Joint Ventures

12 Months Ended

Dec. 31, 2021

Disclosure Of Joint Ventures Explanatory [Abstract]

Disclosure of joint ventures [text block]

Note 8 Joint Ventures

8.1 Investment in joint ventures accounted for under the equity method of accounting.

	Equity-accounted investees						Share in profit (loss) of joint ventures accounted for using the equity method
Joint Venture	As of December 31,  2021		As of December 31,  2020		As of December 31,  2019		For the year ended December 31,  2021		For the year ended December 31,  2020			For the year ended December 31,  2019
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
Coromandel SQM India (*)		-		-		1,568		-		-			(98	)
SQM Vitas Fzco.		8,682		9,720		9,111		6,304		2,010			1,797
SQM Qingdao Star Corp Nutrition Co. Ltd. (*)		-		-		3,464		-		83			296
SQM Vitas B.V.		-		-		1,304		-		-			(15	)
Pavoni & C. Spa		7,030		7,222		6,864		174		9			36
Covalent Lithium Pty Ltd. (**)		-		-		40		-		-			-
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		-		9,028		1,992		-		(280	)		(632	)
Total		15,712		25,970		24,343		6,478		1,822			1,384

	Share on other comprehensive income joint ventures  accounted for using the equity method									Share on total comprehensive income of joint ventures accounted for using the equity method
Joint Venture	For the year ended December 31,  2021			For the year ended December 31,  2020			For the year ended December 31,  2019			For the year ended December 31,  2021			For the year ended December 31,  2020			For the year ended December 31,  2019
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Coromandel SQM India (*)		-			-			(38	)		-			-			(136	)
SQM Vitas Fzco.		429			(1,469	)		437			6,733			541			2,234
SQM Qingdao Star Corp Nutrition Co. Ltd. (*)		-			-			-			-			83			296
SQM Vitas B.V.		-			-			(27	)		-			-			(42	)
Pavoni & C. Spa		(317	)		349			(255	)		(143	)		358			(219	)
Covalent Lithium Pty Ltd. (**)		37			16			(13	)		37			16			(13	)
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		-			-			-			-			(280	)		(632	)
Total		149			(1,104	)		104			6,627			718			1,488

(*) These investments were disposed of in 2020

(**) See more details in Note 8.4 (a).

The amounts described in the following box represent numbers used in the consolidation of the company:

	Equity-accounted investees						Share in profit (loss) of joint ventures accounted for using the equity method
Joint Venture	As of December 31,  2021		As of December 31,  2020		As of December 31,  2019		For the year ended December 31,  2021		For the year ended December 31,  2020		For the year ended December 31,  2019
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
SQM Vitas Brasil Agroindustria (1)		-		3,511		5,347		4,582		1,018		564
SQM Vitas Perú S.A.C. (1)		4,681		1,659		1,955		1,645		660		211
Arpa Speciali S.R.L.		-		-		92		-		-		31
Total		4,681		5,170		7,394		6,227		1,678		806

	Share on other comprehensive income of joint ventures accounted for using the equity method									Share on total comprehensive income of joint ventures accounted for using the equity method
Joint Venture	For the year ended December 31,  2021			For the year ended December 31,  2020			For the year ended December 31,  2019			For the year ended December 31,  2021		For the year ended December 31,  2020			For the year ended December 31,  2019
	ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$
SQM Vitas Brasil Agroindustria (1)		(429	)		(1,469	)		(225	)		4,153		(451	)		339
SQM Vitas Perú S.A.C. (1)		-			-			661			1,645		660			872
Arpa Speciali S.R.L.		-			-			(1	)		-		-			30
Total		(429	)		(1,469	)		435			5,798		209			1,241

The companies are subsidiaries of:

SQM Vitas Fzco.

							Dividends received for the year ending
Joint venture	Description of the nature of the relationship	Domicile	Country of  incorporation	Share of interest in ownership (*)			December 31,  2021		December 31,  2020		December 31,  2019
							ThUS$		ThUS$		ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.	Production and distribution of soluble fertilizers.	Huangjing Road, Dawan Town, Qingbaijiang Dristrict, 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, animal nutrition and industrial hygiene.	Jebel ALI Free Zone P.O. Box 18222, Dubai	United Arab Emirates		50	%		-		-		10,598
SQM Qingdao Star 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	%		-		2,223		-
Pavoni & C. Spa	Production of specialty fertilizers and others for distribution in Italy and other countries.	Corso Italia 172, 95129 Catania (CT), Sicilia	Italy		50	%		-		-		-
Covalent Lithium Pty Ltd.	Development and operation of the Mt. Holland Lithium project, which will include the construction of a lithium extraction and refining mine.	L18, 109 St Georges Tce Perth WA 6000 |PO Box Z5200 St Georges Tce Perth WA 6831	Australia		50	%		-		-		-
Total								-		2,223		10,598

The companies described in the following table are related to the following joint ventures:

(1) SQM Vitas Fzco.

