Sociedad Química y Minera de Chile (SQM) 6-K Current report (foreign)

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 financial statements and their related notes for the nine-month period ended

September 30, 2010 filed by Sociedad Química y Minera de Chile S.A. before the

Superintendencia de Valores y Seguros de Chile on November 23, 2010.

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 ¨

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.          

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82_________

On November 23, 2010, the Registrant filed with the Superintendencia de Valores y Seguros of Chile (the "SVS") a report that included information as to the Registrant's consolidated financial condition and results of operations for the nine-month period ended September 30, 2010. Attached is a summary of such consolidated financial information included in the summary and in the report filed with the Superintendencia de Valores y Seguros of Chile. This financial information was prepared on the basis of International Financial Reporting Standards (“IFRS”).

THIS REPORT IS AN ENGLISH TRANSLATION OF, AND AN INTERNATIONAL FINANCIAL REPORTING STANDARDS PRESENTATION OF, THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2010 REPORT FILED WITH THE SUPERINTENDENCIA DE VALORES Y SEGUROS (SVS) IN CHILE, AND UNLESS OTHERWISE INDICATED, FIGURES ARE IN US DOLLARS.

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the period ended

As of September 30, 2010

SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. and SUBSIDIARIES

Thousands of U.S. dollars

This document is composed of:

- Consolidated Classified Statement of Financial Position

- Interim Consolidated Statement of Comprehensive Income by function.

- Interim Consolidated Statement of Comprehensive Income

- Interim Consolidated Statement of Cash Flows

- Interim Statements of Changes in Net Shareholders’ Equity

- Explanatory Notes to the Interim Consolidated Financial Statements

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

    Sociedad Química y Minera de Chile S.A. and Subsidiaries

CONSOLIDATED CLASSIFIED STATEMENT OF FINANCIAL POSITION

ASSETS	Note N°	As of September 30 2010 ThUS$		As of December  31 2009 ThUS$		As of January 1 2009 ThUS$
Current assets
Cash and cash equivalents	6.0		615,847		530,394		303,799
Other current financial assets	9.1		77,655		75,537		21,720
Other non-financial current assets	25		25,393		34,375		41,971
Trade and other receivables, current	9.2		430,840		325,823		334,791
Trade and other receivables due from related parties, current	8.6		40,027		68,656		51,027
Inventories	7.0		639,539		630,763		540,877
Current tax assets	28.1		26,627		41,825		1,695
Total current assets			1,855,928		1,707,373		1,295,880
Non-Current Assets
Other non-current financial assets	9.1		115		113		101
Other non-financial assets, non-current	25		28,935		30,880		26,444
Non-current rights receivable	9.2		3,873		4,208		766
Trade and other receivables due from related parties, non-current	8.7		-		-		2,000
Investments accounted for using the equity method	11.0		61,926		55,185		36,934
Intangible assets other than goodwill	13.1		3,064		2,836		3,525
Goodwill	13.1		38,388		38,388		38,388
Property, plant and equipment	14.1		1,394,089		1,300,546		1,076,531
Investment property	14.4		1,381		1,405		1,436
Deferred tax assets	28		628		870		1,969
Total Non-Current Assets			1,532,399		1,434,431		1,188,094
Total Assets			3,388,327		3,141,804		2,483,974

The accompanying notes form an integral part of these interim consolidated financial statements.

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    Sociedad Química y Minera de Chile S.A. and Subsidiaries

CONSOLIDATED CLASSIFIED STATEMENT OF FINANCIAL POSITION, continued

Liabilities and Equity	Note N°	As of September  30 2010 ThUS$			As of December 31 2009 ThUS$			As of January 1 2009 ThUS$
Liabilities
Current Liabilities
Other current financial liabilities	9.4		140,697			268,855			159,120
Trade and other payables	9.5		162,328			184,195			110,802
Trade payables due to related parties. current	8.8		4,332			3,892			178
Other current provisions	18.1		13,535			18,222			9,551
Current tax liabilities	28.2		8,386			1,298			89,142
Current provision for employee benefits	16.1		34,732			16,375			22,112
Other non-financial liabilities. current	18.3		84,606			52,205			115,682
Total current liabilities			448,616			545,042			506,587
Non-current liabilities
Other non-current financial liabilities	9.4		1,154,703			1,024,350			511,342
Other non-current accounts payable	9.5		-			187			398
Other long-term provisions	18.2		3,500			3,500			3,181
Deferred tax liabilities	28.4		79,557			53,802			27,188
Non-current provisions for employee benefits	16.1		27,372			50,473			35,059
Total non-current liabilities			1,265,132			1,132,312			577,168
Total Liabilities			1,713,748			1,677,354			1,083,755
Equity
Issued capital			477,386			477,386			477,386
Retained earnings			1,163,970			951,173			888,369
Other reserves			(14,178	)		(9,806	)		(12,077	)
Equity attributable to the owners of the controlling entity			1,627,178			1,418,753			1,353,678
Non-controlling interest			47,401			45,697			46,541
Total Equity			1,674,579			1,464,450			1,400,219
Total liabilities and equity			3,388,327			3,141,804			2,483,974

The accompanying notes form an integral part of these interim consolidated financial statements.

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    Sociedad Química y Minera de Chile S.A. and Subsidiaries

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME BY FUNCTION

		From January to September						From July to September
	Note  N°	2010 ThUS$			2009 ThUS$			2010 ThUS$			2009 ThUS$
Revenue	20		1,324,736			1,052,169			459,468			383,781
Cost of sales			(870,364	)		(644,672	)		(308,297	)		(252,646	)
Gross profit			454,372			407,497			151,171			131,135
Other income by function	27		5,617			5,405			1,957			2,923
Administrative expenses			(55,455	)		(53,436	)		(19,389	)		(18,232	)
Other expenses by function	27		(16,255	)		(18,936	)		(6,344	)		(2,944	)
Other gains (losses)	27		(5,870	)		(1,652	)		698			(1,709	)
Finance income			6,501			10,093			3,647			2,233
Finance expenses	22		(26,534	)		(23,141	)		(8,626	)		(7,391	)
Equity in gains (losses) of associates and joint ventures accounted for using the equity method			8,299			1,712			3,301			190
Foreign currency translation differences	23		(6,875	)		(8,528	)		(1,523	)		(2,259	)
Profit (loss) before income tax			363,800			319,014			124,892			103,946
Income tax expense	28.4		(84,359	)		(60,198	)		(28,330	)		(18,004	)
Profit (loss) from continuing operations			279,441			258,816			96,562			85,942
Profit (loss)			279,441			258,816			96,562			85,942
Gain (loss) attributable to
Gain (loss) attributable to the owners of the parent			276,325			259,414			94,803			85,215
Gain (loss) attributable to non-controlling interest			3,116			(598	)		1,759			727
Profit (loss) for the period			279,441			258,816			96,562			85,942

The accompanying notes form an integral part of these interim consolidated financial statements.

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    Sociedad Química y Minera de Chile S.A. and Subsidiaries

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME BY FUNCTION, continued

	From January to September				From July to September
	2010		2009		2010		2009
	ThUS$		ThUS$		ThUS$		ThUS$
Earnings per share
Common shares
Basic earnings per share (US$ per share)		1.0499		0.9856		0.3602		0.3238
Basic earnings per share (US$ per share) from continuing operations		1.0499		0.9856		0.3602		0.3238
Diluted common shares
Diluted earnings per share (US$ per share)		1.0499		0.9856		0.3602		0.3238
Diluted earnings per share (US$ per share) from continuing operations		1.0499		0.9856		0.3602		0.3238

The accompanying notes form an integral part of these interim consolidated financial statements.

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    Sociedad Química y Minera de Chile S.A. and Subsidiaries

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	January to September						July to September
	2010			2009			2010			2009
Statement of comprehensive income	ThUS$			ThUS$			ThUS$			ThUS$
Profit (loss) for the period		279,441			258,816			96,562			85,942
Other comprehensive income components before foreign currency translation difference
Gains (losses) from foreign currency translation differences. before tax		588			878			943			(155	)
Other comprehensive income before taxes and foreign currency translation differences		588			878			943			(155	)
Cash flow hedges
Gains (losses) from cash flow hedges before tax		(5,683	)		12,872			(10,240	)		1,647
Other comprehensive income before tax and cash flow hedges		(5,683	)		12,872			(10,240	)		1,647
Other comprehensive income components. net of tax		(5,095	)		13,750			(9,297	)		1,492
Income tax related to components of other comprehensive income
Income tax related to other comprehensive income cash flow hedges		966			(2,188	)		1,740			(280	)
Addition of income tax related to other comprehensive income components		966			(2,188	)		1,740			(280	)
Other comprehensive income		(4,129	)		11,562			(7,557	)		1,212
Total comprehensive income		275,312			270,378			89,005			87,154
Comprehensive income attributable to
Comprehensive income attributable to the parent’s owners		271,953			270,939			87,246			86,391
Comprehensive income attributable to non-controlling interest		3,359			(561	)		1,759			763
Total comprehensive income		275,312			270,378			89,005			87,154

The accompanying notes form an integral part of these interim consolidated financial statements.

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    Sociedad Química y Minera de Chile S.A. and Subsidiaries

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

Statement of cash flows	9/30/2010 ThUS$			9/30/2009 ThUS$
Cash flows provided by (used in) operating activities
Profit (loss)		279,441			258,816
Adjustment due to reconciliation of profit (loss)
Adjustment for decreases (increases) in inventories		(5,926	)		(111,738	)
Adjustment for decreases (increases) in trade receivables		(48,459	)		5,215
Adjustment for decreases (increases) in other receivables from operating activities		2,841			(15,328	)
Adjustment for decreases (increases) in trade payables		(63,772	)		(45,718	)
Adjustment for decreases (increases) in other payables related to operating activities		(21,413	)		(106,683	)
Adjustment for depreciation and amortization		103,293			101,448
Adjustment for provisions		6,705			38,034
Adjustments for unrealized gains (losses) in foreign translation		6,875			8,528
Adjustment for undistributed gains from equity-accounted associates		(8,299	)		(1,714	)
Other adjustments for entries other than cash		155,304			109,933
Other adjustments for which the effects on cash are cash flows from investing or financial activities		(430	)		(196	)
Total gains (losses) reconciling adjustments		126,719			(18,219	)
Interest paid		(7,160	)		(34,236	)
Net cash flows provided by (used in) operating activities		399,000			206,361
Cash flows provided by (used in) investing activities
Other payments to acquire interest in joint ventures		(3,500	)		-
Proceeds from the sale of property, plant and equipment		1,333			3,850
Purchases of property, plant and equipment		(235,552	)		(270,236	)
Cash advances and loans granted to third parties		983			(1,662	)
Proceeds from future. forward. option and swap financial contracts		15,043			-
Net cash flows provided by (used in) investing activities		(221,693	)		(268,048	)

The accompanying notes form an integral part of these interim consolidated financial statements.

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    Sociedad Química y Minera de Chile S.A. and Subsidiaries

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS, continued

Cash flows provided by(used in) financing activities
Amounts received from the issuance of other equity instruments	250,000		372,347
Amounts received from long-term loans	224,000		270,809
Amounts received from short-term loans	-		-
Total amounts received from loans	224,000		270,809
Payments of loans	(528,040	)	(160,000	)
Dividends paid	(64,882	)	(243,976	)
Other cash inflows (outflows)	(6,753	)	(7,234	)
Net cash flows provided by (used in) financing activities	(125,675	)	231,946
Net increase (decrease) in cash and cash equivalents before the effect of changes in exchange rates	51,632		170,259
Effects of variation in exchange rate on cash and cash equivalents	33,821		14,614
Net increase (decrease) in cash and cash equivalents	85,453		184,873
Cash and cash equivalents at beginning of the period	530,394		303,799
Cash and cash equivalents at the end of the period	615,847		488,672

The accompanying notes form an integral part of these interim consolidated financial statements.

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    Sociedad Química y Minera de Chile S.A. and Subsidiaries

INTERIM STATEMENTS OF CHANGES IN NET SHAREHOLDERS’ EQUITY

	Issued capital		Foreign currency translation difference reserves		Cash flow hedge reserves			Other reserves			Subtotal Other reserves			Retained earnings			Equity attributable to the Parent Company's owners			Non-controlling interest			Total equity
Beginning balance, current period: January 1, 2010		477,386		1,234		(7,984	)		(3,056	)		(9,806	)		951,173			1,418,753			45,697			1,464,450
Reconfirmed Beginning balance		477,386		1,234		(7,984	)		(3,056	)		(9,806	)		951,173			1,418,753			45,697			1,464,450
Profit (loss) for the period		-		-		-			-			-			276,325			276,325			3,116			279,441
Other comprehensive income		-		345		(4,717	)		-			(4,372	)		-			(4,372	)		243			(4,129	)
Comprehensive income		-		345		(4,717	)		-			(4,372	)		276,325			271,953			3,359			275,312
Dividends		-		-		-			-			-			(63,528	)		(63,528	)		-			(63,528	)
Increase (decrease) for transfers and other changes		-		-		-			-			-			-			-			(1,655	)		(1,655	)
Changes in equity		-		345		(4,717	)		-			(4,372	)		212,797			208,425			1,704			210,129
Ending balance, current period: September 30, 2010		477,386		1,579		(12,701	)		(3,056	)		(14,178	)		1,163,970			1,627,178			47,401			1,674,579

The accompanying notes form an integral part of these interim consolidated financial statements.

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    Sociedad Química y Minera de Chile S.A. and Subsidiaries

INTERIM STATEMENTS OF CHANGES IN NET SHAREHOLDERS’ EQUITY, continued

	Issued capital		Foreign currency translation difference reserves		Cash flow hedge reserves			Other reserves			Subtotal Other reserves			Retained earnings			Equity attributable to the Parent Company's owners			Non-controlling interest			Total equity
Beginning balance, current period: January 1, 2009		477,386		-		(7,891	)		(4,186	)		(12,077	)		888,369			1,353,678			46,541			1,400,219
Reconfirmed Beginning balance		477,386		-		(7,891	)		(4,186	)		(12,077	)		888,369			1,353,678			46,541			1,400,219
Profit (loss) for the period		-		-		-			-			-			259,414			259,414			(598	)		258,816
Other comprehensive income		-		842		10,684			-			11,526			-			11,526			36			11,562
Comprehensive income		-		842		10,684			-			11,526			259,414			270,940			(562	)		270,378
Dividends		-		-		-			-			-			(175,493	)		(175,493	)		-			(175,493	)
Increase (decrease) for transfers and other changes		-		-		-			-			-			-			-			(2,626	)		(2,626	)
Changes in equity		-		842		10,684			-			11,526			83,921			95,447			(3,188	)		92,259
Ending balance, current period: September 30, 2009		477,386		842		2,793			(4,186	)		(551	)		972,290			1,449,125			43,353			1,492,478

The accompanying notes form an integral part of these interim consolidated financial statements.

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    Sociedad Química y Minera de Chile S.A. and Subsidiaries

Index of Interim Consolidated Financial Statements

Note No.			Page
	Interim Consolidated Classified Statements of Financial Position		1
	Interim Consolidated Statement of Comprehensive Income by function		3
	Interim Consolidated Statement of Comprehensive Income		5
	Interim Consolidated Statements of Cash Flows		6
	Interim Statements of Changes in Net Equity		8
	Notes  to the Interim Consolidated Financial Statements
1	Company’s Identification and Activity		16
2	Bases of presentation of the Interim Consolidated  Financial Statements  and accounting criteria applied
	2.1	Accounting period	19
	2.2	Basis of preparation	20
	2.3	Transactions in foreign currency	22
	2.4	Basis of consolidation	23
	2.5	Basis of conversion.	27
	2.6	Responsibility for the information and estimates made	29
	2.7	Financial information by operating segment	30
	2.8	Property, plant and equipment	30
	2.9	Investment properties	32
	2.10	Inventories.	33
	2.11	Trade and other receivables	34
	2.12	Revenue recognition	35
	2.13	Investments recognized using the equity method	36
	2.14	Corporate taxes	37
	2.15	Earnings per share	38
	2.16	Impairment in the value of non-financial assets	39
	2.17	Financial assets	40
	2.18	Financial liabilities	41
	2.19	The environment	43
	2.20	Minimum dividend	43
	2.21	Financial debt obligations	43
	2.22	Trade payables	44
	2.23	Statement of cash flows	44
	2.24	Staff severance indemnity liabilities	45
	2.25	Financial derivatives and hedging operations	46
	2.26	Lease	48
	2.27	Prospecting expenses	49
	2.28	Other provisions	49
	2.29	Compensation plans	50

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    Sociedad Química y Minera de Chile S.A. and Subsidiaries

Index of Interim Consolidated Financial Statements, continued

Note No.			Page
	2.30	Good and service insurance expenses	51
	2.31	Intangibles assets	51
	2.32	Research and development	52
	2.33	Classification of balances under current and non-current	53
3	First adoption of International Financial Reporting Standards
	Application of  IFRS		54
	Reconciliation of net equity from Generally Accepted Accounting Principles in Chile to International Financial Reporting Standards as of January 1, 2009		56
	Reconciliation of net equity from Generally Accepted Accounting Principles in Chile to International Financial Reporting Standards as of December 31,2009		56
	Reconciliation of profit for the period from Generally Accepted Accounting Principles in Chile to Information reporting Financial Standards as of December 31, 2009		57
	Explanation of the transition to IFRS		58
4	Financial risk management
	4.1	Risk management policy	62
	4.2	Risk factors	63
	4.3	Risk measurement	66
5	Changes in estimates and accounting policies (uniformity).		67
6	Cash and cash equivalents
	6.1	Classes of cash and cash equivalent	68
	6.2	Other cash and cash equivalents	68
	6.3	Information on cash and cash equivalents by currency	69
	6.4	Amount of significant cash balances not available	70
	6.5	Detail of time deposits	71
7	Inventories		72
8	Related parties: disclosures
	8.1	Information for disclosure on related parties	73
	8.2	Relationships between the parent company and the entity	73
	8.3	Intermediate parent company and companies controlled by SQM S.A. which publicly issue financial statements	74
	8.4	Detailed identification of the link between the parent company and the subsidiary	74
	8.5	Detail of related parties and transactions with related parties	75
	8.6	Trade and other receivables due from related parties, current	77
	8.7	Trade and other receivables due from related parties, non-current	77
	8.8	Trade and other payables due to related parties, current	78
	8.9	Board of Directors and senior management	78

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Index of Interim Consolidated Financial Statements, continued

Note No.			Page
9	Financial instruments
	9.1	Classes of other financial assets	82
	9.2	Trade and other receivables	82
	9.3	Current hedging assets	85
	9.4	Financial liabilities	86
	9.5	Trade and other payables	98
	9.6	Financial liabilities at fair value through profit or loss	99
	9.7	Financial asset and liability categories	100
	9.8	Financial assets pledged as guarantee	101
	9.9	Estimated fair value of financial instruments and derivative financial instruments	101
	9.10	Nature and scope of risks arising from financial instruments	103
10	Investments and information for disclosure  on investments in subsidiaries		103
11	Investments in associated companies
	11.1	Investments in associates recognized using the equity method of accounting ...	110
	11.2	Assets, liabilities, revenues and ordinary expenses of associates	111
	11.3	Detail of investments in associates	112
12	Joint ventures
	12.1	Policy for the accounting for joint ventures in a Parent Company’s separate financial statements	113
	12.2	Disclosures on interest in joint ventures	113
	12.3	Detail of assets. liabilities and profit or loss of significant investments in joint ventures by company	114
	12.4	Detail of the amount of gain (loss) net of investments in significant joint ventures by company	115
13	Intangible assets and goodwill
	13.1	Balances	116
	13.2	Disclosures on intangible assets and goodwill	116
14	Property, plant and equipment
	14.1	Classes of property, plant and equipment	120
	14.2	Reconciliation of changes in property. plant and equipment by class	121
	14.3	Detail of property. plant and equipment pledged as guarantees	123
	14.4	Additional information	123
15	Leases
	15.1	Disclosures on finance leases, lessee	125
	15.2	Investment property in finance leases	125
	15.3	Reconciliation of finance lease minimum payments, lessee	125

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Index of Interim Consolidated Financial Statements, continued

Note No.			Page
16	Employee Benefits
	16.1	Provisions for employee benefits	126
	16.2	Policies on defined benefit classes	127
	16.3	Other long-term benefits	128
	16.4	Employee post-retirement obligations	130
17	Disclosures on net equity
	17.1	Disclosures on issued capital	132
	17.2	Disclosures on preferred share capital	132
	17.3	Dividend policy	134
	17.4	Provisional dividends	135
18	Provisions and other non-financial liabilities
	18.1	Classes of provisions	135
	18.2	Description of other provisions	136
	18.3	Other liabilities	136
	18.4	Movements in provisions	137
	18.5	Detail of main classes of provisions	139
19	Contingencies and restrictions
	19.1	Lawsuits or other relevant events	140
	19.2	Restrictions	143
	19.3	Commitments	143
	19.4	Restricted or pledged cash	143
	19.5	Sureties obtained from third parties	144
	19.6	Indirect guarantees	145
20	Revenue		146
21	Earnings per share		146
22	Loan costs		147
23	Effect of variations in foreign currency exchange rates		148
24	The Environment
	24.1	Disclosures on disbursements related to the environment	149
	24.2	Detail of information on disbursements related to the environment	150
	24.3	Description of each project indicating whether these are in process or have been finished	161
25	Other current and non-current non-financial assets		166

13

    Sociedad Química y Minera de Chile S.A. and Subsidiaries

Index of Interim Consolidated Financial Statements, continued

Note No.			Page
26	Operating segments
	26.1	Operating segments	168
	26.2	Statements of comprehensive income classified by operating segment based on product groups	169
	26.3	Assets and liabilities by operating segment based on product groups	171
	26.4	Disbursements of the segment’s non-cash assets	173
	26.5	Information on products and services for external customers	174
	26.6	Information on geographical areas	176
	26.7	Revenue from external customers, classified by geographical area	176
	26.8	Non-current assets classified by geographical area	177
	26.9	Information on the main customers	178
	26.10	Property,  plant and equipment classified by geographical areas	179
27	Other revenue. other expenses by function and other gains or losses		181
28	Income and deferred taxes
	28.1	Current tax receivables	182
	28.2	Current tax payables	182
	28.3	Tax earnings	182
	28.4	Income and deferred taxes	183
29	Disclosures on the effects of variations in foreign currency exchange rates		194
30	Asset value impairment		200
31	Events occurred subsequent to the reporting date		201

14

    Sociedad Química y Minera de Chile S.A. and Subsidiaries

Notes to the Interim Consolidated Financial

Statements

As of September 30, 2010

Sociedad Química y Minera de Chile S.A.

And Subsidiaries

15

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 1 - Identification and business of Sociedad Química y Minera de Chile S.A. and Subsidiaries

Historic Background

Sociedad Química y Minera de Chile S.A. (the “Company”) is an open stock corporation organized under the laws in the Republic of Chile. The Company was constituted by public deed issued on 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 Business Registry of Santiago, on page 4,537 Nº 1,992. The Parent Company is located at El Trovador 4285, 6th Floor, Las Condes, Santiago, Chile. Its phone No. is (56-2) 425-2000.

The Company is registered with the Securities Registry of the Chilean Superintendence of Securities and Insurance (SVS) under No. 0184 dated March 18. 1983 and is subject to the inspection of the SVS.

Our products are divided into five main categories, as follows:

Specialty Plant Nutrition: Products in this business line are niche fertilizers used in specialty crops. This business is characterized by being closely related to its customers to which it has specialized staff who provide expert advisory in best practices for fertilization according to each type of crop, soil and climate. Potassium derived fertilizers, and in particular potassium nitrate, play an important in crop development, and they also improve post-harvest shelf-life, quality, flavor and fruit color. Products in this business line include potassium nitrate, which is sold in multiple grades and as a part of other specialty mixtures, sodium nitrate and sodium potassium nitrate, and more than 200 specialty blends.

Iodine: SQM is the largest producer of iodine, a product widely used in a variety of industries such as the pharmaceutical, technological and health/nutrition. During  the 8 years prior to the economic crisis, demand for iodine grew between 6% and 7% per year mainly due to its use in x ray contrast media and polarizing film for LCD displays. This trend should return to the industry in the short-term.

Lithium: SQM’s Lithium is widely used in rechargeable batteries for cell phones, cameras and notebooks. The lithium sale has grown between an annual average of 7% to 8% in the last 10 years, not considering the recent world crisis, in which the overall consumption was significantly reduced. SQM is the worldwide leader in the production and sale of lithium, which is forecasted with interesting growth in their demand which should be similar to the last decade. Through the preparation of products based on lithium, SQM provides significant raw material to face great challenges such as the efficient use of energy and raw material.  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

16

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 1 - Identification and business of Sociedad Química y Minera de Chile S.A. and Subsidiaries, continued

Industrial Chemicals: Industrial chemicals are products used as supplies for a number of production processes. SQM participates in this line of business during 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 widely used in countries as Spain and the United States in their search for decreasing CO2 emissions

Potassium: The potassium is a primary essential macro-nutrient, and even though does not form part of the plant’s structure, has a significant role for the developing of its basic functions, validating the quality of a crop, increasing post-crop life, improving the crop flavor, its amount in vitamins and its physical appearance. Within this business line, SQM has also potassium chlorate and potassium sulfate, both extracted from the salt layer located under the Atacama Salar (the Atacama Saltpeter Deposit.) In this business line SQM has focused a significant part of it investments plan, allowing a significantly increase in the Company’s production levels in the last 2 years.

Employees

As of September 30, 2010 and December 31, 2009 we had employees as detailed below:

	9/30/2010		12/31/2009
Employees in Chile		3,931		4,161
Employees elsewhere		207		226
Permanent employees		4,138		4,387

17

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 1- Identification and business of Sociedad Química y Minera de Chile S.A. and Subsidiaries, continued

Majority shareholders

The table below establishes certain information about the beneficial property of Series A and Series B shares of SQM as of September 30, 2010 and as of December 31, 2009.  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 registered by the individuals indicated below with the Superintendence of Securities and Insurance (SVS) and the Chilean Stock Exchange.

Shareholder as of  9/30/2010	Number of Series A shares with ownership		% of Series A shares			Number of Series B shares with ownership		% of Series B shares			Total % of shares
Sociedad de Inversiones Pampa Calichera S.A.(*)		57,934,256		40.56	%		8,493,774		7.06	%		25.24	%
Inversiones El Boldo Limitada		44,679,453		31.28	%		17,643,419		14.66	%		23.68	%
The Bank of New York		-		0.00	%		48,055,973		39.92	%		18.26	%
Inversiones RAC Chile Limitada		19,200,242		13.44	%		2,699,773		2.24	%		8.32	%
Inversiones Global Mining (Chile) Limitada (*)		13,798,539		9.66	%		-		0.00	%		5.24	%
Banchile Corredores de Bolsa S.A.		131,158		0.09	%		4,478,744		3.72	%		1.75	%
Inversiones La Esperanza Limitada		3,693,977		2.59	%		-		0.00	%		1.40	%
Banco Itau on behalf of investors		-		0.00	%		2,849,076		2.37	%		1.08	%
AFP Provida S.A.		-		0.00	%		2,616,702		2.17	%		0.99	%
Larrain Vial S.A. Corredora de Bolsa		48,191		0.03	%		2,366,698		1.97	%		0.92	%

(*) Total Pampa Group  30.48%

Shareholder as of 12/31/2009	Number of Series A shares with ownership		% of Series A shares			Number of Series B shares with ownership		% of Series B shares			Total % of shares
Sociedad de Inversiones Pampa Calichera S.A. (*)		57,934,256		40.56	%		7,544,215		6.27	%		24.88	%
Inversiones El Boldo Limitada		44,679,453		31.28	%		17,643,419		14.66	%		23.68	%
The Bank of New York		-		-			55,734,253		46.30	%		21.18	%
Inversiones RAC Chile Limitada		19,200,242		13.44	%		2,699,773		2.24	%		8.32	%
Inversiones Global Mining (Chile) Limitada (*)		9,993,168		7.00	%		-		-			3.80	%
Banchile Corredores de Bolsa S.A.		123,318		0.09	%		5,326,662		4.42	%		2.07	%
Bolsa de Comercio de Santiago (the Santiago Stock Exchange)		3,805,371		2.66	%		729,421		0.61	%		1.72	%
Inversiones La Esperanza Limitada		3,693,977		2.59	%		-		-			1.40	%
AFP Provida S.A.		-		-			2,900,035		2.41	%		1.10	%
Banco Itau on behalf of investors		-		-			2,242,292		1.86	%		0.85	%

(*) Total Pampa Group  28.68%

18

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied

2.1  Accounting period

These interim consolidated financial statements cover the following period:

- Interim Consolidated Statements of financial position for the period ended as of September 30, 2010 and the year ended as of December 31, 2009.

- Interim consolidated statements of changes in net equity for the period ended as of September 30, 2010 and 2009.

- Interim consolidated statements of comprehensive income for the period between January 1 and September 30, 2010 y 2009, respectively

- Interim consolidated statements of cash flows, indirect method for the period ended as of September 30, 2010 and 2009.

19

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

2.2  Basis of preparation of interim consolidated financial statements

Interim and annual 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 requirements of the Superintendence of Securities and Insurance.

These interim and annual 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 interim and annual accounts comply with each IFRS in force at their date of presentation.

For comparative purposes, the Company’s statement of financial position as of 12/31/2009 and the Company’s Income statement as of 9/30/2009 haven been converged from Chilean GAAP to IFRS.

20

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

a) Accounting pronouncements

At the date of these interim consolidated financial statements, the following accounting pronouncements had been issued by the IASB but their application was not compulsory:

	New standards	Mandatory application beginning on
IFRS 9	Financial instruments	January 1, 2013

	Improvements and amendments	Mandatory application beginning on
IFRS 3	Business Combinations	January 1, 2011
IFRS 7	Financial Instruments: Disclosures	January 1, 2011
IAS 1	Presentation of Financial Statements	January 1, 2011
IAS 24	Related parties	January 1, 2011
IAS 27	Consolidated and Separate Financial Statements	January 1, 2011
IAS 32	Financial Instruments: Presentation	January 1, 2011
IAS 34	Interim financial information	January 1, 2011

The Company’s management believes the adoption of these standards, amendments and interpretations described above will not have any significant impact on the Company’s interim consolidated financial statements in their first-application period.

21

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

2.3 Transactions in foreign currency

(a) Functional and presentation currency

The Company’s interim consolidated financial statements are presented in United States dollars, 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 U.S. dollar.

The interim consolidated financial statements are presented in thousands of U.S. dollars with no decimals.

(b) Transactions and balances

Transaction balances denominated in a currency other than the functional currency (U.S. dollar) are converted using the exchange rate in force of the functional currency at the trade date. Monetary assets and liabilities denominated in a foreign currency are converted at the exchange rate of the functional currency prevailing at the closing date of the consolidated statement of financial position. All differences are recorded with a charge or credit to profit for the period, except if they are deferred in net equity.

Changes in the fair value of monetary titles denominated in foreign currency classified as available-for-sale are analyzed between translation differences resulting from changes in the amortized cost of the title and other changes in the amount of the title in the accounting records. Translation differences are recognized in profit or loss for the year or period, as applicable and other changes in the amount in the accounting records are recognized in net equity.

Foreign currency translation differences on non-monetary entries such as equity instruments held at fair value through profit or loss are presented as part of the gain or loss in fair value. Foreign currency translation differences on non-monetary entries are included in net equity in the revaluation reserve.

22

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

(c) Group entities

The profit or loss, assets and liabilities of all those entities with a currency other than the presentation currency are converted to the presentation currency as follows:

- Assets and liabilities are converted at the closing date exchange rate on the date of the statement of financial position.

- Revenue and expenses in each profit or loss account are converted at average exchange rates.

- All resulting foreign currency exchange differences are recognized as a component separate from net equity.

In consolidation, foreign currency exchange differences which arise from the conversion of a net investment in foreign entities and of loans and other instruments denominated in foreign currency designated as hedging for those investments are taken to net equity.  At the disposal date, these exchange differences are recognized in the statement of comprehensive income as part of the loss or gain from the sale.

2.4 Basis of Consolidation

(a) Subsidiaries

Subsidiaries are all those entities on which Sociedad Química y Minera de Chile S.A. has the control to lead the financial and operating policies, which, in general, is accompanied by participation greater than half the voting rights. Subsidiaries are consolidated from the date in which control is transferred to the Company and are excluded from consolidation on the date in which this control ceases to exist.

In order to recognize the acquisition of an investment, the Company uses the acquisition method. Under this method, the acquisition cost is the fair value of assets delivered, of equity instruments issued and of liabilities incurred or assumed at the exchange date plus costs directly attributable to acquisition. Identifiable assets acquired and identifiable liabilities and contingencies assumed in a business combination are initially stated at their fair value at the acquisition date regardless of the scope of minority interest. The excess in acquisition cost over the fair value of the participation in identifiable net assets acquired is recognized as goodwill.

