CHEMICAL & MINING CO OF CHILE INC | CIK:0000909037 |

Note 12 Joint Ventures

 

 

The method for recognizing joint ventures is that in which participation is initially recorded at cost, and subsequently adjusted, considering changes after the acquisition in the portion of the entity’s net assets that correspond to the investor. Profit or loss for the period will include the portion of the entity’s entire profit or loss that correspond to the investor. For these joint ventures there is no quoted market price to measure these investments.

 

There are no significant restrictions on these joint ventures for the transfer of funds as payment of dividends or others.

 

At the date of issuance of these financial statements, SQM is not aware of the existence of any significant contingent liabilities associated with the partnerships in joint ventures.

 

 

a)       Operations conducted in 2017

 

On June 30, 2017, SQM Potasio S.A. recognized the goodwill by the acquisition of % of the joint venture Minera Exar S.A. in the amount ThUS$.

 

On October 6, 2017, a capital contribution of ThUS$ (ThARS) was made in mining company EXAR S.A., which is % owned by the subsidiary SQM Potasio S.A. The functional currency of EXAR S.A. is the Argentine peso (ARS). This contribution had no impact on the Company's consolidated results.

 

b)       Operations conducted in 2016

 

On March 28, 2016, Sociedad Química y Minera de Chile S.A. agreed to enter into a joint venture with Lithium Americas Corp to develop the Cauchari-Olaroz lithium project in Argentina.

 

SQM Potasio S.A. made a capital contribution of ThUS$ in exchange for % of the ownership of Minera Exar S.A.

 

During May 2016, SQM Vitas Holland B.V. sold its interest in SQM Vitas Spain, to SQM Iberian S.A. This resulted in the latter entity gaining % interest in this transaction, generating a loss of ThUS$.

 

 

 

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

 

 

 

Joint Venture		Share on other comprehensive income of associates and joint ventures accounted for using the equity method, net of tax									Share on total other comprehensive income of associates and joint ventures accounted for using the equity method
		12/31/2017			12/31/2016			12/31/2015			12/31/2017			12/31/2016			12/31/2015
		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Sichuan SQM Migao Chemical Fertilizers Co. Ltd.			-			-			(12)			(535)			(1,372)			(857)
Coromandel SQM India			-			-			-			165			435			88
SQM Vitas Fzco,			(5)			449			9,686			1,497			3,907			10,055
SQM Star Qingdao Corp. Nutrition Co. Ltd.			-			-			-			361			163			495
SQM Vitas Holland			-			-			-			(18)			171			(11)
Minera Exar S.A.			-									(27)			-
Total			(5)			449			9,674			1,443			3,304			9,770

Joint Venture		Equity-accounted investees									Share in profit (loss) of associates and joint ventures accounted for using the equity method
		12/31/2017				12/31/2016			12/31/2015			12/31/2017		12/31/2016			12/31/2015
		ThUS$				ThUS$			ThUS$			ThUS$		ThUS$			ThUS$
SQM Vitas Brazil Agroindustria(1)			11,003			9,343			3,722			1,753			4,570			(72)
SQM Vitas Peru S.A.C (1)			5,961			5,964			5,061			(216)			815			786
SQM Vitas Plantacote B.V. (2)			669			588			3,598			(1)			187			215
SQM Vitas Spain (2)			-			-			1,182			-			-			(251)
Total			17,633			15,895			13,563			1,536			5,572			678

Joint Venture		Share in other comprehensive income of associates and joint ventures accounted for using the equity method, net of tax									Share in total other comprehensive income of associates and joint ventures accounted for using the equity method
		12/31/2017			12/31/2016				12/31/2015		12/31/2017			12/31/2016			12/31/2015
		ThUS$			ThUS$				ThUS$		ThUS$			ThUS$			ThUS$
SQM Vitas Brazil Agroindustria(1)			(51)			2,845			-			826			5,130			(36)
SQM Vitas Peru S.A.C (1)			-			-			-			(108)			408			393
SQM Vitas Plantacote B.V. (2)			-			-			-			(1)			(80)			(125)
SQM Vitas Spain (2)			-			-			-			-			-			109
Total			(51)			2,845			-			717			5,458			341

 

 

 

 

 

The basis of preparation of the financial information of joint ventures corresponds to the amounts included in the financial statements in conformity with the entity’s IFRS.