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SQM and royalty: “There is no other economic activity that contributes more resources to the country”


The company will try to seek opportunities in the lithium business outside of Chile. “If we have a good opportunity, one that can create value, we will do it again”, alluding to the project that is already being promoted in Australia.

The project of royalty miner that will soon continue its proceedings in the Senate was one of the concerns that SQM addressed today Friday at the first quarter results conference.

Although he remained cautious when approaching the discussion, the general manager of the non-metallic mining company, Ricardo Ramos, was emphatic in ensuring that the company “contributes significantly to the development of the country through important factors and other contributions to the country and community”.

And he sentenced: “There is no other economic activity in Chile that contributes more resources, both in absolute terms and in percentage terms for the country“.

Regarding the debate in Congress, Ramos specified that they had no more information than that published in the press and that they sent their preliminary opinion to the different industrial and mining groups in which they participate, since they are the ones who raise the opinion of the mining industry on these issues.

“It has been a preliminary discussion and it has to be analyzed by the Senate and finally by the government,” he added.

Electoral impact

Also at the meeting there were consultations from analysts regarding the historic weekend elections that ended up messing up the national political puzzle. Asked about the nervous reaction of the stock market, at least with regard to SQM, the executive said that if the share price is revised in the last four days “we have followed the trend in some way of the Chilean stock, that is, there is no difference between where you are. “

“I am not a market analyst, much less a good political analyst, but the main investment bank in Chile has issued a very good analysis of the factors that may have affected the Chilean stock market. I think it is interesting to be able to read them”, He said.

However, he acknowledged that today there is a lot of volatility and some uncertainty. For the executive, “it is important to wait and see. It is too early to have a clear opinion on where we are moving, where the shares are located “.

Consulate in case they expected a potential increase in spending for environmental reasons and / or the tax structure due to recent political changes in Chile, Ramos assured that they will continue to advance the company’s sustainability agenda that was announced last year.

“We think that it aligns perfectly with the demand of the community in Chile and the world demand in terms of being very active with regard to environmental activities,” he said, adding that all those expenses or investments related to this agenda have already been considered.

Interest in copper

On SQM’s plans abroad, the Holland lithium project in Australia continues its march. In this regard, Ramos confirmed at the conference that they will try to find opportunities in the lithium business outside of Chile. And he sentenced: “We did it in Australia. If we have a good opportunity, an opportunity that can create value, we will do it again“.

Likewise, the executive reflected that there is a lot of interest in copper in recent months and that the mineral is going in the right direction in terms of prices, so he said he expects it to be a long-term trend.

As he explained, they carried out some internal geological activity to find some potential copper resources on earth. “We had some deals with third parties because we are looking for copper. I think it will continue. I think it will be more effective in the next six months, considering what is happening with prices. It has to be something very important in the future if we find something, but yes, we are quite active with these ideas, “he explained.



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