  |  | (82    | )                                         | 
|SQM Vitas Southern Africa                        |  |                                       | (82    | ) |                  |  | (67    | )                                         | 
|SQM Vitas Spain                                  |  |                                       | (113   | ) |                  |  | -      |                                           | 
|SQM Vitas Holland                                |  |                                       | -      |   |                  |  | -      |                                           | 
|SQM Vitas Plantacote B.V.                        |  |                                       | (2     | ) |                  |  | -      |                                           | 
|Total                                            |  |                                       | (2,580 | ) |                  |  | (2,100 | )                                         | 



The basis of preparation of the financial information
of joint ventures corresponds to the amounts included in the financial statements in conformity with the entity’s IFRS.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-111









| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 13 | Intangible assets and goodwill
| | ------- | ------------------------------



| | 13.1 | Balances
| | ---- | --------



|                                      |  | 12/31/2014 |         |  | 12/31/2013 | 
|------------------------------------- |  | ---------- | ------- |  | ---------- | 
|                                      |  | ThUS$      |         |  | ThUS$      | 
|Intangible assets other than goodwill |  |            | 114,735 |  |            | 
|Goodwill                              |  |            | 38,388  |  |            | 
|Total                                 |  |            | 153,123 |  |            | 



| | 13.2 | Disclosures on intangible assets and goodwill
| | ---- | ---------------------------------------------



Intangible assets relate to goodwill, water
rights, trademarks, industrial patents, rights of way, software, and mining claims which correspond to exploitation rights acquired
from third-parties.



Balances and movements in the main classes
of intangible assets as of December 31, 2014 and December 31, 2013 are detailed as follows:



|                                                                                                            |  |             |  | 12/31/2014         |        
|----------------------------------------------------------------------------------------------------------- |  | ----------- |  | ------------------ | -------
|Intangible assets and goodwill                                                                              |  | Useful
life |  | Gross amount ThUS$ |        
|                                                                                                            |  |             |  |                    |        
|Trademarks                                                                                                  |  | Finite      |  |                    | 3,821  
|Software                                                                                                    |  | Finite      |  |                    | 23,062 
|Intellectual property rights, patents and other industrial property rights, service and exploitation rights |  | Finite      |  |                    | 1,524  
|Intellectual property rights, patents and other industrial property rights, service and exploitation rights |  | Indefinite  |  |                    | 97,386 
|Other intangible assets                                                                                     |  | Indefinite  |  |                    | 3,698  
|Intangible assets other than goodwill                                                                       |  |             |  |                    | 129,491
|Goodwill                                                                                                    |  | Indefinite  |  |                    | 38,388 
|Total intangible assets and goodwill                                                                        |  |             |  |                    | 167,879



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-112







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note  13 | Intangible assets and goodwill (continued)
| | -------- | ------------------------------------------



| | 13.2 | Disclosures on intangible assets and goodwill, continued
| | ---- | --------------------------------------------------------



|                                                                                                            |  |             |  | 12/31/2013         |        
|----------------------------------------------------------------------------------------------------------- |  | ----------- |  | ------------------ | -------
|Intangible assets and goodwill                                                                              |  | Useful
life |  | Gross amount ThUS$ |        
|                                                                                                            |  |             |  |                    |        
|Trademarks                                                                                                  |  | Finite      |  |                    | 3,821  
|Software                                                                                                    |  | Finite      |  |                    | 5,342  
|Intellectual property rights, patents and other industrial property rights, service and exploitation rights |  | Finite      |  |                    | 1,576  
|Intellectual property rights, patents and other industrial property rights, service and exploitation rights |  | Indefinite  |  |                    | 97,392 
|Other intangible assets                                                                                     |  | Indefinite  |  |                    | 4,081  
|Intangible assets other than goodwill                                                                       |  |             |  |                    | 112,212
|Goodwill                                                                                                    |  | Indefinite  |  |                    | 38,388 
|Total intangible assets and goodwill                                                                        |  |             |  |                    | 150,600



| | a) | Estimated useful lives or amortization rates used
for finite identifiable intangible assets
| | -- | -------------------------------------------------------------------------------------------



Finite useful life measures the lifetime or
the number of productive units or other similar variables which constitute its useful life.



The estimated useful life for software is 3
years, for other finite useful life assets the period in which they are amortized relates to periods defined by contracts or rights
which generate them.



Intellectual property rights, patents and other
industrial property rights, service and exploitation rights, mainly relate to water rights and are obtained as indefinite.



| | b) | Method used to express the amortization of identifiable
intangible assets (life or rate)
| | -- | ----------------------------------------------------------------------------------------



The method used to express the amortization is useful life, and
estimated tons to be extracted in the case of mining claims.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-113









| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 13 | Intangible assets and goodwill (continued)
| | ------- | ------------------------------------------



| | 13.2 | Disclosures on intangible assets and goodwill, continued
| | ---- | --------------------------------------------------------



| | c) | Minimum and maximum amortization lives or rates of
intangible assets:
| | -- | ---------------------------------------------------------------------



|Estimated useful lives or amortization rate                                                                 |  | Minimum life or rate |  | Maximum life or rate
|----------------------------------------------------------------------------------------------------------- |  | -------------------- |  | --------------------
|                                                                                                            |  |                      |  |                     
|Intellectual property rights, patents and other industrial property rights, service and exploitation rights |  | Indefinite           |  | Indefinite          
|Intangible assets other than goodwill                                                                       |  | Indefinite           |  | Indefinite          
|Intellectual property rights, patents and other industrial property rights, service and exploitation rights |  | 1 year               |  | 16 years            
|Trademarks                                                                                                  |  | 1 year               |  | 5 years             
|Software                                                                                                    |  | 2 years              |  | 3 years             



| | d) | Information to be disclosed on assets generated internally
| | -- | ----------------------------------------------------------



The Company has no intangible assets generated internally.



| | e) | Other information to disclose on intangible assets
| | -- | --------------------------------------------------



SQM has property rights and mining concessions
of the Chilean Government, intended for the exploration and exploitation of saltpeter and brine. Such rights, have had no initial
cost over registration costs, which are insignificant.



Also, SQM has acquired from third-parties other
than the Chilean Government, mining concessions, which have been recognized at acquisition cost, which are amortized as the corresponding
area is exploited based on the tons estimated to be extracted.



Expenses prior to obtaining the mining concessions
are recognized in profit or loss for the year as incurred.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-114







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 13 | Intangible assets and goodwill (continued)
| | ------- | ------------------------------------------



| | 13.2 | Disclosures on intangible assets and goodwill, continued
| | ---- | --------------------------------------------------------



| | f) | Movements in identifiable intangible assets as of
December 31, 2014:
| | -- | --------------------------------------------------------------------



|Movements in identifiable intangible assets, net |  | Trademarks |   |  | Software |  |        | Intellectual property rights,
    patents and other industrial
    property rights, service and exploitation right, rights of way |  |  | Intellectual property rights,
    patents and other industrial
    property rights, service and exploitation right, rights of way |   |  | Other intangible assets |        |   | Goodwill |  |       | Identifiable intangible assets | 
|------------------------------------------------ |  | ---------- | - |  | -------- |  | ------ | --------------------------------------------------------------------------------------------------------------------------------- |  |  | --------------------------------------------------------------------------------------------------------------------------------- | - |  | ----------------------- | ------ | - | -------- |  | ----- | ------------------------------ | 
|                                                 |  | ThUS$      |   |  | ThUS$    |  |        | ThUS$                                                                                                                             |  |  | ThUS$                                                                                                                             |   |  | ThUS$                   |        |   | ThUS$    |  |       | ThUS$                          | 
|Opening balance                                  |  |            | - |  |          |  | 2,196  |                                                                                                                                   |  |  | 694                                                                                                                               |   |  |                         | 97,392 |   |          |  | 4,081 |                                | 
|Additions                                        |  |            | - |  |          |  | 14,462 |                                                                                                                                   |  |  | -                                                                                                                                 |   |  |                         | -      |   |          |  | -     |                                | 
|Amortization                                     |  |            | - |  |          |  | (3,547 | )                                                                                                                                 |  |  | (58                                                                                                                               | ) |  |                         | -      |   |          |  | -     |                                | 
|Other increases (decreases)                      |  |            | - |  |          |  | (45    | )                                                                                                                                 |  |  | (51                                                                                                                               | ) |  |                         | (6     | ) |          |  | (383  | )                              | 
|                                                 |  |            |   |  |          |  |        |                                                                                                                                   |  |  |                                                                                                                                   |   |  |                         |        |   |          |  |       |                                | 
|Final balance                                    |  |            | - |  |          |  | 13,066 |                                                                                                                                   |  |  | 585                                                                                                                               |   |  |                         | 97,386 |   |          |  | 3,698 |                                | 



| | g) | Movements in identifiable intangible assets as of
December 31, 2013:
| | -- | --------------------------------------------------------------------



|Movements in identifiable intangible assets, net |  | Trademarks |   |  | Software |  |        | Intellectual property rights,
    patents and other industrial
    property rights, service and exploitation right, rights of way |  |  | Intellectual property rights,
    patents and other industrial
    property rights, service and exploitation right, rights of way |   |  | Other intangible assets |        |   | Goodwill |  |       | Identifiable intangible assets | 
|------------------------------------------------ |  | ---------- | - |  | -------- |  | ------ | --------------------------------------------------------------------------------------------------------------------------------- |  |  | --------------------------------------------------------------------------------------------------------------------------------- | - |  | ----------------------- | ------ | - | -------- |  | ----- | ------------------------------ | 
|                                                 |  | ThUS$      |   |  | ThUS$    |  |        | ThUS$                                                                                                                             |  |  | ThUS$                                                                                                                             |   |  | ThUS$                   |        |   | ThUS$    |  |       | ThUS$                          | 
|Opening balance                                  |  |            | - |  |          |  | 2,196  |                                                                                                                                   |  |  | 694                                                                                                                               |   |  |                         | 97,392 |   |          |  | 4,081 |                                | 
|Additions                                        |  |            | - |  |          |  | 764    |                                                                                                                                   |  |  | -                                                                                                                                 |   |  |                         | -      |   |          |  | -     |                                | 
|Amortization                                     |  |            | - |  |          |  | (1,019 | )                                                                                                                                 |  |  | (61                                                                                                                               | ) |  |                         | -      |   |          |  | -     |                                | 
|Other increases (decreases)                      |  |            | - |  |          |  | 41     |                                                                                                                                   |  |  | (32                                                                                                                               | ) |  |                         | (6     | ) |          |  | -     |                                | 
|                                                 |  |            |   |  |          |  |        |                                                                                                                                   |  |  |                                                                                                                                   |   |  |                         |        |   |          |  |       |                                | 
|Final balance                                    |  |            | - |  |          |  | 1,982  |                                                                                                                                   |  |  | 601                                                                                                                               |   |  |                         | 97,386 |   |          |  | 4,081 |                                | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-115









| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 13 | Intangible assets and goodwill (continued)
| | ------- | ------------------------------------------



| | 13.2 | Disclosures on intangible assets and goodwill, continued
| | ---- | --------------------------------------------------------



| | h) | Movements in identifiable intangible assets as of
December 31, 2012:
| | -- | --------------------------------------------------------------------



|Movements in identifiable intangible assets, net |  | Trademarks |   |  | Software |  |       | Intellectual property rights,
    patents and other industrial
    property rights, service and exploitation right, rights of way |  |  | Intellectual property rights,
    patents and other industrial
    property rights, service and exploitation right, rights of way |   |  | Other intangible assets |        |  | Goodwill |  |       | Identifiable intangible assets | 
|------------------------------------------------ |  | ---------- | - |  | -------- |  | ----- | --------------------------------------------------------------------------------------------------------------------------------- |  |  | --------------------------------------------------------------------------------------------------------------------------------- | - |  | ----------------------- | ------ |  | -------- |  | ----- | ------------------------------ | 
|                                                 |  | ThUS$      |   |  | ThUS$    |  |       | ThUS$                                                                                                                             |  |  | ThUS$                                                                                                                             |   |  | ThUS$                   |        |  | ThUS$    |  |       | ThUS$                          | 
|Opening balance                                  |  |            | - |  |          |  | 1,938 |                                                                                                                                   |  |  | 440                                                                                                                               |   |  |                         | 77,282 |  |          |  | 396   |                                | 
|Additions                                        |  |            | - |  |          |  | 501   |                                                                                                                                   |  |  | -                                                                                                                                 |   |  |                         | 19,080 |  |          |  | 964   |                                | 
|Amortization                                     |  |            | - |  |          |  | (789  | )                                                                                                                                 |  |  | (62                                                                                                                               | ) |  |                         | -      |  |          |  | -     |                                | 
|Other increases (decreases)                      |  |            | - |  |          |  | -     |                                                                                                                                   |  |  | -                                                                                                                                 |   |  |                         | 4      |  |          |  | -     |                                | 
|                                                 |  |            |   |  |          |  |       |                                                                                                                                   |  |  |                                                                                                                                   |   |  |                         |        |  |          |  |       |                                | 
|Final balance                                    |  |            | - |  |          |  | 1,650 |                                                                                                                                   |  |  | 378                                                                                                                               |   |  |                         | 96,366 |  |          |  | 1,360 |                                | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-116







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 14 | Property, plant and equipment
| | ------- | -----------------------------



As of December 31, 2014 and December 31, 2013, the detail of property,
plant and equipment is as follows:



| | 14.1 | Types of property, plant and equipment
| | ---- | --------------------------------------



|Description of types of property, plant and equipment                                 |  | 12/31/2014 ThUS$ |           |  | 12/31/2013 ThUS$ | 
|------------------------------------------------------------------------------------- |  | ---------------- | --------- |  | ---------------- | 
|Property, plant and equipment, net                                                    |  |                  |           |  |                  | 
|Land                                                                                  |  |                  | 34,622    |  |                  | 
|Buildings                                                                             |  |                  | 233,175   |  |                  | 
|Machinery                                                                             |  |                  | 361,882   |  |                  | 
|Transport equipment                                                                   |  |                  | 81,673    |  |                  | 
|Furniture and fixtures                                                                |  |                  | 9,016     |  |                  | 
|Office equipment                                                                      |  |                  | 6,365     |  |                  | 
|Constructions in progress                                                             |  |                  | 237,321   |  |                  | 
|Other property, plant and equipment (1)                                               |  |                  | 923,900   |  |                  | 
|Total                                                                                 |  |                  | 1,887,954 |  |                  | 
|Property, plant and equipment, gross                                                  |  |                  |           |  |                  | 
|Land                                                                                  |  |                  | 34,622    |  |                  | 
|Buildings                                                                             |  |                  | 411,633   |  |                  | 
|Machinery                                                                             |  |                  | 1,168,018 |  |                  | 
|Transport equipment                                                                   |  |                  | 261,394   |  |                  | 
|Furniture and fixtures                                                                |  |                  | 32,082    |  |                  | 
|Office equipment                                                                      |  |                  | 35,512    |  |                  | 
|Constructions in progress                                                             |  |                  | 237,321   |  |                  | 
|Other property, plant and equipment                                                   |  |                  | 1,731,599 |  |                  | 
|Total                                                                                 |  |                  | 3,912,181 |  |                  | 
|                                                                                      |  |                  |           |  |                  | 
|Accumulated depreciation and value impairment of property, plant and equipment, total |  |                  |           |  |                  | 
|Accumulated depreciation and value impairment of buildings                            |  |                  | 178,458   |  |                  | 
|Accumulated depreciation and value impairment of machinery                            |  |                  | 806,136   |  |                  | 
|Accumulated depreciation and value impairment of transport equipment                  |  |                  | 179,721   |  |                  | 
|Accumulated depreciation and value impairment of furniture and fixtures               |  |                  | 23,066    |  |                  | 
|Accumulated depreciation and value impairment of office equipment                     |  |                  | 29,147    |  |                  | 
|Accumulated depreciation and value impairment of other property, plant and equipment  |  |                  | 807,699   |  |                  | 
|Total                                                                                 |  |                  | 2,024,227 |  |                  | 



| | (1) | The detail of other property, plant and equipment is
as follows:
| | --- | ----------------------------------------------------------------



|                                         |  | 31/12/2014 ThUS$ |         |  | 31/12/2013 ThUS$ | 
|---------------------------------------- |  | ---------------- | ------- |  | ---------------- | 
|Other property, plant and equipment, net |  |                  |         |  |                  | 
|Conveyor belt                            |  |                  | 53,648  |  |                  | 
|Tank (TK)                                |  |                  | 36,236  |  |                  | 
|Geomembrane/liner                        |  |                  | 158,839 |  |                  | 
|Electric facilities                      |  |                  | 61,795  |  |                  | 
|Lights                                   |  |                  | 3,648   |  |                  | 
|Other constructions                      |  |                  | 122,287 |  |                  | 
|Piping                                   |  |                  | 27,637  |  |                  | 
|Pool                                     |  |                  | 168,469 |  |                  | 
|Well (water)                             |  |                  | 49,818  |  |                  | 
|Pipes/HD lines                           |  |                  | 148,590 |  |                  | 
|Railroad track                           |  |                  | 25,314  |  |                  | 
|Other property, plant and equipment      |  |                  | 65,619  |  |                  | 
|Total                                    |  |                  | 923,900 |  |                  | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-117









| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 14 | Property, plant and equipment (continued)
| | ------- | -----------------------------------------



| | 14.2 | Reconciliation of changes in property, plant and equipment
by type:
| | ---- | -------------------------------------------------------------------



|Reconciliation entries of changes in property, plant and equipment by type as of
    December 31, 2014, gross |  | Land  |        |   | Buildings |  |         | Machinery |  |  | Transport equipment |   |  | Furniture and fixtures |         |   | Office equipment |  |        | Constructions in progress |  |  | Other property,
    plant and
    equipment |   |  | Property, plant and
    equipment |         
|------------------------------------------------------------------------------------------------------------- |  | ----- | ------ | - | --------- |  | ------- | --------- |  |  | ------------------- | - |  | ---------------------- | ------- | - | ---------------- |  | ------ | ------------------------- |  |  | ------------------------------------------- | - |  | --------------------------------- | --------
|                                                                                                              |  | ThUS$ |        |   | ThUS$     |  |         | ThUS$     |  |  | ThUS$               |   |  | ThUS$                  |         |   | ThUS$            |  |        | ThUS$                     |  |  | ThUS$                                       |   |  | ThUS$                             |         
|                                                                                                              |  |       |        |   |           |  |         |           |  |  |                     |   |  |                        |         |   |                  |  |        |                           |  |  |                                             |   |  |                                   |         
|Opening balance                                                                                               |  |       | 33.812 |   |           |  | 364.695 |           |  |  | 1.179.860           |   |  |                        | 263.268 |   |                  |  | 27.575 |                           |  |  | 39.142                                      |   |  |                                   | 415.740 
|Changes                                                                                                       |  |       |        |   |           |  |         |           |  |  |                     |   |  |                        |         |   |                  |  |        |                           |  |  |                                             |   |  |                                   |         
|Additions                                                                                                     |  |       | -      |   |           |  | 72      |           |  |  | 370                 |   |  |                        | -       |   |                  |  | 71     |                           |  |  | 1.514                                       |   |  |                                   | 134.663 
|Divestitures                                                                                                  |  |       | -      |   |           |  | -       |           |  |  | (93                 | ) |  |                        | (85     | ) |                  |  | (86    | )                         |  |  | (58                                         | ) |  |                                   | (2.235  
|Increase(decrease) in foreign currency exchange                                                               |  |       | (87    | ) |           |  | (6      | )         |  |  | (56                 | ) |  |                        | (33     | ) |                  |  | -      |                           |  |  | (65                                         | ) |  |                                   | 4       
|Reclassification                                                                                              |  |       | 812    |   |           |  | 46.872  |           |  |  | (12.083             | ) |  |                        | (1.742  | ) |                  |  | 4.522  |                           |  |  | (4.983                                      | ) |  |                                   | (256.528
|Other increases (decreases) (*)                                                                               |  |       | 85     |   |           |  | -       |           |  |  | 20                  |   |  |                        | (14     | ) |                  |  | -      |                           |  |  | (38                                         | ) |  |                                   | (54.323 
|Total changes                                                                                                 |  |       | 810    |   |           |  | 46.938  |           |  |  | (11.842             | ) |  |                        | (1.874  | ) |                  |  | 4.507  |                           |  |  | (3.630                                      | ) |  |                                   | (178.419
|Final balance                                                                                                 |  |       | 34.622 |   |           |  | 411.633 |           |  |  | 1.168.018           |   |  |                        | 261.394 |   |                  |  | 32.082 |                           |  |  | 35.512                                      |   |  |                                   | 237.321 



|Reconciliation entries of changes in property, plant and equipment by type as of December
     31, 2014, Accumulated depreciation |  | Land  |   |  | Buildings |  |          | Machinery |  |  | Transport equipment |   |  | Furniture and fixtures |          |   | Office equipment |  |         | Constructions in progress |  |  | Other property,
    plant and
    equipment |   |  | Property, plant and
    equipment |  
|--------------------------------------------------------------------------------------------------------------------------------- |  | ----- | - |  | --------- |  | -------- | --------- |  |  | ------------------- | - |  | ---------------------- | -------- | - | ---------------- |  | ------- | ------------------------- |  |  | ------------------------------------------- | - |  | --------------------------------- | -
|                                                                                                                                  |  | ThUS$ |   |  | ThUS$     |  |          | ThUS$     |  |  | ThUS$               |   |  | ThUS$                  |          |   | ThUS$            |  |         | ThUS$                     |  |  | ThUS$                                       |   |  | ThUS$                             |  
|                                                                                                                                  |  |       |   |  |           |  |          |           |  |  |                     |   |  |                        |          |   |                  |  |         |                           |  |  |                                             |   |  |                                   |  
|Opening balance                                                                                                                   |  |       | - |  |           |  | (174.166 | )         |  |  | (714.533            | ) |  |                        | (157.289 | ) |                  |  | (18.041 | )                         |  |  | (33.080                                     | ) |  |                                   | -
|Changes                                                                                                                           |  |       |   |  |           |  |          |           |  |  |                     |   |  |                        |          |   |                  |  |         |                           |  |  |                                             |   |  |                                   |  
|Additions                                                                                                                         |  |       | - |  |           |  | -        |           |  |  | -                   |   |  |                        | -        |   |                  |  | -       |                           |  |  | -                                           |   |  |                                   | -
|Divestitures                                                                                                                      |  |       | - |  |           |  | -        |           |  |  | 11                  |   |  |                        | 54       |   |                  |  | 16      |                           |  |  | 125                                         |   |  |                                   | -
|Depreciation expense                                                                                                              |  |       | - |  |           |  | (19.669  | )         |  |  | (88.242             | ) |  |                        | (29.417  | ) |                  |  | (2.772  | )                         |  |  | (2.811                                      | ) |  |                                   | -
|Increase(decrease) in foreign currency exchange                                                                                   |  |       | - |  |           |  | 1        |           |  |  | 40                  |   |  |                        | 17       |   |                  |  | -       |                           |  |  | 25                                          |   |  |                                   | -
|Reclassification                                                                                                                  |  |       | - |  |           |  | 15.375   |           |  |  | (3.414              | ) |  |                        | 6.899    |   |                  |  | (2.269  | )                         |  |  | 6.561                                       |   |  |                                   | -
|Other increases (decreases) (*)                                                                                                   |  |       | - |  |           |  | 1        |           |  |  | 2                   |   |  |                        | 15       |   |                  |  | -       |                           |  |  | 33                                          |   |  |                                   | -
|Total changes                                                                                                                     |  |       | - |  |           |  | (4.292   | )         |  |  | (91.603             | ) |  |                        | (22.432  | ) |                  |  | (5.025  | )                         |  |  | 3.933                                       |   |  |                                   | -
|Final balance                                                                                                                     |  |       | - |  |           |  | (178.458 | )         |  |  | (806.136            | ) |  |                        | (179.721 | ) |                  |  | (23.066 | )                         |  |  | (29.147                                     | ) |  |                                   | -



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-118







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 14 | Property, plant and equipment (continued)
| | ------- | -----------------------------------------



| | 14.2 | Reconciliation of changes in property, plant and equipment
by type, continued:
| | ---- | ------------------------------------------------------------------------------



|Reconciliation entries of changes in property, plant and equipment by type as of December
    31, 2014, net |  | Land  |        |   | Buildings |  |         | Machinery |  |  | Transport equipment |   |  | Furniture and fixtures |         |   | Office equipment |  |        | Constructions in progress |  |  | Other property,
    plant and equipment |   |  | Property, plant and
    equipment |         
|----------------------------------------------------------------------------------------------------------- |  | ----- | ------ | - | --------- |  | ------- | --------- |  |  | ------------------- | - |  | ---------------------- | ------- | - | ---------------- |  | ------ | ------------------------- |  |  | --------------------------------------- | - |  | --------------------------------- | --------
|                                                                                                            |  | ThUS$ |        |   | ThUS$     |  |         | ThUS$     |  |  | ThUS$               |   |  | ThUS$                  |         |   | ThUS$            |  |        | ThUS$                     |  |  | ThUS$                                   |   |  | ThUS$                             |         
|                                                                                                            |  |       |        |   |           |  |         |           |  |  |                     |   |  |                        |         |   |                  |  |        |                           |  |  |                                         |   |  |                                   |         
|Opening balance                                                                                             |  |       | 33.812 |   |           |  | 190.529 |           |  |  | 465.327             |   |  |                        | 105.979 |   |                  |  | 9.534  |                           |  |  | 6.062                                   |   |  |                                   | 415.740 
|Changes                                                                                                     |  |       |        |   |           |  |         |           |  |  |                     |   |  |                        |         |   |                  |  |        |                           |  |  |                                         |   |  |                                   |         
|Additions                                                                                                   |  |       | -      |   |           |  | 72      |           |  |  | 370                 |   |  |                        | -       |   |                  |  | 71     |                           |  |  | 1.514                                   |   |  |                                   | 134.663 
|Divestitures                                                                                                |  |       | -      |   |           |  | -       |           |  |  | (82                 | ) |  |                        | (31     | ) |                  |  | (70    | )                         |  |  | 67                                      |   |  |                                   | (2.235  
|Depreciation expense                                                                                        |  |       | -      |   |           |  | (19.669 | )         |  |  | (88.242             | ) |  |                        | (29.417 | ) |                  |  | (2.772 | )                         |  |  | (2.811                                  | ) |  |                                   | -       
|Increase(decrease) in foreign currency exchange                                                             |  |       | (87    | ) |           |  | (5      | )         |  |  | (17                 | ) |  |                        | (16     | ) |                  |  | -      |                           |  |  | (40                                     | ) |  |                                   | 4       
|Reclassification                                                                                            |  |       | 812    |   |           |  | 62.248  |           |  |  | (15.496             | ) |  |                        | 5.158   |   |                  |  | 2.253  |                           |  |  | 1.577                                   |   |  |                                   | (256.528
|Other increases (decreases) (*)                                                                             |  |       | 85     |   |           |  | -       |           |  |  | 22                  |   |  |                        | -       |   |                  |  | -      |                           |  |  | (4                                      | ) |  |                                   | (54.323 
|Total changes                                                                                               |  |       | 810    |   |           |  | 42.646  |           |  |  | (103.445            | ) |  |                        | (24.306 | ) |                  |  | (518   | )                         |  |  | 303                                     |   |  |                                   | (178.419
|Final balance                                                                                               |  |       | 34.622 |   |           |  | 233.175 |           |  |  | 361.882             |   |  |                        | 81.673  |   |                  |  | 9.016  |                           |  |  | 6.365                                   |   |  |                                   | 237.321 



(*) The net balance of other increases (decreases)
corresponds to: 1) investment plan expenses which are expensed to profit or loss (forming part of cost of sales and other expenses
per function, as appropriate), 2) the variation representing the purchase and use of materials and spare parts and 3) projects
corresponding mainly to exploration expenditures and stain development.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-119