23

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

Companies included in consolidation:

				Ownership interest
		Country of	Functional	9/30/2010						9/30/2009
TAX ID No.	Foreign subsidiaries	origin	currency	Direct		Indirect		Total		Total
Foreign	Nitratos Naturais Do Chile Ltda.	Brazil	US$		0.0000		100.0000		100.0000		100.0000
Foreign	Nitrate Corporation Of Chile Ltd.	United Kingdom	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM North America Corp.	USA	US$		40.0000		60.0000		100.0000		100.0000
Foreign	SQM Europe N.V.	Belgium	US$		0.8600		99.1400		100.0000		100.0000
Foreign	Soquimich S.R.L. Argentina	Argentina	US$		0.0000		100.0000		100.0000		100.0000
Foreign	Soquimich European Holding B.V.	The Netherlands	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM Corporation N.V.	Dutch Antilles	US$		0.0001		99.9999		100.0000		100.0000
Foreign	SQI Corporation N.V.	Dutch Antilles	US$		0.0159		99.9841		100.0000		100.0000
Foreign	SQM Comercial De Mexico S.A. De C.V.	Mexico	US$		1.0000		99.0000		100.0000		100.0000
Foreign	North American Trading Company	USA	US$		0.0000		100.0000		100.0000		100.0000
Foreign	Administración Y Servicios Santiago S.A. De C.V.	Mexico	US$		0.0200		99.9800		100.0000		100.0000
Foreign	SQM Peru S.A.	Peru	US$		0.9800		99.0200		100.0000		100.0000
Foreign	SQM Ecuador S.A.	Ecuador	US$		0.0040		99.9960		100.0000		100.0000
Foreign	SQM Nitratos Mexico S.A. De C.V.	Mexico	US$		0.0000		51.0000		51.0000		51.0000
Foreign	SQMC Holding Corporation L.L.P.	USA.	US$		0.1000		99.9000		100.0000		100.0000
Foreign	SQM Investment Corporation N.V.	Dutch Antilles	US$		1.0000		99.0000		100.0000		100.0000
Foreign	SQM Brasil Limitada	Brazil	US$		3.0100		96.9900		100.0000		100.0000
Foreign	SQM France S.A.	France	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM Japan Co. Ltd.	Japan	US$		1.0000		99.0000		100.0000		100.0000
Foreign	Royal Seed Trading Corporation A.V.V.	Aruba	US$		1.6700		98.3300		100.0000		100.0000
Foreign	SQM Oceania Pty Limited	Australia	US$		0.0000		100.0000		100.0000		100.0000
Foreign	Rs Agro-Chemical Trading A.V.V.	Aruba	US$		98.3300		1.6700		100.0000		100.0000
Foreign	SQM Indonesia	Indonesia	US$		0.0000		80.0000		80.0000		80.0000
Foreign	SQM Virginia L.L.C.	USA	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM Venezuela S.A.	Venezuela	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM Italia SRL	Italy	US$		0.0000		100.0000		100.0000		100.0000
Foreign	Comercial Caiman Internacional S.A.	Cayman Islands	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM Africa Pty.	South Africa	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM Lithium Specialties LLC	USA	US$		0.0000		100.0000		100.0000		100.0000
Foreign	Fertilizantes Naturales S.A.	Spain	US$		0.0000		66.6700		66.6700		66.6700
Foreign	Iodine Minera B.V.	The Netherlands	US$		0.0000		100.0000		100.0000		100.0000
Foreign	SQM Agro India Pvt. Ltd.	India	US$		0.0000		100.0000		100.0000		0.00000
Foreign	SQM Beijin Comercial Ltd.	China	US$		0.0000		100.0000		100.0000		0.00000

24

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

Companies included in consolidation:

				Ownership interest
		Country of	Functional	9/30/2010						9/30/2009
TAX ID No.	Domestic subsidiaries	origin	currency	Direct		Indirect		Total		Total
96.801.610-5	Comercial Hydro  S.A.	Chile	Chilean peso		0.0000		60.6382		60.6382		60.6382
96.651.060-9	SQM Potasio S.A.	Chile	US$		99.9974		0.0000		99.9974		99.9974
96.592.190-7	SQM Nitratos S.A.	Chile	US$		99.9999		0.0001		100.0000		100.0000
96.592180-K	Ajay SQM Chile S.A.	Chile	US$		51.0000		0.0000		51.0000		51.0000
86630200-6	SQMC Internacional  Ltda.	Chile	Chilean peso		0.0000		60.6382		60.6382		60.6382
79947100-0	SQM Industrial S.A.	Chile	US$		99.9954		0.0046		100.0000		100.0000
79906120-1	Isapre Norte Grande Ltda.	Chile	Chilean peso		1.0000		99.0000		100.0000		100.0000
79876080-7	Almacenes y Depósitos Ltda.	Chile	Chilean peso		1.0000		99.0000		100.0000		100.0000
79770780-5	Servicios Integrales de Tránsitos y Transferencias S.A.	Chile	US$		0.0003		99.9997		100.0000		100.0000
79768170-9	Soquimich Comercial S.A.	Chile	US$		0.0000		60.6383		60.6383		60.6383
79626800-K	SQM Salar S.A.	Chile	US$		18.1800		81.8200		100.0000		100.0000
78602530-3	Minera Nueva Victoria S.A.	Chile	US$		99.0000		1.0000		100.0000		100.0000
78053910-0	Proinsa Ltda.	Chile	Chilean peso		0.0000		60.5800		60.5800		60.5800
76534490-5	Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.	Chile	Chilean peso		0.0000		100.0000		100.0000		100.0000
76425380-9	Exploraciones Mineras S.A.	Chile	US$		0.0100		99.9900		100.0000		100.0000
76064419-6	Agrorama Callegari Ltda. (*)	Chile	Chilean peso		0.0000		42.4468		42.4468		0.0000

(*) Agrorama Callegari Ltda. was consolidated given that the Company has the control through the subsidiary Soquimich Comercial S.A

Subsidiaries are consolidated using the global integration method, including in the interim financial statements all their assets, liabilities, revenue, expenses and cash flows upon making the respective adjustments and eliminations of intragroup operations.

The results from dependant companies acquired or disposed of during the year are included in consolidated income statement accounts from the effective date of acquisition or up to the effective date of disposal, as applicable.

Interest of minority partners or shareholders represents the part which can be assigned to them of own funds and of results as of September 30 ,2010 and December 31, 2009 of those companies which are consolidated using the global integration method and are presented as “Net equity from minority shareholders” in total net shareholders’ equity of the attached interim consolidated statement of financial position and in line “Profit or loss from minority shareholders” in the attached consolidated statement of comprehensive income.

25

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

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 interim consolidated financial statements.

- Profit or loss account entries using the average exchange rate for the year.

- Net equity is stated at the historical exchange rate prevailing at acquisition date (or at the average exchange rate for the period in which it was generated both for the case of retained earnings and for contributions made), as applicable.

Foreign currency translation differences which arise from the conversion of financial statements are recorded in the account “Foreign currency translation differences" within net equity.

Foreign currency translation differences generated prior to January 1, 2009 have been transferred to the account “Reserves” in equity when the Company at the date of the first application of IFRS has invoked the exception included in IFRS 1 for the convergence of the financial statements prepared in accordance with generally accepted accounting principles in Chile to IFRS.

All balances and transactions between companies consolidated using the global integration method have been eliminated during the consolidation process.

(b) Affiliated or associated companies

The affiliated or associated companies are all those entities on which significant influence is exercised but which are not controlled by the Company, which is, in general, accompanied by participation between 20% and 50% of voting rights. Investments in affiliated or associated companies are recognized in accounting using the equity method and are initially recognized at cost. The Group’s investment in affiliated or associated companies includes goodwill (net of any loss from accumulated impairment) identified in acquisition.

26

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

The equity in losses or gains subsequent to the acquisition of its affiliated or associated companies is recognized in profit or loss on an accrual basis and its participation in movements subsequent to the acquisition in reserves is recognized under Other reserves within Equity. When the equity in losses of an affiliated or associated company is equal to or greater than its equity in this affiliated or associated company no additional losses are recognized unless the company has incurred obligations or made payments in the name of the affiliated or associated company.

Unrealized gains from transactions with affiliated or associated companies are eliminated in consideration of the ownership percentage which the Company has on these. Unrealized losses are also eliminated except if the transaction provides evidence of loss from the impairment of the asset which is transferred.

(c) Joint ventures

Joint ventures are contractual agreements by virtue of which the Company has agreed with other companies, outside the SQM Group, the performance of economic activities which are subject to joint control. As established in IAS 31 paragraph 38 the Company has adopted the equity method to recognize interest in those entities jointly controlled.

2.5 Basis of conversion

Domestic subsidiaries:

Assets and liabilities denominated in Chilean pesos and other currencies other than the functional currency (U.S. dollar) as of September 30, 2010, January 1 and as of December 31, 2009, have been converted to U.S. dollars at the exchange rates prevailing at those dates (the corresponding Chilean pesos were converted to Ch$483.65 per US$1.00 as of September 30, 2010, Ch$507.10 per US$1.00 as of December 31, 2009 and $636.45 per US$1.00 as of January 1, 2009.)

The values of UF (a Chilean peso-denominated, inflation-indexed monetary unit) used to convert to Chilean pesos (United States dollars) the assets and liabilities expressed in this adjustable unit as of September 30, 2010 amounted to Ch$21,339.99 (US$44.12) as of December 31, 2009 amounted to $20,942.88 (US$41.30) and as of January 1, 2009 amounted to $21,452.57 (US$33.71.)

27

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

Foreign subsidiaries:

The exchange rates used to convert the monetary assets and liabilities expressed in foreign currency at the closing date of each period in respect to U.S. dollar are detailed as follows:

	9/30/2010		12/31/2009		1/1/2009
	US$		US$		US$
Brazilian Real		1.69		1.74		2.34
New Peruvian Sol		2.83		2.88		3.14
Argentinean Peso		3.94		3.83		3.47
Japanese Yen		83.82		92.10		91.03
Euro		0.73		0.69		0.72
Mexican Peso		12.48		13.04		13.77
Australian Dollar		1.03		1.12		1.45
Pound Sterling		0.64		0.62		0.67
South African Rand		6.99		7.40		9.28
Ecuadorian Dollar		1.00		1.00		1.00

28

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

2.6 Responsibility for the information and estimates made

The information contained in these interim consolidated financial statements is the responsibility of the Company’s management who expressly indicate that it has applied all the principles and criteria included in IFRS issued by the International Accounting Standard Board (IASB.)

In the Company’s interim consolidated financial statements judgments and estimates have been made by management to quantify certain assets, liabilities. Income, expenses and commitments recorded therein. Basically these estimates refer to the following:

- The useful lives of material and intangible assets and their residual values.

- Impairment losses of certain assets, including trade receivables.

- Hypotheses used for the actuarial calculation of commitments related to pensions and staff severance indemnities.

- Provisions for commitments acquired with third parties and contingent liabilities.

- Accrued expenses based on technical studies which cover the different variables which affect products in stock (density. humidity. among others) and allowances on slow-moving spare parts in inventories.

- Future costs for the closure of mining facilities.

- The determination of fair value of certain financial and non-financial assets and derivative instruments.

- The determination and allocation of fair values in business combinations.

Although these estimates have been made considering the best possible information available on the date of preparation of these interim financial statements it is possible that events which may occur in the future obligate their modification (increases or decreases) in the next few years, which would be performed prospectively, recognizing the effects of change in estimates on the respective future consolidated financial statements.

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    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

2.7 Financial information by operating segment

IFRS 8 requires that companies adopt “the management approach” to disclose information on the result of 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.

A business segment is a group of assets and operations responsible for providing products or services subject to risks and performance different that 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 that those of other segments which operate in other economic environments.

Accordingly, the following business segments have been identified for the Company:

- Specialty plant nutrients

- Industrial chemicals

- Iodine and derivatives

- Lithium and derivatives

- Potassium

- Other products and services

2.8 Property, plant and equipment

Tangible fixed assets are stated at acquisition cost, net of the related accumulated amortization and impairment losses which they have experienced.

In addition to the price paid for the acquisition of tangible fixed assets, the Company has considered the following concepts as part of the acquisition cost, as applicable:

1. Accrued financial 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. The amount capitalized for this concept was ThUS$19,547 as of September 30, 2010 and ThUS$13,089 as of September 30, 2009.

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    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

2 The present value of future costs to which the Company will have to experience related to the closure of its facilities, are included in the asset's value at restated cost.

Work-in-progress is transferred to property, plant and equipment in operation once they are available for use beginning the related amortization on that date.

Extension, modernization or improvement costs which 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 income as cost of the year in which they are incurred.

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 has been considered that the carrying value of assets do not exceed the net recoverable value of these assets.

Property, plant and equipment, net in the case of their residual value, are amortized through the straight-line distribution of cost among the estimated technical useful lives which constitute the period in which the Company expects to use them. When portions of a property, plant and equipment item have different useful lives, these are recorded as separate items. The useful life is reviewed on a regular basis.

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    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

The useful lives used for the depreciation of assets included in property, plant and equipment are presented below.

Classes of property. plant and equipment	Life or minimum rate		Life or maximum rate
Life or rate for buildings		3		80
Life or rate for plant and equipment		3		35
Life or rate for information technology equipment		3		10
Life or rate for fixed facilities and accessories		3		35
Life or rate for motor vehicles		5		10
Life or rate for other property. plant and equipment		2		30

The gains or losses which are generated in the sale or disposal of property, plant and equipment are recognized as income for the period and calculated as the difference between the asset’s sales value and its net carrying value.

The Company obtains property rights and mining concessions from the Chilean State. Property rights are obtained usually without any initial cost (other than the payment of mining licenses and minor registration expenses) and when rights are obtained on these concessions, the Company retains them while it pays the related annual licenses. Such license fees, 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, which are not from the Chilean State are recorded at their acquisition cost in property, plant and equipment.

2.9  Investment properties

The Company recognizes as investment properties the net values of land, buildings and other constructions which are held to exploit them under lease agreements or to obtain proceeds from their sale as a result of those increases which are generated in the future in the respective market prices. These assets are not used in the activities and are not destined for own use.

They are initially stated at their acquisition cost, which includes the acquisition price or production cost plus directly assignable expenses. Subsequently, investment properties are stated at their acquisition cost less accumulated depreciation and the possible accumulated provisions for value impairment.

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    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

2.10 Inventories

The Company states inventories for the lower of cost and net realizable value. The cost price 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 inventories to their current location and conditions. The method used to determine the cost of inventories is weighted average cost.

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.

Commercial discounts, rebates obtained and other similar entries are deducted in the determination of the acquisition price.

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 the circumstances, which previously caused the rebate ceased 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.

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, 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.

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    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

2.11 Trade and other receivables

Trade and other receivables relate to non-derivative financial assets with fixed payments which can be determined and are not quoted in any active market.  These arise from sales operations involving the products and/or services which the Company commercializes directly to its customers with no intention of negotiating the account receivable and are not within the following categories:

•      Those which the Company has 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..

•      Those through which the holder does not intend to partially recover substantially its entire investment 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 receivables does not significantly differ from its fair value, it is recognized at face value. 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 financial income when interest is accrued over the term of the operation.

34

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

2.12 Revenue recognition

Revenue includes the fair value of considerations received or receivable or the sale of goods and services during performance of the Company's activities. Revenue is presented net of value added tax, returns, rebates and discounts and after the elimination of sales among subsidiaries.

Revenue is recognized when its amount can be stated reliably, it is possible that the future economic rewards flow to the entity and the specific conditions for each type of activity -related revenue are complied with, as follows:

(a) Sale of goods

Sales of goods are recognized when the Company has delivered products to the customer, the customer has total discretion on the distribution channel and the price at which products are sold and there is no obligation pending compliance which may 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, the acceptance period has ended or 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) Sales of services

Revenue associated with the provision of services is recognized considering the degree of completion of the service at the date of presentation of the Statement of financial position provided that the result from the transaction can be estimated reliably.

35

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

(c) Interest income

Income is recognized as and when interest is accrued in consideration of the principal which is pending payment using the effective interest rate method.

(d) Income from royalties

Income from royalties is recognized based on the accrual in accordance with the economic substance of the related agreements.

(e) Income from dividends

Income from dividends is recognized when the right to receive the payment is established.

2.13 Investments recognized using the equity method

Interest in companies in which control is exercised together with another company (joint venture) or in which the Company has significant influence (associated companies) are recorded using the equity method. Significant influence is assumed to exist when the Company has interest exceeding 20% of the investee's equity.

Under this method, the investment is recognized in the statement of financial position at cost plus changes subsequent to the acquisition in an amount proportional to the net associated company’s equity using the ownership interest in the associate.  The associated goodwill is included at the carrying value of the investee and it is not subject to amortization. The debit or credit to profit or loss reflects the proportional amount in the associated company's results.

Changes in equity of the associates are recognized proportionally with a debit or credit to “Other reserves” and classified according to their origin and, if applicable, these are disclosed in the Statement of changes in equity.

The associated company’s and the Company’s reporting dates and policies are similar for equivalent transactions and events under similar circumstances.

In the event that significant influence is lost or the investment is sold or is available-for-sale, the equity value method is discontinued suspending the recognition of proportional results.

36

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

If the resulting amount according to the equity method were negative, interest is reflected as zero in the Consolidated Financial Statements unless the Company commits to resolve its equity position.  In this case, the respective provision for risks and expenses is recorded.

Dividends received in these companies are recorded reducing the equity value and proportional profit or loss recognized in conformity with their interest, are included in the consolidated profit or loss under the caption “Equity gain (loss) in companies using the equity method.”

2.14 Corporate tax

Corporate income tax for the year is determined as the addition of current tax from the different companies which is the result of the application of the type of tax on the taxable income for the year upon application of deductions which can be admitted for tax purposes plus the variation in deferred tax assets and liabilities and fiscal credits both for negative tax bases and deductions. 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 which are expected to be applicable when assets and liabilities are realized.

In conformity with current Chilean tax regulations, the provision for corporate income tax and taxes for the 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 on deferred tax assets or liabilities which are not the result of business combinations are recorded in profit or loss statement accounts or net equity accounts in the Consolidated Statement of Position considering the origin of the gains or losses which have generated them.

At the date of these statements of financial position, the carrying value of deferred tax assets is reviewed and reduced as long as it is possible that there is 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.

37

 

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

With respect to temporary differences deductible associated with investments in subsidiaries, associated companies and interest in joint ventures, deferred tax assets are recognized solely provided that there is a possibility that temporary differences are 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 right legally receivable of offsetting tax assets against tax liabilities and the deferred tax is related to the same tax entity and authority.

2.15 Earnings per share

The net benefit per share is calculated as the ratio between the net benefit for the period attributable to the Parent Company and the weighted average number of common shares of the Parent Company in circulation during this period.

The Company has not conducted any type of operation of potential diluted effect which assumes a diluted benefit per share other than the basic benefit per share.

38

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

2.16 Non-financial asset value impairment

Assets subject to amortization are subject to test for impairment 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 amount in books 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 sales and its value in use and is determined for an individual asset unless the asset does not generate any cash inflows which are clearly independent from other assets or groups of assets.

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 selling costs.  These calculations are confirmed by valuation multiples, quoted share prices for subsidiaries quoted publicly or other available 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, except for properties reevaluated previously where the revaluation was taken to equity. In this case impairment is also recognized with a debit to equity up to the amount of any previous revaluation.

39

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

For assets other than the goodwill acquired, an annual evaluation is conducted of whether there are impairment loss indicators recognized previously which might have already ceased to exist or decreased. 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 which would have been determined net of depreciation if an asset impairment loss would have not been recognized in prior years. This reversal is recognized with a credit to profit or loss unless an asset is recorded at the revaluated amount.  Should this be the case, the reversal is treated as an increase in revaluation.

2.17 Financial assets

SQM S.A. and subsidiaries classify their financial statements under the following categories: at fair value through profit or loss, loans and receivables, financial assets held-to-maturity and financial assets available-for-sale. The classification depends on the purpose with which financial assets were acquired. Management determines the classification of its financial assets at the time of initial recognition.

(a) Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if it is acquired mainly with the purpose of being sold in the short-term. Derivatives are also classified as acquired for trading unless they are designated as hedge accounting. Assets under this category are classified as current assets and variations generated in fair value are directly recognized in profit or loss.

40

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

(b) Loans and receivables

Loans and accounts receivable are non-derivative financial assets with fixed payments or payments which can be determined and are not quoted in any active market. These are included in current assets, except for those with expiration dates which exceed 12 months from the closing date which are classified as non-current assets. Loans and receivables are included under the caption “Trade and other receivables” in the Statement of financial position and are stated at amortized cost.

(c) Financial assets held-to-maturity

Financial assets held-to-maturity are non-derivative financial assets with fixed payments or payments which can be determined and fixed expiration dates which management has the positive intention and ability of holding to maturity. If an amount which was not insignificant of financial assets held to maturity was sold, the full category would be reclassified as available for sale. Assets in this category are stated at amortized cost.

(d) Financial assets available for sale

Financial assets available for sale are non-derivative instruments which are designated in this category or are not classified in any of the other categories. They are included in non-current assets unless the Company intends to dispose of the investment in the 12 months following the closing date. These assets are stated at fair value recognizing in equity those variations in fair value.

At each reporting date, the Company evaluates whether there is objective evidence that a financial asset or a group of assets may have experienced impairment losses.

2.18 Financial liabilities

The Company classifies its financial liabilities under the following categories: at fair value through profit or loss, trade payables, interest-bearing loans or derivatives designated as hedging instruments.

The Company’s management determines the classification of its financial liabilities at the time of initial recognition.

41

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

Financial liabilities are derecognized when the obligation is repaid, settled or it expires.

(a) Financial liabilities at fair value through profit or loss

Financial liabilities are classified at fair value when these are held for trading or designated in their initial recognition at fair value through profit or loss. This category includes derivative instruments not designated for hedge accounting.

(b) Trade payables

Trade payables to suppliers are subsequently stated at their amortized cost using the effective interest rate method.

(c) Interest-bearing loans

Loans are subsequently stated 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.

42

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

2.19 The Environment

In general, the Group companies follow the criterion of considering amounts destined to environmental protection and improvement as environmental expenses. However, amounts of elements included in facilities, machinery and equipment destined to the same purpose are considered property, plant and equipment.

2.20 Minimum Dividend

As required by the Shareholders’ Company Act unless otherwise decided by the shareholders through unanimous vote of the holders of those shares issued and subscribed, a public shareholders’ company must distribute a minimum dividend of 30% of its profit for the period, except in the event that the Company has losses not absorbed in prior years.

2.21 Financial debt obligations

Financial debt obligations are recognized at their face value as non-current when their expiration date exceeds twelve months and as current when the expiration occurs in a period lower than that indicated above. Interest expense is calculated in the year in which it is accrued following a financial criterion.

In accordance with IAS 32 and 39, expenses incurred in the assumption of debt are recognized in the attached Consolidated Statement of Financial Position discounting the associated debt and are charged to profit for the period over the term of the debt using the effective interest rate method.

43

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

2.22 Trade payables

Trade payables are initially recognized at their fair value and are subsequently stated at amortized cost using the effective interest rate method. When the face value of the balance payable does not significantly differ from its fair value, it is recognized at face value.

2.23 Consolidated statement of cash flows

Cash equivalents relate to short-term highly liquid investments which are readily convertible into known amounts of cash are subject to low risk of change in their value and expire in less than three months.

For the purposes of the preparation of the statement of cash flows, cash and cash equivalents have been defined as cash and cash equivalents net of pending bank overdrafts.

The statement of cash flows includes cash movements performed during the year determined by the indirect method.

In these statements of cash flows, the following expressions are used in the sense which is shown as follows:

- Cash flows: cash and financial asset equivalent inflows and outflows understanding as such those short-term highly-liquid investments with low risk of change in their value.

- Operating activities: common activities related to the operation of the Group’s business as well as other activities which cannot be classified as investing or financing activities.

- Investing activities: investing activities relate to the acquisition, disposition or disposal related to other long-term assets and other investments not included in cash and cash equivalents.

- Financing activities: activities which generate changes in the size and composition of net equity and of liabilities which are not part of operating activities.

44

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

2.24 Obligations related to staff severance indemnities 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. For the case of the United States, this is performed in accordance with the related pensions plan.

These obligations are valued using the actuarial calculation, which considers such hypotheses 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.

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

Actuarial losses and gains have their origin in deviations between the estimate and the actual behavior of actuarial hypotheses or in the reformulation of those actuarial hypotheses established.

The discount rate used by the Company for the calculation of the obligation was 6% for the periods ended as of September 30, 2010 and as of December 31, 2009.

45

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

2.25 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 again at fair value.  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. 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 possible foreseen transaction (cash flow hedge);

At the beginning of the transaction, the Company documents the relationship existing between hedging instruments and those entries 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 the end of each period of whether derivatives which are 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 (Hedging assets.) Movements in the hedging operation reserve are classified as a non-current asset or liability if the remaining expiration period of the hedged entry 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.

Investment derivatives are classified as a current asset or liability and the change in their fair value is recognized directly in profit or loss.

(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.

46

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

For fair value hedging related to items recorded at amortized cost, the adjustment of the fair value is amortized against income on the remaining year to its expiration. Any adjustment to the carrying value of a hedged financial instrument for which 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 hedge

The cash portion of gains or losses from the hedging instrument is initially recognized with a debit or credit to equity whereas any non-cash 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 for the period as when the hedged finance income or expense is recognized when a forecasted sale occurs. When the hedged entry 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 not longer be expected to occur, the amounts previously recognized in equity are transferred to profit or loss. If a hedging instrument expires is sold, finished, and exercised without any replacement or a rollover is performed or if its designation as hedging is revoked. Amounts previously recognized in equity are maintained in equity until the expected firm transaction or commitment occurs.

47

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

2.26 Lease

(a) Leases  - Finance lease

Leases are classified as finance leases when the Company has substantially all the risks and rewards derived from the ownership. 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 financial debt to obtain ongoing interest type on the debt pending balance.  The respective lease obligations, net of financial debt, are included in other non-current liabilities. The interest element of finance cost is debited in the statement of comprehensive income during the lease period so that a regular ongoing interest rate is obtained on the remaining balance of the liability for each year. The asset acquired through a finance lease is subject to depreciation over the lower of its useful life or the life of the agreement.

(b) Lessee – Operating lease

Leases in which the lesser maintains a significant part of 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 comprehensive income or capitalized (as applicable) on a straight-line basis over the lease period.

The Company does not maintain any significant agreement which meets the conditions established in IAS 17 to be considered as finance leases and therefore. all the current agreements are considered operating leases.

48

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

2.27 Prospecting expenses

Those prospecting expenses associated with mineral reserves which are being exploited are included under Inventories and amortized according to the estimated mineral content reserves. Expenses associated with future reserves are presented under Intangible assets as and when minerals included in the future reserve have ore-grade which makes the mining property economically exploitable.

Those expenses incurred on properties in which the product has low ore-grade which is not economically exploitable, are directly debited to profit or loss.

2.28 Other provisions

Provisions are recognized when:

*  The Company has a present obligation as a result of a past event.

* It is possible that certain resources are used, including benefits, to settle the obligation.

*  A reliable estimate can be made of the obligation amount.

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 statement of comprehensive 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 taxes which 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 accruals to cover risks and expenses based on a better estimate to deal with possible or certain and quantifiable responsibilities from litigation in force, compensations or obligations, pending expenses the amount of which has not been determined, collaterals and other similar guarantees for which the Company is responsible. These are recorded at the time in which the responsibility or the obligation which determines the compensation or payment is generated.

49

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

The Company determines and recognizes the cost related to employee vacation on an accrual basis.

As a result of this policy, the Company has recorded accruals for:

- Employee vacation: The Company determines and recognizes the cost related to employee vacation on an accrual basis.

- Employee benefits agreed with employees other than staff severance indemnities and option plan, which the Company and its subsidiaries will have to pay to its employees by virtue of the agreements entered have been recognized on an accrual basis.

- Legal expenses related to the estimate of future payments for lawsuits maintained with third parties.

2.29 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, in accordance with International Financial Reporting Standard No. 2 “Share-based payments.” Variations in the fair value of options granted are recognized with a charge to remuneration on a straight-line basis during the period between the date in which these options are granted and the payment date.

50

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

2.30 Good and service insurance expenses

Payments for the different insurance policies which the Company contracts are recognized in expenses considering the proportional amount related to the time that they cover, regardless of payment terms. Amounts paid and not consumed are recognized as prepaid expenses within Current assets.

Costs of claims are recognized in profit or loss immediately after being known, net of the recoverable amounts from insurance companies. Recoverable amounts are recorded as an asset reimbursable from the insurance company under “Trade and other receivables", calculated as established in the respective insurance policies.

2.31 Intangible Assets

Intangible assets mainly relate to goodwill acquired, water rights, broadcasting rights, trademarks, and rights of way related to electric lines and development expenses, and computer software licenses.

(a) Goodwill acquired

Goodwill acquired represents the excess in acquisition cost on the fair value of them Company's ownership on the net identifiable assets of the subsidiary on the acquisition date. Goodwill acquired related to acquisitions of subsidiaries is included in intangible assets, which is subject to value impairment tests every time that the Company issues consolidated financial statements and is stated at cost plus 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 which are expected to obtain benefits from the business combination from which the aforementioned goodwill acquired arose.

51

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

(b) Water rights

Water rights acquired by the Company relate to the water from natural sources and are recorded at acquisition cost. Given that these assets represent rights granted on a perpetual basis to the Company, these are not amortized.  However, they are subject to an impairment assessment on an annual basis.

(c) 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.

(d) Computer software

Licenses for IT programs acquired are capitalized based on costs which 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 probably will generate economic benefits which 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 of IT programs recognized as assets are amortized over their estimated useful lives.

2.32 Research and development expenses

Research and development expenses are debited to profit or loss in the period in which the disbursement is made except for property, plant and equipment acquired to be used in research and development, which are recognized in accounting under the respective item within property, plant and equipment.

52

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 2 - Bases of presentation of interim consolidated financial statements and accounting criteria applied, continued

2.33 Classification of balances as current and non-current

In the attached statement of financial position, balances are classified in consideration of their remaining expiration dates; i.e., those expiring on a date equal to or lower than twelve months as current and those with expiration dates which exceed the aforementioned period as non-current.

53

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 3 – First-time application of International Financial Reporting Standards (IFRS)

Application IFRS 1

The annual consolidated financial statements for the Group as of December 31, 2010 will be the first consolidated financial statements prepared according to IFRS. The Company has applied IFRS 1 when preparing its interim consolidated financial statements.

The transition date is January 1, 2009, to which management has prepared its opening balance under IFRS to that date. The IFRS effective date is January 1, 2010 as indicated by the Chilean Superintendence of Securities and Insurance (SVS)

According to IFRS 1, in order to prepare the aforementioned consolidated financial statements, all mandatory exemptions have been applied by the Company, and some of the non-mandatory exemptions to the retroactive application of IFRS.

Exceptions established on IFRS 1 that the Company has decided to apply on its IFRS first-time adoption process, are as follows:

i) Business combinations

The Company has applied the exemption included in IFRS 1 for business combinations conducted from 2004 and thereafter. For these purposes, the Company reversed the amortization of goodwill recognized in accordance with the previous accounting standards.

ii) Fair value or revaluation as deemed cost

The Company has chosen to measure certain property, plant and equipment items at their fair value at the transition date of January 1, 2009.  The fair value of property, plant and equipment was measured through a business appraisal conducted by independent external experts, who determined the new historical initial values, useful lives and residual values of these assets.

54

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 3 – First-time application of International Financial Reporting Standards (IFRS), continued

iii) Employee benefits

The Company has opted for recognizing all the actuarial gains and losses accumulated as of January 1, 2009.

iv) Financial Instruments

The Company has defined the application of hedge accounting for financial derivative instruments associated with obligations with the public (bonds payable) denominated in UF and Chilean pesos issued by the Company.

v) Cumulative translation differences and technical revaluation

If the adopter uses this exemption: i) cumulative translation differences of all businesses abroad will be considered to be voided on the date of transition to IFRS; and ii) the gain or loss for the subsequent sale or disposal using another method of a business abroad will exclude translation differences which have arisen prior to the date of transition to IFRS and will include translation differences which have arisen subsequent to it.

The Company has opted to transfer cumulative translation differences and technical revaluation from other reserves to retained earnings. This exemption has been applied to all dependent companies in accordance with IFRS 1.

IFRS first-time adoption effects are recognized in retained earnings or other reserve accounts in the Company’s equity, depending on whether these adjustments represent realized or unrealized gains or losses at the transition date.

The following is a detailed description of the main differences between Generally Accepted Accounting Principles in Chile (Chilean GAAP) and International Financial Reporting Standards (IFRS) applied by the Company and the impact on shareholders’ equity as of September 30, 2009, and January 1, 2009 and on profit or loss as of September 30, 2010.

55

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 3 – First-time application of International Financial Reporting Standards (IFRS), continued

a) Reconciliation of net shareholders’ equity from Generally Accepted Accounting Principles (Chilean GAAP) to International Financial Reporting Standards (IFRS) as of January 1, 2009 and December 31, 2009.

As  of January 1, 2009	Equity of majority shareholders			Equity of minority shareholders			Total equity
	ThUS$			ThUS$			ThUS$
RECONCILIATION
Net equity under Chilean GAAP		1,463,108						1,463,108
Incorporation of minority shareholders					47,069			47,069
Reversal of amortization of goodwill		6,487			-			6,487
Negative goodwill		1,279			-			1,279
Reversal of deferred tax complementary accounts		(13,515	)		-			(13,515	)
Recognition of obligation for the minimum compulsory distribution of dividends of 30% of profit for the period		(50,422	)		-			(50,422	)
Fair value of property, plant and equipment		(53,732	)		(634	)		(54,366	)
Recognition of actuarial calculation of provision for staff severance indemnities		(928	)		(2	)		(930	)
Fair value of bonds denominated in UF		(9,507	)		-			(9,507	)
Deferred taxes on IFRS adjustments		10,908			108			11,016
Effect of transition to IFRS		(109,430	)		(528	)		(109,958	)
Net equity under IFRS		1,353,678			46,541			1,400,219

As of December 31, 2009	Equity of majority shareholders			Equity of minority shareholders			Total equity
	ThUS$			ThUS$			ThUS$
RECONCILIATION
Net equity under Chilean GAAP		1,466,613						1,466,613
Incorporation of minority shareholders					46,093			46,093
Reversal of amortization of goodwill		8,663			-			8,663
Negative goodwill		1,072			-			1,072
Reversal of deferred tax complementary accounts		(11,365	)		-			(11,365	)
Recognition of obligation for the minimum compulsory distribution of dividends of 30% of profit for the period		-						-
Fair value of property, plant and equipment		(45,132	)		(503	)		(45,635	)
Recognition of actuarial calculation of provision for staff severance indemnities		(947	)		26			(921	)
Fair value of bonds denominated in UF		(9,619	)		-			(9,619	)
Deferred taxes on IFRS adjustments		9,468			81			9,549
Effect of transition to IFRS		(47,860	)		(396	)		(48,256	)
Net equity under IFRS		1,418,753			45,697			1,464,450

56

Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

b)

Note 3 –First-time application of International Financial Reporting Standards (IFRS), continued

a) Reconciliation of profit for the period from Chilean GAAP to IFRS as of December 31, 2009

As of December 31, 2009	Profit (loss) of majority shareholders			Profit (loss) of minority shareholders			Total profit or loss
	ThUS$			ThUS$			ThUS$
RECONCILIATION
Profit for the period under Chilean GAAP		327,056			1,334			328,390
Amortization of goodwill		2,176			-			2,176
Amortization of negative goodwill		(206	)		-			(206	)
Amortization of deferred tax complementary accounts		2,151			-			2,151
Depreciation		8,601			131			8,732
Recognition of actuarial calculation of provision for staff severance indemnities		(19	)		28			9
Deferred taxes under NIIF		(1,459	)		(27	)		(1,486	)
Effect of transition to IFRS at the date of the most  recent annual financial statements		11,244			132			11,376
Profit for the period under IFRS		338,300			1,466			339,766
Other income and expenses with a debit or credit in net equity:
Cash flow hedge		(112	)		-			(112	)
Income tax related to other income and expenses with a debit to net equity		19			-			19
Comprehensive income for the period under IFRS		338,207			1,466			339,673

b) Reconciliation of profit for the period from Chilean GAAP to IFRS as of September 30, 2009

As of September 30, 2009	Profit (loss) of majority shareholders			Profit (loss) of minority shareholders			Total profit or loss
	ThUS$			ThUS$			ThUS$
CONCILIACION
Profit for the period under Chilean GAAP		251,697			(758	)		250,939
Amortization of goodwill		1,632			-			1,632
Amortization of negative goodwill		(205	)		-			(205	)
Amortization of deferred tax complementary accounts		1,312			-			1,312
Depreciation		6,012			170			6,182
Recognition of actuarial calculation of provision for staff severance indemnities		(14	)		23			9
Deferred taxes under NIIF		(1,020	)		(33	)		(1,053	)
Effect of transition to IFRS at the date of the most  recent annual financial statements		7,717			160			7,877
Profit for the period under IFRS		259,414			(598	)		258,816
Other income and expenses with a debit or credit in net equity:
Foreign currency translation gains (losses) before tax		842			-			842
Cash flow hedge		12,872			-			12,872
Income tax related to other income and expense components with a debit to net equity		(2,188	)		-			(2,188	)
Comprehensive income for the period under IFRS		270,940			(598	)		270,342

57

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 3 – First-time application of International Financial Reporting Standards (IFRS), continued

Explanation of adjustments for the effects of transition to IFRS

The detail of the explanation of the different concepts enumerated in the reconciliation included in the preceding point is detailed as follows:

(a) Deferred income taxes

As described in Note 2.14, under IFRS the Company has to recognize the effects of deferred income taxes for all temporary differences existing between the tax and book balance based on the liability method.

Although the method established in IAS 12 is similar to Chilean GAAP, the Company made the following adjustments in accordance with IFRS requirements:

i) The elimination of "deferred tax complementary accounts” in which the Company deferred the effects on equity of the first-time application of Technical Bulletin No. 60 issued by the Chilean Association of Accountants amortized with a debit/credit to profit for the period in the foreseen term for the reversal of the difference (or consumption of the related tax loss. if this is the case.)

ii) The determination of deferred taxes on entries not subject to the calculation  under Chilean GAAP but which qualify as temporary differences under IFRS and the calculation of the tax effect of transition adjustments to IFRS.

