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
a press release detailing the Company’s three-year capital expenditure plan,
issued on July 24, 2008.
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)
El
Trovador 4285, Santiago, Chile (562) 425-2000
(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
o
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 o No
x
If
"Yes"
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82_________
For
Immediate Release
SQM
ANNOUNCES DETAILS OF CAPEX PLAN FOR 2008-2010
Santiago,
Chile, July 24, 2008.- Sociedad
Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B,
SQM-A) announced its Capex Plan for the three-year period between 2008 and
2010.
The plan includes projected capital expenditures of approximately US$1 billion
over the period, including approximately US$350 million for the year 2008.
Patricio
Contesse, Chief Executive Officer of SQM, stated, “We are making significant
investments that will enable SQM to achieve further growth in its core
businesses. Our Capex Plan aims to increase production capacity across our
business lines, and especially in potassium-based products, which have become
a
key contributor to the Company’s margins. Furthermore, we are modernizing our
production processes, in order to increase SQM’s operating efficiency.”
The
primary investments considered in SQM’s three-year Capex Plan
include:
Capacity
increases for potassium-based products at the Salar de
Atacama.
The most
significant project is the increase in production capacity for potassium-based
products. Current combined capacity for potassium chloride and potassium sulfate
is around 820,000 metric tons, and SQM expects to increase the total capacity
for these products by approximately 250,000 metric tons over the next three
years.
Iodine
and nitrates capacity increases.
The
Company will invest in capacity increases for iodine and nitrates at its Nueva
Victoria and Pampa Blanca facilities over the next four years. Both of these
sectors possess vast, high-quality reserves. Currently, Nueva Victoria - located
in the Tarapacá Region of Chile - is SQM’s primary iodine production facility.
Pampa Blanca is located in the Antofagasta Region of Chile, near the Company’s
María Elena and Pedro de Valdivia facilities, and is the natural extension of
SQM’s operations at these facilities. These investments represent the first
stage of the Company’s long-term development plan for the Nueva Victoria and
Pampa Blanca sectors and should yield an increase in SQM’s installed capacity
for iodine and nitrates on the order of 25% by the end of 2012.
In
addition, today SQM presented an environmental impact assessment study for
its
Nueva Victoria operations, which included both this initial phase of capacity
expansions and future capacity expansions. The study covers a period of
approximately 30 years and considers investments of approximately US$1,033
million during that period.
New
potassium nitrate plant at Coya Sur.
The
Company is increasing its potassium nitrate production capacity by 300,000
metric tons per year, which is estimated to be operational by 3Q10. The new
plant, which will be located at the Company’s Coya Sur operations, will use
nitrate salts extracted at SQM’s Nueva Victoria and Pampa Blanca
operations.
Completion
of lithium carbonate capacity expansion.
The
Company is increasing its lithium carbonate production capacity from
approximately 30,000 metric tons per year to approximately 40,000 metric tons
per year. SQM expects to complete this project during 3Q08.
Finally,
the Company will undertake a number of other investments aimed at improving
productivity and infrastructure, such as improvements to the Company’s own
railway system, construction of a new mining camp at María Elena, and various
investments at its production facilities, including maintenance capex for the
period. In addition, during this period SQM will explore its mining properties
in order to search for potential metallic mineral resources.
These
investments will be financed primarily through SQM’s internally-generated cash
flow.
The
three-year Capex Plan SQM has announced could undergo significant variations.
The Company’s future development plans may change to include new projects and
suspend or cancel existing ones. These plans may also be revised in response
to
changes in the market conditions affecting the Company’s products. In addition,
the rising costs of raw materials and spare parts could affect the amounts
of
the investments necessary for the projects the Company currently plans to
undertake. The amounts in the Capex Plan do not include any potential future
acquisitions or joint ventures.
SQM
is an
integrated producer and distributor of specialty plant nutrients, iodine and
lithium. Its products are based on the development of high quality natural
resources that allow the Company to be a leader in costs, supported by a
specialized international network with sales in over 100 countries. SQM’s
development strategy aims to maintain and strengthen the Company’s world
leadership in its three core businesses: Specialty Plant Nutrition, Iodine
and
Lithium.
The
leadership strategy is based on the Company’s competitive advantages and on the
sustainable growth of the different markets in which it participates. SQM’s main
competitive advantages in its different businesses are:
| · |
Low production costs based on vast and high quality natural
resources.
|
| · |
Know-how and its own technological developments in its various production
processes.
|
| · |
Logistics infrastructure and high production levels that allow SQM
to have
low distribution costs.
|
| · |
High market share in all its core
products
|
| · |
International sales network with offices in more than 20 countries
and
sales in over 100 countries.
|
| · |
Synergies from the production of multiple products that are obtained
from
the same two natural resources.
|
| · |
Continuous new product development according to the specific needs
of its
different customers.
|
| · |
Conservative and solid financial position
|
For
further information, please visit our Web site, www.sqm.com,
or
contact:
Patricio
Vargas, 56-2-4252274 / patricio.vargas@sqm.com
Carolyn
McKenzie, 56-2-4252074 / carolyn.mckenzie@sqm.com
Statements
in this press release concerning the Company’s business outlook, future economic
performances, anticipated profitability, revenues, expenses, or other financial
items, anticipated cost synergies and product or service line growth, together
with other statements that are not historical facts, are “forward-looking
statements” as that term is defined under Federal Securities Laws.
Any
forward-looking statements are estimates, reflecting the best judgment of SQM
based on currently available information and involve a number of risks,
uncertainties and other factors that could cause actual results to differ
materially from those stated in such statements. Risks, uncertainties, and
factors that could affect the accuracy of such forward-looking statements are
identified in the public filing made with the Securities and Exchange
Commission, and forward-looking statements should be considered in light of
those factors.
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.
Ricardo
Ramos R.
Chief
Financial Officer
Date:
July
25,
2008