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 14 | Property, plant and equipment (continued)
| | ------- | -----------------------------------------



| | 14.2 | Reconciliation of changes in property, plant and equipment
by type, continued:
| | ---- | ------------------------------------------------------------------------------



|Reconciliation entries of changes in property, plant and equipment by type as of
    December 31 2013, gross |  | Land  |        |   | Buildings |  |         | Machinery |  |  | Transport equipment |   |  | Furniture and fixtures |         |   | Office equipment |  |        | Constructions in progress |  |  | Other property, plant and
    equipment |   |  | Property, plant and
    equipment |         
|------------------------------------------------------------------------------------------------------------ |  | ----- | ------ | - | --------- |  | ------- | --------- |  |  | ------------------- | - |  | ---------------------- | ------- | - | ---------------- |  | ------ | ------------------------- |  |  | --------------------------------------- | - |  | --------------------------------- | --------
|                                                                                                             |  | ThUS$ |        |   | ThUS$     |  |         | ThUS$     |  |  | ThUS$               |   |  | ThUS$                  |         |   | ThUS$            |  |        | ThUS$                     |  |  | ThUS$                                   |   |  | ThUS$                             |         
|                                                                                                             |  |       |        |   |           |  |         |           |  |  |                     |   |  |                        |         |   |                  |  |        |                           |  |  |                                         |   |  |                                   |         
|Opening balance                                                                                              |  |       | 33.320 |   |           |  | 329.397 |           |  |  | 1.065.641           |   |  |                        | 224.462 |   |                  |  | 22.665 |                           |  |  | 36.215                                  |   |  |                                   | 423.184 
|Changes                                                                                                      |  |       |        |   |           |  |         |           |  |  |                     |   |  |                        |         |   |                  |  |        |                           |  |  |                                         |   |  |                                   |         
|Additions                                                                                                    |  |       | 778    |   |           |  | 47      |           |  |  | 2.100               |   |  |                        | 3       |   |                  |  | 60     |                           |  |  | 835                                     |   |  |                                   | 416.471 
|Divestitures                                                                                                 |  |       | -      |   |           |  | (38     | )         |  |  | (521                | ) |  |                        | (35     | ) |                  |  | -      |                           |  |  | (2                                      | ) |  |                                   | (5.045  
|Increase(decrease) in foreign currency exchange                                                              |  |       | (36    | ) |           |  | (8      | )         |  |  | (39                 | ) |  |                        | (24     | ) |                  |  | -      |                           |  |  | (43                                     | ) |  |                                   | -       
|Reclassification                                                                                             |  |       | -      |   |           |  | 35.700  |           |  |  | 115.281             |   |  |                        | 38.847  |   |                  |  | 4.874  |                           |  |  | 2.154                                   |   |  |                                   | (366.516
|Other increases (decreases) (*)                                                                              |  |       | (250   | ) |           |  | (403    | )         |  |  | (2.602              | ) |  |                        | 15      |   |                  |  | (24    | )                         |  |  | (17                                     | ) |  |                                   | (52.354 
|Total changes                                                                                                |  |       | 492    |   |           |  | 35.298  |           |  |  | 114.219             |   |  |                        | 38.806  |   |                  |  | 4.910  |                           |  |  | 2.927                                   |   |  |                                   | (7.444  
|Final balance                                                                                                |  |       | 33.812 |   |           |  | 364.695 |           |  |  | 1.179.860           |   |  |                        | 263.268 |   |                  |  | 27.575 |                           |  |  | 39.142                                  |   |  |                                   | 415.740 



|Reconciliation entries of changes in property, plant and equipment by type as of December
    31, 2013, Accumulated depreciation |  | Land  |   |  | Buildings |  |          | Machinery |  |  | Transport equipment |   |  | Furniture and fixtures |          |   | Office equipment |  |         | Constructions in progress |  |  | Other property, plant and
    equipment |   |  | Property, plant and equipment |  
|-------------------------------------------------------------------------------------------------------------------------------- |  | ----- | - |  | --------- |  | -------- | --------- |  |  | ------------------- | - |  | ---------------------- | -------- | - | ---------------- |  | ------- | ------------------------- |  |  | --------------------------------------- | - |  | ----------------------------- | -
|                                                                                                                                 |  | ThUS$ |   |  | ThUS$     |  |          | ThUS$     |  |  | ThUS$               |   |  | ThUS$                  |          |   | ThUS$            |  |         | ThUS$                     |  |  | ThUS$                                   |   |  | ThUS$                         |  
|                                                                                                                                 |  |       |   |  |           |  |          |           |  |  |                     |   |  |                        |          |   |                  |  |         |                           |  |  |                                         |   |  |                               |  
|Opening balance                                                                                                                  |  |       | - |  |           |  | (159.666 | )         |  |  | (627.310            | ) |  |                        | (135.508 | ) |                  |  | (15.929 | )                         |  |  | (30.966                                 | ) |  |                               | -
|Changes                                                                                                                          |  |       |   |  |           |  |          |           |  |  |                     |   |  |                        |          |   |                  |  |         |                           |  |  |                                         |   |  |                               |  
|Additions                                                                                                                        |  |       | - |  |           |  | -        |           |  |  | -                   |   |  |                        | -        |   |                  |  | -       |                           |  |  | 10                                      |   |  |                               | -
|Divestitures                                                                                                                     |  |       | - |  |           |  | 24       |           |  |  | 472                 |   |  |                        | -        |   |                  |  | -       |                           |  |  | 2                                       |   |  |                               | -
|Depreciation expense                                                                                                             |  |       | - |  |           |  | (14.520  | )         |  |  | (77,904             | ) |  |                        | (21.787  | ) |                  |  | (2.112  | )                         |  |  | (2.055                                  | ) |  |                               | -
|Impairment                                                                                                                       |  |       | - |  |           |  | -        |           |  |  | (10,085             | ) |  |                        | -        |   |                  |  | -       |                           |  |  | -                                       |   |  |                               | -
|Increase(decrease) in foreign currency exchange                                                                                  |  |       | - |  |           |  | (4       | )         |  |  | 27                  |   |  |                        | 9        |   |                  |  | -       |                           |  |  | 7                                       |   |  |                               | -
|Reclassification                                                                                                                 |  |       | - |  |           |  | -        |           |  |  | -                   |   |  |                        | (2       | ) |                  |  | -       |                           |  |  | 2                                       |   |  |                               | -
|Other increases (decreases) (*)                                                                                                  |  |       | - |  |           |  | -        |           |  |  | 267                 |   |  |                        | (1       | ) |                  |  | -       |                           |  |  | (80                                     | ) |  |                               | -
|Total changes                                                                                                                    |  |       | - |  |           |  | (14.500  | )         |  |  | (87.223             | ) |  |                        | (21.781  | ) |                  |  | (2.112  | )                         |  |  | (2.114                                  | ) |  |                               | -
|Final balance                                                                                                                    |  |       | - |  |           |  | (174.166 | )         |  |  | (714.533            | ) |  |                        | (157.289 | ) |                  |  | (18.041 | )                         |  |  | (33.080                                 | ) |  |                               | -



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-120







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 14 | Property, plant and equipment (continued)
| | ------- | -----------------------------------------



| | 14.3 | Reconciliation of changes in property, plant and equipment
by type, continued:
| | ---- | ------------------------------------------------------------------------------



|Reconciliation entries of changes in property, plant and equipment by type as of December
    31, 2013, net |  | Land  |        |   | Buildings |  |         | Machinery |  |  | Transport equipment |   |  | Furniture and fixtures |         |   | Office equipment |  |        | Constructions in progress |  |  | Other property, plant and
    equipment |   |  | Property, plant and
    equipment |         
|----------------------------------------------------------------------------------------------------------- |  | ----- | ------ | - | --------- |  | ------- | --------- |  |  | ------------------- | - |  | ---------------------- | ------- | - | ---------------- |  | ------ | ------------------------- |  |  | --------------------------------------- | - |  | --------------------------------- | --------
|                                                                                                            |  | ThUS$ |        |   | ThUS$     |  |         | ThUS$     |  |  | ThUS$               |   |  | ThUS$                  |         |   | ThUS$            |  |        | ThUS$                     |  |  | ThUS$                                   |   |  | ThUS$                             |         
|                                                                                                            |  |       |        |   |           |  |         |           |  |  |                     |   |  |                        |         |   |                  |  |        |                           |  |  |                                         |   |  |                                   |         
|Opening balance                                                                                             |  |       | 33.320 |   |           |  | 169.731 |           |  |  | 438.331             |   |  |                        | 88.954  |   |                  |  | 6.736  |                           |  |  | 5.249                                   |   |  |                                   | 423.184 
|Changes                                                                                                     |  |       |        |   |           |  |         |           |  |  |                     |   |  |                        |         |   |                  |  |        |                           |  |  |                                         |   |  |                                   |         
|Additions                                                                                                   |  |       | 778    |   |           |  | 47      |           |  |  | 2.100               |   |  |                        | 3       |   |                  |  | 60     |                           |  |  | 845                                     |   |  |                                   | 416.471 
|Divestitures                                                                                                |  |       | -      |   |           |  | (14     | )         |  |  | (49                 | ) |  |                        | (35     | ) |                  |  | -      |                           |  |  | -                                       |   |  |                                   | (5.045  
|Depreciation expense                                                                                        |  |       | -      |   |           |  | (14.520 | )         |  |  | (87.989             | ) |  |                        | (21.787 | ) |                  |  | (2.112 | )                         |  |  | (2.055                                  | ) |  |                                   | -       
|Increase(decrease) in foreign currency exchange                                                             |  |       | (36    | ) |           |  | (12     | )         |  |  | (12                 | ) |  |                        | (15     | ) |                  |  | -      |                           |  |  | (36                                     | ) |  |                                   | -       
|Reclassification                                                                                            |  |       | -      |   |           |  | 35.700  |           |  |  | 115.281             |   |  |                        | 38.845  |   |                  |  | 4.874  |                           |  |  | 2.156                                   |   |  |                                   | (366.516
|Other increases (decreases) (*)                                                                             |  |       | (250   | ) |           |  | (403    | )         |  |  | (2.335              | ) |  |                        | 14      |   |                  |  | (24    | )                         |  |  | (97                                     | ) |  |                                   | (52.354 
|Total changes                                                                                               |  |       | 492    |   |           |  | 20.798  |           |  |  | 26.996              |   |  |                        | 17.025  |   |                  |  | 2.798  |                           |  |  | 813                                     |   |  |                                   | (7.444  
|Final balance                                                                                               |  |       | 33.812 |   |           |  | 190.529 |           |  |  | 465.327             |   |  |                        | 105.979 |   |                  |  | 9.534  |                           |  |  | 6.062                                   |   |  |                                   | 415.740 



(*) The net balance of other increases (decreases)
corresponds to: 1) investment plan expenses which are expensed to profit or loss (forming part of cost of sales and other expenses
per function, as appropriate), 2) the variation representing the purchase and use of materials and spare parts and 3) projects
corresponding mainly to exploration expenditures and stain development.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-121







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 14 | Property,
                                         plant and equipment (continued)
| | ------- | ----------------------------------------------------------------------------------



| | 14.3 | Detail of property, plant and equipment pledged as guarantee
| | ---- | ------------------------------------------------------------



There are no restrictions in title or guarantees
for the compliance with obligations which affect property, plant and equipment.



| | 14.4 | Additional information
| | ---- | ----------------------



Interest capitalized in construction-in-progress:



The amount capitalized for this concept amounted
to ThUS$7,732 as of December 31, 2014 and ThUS$ 17,232 as of December 31, 2013.



Financing costs are not capitalized for periods
which exceed the normal term of acquisition, construction or installation of the asset, such as the case of delays, interruptions
or temporary suspension of the project due to technical, financial or other issues, which prevent that the asset is maintained
in good conditions for its use.



| | 14.5 | Impairment of assets
| | ---- | --------------------



As stated in Note 3.28, the recoverable amount
of property, plant and equipment is measured whenever there is an indication that the asset may be impaired. As of December 31,
2013, certain assets have suffered impairment for an amount of ThUS$10,085, when taken directly against the asset balance. As of
December 31, 2014, no impairment adjustments were generated.



| | Note 15 | Employee benefits
| | ------- | -----------------



| | 15.1 | Provisions for employee benefits
| | ---- | --------------------------------



|Classes of employee benefits and expenses |  | 12/31/2014 |        |  | 12/31/2013 | 
|----------------------------------------- |  | ---------- | ------ |  | ---------- | 
|                                          |  | ThUS$      |        |  | ThUS$      | 
|Current                                   |  |            |        |  |            | 
|Profit sharing and bonuses                |  |            | 18.384 |  |            | 
|Total                                     |  |            | 18.384 |  |            | 
|                                          |  |            |        |  |            | 
|Non-current                               |  |            |        |  |            | 
|Profit sharing and bonuses                |  |            | 2.849  |  |            | 
|Severance indemnity payments              |  |            | 30.952 |  |            | 
|Total                                     |  |            | 33.801 |  |            | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-122







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 15 | Employee benefits (continued)
| | ------- | -----------------------------



| | 15.2 | Policies on defined benefit plan
| | ---- | --------------------------------



This policy is applied to all benefits received
for services provided by the Company's employees.



Short-term benefits for active employees are
represented by salaries, social welfare benefits, paid time-off, sickness leaves and other leaves, profit sharing and incentives
and non-monetary benefits; e.g., healthcare service, housing, subsidized or free goods or services. These will be paid in a term
which does not exceed twelve months.



The Company only provides compensation and
benefits to active employees, with the exemption of SQM North America which applies the definitions under 15.4 below.



SQM maintains incentive programs for its employees
based on the personal performance, the Company’s performance and other short-term, mid-term and long-term indicators.



For each incentive bonus delivered to the Company’s
employees, there will be a disbursement in the first quarter of the following year and this will be calculated based on profit
for the period at the end of each period applying a factor obtained subsequent to the employee appraisal process.



Employee benefits include retention bonuses
for the Company’s executives, which are linked to the Company’s share price and it is paid in cash. The short-term
portion is presented as provision for current employee benefits and the long-term portion as non-current.



The bonus provided to the Company’s directors
is calculated based on Profit for the period at each year-end and will consider the application of a percentage factor.



The benefit related to vacations (short-term
benefits to employees, current), which is provided in the Labor Code which indicates that employees with more than a year of service
will be entitled to annual holidays for a period not lower than fifteen paid business days. The Company provides the benefit of
two additional vacation days.



Staff severance indemnities are agreed and
payable based on the last salary for each year of service for the Company or with certain maximum limits in respect to the number
of years to be considered or in respect to monetary terms. In general, this benefit is payable when the employee or worker ceases
to provide his/her services to the Company and the right for its collection can be acquired because of different causes, as indicated
in the respective agreements; e.g., retirement, dismissal, voluntary retirement, incapacity or disability, death, etc..



Law No. 19,728 published on May 14, 2001 which
became effective on October 1, 2002 required “Compulsory Unemployment Insurance” in favor of all depending employees
regulated by the Chilean Labor Code. Article 5 of this law provided the financing of this insurance through monthly contribution
payments by both the employee and the employer.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-123







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 15 | Employee benefits (continued)
| | ------- | -----------------------------



| | 15.3 | Other long-term benefits
| | ---- | ------------------------



The other long-term benefits relate to staff severance indemnities
and are recorded at their actuarial value.



|Staff severance indemnities at actuarial value |  | 12/31/2014 |        |  | 12/31/2013 | 
|---------------------------------------------- |  | ---------- | ------ |  | ---------- | 
|                                               |  | ThUS$      |        |  | ThUS$      | 
|Staff severance indemnities, Chile             |  |            | 30.336 |  |            | 
|Other obligations in companies elsewhere       |  |            | 616    |  |            | 
|Total other non-current liabilities            |  |            | 30.952 |  |            | 



Staff severance indemnities have been calculated
under the actuarial assessment method of the Company’s obligations with respect to staff severance indemnities, which relate
to defined benefit plans which consist of days of remuneration per year served at the time of retirement under conditions agreed
in the respective agreements established between the Company and its employees.



Under this benefit plan, the Company retains
the obligation for the payment of staff severance indemnities related to retirements, without establishing a separate fund with
specific assets, which is referred to as not funded. The discount interest rate of expected flows to be used was 5.5%.



Benefit payment conditions



The staff severance indemnity benefit relates
to remuneration days for year worked for the Company with no limit of salary or years of services for the Company, when employees
cease to work for the Company due to turnover or death. In this case, the maximum age for men is 65 years and 60 years old for
women, which are the usual ages for retirement due to achieving the senior citizen age according to the Chilean pensions system
provided in Decree Law 3.500 of 1980.



Methodology



The determination of the obligation for benefits
under IAS 19 Projected Benefit Obligation (PBO) is described as follows:



To determine the Company's total liability,
we used a mathematical simulation model which was programmed using a computer and which processed the situation of each employee
on an individual basis.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-124







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 15 | Employee benefits (continued)
| | ------- | -----------------------------



| | 15.3 | Other long-term benefits, continued
| | ---- | -----------------------------------



This model considered months as discrete time;
i.e. the Company determined the age of each person and his/her salary on a monthly basis according to the growth rate. Thus, information
on each person was simulated from the beginning of the life of his/her employment contract or when he/she started earning benefits
up to the month in which it reaches the normal retirement age, generating in each period the possible retirement according to the
Company’s turnover rate and the mortality rate according to the age reached. When he/she reaches the retirement age, the
employee finishes his/her service for the Company and receives indemnity related to retirement due to old age.



The methodology followed to determine the accrual
for all the employees adhered to agreements has considered turnover rates and the mortality rate RV-2010 established by the Chilean
Superintendence of Securities and Insurance to calculate pension-related life insurance reserves in Chile according to the Accumulated
Benefit Valuation or Accrued Cost of Benefit Method. This methodology is established in IAS 19 on Retirement Benefit Costs.



| | 15.4 | Post-employment benefit obligations
| | ---- | -----------------------------------



Our subsidiary SQM North America, has established
with its employees, a pension plan until 2002 called “SQM North America Retirement Income Plan”, whereby obligation
is calculated measuring the expected future forecasted staff severance indemnity obligation using a net salary gradual rate of
restatements for inflation, mortality and turnover assumptions discounting the resulting amounts at present value using the interest
rate defined by the authorities.



Since 2003, SQM North America offers to its
employee benefits related to pension plans based on the 401-K system, which do not generate obligations for the Company.



The table below shows the plan financing status
and the amounts recognized in the consolidated Statement of Financial Position.





|Reconciliation table                |  | 12/31/2014 |       |   | 12/31/2013 |  |       | 12/31/2012 | 
|----------------------------------- |  | ---------- | ----- | - | ---------- |  | ----- | ---------- | 
|Variation in the benefit obligation |  | ThUS$      |       |   | ThUS$      |  |       | ThUS$      | 
|Benefit obligation at January 1     |  |            | 6,922 |   |            |  | 6,482 |            | 
|Service cost                        |  |            | 2     |   |            |  | 2     |            | 
|Interest cost                       |  |            | 403   |   |            |  | 412   |            | 
|Actuarial gain (loss)               |  |            | 361   |   |            |  | 386   |            | 
|Benefits paid                       |  |            | (364  | ) |            |  | (360  | )          | 
|Benefit obligation at December 31   |  |            | 7,324 |   |            |  | 6,922 |            | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-125







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 15 | Employee benefits (continued)
| | ------- | -----------------------------



| | 15.4 | Post-employment benefit obligations, continued
| | ---- | ----------------------------------------------



|                                                                                 |  | 12/31/2014 |        |   | 12/31/2013 |  |        | 12/31/2012 | 
|-------------------------------------------------------------------------------- |  | ---------- | ------ | - | ---------- |  | ------ | ---------- | 
|Variation in plan assets:                                                        |  | ThUS$      |        |   | ThUS$      |  |        | ThUS$      | 
|Fair value of plan assets as of January 1                                        |  |            | 7,909  |   |            |  | 6,073  |            | 
|Employer contributions                                                           |  |            | 173    |   |            |  | 453    |            | 
|Actual return (loss) on plan assets                                              |  |            | 249    |   |            |  | 1,743  |            | 
|Benefits paid                                                                    |  |            | (364   | ) |            |  | (360   | )          | 
|Fair value of plan assets as of December 31                                      |  |            | 7,967  |   |            |  | 7,909  |            | 
|Financing status                                                                 |  |            | 643    |   |            |  | 987    |            | 
|Items not yet recognized as net periodical pension and healthcare cost elements: |  |            |        |   |            |  |        |            | 
|Net actuarial loss at the beginning of the period                                |  |            | (1,231 | ) |            |  | (2,243 | )          | 
|Amortization during the period                                                   |  |            | 30     |   |            |  | 109    |            | 
|Net profit or loss expected to occur during the period                           |  |            | (702   | ) |            |  | 903    |            | 
|Adjustment to recognize a minimum pension and healthcare obligation              |  |            | (1,903 | ) |            |  | (1,231 | )          | 



As of December 31, 2014, 2013 and 2014, the net periodical pension
and healthcare expense comprised the following elements.



|Reconciliation                                            |  | 12/31/2014 |      |   | 12/31/2013 |  |        | 12/31/2012 | 
|--------------------------------------------------------- |  | ---------- | ---- | - | ---------- |  | ------ | ---------- | 
|                                                          |  | ThUS$      |      |   | ThUS$      |  |        | ThUS$      | 
|Cost of benefits from services obtained during the period |  |            | 2    |   |            |  | 2      |            | 
|Interest cost on benefit obligation                       |  |            | 403  |   |            |  | 412    |            | 
|Actual return on plan assets                              |  |            | 249  |   |            |  | 1,743  |            | 
|Amortization for prior period losses                      |  |            | 30   |   |            |  | 109    |            | 
|Net loss during the period                                |  |            | 340  |   |            |  | (1,290 | )          | 
|Net periodic provisional expense                          |  |            | (155 | ) |            |  | 69     |            | 



| | 15.5 | Staff severance indemnities
| | ---- | ---------------------------



As of December 31, 2014, 2013 and 2014, severance indemnities calculated
at the actuarial value are as follows:



|                              |  | 2014 ThUS$ |         |   | 2013 ThUS$ |  |         | 2012 ThUS$ | 
|----------------------------- |  | ---------- | ------- | - | ---------- |  | ------- | ---------- | 
|Opening balance               |  |            | (32,137 | ) |            |  | (34,431 | )          | 
|Current cost of service       |  |            | (1,294  | ) |            |  | (107    | )          | 
|Interest cost                 |  |            | (2,020  | ) |            |  | (2,248  | )          | 
|Actuarial gain/loss           |  |            | (665    | ) |            |  | (127    | )          | 
|Exchange rate difference      |  |            | 4,450   |   |            |  | 2,946   |            | 
|Benefits paid during the year |  |            | 714     |   |            |  | 1,830   |            | 
|Balance                       |  |            | (30,952 | ) |            |  | (32,137 | )          | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-126







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 15 | Employee benefits (continued)
| | ------- | -----------------------------



| | 15.5 | Staff severance indemnities, continued
| | ---- | --------------------------------------



| | a) | Actuarial assumptions
| | -- | ---------------------



The liability recorded for staff severance indemnity is valued at
the actuarial value method, using the following actuarial assumptions:



|                                    |  | 12/31/2014 |           |   | 12/31/2013 |  |           | 12/31/2012 |  |  |          
|----------------------------------- |  | ---------- | --------- | - | ---------- |  | --------- | ---------- |  |  | ---------
|Mortality rate                      |  |            | RV - 2009 |   |            |  | RV - 2009 |            |  |  | RV - 2009
|Actual annual interest rate         |  |            | 5.5       | % |            |  | 6         | %          |  |  | 6        
|Voluntary retirement rotation rate: |  |            |           |   |            |  |           |            |  |  |          
|Men                                 |  |            | 1.71      | % |            |  | 0.9       | %          |  |  | 0.9      
|Women                               |  |            | 1.96      | % |            |  | 1.53      | %          |  |  | 1.53     
|Salary increase                     |  |            | 3.0       | % |            |  | 3.0       | %          |  |  | 3.0      
|Retirement age:                     |  |            |           |   |            |  |           |            |  |  |          
|Men                                 |  |            | 65        |   |            |  | 65        |            |  |  | 65       
|Women                               |  |            | 60        |   |            |  | 60        |            |  |  | 60       



| | b) | Sensitivity analysis of assumptions
| | -- | -----------------------------------



As of December 31, 2014, the sensitivity analysis
of the main assumptions is as follows:



|Sensitivity analysis   |  | Effect + 100 basis points ThUS$ |        |   | Effect - 100 basis points ThUS$ | 
|---------------------- |  | ------------------------------- | ------ | - | ------------------------------- | 
|Discount rate          |  |                                 | (1,960 | ) |                                 | 
|Employee turnover rate |  |                                 | (112   | ) |                                 | 



Sensitivity relates to an increase/decrease
of 100 basis points.



| | Note 16 | Executive compensation plan
| | ------- | ---------------------------



The Company has established two compensation
plans to motivate the Company’s executives and encourage them to stay in the Company, by granting payments based on the change
in price of SQM’s shares.



| | 1) | Shares
| | -- | ------



Liquidated in cash, executives are able to
exercise their rights until 2016.



Characteristics of the plan



This compensation plan is related with the
company performance through the price of the Series B SQM share (Santiago Stock Exchange).



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-127







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 16 | Executive compensation plan (continued)
| | ------- | ---------------------------------------



Participants in this plan



This compensation plan includes 10 executives
of the Company, who are entitled to this benefit, provided they stay with the Company during the dates these options are exercised.
The dates for exercising the options will be the first 7 calendar days of May of the year in which the options are exercised.



Compensation



The compensation for each executive is the
differential between the average prices of the share during April of each year compared to the base price established by Company’s
management. The base price fixed by the Company for this compensation plan amounts to US$50 per share. The Company reserves the
right to exchange that benefit by shares or share options.



The movement of the options in effect for the
period, the average prices for the fiscal year of the options and the average contractual life of the options in effect as of December
31, 2014 and December 31, 2013 are the following:



|Movement for the period          |  | 2014 |           |  | 2013 | 
|-------------------------------- |  | ---- | --------- |  | ---- | 
|In effect as of January 1        |  |      | 1.536.000 |  |      | 
|Granted during the fiscal year   |  |      | -         |  |      | 
|Redundant workers                |  |      | -         |  |      | 
|Exercised during the fiscal year |  |      |           |  |      | 
|Changes in benefit plan          |  |      | -         |  |      | 
|In circulation                   |  |      | 1.536.000 |  |      | 
|Average contractual life         |  |      | 16 months |  |      | 
|Executives                       |  |      | 10        |  |      | 



The amounts accrued by the plan, as of December
31, 2014 and December 31, 2013, amount to:



|Effect on profit or loss |  | 12/31/2014 ThUS$ |      |   | 12/31/2013 ThUS$ | 
|------------------------ |  | ---------------- | ---- | - | ---------------- | 
|Effect on profit or loss |  |                  | (553 | ) |                  | 



| | 2) | Average Share Price Spread
| | -- | --------------------------



Plan characteristics



This compensation plan is also related to the
Company’s performance through the SQM Series B share price (Santiago Stock Exchange).



Plan participants



This compensation plan includes 30 of the Company’s
executives, who obtain this benefit, provided they remain in the Company at the payment dates. The payments dates, if any, will
be the first week of January 2016, 2017 and 2018.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-128







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 16 | Executive compensation plan (continued)
| | ------- | ---------------------------------------



Compensation



The compensation for each executive is the
differential between the average share price during each of the months of December 2015, December 2016 and December 2017, respectively,
in its equivalent in US dollars and the reference prices. The latter represents the value between US$23.48 and the average weighted
price of the trading of SQM Series B shares in the Santiago Stock Exchange during December 2014. The differential cannot exceed
US$15.00 and will be multiplied by 5,000. If the amount calculated is negative or zero, no bond will be paid during that period,
but in such case, the bond of benefit payable in the following period to the employee will be equal to the product of multiplying
the difference by 10,000. If the value was negative or zero in December 2015 and also in December 2016, for calculating the bond
of December 2017, the differential will be multiplied by 15,000.



The movement of the options in effect for the
period, the average prices for the fiscal year of the options and the average contractual life of the options in effect as of December
31, 2014 and December 31, 2013 are the following:



|Movement for the period           |  | 2014 |           |  | 2013 | 
|--------------------------------- |  | ---- | --------- |  | ---- | 
|In effect as of January 1         |  |      | 450.000   |  |      | 
|Redundant workers                 |  |      | 60.000    |  |      | 
|In circulation                    |  |      | 390.000   |  |      | 
|Average weighted contractual life |  |      | 36 months |  |      | 
|Executives                        |  |      | 26        |  |      | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-129







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 17 | Disclosures on equity
| | ------- | ---------------------



The detail and movements in the funds of equity
accounts are shown in the consolidated statement of changes in equity.



| | 17.1 | Capital management
| | ---- | ------------------



The main object of capital management relative
to the administration of the Company’s financial debt and equity is to ensure the regular conduct of operations and business
continuity in the long term, with the constant intention of maintaining an adequate level of liquidity and in compliance with the
financial safeguards established in the debt contracts in force. Within this framework, decisions are made in order to maximize
the value of SQM.



Capital management must comply with, among
others, the limits contemplated in the Financing Policy approved Board of Directors, which establish a maximum consolidated indebtedness
level of 1.5 times the debt/equity. This limit can be exceeded only if the Company’s management has a written and previously
granted authorization issued at the Extraordinary Shareholders’ Meeting.



In addition, capital management must comply
with the external capital requirements imposed (or covenants) in its financial obligations, which regulate the indebtedness level
by 1.2 times, in its more strict level.



In conjunction with the level of indebtedness,
it is also important for the Company to maintain a comfortable profile of maturities for its financial obligations, in order to
oversee the relation between its short-term financial obligations and the long-term maturities, and the relation they have with
the Company’s asset distribution. Consequently, the Company has maintained a liquidity level of 3 times during the last periods.



The Company’s management controls capital
management based on the following ratios:



|CAPITAL
MANAGEMENT        |  | 12/31/2014 |  | 12/31/2013 |  |  | Description (1)                                                                                            |  | Calculation (1)                                                                                                                                                                                       
|------------------------- |  | ---------- |  | ---------- |  |  | ---------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                          |  |            |  |            |  |  |                                                                                                            |  |                                                                                                                                                                                                       
|Net Financial Debt ThUS$  |  | 762.229    |  | 882.020    |  |  | Financial Debt – Financial Resources                                                                       |  | Other current Financial Liabilities + Other Non-Current Financial Liabilities – Cash and Cash Equivalents – Other Current Financial Assets – Hedging Assets, non-current                              
|                          |  |            |  |            |  |  |                                                                                                            |  |                                                                                                                                                                                                       
|Liquidity                 |  | 4.73       |  | 3.40       |  |  | Current Asset divided by Current Liability                                                                 |  | Total Current Assets / Total Current Liabilities                                                                                                                                                      
|                          |  |            |  |            |  |  |                                                                                                            |  |                                                                                                                                                                                                       
|Net Debt / Capitalization |  | 0.25       |  | 0.27       |  |  | Net Financial Debt divided by Total Equity                                                                 |  | Net financial debt / ( Net financial debt + Total Equity)                                                                                                                                             
|                          |  |            |  |            |  |  |                                                                                                            |  |                                                                                                                                                                                                       
|ROE                       |  | 10.7%      |  | 19.5%      |  |  | Income divided by Total Equity                                                                             |  | Total Income / Equity (UH 12 months)                                                                                                                                                                  
|                          |  |            |  |            |  |  |                                                                                                            |  |                                                                                                                                                                                                       
|ROA                       |  | 13.7%      |  | 16.4%      |  |  | EBITDA – Depreciation divided by Net Total Assets of financial resources less  related parties investments |  | (Gross Income – Administrative Expenses)/ (Total Assets – Cash and Cash Equivalents – Other Current Financial Assets – Other Non-Current Financial Assets – Equity-accounted Investees) (UH 12 months)
|Indebtedness              |  | 1.03       |  | 0.96       |  |  | Total Liability on Equity                                                                                  |  | Total Liabilities / Total Equity                                                                                                                                                                      
|                          |  |            |  |            |  |  |                                                                                                            |  |                                                                                                                                                                                                       
|                          |  |            |  |            |  |  | (1) Assumes the absolute value of the accounting records                                                  



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-130







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 17 | Disclosures on equity (continued)
| | ------- | ---------------------------------



| | 17.1 | Capital management, continued
| | ---- | -----------------------------



The Company’s capital requirements change
depending on variables such as working capital requirements, new investment financing and dividends, among others. The Company
manages its capital structure and makes adjustments on the basis of the prevailing economic conditions so as to mitigate the risks
associated with adverse market conditions and take advantage of the opportunities there may be to improve the liquidity position.



There have been no changes in the capital management
objectives or policy within the years reported in this document. No breaches of external requirements of capital imposed (or covenants)
have been recorded.



| | 17.2 | Disclosures on preferred share capital
| | ---- | --------------------------------------



Issued share capital is divided into 263,196,524
fully paid and subscribed shares with no par value composed of 142,819,552 Series "A" shares and 120,376,972 Series “B”
shares, where both series are preferred shares.