(b) Revaluation of property, plant and equipment at fair value as deemed cost

Chilean GAAP establish the valuation of property, plant and equipment at acquisition cost restated for inflation less accumulated depreciation and accumulated impairment losses and do not allow property. plant and equipment revaluation (revaluations were only and extraordinarily authorized by the Chilean SVS in accordance with Circulars Nos. 550 and 566 of 1985 issued by the Chilean Superintendence of Securities and Insurance.) Except for that indicated in the next paragraph, the Company has considered the values of assets determined in accordance with the aforementioned accounting standards, as its property, plant and equipment deemed cost.

 

58

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 3 –  First-time application of International Financial Reporting Standards (IFRS), continued

For the adoption of IFRS, the Company valued certain property, plant and equipment items (mainly machinery and equipment) at their fair value in conformity with the exemption contained in IFRS 1.  The revaluation was performed only once in accordance with IFRS 1.  The new value determined relates to the initial cost of the asset beginning on the transition date. This fair value of assets amounted to ThUS$60,458 as of January 1, 2009 and represented an adjustment to equity (decrease) of ThUS$54,366 at that date.

(c) Minimum Dividend

In accordance with Chilean GAAP, dividends for distribution are recorded in the Company’s financial statements at the time of the agreement at the Shareholders’ or Board of Directors’ Meeting. Law No. 18,046 on Shareholders' Companies establishes in its article No. 79 that public shareholders' companies will have to distribute as dividends to its shareholders, at least, 30% of profit for the period, unless the shareholders of shares issued with voting right at the Shareholders' Meeting unanimously agree otherwise. Under IFRS, the Company has recorded the obligation on an accrual basis, net of provisional dividends which would have been agreed at the closing date for 30% of profit for the period, which is the legal minimum percentage. As of December 31, 2009, the provisional dividend distributed during November covers this minimum dividend and therefore, no provision was required.

(d) Minority interest

Chilean GAAP, applied for the preparation of the consolidated financial statements recognized the interest of minority shareholders in the equity of subsidiaries as a separate account between liabilities and net equity of the Company’s consolidated financial statements. Likewise, the consolidated financial statements for the year under Chilean GAAP excluded through a specific line minority interest in net profit or loss of subsidiaries. Under IFRS, minority shareholders are a part of the economic conglomerate or Group and; therefore, their interest is considered part of the statement of changes in net equity and the statement of comprehensive income.

 

59

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 3 – First-time application of International Financial Reporting Standards (IFRS), continued

(e) Derivative hedging

The Company maintains as hedging instruments those financial derivatives associated with obligations with the public (bonds payable) issued in UF and in Chilean pesos. Under IFRS, changes generated in the fair value of derivatives which are designated and qualified as hedging, for their cash component, are recognized in net equity. The gain or loss relative to the non-cash part of the hedging is immediately recognized in the statement of comprehensive income under "Other gains / losses." This represents a change with respect to Chilean GAAP where realized gains or losses for this concept were recognized in non-operating income whereas unrealized gains or losses related to changes in fair values of derivative instruments in cash flow hedging were deferred in asset and liability accounts without affecting income up to the settlement of hedged and hedging entries.

(f) Actuarial staff severance indemnities

IFRS require that the benefits of services defined delivered to employees at long-term are determined in consideration of the application of an actuarial calculation model generating differences with respect to the methodology applied previously which considered present values.

60

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 3 – First-time application of International Financial Reporting Standards (IFRS), continued

(g) Negative goodwill

IFRS do not contemplate the recognition in the statement of financial position of negative goodwill at the date of a business combination recognizing this difference directly on profit or loss (under Chilean GAAP this was presented as a deduction of assets.) Accordingly, the existing balance for this concept was transferred to the Reserve for Retained Earnings account within Equity.

(h) Goodwill

Under IFRS, the Company has considered goodwill as an intangible asset of indefinite useful life. At least, once a year, the cash generating unit which gave rise to goodwill is assessed for possible impairment. If there is any evidence of impairment, goodwill is initially adjusted with a charge to income. For first-time adoption purposes, the Company opted to reverse the amortization of goodwill which was generated by acquisitions of companies recorded using the business combination method conducted beginning in 2004.

(i) Reconciliation of the cash flows for the year ended December 31, 2009

The main differences between Chilean GAAP and IFRS in the preparation of the statement of cash flows relate to the classification of finance lease installments, which are included as investing activities in accordance with Chilean GAAP and as financing activities under IFRS.

61

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 4 – Financial Risk Management

4.1 Risk Management Policy

The Company’s Risk Management Strategy is focused on safeguarding the Company and its subsidiaries’ stability and sustainability with respect to those relevant financial uncertainty components.

The Company’s operations are subject to certain risk factors which may affect its financial position or results.  The most significant among these are market, liquidity, exchange rate, uncollectible and interest rate risks.

There may be additional risks affecting the Company’s trading operations, its business, financial position or results, which are not significant through the present date.

The financial risk management structure includes the identification, determination, analysis, quantification, measurement and control of these events. The Company’s management and, in particular, the Finance Management is responsible for the ongoing evaluation of financial risk.  The Company uses derivatives to hedge a significant portion of these risks.

 

62

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 4 – Financial Risk Management, continued

4.2 Risk Factors

4.2.1 Market risk

Market risks relate to those uncertainties associated with variations in market variables affecting the Company's assets and liabilities among which we may highlight the following:

a)   Country Risk: The economic condition of countries where the Company operates may affect its financial position.  For instance, sales by the Company to emerging markets expose it to risks related to economic conditions and trends in those countries.  In addition, inventory levels may also be affected by the economic condition in these countries and/or the global economy, among other possible economic impacts.

b)   Price volatility risk: The Company’s product prices are affected by variations in international prices of fertilizers and chemicals and changes in production capacities or in the demand for these might affect our business, financial condition and results from operations.

c)   Commodity price risk: The Company is exposed to changes in prices of raw materials and energy which may have an impact on its production costs and generate unstable results.

Currently, the Company incurs annual expenses of approximately US$ 90 million for fuels and approximately US$60 million for electric energy.  Variations of 10% in the prices of energy required for the Company’s activities may give rise to variations of US$15 million in costs.

4.2.2 Uncollectibility Risk

The current economic downturn level and its potentially negative effects on the financial position of our customers may extend the terms for the payment of accounts receivable. may increase our bad debt exposure.  Although we take steps to minimize risk, this global economic situation may result in losses which might have a material adverse effect on our business, financial condition or results of operations.

In order to mitigate these risks, the Company uses such actions as the use of credit insurance, letters of credit and advance payments for a portion of trade receivables.

 

63

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 4 – Financial Risk Management, continued

4.2.3 Exchange rate risk

As a result of the influence in the determination of price levels, its relationship to selling costs and given that a significant portion of the Company’s business is traded in that currency, the Company has defined U.S. dollar as its functional currency. However, the global nature of the Company’s business generates exposure to exchange rates of different currencies with respect to U.S. dollars. Accordingly, the Company maintains hedging agreements to cover its main uncovered positions (net assets from liabilities) in currencies other than U.S. dollar against the variation in the exchange rate and regularly updates these agreements depending on the uncovered position to be hedged in those currencies.

A significant portion of the Company’s costs relates to Chilean peso.  In line with this, an increase or decrease in the exchange rate between Chilean peso and U.S. dollar would affect its costs.  Currently, close to US$ 300 million of the Company’s costs, particularly payroll, are denominated in Chilean pesos and therefore, if no derivatives are used, a variation of 10% in the exchange rate might result in fluctuations of approximately US$30 million.

As of December 31, 2009, the Company had derivative instruments classified as exchange and interest rate hedges associated with all the Company’s obligations related to bonds payable denominated in Chilean pesos and UF, for a fair value of US$51.3 million.  As of September 30, 2010, this amounts to US$74.5 millions both in favor of SQM.

As of September 30, 2010, the exchange rate for U.S. dollars was Ch$483.65 per US$1.00 (Ch$507.10 per US$1.00 as of December 31, 2009.)

64

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 4 – Financial Risk Management, continued

4.2.4 Interest rate risk

Interest rate fluctuations, mainly due to the uncertainty related to the future market behavior may have a material impact on the Company’s financial statements.

The Company has short and long-term debt obligations valued at LIBOR + a spread. As the Company does not currently have any derivative instruments to hedge variations in the LIBOR rate, the Company is subject to exchange rate fluctuations.

As of September 30, 2010, the Company has approximately 20% of its long-term financial obligations valued at LIBOR rate and therefore, significant increases in this rate may have an impact on its financial condition.  A 100 base point variation on this rate may result in variations in finance costs close to an annual amount of US$ 2 million, which is actually significantly offset by the returns from the Company’s investments which are also highly related to the LIBOR rate.

Additionally, as of September 30, 2010, a percentage lower than 10% of the Company’s total financial debt obligations expires at short-term, which decreases its exposure to interest rate variations.

 

65

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 4 – Financial Risk Management, continued

4.2.5 Liquidity risk

Liquidity risk is related to the needs for funds to deal with payment obligations. The Company’s objective is maintaining financial flexibility through a comfortable balance between fund requirements and cash flows from normal operating activities, bank loans, public bonds payable, short-term investments and marketable securities, among others.

The Company maintains a significant capital expenditure program which is subject to risks and uncertainties.  Mainly the exploration and exploitation of reserves, mining and processing costs and compliance with applicable standards, require significant capital which are subject to variations throughout time.

In addition, world financial markets are subject to downturn and expansion periods, which cannot be foreseen at long-term and may affect access to financial resources by the Company.

These factors may have a material adverse impact on our business, financial condition and the Company’s results of operations.

Accordingly, conducts an ongoing follow-up of the reconciliation of its investments and as part of its risk management strategy, looks after the expiration dates of both from a conservative perspective.  As of September 30, 2010, the Company had unused credit facilities for a total of US$450.5 million and credit facilities used for US$40 million, available should it require any additional fund.

The other cash and cash equivalents position generated by the Company is invested in highly liquid mutual fund units with AAA risk rating.

4.3  Risk Measurement

The Company has methods to measure the effectiveness and efficiency of risk strategies both in prospective and retrospective manner. These methods are consistent with the Group’s risk management profile.

 

66

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 5 - Changes in Accounting Estimates and Policies (Uniformity)

5.1  Changes in accounting estimates

There are no changes in accounting estimates at the closing date of the financial statements.

5.2  Changes in Accounting Policies

As of September 30, 2010, the Company’s interim consolidated financial statements presented no changes in accounting policies or estimates compared to the prior period or the transaction date, except for the application, beginning on January 1, 2010 of International Financial Reporting Standards (IFRS.)

Changes in policies and accounting estimates compared to local accounting principles and their effects were described in Note 3 Transition to International Financial Reporting Standards (IFRS.)

The interim consolidated statement of financial position as of September 30, 2010 and as of December 31, 2009 and as of January 1, 2009 and the statements of comprehensive income, equity and cash flows for the period ended as of September 30, 2010 have been prepared in accordance with IFRS and accounting principles and criteria have been applied consistently.

67

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 6 - Cash and Cash Equivalents

6.1 Classes of Cash and Cash Equivalents

As of September 30, 2010 and as of December 31, 2009 and as of January 1, 2009, the detail of cash and cash equivalents is as follows:

	9/30/2010		12/31/2009		1/1/2009
Cash and cash equivalents	ThUS$		ThUS$		ThUS$
Cash on hand		78		96		2,845
Bank balances		18,748		19,121		18,773
Short-term time deposits		472,653		336,435		116,492
Other cash and cash equivalents		124,368		174,742		165,689
Cash and cash equivalents		615,847		530,394		303,799

At the date of these financial statements, there are no differences between the amount of cash and cash equivalents recorded in the statement of financial position and the statement of cash flows.

6.2 Other cash and cash equivalents

As of September 30, 2010, December 1, 2009 and January 1, 2009, other cash and cash equivalents relate to mutual fund units for investments made in:

Institution	9/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Legg Mason Western Asset Management Co.		40,329		59,224		56,384
BlackRock Cash Management Plc		41,696		59,070		55,760
JP Morgan Asset Management		42,343		56,334		53,545
Citibank		-		114		-
Total		124,368		174,742		165,689

These institutions are highly liquid funds which are basically engaged in investments in fixed income commercial paper in the U.S. market.

 

68

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 6 - Cash and Cash Equivalents, continued

6.3  Information on cash and cash equivalents by currency

As of September 30, 2010, December 31, 2009 and January 1, 2009, cash and cash equivalents in balances of cash on hand, in banks and financial instruments, classified by currency are detailed as follows:

	9/30/2010		12/31/2009		1/1/2009
Original currency	ThUS$		ThUS$		ThUS$
Chilean Peso		437,251		259,680		99
US Dollar		168,377		263,207		291,177
Euro		1,493		3,813		7,676
Mexican Peso		99		218		809
South African Rand		7,199		2,586		2,574
Japanese Yen		1,090		823		1,096
Dirham		-		-		176
Peruvian Sol		159		26		175
Argentinean Peso		13		1		3
Brazilian Real		43		33		4
Chinese Yuan		113		-		-
Indonesian rupee		5		5		4
Pound sterling		5		2		6
Total		615,847		530,394		303,799

 

69

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 6 - Cash and Cash Equivalents, continued

6.4  Amount of significant restricted (unavailable) cash balances

Cash on hand and in bank current accounts are resources available and their carrying value is equal to their fair value.

As of September 30, 2010, December 31, 2009 and January 1, 2009, the Company has no significant cash balances with any type of restriction.

70

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 6 - Cash and Cash Equivalents, continued

6.5 Detail of time deposits

The detail of cash and cash equivalents in time deposits at each period-end is as follows:

Receiver of the deposit	Type of  de Deposit	Original Currency	Interest rate		Placement date	Expiration date	Principal ThUS$		Interest accrued to- date ThUS$		9/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Banco Crédito e Inversiones	Fixed term	Chilean pesos		0.20	6-29-2010	11-3-2010		27,808		172		27,980		71,846		11,015
Banco Crédito e Inversiones	Fixed term	Chilean pesos		0.21	7-23-2010	11-10-2010		32,159		155		32,314		-		-
Banco Crédito e Inversiones	Fixed term	Chilean pesos		0.30	9-22-2010	11-22-2010		8,915		7		8,922		-		-
Banco Crédito e Inversiones	Fixed term	Chilean pesos		0.31	9-2-2010	12-1-2010		13,889		40		13,929		-		-
Banco Crédito e Inversiones	Fixed term	Chilean pesos		0.30	8-31-2010	12-2-2010		9,825		29		9,854		-		-
Banco Crédito e Inversiones	Fixed term	Chilean pesos		0.32	9-3-2010	12-6-2010		6,654		19		6,673		-		-
Banco Crédito e Inversiones	Fixed term	Chilean pesos		0.33	9-30-2010	12-29-2010		12,018		0		12,018		-		-
Banco de Chile	Fixed term	Chilean pesos		0.17	7-9-2010	10-7-2010		17,032		80		17,112		107,862		10,022
Banco de Chile	Fixed term	Chilean pesos		0.26	9-22-2010	10-22-2010		10,261		7		10,268		-		-
Banco de Chile	Fixed term	Chilean pesos		0.28	9-28-2010	10-28-2010		15,176		3		15,179		-		-
Banco de Chile	Fixed term	Chilean pesos		0.30	8-24-2010	11-24-2010		20,927		77		21,004		-		-
Banco de Chile	Fixed term	Chilean pesos		0.30	8-26-2010	11-27-2010		21,117		74		21,191		-		-
Banco de Chile	Fixed term	Chilean pesos		0.30	9-3-2010	12-6-2010		3,742		10		3,752		-		-
Banco Santander-Santiago	Fixed term	Chilean pesos		0.16	6-29-2010	10-5-2010		28,001		139		28,140		89,137		44,452
Banco Santander-Santiago	Fixed term	Chilean pesos		0.17	6-29-2010	12-12-2010		27,808		146		27,954		-		-
Banco Santander-Santiago	Fixed term	Chilean pesos		0.17	6-23-2010	10-26-2010		55,210		309		55,519		-		-
Banco Santander-Santiago	Fixed term	Chilean pesos		0.31	9-28-2010	12-27-2010		20,196		4		20,200		-		-
Citibank New York Inversiones	Overnight	US Dollar		0.03	9-28-2010	10-1-2010		3,287		-		3,287		2,122		824
Corpbanca	Fixed term	Chilean pesos		0.31	8-24-2010	12-14-2010		10,773		41		10,814		50,468		20,045
Corpbanca	Fixed term	Chilean pesos		0.31	8-23-2010	12-20-2010		15,327		60		15,387		-		-
Banco BBVA Chile	Fixed term	Chilean pesos		0.26	9-30-2010	10-25-2010		21,835		-		21,835		-		-
Banco BBVA Chile	Fixed term	Chilean pesos		0.28	8-20-2010	11-15-2010		21,008		80		21,088		-		16,103
Banco BBVA Chile	Fixed term	Chilean pesos		0.30	9-7-2010	12-16-2010		10,275		24		10,299		-		-
Banco BBVA Chile	Fixed term	Chilean pesos		0.31	9-8-2010	1217-2010		8,852		20		8,872		-		-
Banco Estado	Fixed term	US Dollar		1.30	9-27-2010	10-4-2010		20,000		2		20,002		-		-
Banco ITAU Chile	Fixed term	Chilean pesos		0.19	7-22-2010	10-20-2010		16,379		72		16,451		-		9,018
IDBI Bank	Fixed term	Rupee		-	12-31-2009	12-31-2010		9		-		9		-		-
HSBC Bank Chile	Fixed term	US Dollar		2.50	9-30-2010	12-29-2010		12,600		-		12,600		-		5,013
Deutsche Bank Chile	-	-		-	-	-		-		-		-		15,000		-
Total												472,653		336,435		116,492

71

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 7 - Inventories

The composition of inventories at each period-end is as follows:

Class of inventories	9/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Raw materials		4,614		6,491		11,144
Supplies for production		20,221		15,617		19,275
Products-in-progress		285,096		287,712		189,555
Finished products		329,608		320,943		320,903
Total		639,539		630,763		540,877

Inventory provisions recognized as of September 30, 2010 amount to ThUS$62,499 as of December 31, 2009 amounted to ThUS$65,298, and as of January 1, 2009 amounted to ThUS$43,686. Provisions have been made based on a technical study which covers the different variables which affect products in stock (density, humidity, among others.) Additionally, provisions have been recognized for goodwill in the sale of products and inventory difference.

The breakdown of these provisions is as follows:

Class of inventories	9/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Raw materials		1,093		93		93
Supplies for production		802		1,580		1,900
Products-in-progress		42,579		46,228		27,599
Finished products		18,025		18,027		14,094
Total		62,499		65,928		43,686

The Company has not delivered inventories as collateral for the periods indicated above.

 

72

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note  8 - -  Information for disclosure on related parties

8.1  Information for disclosure on related parties

Balances pending at year-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 September 30, 2010, the Group has not recorded any impairment in receivables 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.

8.2  Relationships between the parent company and the entity

According to that provided in the by-laws of SQM S.A., no shareholder can concentrate more than 32% of the Company’s voting right capital.

Sociedad de Inversiones Pampa Calichera S.A. and Global Mining Investments (Chile) S.A. and collectively, the Pampa Group, are the owners of a number of shares which is equivalent to 30.48% of the current total amount of shares issued, subscribed and paid of SQM S.A. In addition, Kowa Company Ltd., Inversiones La Esperanza (Chile) Limitada, Kochi S.A. and La Esperanza Delaware Corporation, collectively Kowa Group, are the owners of a number of shares equivalent to 2.08% of the total amount of shares issued, subscribed and paid of SQM S.A.

The Pampa Group and the Kowa Group have informed SQM S.A., the Chilean SVS and the pertinent 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 subscribed a joint venture agreement with respect to those shares. Consequently, the Pampa Group, by itself, does not concentrate more than 32% of voting right capital of SQM S.A. and the Kowa Group does not concentrate by itself more than 32% of voting right capital of SQM S.A.

Likewise, the joint venture agreement has not transformed the Pampa Group and the Kowa Group in related companies between them. The joint venture 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.

 

73

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 8 - Information for disclosure on related parties, continued

Detail of effective concentration

Taxpayer ID	Company name	Ownership percentage %
96.511.530-7	Sociedad de Inversiones Pampa Calichera S.A.		25.24
96.863.960-9	Global Mining Investments (Chile) S.A.		5.24
Total Pampa Group			30.48
79.798.650-k	Inversiones la Esperanza (Chile)  Ltda.		1.40
59.046.730-8	Kowa Co Ltd.		0.30
96.518.570-4	Kochi S.A.		0.29
59.023.690-k	La Esperanza Delaware Corporation		0.09
Total Kowa Group			2.08

8.3  Intermediate parent company and companies controlled by SQM S.A. which publicly issue financial statements

The following intermediate parent companies prepare public financial statements:

Soquimich Comercial S.A.

8.4  Detailed identification of the link between the parent company and the subsidiary as of September 30, 2010 and December 31, 2009

	Participation percentage in subsidiary As of September 30, 2010
Subsidiary	Direct %		Indirect %		Total %
Comercial Hydro S.A.		0.0000		60.3820		60.3820
SQM Potasio S.A.		99.9974		0.0000		99.9974
SQM Nitratos S.A.		99.9999		0.0001		100.0000
Ajay SQM Chile S.A.		51.0000		0.0000		51.0000
SQMC Internacional Ltda.		0.0000		60.6382		60.6382
SQM Industrial S.A.		99.9954		0.0046		100 .0000
Isapre Norte Grande Ltda.		1.0000		99.0000		100.0000
Almacenes y Depósitos Ltda.		1.0000		99.0000		100.0000
Serv. Integrales de Tránsitos y Transferencias S.A.		0.0003		99.9997		100.0000
Soquimich Comercial S.A.		0.0000		60.6383		60.6383
SQM Salar S.A.		18.1800		81.8200		100.0000
Minera Nueva Victoria S.A.		99.0000		1.0000		100.0000
Proinsa Ltda.		0.0000		60.5800		60.5800
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.		0.0000		100.0000		100.0000
Exploraciones Mineras S.A.		0.2691		99.7309		100.0000
Nitratos Naturais Do Chile Ltda.		0.0000		100.0000		100.0000
Nitrate Corporation of Chile Ltd.		0.0000		100.0000		100.0000
SQM North America Corporation.		40.0000		60.0000		100.0000
SQM Europe N.V.		0.8600		99.1400		100.0000
Soquimich SRL Argentina		0.0000		100.0000		100.0000
Soquimich European Holding B.V.		0.0000		100.0000		100.0000
SQM Corporation N.V.		0.0001		99.9999		100.0000

74

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 8 - Information for disclosure on related parties, continued

8.4  Detailed identification of the link between the parent company and the subsidiary as of September 30, 2010 and December 31, 2009, continued

	Participation percentage in subsidiary As of September 30, 2010
Subsidiary	Direct %		Indirect %		Total %
SQI Corporation N.V.		0.0159		99.9841		100.0000
SQM Comercial de México S.A. de C.V.		1.0000		99.0000		100.0000
North American Trading Co.		0.0000		100.0000		100.0000
Administración y Servicios Santiago S.A. de C.V.		0.0200		99.9800		100.0000
SQM Peru S.A.		0.9800		99.0200		100.0000
SQM Ecuador S.A.		0.0040		99.9960		100.0000
SQM Nitratos México S.A.		0.0000		51.0000		51.0000
SQMC Holding Corporation L.L.P.		0.1000		99.9000		100.0000
SQM Investment Corporation N.V.		1.0000		99.0000		100.0000
SQM Brasil Limitada.		2.7900		97.2100		100.0000
SQM France S.A.		0.0000		100.0000		100.0000
SQM Japan Co Ltd.		1.0000		99.0000		100.0000
Royal Seed Trading A.V.V.		1.6700		98.3300		100.0000
SQM Oceania Pty Limited.		0.0000		100.0000		100.0000
Rs Agro Chemical Trading A.V.V.		98.3300		1.6700		100.0000
SQM Indonesia S.A.		0.0000		80.0000		80 .0000
SQM Virginia L.L.C.		0.0000		100.0000		100.0000
SQM Venezuela S.A.		0.0000		100.0000		100.0000
SQM Italia SRL		0.0000		100.0000		100.0000
Comercial Caiman Internacional S.A.		0.0000		100.0000		100.0000
SQM Africa Pty. Ltd.		0.0000		100.0000		100.0000
SQM Lithium Specialties LLP.		0.0000		100.0000		100.0000
Fertilizantes Naturales S.A.		0.0000		66.6700		66.6700
Iodine Minera B.V.		0.0000		100.0000		100.0000
SQM Agro India Pvt. Ltd.		0.0000		100.0000		100.0000
SQM Beijin Comercial Co. Ltd.		0.0000		100.0000		100.0000

8.5  Detail of related parties and transactions with related parties

Transactions between the Company and its subsidiaries are part of the Company's common transactions. Their conditions are customary to this type of operations in respect to terms and market price. In addition, these have been eliminated in consolidation and are not detailed in this note.

Expiration conditions for each case vary by virtue of the transaction which generated them.

75

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 8 - Information for disclosure on related parties, continued

8.6  Detail of related parties and transactions with related parties

Taxpayer ID	Company	Relationship	Original country	Transaction description	9/30/2010 ThUS$	9/30/2009 ThUS$
Foreign	Doktor Tarsa Tarim Sanayi As	Associate	Turkey	Sale of products	9,939	5,895
Foreign	Ajay Europe S.A.R.L.	Associate	France	Sale of products	16,827	6,065
Foreign	Ajay Europe S.A.R.L.	Associate	France	Finance income	-	7
Foreign	Ajay Europe S.A.R.L.	Associate	France	Dividends	118	-
Foreign	Ajay North America LLC.	Associate	United States	Sale of products	27,130	8,021
Foreign	Ajay North America LLC.	Associate	United States	Dividends	701	453
Foreign	Ajay North America LLC.	Associate	United States	Sale of fixed asset	-	20
Foreign	Abu Dhabi Fertilizer Industries WWL	Associate	United Arab Emirates	Sale of products	9,202	4,783
Foreign	Abu Dhabi Fertilizer Industries WWL	Associate	United Arab Emirates	Finance income	-	54
Foreign	Abu Dhabi Fertilizer Industries WWL	Associate	United Arab Emirates	Dividends	525	-
Foreign	Kowa Company Ltd.	Entity with joint control	Japan	Sale of products	67,529	42,772
Foreign	Kowa Company Ltd.	Entity with joint control	Japan	Sale of services	-	92
Foreign	NU3 B.V.	Associate	The Netherlands	Sale of products	10,323	7,629
Foreign	NU3 B.V.	Associate	The Netherlands	Sale of services	76	79
Foreign	NU3 N.V.	Associate	Belgium	Sale of products	10,283	7,847
Foreign	SQM Agro India PYT Ltd.	Associate		Sale of products	-	77
Foreign	SQM Thailand Co.Ltd.	Associate		Sale of products	1,583	1,175
Foreign	SQM Thailand Co.Ltd.	Associate		Dividends	309	-
77.557.430-5	Sales de Magnesio Ltda	Associate	Chile	Sale of products	567	734
77.557.430-5	Sales de Magnesio Ltda	Associate	Chile	Dividends	-	385
77.557.430-5	Sales de Magnesio Ltda	Associate	Chile	Sale of services	347	270
78.062.420-5	Minera Saskatchewan Ltda ( PCS )	Other related party	Chile	Sale of products	-	44,791
78.062.420-5	Minera Saskatchewan Ltda ( PCS )	Other related party	Chile	Sale of services	423	154

76

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 8 - Information for disclosure on related parties, continued

8.7  Trade and other receivables due from related parties, current:

			9/30/2010		12/31/2009		1/1/2009
Taxpayer ID	Company	Currency	ThUS$		ThUS$		ThUS$
77.557.430-5	Sales de Magnesio Ltda.	US Dollar		260		292		143
96.511.530-7	Soc.de Inversiones Pampa Calichera	US Dollar		8		8		8
78.062.420-5	Minera Saskatchewan  Ltda.	US Dollar		-		32,588		-
Foreign	Doktor Tarsa Tarim Sanayi AS	US Dollar		538		7,304		13.641
Foreign	Nutrisi Holding N.V.	Euro		1,645		1,741		1.702
Foreign	Ajay Europe S.A.R. L.	US Dollar		2,823		1,492		4.061
Foreign	Ajay North America LLC.	US Dollar		4,875		2,914		2.520
Foreign	Abu Dhabi Fertilizer Industries WWL	US Dollar		3,530		3,546		6.579
Foreign	NU3 B.V.	Euro		1,457		1,883		772
Foreign	Misr Speciality Fertilizers	US Dollar		332		289		632
Foreign	Kowa Company Ltd.	US Dollar		23,418		15,764		18.170
Foreign	SQM Thailand Co. Ltd.	US Dollar		1,141		835		-
Foreign	SQM Agro India	US Dollar		-		-		595
Foreign	SQM East Med Turkey	US Dollar		-		-		1.075
Foreign	NU3 N.V.	Euro		-		-		1.129
Total to the present date				40,027		68,656		51,027

8.8  Trade and other receivables due from related parties, non-current:

			9/30/2010		12/31/2009		1/1/2009
Taxpayer ID	Company	Currency	ThUS$		ThUS$		ThUS$
Foreign	Abu Dhabi Fertilizer Industries WWL a.	US Dollar		-		-		2,000
Total to the present date				-		-		2,000

77

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 8 - Information for disclosure on related parties, continued

   8.9  Trade and other payables due to related parties, current:

			9/30/2010		12/31/2009		1/1/2009
Taxpayer ID	Company	Currency	ThUS$		ThUS$		ThUS$
79.049.778-9	Callegari Agrícola S.A.	Chilean peso		3		234		-
Foreign	NU3 N.V.	US Dollar		1,232		94		-
Foreign	SQM Vitas	United Arab Emirates Dirham		2,504		2,883		-
Foreign	Coromandel Fertilizers Limited	Indian Rupee		593		681		-
Foreign	SQM Thailand Co. Ltd.	Euro		-		-		178
Total to the present date				4.332		3,892		178

    8.10   Board of Directors and Senior Management

1) Board of Directors

SQM S.A. is managed by a Board of Directors which is composed of eight regular directors who are elected for a four-year period. The present Board of Directors was elected by the shareholders at the Ordinary Shareholders' Meeting of April 30, 2008.

As of September 30, 2010, the Company has an Audit Committee which is composed of three members of the Board of Directors. This Committee performs those duties provided in Article 50 bis of Law No. 18,046.

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 participation. In addition, there were no transactions conducted between the Company, its directors or members of Senior Management.

78

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 8 - Information for disclosure on related parties, continued

2) Directors’ Compensation

2.1       2010

2.1.1 Board of Directors

Director’s compensation is detailed as follows:

a) A payment of a monthly fixed gross amount of UF 300 in favor of SQM Chairman and UF 50 in favor of the seven remaining board members regardless of their attendance to Board meetings or the number of meetings to which they attend.

b) A payment in domestic currency and in favor of the Chairman of the Board of Directors consisting in variable and gross amount equivalent to 0.35% of total profit for the period which SQM S.A. effectively obtains during fiscal year 2010.

c) A payment in domestic currency in favor of each Company’s directors excluding the Chairman of the Board, consisting of variable and gross amount equivalent to 0.04% of the total profit for the period which SQM S.A. effectively obtain during fiscal year 2010.

d) Fixed and variable amounts indicated will not be subject to any charge between them and those expressed in percentage will be paid immediately after the shareholders at the respective Annual General Shareholders’ Meeting of SQM 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 commercial year ending December 31, 2010.

2.1.2 Audit Committee

The remuneration of the Audit Committee is detailed as follows:

a) A payment of a monthly, fixed and gross amount of UF 17 in favor of each of the 3 Directors who are a part of the Company’s Audit Committee regardless of the number of meetings which are conducted during the respective month.

b) A payment in domestic currency and in favor of each of the 3 Directors of a variable and gross amount equivalent to 0.013% of the Company’s total profit for the period,  which SQM S.A. effectively obtains during fiscal year 2010.

79

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 8 - Information for disclosure on related parties, continued

2.2   2009

2.2.1 Directors’ Compensation and Committee

During 2009, the Company has paid to its directors an annual amount of UF 300 to the Chairman and UF 50 to each of the seven remaining board members regardless of attendance to Board meetings or the number of meetings to which they attended.

In addition, the directors have received variable remuneration consistent in 0.5% of net revenue of 2008 for the Chairman and 0.5% of net revenue for 2008 divided in equal parts for each of the seven remaining board members.

Therefore, remuneration and profit share paid to the members of the Audit Committee and the directors during 2009 amounted to ThUS$6,507. As of September 30, 2010, the amount of ThUS$ 2,340 has been paid.

In April 2009, at the General Ordinary Shareholders’ Meeting of SQM S.A. the shareholders agreed to change the percentages of variable benefit for 2009; i.e., to 0.35% of net income for 2009 for the Chairman and 0.04% of net revenue for 2009 to each of the remaining seven directors.

80

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 8 - Information for disclosure on related parties, continued

3) No guarantees have been constituted in favor of directors.

4) Senior Management remuneration

As of September 30, 2010, the overall remuneration paid to the 107 main executives amounts to ThUS$15,419. (ThUS$14,760 as of September 30, 2009.)  This includes monthly fixed remuneration and variable performance bonuses.

SQM S.A. for its executives has defined annual bonus plans related to goal achievement and level of individual contribution to the Company’s income. These incentives are structured in a minimum and maximum of gross remuneration which are paid once a year or every two years.

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 2010 and 2011.

5) No guarantees have been constituted in favor of the Company’s management.

6) The Company’s Managers and Directors do not receive or have not received any benefit during the second quarter ended as of September 30, 2010 or retribution for the concept of pensions, life insurance, paid time off, profit sharing, incentives, benefits due to disability other than those mentioned in the preceding numbers.

7) In accordance with IAS No. 24 paragraph 9, letter f) we must inform that our Director Wolf Von Appen B. is a part of the Ultramar Group. As of September 30, 2010, the amount of operations with this Group is approximately ThUS$7,935.

81

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 9 - Financial Instruments

In accordance with IAS 39, financial assets are detailed as follows:

9.1   Classes of other financial assets

Classes of other financial assets	9/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Other current financial assets (1)		-		15,045		20,121
Derivative instruments (2)		3,181		9,153		1,599
Hedging assets, current		74,474		51,339		-
Total other current financial assets		77,655		75,537		21,720
Other non-current financial assets (3)		115		113		101

(1) Relates to a time deposit with Banco Santander and Banco BCI which expires in more than 90 days.

(2) Relate to forwards and options which were not classified as hedging instruments.

(3) Relate to guarantees delivered for the lease of offices and investments in Sociedad Garantizadora de Pensiones (ownership of 3%.)

9.2   Trade and other receivables

a)  Trade and other receivables, net:

Description of the class of trade and other receivables. net:	9/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Trade and other receivables current, net		430,840		325,823		334,791
Trade receivables		403,374		309,765		328,044
Other receivables		27,466		16,058		6,747
Trade and other receivables non-current, net		3,873		4,208		766
Other receivables		3,873		4,208		766
Total		434,713		330,031		335,557

82

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 9 - Financial Instruments, continued

b) Trade and other receivables, gross:

Classes of trade and other receivables, gross	9/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Trade and other receivables current, gross		450,036		342,906		348,066
Trade receivables		420,534		326,192		339,932
Other receivables		29,502		16,714		8,134
Trade and other receivables non-current, gross		3,873		4,208		766
Other receivables		3,873		4,208		766
Total to the present date		453,909		347,114		348,832

c) Detail of financial assets past due and not paid but not impaired

Financial assets past due. not paid but not impaired are composed of the following: Trade and other receivables as of September 30, 2010 and December 31, 2009.

