CORFO Steps Up Fight to Terminate SQM Atacama Leases

Sociedad Química y Minera de Chile (NYSE:SQM) noted that CORFO has said it will request an additional arbitration proceeding related to its aim to terminate the Salar de Atacama project agreement with SQM. The company suggested that this seemed to be an addition to existing proceedings.
As quoted in the press release:

The objective of this new arbitration lawsuit seems to be to correct an omission on CORFO’s part. The new lawsuit seems to be based on arguments similar to those set forth in the existing arbitration proceeding.
SQM reiterates its position that it completely disagrees with CORFO’s claims calling for the early termination of the “Salar de Atacama Project Agreement”—just as it did when CORFO called for early termination of the “Lease Agreement”—and it rejects all of the arguments that have been set forth for such purpose. SQM and its subsidiaries have fully complied with all of the obligations established in these Contracts and mutually agreed upon with CORFO in a timely manner for over 20 years. In addition, SQM S.A. and its subsidiaries have acted in good faith in fulfilling their contractual obligations, and none of their actions have ever put the continuity of the mining and industrial activities of SQM in the Salar de Atacama at risk.
In addition, SQM emphasizes that CORFO itself has been the party to these Contracts that has been systematically carrying out a series of actions in violation of specific and substantive obligations that CORFO assumed in such Contracts.

Click here for the full press release.