The preferential voting rights for each series are detailed as follows:



Series “A”:



If the election of the Company’s President
results in a tie 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 the director elected by Series B shareholders.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



As of December 31, 2014 and December 31, 2013,
the Group does not maintain shares in the parent either directly or through its companies in which it has investments.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 





F-131









| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 17 | Disclosures on equity (continued)
| | ------- | ---------------------------------



| | 17.2 | Disclosures on preferred share capital, continued
| | ---- | -------------------------------------------------



Detail of types of capital in preference shares:



|Type of capital in preferred shares                                                                         |  | 12/31/2014 |             |  | 12/31/2013 | 
|----------------------------------------------------------------------------------------------------------- |  | ---------- | ----------- |  | ---------- | 
|Description of type of capital in preferred shares                                                          |  | Series A   |             |  | Series B   | 
|Number of authorized shares                                                                                 |  |            | 142,819,552 |  |            | 
|Number of fully subscribed and paid shares                                                                  |  |            | 142,819,552 |  |            | 
|Number of subscribed, partially paid shares                                                                 |  |            | -           |  |            | 
|Par value of shares in ThUS$                                                                                |  |            | 0.9435      |  |            | 
|Increase (decrease) in the number of current shares                                                         |  |            | -           |  |            | 
|Number of current shares                                                                                    |  |            | 142,819,552 |  |            | 
|Number of shares owned by the entity or its subsidiaries or associates                                      |  |            | -           |  |            | 
|Number of shares whose issuance is reserved due to the existence of options or agreements to dispose shares |  |            | -           |  |            | 
|Capital amount in shares ThUS$                                                                              |  |            | 134,750     |  |            | 
|Amount of premium issuance ThUS$                                                                            |  |            | -           |  |            | 
|Amount of reserves ThUS$                                                                                    |  |            | -           |  |            | 
|Total number of subscribed shares, total                                                                    |  |            | 142,819,552 |  |            | 



As of December 31, 2014 and December 31, 2013, the Company has not
placed any new issuances of shares on the market.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-132







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 17 | Disclosures on equity (continued)
| | ------- | ---------------------------------



| | 17.3 | Disclosures on reserves in equity
| | ---- | ---------------------------------



As of December 31, 2014, 2013 and 2014, reserves in equity are detailed
as follows:



|                                                    |  | 12/31/2014 |         |   | 12/31/2013 |  |         | 12/31/2012 | 
|--------------------------------------------------- |  | ---------- | ------- | - | ---------- |  | ------- | ---------- | 
|                                                    |  | ThUS$      |         |   | ThUS$      |  |         | ThUS$      | 
|Foreign currency translation differences reserves   |  |            | (7,701  | ) |            |  | (3,817  | )          | 
|Cash flow hedge reserves                            |  |            | (1,881  | ) |            |  | (3,766  | )          | 
|Actuarial gains (losses) from defined benefit plans |  |            | (1,903  | ) |            |  | (1,231  | )          | 
|Other miscellaneous reserves                        |  |            | (1,677  | ) |            |  | (1,677  | )          | 
|Total other reserves                                |  |            | (13,162 | ) |            |  | (10,491 | )          | 



Reserves for currency exchange conversion



This balance reflects retained earnings for
changes in the exchange rate when converting financial statements of subsidiaries whose functional currency is that of each company’s
country of origin and the presentation currency is the US dollar.



Reserve for cash flow hedges



The Company maintains, as hedge instruments,
financial derivatives related to obligations with the public issued in Unidades de Fomento and Chilean pesos. Changes from the
fair value of derivatives designated and classified as hedges are recognized under this classification.



Reserve for actuarial gains or losses in
defined benefit plans



Our subsidiary SQM North America has established
pension plans for its retired employees that are calculated by measuring the projected obligation of IAS using a net salary progressive
rate net of adjustments to inflation, mortality and turnover assumptions, deducting the resulting amounts at present value using
a 6.5% interest rate for 2014 and 2013.



Other reserves



Corresponds to the acquisition of the subsidiary
SQM Iberian S.A., which was already under ownership of the Company at the acquisition date (IAS 27 R).



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-133







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 17 | Disclosures on equity (continued)
| | ------- | ---------------------------------



| | 17.4 | Dividend policies
| | ---- | -----------------



As required by Article 79 of the Chilean Companies
Act, unless otherwise decided by unanimous vote of the holders of issued and subscribed shares, we must distribute a cash dividend
in an amount equal to at least 30% of our consolidated Profit for the period for year ended as of December 31, unless and except
to the extent it has a deficit in retained earnings (losses not absorbed in prior years).



The Company’s dividend policy for 2014
is as follows:



| | - | Distribution and payment in favor of each shareholder
of a final dividend which will be equivalent to 50% of Profit for the period obtained in 2014.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------



| | - | Distribution and payment, if possible during 2014, of
a provisional dividend which will be recorded against the aforementioned final dividend. This provisional dividend will be paid
probably during the last quarter of 2014 and its amount could not exceed 50% of the retained earnings for distribution obtained
during 2014, which are reflected in the Company’s financial statements as of December 31, 2014.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | The distribution and payment by the Company of the remaining
balance of the final dividend related to Profit for the period for the 2014 commercial year in up to two installments, which will
have to be effectively paid and distributed prior to June 30, 2014.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | An amount equivalent to the remaining 50% of the Company’s
Profit for the period for 2014 will be retained and destined to the financing of operations of one or more of the Company’s
investment projects with no prejudice of the possible future capitalization of the entirety or a portion of this.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | The Board of Directors does not consider the payment
of any additional and interim dividends.
| | - | ---------------------------------------------------------------------------------------------



| | - | The Board of Directors considers as necessary to indicate
that the aforementioned dividends policy corresponds to the intention or expectation of the Board regarding this matter. Consequently,
the enforcement of such dividends policy is necessarily conditioned to net incomes finally obtained, to the results indicating
the Company’s regular forecasts or the existence of certain conditions that could affect them. Notwithstanding the above
and to the extent that such dividend policy undergoes a significant change, SQM S.A. will inform its shareholders in a timely
manner.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-134







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 17 - | Disclosures on equity (continued)
| | --------- | ---------------------------------



| | 17.5 | Provisional dividends
| | ---- | ---------------------



At the Extraordinary Board of Directors’
Meeting of November 18, 2014, the directors unanimously agreed to pay and distribute a provisional dividend as contained in SQM’s
“Dividend Policy for the Commercial Year 2014.”



It was agreed that beginning on December 12,
2014, SQM would pay and distribute a provisional dividend of US$0.41493 per share, which is equivalent to a total amount of approximately
ThUS$102,208 or 50% of net profit for distribution in the commercial year 2014, accumulated as of September 30, 2014. This dividend
is charged to profit for such the commercial year, in favor of the shareholders registered with SQM’s Shareholder’s
Register on the fifth business day prior to December 12, 2014. It is paid in its equivalent amount in Chilean pesos per the “Observed
U.S. dollar” exchange rate or “U.S. dollar” exchange rate, as published in the Official Gazette on December 5,
2014.



On July 7, 2014, at the Extraordinary Shareholders’
Meeting, the shareholders agreed to partially modify the current “2014 Dividends Policy of Sociedad Química y Minera
de Chile S.A.”. This was informed at the General Annual Ordinary Shareholders Meeting held on April 25, 2014 with the main
purpose of incorporating in such “Policy” the payment of an “eventual” dividend (dividendo eventual)
of ThCh$230,000 equivalent to US$0.87387 per share. This will be distributed during the course of 2014 with a charge to retained
earnings and, if applicable, it will be paid in its equivalent amount in Chilean pesos per “Observed U.S. dollar” exchange
rate or “U.S. dollar” exchange rate, as published in the Official Gazette on such date.



At the Extraordinary Board of Directors’
Meeting held on June 6, 2014, the following was agreed by simple majority:



| | 1. | To partially amend the current “2014 Dividends
Policy of Sociedad Química y Minera de Chile S.A.”, informed at the General Annual Ordinary Shareholders Meeting
held on April 25, 2014, with the main purpose of incorporating in such “Policy” the payment of a possible dividend
of ThCh$230,000 equivalent to US$0.87387 per share that will be distributed during 2014 and charged to the caption retained earnings.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2. | To call for an Extraordinary Shareholders’ Meeting
on Monday July 7, 2014 at 10:00, to communicate and resolve the payment of the aforementioned dividend.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------



On April 25, 2014 at the 39th General Shareholders'
meeting, the payment of a final dividend of US$0.88738 per share was agreed in relation to the net profit for 2013. US$0.75609
per share was already paid as an interim dividend, and it was agreed that this amount should be subtracted from the final dividend
detailed above. In line with this, the balance, amounting to US$0.13129 per share it is to be paid and distributed among shareholders
of the Company who are registered with their respective shareholders’ registry as of the fifth business day prior to the
day in which this dividend is to be paid. Such amount, if applicable, is to be paid in its equivalent amount in Chilean pesos per
the value of the “Observed U.S. dollar” or “U.S. dollar” that appears published in the Official Gazette
on April 25, 2014.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-135









| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 17 | Disclosures on equity (continued)
| | ------- | ---------------------------------



| | 17.5 | Provisional dividends, continued
| | ---- | --------------------------------



On November 19, 2013, the Board of Directors
of Sociedad Química y Minera de Chile S.A, agreed to pay and distribute to the Company’s shareholders, starting from
December 12, 2013, a provisional dividend of US$0.75609 per share, equivalent, approximately, to ThUS$199,000 or 49.9% of the net
distributable profit for the commercial year 2013, accumulated at December 31 of such year. The latter is also charged against
income of said commercial year, in favor of the Shareholders who appeared registered in SQM’s Shareholders Registry by the
5th working day prior to December 12, and in its equivalent in Chilean pesos according to the value of the “Observed US Dollar”
or “US Dollar” that appears published in the Official Gazette on December 6, 2013.



On April 25th, 2013, at the 38th Ordinary
Shareholders’ Meeting, a definitive dividend payment of US$1.23323 per share was approved, based on the net profit earned
during the commercial year 2012. US$0.94986 per share that was already paid as provisional dividend should be discounted from the
abovementioned dividend, and the balance, amounting to US$0.28337 per share will be paid and distributed in favor of the Shareholders
who appeared registered in SQM’s Shareholders Registry by the 5th working day prior the day in which the dividend will be
paid. The last amount, if corresponds, will be paid in its equivalent in Chilean pesos according to the value of the “Observed
US Dollar” or “US Dollar” that appears published in the Official Gazette on April 25, 2013.



Dividends presented deducted from equity
are:



|                                               |  | 12/31/2014ThUS$ |         |  | 12/31/2013ThUS$ |  |         | 12/31/2012ThUS$ | 
|---------------------------------------------- |  | --------------- | ------- |  | --------------- |  | ------- | --------------- | 
|Dividends attributable to owners of the parent |  |                 | 114,487 |  |                 |  | 203,401 |                 | 
|Possible provisional dividend                  |  |                 | 230,000 |  |                 |  | -       |                 | 
|Dividends payable                              |  |                 | 38,983  |  |                 |  | 36,583  |                 | 
|Total                                          |  |                 | 383,470 |  |                 |  | 239,984 |                 | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-136







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 18 | Provisions and other non-financial liabilities
| | ------- | ----------------------------------------------



| | 18.1 | Types of provisions
| | ---- | -------------------



|                                                                   |  | 12/31/2014 |        |  | 12/31/2013  | 
|------------------------------------------------------------------ |  | ---------- | ------ |  | ----------- | 
|                                                                   |  | Current    |        |  | Non-current | 
|                                                                   |  | ThUS$      |        |  | ThUS$       | 
|                                                                   |  |            |        |  |             | 
|Provision for legal complaints (*)                                 |  |            | 17,067 |  |             | 
|Restructuring                                                      |  |            | -      |  |             | 
|Provision for dismantling, restoration and rehabilitation cost(**) |  |            | -      |  |             | 
|Other provisions                                                   |  |            | 10,680 |  |             | 
|Total                                                              |  |            | 27,747 |  |             | 



(*) Provisions for legal complaints relate
to legal expenses for lawsuits whose resolution are pending, and correspond to funds estimated necessary to make the disbursement
of expenses incurred for this purpose. This provision relates mainly to the litigation of its subsidiaries located in Brazil and
the United States (see note 19.1) and other litigations.

(**) This provision is calculated considering
the instructions of the regulatory body (Servicio Nacional de Geología y Minería de Chile, Sernageomin)



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-137







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 18 | Provisions and other non-financial liabilities (continued)
| | ------- | ----------------------------------------------------------



| | 18.2 | Description of other provisions
| | ---- | -------------------------------



|Current provisions, other short-term provisions                           |  | 12/31/2014 |        |  | 12/31/2013 | 
|------------------------------------------------------------------------- |  | ---------- | ------ |  | ---------- | 
|                                                                          |  | ThUS$      |        |  | ThUS$      | 
|Provision for tax loss in fiscal litigation                               |  |            | 1,235  |  |            | 
|Royalties, agreement with CORFO (the Chilean Economic Development Agency) |  |            | 6,178  |  |            | 
|Fine to Brazil                                                            |  |            | 2,500  |  |            | 
|Miscellaneous provisions                                                  |  |            | 767    |  |            | 
|Total                                                                     |  |            | 10,680 |  |            | 
|Other long-term provisions                                                |  |            |        |  |            | 
|Mine closure                                                              |  |            | 5,890  |  |            | 
|Total                                                                     |  |            | 5,890  |  |            | 



| | 18.3 | Other non-financial liabilities, current
| | ---- | ----------------------------------------



|Description of other liabilities                 |  | 12/31/2014 |        |  | 12/31/2013 | 
|------------------------------------------------ |  | ---------- | ------ |  | ---------- | 
|                                                 |  | ThUS$      |        |  | ThUS$      | 
|Tax withholdings                                 |  |            | 7,305  |  |            | 
|VAT payable                                      |  |            | 2,267  |  |            | 
|Guarantees received                              |  |            | 746    |  |            | 
|Accrual for dividend                             |  |            | 41,364 |  |            | 
|Monthly tax provisional payments                 |  |            | 8,549  |  |            | 
|Deferred income                                  |  |            | 8,218  |  |            | 
|Withholdings from employees and salaries payable |  |            | 3,764  |  |            | 
|Accrued vacations                                |  |            | 17,369 |  |            | 
|Other current liabilities                        |  |            | 428    |  |            | 
|Total                                            |  |            | 90,010 |  |            | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-138







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 18 | Provisions and other non-financial liabilities (continued)
| | ------- | ----------------------------------------------------------



| | 18.4 | Changes in provisions
| | ---- | ---------------------



|                                                      |  | 12/31/2014 |  
|----------------------------------------------------- |  | ---------- | -
|Description
    of items that gave rise to variations |  | Guarantee  |  
|                                                      |  | ThUS$      |  
|                                                      |  |            |  
|Total
    provisions, initial balance                 |  |            | -
|Changes
    in provisions:                            |  |            |  
|Additional provisions                                 |  |            | -
|Provision used                                        |  |            | -
|Increase(decrease) in foreign currency exchange       |  |            | -
|Total
    provisions, final balance                   |  |            | -



|                                                      |  | 12/31/2013 |  
|----------------------------------------------------- |  | ---------- | -
|Description
    of items that gave rise to variations |  | Guarantee  |  
|                                                      |  | ThUS$      |  
|                                                      |  |            |  
|Total
    provisions, initial balance                 |  |            | -
|Changes
    in provisions:                            |  |            |  
|Additional provisions                                 |  |            | -
|Provision used                                        |  |            | -
|Increase (decrease) in foreign currency exchange      |  |            | -
|Total
    provisions, final balance                   |  |            | -



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-139







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 18 | Provisions and other non-financial liabilities (continued)
| | ------- | ----------------------------------------------------------



| | 18.4 | Changes in provisions, continued
| | ---- | --------------------------------



|                                                      |  | 12/31/2012 |  
|----------------------------------------------------- |  | ---------- | -
|Description
    of items that gave rise to variations |  | Guarantee  |  
|                                                      |  | ThUS$      |  
|                                                      |  |            |  
|Total
    provisions, initial balance                 |  |            | -
|Changes
    in provisions:                            |  |            |  
|Additional provisions                                 |  |            | -
|Provision used                                        |  |            | -
|Increase (decrease) in foreign currency exchange      |  |            | -
|Total
    provisions, final balance                   |  |            | -



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-140







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 18 | Provisions and other non-financial liabilities (continued)
| | ------- | ----------------------------------------------------------



| | 18.5 | Detail of main types of provisions
| | ---- | ----------------------------------



Legal expenses: This provision depends
on the pending resolution of a legal lawsuit, to pay the expenses associated to and incurred during such lawsuit (incurred mainly
in Brazil and the United States).



Tax accrual in tax litigation: This
accrual relates to lawsuits pending resolution related to taxes in Brazil for two of our subsidiaries, SQM Brazil and NNC.



CORFO (Economic Development Agency)
Royalties agreement: Relates to the commercialization of mining properties that SQM Salar S.A. pays the Economic Development
Agency for on a quarterly basis. The amount of the lease payable is calculated based on sales of products extracted from the Salar
de Atacama.



The settlement of the aforementioned amounts
is performed on a quarterly basis.



To date, the Company and its subsidiarieshave no significant uncertainties about the timing and amount of one class of provision.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-141







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 19 | Contingencies and restrictions
| | ------- | ------------------------------



According to note 18.1 the Company has
only registered a provision for the lawsuits in which the probability to lose is “more likely than not”. The Company
is party to lawsuits and other relevant legal actions that are detailed as follows:



| | 19.1 | Lawsuits and other relevant events
| | ---- | ----------------------------------



|1. | Plaintiff     | : | JB Comércio de Fertilizantes and Defensivos Agrícolas Ltda. (JB)                                                                                                                                                                                                                                                                                                                                                                              
|-- | ------------- | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | Defendant     | : | Nitratos Naturais do Chile Ltda. (NNC)                                                                                                                                                                                                                                                                                                                                                                                                        
|   | Date          | : | December 1995                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Court         | : | MM 1a, Vara Civel de Comarca de Barueri, Brazil.                                                                                                                                                                                                                                                                                                                                                                                              
|   | Reason        | : | Compensation claim filed by JB against NNC for having appointed a distributor in a territory of Brazil for which JB had an exclusive contract.                                                                                                                                                                                                                                                                                                
|   | Status        | : | Lower court ruling against Nitratos Naturais do Chile Ltda. and
    recourse of appeal pending resolution.                                                                                                                                                                                                                                                                                                                                    
|   | Nominal value | : | ThUS$1,800                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                               
|2. | Plaintiff     | : | Nancy Erika Urra Muñoz                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | Defendants    | : | Fresia Flores Zamorano, Duratec-Vinilit S.A. and SQM S.A. and
    their insurers                                                                                                                                                                                                                                                                                                                                                              
|   | Date          | : | December 2008                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Court         | : | 1st Civil Court of Santiago                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | Reason        | : | Labor Accident                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Status        | : | Evidence                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | Nominal value | : | ThUS$550                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                               
|3. | Plaintiff     | : | City of Pomona, California USA                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Defendant     | : | SQM North America Corporation                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Date          | : | December 2010                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Court         | : | United States District Court Central District of California                                                                                                                                                                                                                                                                                                                                                                                   
|   | Reason        | : | Payment of expenses and other amount related to the treatment of groundwater to allow for consumption by removing the existing perchlorate in such groundwater and that supposedly come from Chilean fertilizer.                                                                                                                                                                                                                              
|   | Status        | : | The Ninth Court of Appeals revocated the resolution of the District Judge that had invoked the Daubert Doctrine to prevent the declaration in the legal process of a supposed expert from the plaintiff. SQMNA has resorted to writ of certiorari with the US Supreme Court for this to unify the application of the Daubert Doctrine by the Courts of Appeals. This process has been suspended awaiting the resolution of such Supreme Court.
|   | Nominal value | : | ThUS$20,000                                                                                                                                                                                                                                                                                                                                                                                                                                   



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-142







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 19 | Contingencies and restrictions (continued)
| | ------- | ------------------------------------------



18.5	Lawsuits and other relevant
events, continued



|4. | Plaintiff     | : | City of Lindsay, California USA                                                                                                                                                                                                          
|-- | ------------- | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | Defendant     | : | SQM North America Corporation                                                                                                                                                                                                            
|   |               |   | The lawsuit also was filed against Sociedad Química y                                                                                                                                                                                    
|   |               |   | Minera de Chile S.A. this lawsuit has not yet been notified to the Company                                                                                                                                                               
|   | Date          | : | December 2010                                                                                                                                                                                                                            
|   | Court         | : | United States District Court Eastern District of California                                                                                                                                                                              
|   | Reason        | : | Payment of expenses and other amount related to the treatment of groundwater to allow for consumption by removing the existing perchlorate in such groundwater and that supposedly come from Chilean fertilizer.                         
|   | Status        | : | Claim. Processing suspended                                                                                                                                                                                                              
|   | Nominal value | : | Not possible to determine                                                                                                                                                                                                                
|   |               |   |                                                                                                                                                                                                                                          
|5. | Plaintiff     | : | María Angélica Alday Fuentes                                                                                                                                                                                                             
|   | Defendant     | : | Vladimir Roco Alvarez, Compass Catering S.A. and SQM S.A.                                                                                                                                                                                
|   | Date          | : | August 2012                                                                                                                                                                                                                              
|   | Court         | : | 1st Civil Court in Antofagasta                                                                                                                                                                                                           
|   | Reason        | : | Compensation for moral damages for attempt to sexual abuse.                                                                                                                                                                              
|   | Status        | : | Replay to claim.                                                                                                                                                                                                                         
|   | Nominal value | : | ThUS$200                                                                                                                                                                                                                                 
|   |               |   |                                                                                                                                                                                                                                          
|6. | Plaintiff     | : | H&V Van Mele N.V.                                                                                                                                                                                                                        
|   | Defendant     | : | SQM Europe N.V. and its insurance companies                                                                                                                                                                                              
|   | Date          | : | July 2013                                                                                                                                                                                                                                
|   | Court         | : | Commercial Court                                                                                                                                                                                                                         
|   | Reason        | : | Alleged indirect responsibility for the absence of adequate specification for the SOP–WS by the Belgian distributor                                                                                                                      
|   | Status        | : | Evidence                                                                                                                                                                                                                                 
|   | Nominal value | : | ThUS$430                                                                                                                                                                                                                                 
|   |               |   |                                                                                                                                                                                                                                          
|7. | Plaintiff     | : | E-CL S.A                                                                                                                                                                                                                                 
|   | Defendant     | : | Sociedad Química y Minera de Chile S.A.                                                                                                                                                                                                  
|   | Date          | : | September 2013                                                                                                                                                                                                                           
|   | Court         | : | Arbitration                                                                                                                                                                                                                              
|   | Reason        | : | Early termination of the Power Supply Contract entered into on February 12, 1999 (which matures in March 2016), on the basis of the alleged incompliance of a prior sentence between both parties that was resolved in favor of SQM S.A..
|   | Status        | : | Evidentiary stage                                                                                                                                                                                                                        
|   | Nominal value | : | ThUS$5,100                                                                                                                                                                                                                               



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-143







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 19 | Contingencies and restrictions (continued)
| | ------- | ------------------------------------------



19.1	Lawsuits and other relevant
events, continued



|8 . | Plaintiff     | : | Carlos Aravena Carrizo et al.                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ------------- | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | Defendant     | : | SQM Nitratos S.A. and its insurers                                                                                                                                                                                                                                                                                                                                                                                        
|    | Date          | : | May 2014                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | Court         | : | 18th Civil Court of Santiago                                                                                                                                                                                                                                                                                                                                                                                              
|    | Reason        | : | Compensation claim for alleged civil liability under tort as a result of a explosion that occurred on September 6, 2010 near Baquedano, causing the death of 6 workers.                                                                                                                                                                                                                                                   
|    | Status        | : | Claim                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | Nominal value | : | ThUS$8.200                                                                                                                                                                                                                                                                                                                                                                                                                
|    |               |   |                                                                                                                                                                                                                                                                                                                                                                                                                           
|9.  | Plaintiff     | : | Corporación de Fomento de la Producción (CORFO)                                                                                                                                                                                                                                                                                                                                                                           
|    | Defendant     | : | SQM Salar S.A. and Sociedad Química y Minera de Chile S.A.                                                                                                                                                                                                                                                                                                                                                                
|    | Date          | : | May 2014                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | Court         | : | Arbitral court                                                                                                                                                                                                                                                                                                                                                                                                            
|    | Reason        | : | Early termination of lease agreement entered into on November 12, 1993 maturing on December, 2030 -i- because of alleged noncompliance of the full payment of quarterly income related to certain products between 2009-2013 and -ii- and alleged lack of demarcation of certain mining properties owned by CORFO for which a demarcation was never required in such agreement, and in addition, compensation for damages.
|    | Status        | : | Settlement                                                                                                                                                                                                                                                                                                                                                                                                                
|    | Nominal value | : | ThUS$9,000                                                                                                                                                                                                                                                                                                                                                                                                                
|    |               |   |                                                                                                                                                                                                                                                                                                                                                                                                                           
|10  | Plaintiff     | : | Evt Consulting SpA                                                                                                                                                                                                                                                                                                                                                                                                        
|    | Defendant     | : | SQM Nitratos S.A.                                                                                                                                                                                                                                                                                                                                                                                                         
|    | Date          | : | October 2014                                                                                                                                                                                                                                                                                                                                                                                                              
|    | Court         | : | 23th Civil Court of Santiago                                                                                                                                                                                                                                                                                                                                                                                              
|    | Reason        | : | Claim requesting compensation for damages for purchase and sale of metallic structures contract termination.                                                                                                                                                                                                                                                                                                              
|    | Status        | : | Rejoinder                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | Nominal value | : | ThUS$835                                                                                                                                                                                                                                                                                                                                                                                                                  



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-144







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 19 | Contingencies and restrictions (continued)
| | ------- | ------------------------------------------



| | 19.1 | Lawsuits and other relevant events, continued
| | ---- | ---------------------------------------------



The Company and its subsidiaries have been
involved and will probably continue to be involved either as plaintiffs or defendants in certain judicial proceedings that have
been and will be heard by the Arbitral or Ordinary Courts of Justice that will make the final decision. Those proceedings that
are regulated by the appropriate legal regulations are intended to exercise or oppose certain actions or exceptions related to
certain mining claims either granted or to be granted and that do not or will not affect in an essential manner the development
of the Company and its subsidiaries.



Soquimich Comercial S.A. has been involved
and will probably continue being involved either as plaintiff or defendant in certain judicial proceedings through which it intends
to collect and receive the amounts owed, the total nominal value of which is approximately ThUS$700.



The Company has made efforts and continues
making efforts to obtain payment of certain amounts that are still owed it on occasion of their activities. Such amounts will continue
to be required using judicial or non-judicial means by the plaintiffs, and the actions and exercise related to these are currently
in full force and effect.



The Company and its subsidiaries have not
received legal notice of any claims other than those mentioned in paragraph I above. The claims detailed above seek to annul certain
mining claims that were purchased by SQM S.A. and Subsidiaries, the proportional purchase value of which, with respect to the portion
affected by the superimposition, exceeds the nominal and approximate amount of ThUS$150. The claims seek payment of certain amounts
allegedly owed by the Company due to its own activities, which exceed the approximate, nominal and individual amount of ThUS$150.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-145







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 19 | Contingencies and restrictions (continued)
| | ------- | ------------------------------------------



| | 19.2 | Restrictions to management or financial limits
| | ---- | ----------------------------------------------



Credit contracts subscribed by the SQM
Group with domestic and foreign banks and the issuance of bonuses in the local and international market require that the Company
comply with the following level of consolidated financial indicators, calculated for a moving period which considers the last twelve
months:



| | - | To maintain a minimum equity of ThUS$1,000,000.
| | - | -----------------------------------------------

| | - | To maintain a Net Financial Debt to EBITDA ratio not higher than 3 times.
| | - | -------------------------------------------------------------------------

| | - | To maintain a total Indebtedness Ratio not higher than 1.2 times. The total Indebtedness Ratio
is defined as the total liabilities divided by total equity.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------

| | - | To maintain a ratio between the financial debt of the operating subsidiaries SQM Industrial S.A.
and SQM Salar S.A., or their respective legal successors, and the Issuer’s total consolidated current assets not higher than
0.3 times.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



As of December 31, 2014, the aforementioned
financial indicators are as follows:



|Indicator                                        |  | 12/31/2014 |           |  | 12/31/2013 | 
|------------------------------------------------ |  | ---------- | --------- |  | ---------- | 
|Equity ThUS$                                     |  |            | 2,292,515 |  |            | 
|Net Financial Debt/EBITDA                        |  |            | 1.03      |  |            | 
|Indebtedness                                     |  |            | 1.03      |  |            | 
|SQM Industrial and SQM Salar debt/Current assets |  |            | 0.02      |  |            | 



Issuance contracts for bonds issued abroad
does not require that the Company merge or dispose at any title the asset as a whole or as a substantial part of it, unless the
following copulative conditions are met: (i) the legal successor company is an entity subject to Chilean or American laws, and
assumes under a complimentary contract the Company’s obligations, (ii) the Issuer does not fail to comply immediately after
the merge or disposal, and (iii) the Issuer delivers a legal opinion stating the merge or disposal and the complimentary contract
meet the requirements described in the original contract.



In addition, SQM S.A. is committed to disclose
financial information on quarterly basis.



The Company and its subsidiaries have complied
and are fully complying with all aforementioned limitations, restrictions and obligations.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-146







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 19 | Contingencies and restrictions (continued)
| | ------- | ------------------------------------------



| | 19.3 | Commitments
| | ---- | -----------



The subsidiary SQM Salar S.A. has signed
a rental contract with the Economic Development Agency (CORFO), which establishes that the subsidiary will pay rent to CORFO for
the concept of commercialization of certain mining properties owned by CORFO and for the products resulting from the commercialization.
The annual rent stated in the aforementioned contract is calculated on the basis of sales of each type of product. The contract
is in force until 2030, and rent began being paid in 1996 reflecting an expense amount of ThUS$ 21,070 as of December 31, 2014
(ThUS$ 22,885 as of December 31, 2013).



On 15 November 2013, Corporación
de Fomento de la Producción (CORFO) sent a letter to SQM Salar S.A. (SQMS) stating its intention to a) collect the amount
of Ch$2,530,298,919 (ThUS$4,823) that in CORFO’s opinion, SQMS would owe to it for the calculation and payment of rental
payments according to the “Lease Agreement of OMA Mining Claims located in the Salar de Atacama” entered into between
CORFO and SQMS on November 12, 1993 (the AGREEMENT) and b) require the constitution of an instance of arbitrage stated in the AGREEMENT
with the purpose that the arbitrator appointed by the “Arbitration Center of the Santiago Chamber of Commerce” determines
if other alleged lease payment obligations may exist that SQMS could owe to CORFO under the AGREEMENT. SQMS differs completely
form CORFO’s claims. In fact, the AGREEMENT has been in force for more than 20 years and during all this time, SQMS has paid
to CORFO more than 80 quarterly payments in their entirety and on a timely basis that CORFO has received satisfactorily. Each of
the parties, CORFO and SQMS, have requested the formation of an appropriate arbitration and such processes have not yet began.



CORFO’s total claimed amount is of
at least US$8,940,829 - plus interest and expenses. The SQM Salar S.A. v. CORFO, and CORFO v. SQM Salar S.A. lawsuits have been
compiled into a single proceeding which is soon to reach the evidence stage. CORFO and SQM waived all appeal procedures against
the arbitrator’s sentence. However, it is not possible to rule out the filing of a new appeal against a complaint proceeding
or extraordinary appeal arbitration ruling due to incompetence or ultra petita, invoking jurisprudence of the courts of justice
indicating that both appeals cannot be waived.



During 2014, revenues related to products
from the Salar de Atacama represented 39.3% of total consolidated revenues of the Company for the same period. This corresponds
to revenues from the Potassium and Lithium product business lines.