							Balances as of 9/30/2010
Financial assets	Expiring in less than three months		Expiring between three and six months		Expiring between six and twelve months		Expiring in more than twelve months		Total ThUS$
Trade and other receivables		18,699		16,750		12,333		3,932		51,714
Total		18,699		16,750		12,333		3,932		51,714

							Balances as of 12/31/2009
Financial assets	Expiring in less than three months		Expiring between three and six months		Expiring between six and twelve months		Expiring in more than twelve months		Total ThUS$
Trade and other receivables		36,956		7,107		713		6,370		51,146
Total		36,956		7,107		713		6,370		51,146

83

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 9 - Financial Instruments, continued

d) Detail of impaired financial assets

At the end of each period, the financial assets included in trade and other receivables have been subject to value impairment tests and there are indications of impairment in the value of these.

The Company and its subsidiaries record an allowance for doubtful accounts when in the Company’s management’s opinion, all collection means have been depleted or there are certain doubts as to the recovery of trade and other receivables.

Financial assets	9/30/2010 ThUS$			12/31/2009 ThUS$			1/1/2009 ThUS$
Trade and other receivables		(19,196	)		(17,083	)		(13,279	)
Balance		(19,196	)		(17,083	)		(13,279	)

Reconciliation of variations in the allowance for impairment of trade and other receivables.

	9/30/2010 ThUS$			12/31/2009 ThUS$			1/1/2009 ThUS$
Opening balance		17,083			13,279			10,649
Impairment for the period		2,028			3,716			4,700
Write-offs		(118	)		(199	)		(1,042	)
Exchange difference		203			1,214			(855	)
Other		-			(927	)		(173	)
Total		19,196			17,083			13,279

84

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 9 - Financial Instruments, continued

9.3 Current hedging assets

The balance relates to derivative financial instruments measured at fair value, which have been classified as foreign currency translation hedging and interest rate hedges associated with all the Company’s obligations related to bonds payable in Chilean pesos and in UF.  As of September 30, 2010, the face value of cross currency swap contracts amounted to ThUS$413,183, as of December 31, 2009 amounted to ThUS$415,749, as of September 30, 2009 amounted to ThUS$357,894 and as of January 1, 2009 amounted to ThUS$ 113,025.

Hedging assets. current	Derivative instruments (CCS)		Effect on profit or loss for the period, derivative Instruments		Hedging reserve in equity. gross			Deferred income Hedging reserve in equity			Hedging reserve in equity
	ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
September 30, 2010		74,474		29,059		(15,302	)		2,601			(12,701	)
September 30, 2009		28,511		25,146		3,365			(572	)		2,793

Hedging assets. current	Derivative instruments (CCS)		Effect on profit or loss for the period, derivative Instruments		Hedging reserve in equity. gross		Deferred income Hedging reserve in equity			Hedging reserve in equity
	ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
December 31, 2009		51,339		68,533		9,619		(1,635	)		7,984

Balances in the column, Effects on profit or loss consider the annual affects of contracts which were in force as of September 30, 2010, December 31, 2009, September 30, 2009 and January 1, 2009.

85

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 9 - Financial Instruments, continued

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 hedging the exchange rate financial risks associated with bonds payable. Hedges are documented and tested to measure its 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 payments.

9.4 Financial liabilities

As of September 30, 2010, December 31, 2009 and January 1, 2009, financial liabilities are detailed as follows:

Classes of interest-bearing (accruing) loans	9/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Current interest-bearing loans
Bank loans (a)		86,335		220,756		133,587
Derivative instruments (9.6)		33,978		4,232		7,158
Current hedging liabilities		-		-		11,031
Unsecured obligations (b)		20,384		43,867		7,344
Total		140,697		268,855		159,120
Non-current interest-bearing loans
Bank loans (c)		219,987		363,808		229,680
Unsecured obligations (d)		934,716		660,542		281,662
Total		1,154,703		1,024,350		511,342

86

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 9 - Financial Instruments, continued

a) Current bank loans:

As of September 30, 2010, December 31, 2009 and January 1, 2009, the breakdown of this caption is as follows:

Debtor			Creditor			Type of						9/30/2010 Current maturities
Taxpayer ID	Subsidiary	Country	Taxpayer ID	Financial institution	Country	currency or adjustment index	Type of repayment	Effective rate		Nominal rate		Up to 90 days ThUS$		Between 91 days and 1 year ThUS$			Total ThUS$
79.947.100-0	SQM Industrial S.A.	Chile	97.951.000-4	HSBC Bank Chile	Chile	USD	Expiration date	0.87	%	0.87	%		14,513		-			14,513
93.007.000-9	SQM S.A.	Chile	Foreign	Banco Estado NY Branch	United States	USD	Expiration date	3.93	%	3.77	%		-		20,021			20,021
93.007.000-9	SQM S.A.	Chile	Foreign	Banco Estado NY Branch	United States	USD	Expiration date	3.93	%	3.77	%		-		10,007			10,007
93.007.000-9	SQM S.A.	Chile	Foreign	Banco Estado NY Branch	United States	USD	Expiration date	2.71	%	2.61	%		1,561		-			1,561
93.007.000-9	SQM S.A.	Chile	Foreign	BBVA Banco Bilbao Vizcaya Argentaria	Chile	USD	Expiration date	0.74	%	0.74	%		20,001		-			20,001
79.626.800-K	SQM Salar S.A.	Chile	97.018.000-1	Scotiabank Sud Americano	Chile	USD	Expiration date	0.74	%	0.74			20,,000					20,000
Foreign	Royal Seed Trading Corporation A.V.V.	Aruba	Foreign	ING Capital LLC	United States	USD	Expiration date	1.31	%	1.11	%		309		-			309
Total													56,384		30,028			86,412
Borrowing costs													-		(77	)		(77	)
Total													56,384		29,951			86,335

87

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 9 - Financial Instruments, continued

Debtor			Creditor			Type of						12/31/2009 Current maturities
Taxpayer ID	Subsidiary	Country	Taxpayer ID	Financial institution	Country	Currency or adjustment index	Type of repayment	Effective rate		Nominal rate		Up to 90 days ThUS$			Between 91 days and 1 year  ThUS$			Total ThUS$
79.947.100-0	SQM Industrial S.A.	Chile	97.951.000-4	HSBC Bank Chile	Chile	USD	Expiration date	4.74	%	4.74	%		15,090			-			15,090
93.007.000-9	SQM S.A.	Chile	Foreign	Banco Estado NY Branch	United States	USD	Expiration date	2.68	%	2.68	%		-			656			656
93.007.000-9	SQM S.A.	Chile	97.030.000-7	Banco Estado	Chile	USD	Expiration date	4.66	%	4.66	%		20,813			-			20,813
93.007.000-9	SQM S.A.	Chile	Foreign	Banco Estado NY Branch	United States	USD	Expiration date	3.98	%	3.98	%		223			-			223
93.007.000-9	SQM S.A.	Chile	Foreign	Banco Estado NY Branch	United States	USD	Expiration date	3.98	%	3.98	%		109			-			109
93.007.000-9	SQM S.A.	Chile	97.032.000-8	BBVA Chile	Chile	USD	Expiration date	4.51	%	4.51	%		20,762			-			20,762
93.007.000-9	SQM S.A.	Chile	97.032.000-8	BBVA Chile	Chile	USD	Expiration date	4.46	%	4.46	%		10,376			-			10,376
93.007.000-9	SQM S.A.	Chile	Foreign	Caja de Ahorro y Monte de Piedad	United States	USD	Expiration date	3.08	%	2.56	%		43			-			43
Foreign	Royal Seed Trading Corporation A.V.V..	Aruba	Foreign	BBVA Banco Bilbao Vizcaya Argentaria	United States	USD	Expiration date	1.22	%	0.69	%		100,053			-			100,053
Foreign	Royal Seed Trading Corporation A.V.V.	Aruba	Foreign	ING Capital LLC	United States	USD	Expiration date	0.95	%	0.80	%		-			55			55
Foreign	SQM Investment Corporation N.V.	Dutch Antilles	Foreign	Export Development Canada	United States	USD	Expiration date	2.47	%	1.93	%		-			50,019			50,019
Foreign	Fertilizantes Naturales S.A.	Spain	Foreign	Other banks	Spain	Euro	Expiration date	-		-			-			3,327			3,327
Total													167,469			54,057			221,526
Borrowing costs													(653	)		(117	)		(770	)
Total													166,816			53,940			220,756

88

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 9 - Financial Instruments, continued

Debtor			Creditor			Type of						1/1/2009 Current maturities
Taxpayer ID	Subsidiary	Country	Taxpayer ID	Financial institution	Country	currency or adjustment index	Type of repayment	Effective rate		Nominal rate		Up to 90 days ThUS$			Between 91 days and 1 year ThUS$			Total ThUS$
79.947.100-0	SQM Industrial S.A.	Chile	97.006.000-6	Banco Crédito e Inversiones	Chile	USD	Expiration date	10.12	%	10.12	%		15,346			-			15,346
93.007.000-9	SQM S.A.	Chile	97.006.000-6	Banco Crédito e Inversiones	Chile	USD	Expiration date	6.00	%	6.00	%		-			10,085			10,085
93.007.000-9	SQM S.A.	Chile	Foreign	JP Morgan Chase Bank	United States	USD	Expiration date	6.63	%	6.63	%		-			20,317			20,317
93.007.000-9	SQM S.A.	Chile	97.006.000-6	Banco Crédito e Inversiones	Chile	USD	Expiration date	6.12	%	6.12	%		-			10,087			10,087
93.007.000-9	SQM S.A.	Chile	97.032000-8	BBVA Chile	Chile	USD	Expiration date	4.62	%	4.62	%		10,021			-			10,021
93.007.000-9	SQM S.A.	Chile	97.032000-8	BBVA Chile	Chile	USD	Expiration date	7.87	%	7.87	%		10,166			-			10,166
93.007.000-9	SQM S.A.	Chile	97.032000-8	BBVA Chile	Chile	USD	Expiration date	8.00	%	8.00	%		20,338			-			20,338
79.626.800-K	SQM Salar S.A.	Chile	97.036.000-K	Banco Santander Santiago	Chile	USD	Expiration date	6.25	%	6.25	%		-			10,038			10,038
79.626.800-K	SQM Salar S.A.	Chile	97.036.000-K	Banco Santander Santiago	Chile	USD	Expiration date	6.02	%	6.02	%		10,037			-			10,037
79.626.800-K	SQM Salar S.A.	Chile	97.951.000-4	HSBC Bank Chile	Chile	USD	Expiration date	7.80	%	7.80	%		-			15,267			15,267
Foreign	Royal Seed Trading Corporation A.V.V.	Aruba	Foreign	Banco Bilbao Vizcaya Argentaria	United States	USD	Expiration date	3.01	%	2.63	%		204			-			204
Foreign	Royal Seed Trading Corporation A.V.V.	Aruba	Foreign	ING Capital LLC	United States	USD	Expiration date	3.19	%	2.93	%		-			215			215
Foreign	SQM Investment Corporation N.V.	Dutch Antilles	Foreign	Export Development Canada	United States	USD	Expiration date	3.73	%	3.33	%		-			32			32
Foreign	SQM Dubai - Fzco	United Arab Emirates	Foreign	HSBC Bank Middle East Ltd.	United Arab Emirates	Dirham	Expiration date	-		-			21			-			21
Foreign	Fertilizantes Naturales S.A.	Spain	Foreign	Other banks	Spain	Euro	Expiration date	-		-			-			1,632			1,632
Total													66,133			67,673			133,806
Borrowing costs													(102	)		(117	)		(219	)
Total													66,031			67,556			133,587

89

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 9 - Financial Instruments, continued

b) Unsecured obligations, current:

As of September 30, 2010, December 31, 2009 and January 1, 2009, the breakdown of the caption Unsecured current interest-bearing obligations is as follows:

Promissory notes

ID or registration No. of the		Adjustment			Expiration date of the note of line of	Interest			Carrying value ThUS$
instrument	Series	unit	Face value		Credit	rate			9/30/2010		12/31/2009		1/1/2009
47	1-B	$		15,000,000,000	3-17-2010		3.6	%		-		29,363		-
Total										-		29,363		-

On March 17, 2010, was paid the promissory note No. 47 series 1-B Capital amounting to ThUS$29,040

90

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 9 - Financial Instruments, continued

Bonds

Debtor																Periodicity		9/30/2010 Current maturities
Taxpayer ID	Subsidiary	Country	Placement in Chile or abroad	No. of registration or ID of the instrument		Series	Placed face outstanding value		Adjustment unit	Effective rate			Nominal rate			Payment of interest	Amortization	Up to 90 days  ThUS$			Between 91 days and 1 year ThUS$			Total ThUS$
93.007.000-9	SQM S.A	Chile	Abroad			single		-	US$		6.79	%		6.13	%	Semi-annual	Expiration date		5,623			-			5,623
93.007.000-9	SQM S.A	Chile	Chile		446	C		150.000	UF		6.63	%		4.00	%	Semi-annual	Semi-annual		4,740			3,310			8,050
93.007.000-9	SQM S.A	Chile	Chile		564	H		-	UF		6.43	%		4.90	%	Semi-annual	Semi-annual		-			2,020			2,020
93.007.000-9	SQM S.A	Chile	Chile		563	G		-	$		6.19	%		7.00	%	Semi-annual	Expiration date					706			706
93.007.000-9	SQM S.A	Chile	Chile		563	I		-	UF		5.88	%		3.00	%	Semi-annual	Expiration date		-			-			-
93.007.000-9	SQM S.A	Chile	Chile		563	J		-	$		5.37	%		5.50	%	Semi-annual	Expiration date		-			-			-
93.007.000-9	SQM S.A.	Chile	Abroad			Single		-	US$		5.92	%		5.50	%	Semi-annual	Expiration date		6,086			-			6,086
				Total															16,449			6,036			22,485
				Bond issuance costs															(931	)		(1,170	)		(2,101	)
				Total															15,518			4,866			20,384

Effective rates of bonds in Chilean pesos and UF are expressed and calculated in U.S. dollars based on the flows expected in Cross Currency Swap Agreements.

91

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 9 - Financial Instruments, continued

Debtor																Periodicity		12/31/2009 Current maturities
Taxpayer ID	Subsidiary	Country	Placement in Chile or abroad	No. of registration or ID of the instrument		Series	Placed face outstanding value		Adjustment unit	Effective rate			Nominal rate			Payment of interest	Amortization	Up to 90 days  ThUS$			Between 91 days and 1 year ThUS$			Total ThUS$
93.007.000-9	SQM S.A	Chile	Abroad			single		-	US$		6.79	%		6.13	%	Semi-annual	Expiration date		-			2.577			2.577
93.007.000-9	SQM S.A	Chile	Chile	��	446	C		150.000	UF		6.63	%		4.00	%	Semi-annual	Semi-annual		-			6.537			6.537
93.007.000-9	SQM S.A	Chile	Chile		564	H		-	UF		6.43	%		4.9	%	Semi-annual	Semi-annual		3,891			-			3.891
93.007.000-9	SQM S.A	Chile	Chile		563	G		-	$		6.19	%		7.00	%	Semi-annual	Expiration date		1,386			-			1.386
93.007.000-9	SQM S.A	Chile	Chile		563	I		-	UF		5.88	%		3.00	%	Semi-annual	Expiration date		461			-			461
93.007.000-9	SQM S.A	Chile	Chile		563	J		-	$		5.37	%		5.50	%	Semi-annual	Expiration date		1,391			-			1.391
				Total															7,129			9,114			16,243
				Bond issuance costs															(1,169	)		(570	)		(1,739	)
				Total															5,960			8,544			14,504

Debtor																Periodicity		1/1/2009 Current maturities
Taxpayer ID	Subsidiary	Country	Placement in Chile or abroad	No. of registration or ID of the instrument		Series	Placed face outstanding value		Adjustment unit	Effective rate			Nominal rate			Payment of interest	Amortization	Up to 90 days  ThUS$		Between 91 days and 1 year ThUS$			Total ThUS$
93.007.000-9	SQM S.A	Chile	Abroad			single		-	US$		6.79	%		6.13	%	Semi-annual	Expiration date		-		2.577			2.577
93.007.000-9	SQM S.A	Chile	Chile		446	C		150.000	UF		6.63	%		4.00	%	Semi-annual	Semi-annual		-		5.353			5.353
				Total															-		7.930			7.930
				Bond issuance costs															-		(586	)		(586	)
				Total															-		7.344			7.344

92

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 9 - Financial Instruments, continued

c) Classes of non-current interest-bearing loans

The detail of non-current interest-bearing loans as of September 30, 2010, December 31, 2009 and January 1, 2009 is as follows:

Non-current interest-bearing bank loans

Debtor			Creditor											9/30/2010 Years to maturity
Taxpayer ID	Subsidiary	Country	Taxpayer ID	Financial institution	Country	Currency or adjustment unit	Amortization period	Effective rate			Nominal rate			1 to 3 years ThUS$			3 to 5 years ThUS$		More than 5 years ThUS$		Total ThUS$
93.007.000-9	SQM S.A.	Chile	Foreign	Banco Estado NY Branch	United States	USD	Expiration date		2.71	%		2.61	%		-			140,000		-		140,000
Foreign	Royal Seed Trading Corporation A.V.V.	Aruba	Foreign	ING Capital LLC	United States	USD	Expiration date		1.31	%		1.11	%		80,000			-		-		80,000
Total															80,000			140,000-		-		220,000
Borrowing costs															(13	)		-		-		(13	)
Total															79,987			140,000-		-		219,987

Debtor			Creditor											12/31/2009 Years to maturity
Taxpayer ID	Subsidiary	Country	Taxpayer ID	Financial institution	Country	Currency or Adjustment unit	Amortization period	Effective rate			Nominal rate			1 to 3 years ThUS$			3 to 5 years ThUS$		More than 5 years ThUS$		Total ThUS$
93.007.000-9	SQM S.A.	Chile	Foreign	Banco Estado NY Branch	United States	USD	Expiration date		2.68	%		2.68	%		-			140,000		-		140,000
93.007.000-9	SQM S.A.	Chile	Foreign	Caja de Ahorro y Monte de Piedad	United States	USD	Expiration date		3.08	%		2.56	%		40,000			-		-		40,000
93.007.000-9	SQM S.A.	Chile	Foreign	Banco Estado NY Branch	United States	USD	Expiration date		3.98	%		3.98	%		10,000			-		-		10,000
93.007.000-9	SQM S.A.	Chile	Foreign	Banco Estado NY Branch	United States	USD	Expiration date		3.98	%		3.98	%		20,000			-		-		20,000
Foreign	Royal Seed Trading Corporation A.V.V.	Aruba	Foreign	BBVA Bancomer	United States	USD	Expiration date		4.07	%		3.25	%		75,000			-		-		75,000
Foreign	Royal Seed Trading Corporation A.V.V.	Aruba	Foreign	ING Capital LLC	United States	USD	Expiration date		0.95	%		0.80	%		80,000			-		-		80,000
Total															225,000			140,000		-		365,000
Borrowing costs															(1.192	)		-		-		(1,192	)
Total															223,808			140,000		-		363,808

93

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 9 – Financial instruments, continued

Debtor			Creditor											1/1/2009 Years to maturity
Taxpayer ID	Subsidiary	Country	Taxpayer ID	Financial institution	Country	Currency or adjustment unit	Amortization period	Effective rate			Nominal rate			1 to 3 years ThUS$			3 to 5 years ThUS$		More than 5 years ThUS$		Total ThUS$
Foreign	Royal Seed Trading Corporation A.V.V.	Aruba	Foreign	BBVA Banco Bilbao Vizcaya Argentaria	United States	USD	Expiration date		3.01	%		2.63	%		100,000			-		-		100,000
Foreign	Royal Seed Trading Corporation A.V.V.	Aruba	Foreign	ING Capital LLC	United States	USD	Expiration date		3.19	%		2.93	%		80,000			-		-		80,000
Foreign	SQM Investment Corporation N.V.	Dutch Antilles	Foreign	Export Development Canada	United States	USD	Expiration date		3.73	%		3.33	%		50,000			-		-		50,000
Total															230,000			-		-		230,000
Borrowing costs															(320	)						(320	)
Total															229,680			-		-		229,680

d) Non-current unsecured interest-bearing obligations

The breakdown of non-current unsecured interest-bearing obligations as of September 30, 2010, December 31, 2009 and January 1, 2009 is as follows:

Debtor																Periodicity		9/30/2010 Non- Current maturities
Taxpayer ID	Subsidiary	Country	Placement in Chile or abroad	No. of registration or ID of the instrument		Series	Placed face outstanding value		Bond adjustment unit	Effective rate			Nominal rate			Payment of interest	Amortization	1 to 3 years ThUS$		3 to 5 years ThUS$			More than 5 years ThUS$			Total ThUS$
93.007.000-9	SQM S.A	Chile	Abroad			single		200.000.000	US$		6.79	%		6.13	%	Semi-annual	Expiration date		-		-			200,000			200,000
93.007.000-9	SQM S.A	Chile	Chile		446	C		2.325.000	UF		6.63	%		4.00	%	Semi-annual	Semi-annual		13,239		13,239			76,127			102,605
93.007.000-9	SQM S.A	Chile	Chile		564	H		4.000.000	UF		6.43	%		4.9	%	Semi-annual	Semi-annual		-		-			176,524			176,524
93.007.000-9	SQM S.A	Chile	Chile		563	G		21.000.000.000	$		6.19	%		7.00	%	Semi-annual	Expiration date		-		43,428			-			43,428
93.007.000-9	SQM S.A	Chile	Chile		563	I		1.500.000	UF		5.88	%		3.00	%	Semi-annual	Expiration date		-		66,197			-			66,197
93.007.000-9	SQM S.A	Chile	Chile		563	J		52.000.000.000	$		5.37	%		5.50	%	Semi-annual	Expiration date				107,536			-			107,536
93.007.000-9	SQM S.A.	Chile	Abroad			single		250.000.000	US$		5.92	%		5.50	%	Semi-annual	Expiration date		-		-			250,000			250,000
				Total															13,239		230,400			702,651			946,290
				Bond issuance costs															-		(2,556	)		(9,018	)		(11,574	)
				Total															13,239		227,844			693,633			934,716

94

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 9 - Financial instruments (continued)

Debtor																Periodicity		12/31/2009 Non- Current maturities
Taxpayer ID	Subsidiary	Country	Placement in Chile or abroad	No. of registration or ID of the instrument		Series	Placed face outstanding value		Bond Adjustment unit	Effective rate			Nominal rate			Payment of interest	Amortization	1 to 3 years ThUS$			3 to 5 years ThUS$			More than 5 years ThUS$			Total ThUS$
93.007.000-9	SQM S.A	Chile	Abroad			single		200.000.000	US$		6.79	%		6.13	%	Semi-annual	Expiration date		-			-			200,000			200,000
93.007.000-9	SQM S.A	Chile	Chile		446	C		2.400.000	UF		6.63	%		4.00	%	Semi-annual	Semi-annual		6,195			6,195			86,729			99,119
93.007.000-9	SQM S.A	Chile	Chile		564	H		4.000.000	UF		6.43	%		4.9	%	Semi-annual	Semi-annual		-			-			165,197			165,197
93.007.000-9	SQM S.A	Chile	Chile		563	G		21.000.000.000	$		6.19	%		7.00	%	Semi-annual	Expiration date		-			41,412			-			41,412
93.007.000-9	SQM S.A	Chile	Chile		563	I		1.500.000	UF		5.88	%		3.00	%	Semi-annual	Expiration date		-			61,949			-			61,949
93.007.000-9	SQM S.A	Chile	Chile		563	J		52.000.000.000	$		5.37	%		5.50	%	Semi-annual	Expiration date					102,544			-			102,544
				Total															6,195			212,100			451,926			670,221
				Bond issuance costs															(731	)		(3,739	)		(5,209	)		(9,679	)
				Total															5,464			208,361			446,717			660,542

Debtor																Periodicity		01/01/2009 Non- Current maturities
Taxpayer ID	Subsidiary	Country	Placement in Chile or abroad	No. of registration or ID of the instrument		Series	Placed face outstanding value		Bond adjustment unit	Effective rate			Nominal rate			Payment of interest	Amortization	1 to 3 years ThUS$			3 to 5 years ThUS$			More than 5 years ThUS$			Total ThUS$
93.007.000-9	SQM S.A	Chile	abroad			single		200.000.000	US$		6.79	%		6.13	%	Semi-annual	Expiration date		-			-			200,000			200,000
93.007.000-9	SQM S.A	Chile	Chile		446	C		2.550.000	UF		6.63	%		4.00	%	Semi-annual	Semi-annual		5,056			5,056			75,828			85,940
				Total															5,056			5,056			275,828			285,940
				Bond issuance costs															(781	)		(438	)		(3,059	)		(4,278	)
				Total															4,275			4,618			272,769			281,662

95

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 9 - Financial instruments, continued

e) Additional Information

-           Bonds

As of September 30, 2010, December 31, 2009 and January 1, 2009, ThUS$22,485,  ThUS$16,243 and ThUS$7,930, respectively are presented at short-term related to principal, short-term portion plus interest accrued at that date, not including borrowing costs and bonds issuance costs . In the long-term, non-current, the Company presented ThUS$946,290 as of September 30, 2010, ThUS$670,221 as of December 31, 2009 and ThUS$285,940 as of January 1, 2009 related to principal installments of Series C bonds, unique Series bonds, Series G bonds, Series H bonds, Series J bonds, Series I bonds and single series second issuance bonds.

As of September 30, 2010, December 31, 2009 and January 1, 2009 the detail of each issuance is as follows:

Series “C” bonds

On January 25, 2006, the Company placed Series C bonds for UF 3,000,000 (ThUS$101,918) at an annual rate of 4.00%

As of September 30, 2010, September 30, 2009, the following cash payments have been made with a debit to Series C bonds:

Payments made	9/30/2010				9/30/2009
	UF		ThUS$		UF		ThUS$
Principal		75,000,00		2,993		75,000,00		2,787
Interest		50,500,20		2,576		53,470,80		1,987

Single Series Bonds

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 September 30, 2010 and September 30, 2009, the following cash payments have been made with a debit to Single Series bonds:

	9/30/2010 ThUS$		9/30/2009 ThUS$
Payments of interest		6,125		6,125

96

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 9 - Financial instruments, 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 single payment at the expiration of the term and annual interest rate of 7%.

As of September 30, 2010 and September 30, 2009, the following cash payments have been made with a charge to the Series G and H bonds line:

	9/30/2010 ThUS$		9/30/2009 ThUS$
Payment of interest for Series “G” bonds		2,750		1,330
Payment of interest for Series “H” bonds		7,763		3,727

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 expiration of the term and annual interest rate of 3.00%.

As of September 30, 2010 and September 30, 2009 the following cash payments have been made with a debit to Series J and I bonds:

	9/30/2010 ThUS$		9/30/2009 ThUS$
Payment of interest for Series “J” bonds		5,588		2,583
Payment of interest for Series “I” bonds		1,873		852

97

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 9 - Financial instruments, continued

Single Series bonds

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 expiring beginning on the aforementioned date with annual interest rate of 5.5% and destined to refinance long-term liabilities.

As of September 30, 2010, there are no payments of interest or principal associated with this bond

- Commercial papers (promissory notes)

On March 24, 2009, the Company placed promissory notes totaling ThCh$15,000,000 (ThUS$25,875) in the Chilean market. These notes are denominated series 2-A, line 46 and mature in 10 years. The maximum amount that can be issued is UF 1,500,000.

On December 15, 2009, the Company repaid Series 2-A.

On April 2, 2009, the Company placed promissory notes totaling ThCh$15,000,000 (ThUS$25,770) in the Chilean market. These notes are denominated series 1-B, line 47 and mature in 10 years. The maximum amount that can be issued is UF 1,500,000.

Payments made	2010				2009
	ThCh$		ThUS$		ThCh$		ThUS$
Principal, Series 2-A		-		-		15,000,000		30,270
Principal, Series 1-B		15,000,000		29,040		-		-

9.5 Trade and other payables

Class of trade and other payables	09/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Current trade and other payables
Trade payables		161,294		182,718		109,465
Rentals		282		300		226
Other payables		752		1,177		1,111
Total		162,328		184,195		110,802
Non-current trade and other payables
Trade payables		-		-		-
Rentals		-		187		398
Total		-		187		398

98

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 9 - Financial instruments, continued

9.6 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 by type of instrument is as follows:

Financial liabilities at fair value through profit or loss	9/30/2010		Effect on profit or loss as of 9/30/2010			12/31/2009		Effect on profit or loss as of 12/31/2009			1/1/2009
	ThUS$		ThUS$			ThUS$		ThUS$			ThUS$
Current
Derivative instruments (forwards)		28,230		(28,230	)		3,993		(3,993	)		5,029
Derivative instruments  (options)		5,748		(5,748	)		239		(239	)		2,129
		33,978		(33,978	)		4,232		(4,232	)		7,158

Balances in the column effect on profit or loss consider the annual affects of agreements which were in force as of September 30, 2010.

99

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 9 - Financial instruments, continued

9.7 Financial asset and liability categories

Description of financial assets	9/30/2010 Amount ThUS$		12/31/2009 Amount ThUS$		1/1/2009 Amount ThUS$
Financial assets at fair value through profit or loss		-		-		-
Financial assets held for trading		-		-		-
Investments held to maturity		77,770		75,650		21,821
Loans and receivables		434,713		330,031		335,557
Financial assets available for sale		-		-		-
Total financial assets		512,483		405,681		357,378

Description of financial liabilities	9/30/2010 Amount ThUS$		12/31/2009 Amount ThUS$		1/1/2009 Amount ThUS$
Financial liabilities at fair value through profit or loss		-		-		-
Total financial liabilities held for trading		-		-		-
Financial liabilities measured at amortized cost		1,457,728		1,477,587		781,662
Total financial liabilities		1,457,728		1,477,587		781,662

100

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 9 - Financial instruments, continued

9.8 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.

On October 15, 2009, SQM Brazil directly provided a guarantee to governmental entities related to legal processes under development which note has been issued by BBVA Bancomer S.A.

As of September 30, 2010 and December 31, 2009, assets pledged as guarantees are as follows:

Restricted cash	9/30/2010 ThUS$		12/31/2009 ThUS$
Isapre Norte Grande Ltda.		492		446
SQM Brasil Limitada		-		21
Total		492		467

9.9          Estimated fair value of financial instruments and derivative financial instruments

As required by IFRS, 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.

101

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 9 - Financial instruments, continued

The detail of the Company’s instruments at carrying value and estimated fair value is as follows:

	9/30/2010				12/31/2009				1/1/2009
	Carrying value ThUS$		Fair  value ThUS$		Carrying value ThUS$		Fair  value ThUS$		Carrying value ThUS$		Fair  value ThUS$
Cash and cash equivalents		615,847		615,847		530,394		530,394		303,799		303,799
Current trade and other receivables		430,840		430,840		325,823		325,823		334,791		334,791
Other current financial assets:
- Time deposits		-		-		15,045		15,045		20,121		20,121
- Derivative instruments		3,181		3,181		9,153		9,153		1,599		1,599
-  Current hedging assets		74,474		74,474		51,339		51,339		-		-
Total other current financial assets		77,655		77,655		75,537		75,537		21,720		21,720
Other non-current financial assets:		115		115		113		113		101		101
Other current financial liabilities
- Bank loans		86,335		86,335		220,756		220,756		133,587		133,587
- Derivative instruments		33,978		33,978		4,232		4,232		7,158		7,158
-  Hedging liabilities		-		-		-		-		11,031		11,031
-  Unsecured obligations		20,384		20,384		43,867		43,867		7,344		7,344
Total other current financial liabilities		140,697		140,697		268,855		268,855		159,120		159,120
Trade payables		162,328		162,328		184,195		184,195		110,802		110,802
Other non-current financial liabilities:
- Bank loans		219,987		223,988		363,808		365,489		229,680		229,585
-  Unsecured obligations		934,716		1,103,491		660,542		734,618		281,662		346,739
Total other non-current financial liabilities		1,154,703		1,327,479		1,024,350		1,100,107		511,342		576,324

Fair value hierarchy

In accordance with IFRS 7 paragraph 27 a and b provides the obligation of disclosing the hierarchy level used to determine the value measurement techniques. Fair value hierarchies correspond to:

- Level 1: when only quoted (unadjusted) prices have been used in active markets.

- 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.

- 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 are those indicated in levels 1 and 2.

102

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 9 – Financial instruments, continued

9.10 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.

Note 10 - Investments and disclosures on Investments in subsidiaries

10.1 Disclosures on investments in subsidiaries

a) Operations executed in 2010

On February 2, 2010, the subsidiary SQM Beijin Comercial was formed, to which Soquimich Industrial S.A. contributed capital of ThUS$100 obtaining equity interest of 100% in that entity.

b) Operations executed in 2009

On July 14, 2009, the subsidiary Comercial Agrorama Callegari Limitada was formed, to which Soquimich Comercial S.A. contributed capital of ThUS$1,021 thereby obtaining equity interest of 70% in that entity

On December 17, 2009, Soquimich European Holdings B.V. acquired 51% of SQM Agro India Private Ltda. for ThUS$50. Through this acquisition, it now holds equity interest of 100% of this entity.  The Company conducted the valuation considering the carrying value of equity of SQM Agro India Private Ltda., which does not significantly differ from its fair value determined at that date.

The Parent Company controls all the subsidiaries in which it has more than 50% direct or indirect voting rights.

103

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 10 - Investments and disclosures on investments in subsidiaries, continued

Below, we detail the financial information as of September 30, 2010 of those companies on which the Group exerts significant influence.

