UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES AND EXCHANGE ACT OF 1934
Includes the free translation of the answer to Ordinary Form 02853
submitted by Sociedad Quimica y Minera de Chile S.A. to the Superintendencia de
Valores y Seguros de Chile on April 8, 2004.
SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.
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(Exact name of registrant as specified in its charter)
CHEMICAL AND MINING COMPANY OF CHILE INC.
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(Translation of registrant's name into English)
El Trovador 4285, Santiago, Chile (562) 425-2000
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(Address and phone number of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No x
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If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82___________
SQM
SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.
Santiago, April 8, 2004
Mr.
Alejandro Ferreiro Y.
Superintendent
Securities and Insurance Superintendence
Avda. Libertador Bernardo O'Higgins 1449
Santiago
Dear Mr. Superintendent.
We have received your Ordinary Form Number 02853 dated April 6, 2004.
Regarding that Form and as requested by it, we may indicate the following:
1. Sociedad Quimica y Minera de Chile S.A. ("SQM") and Distrinor
S.A. ("Distrinor") subscribed, on May 22, 2001, a Natural Gas
Supply Contract, of a "fixed nature", pursuant to which
Distrinor, among other aspects, is required to supply and sell to
SQM -for a period of 10 years beginning on June 1, 2001- all the
natural gas the Company requires for "heat generation" at its
industrial facilities located in Chile's Second Region and that
the parties have estimated to be approximately 3,850,000 million
Btu per year.
That natural gas, coming from Argentina, has been continuously
provided up until this date in the quantity and quality agreed
upon. For this year, SQM expects to continue receiving natural
gas from Distrinor in quantities similar to that bought during
2003.
2. The aforementioned Natural Gas Supply Contract sets forth clear
responsibilities and duties for both parties.
The above notwithstanding, SQM and Distrinor have held meetings
with the purpose of analyzing the public information regarding
the "natural gas restrictions on exports from Argentina" subject
and its potential effects on both SQM and Distrinor. So far, the
latter has not informed about reductions of the natural gas
supplied to SQM and, in the event of reducing the supply, the
extent of the same.
3. If faced with any reduction in its natural gas supply, SQM will
adopt the necessary measures to continue generating the heat
required by its industrial facilities located in Chile's Second
Region.
SQM's industrial equipments that use natural gas may also operate
on diesel and some of them -after certain investments- may also
operate on fuel oil. Diesel's purchase price is higher than
natural gas' and fuel oil's purchase price is lower than diesel's
and higher than natural gas'. The higher costs SQM will have to
face should natural gas supply be restricted will depend on the
volume of the reduction and the length of the period covered by
that reduction. Therefore, SQM cannot estimate the economic
impact that an eventual natural gas supply reduction might have.
However, SQM's natural gas purchases during 2003 represented
approximately 1.5% of the total costs for the year.
4. SQM has subscribed several energy and power supply contracts for
the continuous and reliable development of its industrial
operations in Chile's Second Region with the respective power
companies and they have not informed SQM about potential
restrictions on that supply.
We remain at your disposal to clarify any additional aspects that you may
deem relevant in relation to the above.
Yours truly,
Sociedad Quimica y Minera de Chile S.A.
Conf: /s/ Patricio Contesse G.
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Patricio Contesse G.
Chief Executive Officer
Cc: Santiago Stock Exchange
Brokers Stock Exchange
Electronic Stock Exchange
New York Stock Exchange
Securities and Exchange Commission
The Bank of New York
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.
Conf: /s/ Ricardo Ramos R.
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Ricardo Ramos R.
Chief Financial Officer
Date: April 8, 2004