Additionally, during the same period, SQM
Salar, a SQM subsidiary which operates plants located in the Atacama saltpeter deposit, sold potassium salts (sylvinite) and moist
potassium chloride amounting to ThUS$88,872 to SQM Industrial, a SQM subsidiary, to use as supplies in the production of potassium
nitrate.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-147







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 19 | Contingencies and restrictions (continued)
| | ------- | ------------------------------------------



| | 19.4 | Restricted or pledged cash
| | ---- | --------------------------



The subsidiary Isapre Norte Grande Ltda.,
in compliance with that established by the Chilean Superintendence of Healthcare which regulates the running of pension-related
health institutions, maintains a guarantee in financial instruments delivered in deposits, custody and administration to Banco
de Chile.



This guarantee, according to the regulations
issued by the Chilean Superintendence of Healthcare is equivalent to the total sum owed to its members and medical providers Banco
de Chile reports the present value of the guarantee to the Chilean Superintendence of Healthcare and Isapre Norte Grande Ltda.
on a daily basis. As of December 31, 2014, the guarantee amounts to ThUS$682.



SQM S.A. maintains funds with Morgan Stanley for margin call,
which provide collateral for the exposure by the bank with respect to the Company.



Such collateral hedges the fair value of the Cross Currency
Swap that SQM SA has entered into to hedge a portion of the Series H Bond.



Through the present date, SQM S.A. has delivered ThUS$ 3,250
to Morgan Stanley, which will be released when one of the following conditions occurs:



| | 1. | The market value of the Cross Currency Swap is lower than the sum delivered ThUS$ 3,250 and the collateral threshold ThUS$
5,000.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------

| | 2. | The Cross Currency Swap associated with the Series H Bond expires on January 5, 2018.
| | -- | -------------------------------------------------------------------------------------



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-148







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 19 | Contingencies and restrictions (continued)
| | ------- | ------------------------------------------



| | 19.5 | Securities obtained from third parties
| | ---- | --------------------------------------



The main security received from third parties
to guarantee Soquimich Comercial S.A.’s compliance with obligations in contracts of commercial mandates for the distribution
and sale of fertilizers amounted to ThUS$9,176 and ThUS$14,178 on December 31, 2014 and December 31, 2013 respectively; which is
detailed as follows:



|                               |  |                       |  | 12/31/2014 |       |  | 12/31/2013 | 
|------------------------------ |  | --------------------- |  | ---------- | ----- |  | ---------- | 
|Grantor                        |  | Relationship          |  | ThUS$      |       |  | ThUS$      | 
|Agrícola Lobert Ltda.          |  | Unrelated third party |  |            | 837   |  |            | 
|Agroc Patricio Bornand L. Eirl |  | Unrelated third party |  |            | 363   |  |            | 
|Agrocomercial Bornand Ltda.    |  | Unrelated third party |  |            | -     |  |            | 
|Agroindustrial Orzonaga Ltda.  |  | Unrelated third party |  |            | -     |  |            | 
|Bernardo Guzman Schmidt        |  | Unrelated third party |  |            | 129   |  |            | 
|Bioleche Comercial Ltda.       |  | Unrelated third party |  |            | -     |  |            | 
|Comercial Agrosal Ltda.        |  | Unrelated third party |  |            | 108   |  |            | 
|Contador Frutos S.A.           |  | Unrelated third party |  |            | 1,623 |  |            | 
|Llanos Y Wannes Soc. Com. Ltda |  | Unrelated third party |  |            | 1,633 |  |            | 
|Dante Hauri Gomez              |  | Unrelated third party |  |            | 109   |  |            | 
|Gilberto Rivas Y Cia. Ltda.    |  | Unrelated third party |  |            | 129   |  |            | 
|Hortofruticola La Serena       |  | Unrelated third party |  |            | 301   |  |            | 
|Jose Antonio Gonzalez          |  | Unrelated third party |  |            | -     |  |            | 
|Johannes Epple Davanzo         |  | Unrelated third party |  |            | 691   |  |            | 
|Juan Luis Gaete Chesta         |  | Unrelated third party |  |            | 266   |  |            | 
|Lemp Martin Julian             |  | Unrelated third party |  |            | 115   |  |            | 
|Neyib Farran Y Cia. Ltda.      |  | Unrelated third party |  |            | 124   |  |            | 
|Patricio Meneses Saglieto      |  | Unrelated third party |  |            | -     |  |            | 
|Sebastian Urrutia Araya        |  | Unrelated third party |  |            | 117   |  |            | 
|Soc.Agr. Huifquenco Cia Ltda.  |  | Unrelated third party |  |            | 108   |  |            | 
|Soc. Agrocom. Julio Polanco    |  | Unrelated third party |  |            | 296   |  |            | 
|Tattersall Agroinsumos S.A.    |  | Unrelated third party |  |            | 2,000 |  |            | 
|Vicente Oyarce Castro          |  | Unrelated third party |  |            | 227   |  |            | 
|Total                          |  |                       |  |            | 9,176 |  |            | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-149







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 19 | Contingencies and restrictions (continued)
| | ------- | ------------------------------------------



19.6	Indirect guarantees



Guarantees in which there is no pending balance indirectly reflect
that the respective guarantees are in force and approved by the Company's Board of Directors and have not been used by the respective
subsidiary.



|                                      |  | Debtor                           |  |              |  | Balances
    as of theclosing
    date of thefinancial statements | 
|------------------------------------- |  | -------------------------------- |  | ------------ |  | ----------------------------------------------------------------- | 
|                                      |  |                                  |  |              |  | Type
    of                                                       | 
|Creditor
    of the guarantee         |  | Name                             |  | Relationship |  | guarantee                                                         | 
|                                      |  |                                  |  |              |  |                                                                   | 
|Australian and New Zealand Bank       |  | SQM North America Corp           |  | Subsidiary   |  | Bond                                                              | 
|Australian and New Zealand Bank       |  | SQM Europe N.V.                  |  | Subsidiary   |  | Bond                                                              | 
|Generale Bank                         |  | SQM North America Corp           |  | Subsidiary   |  | Bond                                                              | 
|Generale Bank                         |  | SQM Europe N.V.                  |  | Subsidiary   |  | Bond                                                              | 
|Kredietbank                           |  | SQM North America Corp           |  | Subsidiary   |  | Bond                                                              | 
|Kredietbank                           |  | SQM Europe N.V.                  |  | Subsidiary   |  | Bond                                                              | 
|Banks and financial institutions      |  | SQM Investment Corp. N.V.        |  | Subsidiary   |  | Bond                                                              | 
|Banks and financial institutions      |  | SQM Europe N.V.                  |  | Subsidiary   |  | Bond                                                              | 
|Banks and financial institutions      |  | SQM North America Corp           |  | Subsidiary   |  | Bond                                                              | 
|Banks and financial institutions      |  | Nitratos Naturais do Chile Ltda. |  | Subsidiary   |  | Bond                                                              | 
|Banks and financial institutions      |  | SQM México S.A. de C.V.          |  | Subsidiary   |  | Bond                                                              | 
|Banks and financial institutions      |  | SQM Brasil Ltda.                 |  | Subsidiary   |  | Bond                                                              | 
|“BNP”                                 |  | SQM Investment Corp. N.V.        |  | Subsidiary   |  | Bond                                                              | 
|Sociedad Nacional de Mineria A.G.     |  | SQM Potasio S.A.                 |  | Subsidiary   |  | Bond                                                              | 
|JP Morgan Chase Bank                  |  | SQM Industrial S.A.              |  | Subsidiary   |  | Bond                                                              | 
|The Bank of Nova Scotia               |  | SQM Investment Corp. N.V.        |  | Subsidiary   |  | Bond                                                              | 
|Morgan Stanley Capital Services       |  | SQM Investment Corp. N.V.        |  | Subsidiary   |  | Bond                                                              | 
|The Bank of Tokyo-Mitsubishi UFJ Ltd. |  | SQM Investment Corp. N.V.        |  | Subsidiary   |  | Bond                                                              | 
|HSBC                                  |  | SQM Investment Corp. N.V.        |  | Subsidiary   |  | Bond                                                              | 
|Deutsche Bank AG                      |  | SQM Investment Corp. N.V.        |  | Subsidiary   |  | Bond                                                              | 
|Credit Suisse International           |  | SQM Investment Corp. N.V.        |  | Subsidiary   |  | Bond                                                              | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-150







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 19 | Contingencies and restrictions (continued)
| | ------- | ------------------------------------------



| | 19.6 | Indirect guarantees, continued
| | ---- | ------------------------------



The bonds which disclose a balance as of December 31, 2014 and
December 31, 2013 are detailed below:





|                                      |  | Debtor                    |  |              |  | Pending
    balances as ofthe
    closing date of thefinancial statements | 
|------------------------------------- |  | ------------------------- |  | ------------ |  | ------------------------------------------------------------------------- | 
|Creditor
    of the guarantee         |  | Name                      |  | Relationship |  | Type
    ofguarantee                                                      | 
|Scotiabank & Trust (Cayman)
    Ltd.  |  | Royal Seed Trading A.V.V. |  | Subsidiary   |  | Bond                                                                      | 
|Scotiabank & Trust (Cayman) Ltd.      |  | Royal Seed Trading A.V.V. |  | Subsidiary   |  | Bond                                                                      | 
|Bank of America                       |  | Royal Seed Trading A.V.V. |  | Subsidiary   |  | Bond                                                                      | 
|Export Development Canada             |  | Royal Seed Trading A.V.V. |  | Subsidiary   |  | Bond                                                                      | 
|The Bank of Tokyo-Mitsubishi UFJ Ltd. |  | Royal Seed Trading A.V.V. |  | Subsidiary   |  | Bond                                                                      | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-151







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 20 | Revenue
| | ------- | -------



As of December 31, 2014 and 2013, revenue is detailed as follows:



|Types of revenue      |  | 12/31/2014 |           |  | 12/31/2013 |  |           | 12/31/2012 | 
|--------------------- |  | ---------- | --------- |  | ---------- |  | --------- | ---------- | 
|                      |  | ThUS$      |           |  | ThUS$      |  |           | ThUS$      | 
|Sales of goods        |  |            | 2,006,452 |  |            |  | 2,191,650 |            | 
|Provision of services |  |            | 7,762     |  |            |  | 11,490    |            | 
|Total                 |  |            | 2,014,214 |  |            |  | 2,203,140 |            | 



| | Note 21 | Earnings per share
| | ------- | ------------------



Basic earnings per share are calculated
by dividing net income attributable to the Company’s shareholders by the weighted average of the number of shares in circulation
during that period.



As expressed, earnings per share are detailed
as follows:



|Basic earnings per share                               |  | 12/31/2014ThUS$ |         |  | 12/31/2013ThUS$ |  |         | 12/31/2012ThUS$ | 
|------------------------------------------------------ |  | --------------- | ------- |  | --------------- |  | ------- | --------------- | 
|                                                       |  |                 |         |  |                 |  |         |                 | 
|Earnings (losses) attributable to owners of the parent |  |                 | 236,889 |  |                 |  | 467,113 |                 | 



|                                       |  | 12/31/2014Units |             |  | 12/31/2013Units |  |             | 12/31/2012Units | 
|-------------------------------------- |  | --------------- | ----------- |  | --------------- |  | ----------- | --------------- | 
|Number of common shares in circulation |  |                 | 263,196,524 |  |                 |  | 263,196,524 |                 | 



|                                         |  | 12/31/2014 |      |  | 12/31/2013 |  |      | 12/31/2012 | 
|---------------------------------------- |  | ---------- | ---- |  | ---------- |  | ---- | ---------- | 
|                                         |  |            |      |  |            |  |      |            | 
|Basic earnings per share (US$ per share) |  |            | 0.90 |  |            |  | 1.77 |            | 



The Company has not made any operations
with a potential dilutive effect that assumes diluted earnings per share are different from the basic earnings per share.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-152







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 22 | Borrowing costs
| | ------- | ---------------



The cost of interest is recognized as expenses
in the year in which it is incurred, except for interest that is directly related to the acquisition and construction of tangible
property, plant and equipment assets and that complies with the requirements of IAS 23. As of December 31, 2014, total interest
expenses incurred amount to ThUS$63,373 (ThUS$58,608 as of December 31, 2013) and ThUS$ 54,095 as of December 31, 2012.



The Company capitalizes all interest costs
directly related to the construction or to the acquisition of property, plant and equipment, which require a substantial time to
be suitable for use.



| | 22.1 | Costs of capitalized interest, property, plant and equipment
| | ---- | ------------------------------------------------------------



The
cost of capitalized interest is determined by applying the average or weighted average of all financing costs incurred by the Company
to the monthly end balances of works-in-progress meeting the requirements of IAS 23.



The rates and costs for capitalized interest
of property, plant and equipment are detailed as follows:



|                                                                                     |  | 12/31/2014 |       |   | 12/31/2013 | 
|------------------------------------------------------------------------------------ |  | ---------- | ----- | - | ---------- | 
|                                                                                     |  |            |       |   |            | 
|Capitalization rate of costs for capitalized interest, property, plant and equipment |  |            | 7     | % |            | 
|                                                                                     |  |            |       |   |            | 
|Amount of costs for interest capitalized in ThUS$                                    |  |            | 7,732 |   |            | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-153







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 23 | Effect of fluctuations on foreign currency exchange rates
| | ------- | ---------------------------------------------------------



| | a) | Foreign currency exchange differences recognized in profit or loss except for financial instruments
measured at fair value through profit or loss:
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------



|                                                                                          |  | 12/31/2014ThUS$ |         |   | 12/31/2013ThUS$ |  |         | 12/31/2012ThUS$ | 
|----------------------------------------------------------------------------------------- |  | --------------- | ------- | - | --------------- |  | ------- | --------------- | 
|                                                                                          |  |                 |         |   |                 |  |         |                 | 
|Conversion foreign exchange gains (losses) recognized in the result of the year.          |  |                 | (16,545 | ) |                 |  | (11,954 | )               | 
|Conversion foreign exchange reserves attributable to the owners of the controlling entity |  |                 | (3,884  | ) |                 |  | (3,487  | )               | 
|                                                                                          |  |                 |         |   |                 |  |         |                 | 
|Conversion foreign exchange reserves attributable to the non-controlling entity           |  |                 | (132    | ) |                 |  | (72     | )               | 



| | b) | Reserves for foreign currency exchange differences:
| | -- | ---------------------------------------------------



As of December 31, 2014, and December 31, 2013, foreign currency
exchange differences are detailed as follows:



|Detail                                                        |  | 12/31/2014ThUS$ |        |   | 12/31/2013ThUS$ |  |        | 12/31/2012ThUS$ | 
|------------------------------------------------------------- |  | --------------- | ------ | - | --------------- |  | ------ | --------------- | 
|                                                              |  |                 |        |   |                 |  |        |                 | 
|Changes in equity generated by conversion of equity value:    |  |                 |        |   |                 |  |        |                 | 
|Comercial Hydro S.A.                                          |  |                 | 1,004  |   |                 |  | 1,004  |                 | 
|SQMC Internacional Ltda.                                      |  |                 | -      |   |                 |  | 22     |                 | 
|Proinsa Ltda.                                                 |  |                 | -      |   |                 |  | 16     |                 | 
|Comercial Agrorama Ltda.                                      |  |                 | (31    | ) |                 |  | 36     |                 | 
|Isapre Norte Grande Ltda.                                     |  |                 | (91    | ) |                 |  | 15     |                 | 
|Almacenes y Depósitos Ltda.                                   |  |                 | 42     |   |                 |  | 69     |                 | 
|Sales de Magnesio Ltda.                                       |  |                 | 2      |   |                 |  | 103    |                 | 
|Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A. |  |                 | (8     | ) |                 |  | 9      |                 | 
|Agrorama S.A.                                                 |  |                 | (30    | ) |                 |  | (16    | )               | 
|Doktor Tarsa                                                  |  |                 | (5,076 | ) |                 |  | (3,647 | )               | 
|SQM Vitas Fzco.                                               |  |                 | (1,084 | ) |                 |  | (657   | )               | 
|Ajay Europe                                                   |  |                 | (809   | ) |                 |  | 146    |                 | 
|SQM Eastmed Turkey                                            |  |                 | (69    | ) |                 |  | (42    | )               | 
|Charlee SQM (Thailand) Co. Ltd.                               |  |                 | (176   | ) |                 |  | (129   | )               | 
|Coromandel SQM India                                          |  |                 | (253   | ) |                 |  | (231   | )               | 
|SQM Italia SRL                                                |  |                 | (128   | ) |                 |  | 89     |                 | 
|SQM Oceanía Pty Ltd.                                          |  |                 | (634   | ) |                 |  | (619   | )               | 
|SQM Indonesia S.A.                                            |  |                 | (123   | ) |                 |  | 15     |                 | 
|Abu Dhabi Fertillizers Industries WWL.                        |  |                 | 20     |   |                 |  | -      |                 | 
|SQM Vitas Holland                                             |  |                 | (189   | ) |                 |  | -      |                 | 
|SQM Thailand Limited                                          |  |                 | (68    | ) |                 |  | -      |                 | 
|Total                                                         |  |                 | (7,701 | ) |                 |  | (3,817 | )               | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-154







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 23 | Effect of fluctuations on foreign currency exchange
rates (continued)
| | ------- | ---------------------------------------------------------------------



| | c) | Functional and presentation currency
| | -- | ------------------------------------



The functional currency in these companies
corresponds to the currency of the country of origin of each entity, and its presentation currency is the U.S. dollar.



| | d) | Reasons to use one presentation currency and a different functional currency
| | -- | ----------------------------------------------------------------------------



| | - | The total revenues of these subsidiaries are associated
with the local currency.
| | - | --------------------------------------------------------------------------------



| | - | The commercialization cost structure of these companies
is affected by the local currency.
| | - | ------------------------------------------------------------------------------------------



| | - | The equities of these companies
are expressed in local currency (Chilean peso).
| | - | -------------------------------------------------------------------------------



| | Note 24 | Environment
| | ------- | -----------



| | 24.1 | Disclosures of disbursements related to the environment
| | ---- | -------------------------------------------------------



The Company is continuously concerned with
protecting the environment both in its production processes and with respect to products manufactured. This commitment is supported
by the principles indicated in the Company’s Sustainable Development Policy. The Company is currently operating under an
Environmental Management System (EMS) that has allowed it to strengthen its environmental performance through the effective application
of the Company’s Sustainable Development Policy.



Operations that use caliche as a raw material
are carried out in desert areas with climatic conditions that are favorable for drying solids and evaporating liquids using solar
energy. Operations involving the open-pit extraction of minerals, due to their low waste-to-mineral ratio, generate remaining deposits
that slightly alter the environment. A portion of the ore extracted is crushed, a process in which particle emissions occur. Currently
this operation is conducted only at the Pedro de Valdivia worksite and no ore crushing process is conducted in the María
Elena sector.



Many of the Company’s products are
shipped in bulk at the Port of Tocopilla. In 2007, the city of Tocopilla was declared a zone saturated with MP10 Particles mainly
due to the emissions from the electric power plants that operate in that city. In October 2010, the Decontamination Plan for Tocopilla
was put in place. Accordingly, the Company has committed to taking several measures to mitigate the effects derived from bulk product
movements in the port. These measures have been successfully implemented since 2007.



The Company carries out environmental follow-up
and monitoring plans based on specialized scientific studies. Within this context, the Company entered into a contract with the
National Forestry Corporation (CONAF) aimed at researching the activities of flamingo groups that live in the Salar de Atacama
lagoons. Such research includes a population count of the birds, as well as breeding research. Environmental monitoring activities
carried out by the Company at the Salar de Atacama and other systems in which it operates are supported by a number of studies
that have integrated diverse scientific efforts from prestigious research centers, including Dictuc from the Pontificia Universidad
Católica in Santiago and the School of Agricultural Science of the Universidad de Chile.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-155







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 24 | Environment (continued)
| | ------- | -----------------------



| | 24.1 | Disclosures of disbursements related to the environment, continued
| | ---- | ------------------------------------------------------------------



Furthermore, within the framework of the
environmental studies which the Company is conducting, the Company performs significant activities in relation to the recording
of Pre-Columbian and historical cultural heritage, as well as the protection of heritage sites, in accordance with current Chilean
laws. These activities have been especially performed in the areas surrounding Maria Elena and the Nueva Victoria plants. This
effort is being accompanied by cultural initiatives within the community and the organization of exhibits in local and regional
museums.



As emphasized in its Sustainable Development
Policy, the Company strives to maintain positive relationships with the communities surrounding the locations in which it carries
out its operations, as well as to participate in communities’ development by supporting joint projects and activities which
help to improve the quality of life for residents. For this purpose, the Company has focused its efforts on activities involving
the rescue of historical heritage, education and culture, as well as development.



In order to do so, it acts both individually
and in conjunction with private and public entities.



| | 24.2 | Detail of information on disbursements related to the environment
| | ---- | -----------------------------------------------------------------



The accumulated disbursements in which
the Company incurred as of December 31, 2014 for the concept of investments in production processes, verification and control of
compliance with ordinances and laws relative to industrial processes and facilities, including prior year disbursements related
to these projects amounted to ThUS$13,267 and are detailed as follows:



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-156







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 24 | Environment (continued)
| | ------- | -----------------------



| | 24.2 | Detail of information on disbursements related to the environment, continued
| | ---- | ----------------------------------------------------------------------------



Accumulated expenses as of 12/31/2014



|Identification
    of theParent
    or subsidiary |  | Name
    of the project with which expenditure isassociated                         |  | Concept
    for which the expenditure was madeor
    will be made |  | Asset
    / Expense |  | Description
    of theasset
    or expenseItem |  | Amount
    ofexpenditure |       |  | Actual
    orestimated
    date onwhichexpenditure
    wasor will be made
|------------------------------------------------- |  | ----------------------------------------------------------------------------------- |  | ----------------------------------------------------------------- |  | ------------------- |  | ---------------------------------------------- |  | ------------------------ | ----- |  | -------------------------------------------------------------------------
|Miscellaneous                                     |  | Environmental-operational area                                                      |  | Not classified                                                    |  | Expense             |  | Not classified                                 |  |                          | 1,709 |  |                                                                          
|SQM Industrial S.A.                               |  | IQWZ - Normalization TK NV liquid fuels                                             |  | Sustainability: Environment and Risk Prevention                   |  | Asset               |  | Not classified                                 |  |                          | 31    |  |                                                                          
|SQM Industrial S.A.                               |  | MP5W - Normalization TK ́s Fuels                                                     |  | Sustainability: Environment and Risk Prevention                   |  | Asset               |  | Not classified                                 |  |                          | 2,512 |  |                                                                          
|SQM Industrial S.A.                               |  | MQBM - Archaeological Digging Deployment Maria
    Elena - Toco                     |  | Sustainability: Environment and Risk Prevention                   |  | Expense             |  | Not classified                                 |  |                          | 26    |  |                                                                          
|SQM Industrial S.A.                               |  | MQK2 – Elimination of PCBs I                                                        |  | Sustainability: Environment and Risk Prevention                   |  | Expense             |  | Not classified                                 |  |                          | 17    |  |                                                                          
|SQM Industrial S.A.                               |  | PPZU - Standardize and Certify Plant Fuel Tanks                                     |  | Environmental processing                                          |  | Asset               |  | Not classified                                 |  |                          | 2,708 |  |                                                                          
|SQM Industrial S.A.                               |  | PQLV – Pedro de Valdivia mine site DIA                                              |  | Environmental processing                                          |  | Asset               |  | Not classified                                 |  |                          | 271   |  |                                                                          
|SQM Industrial S.A.                               |  | TQA2 - Drainage Improvement Villa Prat                                              |  | Sustainability: Environment and Risk Prevention                   |  | Expense             |  | Not classified                                 |  |                          | 22    |  |                                                                          
|SQM Industrial S.A.                               |  | PQXM – Elaboration DIA Operation with
    batteries in PV                           |  | Environmental processing                                          |  | Asset               |  | Not classified                                 |  |                          | 116   |  |                                                                          
|SQM Industrial S.A.                               |  | 04-I0002 - Nueva Iris  TAS                                                          |  | Sustainability                                                    |  | Asset               |  | Not classified                                 |  |                          | 47    |  |                                                                          
|SQM S.A.                                          |  | IPFT - Cultural Heritage Region I                                                   |  | Sustainability                                                    |  | Expense             |  | Not classified                                 |  |                          | 174   |  |                                                                          
|SQM S.A.                                          |  | IQ1M - PSA Re-injection of water to Puquios
    Llamara                             |  | Sustainability: Environment and Risk Prevention                   |  | Asset               |  | Not classified                                 |  |                          | 2,443 |  |                                                                          
|SQM S.A.                                          |  | IQ3S- Hazardous Materials Management Standardization                                |  | Sustainability                                                    |  | Asset-Expense       |  | Not classified                                 |  |                          | 385   |  |                                                                          
|SQM S.A.                                          |  | IQOW- Deposit authorization for Humberstone
    heritage                            |  | Sustainability: Environment and Risk Prevention                   |  | Expense             |  | Not classified                                 |  |                          | 2     |  |                                                                          
|SQM S.A.                                          |  | IQWS - Mine Area equity measures Stage II                                           |  | Sustainability: Environment and Risk Prevention                   |  | Expense             |  | Not classified                                 |  |                          | 102   |  |                                                                          
|SQM S.A.                                          |  | IQX6 – Environmental management plan
    of Tamarugos Pampa del Tamarugal 2013-2014 |  | Sustainability: Environment and Risk Prevention                   |  | Asset               |  | Not classified                                 |  |                          | 518   |  |                                                                          
|SQM S.A.                                          |  | IQXB – Environmental management plan
    of Tamarugos Salar de Llamara 2013-2014    |  | Sustainability: Environment and Risk Prevention                   |  | Asset               |  | Not classified                                 |  |                          | 344   |  |                                                                          
|SQM S.A.                                          |  | I0042 – Mine are equity measures Stage
    III                                      |  | Sustainability: Environment and Risk Prevention                   |  | Expense             |  | Not classified                                 |  |                          | 149   |  |                                                                          
|SQM S.A.                                          |  | 01-I0046 – Cultural heritage Pampa Hermosa
    2014 – 2015                          |  | Sustainability                                                    |  | Expense             |  | Not classified                                 |  |                          | 15    |  |                                                                          



|SQM
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------- | 

F-157







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 24 | Environment (continued)
| | ------- | -----------------------



| | 24.2 | Detail of information on disbursements related to the environment, continued
| | ---- | ----------------------------------------------------------------------------



Accumulated expenses as of 12/31/2014, continued



|Identification
    of theParent
    or subsidiary |  | Name
    of the project with which expenditure isassociated |  | Concept
    for which the expenditure was madeor
    will be made |  | Asset
    / Expense |  | Description
    of theasset
    or expenseItem |  | Amount
    ofexpenditure |        |  | Actual
    orestimated
    date onwhichexpenditure
    wasor will be made
|------------------------------------------------- |  | ----------------------------------------------------------- |  | ----------------------------------------------------------------- |  | ------------------- |  | ---------------------------------------------- |  | ------------------------ | ------ |  | -------------------------------------------------------------------------
|SQM Salar S.A.                                    |  | LQDM – Certification of tanks                               |  | Sustainability: Replacement of equipment                          |  | Asset               |  | Not classified                                 |  |                          | 256    |  |                                                                          
|SQM Salar S.A.                                    |  | LQI6 - EIA Operating maintenance at Salar de Atacama        |  | Environmental processing                                          |  | Asset               |  | Not classified                                 |  |                          | 677    |  |                                                                          
|SQM Salar S.A.                                    |  | LQXW – White water                                          |  | Environmental processing                                          |  | Asset               |  | Not classified                                 |  |                          | 55     |  |                                                                          
|SQM Nitratos S.A.                                 |  | IQMH - Normalization Mine NV area operation                 |  | Sustainability: Environment and Risk Prevention                   |  | Asset               |  | Not classified                                 |  |                          | 246    |  |                                                                          
|SIT S.A.                                          |  | TQQ5 - Environmental curtains Field No. 8                   |  | Sustainability: Environment and Risk Prevention                   |  | Expense             |  | Not classified                                 |  |                          | 221    |  |                                                                          
|SIT S.A.                                          |  | 03-T0013 – Improvement of sewerage system, Villa Prat 2014  |  | Sustainability: Environment and Risk Prevention                   |  | Expense             |  | Not classified                                 |  |                          | 115    |  |                                                                          
|SIT S.A.                                          |  | 03-T0008 – Mobile belt protections 2,
    5 and 7           |  | Sustainability: Environment and Risk Prevention                   |  | Expense             |  | Not classified                                 |  |                          | 106    |  |                                                                          
|Total                                             |  |                                                             |  |                                                                   |  |                     |  |                                                |  |                          | 13,267 |  |                                                                          



|SQM
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------- | 

F-158







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 24 | Environment (continued)
| | ------- | -----------------------



| | 24.2 | Detail of information on disbursements related to the environment, continued
| | ---- | ----------------------------------------------------------------------------