9/30/2010
					Asset						Liability								Net profit
Subsidiary	Country of incorporation	Functional currency	Equity interest %		Current ThUS$		Non- current ThUS$		Total ThUS$		Current ThUS$		Non- current ThUS$		Total ThUS$		Revenue ThUS$		(loss) for the period ThUS$
SQM Nitratos S.A.	Chile	US$		100		572,005		57,675		629,680		553,704		10,701		564,405		80,195		2,462
Proinsa Ltda.	Chile	Ch$		60.58		218		1		219		-		-		-		-		(1	)
SQMC Internacional Ltda.	Chile	Ch$		60.6382		290		-		290		-		-		-		-		(4	)
SQM Potasio S.A.	Chile	US$		99.9974		105,790		608,742		714,532		1		216,714		216,715		-		97,764
Serv. Integrales de Tránsito y Transf. S.A.	Chile	US$		100		133,572		57,831		191,403		166,660		4,020		170,680		33,329		8,399
Isapre Norte Grande Ltda.	Chile	Ch$		100		435		568		1,003		453		142		595		2,952		15
Ajay SQM Chile S.A.	Chile	US$		51		15,584		2,735		18,319		7,512		764		8,276		40,742		1,283
Almacenes y Depósitos Ltda.	Chile	Ch$		100		400		50		450		1		-		1		-		(10	)
SQM Salar S.A.	Chile	US$		100		448,560		615,499		1,064,059		312,998		91,244		404,242		448,862		133,189
Comercial Hydro S.A.	Chile	Ch$		60.6382		6,552		335		6,887		22		71		93		138		127
SQM Industrial S.A.	Chile	US$		100		1,038,940		572,475		1,611,415		843,084		47,054		890,138		522,266		97,852
Minera Nueva Victoria S.A.	Chile	US$		100		72,634		53,709		126,343		1,159		2,365		3,524		1,225		3,157
Exploraciones Mineras S.A.	Chile	US$		100		427		31,371		31,798		3,750		-		3,750		-		(134	)
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.	Chile	Ch$		100		594		101		695		201		341		542		1,450		8
Soquimich Comercial S.A.	Chile	US$		60.6383		208,650		16,834		225,484		118,620		1,270		119,890		100,831		5,770
Agrorama Callegari Ltda.	Chile	Ch$		42.4468		4,148		1,315		5,463		4,008		26		4,034		4,774		(210	)
SQM North America Corp.	United States	US$		100		114,984		15,485		130,469		95,483		3,650		99,133		176,070		8,282
RS Agro Chemical Trading A.V.V.	Aruba	US$		100		5,229		-		5,229		-		-		-		-		(3	)
Nitratos Naturais do Chile Ltda.	Brazil	US$		100		5		286		291		4,939		-		4,939		-		(45	)

104

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 10 - Investments and disclosures on investments in subsidiaries, continued

9/30/2010
					Asset						Liability								Net profit
Subsidiary	Country of incorporation	Functional currency	Equity interest %		Current ThUS$		Non- current ThUS$		Total ThUS$		Current ThUS$		Non- current ThUS$		Total ThUS$		Revenue ThUS$		(loss) for the period ThUS$
Nitrate  Corporation of Chile Ltd.	United Kingdom	US$		100		5,076		-		5,076		-		-		-		-		-
SQM Corporation N.V.	Dutch Antilles	US$		100		669		37,931		38,600		3,712		-		3,712		-		(1,431	)
SQM Peru S.A.	Peru	US$		100		22,245		844		23,089		24,893		-		24,893		17,418		(1,183	)
SQM Ecuador S.A.	Ecuador	US$		100		6,656		73		6,729		6,157		-		6,157		11,856		260
SQM Brasil Ltda.	Brazil	US$		100		212		89		301		1,196		-		1196		504		(67	)
SQI Corporation NV.	Dutch Antilles	US$		100		-		7		7		33		-		33		-		(2	)
SQMC Holding Corporation L.L.P.	United States	US$		100		1,659		7,846		9,505		589		-		589		-		29
SQM Japan Co. Ltd.	Japan	US$		100		1,342		561		1,903		143		360		503		1,220		245
SQM Europe N.V.	Belgium	US$		100		339,302		410		339,712		335,934		-		335,934		623,579		(6,068	)
SQM Italia SRL	Italy	US$		100		1,407		-		1,407		18		-		18		-		-
SQM Indonesia S.A.	Indonesia	US$		80		5		-		5		1		-		1		-		-
North American Trading Company	United States	US$		100		162		145		307		39		-		39		-		-
SQM Virginia LLC	United States	US$		100		14,834		14,380		29,214		14,834		-		14,834		-		(1	)
SQM Comercial de Mexico S.A. de C.V.	Mexico	US$		100		52,021		1,378		53,399		53,193		596		53,789		93,229		(1,009	)

105

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 10 - Investments and disclosures on investments in subsidiaries, continued

9/30/2010
					Asset							Liability								Net profit
Subsidiary	Country of incorporation	Functional currency	Equity interest %		Current ThUS$		Non- current ThUS$			Total ThUS$		Current ThUS$		Non- current ThUS$		Total ThUS$		Revenue ThUS$		(loss) for the period ThUS$
SQM investment Corporation N.V.	Dutch Antilles	US$		100		71,856		618			72,474		51,440		708		52,148		9,591		(482	)
Royal Seed Trading Corporation A.V.V.	Aruba	US$		100		73,195		13			73,208		324		80,000		80,324		-		(8,113	)
SQM Lithium Specialties LLP	United States	US$		100		15,786		3			15,789		1,264		-		1,264		-		(1	)
Soquimich SRL Argentina	Argentina	US$		100		484	��	-			484		71		-		71		-		(33	)
Comercial Caimán Internacional S.A.	Panama	US$		100		386		-			386		1,093		-		1,093		-		(140	)
SQM France S.A.	France	US$		100		345		6			351		114		-		114		-		-
Administración y Servicios Santiago S.A. de C.V.	Mexico	US$		100		115		124			239		856		273		1,129		1,871		(62	)
SQM Nitratos Mexico S.A. de C.V.	Mexico	US$		51		20		1			21		11		-		11		90		4
Soquimich European Holding B.V.	The Netherlands	US$		100		36,564		56,987			93,551		62,533		51		62,584		-		(2,320	)
Fertilizantes Naturales S.A.	Spain	US$		66.67		21,529		(7	)		21,522		20,116		-		20,116		50,561		824
Iodine Minera B.V.	The Netherlands	US$		100		9,674		-			9,674		1		-		1		1,024		727
SQM Africa Pty Ltd.	South Africa	US$		100		54,608		159			54,767		53,932		-		53,932		68,040		(772	)
SQM Venezuela S.A.	Venezuela	US$		100		80		-			80		401		-		401		-		(159	)
SQM Oceania Pty Ltd.	Australia	US$		100		1,994		-			1,994		1,159		-		1,159		1,524		34
SQM  Agro India Pvt. Ltd.	India	US$		100		97		4			101		152		-		152		-		(152	)
SQM Beijin Commercial Co. Ltd.	China	US$		100		182		46			228		76		-		76		1,093		52
Total						3,461,522		2,156,630			5,618,152		2,746,880		460,350		3,207,230		2,294,434		338,081

106

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 10 - Investments and disclosures on investments in subsidiaries, continued

Below, we detail the financial information as of December 31, 2009 of those companies on which the Group exerts significant influence.

12/31/2009
					Asset						Liability								Net profit
Subsidiary	Country of incorporation	Functional currency	Equity interest %		Current ThUS$		Non- current ThUS$		Total ThUS$		Current ThUS$		Non- current ThUS$		Total ThUS$		Revenue ThUS$		(loss) for the period ThUS$
SQM Nitratos S.A.	Chile	US$		100.00		455,452		66,564		522,116		447,246		11,956		459,202		167,562		45,972
Proinsa Ltda.	Chile	Ch$		60.58		209		1		210		-		-		-		-		4
SQMC Internacional Ltda.	Chile	Ch$		60.6382		281		-		281		-		-		-		-		5
SQM Potasio S.A.	Chile	US$		99.9974		100,257		498,631		598,888		1		198,902		198,903		-		101,711
Serv. Integrales de Tránsito y Transf. S.A.	Chile	US$		100.00		93,505		56,361		149,866		135,104		2,439		137,543		28,066		385
Isapre Norte Grande Ltda.	Chile	Ch$		100.00		439		521		960		466		119		585		3,780		17
Ajay SQM Chile S.A.	Chile	US$		51.00		12,816		3,829		16,645		6,221		1,662		7,883		35,752		722
Almacenes y Depósitos Ltda.	Chile	Ch$		100.00		383		46		429		1		-		1		-		7
SQM Salar S.A.	Chile	US$		100.00		388,082		526,431		914,513		301,143		86,784		387,927		477,878		161,346
Comercial Hydro S.A.	Chile	Ch$		60.6382		6,105		365		6,470		44		66		110		69		256
SQM Industrial S.A.	Chile	US$		100.00		844,030		537,981		1,382,011		728,276		30,582		758,858		628,703		28,891
Minera Nueva Victoria S.A.	Chile	US$		100.00		68,861		55,213		124,074		1,928		2,484		4,412		1,895		3,812
Exploraciones Mineras S.A.	Chile	US$		100.00		403		31,344		31,747		3,565		-		3,565		-		(183	)
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.	Chile	Ch$		100.00		549		110		659		216		305		521		1,658		(33	)
Soquimich Comercial S.A.	Chile	US$		60.6383		144,525		15,133		159,658		54,876		1,145		56,021		188,072		3,503
Agrorama Callegari Ltda.	Chile	Ch$		42.4468		2,130		173		2,303		740		-		740		1,211		(7	)
SQM North America Corp.	United States	US$		100.00		137,329		15,540		152,869		126,097		3,644		129,741		191,520		(761	)
RS Agro Chemical Trading A.V.V.	Aruba	US$		100.00		5,232		-		5,232		-		-		-		-		(4	)
Nitratos Naturais do Chile Ltda.	Brazil	US$		100.00		6		287		293		4,896		-		4,896		-		(572	)

107

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 10 - Investments and disclosures on investments in subsidiaries, continued

12/31/2009
					Asset						Liability								Net profit
Subsidiary	Country of incorporation	Functional currency	Equity interest %		Current ThUS$		Non- current ThUS$		Total ThUS$		Current ThUS$		Non- current ThUS$		Total ThUS$		Revenue ThUS$		(loss) for the period ThUS$
Nitrate  Corporation of Chile Ltd.	United Kingdom	US$		100.00		5,076		-		5,076		-		-		-		-		-
SQM Corporation N.V.	Dutch Antilles	US$		100.00		669		39,365		40,034		3,688		-		3,688		-		1,523
SQM Peru S.A.	Peru	US$		100.00		29,200		144		29,344		29,965		-		29,965		17,791		(2,583	)
SQM Ecuador S.A.	Ecuador	US$		100.00		6,218		81		6,299		5,992		-		5,992		12,960		(183	)
SQM Brasil Ltda.	Brazil	US$		100.00		245		77		322		1,149		-		1,149		844		(131	)
SQI Corporation NV.	Dutch Antilles	US$		100.00		-		7		7		31		-		31		-		(2	)
SQM Japan Co. Ltd.	Japan	US$		100.00		1,075		509		1,584		103		326		429		1,395		10
SQMC Holding Corporation L.L.P.	United States	US$		100.00		1,443		7,678		9,121		358		-		358		-		1,632
SQM Europe N.V.	Belgium	US$		100.00		274,514		502		275,016		265,171		-		265,171		510,837		6,755
SQM Italia SRL	Italy	US$		100.00		1,485		-		1,485		19		-		19		-		0
SQM Indonesia S.A.	Indonesia	US$		80.00		5		-		5		1		-		1		-		181
North American Trading Company	United States	US$		100.00		162		145		307		39		-		39		-		(1	)
SQM Virginia LLC	United States	US$		100.00		14,834		14,380		29,214		14,834		-		14,834		-		(99	)
SQM Comercial de Mexico S.A. de C.V.	Mexico	US$		100.00		60,370		2,128		62,498		61,880		-		61,880		129,083		(10,090	)

108

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 10 - Investments and disclosures on investments in subsidiaries, continued

12/31/2009
					Asset						Liability								Net profit
Subsidiary	Country of incorporation	Functional currency	Equity interest %		Current ThUS$		Non- current ThUS$		Total ThUS$		Current ThUS$		Non- current ThUS$		Total ThUS$		Revenue ThUS$		(loss) for the period ThUS$
SQM investment Corporation N.V.	Dutch Antilles	US$		100.00		136,349		847		137,196		115,793		572		116,365		14,746		(21,843	)
Royal Seed Trading Corporation A.V.V.	Aruba	US$		100.00		255,328		793		256,121		100,123		155,000		255,123		-		1,777
SQM Lithium Specialties LLP	United States	US$		100.00		15,787		3		15,790		1,264		-		1,264		-		(100	)
Soquimich SRL Argentina	Argentina	US$		100.00		564		-		564		118		-		118		-		(14	)
Comercial Caimán Internacional S.A.	Panama	US$		100.00		1,345		-		1,345		1,912		-		1,912		1,092		220
SQM France S.A.	France	US$		100.00		345		6		351		114		-		114		-		-
Administración y Servicios Santiago S.A. de C.V.	Mexico	US$		100.00		20		-		20		664		185		849		2,830		(55	)
SQM Nitratos México S.A. de C.V.	Mexico	US$		51.00		19		1		20		13		-		13		110		(14	)
SQM Dubai Fzco.	United Arab Emirates	US$		-		-		-		-		-		-		-		5,198		-
Soquimich European Holding B.V.	Dutch Antilles	US$		100.00		97,854		60,645		158,499		125,168		38		125,206		-		1,137
Fertilizantes Naturales S.A.	Spain	US$		66.67		16,872		3		16,875		16,293		-		16,293		52,872		(689	)
Iodine Minera B.V.	Dutch Antilles	US$		100.00		8,959		-		8,959		14		-		14		1,330		1,864
SQM Africa Pty Ltd.	South Africa	US$		100.00		61,289		153		61,442		59,834		-		59,834		75,438		(1,181	)
SQM Venezuela S.A.	Venezuela	US$		100.00		91		-		91		399		-		399		-		-
SQM Oceania Pty Ltd.	Australia	US$		100.00		2,509		-		2,509		1,934		-		1,934		1,679		429
SQM  Agro India Pvt. Ltd.	India	US$		100.00		242		3		245		284		-		284		-		(213	)
Total						3,253,463		1,936,000		5,189,463		2,617,977		496,209		3,114,186		2,554,371		323,401

109

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 11 – Equity method accounted investments in associated companies

11.1        Investment in associated companies recognized using the equity method of accounting

As of September 30, 2010, December 31, 2009 and as of January 1, 2009, in accordance with criteria established in Note 2.5 and Note 2.13, investments in associated companies accounted for using the equity method and investments in joint ventures are as follows:

	Note	9/30/2010 ThUS$		12/31/ 2009 ThUS$		1/1/2009  ThUS$
Investments in associates	11.1 to 11.3		38,084		35,163		36,934
Joint ventures	12.0  to 12.4		23,842		20,022		-
Total			61,926		55,185		36,934

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com

110

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 11 – Equity method accounted investments in associated companies, continued

11.2            Assets, liabilities, revenue and expenses of associates

9/30/2010
				Asset						Liability								Net profit
Tax ID No.	Associate	Country of incorporation	Functional currency	Current ThUS$		Non- current ThUS$		Total ThUS$		Current ThUS$		Non- Current ThUS$		Total ThUS$		Revenue ThUS$		(loss) for the period ThUS$
77.557.430-5	Sales de Magnesio Ltda.	Chile	Ch$		2,977		5		2,982		851		-		851		3,767		906
Foreign	Abu Dhabi Fertilizer Industries WWL	Arabia	Arab Emirates dirham		15,451		3,279		18,730		4,802		-		4,802		24,426		1,757
Foreign	Doktor Tarsa Tarim Sanayi AS	Turkey	Turkish lira		43,727		7,786		51,513		27,993		-		27,993		46,292		7,596
Foreign	Nutrisi Holding N.V.	Belgium	Euro		298		11,370		11,668		1,380		-		1,380		-		1,970
Foreign	Ajay North America	United States	US$		17,176		7,109		24,285		8,273		-		8,273		39,961		2,747
Foreign	Nutrichem Benelux	Belgium	Euro		-		-		-		-		-		-		-		-
Foreign	NU3 N.V.	Belgium	Euro		15,324		9,164		24,488		6,124		-		6,124		32,959		5,153
Foreign	Ajay Europe SARL	France	Euro		16,390		2,201		18,591		8,107		-		8,107		31,717		1,165
Foreign	NU3 B.V.	The Netherlands	Euro		17,442		2,696		20,138		16,249		-		16,249		53,087		3,558
Foreign	Generale De Nutrition	Belgium	Euro		-		-		-		-		-		-		-		-
Foreign	Mirs Specialty Fertilizers	Egypt	Egyptian pound		3,347		3,383		6,730		3,220		265		3,485		3,247		(365	)
Foreign	SQM Eastmed Turkey	Turkey	Euro		102		591		692		314		-		310		250		21
Foreign	SQM Thailand Co. Ltd.	Thailand	Thai bath		8,136		593		8,729		5,337		-		5,337		6,778		247
	Total				140,370		48,177		188,546		82,650		265		82,911		242,484		24,755

31/12/2009
				Asset							Liability								Net profit
Tax ID No.	Associate	Country of incorporation	Functional currency	Current ThUS$			Non- current ThUS$		Total ThUS$		Current ThUS$		Non- Current ThUS$		Total ThUS$		Revenue ThUS$		(loss) for the period ThUS$
77.557.430-5	Sales de Magnesio Ltda.	Chile	Ch$		1,850			2		1,852		1,195		-		1,195		2,362		354
Foreign	Abu Dhabi Fertilizer Industries WWL	Arabia	Arab Emirates dirham		14,559			2,746		17,305		5,163		-		5,163		26,173		1,547
Foreign	Doktor Tarsa Tarim Sanayi AS	Turkey	Turkish lira		36,022			6,032		42,054		22,545		2,525		25,070		58,850		3,678
Foreign	Nutrisi Holding N.V.	Belgium	Euro		(552	)		14,913		14,361		1,494		-		1,494		-		(2,120	)
Foreign	Ajay North America	United States	US$		12,471			7,046		19,517		3,848		-		3,848		28,594		4,097
Foreign	Nutrichem Benelux	Belgium	Euro		-			-		-		-		-		-		-		-
Foreign	NU3 N.V.	Belgium	Euro		22,282			10,178		32,460		4,707		-		4,707		31,965		(1,425	)
Foreign	Ajay Europe SARL	France	Euro		12,830			2,325		15,155		4,181		-		4,181		20,788		1,449
Foreign	NU3 B.V.	The Netherlands	Euro		15,889			5,300		21,189		16,773		-		16,773		64,921		23
Foreign	Generale De Nutrition	Belgium	Euro		-			-		-		-		-		-		-		-
Foreign	Mirs Specialty Fertilizers	Egypt	Egyptian pound		2,708			3,858		6,566		2,542		275		2,817		5,400		882
Foreign	SQM Eastmed Turkey	Turkey	Euro		764			636		1,400		998		-		998		793		(11	)
Foreign	SQM Thailand Co. Ltd.	Thailand	Thai bath		6,119			574		6,693		2,999		-		2,999		9,691		430
	Total				124,942			53,610		178,552		66,445		2,800		69,245		249,537		8,904

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com

111

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 11 – Equity method accounted investments in associated companies

11.3        Detail of investments in associates

The Company’s equity interest in its associated companies is detailed as follows:

Associated company	Main associate’s activities	Equity interest %			Investment 9/30/2010 ThUS$		Investment 12/31/2009 ThUS$		Investment 1/1/2009 ThUS$
Sales de Magnesio Ltda.	Commercialization of magnesium salts.		50	%		1,065		328		473
Abu Dhabi Fertilizer Industries Co. W.W.L.	Distribution and commercialization of specialty plant nutrients in the Middle East.		50	%		6,964		6,072		5,278
Ajay North America L.L.C	Production and commercialization of iodine derivatives.		49	%		6,686		6,653		4,892
NU3 N.V.	Production of liquid and solid fertilizers		50	%		-		-		-
Doktor Tarsa Tarim Sanayi AS	Distribution and commercialization of specialty plant nutrients in Turkey.		50	%		11,760		8,492		11,212
Nutrisi Holding N.V.	Holding company		50	%		4,676		6,239		6,823
Ajay Europe SARL	Production and distribution of iodine and iodine derivatives		50	%		3,894		3,920		4,282
NU3 B.V.	Production of liquid and solid fertilizers		100	%		-		-		-
Mirs Specialty Fertilizers S.A.E.	Production and commercialization of liquid specialty plant nutrients for Egypt.		47.4857	%		1,541		1,780		2,247
SQM Agro India PVT Ltda.	Agent and distributor of specialty plant nutrients.		49	%		-		-		94
SQM Eastmed Turkey	Production and commercialization of specialty products.		50	%		141		201		219
SQM Thailand Co. Ltd.	Distribution and commercialization of specialty plant nutrients.		40	%		1,357		1,478		1,414
Total						38,084		35,163		36,934

The Company has no participation in unrecognized losses in investments in associated companies.

The Company has no associated companies not recognized using the equity method,

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com

112

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 12 - Joint Ventures

12.1 Policy for accounting for joint ventures in a Parent Company’s separate financial statements

The method for the recognition of joint ventures in which equity interest 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 for the period of the investor will receive the portion which belongs to it in profit or loss of the entity under joint control.

12.2 Disclosures on interest in joint ventures

a) Operations conducted in 2010

On March 4, 2010, SQM Industrial entered an agreement with Qingdao Star Plant Protection Technology Co., Ltd., through which the companies formed a joint venture, SQM Qingdao-Star Co, Ltd. Each party made a capital contribution of ThUS$2,000 for interest of 50%.

On June 24, 2010, SQM Industrial S.A. made a contribution of ThUS$2,500 in SQM Migao Sichuan.

b) Operations conducted in 2009

On October 9, 2009, the subsidiary Soquimich European Holdings formed a joint venture with Coromandel Fertilizers Limited, Coromandel SQM. Each party made capital contributions of ThUS$2,200 for interest of 50%.

On March 18, 2009, a shareholder agreement was entered to incorporate Sichuan SQM-Migao Chemical Fertilizer Co. Ltda. and the process for the registration of and obtaining licenses ended on September 1, 2009.

SQM Industrial S.A. made its first capital contribution of ThUS$3,000 on November 6, 2009 from total contribution of ThUS$10,000 by each party. Contributions will be paid in 2010.

On December 29, 2009, a joint venture agreement was entered with the Roullier Group for the SQM Dubai-FZCO, thereby decreasing our interest from 100% to 50%. On the same date, the company changed its name to SQM Vitas.

This transaction resulted in an effect on profit of ThUS$3,019, which is presented under Other gains (losses).

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com

113

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 12 - Joint Ventures

12.3 Detail of assets, liabilities and profit or loss on investments in significant joint ventures by company as of September 30, 2010 and as of December 31, 2009, respectively:

9/30/2010
				Asset						Liability											Profit (loss)
Tax ID No.	Associated	Country of incorporation	Functional currency	Current ThUS$		Non- current ThUS$		Total ThUS$		Current ThUS$		Non- Current ThUS$		Total ThUS$		Revenue ThUS$		Expenses ThUS$			for the period  ThUS$
Foreign	Sichuan SQM Migao Chemical Fertilizers Co Ltda.	China	US$		3,835		8,120		11,955		1,031		-		1,031		-		(43	)		(43	)
Foreign	Coromandel SQM	India	Indian rupee		32		919		951		109		-		109		-		(26	)		(26	)
Foreign	SQM Vitas	United Arab Emirates	U.A.E. dirham		25,642		9,498		35,140		1,218		-		1,218		14,407		(13,495	)		915
Foreign	SQM Qindao-Star Co. Ltda.	China	US$		1,805		342		2,147		149		-		149		1,125		(1,127	)		(2	)
	Total				31,314		18,879		50,193		2,507		-		2,507		15,532		(14,691	)		844

12/31/2009
				Asset						Liability													Profit (loss)
Tax ID No.	Associated	Country of incorporation	Functional currency	Current ThUS$		Non- current ThUS$		Total ThUS$		Current ThUS$			Non- Current ThUS$		Total ThUS$			Revenue ThUS$		Expenses ThUS$			for the period  ThUS$
Foreign	Sichuan SQM Migao Chemical Fertilizers Co Ltda.	China	US$		6,414		2,146		8,560		92			-		92			-		(33	)		(33	)
Foreign	Coromandel SQM	India	Indian rupee		-		1,060		1,060		-			-		-			-		-			-
Foreign	SQM Vitas	United Arab Emirates	U.A.E. dirham		25,913		5,543		31,456		(1,551	)		-		(1,551	)		1,893		(1,821	)		72
	Total				32,327		8,749		41,076		(1,459	)		-		(1,459	)		1,893		(1,854	)		39

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com

114

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

12.4 Detail of the amount of profit (loss) net of investments in joint ventures by company:

Associate	Main associate’s activities	Equity interest %			Investment 9/30/2010 ThUS$		Investment 12/31/2009 ThUS$		Investment 1/1/2009 ThUS$
Coromandel SQM	Production and distribution of potassium nitrate.		50	%		421		530		-
Sichuan SQM Migao Chemical Fertilizer Co. Ltda.	Production and distribution of soluble fertilizers.		50	%		5,462		2,988		-
SQM Vitas	Production and commercialization of specialty plant and animal nutrition and industrial hygiene.		50	%		16,960		16,504		-
SQM Quindao-Star Co. Ltda.	Production and distribution of nutrient plant solutions with soluble NPK specialties.		50	%		999		-		-
Total						23,842		20,022		-

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com

115

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 13 - Intangible assets and goodwill

13.1 Balances

	9/30/2010		12/31/2009		1/1/2009
Balances	ThUS$		ThUS$		ThUS$
Intangible assets other than goodwill		3,064		2,836		3,525
Goodwill		38,388		38,388		38,388
Total		41,452		41,224		41,913

13.2 Disclosures on intangible assets and goodwill

Intangible assets relate to goodwill, water rights, trademarks, industrial patents, rights of way and IT programs.

Balances and movements in the main classes of intangible assets as of September 30, 2010,    December 31, 2009 and January 1, 2009 are detailed as follows:

		9/30/2010
Description of classes of intangible assets	Useful life	Gross amount ThUS$		Accumulated amortization ThUS$			Net amount ThUS$
Goodwill	Indefinite		39,961		(1,573	)		38,388
Water rights	Indefinite		3,631		(2,084	)		1,547
Rights of way	Indefinite		548		(153	)		395
Industrial patents	Finite		1,197		(680	)		517
Trademarks	Finite		3,817		(3,805	)		12
IT programs	Finite		1,316		(723	)		593
Total			50,470		(9,018	)		41,452

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com

116

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 13 - Intangible assets and goodwill, continued

13.2 Disclosures on intangible assets and goodwill, continued

		12/31/2009
Description of classes of intangible assets	Useful life	Gross amount ThUS$		Accumulated amortization ThUS$			Net amount ThUS$
Goodwill	Indefinite		39,961		(1,573	)		38,388
Water rights	Indefinite		3,539		(1,990	)		1,549
Rights of way	Indefinite		547		(152	)		395
Industrial patents	Finite		1,204		(634	)		570
Trademarks	Finite		3,989		(3,989	)		-
IT programs	Finite		825		(503	)		322
Total			50,065		(8,841	)		41,224

		1/1/2009
Description of classes of intangible assets	Useful life	Gross amount ThUS$		Accumulated amortization ThUS$			Net amount ThUS$
Goodwill	Indefinite		39,961		(1,573	)		38,388
Water rights	Indefinite		3,488		(1,591	)		1,897
Rights of way	Indefinite		547		(138	)		409
Industrial patents	Finite		1,204		(554	)		650
Trademarks	Finite		3,989		(3,830	)		159
IT programs	Finite		701		(291	)		410
Total			49,890		(7,977	)		41,913

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com

117

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 13 - Intangible assets and Goodwill, continued

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 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 relate to periods defined by contracts or rights which generate them.

Indefinite useful life intangible assets mainly relate to water rights and rights of way, which were 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.

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
Water rights	Indefinite	Indefinite
Rights of way	1 year	20 years
Industrial patents	1 year	16 years
Trademarks	1 year	5 years
IT programs	2 years	3 years

d) Disclosure on internally-generated assets

The Company has no internally-generated intangible assets.

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

118

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 13 - Intangible assets and Goodwill, continued

e) Movements in identifiable intangible assets as of September 30, 2010

Movements in identifiable intangible assets	Net goodwill ThUS$		Water rights, net ThUS$			Rights of way, net ThUS$		Industrial patents, net ThUS$			Trademarks, net ThUS$			Computer software, net ThUS$			Identifiable  intangible assets, net ThUS$
Opening balance		38,388		1,549			395		570			-			322			41,224
Additions		-		92			-		-			-			491			583
Amortization		-		(94	)		-		(53	)		(360	)		(220	)		(727	)
Other increases (decreases)		-		-			-		-			372			-			372
Ending balance		38,388		1,547			395		517			12			593			41,452

f) Movements in identifiable intangible assets as of December 31, 2009

Movements in identifiable intangible assets	Net goodwill ThUS$		Water rights, net ThUS$			Rights of way, net ThUS$			Industrial patents, net ThUS$			Trademarks, net ThUS$			Computer software, net ThUS$			Identifiable  intangible assets, net ThUS$
Opening balance		38,388		1,897			409			650			159			410			41,913
Additions		-		51			-			-			-			124			175
Amortization		-		(399	)		(14	)		(80	)		(159	)		(212	)		(864	)
Ending balance		38,388		1,549			395			570			-			322			41,224

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

119

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 14 - Property, plant and equipment

As of September 30, 2010, December 31, 2009 and January 1, 2009, the detail of property, plant and equipment is as follows:

14.1 Classes of property, plant and equipment

Description of classes of property, plant and equipment	9/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Property, plant and equipment, net
Construction-in-progress		536,642		379,416		234,757
Land		108,145		108,356		106,800
Buildings		79,919		86,252		66,813
Plant and equipment		410,556		453,859		461,277
IT equipment		3,407		3,853		3,526
Fixed facilities and accessories		186,150		193,893		152,176
Motor vehicles		48,229		55,341		41,309
Other property, plant and equipment		21,041		19,576		9,873
Total		1,394,089		1,300,546		1,076,531
Property, plant and equipment, gross
Construction-in-progress		536,642		379,416		234,757
Land		108,145		108,356		106,800
Buildings		211,050		212,751		184,061
Plant and equipment		1,079,946		1,090,769		1,012,711
IT equipment		21,814		21,573		19,540
Fixed facilities and accessories		385,244		368,419		304,360
Motor vehicles		149,166		154,887		130,154
Other property, plant and equipment		41,084		37,962		32,410
Total		2,533,091		2,374,133		2,024,793
Accumulated depreciation and value impairment of property, plant and equipment
Accumulated depreciation and value impairment  of buildings		131,131		126,499		117,248
Accumulated depreciation and value impairment of plant and equipment		669,390		636,910		551,434
Accumulated depreciation and value impairment of  IT equipment		18,407		17,720		16,014
Accumulated depreciation and value impairment of fixed facilities and accessories		199,094		174,526		152,184
Accumulated depreciation and value impairment of motor vehicles		100,937		99,546		88,845
Accumulated depreciation and value impairment  of other		20,043		18,386		22,537
Total		1,139,002		1,073,587		948,262

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

120

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 14 - Property, plant and equipment, continued

14.2 Reconciliation of changes in property, plant and equipment by class as of September 30, 2010 and December 31, 2009:

Reconciliation entries of changes in property, plant and equipment by class as of September 30, 2010	Construction in-progress			Land			Buildings, net			Plant and equipment, net			IT equipment, net			Fixed facilities and accessories, net			Motor vehicles, net			Improvement of lease fixed assets, net		Other property, plant and equipment, net			Property, plant and equipment, net
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$
Opening balance		379,416			108,356			86,252			453,859			3,853			193,893			55,341			-		19,576			1,300,546
Changes
Additions		245,707			386			112			182			86			2			89			-		54			246,618
Divestitures		-			(26	)		(15	)		(1,521	)		(25	)		-			-,			-		(14	)		(1,601	)
Depreciation expense		-			-			(6,644	)		(58,710	)		(1,074	)		(24,524	)		(8,493	)		-		(3,825	)		(103,270	)
Increase(decrease) in foreign currency exchange		-			-			1			40			-			14			7			-		2			64
Other increases (decreases)		(88,481	)		(571	)		213			16,706			567			16,765			1,285			-		5,248			(48,268	)
Total changes		157,226			(211	)		(6,333	)		(43,303	)		(446	)		(7,743	)		(7,112	)		-		1,465			93,543
Ending balance		536,642			108,145			79,919			410,556			3,407			186,150			48,229			-		21,041			1,394,089

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

121

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 14 - Property, plant and equipment, continued

14.3 Reconciliation of changes in property, plant and equipment by class as of September 30, 2010 and December 31, 2009, continued:

Reconciliation entries of changes in property, plant and equipment by class as of December 31, 2009	Construction in-progress			Land			Buildings, net			Plant and equipment, net			IT equipment, net			Fixed facilities and accessories, net			Motor vehicles, net			Improvement of lease fixed assets, net		Other property, plant and equipment, net			Property, plant and equipment, net
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$
Opening balance		234,757			106,800			66,813			461,277			3,526			152,176			41,309			-		9,873			1,076,531
Changes
Additions		394,180			1,560			-			306			148			9			233			-		128			396,564
Divestitures		(4,405	)		-			(324	)		(1,172	)		(9	)		(108	)		(6	)		-		(134	)		(6,158	)
Depreciation expense		-			-			(8,459	)		(90,446	)		(1,585	)		(22,426	)		(10,480	)		-		(3,014	)		(136,410	)
Increase(decrease) in foreign currency exchange		-			-			3			54			-			-			1			-		3			61
Other increases (decreases)		(245,116	)		(4	)		28,219			83,840			1,773			64,242			24,284			-		12,720			(30,042	)
Total changes		144,659			1,556			19,439			(7,418	)		327			41,717			14,032			-		9,703			224,015
Ending balance		379,416			108,356			86,252			453,859			3,853			193,893			55,341			-		19,576			1,300,546

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

122

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 14. Property, plant and equipment, continued

14.4 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.

14.2 Additional Information

1) Assets recognized at fair value

As part of the process for the first-time adoption of IFRS, the Company opted to measure certain assets at fair value as deemed cost at the transition date of January 1, 2009.  These amounts were determined by an external specialist. The revaluation of assets implied an adjustment against retained earnings as of January 1, 2009 of ThUS$52,755. The adjusted balance of property, plant and equipment assets is detailed as follows:

	9/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Land		1,332		1,332		1,332
Buildings, net		2,210		2,241		2,426
Plant and equipment, net		38,746		42,335		53,576
IT equipment, net		1		1		1
Fixed facilities and accessories, net		1,799		1,840		2,031
Other property, plant and equipment, gross		882		918		1,091
Total		44,970		48,667		60,457

2) Lease fixed assets

Investment properties include lease assets.  The detail is as follows:

	9/30/2010		12/31/2009		1/1/2009
Description of assets	ThUS$		ThUS$		ThUS$
2 floors of the Las Americas Building, net		1,381		1,405		1,436
Total (net)		1,381		1,405		1,436

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

123

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 14 - Property, plant and equipment, continued

3) Interest capitalized in construction-in-progress

The amount capitalized for this concept amounted to ThUS$ 19,547 as of September 30, 2010 (ThUS$13,088 as of September 30, 2009) and ThUS$ 19,231 as of December 31, 2009

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.

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

124

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 15 - Leases

15.1 Disclosures on finance leases, lessee

The asset acquired under the financial lease agreement method relates to a contract which SQM S.A. has with Inversiones La Esperanza S.A. which began in June 1992 and ends on June 31, 2011. The agreement entered indicates 230 installments with a sum of UF 663.75 each with an annual interest rate of 8.5%.

The Company maintains financial lease arrangements as lessee for which there are no contingent installments or restrictions which should be reported.

The net carrying amount as of September 30, 2010 amounted to ThUS$1,381 and as of December 31, 2009 and January 1, 2009 amounted to ThUS$ 1,405 and ThUS$ 1,436, respectively.

15.2 Investment property under finance lease:

	9/30/2010		12/31/2009		1/1/2009
Description of total investment property under finance lease, net:	ThUS$		ThUS$		ThUS$
Financial lease, Las Americas Building		1,381		1,405		1,436
Total		1,381		1,405		1,436

15.3 Reconciliation of minimum finance lease payments , lessee:

The reconciliation between the total gross investment and the present value is as follows:

Minimum payments to be made	9/30/2010 ThUS$							12/31/2009 ThUS$							1/1/2009 ThUS$
	Gross investment		Deferred interest			Present value		Gross investment		Deferred interest			Present value		Gross investment		Deferred interest			Present value
Not exceeding one year		293		(11	)		282		329		(29	)		300		268		(43	)		225
Between 1 and 5 years		-		-			-		192		(5	)		187		425		(28	)		397
Total		293		(11	)		282		521		(34	)		487		693		(71	)		622

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

125

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 16 - Employee benefits

16.1 Provisions for employee benefits

Classes of benefits and expenses by employee	9/30/2010		12/31/2009		1/1/2009
	ThUS$		ThUS$		ThUS$
Current
Profit sharing and bonuses		34,732		16,375		22,112
Total		34,732		16,375		22,112
Non- current
Profit sharing and bonuses		430		20,082		12,000
Severance indemnities		25,233		28,682		20,186
Pension Plan		1,709		1,709		2,873
Total		27,372		50,473		35,059

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

126

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 16 - Employee benefits, continued

16.2 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 over a term not exceeding twelve months.