(2) Pavoni & C. Spa.

							Dividends received for the year ending
Joint venture	Description of the nature of the relationship	Domicile	Country of incorporation	Share of interest in ownership (*)			December 31,  2021		December 31,  2020		December 31,  2019
							ThUS$		ThUS$		ThUS$
SQM Vitas Brasil Agroindustria (1)	Production and trading of specialty vegetable and animal nutrition and industrial hygiene.	Via Cndeias, Km. 01 Sem Numero, Lote 4, Bairro Cia Norte, Candeias, Bahia.	Brazil		49.99	%		-		-		-
SQM Vitas Perú S.A.C. (1)	Production and trading of specialty vegetable and animal nutrition and industrial hygiene	Av. Juan de Arona 187, Torre B, Oficina 301-II, San Isidro, Lima	Peru		50	%		-		-		-
Arpa Speciali S.R.L. (2)	Production of specialty fertilizers and others for distribution in Italy and other countries.	Mantova (MN) Via Cremona 27 Int. 25	Italy		50.48	%		-		-		-
Total								-		-		-

(*) The percentages presented correspond to the ownership used in the consolidation of the company.

F-61

Notes to the Consolidated Financial Statements 
December 31, 2021

8.2 Assets, liabilities, revenue and expenses from joint ventures

	As of December 31, 2021								For the year ended December 31, 2021
	Assets				Liabilities									Other
Joint Venture	Current		Non-current		Current		Non-current		Revenue		Net gain (loss)			comprehensive income			Comprehensive income
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
SQM Vitas Fzco.		9,606		20,206		215		-		-		12,608			-			12,608
SQM Vitas Brasil Agroindustria		73,500		4,846		68,794		-		103,335		9,165			(858	)		8,307
SQM Vitas Perú S.A.C.		28,610		7,347		24,473		828		48,128		3,289			-			3,289
Pavoni & C. Spa		12,885		6,714		11,226		725		19,599		347			(634	)		(287	)
Covalent Lithium Pty Ltd.		3,904		2,636		7,498		1,489		-		(864	)		74			(790	)
Total		128,505		41,749		112,206		3,042		171,062		24,545			(1,418	)		23,127

	As of December 31, 2020									For the year ended December 31, 2020
	Assets					Liabilities									Other
Joint Venture	Current			Non-current		Current		Non-current		Revenue		Net gain (loss)			comprehensive income			Comprehensive income
	ThUS$			ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		29,507			4,412		14,156		-		9		(562	)		-			(562	)
SQM Vitas Fzco.		(496	)		20,431		496		-		-		4,019			-			4,019
SQM Vitas Brasil Agroindustria		40,064			5,527		33,410		-		78,960		2,036			(2,938	)		(902	)
SQM Vitas Perú S.A.C.		34,548			7,928		33,145		1,080		37,591		1,319			-			1,319
Pavoni & C. Spa		10,645			7,493		9,270		836		15,958		16			698			714
Covalent Lithium Pty Ltd.		1,418			2,131		2,823		910		-		(232	)		33			(199	)
Total		115,686			47,922		93,300		2,826		132,518		6,596			(2,207	)		4,389

F-62

Notes to the Consolidated Financial Statements 
December 31, 2021

 

	As of December 31, 2019								For the year ended December 31, 2019
	Assets				Liabilities									Other
Joint Venture	Current		Non-current		Current		Non-current		Revenue		Net gain (loss)			comprehensive income			Comprehensive income
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		28,668		5,129		13,472		-		7		(1,262	)		-			(1,262	)
Coromandel SQM India		4,504		633		1,704		-		8,197		(197	)		(77	)		(274	)
SQM Vitas Fzco.		9,695		1		1,136		-		36		3,595			(876	)		2,719
SQM Qingdao Star Corp Nutrition Co. Ltd.		7,534		26		632		-		12,003		592			-			592
SQM Vitas B.V.		2,609		-		2		-		-		(30	)		(53	)		(83	)
SQM Vitas Brasil Agroindustria		46,118		7,299		40,334		-		87,901		1,128			(451	)		677
SQM Vitas Perú S.A.C.		29,452		8,378		24,855		6,044		28,590		421			1,322			1,743
Pavoni & C. Spa		9,444		7,074		8,466		735		14,296		71			(510	)		(439	)
Covalent Lithium Pty Ltd.		1,616		958		2,111		383		-		-			(25	)		(25	)
Total		139,640		29,498		92,712		7,162		151,030		4,318			(670	)		3,648