Future expenses as of 12/31/2014



|Identification
    of theParent
    or subsidiary |  | Name
    of the project with which expenditure isassociated                         |  | Concept
    for which the expenditure was madeor
    will be made |  | Asset
    /Expense |  | Description
    ofthe asset
    orexpense Item |  | Amount
    ofexpenditure |       |  | Actual
    orestimated
    date onwhich expenditurewas
    or will bemade
|------------------------------------------------- |  | ----------------------------------------------------------------------------------- |  | ----------------------------------------------------------------- |  | ------------------ |  | ---------------------------------------------- |  | ------------------------ | ----- |  | -------------------------------------------------------------------------
|SQM Industrial S.A.                               |  | IQWZ - Normalization TK NV liquid
    fuels                                         |  | Sustainability: Environment and
    Risk Prevention               |  | Asset              |  | Not classified                                 |  |                          | 402   |  |                                                                          
|SQM Industrial S.A.                               |  | MP5W - Normalization TK ́s Fuels                                                     |  | Sustainability: Environment and Risk Prevention                   |  | Asset              |  | Not classified                                 |  |                          | 101   |  |                                                                          
|SQM Industrial S.A.                               |  | MQBM - Archaeological Digging Deployment Maria
    Elena – Toco                     |  | Sustainability: Environment and Risk Prevention                   |  | Expense            |  | Not classified                                 |  |                          | 12    |  |                                                                          
|SQM Industrial S.A.                               |  | MQK2 – Elimination of PCBs I                                                        |  | Sustainability: Environment and Risk Prevention                   |  | Expense            |  | Not classified                                 |  |                          | 33    |  |                                                                          
|SQM Industrial S.A.                               |  | PPZU - Standardize and Certify Plant Fuel Tanks                                     |  | Environmental processing                                          |  | Asset              |  | Not classified                                 |  |                          | 596   |  |                                                                          
|SQM Industrial S.A.                               |  | PQXM - Elaboration DIA Operation with batteries
    in PV                           |  | Environmental processing                                          |  | Asset              |  | Not classified                                 |  |                          | 184   |  |                                                                          
|SQM Industrial S.A.                               |  | J0006 – NPT III boiler gas scrubbing
    system                                     |  | Sustainability: Environment and Risk Prevention                   |  | Asset              |  | Not classified                                 |  |                          | 250   |  |                                                                          
|SQM Industrial S.A.                               |  | I0002 – Nueva Iris TAS                                                              |  | Sustainability and Environment                                    |  | Asset              |  | Not classified                                 |  |                          | 13    |  |                                                                          
|SQM Industrial S.A.                               |  | M0006 – Significant maintenance of ME
    town streets and ME garbage dumps         |  | Sustainability                                                    |  | Asset              |  | Not classified                                 |  |                          | 98    |  |                                                                          
|SQM Industrial S.A.                               |  | 04-I0023 – Acquisition of leak detection
    equipment                              |  | Sustainability: Environment and Risk Prevention                   |  | Asset              |  | Not classified                                 |  |                          | 35    |  |                                                                          
|SQM S.A.                                          |  | IQWS - Mine Area equity measures Stage II                                           |  | Sustainability: Environment and Risk Prevention                   |  | Expense            |  | Not classified                                 |  |                          | 4     |  |                                                                          
|SQM S.A.                                          |  | IQX6 – Environmental management plan
    of Tamarugos Pampa del Tamarugal 2013-2014 |  | Sustainability: Environment and Risk Prevention                   |  | Asset              |  | Not classified                                 |  |                          | 209   |  |                                                                          
|SQM S.A.                                          |  | IQXB – Environmental management plan
    of Tamarugos Salar de Llamara 2013-2014    |  | Sustainability: Environment and Risk Prevention                   |  | Asset              |  | Not classified                                 |  |                          | 41    |  |                                                                          
|SQM S.A.                                          |  | I0032- Hazardous Materials Standardization                                          |  | Sustainability                                                    |  | Asset              |  | Not classified                                 |  |                          | 100   |  |                                                                          
|SQM S.A.                                          |  | I0042 - Mine Area equity measures Stage III                                         |  | Sustainability: Environment and Risk Prevention                   |  | Expense            |  | Not classified                                 |  |                          | 131   |  |                                                                          
|SQM S.A.                                          |  | 01-I0046 - Cultural heritage Pampa Hermosa
    2014 – 2015                          |  | Sustainability                                                    |  | Expense            |  | Not classified                                 |  |                          | 5     |  |                                                                          
|SQM S.A.                                          |  | 01-IQWP - 01-J0011 - DIA Expansion of NV Mine
    Zone                              |  | Environmental processing                                          |  | Expense            |  | Not classified                                 |  |                          | 22    |  |                                                                          
|SQM Salar S.A.                                    |  | LQI6 - EIA Operating maintenance at Salar de
    Atacama                            |  | Environmental processing                                          |  | Asset              |  | Not classified                                 |  |                          | 48    |  |                                                                          
|SIT S.A.                                          |  | TQQ5 - Environmental curtains Field No. 8                                           |  | Sustainability: Environment and Risk Prevention                   |  | Expense            |  | Not classified                                 |  |                          | 9     |  |                                                                          
|Total                                             |  |                                                                                     |  |                                                                   |  |                    |  |                                                |  |                          | 2,293 |  |                                                                          



|SQM
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------- | 

F-159







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 24 | Environment (continued)
| | ------- | -----------------------



| | 24.2 | Detail of information on disbursements related to the environment, continued
| | ---- | ----------------------------------------------------------------------------



Accumulated expenses as of 12/31/2013



|Identification
    ofthe Parent
    orsubsidiary |  | Name
    of the project with which expenditure is associated                            |  | Concept
    for which theexpenditure
    was made or willbe made |  | Asset
    / Expense |  | Description
    of theasset
    or expenseItem |  | Amount
    ofexpenditure |       |  | Actual
    or estimateddate
    on whichexpenditure was orwill be made
|------------------------------------------------ |  | --------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------- |  | ------------------- |  | ---------------------------------------------- |  | ------------------------ | ----- |  | ----------------------------------------------------------------------
|Miscellaneous                                    |  | Environmental-operational area                                                          |  | Not classified                                                   |  | Expense             |  | Not classified                                 |  |                          | 1,753 |  |                                                                       
|SQM Industrial S.A.                              |  | CQLX – Hazardous waste yard  S
    Carmen and Lagarto                                   |  | Sustainability                                                   |  | Asset/Expense       |  | Not classified                                 |  |                          | 98    |  |                                                                       
|SQM Industrial S.A.                              |  | FP55 - FPXA-EIA Pampa Blanca Expansion                                                  |  | Environmental Processing                                         |  | Asset               |  | Not classified                                 |  |                          | 1,493 |  |                                                                       
|SQM Industrial S.A.                              |  | IQWZ - Normalization TK NV liquid fuels                                                 |  | Sustainability: Environment and Risk prevention                  |  | Asset               |  | Not classified                                 |  |                          | 24    |  |                                                                       
|SQM Industrial S.A.                              |  | JQ8K – DIA Line 4 Floor Drying, Coya
    Sur                                            |  | Environmental Processing                                         |  | Asset               |  | Not classified                                 |  |                          | 32    |  |                                                                       
|SQM Industrial S.A.                              |  | JQB6 - DIA Plant NPT4, Coya Sur                                                         |  | Environmental Processing                                         |  | Asset               |  | Not classified                                 |  |                          | 84    |  |                                                                       
|SQM Industrial S.A.                              |  | JQH9 – Purchase of Bertrams Boiler                                                      |  | Sustainability: Environment and Risk prevention                  |  | Asset               |  | Development                                    |  |                          | 612   |  |                                                                       
|SQM Industrial S.A.                              |  | MNYS - Measures of Technological Change Cultural
    Heritage Dissemination Maria Elena |  | Environmental Processing                                         |  | Expense             |  | Not classified                                 |  |                          | 37    |  |                                                                       
|SQM Industrial S.A.                              |  | MP5W - Normalization TK ́s Fuels                                                         |  | Sustainability: Environment and Risk prevention                  |  | Asset               |  | Not classified                                 |  |                          | 2,114 |  |                                                                       
|SQM Industrial S.A.                              |  | MPQU - Construction of Hazardous Chemical Supplies
    warehouse                        |  | Sustainability: Environment and Risk prevention                  |  | Asset               |  | Development                                    |  |                          | 449   |  |                                                                       
|SQM Industrial S.A.                              |  | MQA8- Normalization gas system, external cafeterias
    (Stage 1: projects)             |  | Sustainability: Environment and Risk prevention                  |  | Asset/Expense       |  | Not classified                                 |  |                          | 139   |  |                                                                       
|SQM Industrial S.A.                              |  | MQBM-Archaeological Digging Deployment Maria
    Elena - Toco                           |  | Sustainability: Environment and Risk prevention                  |  | Expense             |  | Not classified                                 |  |                          | 14    |  |                                                                       
|SQM Industrial S.A.                              |  | MQHF -Sustaining of batteries ME                                                        |  | Sustainability: Environment and Risk prevention                  |  | Asset-Expense       |  | Not classified                                 |  |                          | 310   |  |                                                                       
|SQM Industrial S.A.                              |  | MQK2-Elimination of PCBs I                                                              |  | Sustainability: Environment and Risk prevention                  |  | Expense             |  | Not classified                                 |  |                          | 17    |  |                                                                       
|SQM Industrial S.A.                              |  | PPC1-Remove switches park PCB sub 3 and 1/12
    Pedro de Valdivia                      |  | Sustainability: Environment and Risk prevention                  |  | Expense             |  | Not classified                                 |  |                          | 147   |  |                                                                       
|SQM Industrial S.A.                              |  | PPZU - Standardize and certify Plant Fuel Tanks                                         |  | Environmental Processing                                         |  | Asset               |  | Not classified                                 |  |                          | 2,644 |  |                                                                       
|SQM Industrial S.A.                              |  | PQLV-DIA Pedro de Valdivia Mine                                                         |  | Environmental Processing                                         |  | Asset               |  | Not classified                                 |  |                          | 271   |  |                                                                       
|SQM Industrial S.A.                              |  | SQ7X - Reach 2011-2013                                                                  |  | Sustainability: Environment and Risk prevention                  |  | Expense             |  | Not classified                                 |  |                          | 341   |  |                                                                       
|SQM Industrial S.A.                              |  | TQA2 - Drainage Improvement Villa Prat                                                  |  | Sustainability: Environment and Risk prevention                  |  | Expense             |  | Not classified                                 |  |                          | 17    |  |                                                                       
|SQM Industrial S.A.                              |  | PQXM – Elaboration DIA Operation with
    batteries in PV                               |  | Environmental Processing                                         |  | Asset               |  | Not classified                                 |  |                          | 89    |  |                                                                       
|SQM S.A.                                         |  | IP83-DIA Expansion TLN-15                                                               |  | Environmental Processing                                         |  | Asset               |  | Not classified                                 |  |                          | 23    |  |                                                                       
|SQM S.A.                                         |  | IPFT-Cultural Heritage Region I                                                         |  | Sustainability                                                   |  | Expense             |  | Not classified                                 |  |                          | 174   |  |                                                                       



|SQM
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------- | 

F-160









| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 24 | Environment (continued)
| | ------- | -----------------------



| | 24.2 | Detail of information on disbursements related to the environment, continued
| | ---- | ----------------------------------------------------------------------------



Accumulated expenses as of 12/31/2013 (continued)



|Identification
    of theParent or subsidiary |  | Name
    of the project with which expenditure isassociated                         |  | Concept
                                         for which the expenditure was made or will
                                         be made |  | Asset
    /Expense |  | Description
    ofthe asset orexpense item |  | Amount
    ofexpenditure |       |  | Actual
    orestimated date
    onwhich expenditurewas
    or will bemade
|--------------------------------------------- |  | ----------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------ |  | ------------------------------------------ |  | ------------------------ | ----- |  | -------------------------------------------------------------------------
|SQM S.A.                                      |  | IPXE – Environmental monitoring plan Salar de Llamara                               |  | Cost reduction                                                                                                                               |  | Expense            |  | Not classified                             |  |                          | 1,013 |  |                                                                          
|SQM S.A.                                      |  | IPXF-Environmental monitoring plan Pampa del Tamarugal                              |  | Sustainability: Environment and Risk Prevention                                                                                              |  | Expense            |  | Not classified                             |  |                          | 951   |  |                                                                          
|SQM S.A.                                      |  | IQ1M-PSA Re-injection of water to Puquíos Llamara                                   |  | Sustainability: Environment and Risk Prevention                                                                                              |  | Asset              |  | Not classified                             |  |                          | 2,320 |  |                                                                          
|SQM S.A.                                      |  | IQ3S-Hazardous Materials Management Standardization                                 |  | Sustainability                                                                                                                               |  | Asset-Expense      |  | Not classified                             |  |                          | 378   |  |                                                                          
|SQM S.A.                                      |  | IQ54-Cultural heritage Pampa Hermosa                                                |  | Minor projects (between ThUS$50 and ThUS$299)                                                                                                |  | Asset              |  | Not classified                             |  |                          | 506   |  |                                                                          
|SQM S.A.                                      |  | IQOW-Deposit authorization for Humberstone heritage                                 |  | Sustainability: Environment and Risk Prevention                                                                                              |  | Expense            |  | Not classified                             |  |                          | 1     |  |                                                                          
|SQM S.A.                                      |  | IQPJ-Mine Area equity measures Stage I                                              |  | Sustainability                                                                                                                               |  | Expense            |  | Not classified                             |  |                          | 110   |  |                                                                          
|SQM S.A.                                      |  | IQWS - Mine Area equity measures Stage II                                           |  | Sustainability: Environment and Risk Prevention                                                                                              |  | Expense            |  | Not classified                             |  |                          | 79    |  |                                                                          
|SQM S.A.                                      |  | IQX6 – Environmental management plan of Tamarugos Pampa del
    Tamarugal 2013-2014 |  | Sustainability: Environment and Risk Prevention                                                                                              |  | Asset              |  | Not classified                             |  |                          | 193   |  |                                                                          
|SQM S.A.                                      |  | IQXB - Environmental management plan of Tamarugos Llamara Salt Flat
    2013-2014   |  | Sustainability: Environment and Risk Prevention                                                                                              |  | Asset              |  | Not classified                             |  |                          | 141   |  |                                                                          
|SQM S.A.                                      |  | MQLQ- Gas scrubbing system                                                          |  | Not Classified                                                                                                                               |  | Asset              |  | Development                                |  |                          | 468   |  |                                                                          
|SQM Salar S.A                                 |  | LQG8 – Waste room  Toconao Campsite                                                 |  | Sustainability: Natural Resources                                                                                                            |  | Expense            |  | Not classified                             |  |                          | 15    |  |                                                                          
|SQM Salar S.A.                                |  | LQDM – Certification of tanks                                                       |  | Sustainability: Replacement of equipment                                                                                                     |  | Asset              |  | Not classified                             |  |                          | 256   |  |                                                                          
|SQM Salar S.A.                                |  | LQI6-EIA Operating maintenance at Salar de Atacama                                  |  | Environmental Processing                                                                                                                     |  | Asset              |  | Not classified                             |  |                          | 466   |  |                                                                          
|SQM Salar S.A.                                |  | LQNI-DIA KCI Floor Drying and compacting expansion                                  |  | Environmental Processing                                                                                                                     |  | Asset              |  | Not classified                             |  |                          | 59    |  |                                                                          
|SIT S.A.                                      |  | TPYX - Enabling the dust collector of the crib and court seal 3
    Tocopilla       |  | Sustainability: Environment and Risk Prevention                                                                                              |  | Asset - Expense    |  | Development                                |  |                          | 1,708 |  |                                                                          
|SIT S.A.                                      |  | TQAV - Paving paths IV                                                              |  | Sustainability                                                                                                                               |  | Asset              |  | Development                                |  |                          | 3     |  |                                                                          



|SQM
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------- | 



F-161







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 24 | Environment (continued)
| | ------- | -----------------------



| | 24.2 | Detail of information on disbursements related to the environment, continued
| | ---- | ----------------------------------------------------------------------------



Accumulated expenses as of 12/31/2013, continued



|Identification
    ofthe Parent orsubsidiary |  | Name
    of the project with which expenditure is associated |  | Concept
    for which theexpenditure
    was made or willbe made |  | Asset
    /Expense |  | Description
    ofthe asset orexpense item |  | Amount
    ofexpenditure |        |  | Actual
    or estimateddate
    on whichexpenditure was or willbe made
|-------------------------------------------- |  | ------------------------------------------------------------ |  | ---------------------------------------------------------------- |  | ------------------ |  | ------------------------------------------ |  | ------------------------ | ------ |  | ----------------------------------------------------------------------
|SIT S.A.                                     |  | TQQ5 – Environmental curtains field No.8                     |  | Sustainability: Environment and Risk Prevention                  |  | Expense            |  | Not classified                             |  |                          | 221    |  |                                                                       
|SQM Nitratos S.A.                            |  | IQMH – Normalization Mine NV area operation                  |  | Sustainability: Environment and Risk Prevention                  |  | Asset              |  | Not classified                             |  |                          | 222    |  |                                                                       
|SQM Nitratos S.A.                            |  | PQI9 – Mine waste water treatment plant                      |  | Sustainability: Environment and Risk Prevention                  |  | Asset              |  | Not classified                             |  |                          | 51     |  |                                                                       
|Total                                        |  |                                                              |  |                                                                  |  |                    |  |                                            |  |                          | 20,043 |  |                                                                       



|SQM
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------- | 



F-162







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 24 | Environment (continued)
| | ------- | -----------------------



| | 24.2 | Detail of information on disbursements related to the environment, continued
| | ---- | ----------------------------------------------------------------------------



Future expenses as of 12/31/2013



|Identification
    ofthe Parent orsubsidiary |  | Name
    of the project with which expenditure is associated                        |  | Concept
    for which theexpenditure
    was made or willbe made |  | Asset
    /Expense |  | Description
    of theasset or expenseitem |  | Amount
    ofexpenditure |       |  | Actual
    or estimateddate
    on whichexpenditure was orwill
    be made
|-------------------------------------------- |  | ----------------------------------------------------------------------------------- |  | ---------------------------------------------------------------- |  | ------------------ |  | ------------------------------------------ |  | ------------------------ | ----- |  | --------------------------------------------------------------------------
|SQM Industrial S.A.                          |  | FP55 - FPXA - EIA Pampa Blanca Expansion                                            |  | Environmental processing                                         |  | Asset              |  | Not classified                             |  |                          | 1     |  |                                                                           
|SQM Industrial S.A.                          |  | IQWZ - Normalization TK NV liquid fuels                                             |  | Sustainability: Environment and Risk Prevention                  |  | Asset              |  | Not classified                             |  |                          | 800   |  |                                                                           
|SQM Industrial S.A.                          |  | MP5W - Normalization TK ́s Fuels                                                     |  | Sustainability: Environment and Risk Prevention                  |  | Asset              |  | Not classified                             |  |                          | 795   |  |                                                                           
|SQM Industrial S.A.                          |  | MQBM-Archaeological Digging Deployment Maria Elena - Toco                           |  | Sustainability: Environment and Risk Prevention                  |  | Expense            |  | Not classified                             |  |                          | 63    |  |                                                                           
|SQM Industrial S.A.                          |  | MQK2-Elimination of PCBs I                                                          |  | Sustainability: Environment and Risk Prevention                  |  | Expense            |  | Not classified                             |  |                          | 33    |  |                                                                           
|SQM Industrial S.A.                          |  | PPZU - Standardize and Certify Plant Fuel Tanks                                     |  | Environmental processing                                         |  | Asset              |  | Not classified                             |  |                          | 533   |  |                                                                           
|SQM Industrial S.A.                          |  | PQLV-DIA Pedro de Valdivia Mine                                                     |  | Environmental processing                                         |  | Asset              |  | Not classified                             |  |                          | 103   |  |                                                                           
|SQM S.A.                                     |  | IP83-DIA Expansion TLN-15                                                           |  | Environmental processing                                         |  | Asset              |  | Not classified                             |  |                          | 0     |  |                                                                           
|SQM S.A.                                     |  | IPFT-Cultural Heritage Region I                                                     |  | Sustainability                                                   |  | Expense            |  | Not classified                             |  |                          | 1     |  |                                                                           
|SQM S.A.                                     |  | IQ1M-PSA Re-injection of water to Puquíos Llamara                                   |  | Sustainability: Environment and Risk Prevention                  |  | Asset              |  | Not classified                             |  |                          | 300   |  |                                                                           
|SQM S.A.                                     |  | IQ3S-Hazardous Materials Management Standardization                                 |  | Sustainability                                                   |  | Asset-Expense      |  | Not classified                             |  |                          | 12    |  |                                                                           
|SQM S.A.                                     |  | IQOW-Deposit authorization for Humberstone heritage                                 |  | Sustainability: Environment and Risk Prevention                  |  | Expense            |  | Not classified                             |  |                          | 10    |  |                                                                           
|SQM S.A.                                     |  | IQWS - Mine Area equity measures Stage II                                           |  | Sustainability: Environment and Risk Prevention                  |  | Expense            |  | Not classified                             |  |                          | 29    |  |                                                                           
|SQM S.A.                                     |  | IQX6 – Environmental management plan of Tamarugos Pampa del
    Tamarugal 2013-2014 |  | Sustainability: Environment and Risk Prevention                  |  | Asset              |  | Not classified                             |  |                          | 595   |  |                                                                           
|SQM S.A.                                     |  | IQXB - Environmental management plan of Tamarugos Salar de Llamara
    2013-2014    |  | Sustainability: Environment and Risk Prevention                  |  | Asset              |  | Not classified                             |  |                          | 266   |  |                                                                           
|SQM Salar S.A.                               |  | LQDM – Certification of tanks                                                       |  | Sustainability: Replacement of equipment                         |  | Asset              |  | Not classified                             |  |                          | 94    |  |                                                                           
|SQM Salar S.A.                               |  | LQI6-EIA Operating Maintenance at Salar de Atacama                                  |  | Environmental processing                                         |  | Asset              |  | Not classified                             |  |                          | 59    |  |                                                                           
|SIT S.A.                                     |  | TQQ5- Environmental curtains Field No. 8                                            |  | Sustainability: Environment and Risk Prevention                  |  | Expense            |  | Not classified                             |  |                          | 90    |  |                                                                           
|SQM Industrial S.A.                          |  | PQXM – Elaboration DIA Operation with batteries in PV                               |  | Environmental processing                                         |  | Asset              |  | Not classified                             |  |                          | 212   |  |                                                                           
|Total                                        |  |                                                                                     |  |                                                                  |  |                    |  |                                            |  |                          | 3,996 |  |                                                                           



|SQM
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------- | 



F-163







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 24 | Environment (continued)
| | ------- | -----------------------



| | 24.3 | Description of each project, indicating whether these are in process or have been finished
| | ---- | ------------------------------------------------------------------------------------------



SQM Industrial S.A.



IQWZ:Performing an analysis
of the tank facilities (civil works, mechanical work, piping, electrical work and instruments) by a company specialized in liquid
fuels and that is a Certifying Entity. After that, performance of the detail engineering and then implementation of the modifications
required to normalize the TKs facilities and leave them in conditions to be declared and filed with the SEC. The budget of ThUS$123
only covers expenses related to the analysis and detail engineering. The project is in process.



I0002:The project involves a
new waste water treatment plant, for the supervisor role area in the Iris campsite. The project is pending.



J0006:This project is intended
to design a rapidly-implemented gas scrubbing system that complies with the standard on the emission of gases involved. This project
is in process.



MP5W: Normalization of the fuel
storage and distribution system in SQM installations. This project is in process.



MQBM:Implementing archeological
measures in María Elena – Toco site, such as the archeological registry, analysis of lithic materials, and generation
of reports. This project is in process.



MQK2:The project involves the
decontamination of equipment and items contaminated with PCBs and/or final disposal in accordance with applicable regulations.
This project is in process.



M0006:The project involves the
enhancement of the bischofite layer in main streets of the town ME. This project is in process.



PPZU:The necessary actions to
normalize and certify fuel tanks in the plants in Maria Elena, Coya Sur and Pedro de Valdivia were performed. This project is in
process.



PQLV:Preparation and filing
of EID Pedro de Valdivia. This project is in process.



PQXM:Elaborate a project to
enter into the Environmental Impact Assessment System (SEIA), with the intention of obtaining the environmental approval for the
operation of Batteries in Pedro de Valdivia. This project is in process.



TQA2:This project aims to improve
the sewerage system of Villa Prat. The project is in the closure stage.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-164







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 24 | Environment (continued)
| | ------- | -----------------------



| | 24.3 | Description of each project, indicating whether these are in process or have been finished, continued
| | ---- | -----------------------------------------------------------------------------------------------------



I0023:This project is aimed
at acquiring leak detection equipment to ensure that evaporation ponds are not damaged and no solution is lost, avoiding the pollution
of the environment. This project is in process.



SQM S.A.



IPFT:The project considers the
implementation of measures committed in projects in the area of the Nueva Victoria mine, update of operations in Nueva Victoria,
evaporation ducts and pits in Iris. The project is at the closure stage.



IQ1M:Implementing environmental
commitments included in the EIS of project “Pampa Hermosa” to safeguard the puquíos zone that is in the Salar
de Llamara water reservoir. The project is in the closure stage.



IQ3S:Improvements in the storage
facilities of hazardous raw materials in Nueva Victoria. This project is in process.



IQOW:Enabling a deposit in Humberstone
Saltpeter to store material of heritage interest recovered in land campaigns of Project ZMNV (performed and to be performed). The
project is in the closure stage.



IQWS:Implementation of heritage-related
environmental commitments, to make available mining areas in 2013, required to develop the mining exploitation of the VPONV, in
compliance with the commitments agreed through the Environmental Assessment System (SEA). The project is in process.



IQWP:This project consists of
reclassifying geological resources measured. The project is in process.



IQX6: Implementation of environmental
commitments of the Pampa Hermosa Project at Pampa del Tamarugal considered for the years 2013-2014. The project is in process.



IQXB:Implementation of environmental
commitments of the Pampa Hermosa Project at Llamara Saltpeter deposit considered for the years 2013-2014. The project is in process.



I00032:Presenting departures
from the standard currently in force with respect to storage of hazardous substances and provisions of SD 78/2010. This project
is in process.



I0042:The project involves the
implementation of equity measures under the Environmental Assessment for the mining area. It comprises the implementation of a
fence in the exclusion and archaeological working area in the mining areas, required for the exploitation in 2014. This project
is in process.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-165







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 24 | Environment (continued)
| | ------- | -----------------------



| | 24.3 | Description of each project, indicating whether these are in process or have been finished, continued
| | ---- | -----------------------------------------------------------------------------------------------------



I0046:The project consists of the implementation
of equity measures committed in the Environmental Assessment of the Pintados sector (geoglyphs and former railway station) and
for the Sur Viejo sector the implementation of development activities and archeological works are contemplated. This project is
in progress.



SQM Salar S.A.



LQDM:Certification of the liquid
fuel storage tanks. This project is in process.



LQI6:Preparation and processing
of the EIA Update Operations in the Atacama Saltpeter Deposit. This project is in process.



LQXW: Increasing the availability
of brine ponds. The greater capacity of water wells implies the possibility of re-injecting more water to the saltpeter deposit,
resulting in an increase in brine extraction. The expense considered only includes environmental processing. The project is in
process.



SIT S.A.



TQQ5:This project aims to contain
emissions of particulate material to prevent contamination to adjacent communities. The project is in process.



T0013: This project is intended
to address sectors where sewage chambers have exceeded their capacity, the replacement of sewage collectors and sewage system chambers
is proposed. The project is in progress.



T0008:This project consists
of reducing pollution issues in the bulk loading process and increasing port safety. This project is in process.



SQM Nitratos S.A.



IQMH:Creation of an area allowing
storing hazardous substances. This project is in process.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-166







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 25 | Other
                                         current and non-current non-financial assets
| | ------- | -------------------------------------------------------------------------------------------



As of December 31, 2014, and December
31, 2013, the detail of other current and non-current assets is as follows:



|Other non-financial assets, current    |  | 12/31/2014 |        |  | 12/31/2013 | 
|-------------------------------------- |  | ---------- | ------ |  | ---------- | 
|                                       |  | ThUS$      |        |  | ThUS$      | 
|Domestic Value Added Tax               |  |            | 15,149 |  |            | 
|Foreign Value Added Tax                |  |            | 7,388  |  |            | 
|Prepaid mining licenses                |  |            | 1,275  |  |            | 
|Prepaid insurance                      |  |            | 7,916  |  |            | 
|Other prepayments                      |  |            | 533    |  |            | 
|Refund of Value Added Tax to exporters |  |            | 8,966  |  |            | 
|Other assets                           |  |            | 2,509  |  |            | 
|Total                                  |  |            | 43,736 |  |            | 



|Other non-financial assets, non-current                 |  | 12/31/2014 |        |  | 12/31/2013 | 
|------------------------------------------------------- |  | ---------- | ------ |  | ---------- | 
|                                                        |  | ThUS$      |        |  | ThUS$      | 
|Stain development expenses and prospecting expenses (1) |  |            | 29,569 |  |            | 
|Guarantee deposits                                      |  |            | 682    |  |            | 
|Pension plan                                            |  |            | 647    |  |            | 
|Other assets                                            |  |            | 1,273  |  |            | 
|Total                                                   |  |            | 32,171 |  |            | 



| | 1) | Reconciliation of changes in assets for exploration and mineral resource evaluation, by type
| | -- | --------------------------------------------------------------------------------------------



Movements in assets for the exploration
and evaluation of mineral resources as of December 31, 2014, and December 31, 2013:



|Reconciliation                                         |  | 12/31/2014 |        |   | 12/31/2013 | 
|------------------------------------------------------ |  | ---------- | ------ | - | ---------- | 
|                                                       |  | ThUS$      |        |   | ThUS$      | 
|                                                       |  |            |        |   |            | 
|Opening balance                                        |  |            | 33,388 |   |            | 
|Changes                                                |  |            |        |   |            | 
|Additions, other than business combinations            |  |            | 2,695  |   |            | 
|Depreciation and amortization (*)                      |  |            | (2,092 | ) |            | 
|Increase (decrease) due to transfers and other charges |  |            | (4,422 | ) |            | 
|Total changes                                          |  |            | (3,819 | ) |            | 
|Total                                                  |  |            | 29,569 |   |            | 



(*) Assets for the exploration and evaluation
of mineral resources are amortized considering the estimated material tonnage on exploited material tonnage.



As of the presentation date, no reevaluations
of assets for exploration and assessment of mineral resources have been conducted.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-167







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 26 | Operating segments
| | ------- | ------------------



| | 26.1 | Operating segments
| | ---- | ------------------



General information:



The amount of each item presented in
each operating segment is equal to that reported to the maximum authority that makes decisions regarding the operation, in order
to decide on the allocation of resources to the defined segments and to assess its performance.



Factors used to identify segments
on which a report should be presented:



Segments reported are strategic business
units that offer different products and services. These are managed separately because each business requires different technology
and marketing strategies.



Description of the types of products
and services on which each reportable segment obtain its income from ordinary activities



The operating segments, through which
incomes of ordinary activities are obtained, that generate expenses and whose operating results are reviewed on a regular basis
by the maximum authority who makes decisions regarding operations, relate to the following groups of products:



| | 1. | Specialty plant nutrients
| | -- | -------------------------

| | 2. | Iodine and its derivatives
| | -- | --------------------------

| | 3. | Lithium and its derivatives
| | -- | ---------------------------

| | 4. | Industrial chemicals
| | -- | --------------------

| | 5. | Potassium
| | -- | ---------

| | 6. | Other products and services
| | -- | ---------------------------



Description of income sources for all the other segments



Information relative to assets, liabilities,
profit and expenses that cannot be assigned to the segments indicated above, due to the nature of production processes, is included
under "Unassigned amounts” category of the disclosed information.



Basis of accounting for transactions between reportable
segments



Sales between segments are made in the
same conditions as those made to third parties, and are consistently measures as presented in the income statement.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-168







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 26 | Operating segments (continued)
| | ------- | ------------------------------



| | 26.1 | Operating segments, continued
| | ---- | -----------------------------



Description of the nature of the
differences between measurements of results of reportable segments and the result of the entity before the expense or income tax
expense of incomes and discontinued operations.



The information reported in the segments
is extracted from the Company’s consolidated financial statements and therefore is not required to prepare reconciliations
between the data mentioned above and those reported in the respective segments, according to what is stated in paragraph 28 of
IFRS 8, "Operating Segments".



Description of the nature of the
differences between measurements of assets of reportable segments and the Company ́s assets



Assets are not shown classified by segments,
as this information is not readily available. Some of these assets are not separable by the type of activity by which they are
affected since this information is not used by management in decision-making with respect to resources to be allocated to each
defined segment. All assets are disclosed in the "unallocated amounts" category.



