25
IODINE • LITHIUM • INDUSTRIAL CHEMICALS Business Unit www.sqm.com
IODINE • LITHIUM • INDUSTRIAL CHEMICALSBusiness Unit
www.sqm.com
Index
Index 01
Company Overview 03
SQM in the World 04 - 05
Production Process 06 - 10 Caliche Ore 07 Iodine and Iodine Derivatives 08 Salar Brines 09 Lithium 10
Main Uses 11 - 19 Iodine 12 - 13 Lithium 14 - 15 Industrial Chemicals 16 - 19
Quality & Sustainable Development 20 - 23 Quality 21 Sustainable Development 22
www.sqm.com
01
02
www.sqm.com
Company OverviewSQM has grown substantially since its beginnings as a nitrate company that primarily produced and sold fertilizers. For over 40 years, SQM has expanded by broadening its business and product offering, always visionary in its growth from its inception in 1968.
One of SQM’s main goals has always been to generate value for its shareholders using a multidisciplinary strategy: to focus the company’s growth on areas where it has sustainable competitive advantages; to maintain a conservative and sound financial position; to optimize production processes in order to maximize efficiency and be a low-cost producer; and to strive to develop new products, markets and applications.
SQM is committed to maintaining and strengthening its global leadership in its key markets. Today, SQM is an integrated producer of Specialty Plant Nutrition and chemicals that enjoys important competitive advantages, that have afforded it significant growth over the past few years.
Currently, SQM has a global presence in a variety of industries through its 5 business lines: Specialty Plant Nutrition; Iodine and Derivatives; Lithium and Derivatives; Industrial Chemicals and Potassium. Presently, SQM is the world’s largest producer in the niche markets of Specialty Plant Nutrition, Iodine and Derivatives and Lithium and Derivatives.
SQM’s strong competitive position in each of its businesses is based on the following fundamentals:
• Vast natural resources, whose location, ease ofextraction and chemical composition make them unique in the world.
• Significanteconomiesof scale in itsdifferentbusinessareas, affording major cost advantages over its competitors.
• Importantsynergiesbetweenourrawmaterials:Calicheore and brines.
• Flexible production processes that complement eachother.
• Aglobalpresencethroughanextensivedistributionandsales network.
• Participationinmarketswithhighgrowthpotential.
www.sqm.com
03
Logistics and Distribution
04
The great majority of SQM’s industrial products are sold in international markets, a fact that creates constant commercial challenges for the Company. SQM has developed a distribution network with its own commercial offices and agencies in over twenty countries. Furthermore, SQM has warehouses in strategic locations on five different continents, allowing the Company to deliver its products efficiently, at the same time ensuring their quality.
COMMERCIAL OFFICES
PRODUCTION FACILITIES
JOINT VENTURES
www.sqm.com
SQM in the World
PRODUCTION SITES
Chile
•
•
• •
•
•
USA • France •
STOCKPOINTS
Chile
•
•
•
•
•
• USA
•
•
•
•
•
• Mexico
• •
•
•
• Belgium
•
•
••
•
• Japan
•
••• China
•
Korea
•
•
Australia
•
•
•
•South Africa
• •
•
•
Perú
•
•
•
Italy
• •• •
Spain
Ecuador
IODI
NE
IODIN
E DE
RIVA
TIVES
LITHIU
M C
ARBO
NAT
E
LITHIU
M H
YDRO
XIDE
INDU
STRI
AL N
ITRATE
S
OTH
ER IN
D. PRO
DUC
TS
www.sqm.com
05
Production Process
06
www.sqm.com
07
Caliche Ore
Production Process
Caliche is a mineral that contains high concentrations of sodium nitrate and iodine, found no more than two meters below the surface in layers two to three meters thick, in thedesert of the TarapacáandAntofagasta regions inthe north of Chile.
Caliche ore is blasted from extensive surface layers in which the mineral is found. Crushing and leaching processes are the starting point for the recovery of the salts contained in the ore. SQM’s caliche mining rights cover an area of more than 1.8 million hectares, which amount to more than 75% of the commercially exploitable reserves in the world.
Caliche Ore
www.sqm.com
Iodine andIodine DerivativesTheleachingofcalicheoreatthePedrodeValdivia,MaríaElena, Nueva Victoria, Iris and Pampa Blanca facilitiesgenerates the solutions that are used to produce iodine.
