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Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is denying accusations that it is illegally exporting brines from Chile. The allegations were made public by a group of employees at SQM’s lithium carbonate plant in the country.
Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is denying accusations that it is illegally exporting brines from Chile. The allegations were made public by a group of employees at SQM’s lithium carbonate plant in the country.
As quoted in the press release:
It has been stated that SQM is exporting unauthorized products, referring to brines. This is not true and it is documented in the on-going approvals given by the Chilean Commission of Nuclear Energy (CCHEN) for every sale of SQM lithium, including lithium brine. These sales are informed to every appropriate regulatory authority, and all have the appropriate authorizations. Additionally, specifically related to this product, there has always been a fluent and detailed communication with the CCHEN via letters so it can properly account for the exported lithium. Since SQM began selling lithium brine in 2004, every payment has been submitted to CORFO with an appropriate invoice and accepted by them.
We deny any damage and especially any tax fraud relating to the sales of this product at supposedly lower than the market prices. SQM makes all its sales at market prices. In the case of the different lithium products, SQM has consistently exported at higher prices than its competition. This has resulted in higher rent payments to CORFO and higher tax payments. If the public export statistics of lithium chloride solutions from Chile are reviewed, it can be seen that the export price per ton (with an approximate lithium concentration of 6.0%) has never been of 1 US dollar – as it has been said –, but instead it reaches brutally higher orders of magnitude: between 800 and 900 times that number. This information is public in the Chilean customs statistics.