Description of the nature of the
differences between measurements of liabilities of reportable segments and the Company’s liabilities



Liabilities are not shown classified
by segments, as this information is not readily available. Some of these liabilities are not separable by the type of activity
by which they are affected, since this information is not used by management in decisions making regarding resources to be allocated
to each defined segment. All liabilities are disclosed in the "unallocated amounts" category.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-169







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 26 | Operating segments (continued)
| | ------- | ------------------------------



| | 26.2 | Operating segment disclosures:
| | ---- | ------------------------------



|12/31/2014                                                                                                         
|-------------------------------------------------------------------------------------------------------------------
|Operating segment items                                                                                            
|                                                                                                                   
|                                                                                                                   
|Revenue                                                                                                            
|Revenues from transactions with other operating
    segments of the same entity                                    
|                                                                                                                   
|Revenues from external
    customers and transactions with other operating segments of the same entity             
|                                                                                                                   
|Costs of sales                                                                                                     
|Administrative expenses                                                                                            
|Interest expense                                                                                                   
|depreciation and amortization expense                                                                              
|The entity’s interest in the profit or
    loss of associates and joint ventures accounted for by the equity method
|income tax expense, continuing operations                                                                          
|Other items other than significant cash                                                                            
|Income (loss) before taxes                                                                                         
|                                                                                                                   
|Net income (loss) from continuing operations                                                                       
|Net income (loss) from discontinued operations                                                                     
|Net income (loss)                                                                                                  
|                                                                                                                   
|Assets                                                                                                             
|Equity-accounted investees                                                                                         
|Increase of non-current assets                                                                                     
|Liabilities                                                                                                        
|Impairment loss recognized in profit or loss                                                                       
|Reversal of impairment losses recognized in
    profit or loss for the period                                      
|Cash flows from (used in) operating activities                                                                     
|Cash flows from (used in) investing activities                                                                     
|Cash flows from (used in) financing activities                                                                     



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-170







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 26 | Operating segments (continued)
| | ------- | ------------------------------



| | 26.2 | Operating segment disclosures , continued
| | ---- | -----------------------------------------



|12/31/2013                                                                                                         
|-------------------------------------------------------------------------------------------------------------------
|Operating segment items                                                                                            
|                                                                                                                   
|                                                                                                                   
|Revenue                                                                                                            
|Revenues from transactions with other operating
    segments of the same entity                                    
|                                                                                                                   
|Revenues from external
    customers and transactions with other operating segments of the same entity             
|                                                                                                                   
|Costs of sales                                                                                                     
|Administrative expenses                                                                                            
|Interest expense                                                                                                   
|depreciation and amortization expense                                                                              
|The entity’s interest in the profit or
    loss of associates and joint ventures accounted for by the equity method
|income tax expense, continuing operations                                                                          
|Income (loss) before taxes                                                                                         
|                                                                                                                   
|Net income (loss) from continuing operations                                                                       
|Net income (loss) from discontinued operations                                                                     
|Net income (loss)                                                                                                  
|                                                                                                                   
|Assets                                                                                                             
|Equity-accounted investees                                                                                         
|Increase of non-current assets                                                                                     
|Liabilities                                                                                                        
|Equity                                                                                                             
|Liabilities and Equity                                                                                             
|Impairment loss recognized in profit or loss                                                                       
|Cash flows from (used in) operating activities                                                                     
|Cash flows from (used in) investing activities                                                                     
|Cash flows from (used in) financing activities                                                                     



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-171







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 26 | Operating segments (continued)
| | ------- | ------------------------------



| | 26.2 | Operating segment disclosures , continued
| | ---- | -----------------------------------------



|12/31/2012                                                                                                         
|-------------------------------------------------------------------------------------------------------------------
|Operating segment items                                                                                            
|                                                                                                                   
|                                                                                                                   
|Revenue                                                                                                            
|Revenues from transactions with other operating
    segments of the same entity                                    
|                                                                                                                   
|Revenues from external
    customers and transactions with other operating segments of the same entity             
|                                                                                                                   
|Interest revenue                                                                                                   
|Interest expense                                                                                                   
|depreciation and amortization expense                                                                              
|The entity’s interest in the profit or
    loss of associates and joint ventures accounted for by the equity method
|income tax expense, continuing operations                                                                          
|Other items other tan significant cash                                                                             
|Income (loss) before taxes                                                                                         
|                                                                                                                   
|Net income (loss) from continuing operations                                                                       
|Net income (loss) from discontinued operations                                                                     
|Net income (loss)                                                                                                  
|                                                                                                                   
|Assets                                                                                                             
|Equity-accounted investees                                                                                         
|Increase of non-current assets                                                                                     
|Liabilities                                                                                                        
|Equity                                                                                                             
|Equity and liability                                                                                               
|Reversal of impairment losses recognized in
    profit and loss for the year                                       
|Impairment loss recognized in profit or loss                                                                       
|Cash flows from (used in) operating activities                                                                     
|Cash flows from (used in) investing activities                                                                     
|Cash flows from (used in) financing activities                                                                     



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-172







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 26 | Operating segments (continued)
| | ------- | ------------------------------



| | 26.3 | Statement of comprehensive income classified by operating segments based on groups of products
| | ---- | ----------------------------------------------------------------------------------------------



|                                                                                                       |  | 12/31/2014                        |         
|------------------------------------------------------------------------------------------------------ |  | --------------------------------- | --------
|Items in the statement
    of comprehensiveincome                                                      |  | Specialty
    plantnutrientsThUS$ |         
|                                                                                                       |  |                                   |         
|Revenue                                                                                                |  |                                   | 708,023 
|Cost of sales                                                                                          |  |                                   | (564,151
|                                                                                                       |  |                                   |         
|Gross profit                                                                                           |  |                                   | 143,872 
|                                                                                                       |  |                                   |         
|Other incomes by function                                                                              |  |                                   | -       
|Administrative expenses                                                                                |  |                                   | -       
|Other expenses by function                                                                             |  |                                   | -       
|Other gains (losses)                                                                                   |  |                                   | -       
|Financial income                                                                                       |  |                                   | -       
|Financial costs                                                                                        |  |                                   | -       
|interest in the profit or loss of associates and joint ventures
    accounted for by the equity method |  |                                   | -       
|Exchange differences                                                                                   |  |                                   | -       
|Profit (loss) before taxes                                                                             |  |                                   | 143,872 
|Income tax expense                                                                                     |  |                                   | -       
|Profit (loss) from continuing operations                                                               |  |                                   | 143,872 
|Profit (loss) from discontinued operations                                                             |  |                                   | -       
|Profit (loss)                                                                                          |  |                                   | 143,872 
|Profit (loss), attributable to                                                                         |  |                                   |         
|Profit (loss) attributable to the controller ́s owners                                                  |  |                                   | -       
|Profit (loss) attributable to the non-controllers                                                      |  |                                   | -       
|Profit (loss)                                                                                          |  |                                   | -       



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-173







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 26 | Operating segments (continued)
| | ------- | ------------------------------



26.3	Statement of comprehensive income classified by
operating segments based on groups of products, continued



|                                                                                                       |  | 12/31/2013                    |         
|------------------------------------------------------------------------------------------------------ |  | ----------------------------- | --------
|Items in the statement
    of comprehensive income                                                     |  | Specialtyplant nutrientsThUS$ |         
|                                                                                                       |  |                               |         
|Revenue                                                                                                |  |                               | 687,455 
|Cost of sales                                                                                          |  |                               | (536,067
|                                                                                                       |  |                               |         
|Gross profit                                                                                           |  |                               | 151,388 
|                                                                                                       |  |                               |         
|Other incomes by function                                                                              |  |                               | -       
|Administrative expenses                                                                                |  |                               | -       
|Other expenses by function                                                                             |  |                               | -       
|Other gains (losses)                                                                                   |  |                               | -       
|Financial income                                                                                       |  |                               | -       
|Financial costs                                                                                        |  |                               | -       
|interest in the profit or loss of associates
    and joint ventures accounted for by the equity method |  |                               | -       
|Exchange differences                                                                                   |  |                               | -       
|Profit (loss) before
    taxes                                                                         |  |                               | 151,388 
|Income tax expense                                                                                     |  |                               | -       
|Profit (loss) from
    continuing operations                                                           |  |                               | 151,388 
|Profit (loss) from discontinued operations                                                             |  |                               | -       
|Profit (loss)                                                                                          |  |                               | 151,388 
|Profit (loss),
    attributable to                                                                     |  |                               |         
|Profit (loss) attributable to the controller ́s
    owners                                              |  |                               | -       
|Profit (loss) attributable to the non controllers                                                      |  |                               | -       
|Profit (loss)                                                                                          |  |                               | -       



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-174







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 26 | Operating segments (continued)
| | ------- | ------------------------------



26.3	Statement of comprehensive income classified by
operating segments based on groups of products, continued



|                                                                                                       |  | 12/31/2012                    |         
|------------------------------------------------------------------------------------------------------ |  | ----------------------------- | --------
|Items in the statement
    of comprehensive income                                                     |  | Specialtyplant nutrientsThUS$ |         
|                                                                                                       |  |                               |         
|Revenue                                                                                                |  |                               | 675,350 
|Cost of sales                                                                                          |  |                               | (457,470
|                                                                                                       |  |                               |         
|Gross profit                                                                                           |  |                               | 217,880 
|                                                                                                       |  |                               |         
|Other incomes by function                                                                              |  |                               | -       
|Administrative expenses                                                                                |  |                               | -       
|Other expenses by function                                                                             |  |                               | -       
|Other gains (losses)                                                                                   |  |                               | -       
|Financial income                                                                                       |  |                               | -       
|Financial costs                                                                                        |  |                               | -       
|interest in the profit or loss of associates
    and joint ventures accounted for by the equity method |  |                               | -       
|Exchange differences                                                                                   |  |                               | -       
|Profit (loss )before
    taxes                                                                         |  |                               | 217,880 
|Income tax expense                                                                                     |  |                               | -       
|Profit (loss )from
    continuing operations                                                           |  |                               | 217,880 
|Profit (loss ) from discontinued operations                                                            |  |                               | -       
|Profit (loss)                                                                                          |  |                               | 217,880 
|Profit (loss, attributable
    to                                                                      |  |                               |         
|Profit (loss ) attributable to the controller ́s
    owners                                             |  |                               | -       
|Profit (loss ) attributable to the non-controllers                                                     |  |                               | -       
|Profit (loss)                                                                                          |  |                               | -       



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-175







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 26 | Operating segments (continued)
| | ------- | ------------------------------



| | 26.4 | Revenue from transactions with other operating segments of the Company as of December 31, 2014
| | ---- | ----------------------------------------------------------------------------------------------



|12/31/2014                                   
|---------------------------------------------
|Items in the statement ofcomprehensive income
|                                             
|Revenue                                      



|12/31/2013                                   
|---------------------------------------------
|Items in the statement ofcomprehensive income
|                                             
|Revenue                                      



|12/31/2012                                   
|---------------------------------------------
|Items in the statement ofcomprehensive income
|                                             
|Revenue                                      



| | 26.5 | Disclosures on geographical areas
| | ---- | ---------------------------------



As indicated in paragraph 33 of IFRS
8, the entity discloses geographical information on its revenue from operating activities with external customers and from non-current
assets that are not financial instruments, deferred income tax assets, assets related to post-employment benefits or rights derived
from insurance contracts.



| | 26.6 | Disclosures on main customers
| | ---- | -----------------------------



With respect to the degree of dependency
of the Company on its customers, in accordance with paragraph N° 34 of IFRS N° 8, the Company has no external customers
who individually represent 10% or more of its revenue. Credit risk concentrations with respect to trade and other accounts receivable
are limited due to the significant number of entities in the Company’s portfolio and its worldwide distribution. The Company’s
policy requires guarantees (such as letters of credit, guarantee clauses and others) and/or to maintain insurance policies for
certain accounts as deemed necessary by the Company's Management.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-176







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 26 | Operating segments (continued)
| | ------- | ------------------------------



| | 26.7 | Segments by geographical areas as of December 31, 2014, 2013 and 2014
| | ---- | ---------------------------------------------------------------------



|                                                 |  | 12/31/2014 |          
|------------------------------------------------ |  | ---------- | ---------
|Items                                            |  | ChileThUS$ |          
|Revenue                                          |  |            | 227,261  
|Investment accounted for under the equity method |  |            | 1,159    
|Intangible assets other than goodwill            |  |            | 114,476  
|Goodwill                                         |  |            | 26,929   
|Property, plant and equipment, net               |  |            | 1,883,534
|Investment property                              |  |            | -        
|Other non-current assets                         |  |            | 31,354   
|Non-current assets                               |  |            | 2,057,452



|                                                 |  | 12/31/2013 |          
|------------------------------------------------ |  | ---------- | ---------
|Items                                            |  | ChileThUS$ |          
|Revenue                                          |  |            | 242,373  
|Investment accounted for under the equity method |  |            | 1,649    
|Intangible assets other than goodwill            |  |            | 104,043  
|Goodwill                                         |  |            | 26,929   
|Property, plant and equipment, net               |  |            | 2,050,684
|Investment property                              |  |            | -        
|Other non-current assets                         |  |            | 35,326   
|Non-current assets                               |  |            | 2,218,631



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-177







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 26 | Operating segments (continued)
| | ------- | ------------------------------



26.7	Segments by geographical areas as of December
31, 2014, 2013 and 2012, continued



|                                                 |  | 12/31/2013 |          
|------------------------------------------------ |  | ---------- | ---------
|Items                                            |  | ChileThUS$ |          
|Revenue                                          |  |            | 269,421  
|Investment accounted for under the equity method |  |            | 1,656    
|Intangible assets other than goodwill            |  |            | 23,630   
|Goodwill                                         |  |            | 26,929   
|Property, plant and equipment, net               |  |            | 1,985,128
|Investment property                              |  |            | -        
|Other non-current assets                         |  |            | 17,463   
|Non-current assets                               |  |            | 2,054,806



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-178







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 26 | Operating segments (continued)
| | ------- | ------------------------------



| | 26.8 | Property, plant and equipment classified by geographical areas
| | ---- | --------------------------------------------------------------



The company's main productive facilities
are located near their mines and extraction facilities in northern Chile. The following table presents the main production facilities
as of December 31, 2014 and December 31, 2013:



|  | Location          |   | Products                                                          
|- | ----------------- | - | ------------------------------------------------------------------
|  |                   |   |                                                                   
|- | Pedro de Valdivia | : | Production of iodine and nitrate salts                            
|- | María Elena       | : | Production of iodine and nitrate salts                            
|- | Coya Sur          | : | Production of nitrate salts                                       
|- | Nueva Victoria    | : | Production of iodine and nitrate salts                            
|- | Salar de Atacama  | : | Potassium chloride, lithium chloride, boric acid potassium sulfate
|- | Salar del Carmen  | : | Production of lithium carbonate and lithium hydroxide             
|- | Tocopilla         | : | Port facilities                                                   



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-179







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 27 | Gains (losses) from operating activities in the statement
of income by function of expenses, included according to their nature
| | ------- | -------------------------------------------------------------------------------------------------------------------------------



| | 27.1 | Revenue
| | ---- | -------



|         |  | 12/31/2014 |           |  | 12/31/2013 |  |           | 12/31/2012 | 
|-------- |  | ---------- | --------- |  | ---------- |  | --------- | ---------- | 
|         |  | ThUS$      |           |  | ThUS$      |  |           | ThUS$      | 
|Products |  |            | 2,006,452 |  |            |  | 2,191,650 |            | 
|Services |  |            | 7,762     |  |            |  | 11,490    |            | 
|Total    |  |            | 2,014,214 |  |            |  | 2,203,140 |            | 



| | 27.2 | Cost of sales
| | ---- | -------------



|                                                                                          |  | 12/31/2014 |            |   | 12/31/2013 |  |            | 12/31/2012 | 
|----------------------------------------------------------------------------------------- |  | ---------- | ---------- | - | ---------- |  | ---------- | ---------- | 
|                                                                                          |  | ThUS$      |            |   | ThUS$      |  |            | ThUS$      | 
|Raw material and supplies                                                                 |  |            | (593,126   | ) |            |  | (811,518   | )          | 
|Types of employee benefits expenses                                                       |  |            |            |   |            |  |            |            | 
|Salaries and wages                                                                        |  |            | (107,917   | ) |            |  | (138,937   | )          | 
|Other short-term employee benefits                                                        |  |            | (61,525    | ) |            |  | (44,601    | )          | 
|Termination benefit expenses                                                              |  |            | (7,971     | ) |            |  | (10,811    | )          | 
|Total employee benefits expenses                                                          |  |            | (177,413   | ) |            |  | (194,349   | )          | 
|Depreciation expense                                                                      |  |            | (246,180   | ) |            |  | (216,388   | )          | 
|Impairment loss (reversal of impairment losses) recognized in profit or loss for the year |  |            | 13,195     |   |            |  | (25,195    | )          | 
|Changes in inventories for the period                                                     |  |            | 116,300    |   |            |  | 416,398    |            | 
|Other expenses, by nature                                                                 |  |            | (544,018   | ) |            |  | (650,638   | )          | 
|Total                                                                                     |  |            | (1,431,242 | ) |            |  | (1,481,690 | )          | 



| | 27.3 | Other income
| | ---- | ------------



|                                                         |  | 12/31/2014 |        |  | 12/31/2013 |  |        | 12/31/2012 | 
|-------------------------------------------------------- |  | ---------- | ------ |  | ---------- |  | ------ | ---------- | 
|                                                         |  | ThUS$      |        |  | ThUS$      |  |        | ThUS$      | 
|Discounts obtained from suppliers                        |  |            | 705    |  |            |  | 1,349  |            | 
|Compensation received and insurance claim recovery       |  |            | 645    |  |            |  | 5,306  |            | 
|Penalties charged to suppliers                           |  |            | 255    |  |            |  | 374    |            | 
|Tax recoveries                                           |  |            | 40     |  |            |  | 9      |            | 
|Excess in the provision for liabilities with 3rd parties |  |            | 1,690  |  |            |  | 712    |            | 
|Excess in allowance for doubtful accounts                |  |            | 296    |  |            |  | -      |            | 
|Sale of property, plant and equipment                    |  |            | 39     |  |            |  | 107    |            | 
|Sale of materials, spare parts and supplies              |  |            | 1,241  |  |            |  | 1,392  |            | 
|Sale de scrap                                            |  |            | 69     |  |            |  | 27     |            | 
|Sale of mining concessions                               |  |            | 13,000 |  |            |  | 86,157 |            | 
|Indemnity Minera Esperanza                               |  |            | -      |  |            |  | -      |            | 
|Options on mining properties                             |  |            | 921    |  |            |  | -      |            | 
|Reimbursement of mining patents and notarial expenses    |  |            | 1,510  |  |            |  | -      |            | 
|Overstated provision for indemnity, Yara South Africa    |  |            | -      |  |            |  | 272    |            | 
|Non-conventional renewable energy                        |  |            | 2,255  |  |            |  | -      |            | 
|Goodwill paid in acquisition of portfolio                |  |            | -      |  |            |  | 337    |            | 
|Unrealized gain from acquisition of goodwill             |  |            | -      |  |            |  | 248    |            | 
|Other operating income                                   |  |            | 1,389  |  |            |  | 426    |            | 
|Total                                                    |  |            | 24,055 |  |            |  | 96,716 |            | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-180







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 27 | Gains (losses) from operating activities in the statement
of income by function of expenses, included according to their nature (continued)
| | ------- | -------------------------------------------------------------------------------------------------------------------------------------------



| | 27.4 | Administrative expenses
| | ---- | -----------------------



|                                       |  | 12/31/2014 |         |   | 12/31/2013 |  |          | 12/31/2012 | 
|-------------------------------------- |  | ---------- | ------- | - | ---------- |  | -------- | ---------- | 
|                                       |  | ThUS$      |         |   | ThUS$      |  |          | ThUS$      | 
|Employee benefit expenses by nature    |  |            |         |   |            |  |          |            | 
|Salaries and wages                     |  |            | (42,218 | ) |            |  | (48,033  | )          | 
|Other short-term benefits to employees |  |            | (4,710  | ) |            |  | (3,176   | )          | 
|Total employee benefit expenses        |  |            | (46,928 | ) |            |  | (51,209  | )          | 
|Other expenses, by nature              |  |            | (49,604 | ) |            |  | (53,980  | )          | 
|Total                                  |  |            | (96,532 | ) |            |  | (105,189 | )          | 



| | 27.5 | Other expenses
| | ---- | --------------



|                                                                                          |  | 12/31/2014 |         |   | 12/31/2013 |  |         | 12/31/2012 | 
|----------------------------------------------------------------------------------------- |  | ---------- | ------- | - | ---------- |  | ------- | ---------- | 
|                                                                                          |  | ThUS$      |         |   | ThUS$      |  |         | ThUS$      | 
|Employee benefit expenses by nature                                                       |  |            |         |   |            |  |         |            | 
|Other short-term benefits to employees                                                    |  |            | -       |   |            |  | (6      | )          | 
|Depreciation and amortization expenses                                                    |  |            |         |   |            |  |         |            | 
|Depreciation of stopped assets                                                            |  |            | (284    | ) |            |  | (433    | )          | 
|Depreciation of residual value                                                            |  |            | (4,827  | ) |            |  | -       |            | 
|Subtotal to date                                                                          |  |            | (5,111  | ) |            |  | (439    | )          | 
|Impairment loss (reversal of impairment losses) recognized in profit or loss for the year |  |            |         |   |            |  |         |            | 
|Impairment of allowance for doubtful accounts                                             |  |            | (349    | ) |            |  | (732    | )          | 
|Subtotal to date                                                                          |  |            | (349    | ) |            |  | (732    | )          | 
|                                                                                          |  |            |         |   |            |  |         |            | 
|Other expenses, by nature                                                                 |  |            |         |   |            |  |         |            | 
|Legal Expenses                                                                            |  |            | (5,465  | ) |            |  | (3,791  | )          | 
|Worksite stoppage expenses                                                                |  |            | (257    | ) |            |  | (75     | )          | 
|VAT and other unrecoverable tax                                                           |  |            | (1,164  | ) |            |  | (1,196  | )          | 
|Fines paid                                                                                |  |            | (857    | ) |            |  | (444    | )          | 
|Article 21 single tax                                                                     |  |            | (4,140  | ) |            |  | -       |            | 
|Advisory services                                                                         |  |            | (2      | ) |            |  | (8      | )          | 
|Provisions, investment plan expenses, materials and closing sales                         |  |            | (41,505 | ) |            |  | (19,397 | )          | 
|Donations rejected as expense                                                             |  |            | (1,514  | ) |            |  | (5,253  | )          | 
|Provision for work closing                                                                |  |            | -       |   |            |  | (1,276  | )          | 
|Adjustment to realization amount of property, plant and equipment                         |  |            | -       |   |            |  | (10,085 | )          | 
|Indemnities paid                                                                          |  |            | -       |   |            |  | (146    | )          | 
|Other operating expenses                                                                  |  |            | (3,931  | ) |            |  | (6,555  | )          | 
|Subtotal to date                                                                          |  |            | (58,835 | ) |            |  | (48,226 | )          | 
|Total                                                                                     |  |            | (64,295 | ) |            |  | (49,397 | )          | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 



F-181







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | Note 27 | Gains (losses) from operating activities in the statement
of income by function of expenses, included according to their nature (continued)
| | ------- | -------------------------------------------------------------------------------------------------------------------------------------------



| | 27.6 | Other income (expenses)
| | ---- | -----------------------



|                                                                  |  | 12/31/2014 |        |   | 12/31/2013 |  |         | 12/31/2012 | 
|----------------------------------------------------------------- |  | ---------- | ------ | - | ---------- |  | ------- | ---------- | 
|                                                                  |  | ThUS$      |        |   | ThUS$      |  |         | ThUS$      | 
|Provision for restructuring                                       |  |            | -      |   |            |  | (11,545 | )          | 
|Prior year adjustment, application of equity method of accounting |  |            | (2,935 | ) |            |  | 22      |            | 
|Sale of investments in associates                                 |  |            | 5,000  |   |            |  | -       |            | 
|Gain (loss) for no involvement in capital contribution (*)        |  |            | 2,359  |   |            |  | -       |            | 
|Other                                                             |  |            | -      |   |            |  | 132     |            | 
|Total                                                             |  |            | 4,424  |   |            |  | (11,391 | )          | 

(*) Refer Note 6.7



| | 27.7 | Summary of expenses by nature
| | ---- | -----------------------------



|                                                                                          |  | 12/31/2014 |            |   | 12/31/2013 |  |            | 12/31/2012 | 
|----------------------------------------------------------------------------------------- |  | ---------- | ---------- | - | ---------- |  | ---------- | ---------- | 
|                                                                                          |  | ThUS$      |            |   | ThUS$      |  |            | ThUS$      | 
|Raw material and supplies used                                                            |  |            | (593,126   | ) |            |  | (811,518   | )          | 
|Types of employee benefits expenses                                                       |  |            |            |   |            |  |            |            | 
|Salaries and wages                                                                        |  |            | (150,135   | ) |            |  | (186,970   | )          | 
|Other short-term employee benefits                                                        |  |            | (66,235    | ) |            |  | (47,783    | )          | 
|Termination benefit expenses                                                              |  |            | (7,971     | ) |            |  | (10,811    | )          | 
|Total employee
    benefit expenses                                                       |  |            | (224,341   | ) |            |  | (245,564   | )          | 
|Depreciation expense                                                                      |  |            | (246,464   | ) |            |  | (216,821   | )          | 
|Depreciation of residual value                                                            |  |            | (4,827     | ) |            |  | -          |            | 
|Impairment loss (reversal of impairment losses) recognized in profit or loss for the year |  |            | 12,846     |   |            |  | (25,927    | )          | 
|Other expenses, by nature                                                                 |  |            | (528,969   | ) |            |  | (347,837   | )          | 
|Total                                                                                     |  |            | (1,584,881 | ) |            |  | (1,647,667 | )          | 



This table corresponds to the summary
from Note 27.2 to 27.6 required by the Chilean Superintendence of Securities and Insurance



| | 27.8 | Finance expenses
| | ---- | ----------------



|                              |  | 12/31/2014 |         |   | 12/31/2013 |  |         | 12/31/2012 | 
|----------------------------- |  | ---------- | ------- | - | ---------- |  | ------- | ---------- | 
|                              |  | ThUS$      |         |   | ThUS$      |  |         | ThUS$      | 
|Interest expense from bonds   |  |            | (61,714 | ) |            |  | (65,763 | )          | 
|Interest expense from loans   |  |            | (8,268  | ) |            |  | (9,080  | )          | 
|Capitalized interest expenses |  |            | 7,732   |   |            |  | 17,232  |            | 
|Other finance costs           |  |            | (1,123  | ) |            |  | (997    | )          | 
|Total                         |  |            | (63,373 | ) |            |  | (58,608 | )          | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-182









| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 28	Income tax
and deferred taxes



Accounts receivable from taxes as of December 31, 2014 and December
31, 2013, are as follows:



| | 28.1 | Current tax assets
| | ---- | ------------------



|                                                                        |  | 12/31/2014 |        |  | 12/31/2013 | 
|----------------------------------------------------------------------- |  | ---------- | ------ |  | ---------- | 
|                                                                        |  | ThUS$      |        |  | ThUS$      | 
|Monthly provisional income tax payments, Chilean companies current year |  |            | 39,551 |  |            | 
|Monthly provisional payment Royalty                                     |  |            | 4,586  |  |            | 
|Monthly provisional income tax payments, foreign companies              |  |            | 2,093  |  |            | 
|Corporate tax credits (1)                                               |  |            | 1,729  |  |            | 
|Corporate tax absorbed by tax losses (2)                                |  |            | 16     |  |            | 
|Total                                                                   |  |            | 47,975 |  |            | 



| | (1) | These credits are available to companies and relate to the corporate tax payment in April of the
following year. These credits include, amongst others, training expense credits (SENCE) and property, plant and equipment acquisition
credits that are equivalent to 4% of the property, plant and equipment purchases made during the year. In addition, some credits
relate to the donations the Group has made during 2014 and 2013.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (2) | This concept corresponds to the absorption of non-operating losses (NOL’s) determined by
the company at year end, which must be imputed or recorded in the Retained Taxable Profits Registry (FUT).
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



In accordance with the laws in force and
as provided by article 31 No. 3 of the Income Tax Law, when profits recorded in the FUT that have not been withdrawn or distributed
are totally or partially absorbed by NOL’s, the corporate tax paid on such profits (21%, 20% or 17%, depending on the year
in which profits were generated) will be considered to be a provisional payment with respect to the portion representing the absorbed
accumulated tax profits.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-183







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 28	Income tax and deferred taxes (continued)



| | 28.1 | Current tax assets, continued
| | ---- | -----------------------------



Tax payers are entitled to apply for a
refund of this monthly provisional income tax payments on the absorbed profits recorded in the FUT registry via their tax returns
(Form 22).



Therefore, the provisional payment for
absorbed profits (PPAP) recorded in the FUT is in effect a recoverable tax, and as such the Company records it as an asset.



| | 28.2 | Current tax liabilities
| | ---- | -----------------------



|Current tax liabilities    |  | 12/31/2014 |        |  | 12/31/2013 | 
|-------------------------- |  | ---------- | ------ |  | ---------- | 
|                           |  | ThUS$      |        |  | ThUS$      | 
|1st Category income tax    |  |            | 2,425  |  |            | 
|Foreign company income tax |  |            | 26,539 |  |            | 
|Article 21 single tax      |  |            | 7,207  |  |            | 
|Total                      |  |            | 36,171 |  |            | 



Income tax is calculated based on the profit
or loss for tax purposes that is applied to the effective tax rate applicable in Chile. As established by Law No.20.780, an income
tax rate of 21% was set starting from 2014, a rate of 22.5% for 2015 and a rate of 24% for 2016; beginning in 2017, the rate will
range between 25% and 27% depending on the taxation system selected by the system, Attributed Income System or Partially-Integrated
Taxation System.



The provision for royalty is determined
by applying the tax rate determined for the net operating income (NOI).



In conclusion, both concepts represent
the estimated amount the Company will have to pay for income tax and specific tax on mining.



| | 28.3 | Tax earnings
| | ---- | ------------



As of December 31, 2014, 2013 and 2012,
the Company and its subsidiaries have recorded the following consolidated balances for retained tax earnings, income not constituting
revenue subject to income tax, accumulated tax losses and credit for shareholders:



|                                        |  | 12/31/2014 ThUS$ |           |  | 12/31/2013 ThUS$ |  |           | 12/31/2012 ThUS$ | 
|--------------------------------------- |  | ---------------- | --------- |  | ---------------- |  | --------- | ---------------- | 
|Taxable profits with credit rights (1)  |  |                  | 1,160,329 |  |                  |  | 1,321,643 |                  | 
|Taxable profits without credit right(1) |  |                  | 62,621    |  |                  |  | 90,628    |                  | 
|Taxable loss                            |  |                  | 7,396     |  |                  |  | 7,425     |                  | 
|Credit for shareholders                 |  |                  | 268,901   |  |                  |  | 321,006   |                  | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-184







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 28	Income tax and deferred taxes (continued)



| | 28.3 | Tax earnings, continued
| | ---- | -----------------------



The Retained Taxable Profits Registry (FUT)
is a chronological registry where the profits generated and distributed by the company are recorded. The object of the FUT is to
control the accumulated tax profits of the company that may be distributed, withdrawn or remitted to the owners, shareholders or
partners, and the final taxes that must be imposed, called in Chile Global Aggregate Tax (that levies persons resident or domiciled
in Chile), or Withholding Tax (that levies persons “not” resident or domiciled in Chile).