These solutions are rich in nitrates, and they also contain iodine in the form of iodate. Part of the iodate in the solution is reduced to iodide. The resulting iodide is combined with the rest of untreated iodate solution to release elemental iodine.
The solid iodine is concentrated, then refined, melted and prilled. SQM holds patents in Chile and in the United States for its iodine prilling process.
In the past 30 years, SQM s continuous search of opportunities and constant innovation have allowed the Company to position itself as the leading producing of iodine in the world. SQM has iodide and iodine production plants in several locations in the north of Chile, thus assuring a reliable and consistent supply.
Iquique
Nva. Victoria
Iris
Tocopilla
María Elena
Coya SurPedro de Valdivia
Pampa Blanca San Pedro de Atacama
Salar de Atacama
Salar del Carmen
Tarapacá Region
CHILE
Antofagasta Region
Antofagasta
Production Proces
Production Process
Iodine & Iodine Derivatives
www.sqm.com
08
Production Process
Salar BrinesTheSalardeAtacamaisasalt-encrustedareawithintheAtacamaDesert. Beneath the crust lies an undergrounddeposit of brines rich in potassium, lithium, sulfate and boron.
SQM holds mining rights that cover the majority of the economically viable area of the Salar.
Brines, present in liquid basins located under the surface of the salar, are extracted thanks to strategically located dumpingwells.Afterbeingextracted,theyarepumpedtoevaporation ponds, where concentrated brines and salts are obtained.
Salar Brines
www.sqm.com
09
LithiumThe production of SQM’s lithium chemicals is based on lithiumchloridesolutionsobtainedintheSalardeAtacamaas a co-product of the production of potassium chloride. These solutions are extracted, refined and then converted into lithiumcarbonate inaplant located inAntofagasta.Lithium carbonate has many industrial direct applications and is also raw material for the production of lithium hydroxide and other downstream lithium chemicals.
In order to satisfy the growing demand for lithium chemicals, SQM has been increasing the production capacity of lithium carbonate since the beginning of its lithium operations in 1997. Following this same path, a plant for production of lithium hydroxide monohydrate began producing in 2005, next to the Company’s existing lithium carbonate plant.
Production Process
Production Process
Lithium
www.sqm.com
10
Main Uses
www.sqm.com
11
The largest economically exploitable reserves of Caliche Ore are in northern Chile, and SQM holds the larger part of them. SQM has the world’s largest iodine production capacity. It is co-produced with Nitrates, which gives SQM flexibility to accommodate the output according to market needs.
Iodine
IODINE ACS/USP/EPIodine is used in a wide range of medical, agricultural and industrial applications, either as such or in the form of Iodine derivatives. SQM’s iodine meets International specifications ACS, USP and EP. MainIodine applications are X-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical, herbicides and chemical intermediates.
IODINE DERIVATIVESIodine derivatives are used in a wide range of medical and industrial applications as well as in human and animal nutrition. Potassium Iodide is used in polarizing films for liquid crystal displays (LCD/LED), sodium Iodide has applications as reagent and pharmaceutical intermediates. Iodine is added in the form of potassium iodate or potassium iodide to edible salt to prevent iodine deficiency disorders. Calcium iodate is used as nutritional supplement in animal feed.
AJAY SQM GROUPSQM is present in the Iodine derivatives market through a Joint venture with the US’ company Ajay Chemicals, named Ajay-SQM Group (www.ajay-sqm.com). This venture has facilities in Chile, the United States and Europe, and has become a leader producer of inorganic and organic iodine derivatives in the world.
Main Uses of iodine
• X- ray contrast media• Pharmaceuticals• LCD/LED polarizing films• Iodophors
• Biocides• Fluor-chemicals• Nylon• Herbicides
www.sqm.com
12
Iodine is extensively used in the pharmaceutical industry, as a raw material for x-ray contrast media and antiseptics, as well as a catalyst or reagent in the synthesis of several active pharmaceutical ingredients such as antibiotics, corticosteroids and cardiovascular drugs.
X-ray contrast mediaIodine is important in human nutrition, as the body needs to have a certain quantity of iodine to avoid conditions such as goiters, thyroid malfunctioning and potential mental retardation and abnormal growth in developing fetuses. Salt is iodized practically all over the word, in attempt to prevent these conditions.