Staff severance indemnities

The Company only provides compensation and benefits to active employees.

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.

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 relates to vacations (short-term benefits to employees), 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.

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

127

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 16 - Employee benefits, continued

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 14, 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.

All benefits provided by the company are current. Certain benefits such as vacation and severance indemnities are long-term benefits which are accumulative. These relate to services provided in which there are future disbursements which will be subsequent to twelve months

16.3 Other long-term benefits

The other long-term benefits relate to staff severance indemnities and are recorded at their actuarial value.

	6/30/2010		12/31/2009		1/1/2009
Staff severance indemnities at actuarial value	ThUS$		ThUS$		ThUS$
Staff severance indemnities, Chile		24,602		28,170		19,478
Other obligations in companies elsewhere		631		512		708
Total other non-current liabilities		25,233		28,682		20,186
SQM North America’s pensions plan		1,709		1,709		2,873
Total post employment obligations		1,709		1,709		2,873

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.

The methodology followed to determine the accrual for all the employees adhered to agreements considers turnover and salary increase rates according to the valuation method referred to as Accumulated Benefit Valuation or Accrued Cost of the Benefit Method. This methodology is established in IAS 19.

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

128

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 16 - Employee benefits, continued

About the characteristics of the indemnity fund

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 6%.

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.

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-2004 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 Retirement Benefit Costs.

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

129

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 16 - Employee benefits, continued

16.4 Employee post retirement obligations

Our subsidiary, SQM North America has established with its employees certain pension plans for retired employees, which are 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 an interest rate of 6.5%. The net balance of this liability is presented under Non-current provisions for benefits to employees.

The table below establishes the status of the plan financing and the amounts recognized in the consolidated balance sheet:

	2010			2009
	ThUS$			ThUS$
Variation in the benefit liability:
Benefit liability at the beginning of year		6,631			6,631
Cost of service		1			1
Interest cost		423			423
Actuarial loss		33			33
Benefits paid		(297	)		(297	)
Benefit liability at year-end		6,791			6,791
Change in the plan’s assets:
Fair value of the plan’s assets at beginning of year		3,758			3,758
Contributions by the employer		448			448
Actual return (loss) on plan assets		1,173			1,173
Benefits paid		(297	)		(297	)
Fair value of the plan assets’ at year-end		5,082			5,082
Status of financing		(1,709	)		(1,709	)
Items not yet recognized as net regular pension-related cost elements:
Net actuarial loss at the beginning of year		(4,186	)		(4,186	)
Amortization during the period		198			198
Net gain or loss during the period		857			857
Adjustment made to recognize the minimum pension-related liability		(3,131	)		(3,131	)
Accrued pension-related (liability) / prepaid pension-related cost		(1,709	)		(1,709	)

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

130

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 16 - Employee benefits, continued

16.4 Employee post retirement obligations, continued

As of September 30, 2010, the net regular pension-related expense was composed of the following elements:

	2010
	ThUS$
Costs or benefits of services earned during the period		1
Cost of interest in benefit liability		423
Actual return in plan’s assets		(1,173	)
Amortization of loss from prior periods		198
Net gain for the period		889
Net regular pension-related expense		338

As of September 30, 2010, distributions of the plan assets by category are detailed as follows:

	2010
Growth amounts		59	%
International amounts		25	%
Growth and income amounts		-
Taxable bonus		14	%
Treasury amounts		0	%
Money market funds		2	%
		100	%

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

131

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 17 - Disclosures on net equity

The detail and movements in the funds of net equity accounts are shown in the Consolidated statement of changes in net equity.

17.1 Disclosures on issued capital

Issued share capital is divided into 263,196,524 fully paid and subscribed shares with no par value composed of a Series "A" with142,819,552 shares and Series “B” shares with 120,376,972 shares, where both series are preferred shares.

17.2 Disclosures on preference share capital

The preferential voting rights of each series are as follows:

Series “A”:

If the election of the President of the Company results in a tied 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 September 30, 2010, December 31, 2009 and January 1, 2009, the Group does not maintain any dominant company's shares either directly or through investees.

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

132

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 17 - Disclosures on net equity, continued

Detail of classes of capital in preference shares:

Class of capital in preferred shares	9/30/2010				31/12/2009				01/01/2009
Description of class of capital in preferred shares	Series A		Series B		Series A		Series B		Series A		Series B
Number of authorized shares		142,819,552		120,376,972		142,819,552		120,376,972		142,819,552		120,376,972
Par value of shares in ThUS$		-		-		-		-		-		-
Capital amount in shares ThUS$		134,750		342,636		134,750		342,636		134,750		342,636
Amount of premium issuance ThUS$		-		-		-		-		-		-
Amount of reserves ThUS$		-		-		-		-		-		-
Number of fully subscribed and paid shares		142,819,552		120,376,972		142,819,552		120,376,972		142,819,552		120,376,972
Number of subscribed, partially paid shares		-		-		-		-		-		-
Total number of subscribed shares		142,819,552		120,376,972		142,819,552		120,376,972		142,819,552		120,376,972

As of September 30, 2010, December 31, 2009 and January 1, 2009, the Company has not placed any new issuances of shares in the market.

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

133

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 17 - Disclosures on net equity, continued

17.3 Dividend policy

As required by Article 19 of the Chilean Shareholders’ Company 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 ended as of December 31, 2009 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 2010 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 2010.

- Distribution and payment, if possible during 2010, 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 2010 and its amount could not exceed 50% of the retained earnings for distribution obtained during 2010, which are reflected in the Company’s financial statements as of September 30, 2010.

- The distribution and payment by the Company of the remaining balance of the final dividend related to Profit for the period for the 2010 commercial year in up to two installments, which will have to be effectively paid and distributed prior to June 30, 2011.

- An amount equivalent to the remaining 50% of the Company’s profit for the period for 2010 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 or interim dividends.

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

134

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 17 - Disclosures on net equity, continued

17.4 Provisional Dividends

At a Board of Directors meeting held on April 29, 2010, the Directors unanimously agreed to reduce the dividend distribution which implies to pay a final dividend of US$ 0.62131 per share as a result of such profit for the period. Notwithstanding the above, a deduction amounting to US$ 0.37994 per share should be applied to this final dividend, which was already paid as a provisional dividend. In line with this, the balance amounting to US$ 0,24137 per share, will be paid and distributed in favor of those Company’s shareholders registered with the respective shareholders ‘ registry as of   the fifth business day prior to the day in which this dividend will be paid.

At a Board of Directors meeting held on November 17, 2009, the Directors agreed to pay and distribute an interim dividend of US$0.37994 per share. This dividend totals approximately ThUS$100,000 and is equivalent to 40% of distributable 2009 profit for the period, accumulated as of September 30, 2009. This dividend is payable with a charge to profit for the period for that commercial year to SQM shareholders registered in the respective shareholders’ registry as of the fifth business day prior to December 16, 2009, in its equivalent in Chilean pesos, based on the observed dollar exchange rate as published in the Official Gazette prevailing on December 10, 2009.

Note 18 - Provisions and other non-financial liabilities

18.1 Classes of Provisions

Description of classes of provisions	9/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Other current provisions
Provision for legal complaints		590		590		715
Other provisions		12,945		17,632		8,836
Total		13,535		18,222		9,551
Other non-current provisions
Other provisions		3,500		3,500		3,181
Total		3,500		3,500		3,181

Provisions for legal complaints relate to legal expenses the resolution of which is pending in the lawsuit to make the disbursement for expenses incurred for this purpose.

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

135

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 18 - Provisions and other non-financial liabilities, continued

18.2   Description of other provisions

Description of other provisions	9/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Current provisions, other provisions
Provision for tax loss in fiscal litigation		1,607		1,564		1,284
royalties, agreement with CORFO (the Chilean Economic Development Agency)		4,578		3,752		5,256
Current provisions, other provisions		3,479		6,500		-
Retirement plan		907		2,500		-
Miscellaneous provisions		2,374		3,316		2,296
Total		12,945		17,632		8,836
Other long-term provisions
Mine closure		3,500		3,500		3,181
Total		3,500		3,500		3,181

18.2 Other non-financial liabilities, current

Description of other liabilities	9/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Tax withholdings		8,036		6,043		594
VAT payable		3,184		4,733		5,322
Guarantees received		1,026		1,016		2,511
Provision for minimum dividend		-		-		50,422
Monthly Tax Provisional Payments		5,309		5,071		10,345
Deferred income		49,213		16,537		31,722
Withholdings from employees and salaries payable		4,925		4,858		4,199
Vacation provision		12,842		13,897		10,518
Other current liabilities		71		50		49
Total		84,606		52,205		115,682

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

136

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 18 - Provisions and other non-financial liabilities, continued

18.3 Movements in provisions as of September 30, 2010

Description of items which gave rise to variations	Guarantee		Restructuring		Legal complaints		Onerous contracts		Dismantling, rehabilitation and site restoration costs		Other provisions			Total
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
Total provisions, initial balance		-		-		590		-		-		21,132			21,722
Changes in provisions:		-		-		-		-		-		-			-
Additional provisions		-		-		-		-		-		14,024			14,024
Increase (decrease) in existing provisions		-		-		-		-		-		-			-
Acquisition through business combinations		-		-		-		-		-		-			-
Divestitures through business disposals		-		-		-		-		-		-			-
Provision used		-		-		-		-		-		(18,753	)		(18,753	)
Reversal of unused provision		-		-		-		-		-		-			-
Increase due to adjustment in value of money throughout time		-		-		-		-		-		-			-
Increase (decrease) in discount rate		-		-		-		-		-		-			-
Increase (decrease) in foreign currency translation		-		-		-		-		-		42			42
Other increases (decreases)		-		-		-		-		-		-			-
		-		-		-		-		-		-			-
Total provisions, final balance		-		-		590		-		-		16,445			17,035

SQM
Los Militares 4290,
Las Condes, Santiago, Chile
Tel: (56 2)  425 2000
www.sqm.com

137

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

18.4 Movements in provisions as of December 31, 2009

Description of items which gave rise to variations	Guarantee		Restructuring		Legal complaints			Onerous contracts		Dismantling, rehabilitation and site restoration costs		Other provisions			Total
	ThUS$		ThUS$		ThUS$			ThUS$		ThUS$		ThUS$			ThUS$
Total provisions, initial balance		-		-		715			-		-		12,017			12,732
Changes in provisions:
Additional provisions		-		-		200			-		-		16,384			16,584
Increase (decrease) in existing provisions		-		-		-			-		-		-			-
Acquisition through business combinations		-		-		-			-		-		-			-
Divestitures through business disposals		-		-		-			-		-		-			-
Provision used		-		-		(325	)		-		-		(6,898	)		(7,223	)
Reversal of unused provision		-		-		-			-		-		-			-
Increase due to adjustment in value of money throughout time		-		-		-			-		-		-			-
Increase (decrease) in discount rate		-		-		-			-		-		-			-
Increase (decrease) in foreign currency translation		-		-		-			-		-		(371	)		(371	)
Other increases (decreases)		-		-		-			-		-		-			-
Total provisions, final balance		-		-		590			-		-		21,132			21,722

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

138

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010
 

Note 18 - Provisions and other non-financial liabilities, continued

18.4 Detail of main classes of provisions

Legal expenses: this provision depends on the pending resolution of a lawsuit to conduct the disbursement for expenses associated with and incurred for this purpose.

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.

Royalties CORFO (Economic Development Agency) agreement: relates to the exploitation of mining properties which SQM Salar S.A. pays on a quarterly basis to the Economic Development Agency.  The amount of the lease payable is calculated based on sales of products extracted from the Atacama Saltpeter deposit.

The settlement of these will be performed on a quarterly basis.

Temporary closure of El Toco operation: The Company’s Board of Directors unanimously agreed to approve the temporary closure of Toco and Pampa Blanca mining sectors.  The Company accrued the legal severance indemnity for the employees subject to this closure. Additional benefits which will be paid to employees will correspond to 2010 expenses.

Retirement plan: corresponds to a benefit agreed with employees to retire from the Company.  Those employees who invoked the agreed plan signed their consent as of December 31, 2009 and the effective retirement date will be the second quarter of 2010.

Through the present date, SQM and its subsidiaries do not present any uncertainty on the timing and amount of a class of accrual.

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

139

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010
 

Note 19 - Contingencies and restrictions

The Company maintains lawsuits or other relevant legal actions which are detailed as follows:

19.1 Lawsuits or other relevant events

1.	Plaintiff	: Compañía de Salitre y Yodo Soledad S.A.
	Defendant	: Sociedad Química y Minera de Chile S.A.
	Date of lawsuit	: December 1994
	Court	: Civil Court of Pozo Almonte
	Cause	: Partial annulment of mining property, Cesard 1 to 29
	Instance	: Evidence provided
	Nominal amount	: ThUS$211
2.	Plaintiff	: Compañía Productora de Yodo y Sales S.A.
	Defendant	: Sociedad Química y Minera de Chile S.A
	Date of lawsuit	: November 1999
	Court	: Civil Court of Pozo Almonte
	Cause	: Partial annulment of mining property, Paz II1 to 25
	Instance	: Evidence provided
	Nominal amount	: ThUS$162
3.	Plaintiff	: Compañía Productora de Yodo y Sales S.A.
	Defendant	: Sociedad Química y Minera de Chile S.A.
	Date of lawsuit	: November 1999
	Court	: Civil Court of Pozo Almonte
	Cause	: Partial annulment of mining property, Paz III 1 to 25
	Instance	: Evidence provided
	Nominal amount	: ThUS$204
4.	Plaintiff	: Angélica Allende and their sons Iván Molina and Cristóbal Molina
	Defendant	: Ingeniería, Construcción y Servicios SMR Limitada and jointly and
		severally SQM Nitratos S.A. and its insurance companies.
	Date of lawsuit	: May 2008
	Court	: Arbitration Court of Antofagasta
	Cause	: Work accident
	Instance	: Evidence
	Nominal amount	:ThUS$670

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

140

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 19 - Contingencies and restrictions, continued

19.1 Lawsuits or other relevant events, continued

5.	Plaintiff	: Nancy Erika Urra Muñoz
	Defendant	: Fresia Flores Zamorano, Duratec-Vinilit S.A. and SQM S.A. and its
		insurance companies.
	Date of lawsuit	: December 2008
	Court	: 1st Civil Court of Santiago
	Cause	: Work accident
	Instance	: Response
	Nominal amount : ThUS$550
6.	Plaintiff	: Agraria Santa Aldina Limitada
	Defendant	: SQM Peru S.A.
	Date of lawsuit	: June 2009
	Court	: Civil Court of Pisco - Peru
	Cause	: Seeks compensation for damages for alleged breach of the terms
		and conditions of product distribution contract
	Instance	: Appeal
	Nominal amount	: ThUS$6,000
7.	Plaintiff	: Eduardo Fajardo Núñez, Ana María Canales Poblete, Raquel Beltrán
		Parra, Eduardo Fajardo Beltrán and Martina Fajardo Beltrán
	Defendant	: SQM Salar S.A. and its insurance companies.
	Date of lawsuit	: November 2009
	Court	: 20th Civil Court of Santiago
	Cause	: Work accident
	Instance	: Evidentiary stage
	Nominal amount	: ThUS$1,880
8.	Plaintiff	: María Elena Dorantes and their daughters
	Defendant	: SQM North America Corp. (SQM)
	Date of lawsuit	: October-November 2009
	Court	: High Court of Justice of San Francisco, California, USA
	Cause	: Indemnity claim presented against SQM and other
		17 companies as a result of the alleged responsibility for the death of Mr. Victorino Dorantes which, in the opinion of the plaintiff, would have occurred after inhaling, ingesting or absorbing certain products, which the defendants provided to the employers of Mr. Dorantes for commercialization
	Instance	: Defense plea
	Nominal amount	: Undetermined amount

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

141

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010
 

Note 19 - Contingencies and restrictions, continued

19.1 Lawsuits or other relevant events, continued

9.	Plaintiff	: Poli Instalaciones Limitada
	Defendant	: SQM Industrial S.A.
	Date of lawsuit	: August 2010
	Court	: Arbitrage procedure
	Cause	: Seeks compensation for damages for the application of a contract clause which allows early agreement termination.
	Instance	: Demand response
	Nominal amount	: ThUS$ 484
10.	Plaintiff	: Newland S.A.
	Defendant	: SQM Industrial S.A.
	Date of lawsuit	: August 2010
	Court	: Arbitrage procedure
	Cause	: Compensation for damages for alleged non-compliance with obligations.
	Nominal amount	: ThUS$480
11.	Plaintiff	: María Loreto Lorca Morales, Nathan Guerrero Lorca, Maryori Guerrero
		Lorca, Abraham Guerrero Lorca, Esteban Guerrero Lorca and María Sol
		Osorio Tapia et al
	Defendant	: Gonzalo Daved Valenzuela, Julio Zamorano Avendaño, Comercial
		Transportes y Servicios Generales Julio Zamorano Avendaño
		E.I.R.L. and jointly and severally, SQM S.A. and its insurance companies
	Date of lawsuit	: August 2010
	Court	: 2nd Court of Iquique
	Cause	: Lawsuit for compensation for damages related to the collision between two
		trucks in July 2008 in the area surrounding to Pozo Almonte resulting in the
		deaths of Messrs. Alberto Galleguillos Monardes and Fernando
		Guerrero Tapia
	Cause	: Lawsuit
	Nominal amount	: ThUS$3,500

SQM S.A. and its subsidiaries have been involved and probably will continue to be involved as plaintiffs or defendants in several legal cases, which have been filed and will be subject to the decisions provided by Ordinary Courts of Justice. Those cases, which are regulated by legal provisions currently effective, mainly seek to enforce or file certain opposing actions or exceptions related to certain mining concessions constituted or in the process of being constituted and do not and will not essentially affect the development of SQM S.A. and its subsidiaries.

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

142

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010
 

Note 19 - Contingencies and restrictions, continued

Soquimich Comercial S.A. has been participating and probably will continue to participate habitually as a plaintiff in several legal cases through which it seeks mainly to collect and receive the amounts owed to it, which in the nominal, total and approximate amount of ThUS $900.

SQM S.A. and its subsidiaries have tried and currently continue to make efforts to receive payment of certain amounts still owed to them related to their normal business activities. Those amounts will continue to be legally and non-judicially demanded by the plaintiffs and the actions exercised in relation to them are currently in full force.

SQM S.A. and its subsidiaries have not been legally notified of other complaints other than those referred to in paragraph l) above and pursue the voidance of certain mining properties acquired by SQM S.A. and its subsidiaries and whose proportional purchase price, in respect to the part affected by the respective overlap, exceeds the nominal and approximate amount of ThUS$150 or which seek to obtain payment of certain amounts allegedly owed from exercising their own activities and which exceed the nominal individual amount of approximately ThUS$1 50.

19.2 Restrictions:

Bank loans of SQM S.A. and its subsidiaries contain restrictions similar to those of other comparable loans existing at the dates when those debt agreements were entered into. These restrictions involve maximum indebtedness and minimum equity. Other than these restrictions, SQM S.A. is not exposed to any other management restrictions or limits to financial ratios in contracts or agreements with creditors.

19.3 Commitments:

The subsidiary SQM Salar S.A. has signed a rental contract with the Economic Development Agency (CORFO) which establishes that such subsidiary, will pay to CORFO, for the concept of exploitation of certain mining properties owned by CORFO and for the products resulting from such exploitation, the annual rent stated in the aforementioned contract, the amount of which is calculated on the basis of the sales of each type of product. The contract is in force until 2030 and rent began being paid in 1996 reflecting in profit or loss an amount of ThUS$ 13,518 as of September 30, 2010 (ThUS$ 14,077 as of September 30, 2009).

19.4 Restricted or pledged cash

The subsidiary Isapre Norte Grande S.A. 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.

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

143

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010
 

Note 19 - Contingencies and restrictions, continued

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 on a daily basis reports the present value of the guarantee to the Chilean Superintendence of Healthcare and Isapre Norte Grande Ltda. As of September 30, 2010, the guarantee amounts to ThUS$ 492.

19.5 Sureties obtained from third parties

The main sureties received from third parties (distributors) to guarantee Soquimich Comercial S.A. the compliance with obligations in contracts of commercial mandates for the distribution and sale of fertilizers amounted to ThUS$6,976 as of September 30, 2010; as of December 31, 2009 amounted to ThUS$6,523 and as of January 1, 2009 amounted to ThUS$5,302 which are detailed as follows:

Entity name	9/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Llanos y Wammes Soc. Com. Ltda		2,272		2,037		1,727
Fertglobal Chile Ltda.		3,515		3,352		2,671
Tattersall Agroinsumos S.A.		1,189		1,134		904

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

144

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010
 

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.

				Pending balances as of the closing date of the financial statements
	Debtor		Type of	9/30/2010		12/31/2009		1/1/2009
Creditor of the guarantee	Name	Relationship	guarantee	ThUS$		ThUS$		ThUS$
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		-		-		-
Banque Nationale de Paris	SQM Investment Corp. N.V.	Subsidiary	Bond		-		-		-
San Francisco Branch	SQM Investment Corp. N.V.	Subsidiary	Bond		-		-		-
Sociedad Nacional de Mineria A.G.	SQM Potasio S.A.	Subsidiary	Bond		-		-		-
Royal Bank of Canada	SQM Investment Corp. N.V.	Subsidiary	Bond		-		-		-
Citibank N.Y	SQM Investment Corp. N.V.	Subsidiary	Bond		-		-		-
BBVA Banco Bilbao Vizcaya Argentaria	Royal Seed Trading A..V.V.	Subsidiary	Bond		-		100,053		100,204
ING Capital LLC	Royal Seed Trading A..V.V.	Subsidiary	Bond		80,309		80,055		80,215
JP Morgan Chase Bank	SQM Industrial S.A.	Subsidiary	Bond		-		-		-
Export Development Canada	SQM Investment Corp. N.V.	Subsidiary	Bond		-		50,019		50,032
BBVA Bancomer S.A.	Royal Seed Trading	Subsidiary	Bond		-		75,000		-

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

145

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010
 

Note 20 - Revenue

As of September 30, 2010 and 2009, revenue is detailed as follows:

	9/30/2010		9/31/2009
Type of revenue	ThUS$		ThUS$
Sales of goods		1,319,751		1,046,929
Provision of services		4,985		5,240
Interest income		-		-
Income from royalties		-		-
Income from dividends		-		-
Total		1,324,736		1,052,169

Note 21 - Earnings per Share

Basic earnings per share will be calculated dividing profit for the period for the period attributable to the Company’s shareholders by the weighted average of the number of shares in circulation during that period.

As expressed, basic earnings per share is as follows:

Basic earnings per share	9/30/2010 ThUS$		9/30/2009 ThUS$
Earnings (loss) attributable to the holders of instruments in the net equity of the controlling entity		276,325		259,414

	9/30/2010 Units		9/30/2009 Units
Number of common shares in circulation		263,196,524		263,196,524

	9/30/2010		9/30/2009
Basic earnings per share		1.0499		0.9856

The Company has not made any operation with a potential diluted effect which assumes a diluted benefit per share different from the basic benefit per share.

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

146

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 22 - Loan costs

The costs of interest are recognized as expenses in the year in which they are incurred except for those which are directly related to the acquisition and construction of tangible fixed assets and which comply with the requirements of IAS 23. As of September 30, 2010, total financial expenses incurred amount to ThUS$26,534 (ThUS$23,141 as of September 30, 2009.)

The Company capitalizes all interest costs which directly relate to the construction or the acquisition of property, plant and equipment, which require a substantial time to be suitable for use.

Costs of capitalized interest, property, plant and equipment

The cost of capitalized interest is determined applying weighted average or weighted average of all financing costs incurred by the Company to the monthly end balances of work-in-progress meeting the requirements of IAS 23.

The rates and costs for capitalized interest of property, plant and equipment are detailed as follows:

	9/30/2010			12/31/2009			9/30/2009
Capitalization rate of costs for interest capitalized, property, plant and equipment		7	%		7	%		7	%
Amount of costs for interest capitalized in ThUS$		19,547			19,231			13,089

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

147

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 23 - Effect of variations in the 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:

	9/30/2010 ThUS$			9/30/2009 ThUS$
Foreign currency exchange difference recognized in profit or loss for the period		(6,875	)		(8,528	)
Reserves for foreign currency exchange differences		345			842

b) Reserves for foreign currency exchange differences:

As of September 30, 2010 and December 31, 2009, the detail is as follows:

Detail	9/30/2010 ThUS$		12/31/2009 ThUS$
Changes in equity generated through the proportional equity method  for conversion:
Comercial Hydro S.A.		1,033		946
SQMC Internacional Ltda.		46		43
Proinsa Ltda.		34		32
Agrorama Callegari Ltda.		177		66
Isapre Cruz del Norte Ltda.		86		37
Almacenes y Depósitos Ltda.		72		42
Sales de Magnesio Ltda.		96		53
Sociedad de Servicios de Salud S.A.		35		15
Total		1,579		1,234

The functional currency of these subsidiaries is Chilean peso.

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

148

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 24 - The Environment

24.1 Disclosures on 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.  SQM is currently operating under an Environmental Management System (EMS) which has allowed strengthening 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 crashed, a process in which particle emissions occur; currently this operation is conducted only in the worksite of Pedro de Valdivia. In the María Elena location, crushing units used to operate which affected the air quality. The Company has implemented a range of mitigating actions  that have shown notable improvement in air quality at Maria Elena and beginning on March 2010, no ore crushing process is conducted in the Maria Elena sector.

The Company carries out environmental follow-up and monitoring plans based on specialized scientific studies, and it also provides an annual training program in environmental matters to both its direct employees and its contractors’ employees. Within this context, SQM 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 (Atacama Saltpeter Deposit) 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 Pontificia Universidad Católica in Santiago and the School of Agricultural Science of Universidad de Chile.

Furthermore, within the framework of the environmental studies which the Company is conducting, the Company is performing 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.

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

149

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 24 - The environment, continued

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, and 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 SQM and its subsidiaries have incurred as of September 30, 2010 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 years disbursements related to this projects amounted to ThUS$ 10,269 and their detail is as follows:

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

150

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010
 

Note 24 - The environment, continued

Accumulated expenses as of September 30, 2010

Identification of the Parent Company or subsidiary	Name of the project to which the disbursement is associated	Concept by which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$	Certain or estimated date in which disbursements were or will be made
SQM Industrial S.A.	MCLX – Cleaning of rescue yard	Cost reduction	Expense	Development	604	9-30-2010
SQM Industrial S.A.	ANMI – Consulting in infrastructure to store hazardous chemicals	Sustentation: Risk prevention and the environment	Expense	Development	46	9-30-2010
SQM Industrial S.A.	MNH8 – Lightning improvement	Sustentation	Asset	Development	228	12-31-2010
SQM Industrial S.A.	SCCY – Hazardous waste garbage dump	Sustentation	Expense	Development	165	9-30-2010
SQM Industrial S.A.	JNTU – San Isidro water assessment	Sustentation: Risk prevention and the environment	Asset - Expense	Not classified	556	12-31-2010
SQM Industrial S.A.	JNNX – Several environment nitrate	Sustentation: Risk prevention and the environment	Asset	Not classified	51	9-30-2010
SQM Industrial S.A.	MNTE – industrial hygiene equipment	Sustentation: Risk prevention and the environment	Asset	Development	19	12-31-2010
SQM Industrial S.A.	INST – Acquisition of used lubricant quick discharge. NV-ME-PB	Sustentation: Risk prevention and the environment	Asset	Development	46	7-1-2010
SQM Industrial S.A.	MP17 – Normalization of drinking water chlorination ME/CS/PV	Sustentation	Expense	Not classified	7	12-31-2010
SQM Industrial S.A.	MP5W – Normalization of TK Fuel	Sustentation	Asset	Not classified	392	12-31-2010
SQM Industrial S.A.	FNWR - DIA Pampa Blanca discard yard	Sustentation: Risk prevention and the environment	Asset	Development	30	9-30-2010
SQM Industrial S.A.	MNYS – Actions for the dissemination of cultural heritage , technology change Maria Elena	Sustentation: Risk prevention and the environment	Expense	Not classified	21	12-31-2010
SQM Industrial S.A.	MP8Z – Automation of water volume inlet pipe ME, CS and Vergara	Sustentation	Asset	Development	261	9-30-2010
SQM Industrial S.A.	MPL5 – Repair of sanitary and electric facilities	Sustentation	Asset - Expense	Development	184	9-30-2010
SQM Industrial S.A.	MPIS – Stabilization of streets and suppression of dust at sidewalks	Sustentation	Asset	Development	735	9-30-2010
SQM Industrial S.A.	PPNK – Handling of PV Ammoniac in plant detention	Sustentation: Risk prevention and the environment	Asset	Not classified	22	12-31-2010
SQM Industrial S.A.	MPGF – Improve sealing and pressurization room 031	Sustentation	Asset	Not classified	48	12-31-2010
SQM Industrial S.A.	TPO4 – Indigenous camping	Sustentation	Asset - Expense	Not classified	87	6-11-2010
SQM Industrial S.A.	MPLS – Automated alarms and information of Hospital Monitoring Station	Not  Classified	Asset	Not classified	8	9-30-2010
SQM Industrial S.A.	ACI9 – PCI II (Considers solely environmental expense)	Sustentation: research and development	Expense	Research	7	12-31-2010
SQM Industrial S.A.	PPC1 – Eliminate OCB switches in substations 3 and 1/12 Pedro de Valdivia	Sustentation: equipment replacement	Asset	Not classified	101	12-1--2010
SQM Industrial S.A.	FP55 - Agua de Mar Pampa Blanca(Consider environment expense only	Sustentation	Asset	Development	880	12-31-2010
SQM Industrial S.A.	Management on environment (2010 only)	Not classified	Expense	Not classified	796	12-31-2010

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

151

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010
 

Note 24 - The environment, continued

Accumulated expenses as of September 30, 2010, continued

Identification of the Parent Company or subsidiary	Name of the project to which the disbursement is associated	Concept by which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$	Certain or estimated date in which disbursements were or will be made
Minera Nueva Victoria S.A.	IPNW – Improvements in pavilions C/D/B in Iris	Sustentation	Asset	Not classified	39	12-31-2010
Minera Nueva Victoria S.A.	IPMN – Sanitary capacity enlargement Iris	Capacity extension	Asset	Development	85	9-30-2010
SQM Nitratos S.A.	PNH2 –Waste water treatment plant, wash yards PV-NV-PB	Sustentation: Risk prevention and the environment	Asset - Expense	Development	42	6-29-2010
SQM Nitratos S.A.	PP0V – Environmental projects maintenance ME-PV-NV-PB	Sustentation: Risk prevention and the environment	Asset - Expense	Development	82	12-31-2010
SQM Nitratos S.A.	IP6W - Waste water treatment plant,	Sustentation: Risk prevention and the environment	Asset - Expense	Not classified	95	9-30-2010
SQM Nitratos S.A.	PPAT – Risks prevention projects Sem II 2008	Sustentation: Risk prevention and the environment	Asset	Development	141	12-31-2010
SQM Salar S.A.	LP5K – Environmental evaluation extension production capacity MOP	Sustentation: Risk prevention and the environment	Asset - Expense	Not classified	4	9-30-2010
SQM Salar S.A.	LNNT – Renewal of meteorological station Salar Chaxa	Sustentation: Risk prevention and the environment	Asset	Not classified	98	9-30-2010
SQM Salar S.A.	LP5J – Water research study Atacama Salar	Sustentation: Risk prevention and the environment	Expense	Research	83	12-31-2010
SQM Salar S.A.	LP82 – Project to foster the agricultural activities in Salar locations	Sustentation	Asset - Expense	Development	280	12-31-2010
SQM Salar S.A.	LPGA – Pit construction to infiltrate user water Toconao camp	Capacity extension	Asset	Not classified	105	9-30-2010
SQM Salar S.A.	LPK2 – Implementation of foreign currency exchange facility	Not classified	Asset	Not classified	102	9-30-2010
SQM Salar S.A.	CPTP – Installation drinking water and emergency showers	Sustentation	Asset	Not classified	13	4-1-2011
SQM Salar S.A.	LPPJ – Dual Plant Phase II (considers solely the environment expense)	Capacity extension	Expense	Not classified	6	12-1-2011
SQM Salar S.A.	LPN3 – Compacting and prilling engineering (Consider environmental expense only)	Sustentation: Research and development	Expense	Research	16	7-31-2011
SQM Salar S.A.	LPTF – Environmental essay and prospecting 2010	Sustentation	Asset	Not classified	149	12-31-2010
SQM Salar S.A.	LPTJ – Sanitary work improvements	Sustentation	Asset	Not classified	92	5-1-2011
SIT S.A.	TNLA – Pavement on roads from work site to port	Sustentation: Risk prevention and the environment	Asset	Development	81	9-30-2010
SIT S.A.	PNOT – Lightning improvement in area FFCC	Sustentation	Asset	Development	369	12-31-2010
SIT S.A.	TPR8 – Elimination of waste water generation through vacuum	Sustentation: Risk prevention and the environment	Expense	Not classified	54	12-31-2010
SIT S.A.	TPLR – Implementation of pump system for used water to waste	Sustentation: Risk prevention and the environment	Asset - Expense	Not classified	68	9-30-2010

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

152

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 24 - The environment, continued

Accumulated expenses as of September 30, 2010, continued

Identification of the Parent Company or subsidiary	Name of the project to which the disbursement is associated	Concept by which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$	Certain or estimated date in which disbursements were or will be made
SIT S.A.	TPM7-Environmental meshes in fields 3 and 4	Not classified	Asset	Not classified	524	9-30-2010
SQM S.A.	SCI6 – Environmental essays – Project Region  I	Not classified	Asset – Expense	Not classified	2.333	12-31-2010
SQM S.A.	IPXE – Environmental follow-up plan – Llamara Saltpeter Deposit	Sustentation: Risk prevention and the environment	Expense	Not classified	4	12-1-2012
SQM S.A.	IPFT – Cultural heritage Region I of Chile	Sustentation: Risk prevention and the environment	Asset – Expense	Not classified	110	12-31-2010
	Total				10,269