The FUT Register contains profits with credit rights and profits
without credit rights, which arise out of the inclusion of the net taxable income determined by the company or the profits received
by the company that may be dividends received or withdrawals made during the period.



Profits without credit rights represent
the tax payable by the company within the year and filed the following year, therefore they will be deducted from the FUT Registry
the following year.



Profits with credit rights may be used
to reduce the final tax burden of owners, shareholders or partners, which upon withdrawal are entitled to use the credits associated
with the relevant profits.



In summary, companies use the FUT Registry
to maintain control over the profits they generate that have not been distributed to the owners and the relevant credits associated
with such profits.



| | 28.4 | Income tax and deferred taxes
| | ---- | -----------------------------



Assets and liabilities recognized in the
statement of financial position are offset if and only if:



| | 1 | The Company has legally recognized before the right the tax authority to offset the amounts recognized
in these entries; and
| | - | ----------------------------------------------------------------------------------------------------------------------------



| | 2 | Deferred income tax assets and liabilities are derived from income tax related to the same tax
authority on:
| | - | ------------------------------------------------------------------------------------------------------------



| | (i) | the same entity or tax subject; or
| | --- | ----------------------------------



(ii)	     different
entities or tax subjects who intend either to settle current fiscal assets and liabilities for their net amount, or to realize
assets and pay liabilities simultaneously in each of the future periods in which the Company expects to settle or recover significant
amounts of deferred tax assets or liabilities.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-185







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 28	Income tax and deferred taxes (continued)



28.4	Income tax and deferred taxes, continued



Deferred income tax assets recognized are
the income taxes that are to be recovered in future periods, related to:



| | a) | deductible temporary differences;
| | -- | ---------------------------------



| | b) | the offset of losses obtained in prior periods and not yet subject to tax deduction; and
| | -- | ----------------------------------------------------------------------------------------



| | c) | the offset of unused credits from prior periods.
| | -- | ------------------------------------------------



The Company recognizes a deferred tax asset
when there is certainty that these can be offset with tax income from subsequent periods, losses or fiscal credits not yet used,
but solely as long as it is more likely than not that there will be tax earnings in the future against which to charge to these
losses or unused fiscal credits.



Deferred tax liabilities recognized refer
to the amounts of income taxes payable in future periods related to taxable temporary differences.



| | d.1 | Income tax assets and liabilities as of December 31,
2014 are detailed as follows:
| | --- | ----------------------------------------------------------------------------------



|                                                          |  | Net position, assets |     |  | Net position, liabilities | 
|--------------------------------------------------------- |  | -------------------- | --- |  | ------------------------- | 
|                                                          |  | Assets               |     |  | Liabilities               | 
|Description of deferred income tax assets and liabilities |  | ThUS$                |     |  | ThUS$                     | 
|Depreciation                                              |  |                      | 27  |  |                           | 
|Doubtful accounts impairment                              |  |                      | 40  |  |                           | 
|Accrued vacations                                         |  |                      | -   |  |                           | 
|Manufacturing expenses                                    |  |                      | -   |  |                           | 
|Unrealized gains (losses) from sales of products          |  |                      | -   |  |                           | 
|Fair value of bonds                                       |  |                      | -   |  |                           | 
|Severance indemnity                                       |  |                      | -   |  |                           | 
|Hedging                                                   |  |                      | -   |  |                           | 
|Inventory of products, spare parts and supplies           |  |                      | 49  |  |                           | 
|Research and development expenses                         |  |                      | -   |  |                           | 
|Tax losses                                                |  |                      | -   |  |                           | 
|Capitalized interest                                      |  |                      | -   |  |                           | 
|Expenses in assumption of bank loans                      |  |                      | -   |  |                           | 
|Unaccrued interest                                        |  |                      | -   |  |                           | 
|Fair value of property, plant and equipment               |  |                      | -   |  |                           | 
|Employee benefits                                         |  |                      | -   |  |                           | 
|Royalty deferred income taxes                             |  |                      | -   |  |                           | 
|Acquisition of intangible assets                          |  |                      | -   |  |                           | 
|Provision for lawsuits and legal expenses                 |  |                      | -   |  |                           | 
|Provision for investment plan                             |  |                      | -   |  |                           | 
|Provision of fines and crushing site closure              |  |                      | -   |  |                           | 
|Other                                                     |  |                      | 224 |  |                           | 
|Balance to date                                           |  |                      | 340 |  |                           | 
|Net balance                                               |  |                      | 340 |  |                           | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-186







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 28	Income tax and deferred taxes (continued)



| | 28.4 | Income tax and deferred taxes, continued
| | ---- | ----------------------------------------



d.2       Income tax assets and liabilities
as of December 31, 2013 are detailed as follows



|                                                          |  | Net position, assets |     |  | Net position, liabilities | 
|--------------------------------------------------------- |  | -------------------- | --- |  | ------------------------- | 
|                                                          |  | Assets               |     |  | Liabilities               | 
|Description of deferred income tax assets and liabilities |  | ThUS$                |     |  | ThUS$                     | 
|Depreciation                                              |  |                      | -   |  |                           | 
|Doubtful accounts impairment                              |  |                      | -   |  |                           | 
|Accrued vacations                                         |  |                      | -   |  |                           | 
|Manufacturing expenses                                    |  |                      | -   |  |                           | 
|Unrealized gains (losses) from sales of products          |  |                      | -   |  |                           | 
|Fair value of bonds                                       |  |                      | -   |  |                           | 
|Severance indemnity                                       |  |                      | -   |  |                           | 
|Hedging                                                   |  |                      | -   |  |                           | 
|Inventory of products, spare parts and supplies           |  |                      | 1   |  |                           | 
|Research and development expenses                         |  |                      | -   |  |                           | 
|Tax losses                                                |  |                      | -   |  |                           | 
|Capitalized interest                                      |  |                      | -   |  |                           | 
|Expenses in assumption of bank loans                      |  |                      | -   |  |                           | 
|Unaccrued interest                                        |  |                      | -   |  |                           | 
|Fair value of property, plant and equipment               |  |                      | -   |  |                           | 
|Employee benefits                                         |  |                      | -   |  |                           | 
|Royalty deferred income taxes                             |  |                      | -   |  |                           | 
|Purchase of intangible assets                             |  |                      | -   |  |                           | 
|Provision for lawsuits and legal expenses                 |  |                      | -   |  |                           | 
|Provision for investment plan                             |  |                      | -   |  |                           | 
|Provision of fines and crushing site closure              |  |                      | -   |  |                           | 
|Other                                                     |  |                      | 530 |  |                           | 
|Balance to date                                           |  |                      | 531 |  |                           | 
|Net balance                                               |  |                      | 531 |  |                           | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-187







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 28	Income tax and deferred taxes (continued)



| | 28.4 | Income tax and deferred taxes, continued
| | ---- | ----------------------------------------



d.3      	Reconciliation of changes in deferred tax liabilities
(assets) as of December 31, 2014



|                                                                  |  | Deferred
                                         tax liabilities (assets)
                                         at the
                                         beginning of
                                         the period |         |   | Deferred
                                         tax expense (income) recognized
                                         in profit
                                         or loss |  |         | Deferred tax
                                         related to
                                         items credited (debited) directly
                                         to equity |  |  | Total
                                         increase (decrease)
                                         of deferred
                                         tax liabilities (assets) |  |  | Deferred tax liabilities (assets)
                                         at the
                                         end of the
                                         period |        
|----------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------- | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------
|                                                                  |  | ThUS$                                                                                                                                                                                                                                |         |   | ThUS$                                                                                                                                                                                 |  |         | ThUS$                                                                                                                                                                                          |  |  | ThUS$                                                                                                                                                                                     |  |  | ThUS$                                                                                                                                                                                 |        
|Depreciation                                                      |  |                                                                                                                                                                                                                                      | 162,378 |   |                                                                                                                                                                                       |  | 71,484  |                                                                                                                                                                                                |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 71,484 
|Doubtful accounts impairment                                      |  |                                                                                                                                                                                                                                      | (7,030  | ) |                                                                                                                                                                                       |  | 275     |                                                                                                                                                                                                |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 275    
|Accrued vacations                                                 |  |                                                                                                                                                                                                                                      | (3,566  | ) |                                                                                                                                                                                       |  | (169    | )                                                                                                                                                                                              |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (169   
|Manufacturing expenses                                            |  |                                                                                                                                                                                                                                      | 66,759  |   |                                                                                                                                                                                       |  | 14,891  |                                                                                                                                                                                                |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 14,891 
|Unrealized gains (losses) from sales of products                  |  |                                                                                                                                                                                                                                      | (84,711 | ) |                                                                                                                                                                                       |  | 1,356   |                                                                                                                                                                                                |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 1,356  
|Fair value of bonds                                               |  |                                                                                                                                                                                                                                      | (661    | ) |                                                                                                                                                                                       |  | -       |                                                                                                                                                                                                |  |  | 311                                                                                                                                                                                       |  |  |                                                                                                                                                                                       | 311    
|Severance indemnity                                               |  |                                                                                                                                                                                                                                      | 4,628   |   |                                                                                                                                                                                       |  | 1,322   |                                                                                                                                                                                                |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 1,322  
|Hedging                                                           |  |                                                                                                                                                                                                                                      | 5,261   |   |                                                                                                                                                                                       |  | (10,773 | )                                                                                                                                                                                              |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (10,773
|Inventory of products, spare parts and supplies                   |  |                                                                                                                                                                                                                                      | (20,829 | ) |                                                                                                                                                                                       |  | (3,803  | )                                                                                                                                                                                              |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (3,803 
|Research and development expenses                                 |  |                                                                                                                                                                                                                                      | 7,018   |   |                                                                                                                                                                                       |  | (2,733  | )                                                                                                                                                                                              |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (2,733 
|Capitalized interest                                              |  |                                                                                                                                                                                                                                      | 21,759  |   |                                                                                                                                                                                       |  | 5,145   |                                                                                                                                                                                                |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 5,145  
|Expenses in assumption of bank loans                              |  |                                                                                                                                                                                                                                      | 2,917   |   |                                                                                                                                                                                       |  | 1,094   |                                                                                                                                                                                                |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 1,094  
|Unaccrued interest                                                |  |                                                                                                                                                                                                                                      | (39     | ) |                                                                                                                                                                                       |  | (111    | )                                                                                                                                                                                              |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (111   
|Fair value of property, plant and equipment                       |  |                                                                                                                                                                                                                                      | 603     |   |                                                                                                                                                                                       |  | (673    | )                                                                                                                                                                                              |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (673   
|Employee benefits                                                 |  |                                                                                                                                                                                                                                      | (381    | ) |                                                                                                                                                                                       |  | (2,069  | )                                                                                                                                                                                              |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (2,069 
|Royalty deferred income taxes                                     |  |                                                                                                                                                                                                                                      | 7,923   |   |                                                                                                                                                                                       |  | (132    | )                                                                                                                                                                                              |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (132   
|Unused tax losses                                                 |  |                                                                                                                                                                                                                                      | (468    | ) |                                                                                                                                                                                       |  | (247    | )                                                                                                                                                                                              |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (247   
|Purchase of intangible assets                                     |  |                                                                                                                                                                                                                                      | 235     |   |                                                                                                                                                                                       |  | -       |                                                                                                                                                                                                |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | -      
|Provision for lawsuits and legal expenses                         |  |                                                                                                                                                                                                                                      | (1,878  | ) |                                                                                                                                                                                       |  | (1,785  | )                                                                                                                                                                                              |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (1,785 
|Provision for investment plan                                     |  |                                                                                                                                                                                                                                      | (4,225  | ) |                                                                                                                                                                                       |  | (4,721  | )                                                                                                                                                                                              |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (4,721 
|Provision of fines and crushing site closure                      |  |                                                                                                                                                                                                                                      | (1,600  | ) |                                                                                                                                                                                       |  | (54     | )                                                                                                                                                                                              |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (54    
|Other ID                                                          |  |                                                                                                                                                                                                                                      | (329    | ) |                                                                                                                                                                                       |  | 637     |                                                                                                                                                                                                |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 637    
|Total temporary
    differences, losses and unused fiscal credits |  |                                                                                                                                                                                                                                      | 153,764 |   |                                                                                                                                                                                       |  | 68.934  |                                                                                                                                                                                                |  |  | 311                                                                                                                                                                                       |  |  |                                                                                                                                                                                       | 69,245 



During the period ended December 31, 2014,
the Company calculated and accounted for taxable income considering a rate of 21% for commercial year 2014 in conformity with Law
No. 20.780, Tax Reform, published in the Official Gazette on September 29, 2014.



The main amendments include a gradual increase
in the corporate income tax rate up to 27% starting from 2018 for taxpayers who apply the “partially-integrated taxation
system.” The maximum rate would be 25% starting from 2017 if the Company opts to use the “Attributed Income Taxation
System.”



Such Law establishes that because SQM S.A.
is openly-held shareholders’ corporations, in general the “Partially-integrated taxation system” is applicable,
unless the Company opts to use the “Attributed Income Taxation System” as agreed by the shareholders at an Extraordinary
Shareholders’ Meeting in the future.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-188







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 28	Income tax and deferred taxes (continued)



| | 28.4 | Income tax and deferred taxes, continued
| | ---- | ----------------------------------------



d.4	Reconciliation of changes in deferred tax liabilities
(assets) as of December 31, 2013



|                                                                  |  | Deferred
                                         tax liabilities (assets)
                                         at the
                                         beginning of
                                         the period |          |   | Deferred
                                         tax expense (income) recognized
                                         in profit
                                         or loss |  |         | Deferred
                                         tax related
                                         to items
                                         credited (debited) directly
                                         to equity |  |  | Total
                                         increase (decrease)
                                         of deferred
                                         tax liabilities (assets) |  |  | Deferred tax liabilities (assets)
                                         at the
                                         end of the
                                         period |        
|----------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------- | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------
|                                                                  |  | ThUS$                                                                                                                                                                                                                                |          |   | ThUS$                                                                                                                                                                                 |  |         | ThUS$                                                                                                                                                                                                                                   |  |  | ThUS$                                                                                                                                                                                     |  |  | ThUS$                                                                                                                                                                                 |        
|Depreciation                                                      |  |                                                                                                                                                                                                                                      | 145,251  |   |                                                                                                                                                                                       |  | 17,127  |                                                                                                                                                                                                                                         |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 17,127 
|Doubtful accounts impairment                                      |  |                                                                                                                                                                                                                                      | (5,807   | ) |                                                                                                                                                                                       |  | (1,223  | )                                                                                                                                                                                                                                       |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (1,223 
|Accrued vacations                                                 |  |                                                                                                                                                                                                                                      | (3,971   | ) |                                                                                                                                                                                       |  | 405     |                                                                                                                                                                                                                                         |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 405    
|Manufacturing expenses                                            |  |                                                                                                                                                                                                                                      | 60,160   |   |                                                                                                                                                                                       |  | 6,599   |                                                                                                                                                                                                                                         |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 6,599  
|Unrealized gains (losses) from sales of products                  |  |                                                                                                                                                                                                                                      | (105,879 | ) |                                                                                                                                                                                       |  | 21,168  |                                                                                                                                                                                                                                         |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 21,168 
|Fair value of bonds                                               |  |                                                                                                                                                                                                                                      | (3,684   | ) |                                                                                                                                                                                       |  | -       |                                                                                                                                                                                                                                         |  |  | 3,023                                                                                                                                                                                     |  |  |                                                                                                                                                                                       | 3,023  
|Severance indemnity                                               |  |                                                                                                                                                                                                                                      | 4,483    |   |                                                                                                                                                                                       |  | 145     |                                                                                                                                                                                                                                         |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 145    
|Hedging                                                           |  |                                                                                                                                                                                                                                      | 22,890   |   |                                                                                                                                                                                       |  | (17,629 | )                                                                                                                                                                                                                                       |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (17,629
|Inventory of products, spare parts and supplies                   |  |                                                                                                                                                                                                                                      | (15,027  | ) |                                                                                                                                                                                       |  | (5,802  | )                                                                                                                                                                                                                                       |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (5,802 
|Research and development expenses                                 |  |                                                                                                                                                                                                                                      | 4,917    |   |                                                                                                                                                                                       |  | 2,101   |                                                                                                                                                                                                                                         |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 2,101  
|Capitalized interest                                              |  |                                                                                                                                                                                                                                      | 20,449   |   |                                                                                                                                                                                       |  | 1,310   |                                                                                                                                                                                                                                         |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 1,310  
|Expenses in assumption of bank loans                              |  |                                                                                                                                                                                                                                      | 2,243    |   |                                                                                                                                                                                       |  | 674     |                                                                                                                                                                                                                                         |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 674    
|Unaccrued interest                                                |  |                                                                                                                                                                                                                                      | (215     | ) |                                                                                                                                                                                       |  | 176     |                                                                                                                                                                                                                                         |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 176    
|Fair value of property, plant and equipment                       |  |                                                                                                                                                                                                                                      | 2,743    |   |                                                                                                                                                                                       |  | (2,140  | )                                                                                                                                                                                                                                       |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (2,140 
|Employee benefits                                                 |  |                                                                                                                                                                                                                                      | (2,027   | ) |                                                                                                                                                                                       |  | 1,646   |                                                                                                                                                                                                                                         |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 1,646  
|Royalty deferred income taxes                                     |  |                                                                                                                                                                                                                                      | 8,430    |   |                                                                                                                                                                                       |  | (507    | )                                                                                                                                                                                                                                       |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (507   
|Unused tax losses                                                 |  |                                                                                                                                                                                                                                      | (1,509   | ) |                                                                                                                                                                                       |  | 1,041   |                                                                                                                                                                                                                                         |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 1,041  
|Purchase of intangible assets                                     |  |                                                                                                                                                                                                                                      | -        |   |                                                                                                                                                                                       |  | 235     |                                                                                                                                                                                                                                         |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 235    
|Provision for lawsuits and legal expenses                         |  |                                                                                                                                                                                                                                      | (1,823   | ) |                                                                                                                                                                                       |  | (55     | )                                                                                                                                                                                                                                       |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (55    
|Provision for investment plan                                     |  |                                                                                                                                                                                                                                      | (2,487   | ) |                                                                                                                                                                                       |  | (1,738  | )                                                                                                                                                                                                                                       |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (1,738 
|Provision of fines and crushing site closure                      |  |                                                                                                                                                                                                                                      | (745     | ) |                                                                                                                                                                                       |  | (855    | )                                                                                                                                                                                                                                       |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | (855   
|Other                                                             |  |                                                                                                                                                                                                                                      | (3,170   | ) |                                                                                                                                                                                       |  | 2,841   |                                                                                                                                                                                                                                         |  |  | -                                                                                                                                                                                         |  |  |                                                                                                                                                                                       | 2,841  
|Total temporary
    differences, losses and unused fiscal credits |  |                                                                                                                                                                                                                                      | 125,222  |   |                                                                                                                                                                                       |  | 25,519  |                                                                                                                                                                                                                                         |  |  | 3,023                                                                                                                                                                                     |  |  |                                                                                                                                                                                       | 28,542 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-189







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 28	Income tax and deferred taxes (continued)



| | 28.4 | Income tax and deferred taxes, continued
| | ---- | ----------------------------------------



d.5         	Deferred taxes related to benefits for tax losses



The Company’s tax loss carryforwards
(NOL carryforwards) were mainly generated by losses in Chile, which in accordance with current Chilean tax regulations have no
expiration date.



As of December 31, 2014 and December 31,
2013, tax loss carryforwards (NOL carryforwards) are detailed as follows:



|      |  | 12/31/2014 |     |  | 12/31/2013 | 
|----- |  | ---------- | --- |  | ---------- | 
|      |  | ThUS$      |     |  | ThUS$      | 
|      |  |            |     |  |            | 
|Chile |  |            | 715 |  |            | 
|Total |  |            | 715 |  |            | 



Tax losses as of December 31, correspond mainly to Servicios
Integrales de Tránsitos y Transferencias S.A., Exploraciones Mineras S.A. e Isapre Norte Grande Ltda.



d.6       Unrecognized deferred income tax assets and liabilities



Unrecognized deferred tax assets and liabilities as of December
31, 2014, 2013 and 2012 are as follows:



|                             |  | 12/31/2014           |       |   | 12/31/2013           |  |       | 12/31/2012           | 
|---------------------------- |  | -------------------- | ----- | - | -------------------- |  | ----- | -------------------- | 
|                             |  | ThUS$                |       |   | ThUS$                |  |       | ThUS$                | 
|                             |  | Assets (liabilities) |       |   | Assets (liabilities) |  |       | Assets (liabilities) | 
|                             |  |                      |       |   |                      |  |       |                      | 
|Tax losses (NOL’s)           |  |                      | 139   |   |                      |  | 139   |                      | 
|Doubtful accounts impairment |  |                      | 81    |   |                      |  | 81    |                      | 
|Inventory impairment         |  |                      | 1,020 |   |                      |  | 1,020 |                      | 
|Pensions plan                |  |                      | (536  | ) |                      |  | (536  | )                    | 
|Accrued vacations            |  |                      | 29    |   |                      |  | 29    |                      | 
|Depreciation                 |  |                      | (57   | ) |                      |  | (57   | )                    | 
|Other                        |  |                      | (19   | ) |                      |  | (19   | )                    | 
|Balances to
    date         |  |                      | 657   |   |                      |  | 657   |                      | 



Tax losses mainly relate to the United States, and they expire
in 20 years.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-190







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 28	Income tax and deferred taxes (continued)



| | 28.4 | Income tax and deferred taxes, continued
| | ---- | ----------------------------------------



d.7	       Movements in deferred tax assets and liabilities



Movements in deferred tax assets and liabilities as of December
31, 2014 and December 31, 2013 are detailed as follows:



|                                                         |  | 12/31/2014           |         |  | 12/31/2013           | 
|-------------------------------------------------------- |  | -------------------- | ------- |  | -------------------- | 
|                                                         |  | ThUS$                |         |  | ThUS$                | 
|                                                         |  | Liabilities (assets) |         |  | Liabilities (assets) | 
|                                                         |  |                      |         |  |                      | 
|Deferred tax assets and liabilities, net opening balance |  |                      | 153,764 |  |                      | 
|Increase (decrease) in deferred taxes in profit or loss  |  |                      | 68,934  |  |                      | 
|Increase (decrease) in deferred taxes in equity          |  |                      | 311     |  |                      | 
|Balances to
    date                                     |  |                      | 223,009 |  |                      | 



d.8	      Disclosures on income tax expense (income)



The Company recognizes current tax and deferred taxes as income
or expenses, and they are included in profit or loss, unless they arise from:



| | (a) | a transaction or event recognized in the same period or in a different period, outside profit or loss either in other comprehensive
income or directly in equity; or
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | a business combination
| | --- | ----------------------



Current and deferred tax expenses (income) are detailed as follows:



|                                                                                            |  | 12/31/2014        |          |   | 12/31/2013        |  |          | 12/31/2012        | 
|------------------------------------------------------------------------------------------- |  | ----------------- | -------- | - | ----------------- |  | -------- | ----------------- | 
|                                                                                            |  | ThUS$             |          |   | ThUS$             |  |          | ThUS$             | 
|                                                                                            |  | Income (expenses) |          |   | Income (expenses) |  |          | Income (expenses) | 
|                                                                                            |  |                   |          |   |                   |  |          |                   | 
|Current income tax expense                                                                  |  |                   |          |   |                   |  |          |                   | 
|Current income tax expense                                                                  |  |                   | (94,796  | ) |                   |  | (113,326 | )                 | 
|Adjustments to prior year current income tax                                                |  |                   | 3,043    |   |                   |  | 305      |                   | 
|Current income
    tax expense, net, total                                                  |  |                   | (91,753  | ) |                   |  | (113,021 | )                 | 
|                                                                                            |  |                   |          |   |                   |  |          |                   | 
|Deferred tax expense                                                                        |  |                   |          |   |                   |  |          |                   | 
|Deferred tax expense (income) related to the creation and reversal of temporary differences |  |                   | (16,629  | ) |                   |  | (25,518  | )                 | 
|                                                                                            |  |                   |          |   |                   |  |          |                   | 
|Deferred tax expense (income) related to changes in tax rates                               |  |                   | (52,304  | ) |                   |  | -        |                   | 
|                                                                                            |  |                   |          |   |                   |  |          |                   | 
|Deferred tax expense,
    net, total                                                        |  |                   | (68,933  | ) |                   |  | (25,518  | )                 | 
|Tax expense
    (income)                                                                    |  |                   | (160,686 | ) |                   |  | (138,539 | )                 | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-191







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 28	Income tax and deferred taxes (continued)



| | 28.4 | Income tax and deferred taxes, continued
| | ---- | ----------------------------------------



Tax expenses (income) for foreign and domestic parties are detailed
as follows:



|                                                                |  | 12/31/2014        |          |   | 12/31/2013        |  |          | 12/31/2012        | 
|--------------------------------------------------------------- |  | ----------------- | -------- | - | ----------------- |  | -------- | ----------------- | 
|                                                                |  | ThUS$             |          |   | ThUS$             |  |          | ThUS$             | 
|                                                                |  | Income (expenses) |          |   | Income (expenses) |  |          | Income (expenses) | 
|                                                                |  |                   |          |   |                   |  |          |                   | 
|Current income tax expense by foreign and domestic parties, net |  |                   |          |   |                   |  |          |                   | 
|Current income tax expense, foreign parties, net                |  |                   | (7,761   | ) |                   |  | (8,267   | )                 | 
|Current income tax expense, domestic, net                       |  |                   | (136,296 | ) |                   |  | (104,769 | )                 | 
|Current income
    tax expense, net, total                      |  |                   | (144,057 | ) |                   |  | (113,036 | )                 | 
|                                                                |  |                   |          |   |                   |  |          |                   | 
|Deferred tax expense by foreign and domestic parties, net       |  |                   |          |   |                   |  |          |                   | 
|Deferred tax expense, foreign parties, net                      |  |                   | (138     | ) |                   |  | 492      |                   | 
|Deferred tax expense, domestic, net                             |  |                   | (16,491  | ) |                   |  | (25,995  | )                 | 
|Deferred tax expense,
    net, total                            |  |                   | (16,629  | ) |                   |  | (25,503  | )                 | 
|Income tax expense                                              |  |                   | (160,686 | ) |                   |  | (138,539 | )                 | 



| | d.9 | Equity interest in taxation attributable to equity-accounted investees
| | --- | ----------------------------------------------------------------------



The Company does not recognize any deferred
tax liability in all cases of taxable temporary differences associated with investments in subsidiaries, branches and associated
companies or interest in joint ventures, because as indicated in the standard, the following two conditions are jointly met:



| | (a) | the parent, investor or interest holder is able to control the time for reversal of the temporary difference; and
| | --- | -----------------------------------------------------------------------------------------------------------------



| | (b) | It is more likely than not that the temporary difference is not reversed in the foreseeable future.
| | --- | ---------------------------------------------------------------------------------------------------



In addition, the Company does not recognize
deferred income tax assets for all deductible temporary differences from investments in subsidiaries, branches and associated companies
or interests in joint ventures because it is not possible to meet for the following requirements:



(a)	     Temporary differences
are reversed in a foreseeable future; and

(b)	     The Company has tax earnings, against which temporary
differences can be used.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-192







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 28	Income tax and deferred taxes (continued)



| | 28.4 | Income tax and deferred taxes, continued
| | ---- | ----------------------------------------



d.10     Disclosures on the tax effects of other comprehensive
income components:



|Income tax related to other income and expense components with a charge or credit to net equity |  | Amount before taxes (expense) gain |       |  | (Expense) income for income taxes |  |      | Amount after taxes | 
|----------------------------------------------------------------------------------------------- |  | ---------------------------------- | ----- |  | --------------------------------- |  | ---- | ------------------ | 
|                                                                                                |  | 12/31/2014                         |       |  | 12/31/2014                        |  |      | 12/31/2014         | 
|                                                                                                |  | ThUS$                              |       |  | ThUS$                             |  |      | ThUS$              | 
|Cash flow hedge                                                                                 |  |                                    | 1,638 |  |                                   |  | (311 | )                  | 
|Total                                                                                           |  |                                    | 1,638 |  |                                   |  | (311 | )                  | 



|Income tax related to components of other income and expense with a charge or credit to net equity |  | Amount before taxes (expense) gain |        |  | (Expense) income for income taxes |  |        | Amount after taxes | 
|-------------------------------------------------------------------------------------------------- |  | ---------------------------------- | ------ |  | --------------------------------- |  | ------ | ------------------ | 
|                                                                                                   |  | 12/31/2013                         |        |  | 31/12/2013                        |  |        | 31/12/2013         | 
|                                                                                                   |  | ThUS$                              |        |  | ThUS$                             |  |        | ThUS$              | 
|Cash flow hedge                                                                                    |  |                                    | 15,113 |  |                                   |  | (3,023 | )                  | 
|Total                                                                                              |  |                                    | 15,113 |  |                                   |  | (3,023 | )                  | 



|Income tax related to components of other income and expense with a charge or credit to net equity |  | Amount before taxes (expense) gain |        |   | (Expense) income for income taxes |  |       | Amount after taxes | 
|-------------------------------------------------------------------------------------------------- |  | ---------------------------------- | ------ | - | --------------------------------- |  | ----- | ------------------ | 
|                                                                                                   |  | 12/31/2012                         |        |   | 31/12/2012                        |  |       | 31/12/2012         | 
|                                                                                                   |  | ThUS$                              |        |   | ThUS$                             |  |       | ThUS$              | 
|Cash flow hedge                                                                                    |  |                                    | (6,236 | ) |                                   |  | 1,580 |                    | 
|Total                                                                                              |  |                                    | (6,236 | ) |                                   |  | 1,580 |                    | 



d.11   	Explanation of the relationship between expense (income)
for tax purposes and accounting income.



In accordance with paragraph No. 81, letter
c) of IAS 12, the Company has estimated that the method that discloses more significant information for the users of its financial
statements is the reconciliation of tax expense (income) to the result of multiplying income for accounting purposes by the tax
rate in force in Chile. This option is based on the fact that the Parent and its subsidiaries incorporated in Chile generate almost
the total amount of tax expense (income) and the fact that amounts of subsidiaries incorporated in foreign countries have no relevant
significance within the context of the total amount of tax expense (income).



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-193







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 28	Income tax and deferred taxes (continued)



| | 28.4 | Income tax and deferred taxes, continued
| | ---- | ----------------------------------------



Reconciliation of numbers in income tax
expenses (income) and the result of multiplying financial gain by the rate prevailing in Chile.



|                                                                                             |  | Income (expense) |         
|-------------------------------------------------------------------------------------------- |  | ---------------- | --------
|                                                                                             |  | 12/31/2014       |         
|                                                                                             |  | ThUS$            |         
|Consolidated income before taxes                                                             |  |                  | 404,964 
|Income tax rate in force in Chile                                                            |  |                  | 21      
|                                                                                             |  |                  |         
|Tax expense using the legal rate                                                             |  |                  | (85,042 
|Effect of royalty tax expense                                                                |  |                  | (7,583  
|Tax effect of non-taxable revenue                                                            |  |                  | 5,420   
|Effect of taxable rate of non-deductible expenses for determination of taxable income (loss) |  |                  | (1,897  
|Tax effect of tax rates supported abroad                                                     |  |                  | (4,050  
|Effect of tax rate from changes in tax rate                                                  |  |                  | (52,304 
|Other tax effects from reconciliation between accounting income and tax expense (income)     |  |                  | (15,230 
|Tax expense
    using effective rate                                                         |  |                  | (160,686



d.12	   Tax periods potentially subject to verification:



The Group’s Companies are potentially
subject to income tax audits by tax authorities in each country. These audits are limited to a number of interim tax periods, which,
in general, when they elapse, give rise to the expiration of these inspections.