Human Nutrition
Liquid crystal displays utilize two sheets of polarizing material with a liquid crystal solution between them. Iodine is a key component in these polarizing films.
LCD/LED polarizing filmsIodine-based biocides are used in industrial applications such as paints, adhesives, wood treatment and metalworking fluids.
Biocides
Main Uses
www.sqm.com
13
LithiumAstheworld’slargestLithium chemicals producer, SQM is committed to the development and sustainability of the Lithium industry. Our commitment extends beyond the delivery of high-quality products in a timely manner and includes significant investments to secure product availability.
QLithium Carbonate Crystallized
Lithium possesses certain characteristics that enable it to be used in a wide variety of applications. For example, it has elevated electrochemical potential and is the lightest solid element at room temperature. These properties give Lithium significant advantages for its use in batteries. Another characteristic of Lithium is its high caloric capacity, which makes it advantageous in applications that involve heat transfer.
LITHIUM CARBONATE
Lithium carbonate is used in a variety of applications, including cathode materials for rechargeable batteries, frits for ceramic glazing and enameling, heat-resistant glass (ceramic glass), primary aluminum, air conditioning chemicals, continuous casting powder for steel extrusion, and production of downstream lithium derivatives.
SQM produces Lithium carbonate in different grades according to its customers’ needs:
• QLithium Carbonate Crystallized • QLithium Carbonate Granulated • QLithium Carbonate Powder • QLithium Carbonate Battery Grade • QLithium Carbonate
• Crystallized
• QLubelith™ Industrial
LITHIUM HYDROXIDE
Lithium hydroxide is used predominantly in the production of high performance lubricating grease that can be applied in extreme temperature and load conditions. Lithium hydroxide is also used in production of cathode materials for rechargeable batteries, industrial dyes and specialty Lithium chemicals.
• QLubelith™ Industrial • QLubelith™ Industrial Wet grade • QLubelith™ Technical • QLubelith™ Technical Oil coated
www.sqm.com
14
Lithium hydroxide is the most widely used thickening agent in multipurpose greases for automotive and industrial lubrications.
Lubricant greases
Because of its energy density and lack of “memory effect”, Lithium-ion and lithium polymer rechargeable batteries are the most efficient power source for mobile telephones, laptops and other electronic portable devices. The batteriesfornewmodelsofelectricvehicles(EV,HEV)arealso based on lithium compounds.
Batteries Lithium carbonate is a key component in the formulation of the ceramic glass used in flat-top cooking ranges, reducing the thermal expansion coefficient of the glass and thus making it resistant to high temperatures.
Ceramic glass
Main Uses of LiTHiUM
• Batteries• Ceramic glass• Lubricant greases• Air conditioning
• Ceramic enamels and glazes• Cement and adhesives• Aluminum• Dyes
Main Uses
www.sqm.com
15
Industrial ChemicalsSQM entered the industrial chemical business over 30 years ago, producing and selling industrial nitrates, which are used as raw materials in a great number of production processes. SQM also sells boric acid and industrial-grade potassium chloride.
The high-grade nitrates are used in a wide variety of applications that are a part of everyday life. From manufacturing glass to explosives for mining and civil works to treating metals, this broad range of applications, combined with a customer base that is spread all over the globe, affords SQM considerable diversification in its sales.
SODIUM NITRATEThe properties of sodium nitrate enable it to be used in a great variety of applications, including the production of glass, ceramics, explosives and various Chemicalsprocesses and metal treatments. SQM produces four grades of sodium nitrate for industrial applications: standard, industrial, technical and refined grades. • QSodium Nitrate Standard • QSodium Nitrate Industrial • QSodium Nitrate Technical • QSodium Nitrate Refined
POTASSIUM NITRATESQM produces Potassium Nitrate to be used also in a variety of applications, including strengthen and specialty of glasses, frits, metal treatment and other chemical processes. It comes in two physical forms, crystallized and prilled which comes in four grades of purity. The grades of industrial potassium nitrate are: • QPotassium Nitrate Standard • QPotassium Nitrate Industrial • QPotassium Nitrate Technical • QPotassium Nitrate Refined
BORIC ACIDIn addition to industrial nitrates, SQM produces boric acid as a by-product of the production of potassium sulfate.Boric acid is mainly used in the glass, ceramics, LCD and fiberglass industries. • QBoricAcid
POTASSIUM CHLORIDESQM obtains KCl from the Salar Brines in the Salar de Atacama. Potassium chloride is widely used in the oildrilling industry and also in metal treatment processes. • MOP-StandardGrade
MAGNESIUM CHLORIDESQMalsoobtainsMgCl2•6H2O from the Salar Brines. This product is used in unpaved roads as a stabilizer and dust suppressant due to its capacities of attracting water and agglomerating fine soil particles.