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

153

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010
 

Note 24 - The environment, continued

Future expenses

Identification of the Parent Company or subsidiary	Name of the project to which the disbursement is associated	Concept by which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$	Certain or estimated date in which disbursements were or will be made
SQM Industrial S.A.	ANMI – Consulting infrastructure to the storage of  Hazardous chemicals  products	Sustentation: Risk prevention and the environment	Expense	Development	4	11-1-2010
SQM Industrial S.A.	MNH8 - Lightning improvement	Sustentation	Asset	Development	20	12-31-2010
SQM Industrial S.A.	MP5W – Normalization of TK fuels	Sustentation	Asset	Not classified	516	12-31-2010
SQM Industrial S.A.	MNYS - Actions for the dissemination of cultural heritage , technology change Maria Elena	Sustentation: Risk prevention and the environment	Expense	Not classified	12	12-31-2010
SQM Industrial S.A.	PPC1 – Eliminate OCB switches in sub stations 3 and1/12 Pedro de Valdivia	Sustentation: Replacement of equipment	Asset	Not classified	171	12-1-2010
SQM Industrial S.A.	PPNK – Handling of Ammoniac PV in plant detention	Sustentation: Risk prevention and the environment	Asset	Not classified	210	12-31-2010
SQM Industrial S.A.	IPNX – Improvement NV Supervisor’s room	Sustentation	Asset - Expense	Not classified	10	12-1-2010
SQM Industrial S.A.	MPLS – Automated alarms and information of Hospital monitoring station	Not classified	Asset	Not classified	2	7-31-2010
SQM Industrial S.A.	PPZU – Normalize and certify plant fuel tanks	Sustentation: Risk prevention and the environment	Expense	Not classified	3.500	7-1-2011
SQM Industrial S.A.	MPQU – Construction of warehouse of hazardous chemical supplies	Sustentation: Risk prevention and the environment	Asset	Development	450	12-15-2010
SQM Industrial S.A.	FP55 – Pampa Blanca sea water (considers environmental expense)	Sustentation	Asset	Development	373	12-31-2010
SQM Industrial S.A.	ACI9 - PCI II Study (considers environmental expense)	Sustentation: Research and development	Asset	Research	16	12-1-2010
SQM Industrial S.A.	Environmental Management (solely 2010)	Not classified	Expense	Not classified	598	12-1-2010
Minera Nueva	IPNW – Improvement in C/D/B pavilions at Iris	Sustentation	Asset	Not classified	5	12-31-2010
SQM Nitratos S.A.	PP0V – Maintenance of environmental projects ME-PV-NV-PB	Sustentation: Risk prevention and the environment	Asset - Expense	Development	4	12-31-2010
SQM Nitratos S.A.	PPAT – Risk prevention projects Sem II 2008	Sustentation: Risk prevention and the environment	Asset	Development	14	12-31-2010
SQM Salar S.A.	LP5J – Water study Water Recharge Atacama Saltpeter deposit	Sustentation: Risk prevention and the environment	Expense	Research	29	12-31-2010
SQM Salar S.A	Nuevo – Study – Improvements in fuel facilities	Sustentation	Asset - Expense	Research	50	12-1-2011
SQM Salar S.A	LP82 – Project to foster agricultural activities in Salar Locations	Sustentation	Asset - Expense	Development	438	12-31-2010
SQM Salar S.A	CPTP – Installation of drinking water emergency showers	Sustentation	Expense	Not classified	13	4-1-2011
SQM Salar S.A.	LPTF – 2010 environmental study and prospecting	Sustentation	Expense	Not classified	246	12-31-2010

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

154

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 24 - The environment, continued

Future expenses, continued

Identification of the Parent Company or subsidiary	Name of the project to which the disbursement is associated	Concept by which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$	Certain or estimated date in which disbursements were or will be made
SQM Salar S.A.	CPZH – Handling of hydroxide press filter waste	Sustentation: Risk prevention and the environment	Asset	Not classified	41	3-30-2011
SQM Salar S.A	LPTJ – Sanitary work improvements	Sustentation	Asset	Not classified	107	5-1-2011
SQM Salar S.A	LPPJ – Dual Plant Phase II (considers solely the environment expense)	Capacity extension	Asset	Not classified	11	12-1-2011
SQM Salar S.A	LPN3 – Compacting and prilling engineering (Consider environmental expense only)	Sustentation: Research and development	Asset	Research	2	11-1-2010
SIT S.A.	PNOT – Lightning improvement in area FFCC	Sustentation	Asset	Development	65	12-1-2010
SIT S.A.	TPR8 – Elimination of waste water generation through vacuum	Sustentation: Risk prevention and the environment	Expense	Not classified	96	12-31-2010
SIT S.A.	TPYX – Enablement of dust collector for dust in the Tocopilla 3 yard rocker and stamp	Sustentation: Risk prevention and the environment	Asset	Development	50	12-31-2010
SQM S.A.	SCI6 – Environmental studies – I Region of Chile Project	Not classified	Asset - Expense	Not classified	52	12-31-2010
SQM S.A.	IPFT - I Region of Chile Cultural heritage	Sustentation: Risk prevention and the environment	Asset - Expense	Not classified	33	12-31-2010
SQM S.A.	IQ08 – PSA Llamara & Tamarugal Meadows	Sustentation: natural resources	Expense	Development	1.761	2-28-2011
SQM S.A.	IPXF- Environmental follow-up plan at Tamarugal Meadows	Sustentation: Risk prevention and the environment	Asset	Not classified	710	12-31-2012
SQM S.A.	IQ0C – Restoration of value NV Mine Zone	Sustentation: Risk prevention and the environment	Asset	Not classified	159	12-31-2011
SQM S.A.	IPXE – Environmental follow-up plan – Llamara Saltpeter deposit	Sustentation: Risk prevention and the environment	Expense	Not classified	838	12-31-2012
Total					10.606

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

155

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010

Note 24 - The environment, continued

Accumulated expenses as of December 31, 2009

Identification of the Parent Company or subsidiary	Name of the project to which the disbursement is associated	Concept by which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$	Certain or estimated date in which disbursements were or will be made
SQM Industrial S.A.	Cleaning of rescue yard	Cost reduction	Expense	Development	569	12-31-2009
SQM Industrial S.A.	Implementation of sewage to ME treatment plant line	Sustentation: Risk prevention and the environment	Expense	Development	32	3-31-2009
SQM Industrial S.A.	Environmental study  - New ME crushing plant	Sustentation: Risk prevention and the environment	Expense	Development	5	4-30-2009
SQM Industrial S.A.	Consulting for infrastructure for the storage of hazardous chemicals	Sustentation: Risk prevention and the environment	Expense	Development	46	12-31-2009
SQM Industrial S.A.	Improvement in lighting	Sustentation	Asset	Development	221	12-31-2009
SQM Industrial S.A.	Sanitary facility ME prilling plant	Sustentation: Risk prevention and the environment	Expense	Not classified	44	9-30-2009
SQM Industrial S.A.	Hazardous waste garbage dump	Sustentation	Asset	Development	165	12-31-2009
SQM Industrial S.A.	San Isidro water assessment	Sustentation: Risk prevention and the environment	Asset-Expense	Not classified	505	12-31-2009
SQM Industrial S.A.	Improvement in NH3 level measurement	Sustentation	Expense	Not classified	64	12-30-2009
SQM Industrial S.A.	PV sanitary regulations traffic facilities	Sustentation: Risk prevention and the environment	Expense	Not classified	82	8-30-2009
SQM Industrial S.A.	Industrial hygiene equipment	Sustentation: Risk prevention and the environment	Asset	Development	31	12-31-2009
SQM Industrial S.A.	Replacement of starters and transformers with  PCB	Sustentation: Risk prevention and the environment	Expense	Not classified	4	12-31-2009
SQM Industrial S.A.	Acquisition for quick evacuation for used lubricants. NV-ME-PB	Sustentation: Risk prevention and the environment	Asset	Development	45	12-31-2009
SQM Industrial S.A.	Handling of waste at Antofagasta	Sustentation: Risk prevention and the environment	Asset	Not classified	17	12-31-2009
SQM Industrial S.A.	Normalization drinking water chloride ME/CS/PV	Sustentation	Expense	Not classified	7	2-28-2009
SQM Industrial S.A.	Normalization of TK fuels	Sustentation	Asset	Not classified	160	12-31-2009
SQM Industrial S.A.	DIA Discard field Pampa Blanca	Sustentation: Risk prevention and the environment	Asset	Development	30	12-31-2009
SQM Industrial S.A.	Actions for the dissemination of cultural heritage, technology change Maria Elena	Sustentation: Risk prevention and the environment	Expense	Not classified	20	12-31-2009
SQM Industrial S.A.	Chamber to detect gas leaking	Sustentation: Risk prevention and the environment	Expense	Research	5	1-31-2009
SQM Industrial S.A.	Automation of water volume inlet pipe ME, CS and Vergara	Sustentation	Asset	Development	261	12-31-2009
SQM Industrial S.A.	Repair of sanitary and electric facilities	Sustentation	Asset-Expense	Development	165	12-31-2009

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

156

    Notes to the Interim Consolidated Financial Statements as of September 30, 2010
 

Note 24 - The environment, continued

Accumulated expenses as of December 31, 2009, continued

Identification of the Parent Company or subsidiary	Name of the project to which the disbursement is associated	Concept by which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$	Certain or estimated date in which disbursements were or will be made
SQM Industrial S.A.	MPIS – Stabilization of streets and suppression of dust at sidewalks	Sustentation	Asset	Development	689	6-30-2009
SQM Industrial S.A.	Improve sealing and pressurization room 031	Sustentation	Asset	Not classified	42	11-1-2009
SQM Industrial S.A.	Nitrate miscellaneous project	Sustentation: Risk prevention and the environment	Asset	Not classified	51	12-31-2009
SQM Industrial S.A.	Automated alarms and information of monitoring station Hospital	Not classified	Asset	Not classified	8	12-30-2009
SQM Industrial S.A.	Handling of PV ammonia in Detention of plant	Sustentation: Risk prevention and the environment	Asset	Not classified	1	12-1-2009
SQM Industrial S.A.	Indigenous camp	Sustentation	Asset-Expense	Not classified	83	12-31-2009
SQM Industrial S.A.	Pampa Blanca sea water (DIA Mine Zone PB and DIA extension PB)	Sustentation	Asset	Development	461	12-30-2009
SQM Industrial S.A.	Environmental Management	Operations	Expense	Not classified	1.235	12-31-2009
Minera Nueva Victoria	Extension in sanitary capacity for Iris	Capacity extension	Asset	Development	85	12-31-2009
SQM Nitratos S.A.	Waste water treatment plant washing surfaces PV-NV-PB	Sustentation: Risk prevention and the environment	Asset-Expense	Development	42	12-31-2009
SQM Nitratos S.A.	Maintenance of Environmental projects ME-PV-NV-PB	Sustentation: Risk prevention and the environment	Asset-Expense	Development	82	12-31-2009
SQM Nitratos S.A.	Waste water treatment plant	Sustentation: Risk prevention and the environment	Asset-Expense	Not classified	95	12-31-2009
SQM Nitratos S.A.	Risk prevention projects Sem II 2008	Sustentation: Risk prevention and the environment	Asset	Development	117	12-31-2009

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

157

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 24 - The environment, continued

Accumulated expenses as of December 31, 2009, continued

Identification of the Parent Company or subsidiary	Name of the project to which the disbursement is associated	Concept by which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$	Certain or estimated date in which disbursements were or will be made
SQM Salar S.A.	Environmental evaluation extension of production capacity MOP	Sustentation: Risk prevention and the environment	Asset-Expense	Not classified	38	12-31-2009
SQM Salar S.A.	Detailed engineering and implementation of a dust collector	Sustentation	Expense	Not classified	81	8-30-2009
SQM Salar S.A.	Renewal of meteorological station Chaxa saltpeter deposit	Sustentation: Risk prevention and the environment	Asset	Not classified	98	12-31-2009
SQM Salar S.A.	Study for water recharge at Atacama saltpeter	Sustentation: Risk prevention and the environment	Expense	Research	42	8-31-2009
SQM Salar S.A.	Construction of pit  for used water infiltration, Toconao camp	Capacity extension	Asset	Not classified	106	12-31-2009
SQM Salar S.A.	Project to foster the agricultural activity in saltpeter locations	Sustentation	Asset-Expense	Development	131	12-31-2009
SQM Salar S.A.	Implementation of currency Exchange facility	Not classified	Asset	Not classified	105	2-28-2010
SQM Salar S.A.	Dual MOP-SOP (DIA Plant Modification SOP)	Capacity extension	Asset	Development	14	12-31-2009
SQM Salar S.A.	Dryer MOP (DIA Potassium chloride dryer plant)	Capacity extension	Asset	Development	19	12-31-2009
SIT S.A.	Pavement of Work location- port road	Sustentation: Risk prevention and the environment	Asset	Development	82	12-31-2009
SIT S.A.	Risk prevention plan Port	Sustentation: Risk prevention and the environment	Asset-Expense	Development	101	12-31-2009
SIT S.A.	Lightning improvement, railroad area	Sustentation	Asset	Development	365	12-31-2009
SIT S.A.	Implementation of a system to pump sewage to dump	Sustentation: Risk prevention and the environment	Asset-Expense	Not classified	68	12-31-2009
SIT S.A.	Environmental meshes for fields 3 and 4	Not classified	Asset	Not classified	164	12-30-2009
SQM S.A.	Environmental study -  Region I  project	Not classified	Asset-Expense	Not classified	2.091	6-30-2010
SQM S.A.	Environmental commitments Nueva Victoria mine Zone	Sustentation: Risk prevention and the environment	Expense	Not classified	275	3-30-2009
SQM S.A.	Cultural heritage Region I	Sustentation: Risk prevention and the environment	Asset-Expense	Not classified	75	12-30-2009
				Total	9,324

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

158

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 24 - The environment, continued

Future expenses as of December 31, 2009

Identification of the Parent Company or subsidiary	Name of the project to which the disbursement is associated	Concept by which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$	Certain or estimated date in which disbursements were or will be made
SQM Industrial S.A.	Consulting in infrastructure to store hazardous chemicals	Sustentation: Risk prevention and the environment	Expense	Development	4	12-31-2010
SQM Industrial S.A.	Improvement in lighting	Sustentation	Asset	Development	27	12-31-2010
SQM Industrial S.A.	San Isidro water assessment	Sustentation: Risk prevention and the environment	Asset/Expense	Not classified	352	12-31-2010
SQM Industrial S.A.	Normalization of drinking water chlorination, ME/CS/PV	Sustentation	Expense	Not classified	88	12-31-2010
SQM Industrial S.A.	Normalization of TK´s fuel	Sustentation	Asset	Not classified	748	12-31-2010
SQM Industrial S.A.	Cultural heritage dissemination actions, Technological change at Maria Elena	Sustentation: Risk prevention and the environment	Expense	Not classified	13	12-31-2010
SQM Industrial S.A.	Elimination of OCB switches at 3 and 1/12 Pedro de Valdivia sub stations	Sustentation: Replacement of equipment	Asset	Not classified	171	12-31-2010
SQM Industrial S.A.	Improve sealing and pressurization of 031 room	Sustentation	Asset	Not classified	28	12-31-2010
SQM Industrial S.A.	Improve the NV supervisors’ hall	Sustentation	Asset/Expense	Not classified	10	12-31-2010
SQM Industrial S.A.	Automation of alarms and information on Hospital Monitoring station	Not classified	Asset	Not classified	2	12-31-2010
SQM Industrial S.A.	Handling of PV ammonia at plant stoppage	Sustentation: Risk prevention and the environment	Asset	Not classified	134	12-31-2010
SQM Industrial S.A.	Pampa Blanca sea water (DIA PB mine zone and DIA PB extension)	Sustentation	Asset	Development	30	12-31-2010
SQM Industrial S.A.	Environmental management	Sustentation	Expense	Not classified	1,239	12-31-2010
Minera Nueva Victoria	Improvements in Iris C/D/B halls	Sustentation	Asset	Not classified	44	12-31-2010
SQM Nitratos S.A.	ME-PV-NV-PB environmental maintenance projects	Sustentation: Risk prevention and the environment	Asset-Expense	Development	4	12-31-2010
SQM Nitratos S.A.	Risk prevention projects Sem II 2008	Sustentation: Risk prevention and the environment	Asset	Development	38	12-31-2010
SQM Nitratos S.A.	Construction of sewerage system at  Lagarto.	Capacity extension	Asset-Expense	Development	100	12-31-2010
SQM Salar S.A.	Renewal of Chaxa saltpeter deposit meteorological station	Sustentation: Risk prevention and the environment	Asset	Not classified	1	12-31-2010
SQM Salar S.A	Water recharge study, Atacama saltpeter deposit	Sustentation: Risk prevention and the environment	Expense	Research	70	12-31-2010
SQM Salar S.A	Project to foster the agricultural activity in the saltpeter deposit locations	Sustentation	Asset-Expense	Development	212	12-31-2010
SQM Salar S.A	Fuel facility improvement study	Sustentation	Asset-Expense	Research	50	12-31-2011
SIT S.A.	Improvement in lighting in the railroad area	Sustentation	Asset	Development	64	12-31-2010
SIT S.A.	Environmental meshes for fields 3 and 4	Not classified	Asset	Not classified	66	12-31-2010

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

159

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 24 - The environment, continued

Future expenses as of December 31, 2009, continued

Identification of the Parent Company or subsidiary	Name of the project to which the disbursement is associated	Concept by which the disbursement was made or will be made	Asset / Expense	Description of the asset or expense Item	Amount of disbursement for the Period ThUS$	Certain or estimated date in which disbursements were or will be made
SIT S.A.	Elimination of waste water generation through vacuum	Sustentation: Risk prevention and the environment	Expense	Not classified	150	6-30-2010
SQM S.A.	Environmental studies  – Region I project	Not classified	Asset-Expense	Not classified	184	6-30-2010
SQM S.A.	Cultural Heritage Region  I	Sustentation: Risk prevention and the environment	Asset-Expense	Not classified	440	12-31-2010
				Total	4,269

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

160

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 24 - The environment, continued

24.3 Description of each project indicating whether these are in process or have been finished

SQM Industrial S.A.

MCLX: Cleaning of all rescue yards at all SQM’s plants (25 yards.) This project consists of cleaning and/or sorting rescue yards, selecting and selling all waste products which can be commercialized in these yards.  Identify and destine household waste to authorized garbage dumps. This process is in the closure period.

ANMI: Compliance with technical, legal aspects and specific standards required with respect to warehousing, signaling, safety and main factors associated with materials, products and supplies which are handled in the mine site. In addition, the Company will implement an improvement in the warehouse infrastructure for the storage of hazardous chemicals.  This project is being executed.

MNH8: Improvement in the lighting in the Maria Elena location given that there are certain areas, which have no lighting, wires without channeling and timeworn wiring.  This project is being executed.

SCCY: Conceptual engineering and environmental study for the construction of a storage facility for hazardous waste generated at the Company’s facilities due to the performance of different processes.  The project is in the closure process.

JNTU: Assessment of the environmental impact of San Isidro water. This project is being executed.

JNNX: Incorporation of UV sensor at the Coya Sur meteorological station, perimeter closure of the Nueva Victoria meteorological station and geo-reference of new emission sources at Toco and Coya Sur.  This project is in the closure process.

MNTE: Acquisition of stationary equipment for the quantitative measurement of harmful agents at the Company’s facilities.  This project is being executed.

INST: Implementation of a circuit for the drainage of oil directly from the equipment which moves the earth to the ALU storage tanks.  This project is at the closure stage.

MP17: A study and identification will be conducted in respect to the current water chlorination system at Maria Elena, Coya Sur and Pedro de Valdivia facilities for the subsequent implementation and start-up of water chlorination in accordance with standards in force.  This project is being executed.

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

161

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 24 - The environment, continued

MP5W: Normalization of the system for the storage and distribution of fuel at the Company’s facilities.  This project is being executed.

FNWR: Preparation and processing of DIA for the Pampa Blanca discard yard. This project is in the process of closure.

MNYS: Preparation and execution of the geoglyphs preservation project.  Edition and publishing of a book in addition to implementing a dissemination center. Construction and habilitation of a collection deposit. All offsetting steps for the Technological Change at Maria Elena project. This project is being executed.

MP8Z: Implement a control system at inlet pipes at rivers at ME, CS and Vergara, which allow automating the control of these flows. In addition, this project requires the complementation of the satellite extraction control system recently implemented at inlet pipes to ensure full compliance with rights authorized by the (General Water Directorate) DGA and, therefore, also ensure the usual water supply required by SQM. This process is in the closure process.

MPL5: Improvement of a portion of the water network infrastructure and sewage system at Maria Elena. This project is being executed.

MPIS: Improve the urban situation at Maria Elena, placing a stabilization layer with product at the streets and anti-dust treatment with product in sidewalks.  This project is being executed.

PPNK: Project to ensure the control of ammonia gas in crystal plant stoppage. This project is being executed.

MPGF: Eliminate pollution in substation 031 due to the inefficient sealing system.  This project is being executed.

TPO4: Project to change the drinking water system and sewage system in the indigenous camp to improve living conditions.  This project is being executed.

MPLS: Implement alarms via emails as to peak concentration of particle materials and change in the recording of information from text files to database for the implementation of reports. This project is being executed.

PPC1: The project consists in purchase of modern switches in order to replace equipments using PCB. This project is being executed.

FP55: This project consists of the installation of the 87 kilometer sea water adductor system from the Mejillones zone to the Company’s facilities in Pampa Blanca. Expenses considered relate solely to environmental processing.  This project is being executed.

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

162

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 24 - The environment, continued

MPIS: Improve the urban situation at Maria Elena, placing a stabilization layer with product at the streets and anti-dust treatment with product in sidewalks.  This project is being executed.

MPGF: Eliminate pollution in substation 031 due to the inefficient sealing system.  This project is being executed.

JNNX: Incorporation of UV sensor at the Coya Sur meteorological station, perimeter closure of the Nueva Victoria meteorological station and geo-reference of new emission sources at Toco and Coya Sur.  This project is in the closure process.

MPLS: Implement alarms via emails as to peak concentration of particle materials and change in the recording of information from text files to database for the implementation of reports. This project is being executed.

PPNK: Project to ensure the control of ammonia gas in crystal plant stoppage. This project is being executed.

TPO4: Project to change the drinking water system and sewage system in the indigenous camp to improve living conditions.  This project is being executed.

FP55: This project consists of the installation of the 87 kilometer sea water adductor system from the Mejillones zone to the Company’s facilities in Pampa Blanca. Expenses considered relate solely to environmental processing.  This project is being executed.

Minera Nueva Victoria S.A.

IPNW: Relates to the replacement or impaired sanitary in order to improve the hygiene conditions. This project is being executed.

IPMN: Extend the sanitary capacity of the IRIS camp through the construction of 3 wells. This project is being executed.

SQM Nitratos S.A.

PNH2: Design and construct pouring off tanks for mud, water, oil and a pool with a pump to re-use poured off water, metallic pools to remove mud.  This project is being executed.

PP0V: Installation of a container for hazardous waste at workshops for maintenance and removal of liquid industrial waste from hydraulic filters, workshop for mine maintenance at Maria Elena, Pedro de Valdivia, Nueva Victoria and Pampa Blanca.  This project is being executed.

IP6W: Design and construct pouring off tanks for mud, water, oil and a pool with a pump to re-use poured off water, metallic pools to remove mud.  This project is in the closure process.

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

163

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 24 - The environment, continued

PPAT: Through this project the Company intends to comply with the current sanitary standards with respect to water treatment and waste infiltration at certain sectors in Pedro de Valdivia and Maria Elena. This project is being executed.

SQM Salar S.A.

LP5K: Environmental assessment through DIA of the project for the extension of the MOP production capacity. This project is in the closure process.

LNNT: Through this project, the Company intends to have reliable measurements of the climatologic seasonal variation in the saltpeter deposit, timely measurements for the preparation of reports and programs and deliver actual information to the environmental authority.  This project is in the closure process.

LP5J: Conduct analyses to define the hydrological units in the basin, quantify the reload to the aquifer through environmental isotopic techniques. This project is being executed.

LP82: Support for the development of demonstration estate, technical support for the application of improvements in watering and agricultural practices. This project is being executed.

LPGA: Improvement in the discharge of sewage already treated. This project is in the closure process.

LPK2: Improve sanitary facilities in the current money exchange, MOP sector to comply with all requirements of the mine’s different users. This project is in the closure process.

LPTF: Perform semiannual reports which are necessary to present improvements and optimizations to the environmental control points. An improvement should be made to the environmental, geological and hydro geological variables in the Atacama saltpeter deposit. This project is being executed.

LPTJ: The project relates to the acquisition of stand equipment in order to ensure the operating continuity of plants TAS and OR, change in the current level control system in drinking water accumulation at TKs, used water and used water lifting chambers, among others. This project is being executed.

SIT S.A.

TNLA: Paving of yard 2 roads and Southern access to the Tocopilla port given that these are the source of dust and emissions and risk of accidents in the operation of machinery.  This project is in the closure process.

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

164

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 24 - The environment, continued

PNOT: Improve night lighting in sectors with high number of movements, installing sodium bulbs more continuously with an angle of 45°. This will allow complying with Safety and Lighting Regulation Standards.  This project is in the closure process.

TPR8: This project is intended to decrease waste water generation by means of using non-wash and vacuum technologies, through the implementation of a vacuum system which avoid the use of water and therefore, the generation of waste water. This project is being executed.

TPLR: The objective of the process is being able to discharge waste water generated in the Tocopilla port to the public sewage system.  This project is being executed.

TPM7: Meshes will be acquired which will be installed in yards 3 and 4 to control dust emissions in sieving operations and protect product from emissions generated by the power plant. This project is being executed.

SQM S.A.

SCI6: This project is intended to obtain environmental licenses for the Development projects in Region I of Chile including all pieces of work related to initial environmental requirements which allow that Operations execute the project’s construction and operation. The environmental evaluation to obtain the related license would be conducted through EIS, which contemplates the preparation and processing of the document and also includes specific environmental study activities (the study of tamarugos in Llamara and Tamarugal M., archeological mitigation steps, environmental study of Loa river, hydro geological studies.) This project is being executed.

IPFT: This project contemplates the implementation of heritage steps committed in the projects referred to as Nueva Victoria Mine Zone, Nueva Victoria Operation Updates, Iris Duct and Evaporation Pools. This project is being executed.

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

165

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 25 - Other current and non-current non financial assets

As of September 30, 2010, December 31, 2009 and January 1, 2009, the composition of the other current and non-current assets is detailed as follows:

Other non-financial assets, current	9/30/2010		12/31/2009		1/1/2009
	ThUS$		ThUS$		ThUS$
Agreement termination bonus		2,166		2,191		990
Domestic Value Added Tax		14,171		23,246		24,650
Foreign Value Added Tax		3,112		3,080		10,666
Prepaid mining licenses		3,221		1,104		1,183
Prepaid insurance		1,037		4,062		4,085
Commercial and industrial patents		746		-		-
Prepaid leases		32		29		145
Marine concessions		14		39		30
Other prepaid expenses		218		42		46
Other assets		676		582		176
Total		25,393		34,375		41,971

Other non-financial assets, non-current	9/30/2010		12/31/2009		1/1/2009
	ThUS$		ThUS$		ThUS$
End of collective negotiation bonus		2,051		2,842		454
Stain development expenses and prospecting expenses (1)		25,672		26,832		24,892
Income taxes recoverable		599		567		454
Guarantee deposits		492		467		308
Other assets		121		172		336
Total		28,935		30,880		26,444

(1) Assets for the exploration and evaluation of mineral resources are amortized when the explored or evaluated sector is exploited. For this purpose, a variable rate is applied to extracted tons, which is determined based on the measured initial reserve and evaluation cost.  The Company presents expenses associated with Exploration and Evaluation of Mineral Resources.  Of these expenses those that are under exploitation are included under Inventories and are amortized according to the estimated contained ore reserves and expenses associated with future reserves are presented under Other non-current assets.  Those expenses incurred on properties with low ore grade which are not economically exploitable are directly charged to profit or loss. As of September 30, 2010, balances associated with the exploration and assessment of mineral resources are presented under Inventories for ThUS$ 1,893.

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

166

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 25 - Other current and non-current non financial assets, continued

Reconciliation of changes in assets for exploration and mineral resource evaluation, by classes

Movements in assets for the exploration and evaluation of mineral resources as of September 31, 2010 and December 31, 2009:

Reconciliation	9/30/2010			12/31/2009
	ThUS$			ThUS$
Assets for the exploration and evaluation of mineral resources, net, beginning balance		26,832			24,892
Changes in assets for exploration and assessment of mineral resources:
Additions, different from business combinations		-			5,446
Depreciation and amortization		(1,553	)		( 2,641	)
Increase (decrease) for transfers and other charges		393			(865	)
Assets for exploration and assessment of mineral resources, net, final balance		25,672			26,832

At the date of presentation, no reevaluations of assets for exploration and assessment of mineral resources have been conducted.

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

 

167

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 26 - Operating segments

26.1     Operating segments

In accordance with IFRS 8 "Operating segments", the Company provides financial and descriptions about the segments it has defined in consideration of available annual separate financial information, which is regularly evaluated by the maximum authority in making operating decisions with the purpose of deciding how to assign resources and assess performance.

Operating segments relate to the following groups of products which provide revenue and for which the Company incurs expenses and the result of which is regularly reviewed by the Company's maximum authority in the decision-making process:

1. Specialty plant nutrients

2. Iodine and its derivatives

3. Lithium and its derivatives

4. Industrial chemicals

5. Potassium

6. Other products and services

Information relative to assets, liabilities and profit and expenses which cannot be assigned to the segments indicated above, due to the nature of production processes, is included under the "Corporate Unit" category of disclosures.

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

168

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 26 - Operating segments, continued

26.2           Statement of comprehensive income classified by operating segment based on product groups as of September 30, 2010

Items in the statement of comprehensive income	Specialty plant nutrients			Iodine and its derivatives			Lithium and its derivatives			Industrial chemicals			Potassium			Other products and services			Corporate unit			Total segments and Corporate unit
Revenue		452,474			241,826			114,329			109,543			356,794			49,770			-			1,324,736
Cost of sales		(318,929	)		(135,838	)		(64,997	)		(61,419	)		(242,715	)		(46,466	)		-			(870,364	)
Gross profit		133,545			105,988			49,332			48,124			114,079			3,304			-			454,372
Other income by function		-			-			-			-			-			-			5,617			5,617
Administrative expenses		-			-			-			-			-			-			(55,455	)		(55,455	)
Other expenses by function		-			-			-			-			-			-			(16,255	)		(16,255	)
Other losses (gains)		-			-			-			-			-			-			(5,870	)		(5,870	)
Finance income		-			-			-			-			-			-			6,501			6,501
Finance expenses		-			-			-			-			-			-			(26,534	)		(26,534	)
Interest in gains (losses) from associates and joint ventures accounted for using the equity method		-			-			-			-			-			-			8,299			8,299
Foreign currency exchange differences		-			-			-			-			-			-			(6,875	)		(6,875	)
Profit (loss) before taxes		133,545			105,988			49,332			48,124			114,079			3,304			(90,572	)		363,800
Income tax expense		-			-			-			-			-			-			(84,359	)		(84,359	)
Gain (loss) from continuing operations		133,545			105,988			49,332			48,124			114,079			3,304			(174,931	)		279,441
Gain (loss) from discontinued operations		-			-			-			-			-			-			-			-
Profit (loss)		133,545			105,988			49,332			48,124			114,079			3,304			(174,931	)		279,441
Profit (loss) attributable to:
Parent company’s owners		-			-			-			-			-			-			-			276,325
Non-controlling interest		-			-			-			-			-			-			-			3,116
Net profit (loss) for the period		-			-			-			-			-			-			-			279,441

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

169

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 26 - Operating segments, continued

26.2       Statement of comprehensive income classified by operating segment based on product groups as of September 30, 2009, continued

Items in the statement of comprehensive income	Specialty plant nutrients			Iodine and its derivatives			Lithium and its derivatives			Industrial chemicals			Potassium			Other products and services			Corporate unit			Total segments and Corporate unit
Revenue		400,314			140,290			84,428			80,942			287,104			59,091			-			1,052,169
Cost of sales		(276,161	)		(47,282	)		(41,526	)		(41,808	)		(181,887	)		(56,008	)		-			(644,672	)
Gross profit		124,153			93,008			42,902			39,134			105,217			3,083			-			407,497
Other income by function		-			-			-			-			-			-			5,405			5,405
Administrative expenses		-			-			-			-			-			-			(53,436	)		(53,436	)
Other expenses by function		-			-			-			-			-			-			(18,936	)		(18,936	)
Other gains (losses)		-			-			-			-			-			-			(1,652	)		(1,652	)
Finance income		-			-			-			-			-			-			10,093			10,093
Finance expenses		-			-			-			-			-			-			(23,141	)		(23,141	)
Interest in gains (losses) from associates and joint ventures accounted for using the equity method		-			-			-			-			-			-			1,712			1,712
Foreign currency exchange differences		-			-			-			-			-			-			(8,528	)		(8,528	)
Profit (loss) before taxes		124,153			93,008			42,902			39,134			105,217			3,083			(88,483	)		319,014
Income tax expense		-			-			-			-			-			-			(60,198	)		(60,198	)
Gain (loss) from continuing operations		124,153			93,008			42,902			39,134			105,217			3,083			(148,681	)		258,816
Gain (loss) from discontinued operations		-			-			-			-			-			-			-			-
Profit (loss)		124,153			93,008			42,902			39,134			105,217			3,083			(148,681	)		258,816
Profit (loss) attributable to:
Parent company’s owners		-			-			-			-			-			-			-			259,414
Non-controlling interest		-			-			-			-			-			-						-598
Net profit (loss) for the period		-			-			-			-			-			-			-			258,816

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

170

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 26 - Operating segments, continued

26.3       Assets and liabilities by operating segment based on product groups as of September 30, 2010

Items in the statement of comprehensive income	Specialty plant nutrients		Iodine and its derivatives		Lithium and its derivatives		Industrial chemicals		Potassium		Other products and services		Corporate unit		Total segments and Corporate unit			Items in the statement of comprehensive income
Current assets		-		-		-		-		-		-		5,050,856		(3,194,928	)		1,855,928
Non-current assets		-		-		-		-		-		-		3,903,550		(2,371,151	)		1,532,399
Total assets		-		-		-		-		-		-		8,954,406		(5,566,079	)		3,388,327
Current liabilities		-		-		-		-		-		-		3,362,497		(2,913,881	)		448,616
Non-current liabilities		-		-		-		-		-		-		1,553,809		(288,677	)		1,265,132
Total equity		-		-		-		-		-		-		4,038,100		(2,363,521	)		1,674,579
Profit (loss)		-		-		-		-		-		-		8,954,406		(5,566,079	)		3,388,327

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

171

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 26 - Operating segments, continued

26.3       Assets and liabilities by operating segment based on product groups as of December 31, 2009

Items in the statement of comprehensive income	Specialty plant nutrients		Iodine and its derivatives		Lithium and its derivatives		Industrial chemicals		Potassium		Other products and services		Corporate unit		Total segments and Corporate unit			Items in the statement of comprehensive income
Current assets		-		-		-		-		-		-		4,579,653		(2,872,280	)		1,707,373
Non-current assets		-		-		-		-		-		-		3,437,853		(2,003,422	)		1,434,431
Total assets		-		-		-		-		-		-		8,017,506		(4,875,702	)		3,141,804
Current liabilities		-		-		-		-		-		-		3,096,924		(2,551,882	)		545,042
Non-current liabilities		-		-		-		-		-		-		1,404,841		(272,529	)		1,132,312
Total equity		-		-		-		-		-		-		3,515,741		(2,051,291	)		1,464,450
Profit (loss)		-		-		-		-		-		-		8,017,506		(4,875,702	)		3,141,804

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

172

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 26 - Operating segments, continued

26.4       Disbursements of segment’s non-cash assets as of September 30, 2010

Identification of disbursements of non-monetary assets	Chile		Latin America and the Caribbean		Europe		North America		Asia and others		Balances according to the Statement of Financial Position
Investments in joint ventures		-		-		-		-		3,500		3,500
SQM Quindao - Star		-		-		-		-		1,000		1,000
SQM Migao Sichuan										2,500		2,500
Amounts in additions of non-current assets		235,553		-		-		-		-		235,553
- Property, plant and equipment		235,289		-		-		-		-		235,289
- Intangible assets		264		-		-		-		-		264
Total segments		235,553		-		-		-		3,500		239,053

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

173

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 26 - Operating segments, continued

26.4       Disbursements of segment’s non-cash assets as of December 31, 2009

Identification of disbursements of non-monetary assets	Chile		Latin America and the Caribbean		Europe		North America		Asia and others		Balances according to the Statement of Financial Position
Investments in joint ventures		-		-		-		-		3,530		3,530
SQM Migao Sichuan		-		-		-		-		3,000		3,000
Coromandel SQM India		-		-		-		-		530		530
Amounts in additions of non-current assets		376,515		-		-		-		-		376,515
- Property, plant and equipment		376,186		-		-		-		-		376,186
- Intangible assets		329		-		-		-		-		329
Total segments		376,515		-		-		-		3,530		380,045

26.5       Information on products and services for external customers

Revenue from external customers by product and service groups as of September 30, 2010 is detailed as follows:

Items in the statement of comprehensive income	Specialty plant nutrients		Iodine and its derivatives		Lithium and its derivatives		Industrial chemicals		Potassium		Other products and services		Total segments and Corporate Unit
Revenue		452,474		241,826		114,329		109,543		356,794		49,770		1,324,736

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

174

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 26 - Operating segments, continued

26.5       Information on products and services for external customers, continued

Revenue from external customers by product and service groups as of September 30, 2009 is detailed as follows:

Items in the statement of comprehensive income	Specialty plant nutrients		Iodine and its derivatives		Lithium and its derivatives		Industrial chemicals		Potassium		Other products and services		Total segments and Corporate Unit
Revenue		400,314		140,290		84,428		80,942		287,104		59,091		1,052,169

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

175

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 26 - Operating segments, continued

26.6       Information on geographical areas

As indicated in paragraph 33 of IFRS 8, the entity discloses geographical information on its profit from ordinary activities from external customers and from non-current assets which are not financial instruments, deferred income tax assets, assets related to post-employment benefits and rights derived from insurance contracts.