8.3 Other Joint Venture disclosures

	Cash and cash equivalents				Other current financial liabilities				Other non-current financial liabilities
Joint Venture	As of December 31, 2021		As of December 31, 2020		As of December 31, 2021		As of December 31, 2020		As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		-		30		-		-		-		-
SQM Vitas Fzco.		4,115		4,251		-		-		-		-
SQM Vitas Brasil Agroindustria		4,132		4,065		10,416		6,820		-		-
SQM Vitas Perú S.A.C.		380		1,043		238		227		289		691
Pavoni & C. Spa		787		767		7,561		5,573		-		-
Covalent Lithium Pty Ltd.		3,858		653		980		953		-		-
Total		13,272		10,809		19,195		13,573		289		691

	Depreciation and amortization expense						Interest expense						Income tax benefit (expense)
Joint Venture	For the year ended December 31, 2021			For the year ended December 31, 2020			For the year ended December 31, 2021			For the year ended December 31, 2020			For the year ended December 31, 2021			For the year ended December 31, 2020
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		-			(394	)		-			-			-			244
SQM Vitas Fzco.		-			(1	)		(1	)		(2	)		-			-
SQM Vitas Brasil Agroindustria		(278	)		(355	)		(367	)		(656	)		(1,985	)		(34	)
SQM Vitas Perú S.A.C.		(354	)		(257	)		(311	)		(326	)		(1,692	)		(197	)
Pavoni & C. Spa		(245	)		(263	)		(459	)		(410	)		(173	)		(120	)
Covalent Lithium Pty Ltd.		(167	)		(213	)		(55	)		(18	)		343			714
Total		(1,044	)		(1,483	)		(1,193	)		(1,412	)		(3,507	)		607

8.4 Disclosure of interests in joint ventures

a) Transactions for the year ended December 31, 2021

· On February 9, 2021, two of the Company’s subsidiaries signed an agreement to terminate a dispute related to sales contracts and interest in the joint venture of Sichuan SQM Migao Chemical Fertilizers Co Ltd. Consequently, the Company received US$ 11.5 million.

b) Transactions for the year ended December 31, 2020

· SQM Vitas BV became a wholly owned subsidiary of the Company during the second quarter of 2020, through its subsidiary Soquimich European Holdings, at a cost of ThUS$ 1,276 and its name has been changed to SQM Holland. See Note 7.1.

· In the second quarter of 2020, shares held in Arpa Speciali S.R.L. were sold through SQM Pavoni & C., SpA. At a value of ThUS$ 56, which brought about a loss of ThUS$ 125. An initial installment of ThUS$ 17 was charged, leaving two pending installments of ThUS$ 20 maturing June 30, 2021 and June 30, 2022. The pending installments are classified as other accounts receivable.

· In the third quarter of 2020, shares held in Coromandel SQM India were sold through Soquimich European Holdings B.V. at a value of ThUS$ 1,604, which brought about a loss of ThUS$ 643.

· During fourth quarter of 2020, the shares in SQM Qingdao-Star Co, Ltd. were sold through SQM Industrial S.A. for ThUS$ 1,303, which brought about a gain of ThUS$ 62. As of December 31, 2020, the sale proceeds were recorded in other receivables.

· A subsequent event associated with the joint venture with Sichuan SQM Migao Chemical Fertilizers Co Ltd.. Accordingly, the effect on the statement of income for the fourth quarter of 2020 under "Other gains (losses)" is a gain of ThUS$ 7,036 on the reversal of the impairment associated with this investment.

c) Transactions for the year ended December 31, 2019

· On January 01, 2019, SQM Vitas Perú changed its functional currency from the Peruvian sol to Dollar.

8.5 Joint Ventures

In 2017, together with our subsidiary SQM Australia Pty, we entered into an agreement to acquire 50% of the assets of the Mt. Holland lithium project in Western Australia. The Mt. Holland Lithium Project consist, to design, construct and operate a mine, concentrator and refinery to produce approximately 50,000 metric tons of lithium hydroxide per year.

As of December 31, 2020, the Company had made contributions in the amount of US$ 30 million, of which, US$ 15 million was paid in favor of the partner in the project and presented as other receivables. As of March 2021, this receivable was collected when it was contributed to Mt. Holland in the Company’s name. The Company approved the investment decision referred to in Note 1.8.