www.sqm.com
16
Main uses of Sodium Nitrate • Explosives • Glass • Ceramic enamels and glazes • Charcoal briquettes • Adhesives • Storage of thermal energy
Main uses of Potassium Nitrate • Glass • Ceramic enamels and glazes • CRTforTVandcomputerscreens • Metaltreatment • Pyrotechnics • Drilling fluids • Storage of thermal energy
Main uses of Boric Acid • Fiberglass • Ceramic enamels and glazes • Liquid crystal displays (LCD) • Flame retardant in cellulose insulation • Borosilicate glass
Main uses of Potassium Chloride • Oil drilling fluids • Metaltreatment
Main uses of Magnesium Chloride • Dust control • Road stabilizer • De-icing
Main Uses
www.sqm.com
17
Black powder containing potassium nitrate is used to launch pyrotechnics skyward.
PyrotechnicsBoric acid is used in the fabrication of liquid crystal displays.
LCD/LED
Due to their oxidizing and fluxing properties, sodium and potassium nitrates are used in the production of frits, which are applied as glazes on ceramic and metal bodies.
Ceramic glazesPotassium chloride is widely used in oil drilling.
Drilling fluids
www.sqm.com
18
Sodium nitrate is used as a refining agent in tableware and high quality types of glass.
Potassium nitrate is used to strengthen the properties of the glass, making it more resistant.
High quality glassSodium and Potassium Nitrate are used to store thermal energy in Concentrated Solar Power Plants.
Solar energy
Main Uses
www.sqm.com
19
Quality & sustainable development
www.sqm.com
20
Quality One of SQM’s principal commitments is customer satisfaction, which the Company achieves by providing quality products that comply with agreed-upon standards and are delivered on a timely basis.
The production and commercialization of iodine, lithium carbonate, lithium hydroxide and technical/refined grades of sodium and potassium nitrate are certified under ISO 9001:2000.
The Company produces and sells its products under its Quality Management System, which entails making acontinuous effort to improve its production, sales and distribution processes in order to obtain the highest possible standards of productivity and efficiency throughout the logistics chain.
Selling quality products is a corporate commitment that is constantly reinforced among all of SQM’s employees and business partners, who understand the importance of building trusting, long-lasting relationships with customers, thus ensuring the Company’s growth.
www.sqm.com
21
Sustainable DevelopmentSQM’s long-term strategy is inherently linked to the need for sustainability in the Company’s operations. To formalize its commitment with the environment, its employees, its neighboring communities and its customers, SQM has a Sustainable Development Policy.
Quality & Sustainable Development
In keeping with its Sustainable Development Policy, SQM has implemented an environmental management system, which allows the Company to identify and control environmental factors related to its production processes in order to protect its employees, surrounding communities, natural resources, and in general, the ecosystems in the areas in which it operates.
The health and safety of its employees is another central concern for SQM. To address this concern, the Company has implemented a Risk Prevention System, through which it aspires to instill a culture of prevention and personal care in all its employees and contractors.
www.sqm.com
22
www.sqm.com
23
www.sqm.com
Phone: +56 (2) 425-2428E-mail: [email protected]
SQM HQ
Phone: +27 (11) 516-4212E-mail: [email protected]
SQM Africa
Phone: +81 (3) E-mail: [email protected]
SQM Japan
Phone: +86 (10) 6461-5627E-mail: [email protected]
SQM Europe (China)
Phone: +32 (3) 203-9700E-mail: [email protected]
SQM Europe (Belgium)
Phone: +39 (55) 644-418E-mail: [email protected]
SQM Europe (Italy)
Phone: +34 (93) 215-1271E-mail: [email protected]
SQM Iberian (Spain)
Phone: +49 (208) 941-6837E-mail: [email protected]
SQM Deutschland
Phone: +52 (33) 3540-1100E-mail: [email protected]
SQM Mexico
Phone: +1(770 ) 916-9416E-mail: [email protected]
SQM North America
5778-3311