26.7       Revenue from external customers, classified by geographical areas as of September 30, 2010:

Identification of revenue from external customers	Chile		Latin America and the Caribbean		Europe		North America		Asia and others		Balances according to the Statement of comprehensive income
Revenue		136,045		132,109		578,412		273,877		204,293		1,324,736

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

176

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 26 - Operating segments, continued

26.7       Revenue from external customers, classified by geographical areas as of September 30, 2009:

Identification of revenue from external customers	Chile		Latin America and the Caribbean		Europe		North America		Asia and others		Balances according to the Statement of comprehensive income
Revenue		186,086		123,912		320,367		247,029		174,775		1,052,169

26.8       Non-current assets classified by geographical area as of September 30, 2010:

Identification of revenue from external customers	Chile		Latin America and the Caribbean		Europe		North America		Asia and others		Balances according to the Statement of financial position
Investments in associates recognized using the equity method of accounting		1,065		-		20,472		6,685		33,704		61,926
Intangible assets other than goodwill		2,536		-		12		516		-		3,064
Goodwill		24,147		86		11,373		724		2,058		38,388
Property, plant and equipment, net		1,391,553		1,931		365		46		194		1,394,089
Investment property		1,381		-		-		-		-		1,381
Other non-current assets		28,266		343		-		-		326		28,935
Balance to date		1,448,948		2,360		32,222		7,971		36,282		1,527,783

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000 www.sqm.com

177

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 26 - Operating segments, continued

26.8      Non-current assets classified by geographical area as of December 31, 2009:

Non-current asset item, adjusted  (IFRS 8,33,b,1/11/2006)	Chile		Latin  America and  the  Caribbean		Europe		North America		Asia and  others		Balances  according to  the Statement  of Financial  Position
Investments in associates recognized using the equity method of accounting		328		-		18,853		6,653		29,351		55,185
Intangible assets other than goodwill		2,267		-		-		569		-		2,836
Goodwill		24,248		86		11,373		724		1,957		38,388
Property, plant and equipment, net		1,297,830		293		474		1,766		183		1,300,546
Investment property		1,405		-		-		-		-		1,405
Other non-current assets		28,529		1,017		-		1,037		297		30,880
Balance to date		1,354,607		1,396		30,700		10,749		31,788		1,429,240

26.9      Information on the main customers

In respect to the degree of dependency of the Company on its customers, in accordance with paragraph 34 of IFRS 8, the Company has no external customers which individually represent 10% or more of its profit from ordinary activities.  Credit risk concentrations with respect to trade and other receivables are limited due to the significant number of entities which compose the Company’s portfolio and its worldwide distribution. The Company’s policy is requiring guarantees (such as letters of credit, guarantee clauses and others) and/or maintaining insurance policies for certain accounts as deemed necessary by the Company's Management.

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

178

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 26 - Operating segments, continued

26.10    Property, plant and equipment classified by geographical areas as of September 30, 2010:

Property, plant and equipment	Chile		Latin America and the Caribbean		Europe		North America		Asia and others		Total
	9/30/2010
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Production facilities:
Coya Sur		252,304		-		-		-		-		252,304
María Elena		133,067		-		-		-		-		133,067
Nueva Victoria		199,815		-		-		-		-		199,815
Pampa Blanca		23,684		-		-		-		-		23,684
Pedro de Valdivia		85,061		-		-		-		-		85,061
Atacama saltpeter deposit		397,337		-		-		-		-		397,337
Carmen saltpeter deposit		215,164		-		-		-		-		215,164
Tocopilla (port facilities)		61,028		-		-		-		-		61,028
Subtotal production facilities		1,367,460		-		-		-		-		1,367,460
Corporate facilities:
Santiago		14,584		-		-		-		-		14,584
Antofagasta		7,462		-		-		-		-		7,462
Subtotal corporate facilities		22,046		-		-		-		-		22,046
Subtotal business offices		2,047		1,931		365		46		194		4,583
Total segments		1,391,553		1,931		365		46		194		1,394,089

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

179

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 26 - Operating segments, continued

26.10    Property, plant and equipment classified by geographical areas as of December 31, 2009

Property, plant and equipment	Chile		Latin America  and the  Caribbean		Europe		North America		Asia and  others		Total
	12/31/2009
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Production  facilities:
Coya Sur		252,138		-		-		-		-		252,138
María Elena		142,442		-		-		-		-		142,442
Nueva Victoria		202,037		-		-		-		-		202,037
Pampa Blanca		25,271		-		-		-		-		25,271
Pedro de Valdivia		73,203		-		-		-		-		73,203
Atacama saltpeter deposit		302,840		-		-		-		-		302,840
Carmen saltpeter deposit		222,093		-		-		-		-		222,093
Tocopilla (port facilities)		59,132		-		-		-		-		59,132
Subtotal production facilities		1,279,156		-		-		-		-		1,279,156
Corporate facilities:
Santiago		12,233		-		-		-		-		12,233
Antofagasta		5,808		-		-		-		-		5,808
Subtotal corporate facilities		18,041		-		-		-		-		18,041
Subtotal business offices		633		293		474		1,766		183		3,349
Total segments		1,297,830		293		474		1,766		183		1,300,546

SQM Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

180

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 27 - Other income, other expenses by function and other gains or losses

The detail of other income and other expenses is as follows:

a)     Other income by function	9/30/2010 ThUS$		9/30/2009 ThUS$
Discounts obtained from suppliers		683		798
Indemnities received		-		60
Insurance recovery		201		208
Overestimate of provision for obligation with third parties		406		620
Bad debt overestimate		53		45
Sale of mine concessions		866		2,121
Sale of materials, spare parts and supplies		580		256
Sale of property, plant and equipment		430		194
Other operating income		1,250		509
Miscellaneous services		468		594
Indemnities at Minera Esperanza		680		-
Total		5,617		5,405

b)     Other expenses by function	9/30/2010 ThUS$			9/30/2009 ThUS$
Bad debt impairment		(1,045	)		(5,328	)
V.A.T. and other non-recoverable taxes		(410	)		(477	)
Fines paid		(252	)		(110	)
Expenses related to investment plan		(9,437	)		(4,578	)
Grants not accepted as credit		(1,576	)		(841	)
Adjustment to realization value on property, plant and equipment		(1,000	)		(2,404	)
property, plant and equipment impairment		-			(1,001	)
Losses in auctions		(500	)		(2,000	)
Other operating expenses		(2,035	)		(2,197	)
Total		(16,255	)		(18,936	)

c)     Other gains or losses	9/30/2010 ThUS$			9/30/2009 ThUS$
Provision for retirement program		(100	)		-
Accrual for temporary closure of operations at El Toco		(6,900	)		-
Prior year equity value adjustment		1,132			(23	)
Costs of dismissal process		-			(1,655	)
Other		(2	)		26
Total		(5,870	)		(1,652	)

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

 

181

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 28 - Income and deferred taxes

As of September 30, 2010, December 31, 2009 and January 1, 2009, current income taxes recoverable are detailed as follows:

28.1 Current tax receivables:

	9/30/2010			12/31/2009			1/1/2009
	ThUS$			ThUS$			ThUS$
Monthly tax provisional payments, Chilean companies		54,626			71,720			54,787
Monthly tax provisional payments, foreign companies		903			1,606			1,126
Royalty monthly tax provisional payments		16,395			9,149			1,107
First category tax credits		732			1,085			1,044
First category tax absorbed by tax losses		9,486			8,563			77
Transfer from and to income tax		(55,515	)		(50,298	)		(56,446	)
Total		26,627			41,825			1,695

28.2 Current tax payables:

Taxes payable	9/30/2010			12/31/2009			1/1/2009
	ThUS$			ThUS$			ThUS$
First category tax		45,457			42,082			124,626
Royalty		18,191			8,539			20,148
Foreign company income tax		250			592			762
Article 21 unique tax		3			383			52
Transfer from and to income tax		(55,515	)		(50,298	)		(56,446	)
Total		8,386			1,298			89,142

28.3 Retained taxable earnings registry

As of September 30, 2010, December 31, 2009 and January 1, 2009, the Company and its subsidiaries have recorded the following consolidated balances for retained taxable earnings registry, income which do not constitute revenue subject to income tax, accumulated tax losses and credit for shareholders:

	9/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Tax earnings with credit		744,846		668,670		813,716
Tax earnings with no credit		78,204		107,832		132,773
Tax losses		19,930		99,333		16,949
Credit for shareholders		152,473		136,874		166,554

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

182

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010
 

Note 28 - Income and deferred taxes, continued

28.4 Income and deferred taxes

Assets and liabilities recognized in the Statement of Financial Position are offset when and only if:

1 The Company has legally recognized before the tax authority the right 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 of tax subject; or

(ii) different entities or subjects to tax effects who intend either to settle current fiscal assets and liabilities for their net amount, either 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.

Deferred income tax assets recognized are those income taxes to be recovered in future periods, related to:

(a) deductible temporary differences;

(b) the offset of losses obtained in prior periods, which have not yet been 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 fiscal income from subsequent periods, losses or credits fiscal amounts not yet used but solely as long as it is possible that there will be tax earnings in the future to charge to these losses or unused fiscal credits against them.

Deferred tax liabilities recognized refer to the amounts of income taxes payable in future periods related to taxable temporary differences.

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

183

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010
 

Note 28 - Income and deferred taxes, continued

No deferred income taxes have been recognized between the tax and carrying value of investments in related companies, in accordance with the criteria indicated in IAS 12. Therefore, there is no recognition of deferred taxes for translation adjustments and adjustments of associated companies recorded directly in net equity, shown in the Statement of Other Comprehensive Income.

d.1         Income tax assets and liabilities as of September 30, 2010 are detailed as follows:

	Assets		Liabilities
Description of deferred income tax assets and liabilities	ThUS$		ThUS$
Depreciation		-		81,499
Bad debt impairment		31		(4,190	)
Vacation provision		11		(2,113	)
Production expenses		-		41,163
Unrealized gains (losses) from sales of products		-		(43,357	)
Bonds fair value		-		(2,601	)
Staff severance indemnities		-		3,030
Hedging		-		13,011
Inventory of products, spare parts and supplies		-		(12,831	)
Research and development expenses		-		4,983
Tax losses		454		(1,885	)
Capitalized interest		-		14,032
Expenses in assumption of bank loans		-		1,706
Unaccrued interest		-		(447	)
Fair value of property, plant and equipment		-		(9,556	)
Employee benefits		-		(7,524	)
Royalty deferred income taxes		-		9,322
Other		132		(4,685	)
Balances to date		628		79,557

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

184

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 28 - Income and deferred taxes, continued

d.2         Income tax assets and liabilities as of December 31, 2009 are detailed as follows:

	Assets			Liabilities
Description of deferred income tax assets and liabilities	ThUS$			ThUS$
Depreciation		-			81,055
Bad debt impairment		-			(3,708	)
Vacation provision		-			(2,309	)
Production expenses		-			39,660
Unrealized gains (losses) from sales of products		-			(48,644	)
Bonds fair value		-			(1,635	)
Staff severance indemnities		-			2,593
Hedging		-			10,948
Inventory of products, spare parts and supplies		-			(14,229	)
Research and development expenses		-			5,263
Tax losses		1,733			(16,473	)
Capitalized interest		-			11,222
Expenses in assumption of bank loans		-			2,015
Unaccrued interest		-			(393	)
Fair value of property, plant and equipment		-			(10,524	)
Employee benefits		-			(6,180	)
Royalty deferred income taxes		-			7,677
Other		(863	)		(2,536	)
Balances to date		870			53,802

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

185

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 28 - Income and deferred taxes, continued

d.3 Income tax assets and liabilities as of January 1, 2009 are detailed as follows:

	Assets			Liabilities
Description of deferred income tax assets and liabilities	ThUS$			ThUS$
Depreciation		-			72,192
Bad debt impairment		-			(1,926	)
Vacation provision		-			(1,734	)
Production expenses		-			29,774
Unrealized gains (losses) from sales of products		-			(55,827	)
Bonds fair value		-			(1,616	)
Staff severance indemnities		-			1,777
Hedging		-			(629	)
Inventory of products, spare parts and supplies		-			(13,613	)
Research and development expenses		-			4,702
Tax losses		2,828			(1,534	)
Capitalized interest		-			9,252
Expenses in assumption of bank loans		-			826
Unaccrued interest		-			(504	)
Fair value of property, plant and equipment		-			(12,287	)
Employee benefits		-			(2,915	)
Royalty deferred income taxes		-			5,544
Other		(859	)		(4,294	)
Balances to date		1,969			27,188

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

186

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 28 - Income and deferred taxes, continued

d.4 Deferred income taxes related to benefits for tax losses

The Company’s tax loss carryforwards were mainly generated by losses in Chile, which, in accordance with current Chilean tax regulations have no expiration date.  During 2009, the Company applied no significant lax losses.

As of September 30, 2010, December 31, 2009 and January 1, 2009, tax loss carryforwards were detailed as follows:

	9/30/2010		12/31/2009		1/1/2009
	ThUS$		ThUS$		ThUS$
Chile		1,597		16,473		1,534
Other countries		742		1,733		2,828
Balances to date		2,339		18,206		4,362

d.5 Unrecognized deferred income tax assets and liabilities

As of September 30, 2010, December 31, 2009 and January 1, 2009, unrecognized assets and liabilities are detailed as follows:

	9/30/2010			12/31/2009			1/1/2009
	ThUS$			ThUS$			ThUS$
	Assets (liabilities)			Assets (liabilities)			Assets (liabilities)
Tax losses		489			489			1,544
Bad debt impairment		98			98			98
Inventory impairment		1,176			1,176			748
Pensions plan		648			648			1,091
Vacation provision		29			29			29
Depreciation		(44	)		(44	)		(20	)
Other		(15	)		(15	)		(12	)
Balances to date		2,381			2,381			3,478

Tax losses mainly relate to the United States, which prescribe in 20 years.

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

187

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 28 - Income and deferred taxes, continued

d.6 Movements in deferred tax liabilities

Movements in deferred tax liabilities as of September 30, 2010 and December 31, 2009 are as follows:

	9/30/2010			12/31/2009
	ThUS$			ThUS$
	Liabilities (assets)			Liabilities (assets)
Beginning balance of deferred income tax liabilities		53,802			27,188
Increase (decrease) in deferred income taxes in profit or loss		26,721			26,633
Increase (decrease) in deferred income taxes in equity		(966	)		(19	)
Balances to date		79,557			53,802

d.7 Disclosures on profit or loss tax expense (profit)

The Company recognizes current and deferred income taxes as income or expenses and are included in profit or loss, except if they arise from:

(a) a transaction or event which is 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

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

188

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 28 - Income and deferred taxes, continued

Current and deferred income tax expenses (income) are detailed as follows

	9/30/2010			9/30/2009
	ThUS$			ThUS$
	Income (expenses)			Income (expenses)
Expense for current income tax
Expense for current income taxes		(59,522	)		(63,647	)
Adjustments to prior period current income tax		2,552			(4,413	)
Total expense for current income tax, net		(56,970	)		(68,060	)
Expense for deferred income taxes
Deferred tax expense (income) related to the creation and reversal of temporary differences		(27,389	)		7,862
Total expense for deferred income taxes, net		-			-
Expense (income) for income taxes		(84,359	)		(60,198	)

Expenses (income) for income taxes for foreign and domestic parties are as follows:

	9/30/2010			9/30/2009
	ThUS$			ThUS$
	Profit (losses)			Profit (losses)
Current income tax expense by domestic and foreign parties, net
Current income tax expense, foreign parties, net		(1,319	)		(747	)
Current income tax expense, domestic, net		(55,651	)		(67,313	)
Total current income tax expense, net		(56,970	)		(68,060	)
Deferred income taxes by foreign and domestic parties, net
Deferred income tax expense, foreign parties, net		(1,098	)		389
Deferred income tax expense, domestic, net		(26,291	)		7,473
Total deferred income tax expense, net		(27,389	)		7,862
Expense (income) for income taxes		(84,359	)		(60,198	)

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

189

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 28 - Income and deferred taxes, continued

d.8 Participation in taxation attributable to investments recognized according to the equity method:

The Company does not recognize any deferred income 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 company, investor or interest holder is able to control the time for reversal of the temporary difference; and

(b) it is possible 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 participations in joint ventures because it is not possible that the following requirements are met:

(a) temporary differences are reversed in a foreseeable future; and

(b) the Company has tax earnings against which temporary differences can be used.

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

190

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 28 - Income and deferred taxes, continued

d.9 Information to be disclosed on the tax effects of other comprehensive income components:

	9/30/2010
	ThUS$
Income tax related to components of other income and expense with a charge or credit to net equity	Amount  before taxes			Expense  (income) for  income  taxes		Amount  after taxes
Cash flow hedges		(5,683	)		966		4,718
Total		(5,683	)		966		4,718

	9/30/2010
	ThUS$
Income tax related to components of other income and expense with a charge or credit to net equity	Amount before taxes		Expense  (income) for  income  taxes			Amount  after taxes
Cash flow hedges		12,872		(2,188	)		10,684
Total		12,872		(2,188	)		10,684

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

191

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 28 - Income and deferred taxes, continued

d.10 Explanation of the relationship between expense (income) for taxes and accounting income

In accordance with paragraph No. 81, letter c) of IAS 12, the Company has estimated that the method which 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 rate in force in Chile.  This option is based on the fact that the Parent Company 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.)

Reconciliation of numbers in income tax expenses (income) and the result of multiplying financial gain by the rate prevailing in Chile.

	9/30/2010			9/30/2009
	ThUS$			ThUS$
	Profit (loss)			Profit (loss)
Consolidated income before taxes		363,800			319,014
Income tax rate in force in Chile		17	%		17	%
Tax expense using the legal rate		(61,846	)		(54,232	)
Tax effect of rates in other jurisdictions		(776	)		3,912
Tax effect of not deductible (rejected) expenses		-			-
Other increases (decreases) in charge for legal taxes		(21,737	)		(9,878	)
Tax expense using the effective rate		(84,359	)		(60,198	)

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

192

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 28 - Income and deferred taxes, continued

d.11 Tax periods potentially subject to verification:

The Group companies are potentially subject to tax audits for income taxes by tax authorities in each country.  These audits are limited to a number of annual 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 which are potentially subject to verification, in accordance with tax regulations in force in the country of origin:

a) Chile

In Chile, the tax authority may review tax returns of up to 3 years old from the expiration date of the legal term in which the payment should have been made.  In the event that there is an administrative or legal notice, the review can be extended to a period of 6 years.

b) United States

In the United States the tax authority may review tax returns of up to 3 years old from the expiration date of the tax return. In the event of detecting an omission or error in the tax return of revenue or cost of sales, the review can be extended up to a period of 6 years.

c) Mexico:

In Mexico, the tax authority can review tax returns up to 5 years old from the expiration date of the tax return.

d) Spain:

In Spain, the tax authority can review tax returns up to 4 years old from the expiration date of the tax return.

e) Belgium:

In Belgium, the tax authority may review tax returns of up to 3 years old, 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 up to a period of 5 years.

f) South Africa:

In South Africa, the tax authority may review tax returns of up to 3 years old, from the expiration date of the tax return. In the event of detecting an omission or error in the tax return, the review can be extended up to a period of 5 years.

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

193

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 29 - Disclosures on the effects of variations in foreign currency exchange rates

Assets in foreign currency impacted for variations in exchange rates are as follows:

Class of assets	Currency	9/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Current assets:
Cash and cash equivalents	CLP		439,025		216,081		99
Cash and cash equivalents	CLF		-		43,599		-
Cash and cash equivalents	EUR		1,493		3,813		7,676
Cash and cash equivalents	ZAR		7,199		2,586		2,574
Cash and cash equivalents	AED		-		-		176
Cash and cash equivalents	BRL		43		33		4
Cash and cash equivalents	YEN		1,090		823		1,096
Cash and cash equivalents	CNY		113		-		-
Cash and cash equivalents	PEN		159		26		175
Cash and cash equivalents	ARS		13		1		3
Cash and cash equivalents	IDR		-		5		4
Cash and cash equivalents	INR		9		-		-
Cash and cash equivalents	GBP		5		2		6
Cash and cash equivalents	MXN		99		218		809
Subtotal cash and cash equivalents			449,248		267,187		12,622
Other current financial assets	CLP		-		15,043		-
Subtotal other current financial assets			-		15,043		-
Other current non- financial assets	CLP		14,460		24,442		24,607
Other current non- financial assets	CLF		-		758		294
Other current non- financial assets	EUR		2,835		2,656		10,197
Other current non- financial assets	ZAR		201		17		135
Other current non- financial assets	ARS		42		-		-
Other current non- financial assets	AED		-		-		135
Other current non- financial assets	BRL		3		3		9
Other current non- financial assets	YEN		14		-		-
Other current non- financial assets	CNY		15		-		-
Other current non- financial assets	PEN		259		-		-
Other current non- financial assets	MXN		141		442		338
Subtotal other current non-financial assets			17,970		28,318		35,715
Trade and other receivables	CLP		143,713		103,877		100,825
Trade and other receivables	CLF		959		1,735		1,512
Trade and other receivables	EUR		102,628		62,934		43,096
Trade and other receivables	ZAR		20,593		30,977		8,524
Trade and other receivables	AED		-		-		236
Trade and other receivables	BRL		1,175		20		2
Trade and other receivables	ARS		193		-		-
Trade and other receivables	YEN		2		-		-
Trade and other receivables	CNY		53		-		-
Trade and other receivables	PEN		6		-		-
Trade and other receivables	GBP		285		-		-
Trade and other receivables	MXN		251		7		119
Subtotal trade and other receivables			269,858		199,550		154,314
Trade receivables due from related parties	CLP		248		299		150
Trade receivables due from related parties	EUR		3,043		1,935		3,637
Trade receivables due from related parties	AED		-		-		39
Subtotal trade receivables due from related parties			3,291		2,234		3,826
Current tax assets	CLP		8,586		7,954		-
Current tax assets	EUR		267		208		232
Current tax assets	ZAR		2		2		195
Current tax assets	YEN		-		32		721
Current tax assets	PEN		318		-		-
Current tax assets	MXN		52		469		-
Subtotal current tax assets			9,225		8,665		1,148
Total current assets			749,592		520,997		207,625

  SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

    

194

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 29 - Disclosures on the effects of variations in foreign currency exchange rates

Class of assets	Currency	9/30/2010 ThUS$		12/31/2009 ThUS$		1/1/2009 ThUS$
Non-current assets:
Other non-current financial assets	CLP		22		20		-
Other non-current financial assets	EUR		3		10		10
Other non-current financial assets	BRL		30		28		19
Other non-current financial assets	YEN		57		52		51
Subtotal other non-current financial assets			112		110		80
Other non-current non-financial assets	CLP		582		2,757		353
Other non-current non-financial assets	CLF		-		5,939		2,449
Other non-current non-financial assets	BRL		223		245		160
Other non-current non-financial assets	YEN		326		297		256
Subtotal other non-current non-financial assets			1,131		9,238		3,218
Non- current rights receivable	CLP		529		883		327
Non- current rights receivable	CLF		634		787		439
Subtotal non- current rights receivable			1,163		1,670		766
Investments recognized using the equity method of accounting	CLP		1,065		328		473
Investments recognized using the equity method of accounting	EUR		10,386		12,121		12,483
Investments recognized using the equity method of accounting	AED		23,925		22,575		5,277
Investments recognized using the equity method of accounting	INR		421		-		-
Investments recognized using the equity method of accounting	TRY		11,902		-		-
Investments recognized using the equity method of accounting	EGP		1,541		-		-
Investments recognized using the equity method of accounting	THB		1,357		-		-
Subtotal investments recognized using the equity method of accounting			50,597		35,024		18,233
Goodwill	CLP		735		-		-
Subtotal goodwill			735		-		-
Property, plant and equipment	CLP		1,291		577		290
Subtotal property, plant and equipment			1,291		577		290
Total non-current assets			55,029		46,619		22,587
Total assets			804,621		567,616		230,212

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

195

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 29 - Disclosures on the effects of variations in foreign currency exchange rates, continued

Liabilities in foreign currency impacted by variations in exchange rates are as follows:

		9/30/2010						12/31/2009
Class of liability	Currency	Up to 90 days ThUS$		More than 90  days to 1  year ThUS$		Total ThUS$		Up to 90 days ThUS$		More than 90  days to 1  year ThUS$		Total ThUS$
Current liabilities
Other current financial liabilities	CLF		10,070		-		10,070		3,649		6,541		10,190
Other current financial liabilities	CLP		707		-		707		30,647		1,268		31,915
Other current financial liabilities	EUR		-		-		-		-		3,327		3,327
Subtotal other current financial liabilities			10,777		-		10,777		34,296		11,136		45,432
Trade and other payables	CLP		37,953		38,992		76,945		72,888		66		72,954
Trade and other payables	CLF		83		199		282		-		-		-
Trade and other payables	EUR		32,099		1,123		33,222		65,031		-		65,031
Trade and other payables	INR		1		-		1		-		-		-
Trade and other payables	BRL		18		352		370		-		-		-
Trade and other payables	PEN		52		293		345		-		-		-
Trade and other payables	MXN		1,350		-		1,350		570		19		589
Trade and other payables	GBP		29		-		29		-		-		-
Trade and other payables	CNY		-		39		39		-		-		-
Trade and other payables	ZAR		4,459		500		4,959		3,840		-		3,840
Subtotal Trade and other payables			76,044		41,498		117,542		142,329		85		142,414
Trade payables due to related parties	EUR		-		597		597		-		23		23
Trade payables due to related parties	CLP		-		-		-		-		233		233
Subtotal trade payables due to related parties			-		597		597		-		256		256
Other short-term provisions	CLP		369		-		369		-		418		418
Other short-term provisions	EUR		7	­-			7		-		118		118
Other short-term provisions	BRL		-		1,607		1,607		-		1579		1579
Subtotal Other short-term provisions			376		1,607		1,983		-		2,115		2,115
Current tax liabilities	CLP		-		-		-		-		27		27
Current tax liabilities	EUR		-		-		-		-		422		422
Current tax liabilities	MXN		-		-		-		-		2		2
Total current tax liabilities			-		-		-		-		451		451
Current provisions for benefits to employees	MXN		-		275		275		-		-		-
Current provisions for benefits to employees	CLP		20,561		12,896		33,457		-		16,375		16,375
Subtotal Current provisions for benefits to employees			20,561		13,171		33,732		-		16,375		16,375
Other current non-financial liabilities	CLP		12,559		3,314		15,873		14,187		13,530		27,717
Other current non-financial liabilities	EUR		39		4		43		128		299		427
Other current non-financial liabilities	BRL		-		19		19		-		-		-
Other current non-financial liabilities	BRL		9		53		62		-		48		48
Other current non-financial liabilities	MXN		388		136		524		162		-		162
Other current non-financial liabilities	PEN		70		10		80		-		-		-
Other current non-financial liabilities	ZAR		-		660		660		856		-		856
Subtotal other current non-financial liabilities			13,065		4,196		17,261		15,333		13,877		29,210
Total current liabilities			120,823		61,069		181,892		191,958		44,295		236,253

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

196

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 29 - Disclosures on the effects of variations in foreign currency exchange rates, continued

		1/1/2009
Class of liability	Currency	Up to 90 days ThUS$		More than 90 days to 1 year ThUS$		Total ThUS$
Current liabilities
Other current financial liabilities	CLF		-		5,352		5,352
Other current financial liabilities	EUR		1,633		-		1,633
Subtotal other current financial liabilities			1,633		5,352		6,985
Trade and other payables	CLP		68,914		-		68,914
Trade and other payables	CFL		55		171		226
Trade and other payables	EUR		9,962		-		9,962
Trade and other payables	BRL		249		-		249
Trade and other payables	AED		169		-		169
Trade and other payables	MXN		643		-		643
Trade and other payables	ZAR		599		-		599
Subtotal trade and other payables			80,591		171		80,762
Other short-term provisions	CLP		138		-		138
Other short-term provisions	EUR		7		291		298
Other short-term provisions	BRL		-		1,295		1,295
Other short-term provisions	AED		11				11
Subtotal other short-term provisions			156		1,586		1,742
Current provisions due to benefits to employees	CLP		-		22,112		22,112
Subtotal current provisions due to benefits to employees					22,112		22,112
Other current non-financial liabilities	CLP		9,303		10,042		19,345
Other current non-financial liabilities	EUR		74		375		449
Other current non-financial liabilities	BRL		3		18		21
Other current non-financial liabilities	MXN		255		-		255
Subtotal Other current non-financial liabilities			9,635		10,435		20,070
Total current liabilities			92,015		39,656		131,671

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

197

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 29 - Disclosures on the effects of variations in foreign currency exchange rates, continued

		9/30/2010								12/31/2009
Class of liability	Currency	More than  1 up to 3  years ThUS$		More than  3 up to 5  years ThUS$		More than  5 years ThUS$		Total ThUS$		More  than 1 up  to 3 years ThUS$		More than  3 up to 5  years ThUS$		More than  5 years ThUS$		Total ThUS$
Non-current liabilities
Other non-current financial liabilities	CLF		-		63,640		279,129		342,769		6,195		68,144		251,926		326,265
Other non-current financial liabilities	CLP		-		150,964		-		150,964		-		143,956		-		143,956
Subtotal other non-current financial liabilities			-		214,604		279,129		493,733		6,195		212,100		251,926		470,221
Non-current liabilities	CLF		-		-		-		-		187		-		-		187
Non-current liabilities			-		-		-		-		-		-		-		-
Subtotal non-current liabilities			-		-		-		-		187		-		-		187
Tax liabilities	CLP		143		-		15		158		-		-		-		-
Subtotal tax liabilities			143		-		15		158		-		-		-		-
Non-current provisions for benefits to employees	CLP		-		-		1,606		1,606		-		-		28,171		28,171
Non-current provisions for benefits to employees	MXN		-		-		-		-		-		-		185		185
Non-current provisions for benefits to employees	JPY		-		-		-		-		-		-		326		326
Subtotal Non-current provisions due to benefits to employees			-		-		1,606		1,606		-		-		28,682		28,682
Total non-current liabilities			143		214,604		280,750		495,497		6,382		212,100		280,608		499,090

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

198

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 29 - Disclosures on the effects of variations in foreign currency exchange rates, continued

		1/1/2009
Class of liability	Currency	More than 1 up to 3 years ThUS$		More than 3 up to 5 years ThUS$		More than 5 years ThUS$		Total ThUS$
Non-current liabilities
Other non-current financial liabilities	CLF		5,056		5,056		75,828		85,940
Subtotal other non-current financial liabilities			5,056		5,056		75,828		85,940
Non-current liabilities	CLF		398		-		-		398
Subtotal Non-current liabilities			398		-		-		398
Tax liabilities	CLP		18		-		-		18
Subtotal tax liabilities			18		-		-		18
Non-current provisions for benefits to employees	CLP		-		-		19,489		19,489
Non-current provisions for benefits to employees	MXN		-		-		403		403
Non-current provisions for benefits to employees	JPY		-		-		294		294
Subtotal Non-current provisions due to benefits to employees			-		-		20,186		20,186
Total non-current liabilities			5,472		5,056		96,014		106,542

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

199

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 30 - Asset value impairment

Assets value impairment

The Company assesses on an annual basis any impairment on the amount of Buildings, plant and equipment, intangible assets, goodwill and investments accounted for using the equity method of accounting in accordance with IAS 36. Assets to which this method applies are as follows:

- Investments recognized using the equity method of accounting

- Property, plant and equipment

- Intangible assets

- Goodwill

a) Impairment of 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 this impairment, if any. In the event that asset does not generate any cash flows independent from other assets, the Company determines the recoverable amount of the cash generating unit to which this asset belongs according to the business segment (specialty plant nutrient, iodine and derivatives, lithium and derivatives, industrial chemicals, potassium and other products and services.)

The Company conducts impairment tests to 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 in an amount lower than its carrying value, the latter decreases to its recoverable amount.

b) Impairment of financial assets: For the case of financial assets with a trading origin, the Company has defined a policy for the recognition of provision for impairment in consideration of the age of the past due balance.

An allowance is made for impairment losses related to trade receivables when there is objective evidence that the Company will be not able to collect all the amounts owed in accordance with the original terms of receivables.

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

200

    Notes to the Interim ConsolidatedFinancial Statements as of September 30, 2010

Note 30 - Asset value impairment, continued

In accordance with the information presented and evaluating the indication of value impairment of any asset related to the cash flow generating unit, we may conclude that there is no evidence of indication which supports any impairment in the value of assets. Depending on value impairment indication, for the entity:

- There are no indications of value impairment in each of intangible assets with an indefinite useful life, as well as intangible assets which are not yet available for their use, comparing their carrying amounts to their recoverable amounts.

- There are no indications of value impairment on goodwill acquired in a business combination

Note 31 - Events occurred subsequent to the reporting date

31.1  Authorization of the financial statements

The interim consolidated financial statements of Sociedad Química y Minera S.A. and subsidiaries prepared in accordance with International Financial Reporting Standards for the period ended September 30, 2010 were approved and authorized for issuance by the Board of Directors at their meeting held on November 23, 2010.

31.2  Disclosures of events occurred subsequent to the reporting date

On November 23, 2010, the Company’s Board of Directors agreed to pay a provisional dividend of ThUS$110,000, payable beginning on December 15, 2010.

Management is not aware of any significant events occurred between September 30, 2010 and the date of issuance of these interim consolidated financial statements which may significantly affect them.

31.3  Detail of dividends declared after the reporting date

As of the closing date of these financial statements, there are no dividends declared after the reporting date.

SQM  Los Militares 4290, Las Condes, Santiago, Chile Tel: (56 2)  425 2000   www.sqm.com

201

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: January 10, 2011