Tax audits, due to their nature, are often
complex and may require several years. Below, we provide a summary of tax periods that are potentially subject to verification,
in accordance with tax regulations in force in the country of origin:



Chile



According to article 200 of Decree Law
No. 830, the tax authority shall review for any deficiencies in its settlement and taxes turn giving rise, by applying a requirement
of 3 years term from the expiration of the legal deadline when payment should have been made. Besides, this requirement was extended
to 6 years term for the revision of taxes subject to declaration, when such declaration was not been filed or has been presented
maliciously false.



United States



In the United States, the tax authority may review tax returns
for up to 3 years from the expiration date of the tax return. In the event that an omission or error is detected in the tax return
of sales or cost of sales, the review can be extended for a period of up to 6 years.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-194







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 28	Income tax and deferred taxes (continued)



| | 28.4 | Income tax and deferred taxes, continued
| | ---- | ----------------------------------------



Mexico:



In Mexico, the tax authority can review tax returns up to 5
years from the expiration date of the tax return.



Spain:



In Spain, the tax authority can review
tax returns up to 4 years from the expiration date of the tax return.



Belgium:



In Belgium, the tax authority may review
tax returns for up to 3 years from the expiration date of the tax return if no tax losses exist. In the event of detecting an omission
or error in the tax return, the review can be extended for a period of up to 5 years.



South Africa:



In South Africa, the tax authority may
review tax returns for up to 3 years from the expiration date of the tax return. In the event an omission or error in the tax return
is detected, the review can be extended for a period of up to 5 years.



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-195







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 29	Disclosures on the effects of fluctuations in
foreign currency exchange rates



Assets held in foreign currency subject to fluctuations in exchange
rates are detailed as follows:



|Class of assets                                 |  | Currency |  | 12/31/2014 ThUS$ |         |  | 12/31/2013 ThUS$ | 
|----------------------------------------------- |  | -------- |  | ---------------- | ------- |  | ---------------- | 
|Current assets                                  |  |          |  |                  |         |  |                  | 
|Cash and cash equivalents                       |  | ARS      |  |                  | 12      |  |                  | 
|Cash and cash equivalents                       |  | BRL      |  |                  | 29      |  |                  | 
|Cash and cash equivalents                       |  | CLP      |  |                  | 6,355   |  |                  | 
|Cash and cash equivalents                       |  | CNY      |  |                  | 769     |  |                  | 
|Cash and cash equivalents                       |  | EUR      |  |                  | 10,449  |  |                  | 
|Cash and cash equivalents                       |  | GBP      |  |                  | 5       |  |                  | 
|Cash and cash equivalents                       |  | IDR      |  |                  | 4       |  |                  | 
|Cash and cash equivalents                       |  | INR      |  |                  | 12      |  |                  | 
|Cash and cash equivalents                       |  | MXN      |  |                  | 736     |  |                  | 
|Cash and cash equivalents                       |  | PEN      |  |                  | 1       |  |                  | 
|Cash and cash equivalents                       |  | THB      |  |                  | 2,055   |  |                  | 
|Cash and cash equivalents                       |  | YEN      |  |                  | 1,701   |  |                  | 
|Cash and cash equivalents                       |  | ZAR      |  |                  | 4,046   |  |                  | 
|Subtotal cash and cash equivalents              |  |          |  |                  | 26,174  |  |                  | 
|Other current financial assets                  |  | CLF      |  |                  | 60,153  |  |                  | 
|Other current financial assets                  |  | CLP      |  |                  | 255,045 |  |                  | 
|Subtotal other current financial assets         |  |          |  |                  | 315,198 |  |                  | 
|Other current non-financial assets              |  | ARS      |  |                  | 22      |  |                  | 
|Other current non-financial assets              |  | AUD      |  |                  | -       |  |                  | 
|Other current non-financial assets              |  | BRL      |  |                  | 2       |  |                  | 
|Other current non-financial assets              |  | CLF      |  |                  | 59      |  |                  | 
|Other current non-financial assets              |  | CLP      |  |                  | 20,985  |  |                  | 
|Other current non-financial assets              |  | CNY      |  |                  | 101     |  |                  | 
|Other current non-financial assets              |  | EUR      |  |                  | 5,594   |  |                  | 
|Other current non-financial assets              |  | AED      |  |                  | -       |  |                  | 
|Other current non-financial assets              |  | INR      |  |                  | -       |  |                  | 
|Other current non-financial assets              |  | MXN      |  |                  | 1,503   |  |                  | 
|Other current non-financial assets              |  | PEN      |  |                  | -       |  |                  | 
|Other current non-financial assets              |  | THB      |  |                  | 42      |  |                  | 
|Other current non-financial assets              |  | ZAR      |  |                  | 972     |  |                  | 
|Subtotal other current non-financial
    assets |  |          |  |                  | 29,280  |  |                  | 
|Trade and other receivables                     |  | ARS      |  |                  | -       |  |                  | 
|Trade and other receivables                     |  | AUD      |  |                  | -       |  |                  | 
|Trade and other receivables                     |  | BRL      |  |                  | 29      |  |                  | 
|Trade and other receivables                     |  | CLF      |  |                  | 1,174   |  |                  | 
|Trade and other receivables                     |  | CLP      |  |                  | 80,240  |  |                  | 
|Trade and other receivables                     |  | CNY      |  |                  | 2,368   |  |                  | 
|Trade and other receivables                     |  | EUR      |  |                  | 24,496  |  |                  | 
|Trade and other receivables                     |  | GBP      |  |                  | 269     |  |                  | 
|Trade and other receivables                     |  | MXN      |  |                  | 322     |  |                  | 
|Trade and other receivables                     |  | PEN      |  |                  | 88      |  |                  | 
|Trade and other receivables                     |  | THB      |  |                  | 4,713   |  |                  | 
|Trade and other receivables                     |  | INR      |  |                  | -       |  |                  | 
|Trade and other receivables                     |  | ZAR      |  |                  | 18,162  |  |                  | 
|Subtotal trade and other receivables            |  |          |  |                  | 131,861 |  |                  | 
|Receivables from related parties                |  | AED      |  |                  | 379     |  |                  | 
|Receivables from related parties                |  | CLP      |  |                  | 87      |  |                  | 
|Receivables from related parties                |  | EUR      |  |                  | 1,360   |  |                  | 
|Receivables from related parties                |  | THB      |  |                  | 1,506   |  |                  | 
|Receivables from related parties                |  | CNY      |  |                  | 105     |  |                  | 
|Receivables from related parties                |  | YEN      |  |                  | 206     |  |                  | 
|Receivables from related parties                |  | ZAR      |  |                  | 3,771   |  |                  | 
|Subtotal receivables from related parties       |  |          |  |                  | 7,414   |  |                  | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-196







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 29	Disclosures
on the effects of fluctuations in foreign currency exchange rates (continued)



|Class of assets                                     |  | Currency |  | 12/31/2014 ThUS$ |         |  | 12/31/2013 ThUS$ | 
|--------------------------------------------------- |  | -------- |  | ---------------- | ------- |  | ---------------- | 
|Current tax assets                                  |  | AUD      |  |                  | -       |  |                  | 
|Current tax assets                                  |  | CLP      |  |                  | 1,803   |  |                  | 
|Current tax assets                                  |  | EUR      |  |                  | 68      |  |                  | 
|Current tax assets                                  |  | ZAR      |  |                  | -       |  |                  | 
|Current tax assets                                  |  | MXN      |  |                  | 1,122   |  |                  | 
|Current tax assets                                  |  | PEN      |  |                  | 253     |  |                  | 
|Subtotal current tax assets                         |  |          |  |                  | 3,246   |  |                  | 
|Non-current assets                                  |  |          |  |                  |         |  |                  | 
|Other non-current financial assets                  |  | BRL      |  |                  | -       |  |                  | 
|Other non-current financial assets                  |  | CLP      |  |                  | 20      |  |                  | 
|Other non-current financial assets                  |  | YEN      |  |                  | 39      |  |                  | 
|Subtotal other non-current financial
    assets     |  |          |  |                  | 59      |  |                  | 
|Other non-current non-financial assets              |  | BRL      |  |                  | 170     |  |                  | 
|Other non-current non-financial assets              |  | CLP      |  |                  | 727     |  |                  | 
|Subtotal other non-current non-financial
    assets |  |          |  |                  | 897     |  |                  | 
|Non-current right receivable                        |  | CLF      |  |                  | 1,028   |  |                  | 
|Non-current right receivable                        |  | CLP      |  |                  | 1,016   |  |                  | 
|Subtotal non-current rights receivable              |  |          |  |                  | 2,044   |  |                  | 
|Equity-accounted investees                          |  | AED      |  |                  | 19,459  |  |                  | 
|Equity-accounted investees                          |  | CLP      |  |                  | 1,159   |  |                  | 
|Equity-accounted investees                          |  | IDR      |  |                  | -       |  |                  | 
|Equity-accounted investees                          |  | EUR      |  |                  | 8,004   |  |                  | 
|Equity-accounted investees                          |  | INR      |  |                  | 754     |  |                  | 
|Equity-accounted investees                          |  | THB      |  |                  | 2,038   |  |                  | 
|Equity-accounted investees                          |  | TRY      |  |                  | 14,956  |  |                  | 
|Subtotal equity-accounted investees                 |  |          |  |                  | 46,370  |  |                  | 
|Intangible assets other than goodwill               |  | CLP      |  |                  | 402     |  |                  | 
|Intangible assets other than goodwill               |  | CNY      |  |                  | 1       |  |                  | 
|Subtotal intangible assets other than
    goodwill  |  |          |  |                  | 403     |  |                  | 
|Property, plant and equipment                       |  | CLP      |  |                  | 4,240   |  |                  | 
|Subtotal property, plant and equipment              |  |          |  |                  | 4,240   |  |                  | 
|Total non-current assets                            |  |          |  |                  | 54,013  |  |                  | 
|Total assets                                        |  |          |  |                  | 567,186 |  |                  | 





|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-197







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 29	Disclosures
on the effects of fluctuations in foreign currency exchange rates (continued)



Liabilities held in foreign currencies are detailed as follows:



|                                                      |  |          |  | 12/31/2014                                                  |        |  | 12/31/2013                                                                                                | 
|----------------------------------------------------- |  | -------- |  | ----------------------------------------------------------- | ------ |  | --------------------------------------------------------------------------------------------------------- | 
|Class of liability                                    |  | Currency |  | Up
                                         to90 days ThUS$ |        |  | 91
                                         days to 1
                                         year ThUS$ | 
|Current liabilities                                   |  |          |  |                                                             |        |  |                                                                                                           | 
|Other current financial liabilities                   |  | CLF      |  |                                                             | 4,822  |  |                                                                                                           | 
|Other current financial liabilities                   |  | CLP      |  |                                                             | -      |  |                                                                                                           | 
|Subtotal other current financial liabilities          |  |          |  |                                                             | 4,822  |  |                                                                                                           | 
|Trade and other payables                              |  | ARS      |  |                                                             | -      |  |                                                                                                           | 
|Trade and other payables                              |  | BRL      |  |                                                             | 52     |  |                                                                                                           | 
|Trade and other payables                              |  | CHF      |  |                                                             | 1      |  |                                                                                                           | 
|Trade and other payables                              |  | CLP      |  |                                                             | 67,326 |  |                                                                                                           | 
|Trade and other payables                              |  | CNY      |  |                                                             | 2,622  |  |                                                                                                           | 
|Trade and other payables                              |  | EUR      |  |                                                             | 10,442 |  |                                                                                                           | 
|Trade and other payables                              |  | GBP      |  |                                                             | 14     |  |                                                                                                           | 
|Trade and other payables                              |  | INR      |  |                                                             | 1      |  |                                                                                                           | 
|Trade and other payables                              |  | MXN      |  |                                                             | 20     |  |                                                                                                           | 
|Trade and other payables                              |  | PEN      |  |                                                             | 6      |  |                                                                                                           | 
|Trade and other payables                              |  | ZAR      |  |                                                             | 1,470  |  |                                                                                                           | 
|Subtotal trade and other payables                     |  |          |  |                                                             | 81,954 |  |                                                                                                           | 
|Other current provisions                              |  | ARS      |  |                                                             | -      |  |                                                                                                           | 
|Other current provisions                              |  | BRL      |  |                                                             | 524    |  |                                                                                                           | 
|Other current provisions                              |  | CLP      |  |                                                             | 9      |  |                                                                                                           | 
|Other current provisions                              |  | EUR      |  |                                                             | 6      |  |                                                                                                           | 
|Other current provisions                              |  | INR      |  |                                                             | -      |  |                                                                                                           | 
|Subtotal other current provisions                     |  |          |  |                                                             | 539    |  |                                                                                                           | 
|Current tax liabilities                               |  | CLP      |  |                                                             | -      |  |                                                                                                           | 
|Current tax liabilities                               |  | EUR      |  |                                                             | -      |  |                                                                                                           | 
|Current tax liabilities                               |  | MXN      |  |                                                             | -      |  |                                                                                                           | 
|Subtotal current tax liabilities                      |  |          |  |                                                             | -      |  |                                                                                                           | 
|Current provisions for employee benefits              |  | CLP      |  |                                                             | -      |  |                                                                                                           | 
|Current provisions for employee benefits              |  | MXN      |  |                                                             | -      |  |                                                                                                           | 
|Subtotal current provisions for employee
    benefits |  |          |  |                                                             | -      |  |                                                                                                           | 





|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-198







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 29	Disclosures
on the effects of fluctuations in foreign currency exchange rates (continued)



|                                                     |  |          |  | 12/31/2014                                                   |        |  | 12/31/2013                                                                                                     | 
|---------------------------------------------------- |  | -------- |  | ------------------------------------------------------------ | ------ |  | -------------------------------------------------------------------------------------------------------------- | 
|Class of liability                                   |  | Currency |  | Up
                                         to 90 days ThUS$ |        |  | over
                                         90 days
                                         to 1 year ThUS$ | 
|Other current non-financial liabilities              |  | BRL      |  |                                                              | 18     |  |                                                                                                                | 
|Other current non-financial liabilities              |  | CLP      |  |                                                              | 5,557  |  |                                                                                                                | 
|Other current non-financial liabilities              |  | CNY      |  |                                                              | -      |  |                                                                                                                | 
|Other current non-financial liabilities              |  | EUR      |  |                                                              | 546    |  |                                                                                                                | 
|Other current non-financial liabilities              |  | MXN      |  |                                                              | 1,479  |  |                                                                                                                | 
|Other current non-financial liabilities              |  | AUD      |  |                                                              | 70     |  |                                                                                                                | 
|Other current non-financial liabilities              |  | PEN      |  |                                                              | -      |  |                                                                                                                | 
|Other current non-financial liabilities              |  | THD      |  |                                                              | 4      |  |                                                                                                                | 
|Other current non-financial liabilities              |  | ZAR      |  |                                                              | 37     |  |                                                                                                                | 
|Subtotal other current non-financial
    liabilities |  |          |  |                                                              | 7,711  |  |                                                                                                                | 
|Total current liabilities                            |  |          |  |                                                              | 95,026 |  |                                                                                                                | 



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-199







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 29	Disclosures
on the effects of fluctuations in foreign currency exchange rates (continued)



|                                                          |  |          |  |                                                             |       |  | 12/31/2014                                                  |  |        |                                                             |  |  |                                                             |  |  |                                                             |      
|--------------------------------------------------------- |  | -------- |  | ----------------------------------------------------------- | ----- |  | ----------------------------------------------------------- |  | ------ | ----------------------------------------------------------- |  |  | ----------------------------------------------------------- |  |  | ----------------------------------------------------------- | -----
|Class of liability                                        |  | Currency |  | 1
                                         to 2 years ThUS$ |       |  | 2
                                         to 3 years ThUS$ |  |        | 3
                                         to 4 years ThUS$ |  |  | 4
                                         to 5 years ThUS$ |  |  | Over
                                         5 years ThUS$ |      
|Non-current liabilities                                   |  |          |  |                                                             |       |  |                                                             |  |        |                                                             |  |  |                                                             |  |  |                                                             |      
|Other non-current financial liabilities                   |  | CLF      |  |                                                             | 6,088 |  |                                                             |  | 46,524 |                                                             |  |  | 6,088                                                       |  |  |                                                             | 6,088
|Other non-current financial liabilities                   |  | CLP      |  |                                                             | -     |  |                                                             |  | -      |                                                             |  |  | -                                                           |  |  |                                                             | -    
|Subtotal other non-current financial
    liabilities      |  |          |  |                                                             | 6,088 |  |                                                             |  | 46,524 |                                                             |  |  | 6,088                                                       |  |  |                                                             | 6,088
|Deferred tax liabilities                                  |  | CLP      |  |                                                             | -     |  |                                                             |  | -      |                                                             |  |  | -                                                           |  |  |                                                             | -    
|Deferred tax liabilities                                  |  | MXN      |  |                                                             | -     |  |                                                             |  | -      |                                                             |  |  | -                                                           |  |  |                                                             | -    
|Subtotal deferred tax liabilities                         |  |          |  |                                                             | -     |  |                                                             |  | -      |                                                             |  |  | -                                                           |  |  |                                                             | -    
|Non-current provisions for employee benefits              |  | CLP      |  |                                                             | -     |  |                                                             |  | -      |                                                             |  |  | -                                                           |  |  |                                                             | -    
|Non-current provisions for employee benefits              |  | MXN      |  |                                                             | -     |  |                                                             |  | -      |                                                             |  |  | -                                                           |  |  |                                                             | -    
|Non-current provisions for employee benefits              |  | YEN      |  |                                                             | -     |  |                                                             |  | -      |                                                             |  |  | -                                                           |  |  |                                                             | -    
|Subtotal non-current provisions for
    employee benefits |  |          |  |                                                             | -     |  |                                                             |  | -      |                                                             |  |  | -                                                           |  |  |                                                             | -    
|Total non-current liabilities                             |  |          |  |                                                             | 6,088 |  |                                                             |  | 46,524 |                                                             |  |  | 6,088                                                       |  |  |                                                             | 6,088



|                                                          |  |          |  |                                                             |       |  | 12/31/2013                                                  |  |       |                                                             |  |  |                                                             |  |  |                                                             |      
|--------------------------------------------------------- |  | -------- |  | ----------------------------------------------------------- | ----- |  | ----------------------------------------------------------- |  | ----- | ----------------------------------------------------------- |  |  | ----------------------------------------------------------- |  |  | ----------------------------------------------------------- | -----
|Class of liability                                        |  | Currency |  | 1
                                         to 2 years ThUS$ |       |  | 2
                                         to 3 years ThUS$ |  |       | 3
                                         to 4 years ThUS$ |  |  | 4
                                         to 5 years ThUS$ |  |  | Over
                                         5 years ThUS$ |      
|Non-current liabilities                                   |  |          |  |                                                             |       |  |                                                             |  |       |                                                             |  |  |                                                             |  |  |                                                             |      
|Other non-current financial liabilities                   |  | CLF      |  |                                                             | 6,471 |  |                                                             |  | 6,488 |                                                             |  |  | 50,648                                                      |  |  |                                                             | 6,521
|Other non-current financial liabilities                   |  | CLP      |  |                                                             | -     |  |                                                             |  | -     |                                                             |  |  | -                                                           |  |  |                                                             | -    
|Subtotal other non-current financial
    liabilities      |  |          |  |                                                             | 6,471 |  |                                                             |  | 6,488 |                                                             |  |  | 50,648                                                      |  |  |                                                             | 6,521
|Deferred tax liabilities                                  |  | CLP      |  |                                                             | -     |  |                                                             |  | -     |                                                             |  |  | -                                                           |  |  |                                                             | -    
|Deferred tax liabilities                                  |  | MXN      |  |                                                             | -     |  |                                                             |  | -     |                                                             |  |  | -                                                           |  |  |                                                             | -    
|Subtotal deferred tax liabilities                         |  |          |  |                                                             | -     |  |                                                             |  | -     |                                                             |  |  | -                                                           |  |  |                                                             | -    
|Non-current provisions for employee benefits              |  | CLP      |  |                                                             | -     |  |                                                             |  | -     |                                                             |  |  | -                                                           |  |  |                                                             | -    
|Non-current provisions for employee benefits              |  | MXN      |  |                                                             | -     |  |                                                             |  | -     |                                                             |  |  | -                                                           |  |  |                                                             | -    
|Non-current provisions for employee benefits              |  | YEN      |  |                                                             | -     |  |                                                             |  | -     |                                                             |  |  | -                                                           |  |  |                                                             | -    
|Subtotal non-current provisions for
    employee benefits |  |          |  |                                                             | -     |  |                                                             |  | -     |                                                             |  |  | -                                                           |  |  |                                                             | -    
|Total non-current liabilities                             |  |          |  |                                                             | 6,471 |  |                                                             |  | 6,488 |                                                             |  |  | 50,648                                                      |  |  |                                                             | 6,521



|SQM S.A.
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------------ | 

F-200







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 30	Mineral resource
exploration and evaluation expenditure



Because of the nature of the operations
of Sociedad Química y Minera de Chile S.A. and its subsidiaries and the type of exploration they conduct (which is different
than other mining businesses where the exploration process results in significant time), the exploration and process and the definition
of the economic feasibility occurs normally within the year. Accordingly, although expenditure is initially capitalized, it could
be recognized in profit or loss for the same year should there be no technical and commercial feasibility. This results in having
no significant expenditure that have no feasibility study at the end of the year.



Prospecting expenditure can be found in
4 different stages: execution, economically feasible, not economically feasible and under exploitation:



1.       	Execution: prospecting expenditure
which are under execution and accordingly there is no yet a definition as to its economic feasibility are classified in the caption
property, plant and equipment. As of December 31, 2014 and December 31, 2013, the balance amounts to ThUS$28,401 and ThUS$ 28,568,
respectively.



2.       	Economically feasible: prospecting
expenditure, which upon completion, has been concluded to be economically feasible is classified in the caption non-current assets
in other non-current non-financial assets. As of December 31, 2014 and December 31, 2013, the balance amounts to ThUS$ 29,569
and ThUS$ 33,388 respectively.



3.       	Not economically feasible: Prospecting
expenditure, which upon completion it has been concluded that are not economically feasible are recorded in profit or loss: as
of December 31, 2014 and December 31, 2013, the balance amounts to ThUS$2,352 and ThUS$7,064, respectively.



4.       	Under exploitation: Prospecting
expenditure under exploitation is classified in the caption current assets in current inventories. These are amortized considering
the exploited material. As of December 31, 2014 and December 31, 2013, the balance amounts to ThUS$2,207 and ThUS$ 630, respectively.



For
the amount of capitalized expenditure, the total amount disbursed in exploration and evaluation of mineral resources for the year
ended December 31, 2014ThUS$9,910, and correspond to non-metallic
projects. Such expenditure mainly correspond to studies, either topographical, geological, exploratory drilling, sampling, among
others.



With respect to this expenditure, the Company
has defined classifying it in accordance with IFRS 6.9:



For exploration expenditure where the mineral
has low ore grade that is not economically exploitable, it is debited directly to profit or loss.



If studies determine that the ore grade
is economically exploitable, it is classified in other non-current assets in the caption stain development and prospecting expenses
and at the time of making the decision for exploiting the zone it is classified in the caption inventories as part of the cost
of raw materials required for production purposes.



|SQM
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------- | 

F-201







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



Note 31	Events occurred
after the reporting date



| | 31.1 | Authorization of the financial statements
| | ---- | -----------------------------------------



The consolidated financial statements
of Sociedad Química y Minera de Chile S.A. and subsidiaries prepared in accordance with International Financial
Reporting Standards for the period ended December 31, 2014 were approved and authorized for issuance by the Company’s
Audit Committee on May 15, 2015.



| | 31.2 | Disclosures on events occurring after the reporting date
| | ---- | --------------------------------------------------------



The Chilean Internal Revenue Service (Servicio
de Impuestos Internos or the “SII”) has been conducting tax investigations related to the payment of invoices by
companies, including SQM, for services that may not have been properly supported. The Chilean Public Prosecutor (Ministerio
Público) has been conducting related inquiries to determine whether such payments may be linked with alleged violations
of political contribution laws involving a variety of Chilean companies, including SQM, and government officials.



On February 26, 2015, SQM’s
Board of Directors resolved to establish an ad-hoc committee of the Board of Directors (the “ad-hoc Committee”)
authorized to conduct an internal investigation relating to the issues referred to in the above paragraph and to retain such
independent external advice as it deemed appropriate. The original members of the ad-hoc Committee were José
María Eyzaguirre B., Juan Antonio Guzmán M. and Wolf von Appen B.



The ad-hoc Committee has engaged its own
lawyers from Chile and the United States and forensic accountants from the United States to assist as it proceeds with its internal
review.



On March 12, 2015, José María
Eyzaguirre B. resigned from the ad-hoc Committee and his position was subsequently filled by Hernán Büchi B.





On March 16, 2015, the Board of Directors decided to terminate
the employment contract of the Company’s former CEO, Patricio Contesse G. This followed his failure to cooperate with the
ad-hoc Committee’s investigation.





On March 17, 2015, three members of the
Board of Directors resigned, all of whom had been nominated by Potash Corp., one of SQM’s two principal shareholder groups.
Potash Corp. issued a press release stating that the directors resigned because of their concern that they could not ensure that
the Company was conducting an appropriate investigation and collaborating effectively with the Public Prosecutor.





On March 20, 2015, the Company identified to the SII approximately
US$11 million in payments of invoices that may not have been properly supported by services rendered and therefore may not qualify
as tax expenses under the Chilean tax code. These payments originated from the office of the former CEO during the six-year tax
period from 2009 to 2014. The statute of limitations under Chilean law for tax claims is up to six years, during which period the
former CEO had an annual discretionary budget covering the Company and its subsidiaries of approximately US$6 million.







|SQM
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------- | 

F-202







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



On March 23, 2015, the SII, based on the Income Tax Law (Ley
de Impuesto a La Renta) filed a criminal claim against the Company’s former CEO and current CEO and CFO in their capacities
as the Company’s tax representatives relating to the US$11 million in payments referred to above. This and subsequent related
claims filed by the SII are subject to review by the Public Prosecutor in order to determine whether to pursue charges against
any of the parties in their personal capacities.





On March 30, 2015, the Company submitted amendments to its tax
returns for the 2009 to 2014 tax years and has paid taxes and interest relating to such amended returns totaling approximately
US$7 million. The aggregate amount was approximately evenly distributed over the six-year period, but as the amounts were inconsequential
in each individual year, the Company recorded a provision for the aggregate amount in the “other expenses” line-item
of the income statement for the year ended December 31, 2014. The Company’s management does not believe there will be any
additional material impact to the Company’s business, financial condition, cash flows or results of operations.





On March 31, 2015, the SVS filed an administrative claim against
five current or former members of the Board of Directors, alleging that they did not release information in a timely manner relating
to the payments that are subject to the tax claim referred to above.













On April 24, 2015, the Company announced that it had identified
up to an additional US$2 million in payments by its subsidiaries during the same six-year tax period that were authorized by the
former CEO and that also may have been insufficiently supported. On the same date, new members were elected to the Board of Directors
at the Annual General Shareholders’ Meeting, including three new members that were nominated by Potash Corp., and the ad-hoc
Committee was subsequently reconstituted by Board of Directors members Robert A. Kirkpatrick, Wolf von Appen B. and Edward J. Waitzer.









On April 30, 2015, the Public Prosecutor, after reviewing the
claims filed by the SII informed the Company’s former CEO that it was formally investigating allegations that he approved
the payment of the invoices that were not properly supported by services rendered and in connection therewith made intentionally
false or incomplete declarations or used fraudulent procedures designed to conceal or disguise the true amount of transactions
or to circumvent taxes. If, as a result of the formal investigation, the former CEO is charged and finally adjudicated responsible, the
Company may also be subject to the payment of a fine by the Chilean Criminal Court (Octavo Tribunal de Juicio
Oral en lo Penal de Santiago) totaling 50% to 300% of the tax paid. The Company estimates that no provision is needed
at this stage.









On May 11, 2015, the SII filed an additional criminal claim
against the former CEO and the current CEO and CFO in their capacities as the Company’s tax representatives alleging violations
of the Chilean Inheritance and Donations Law (Ley sobre Impuesto a Las Herencias, Asignaciones y Donaciones). The claim
states that the Company paid two invoices in 2009 and 2010 totaling approximately US$175,000 that are alleged to have been improperly
supported. The claim states that these payments should have been classified as donations, and appropriate taxes should have been
paid. These payments were accounted for in the amended tax returns filed with the SII on March 30, 2015. This claim is subject
to review by the Public Prosecutor in order to determine whether to pursue charges against any of the parties in their personal
capacities.







|SQM
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------- | 

F-203







| | Notes to the Consolidated Financial Statements as of December 31, 2014
| | ----------------------------------------------------------------------



| | 31.3 | Detail of dividends declared after the reporting date
| | ---- | -----------------------------------------------------





On March 24, 2015, the Company’s Board of Directors, who
met in an Ordinary Meeting, unanimously agreed to recommend at the next Annual General Shareholders' Meeting of SQM to distribute
and pay, by way of final dividend, 50% of the distributable net income obtained by SQM during the fiscal year 2014 (as
presented in the Chilean statutory consolidated financial statements).







This recommendation maintains SQM’s
"Dividend Policy for the 2014 Business Year" which was presented to shareholders at SQM’s Annual General Shareholders'
Meeting held on April 25, 2014.



At the Annual General Shareholders' Meeting
on April 24, 2015, SQM’s shareholders approved the payment by the Company of a final dividend of US$ 0.56304 per share based
on the distributable net income obtained during the 2014 fiscal year. The amount of US$ 0.41493 per share, which was already paid
as an provisional dividend, must be deducted from this final dividend and the balance, in the amount of US$ 0.14811 per share,
was paid and distributed to SQM’s shareholders who were registered in the respective Registry by the fifth business day before
the day on which the dividend was paid. This amount was paid in the equivalent in Chilean national currency according to the value
of the "Observed Dollar” or "US Dollar” that was published in the Official Gazette on April 24, 2015.



This dividend amount was paid to the corresponding
shareholders, in person or through their duly authorized representatives, as of 9:00 am on May 8, 2015.



Management was not aware of any other significant
events that occurred between December 31, 2014 and the date of issuance of these consolidated financial statements that may affect
them significantly.



|SQM
        Los Militares 4290,
        Las Condes, Santiago, Chile
        Tel: (562) 425 2000
        www.sqm.com | 
|------------------------------------------------------------------------------------------------------------------- | 

F-204