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SQM (NYSE:SQM) put out a letter regarding its lease agreement with Corfo in the Salar de Atacama. The company noted that while both parties are in an arbitration regarding differences in the application of the agreement, SWM currently maintains its contract with Corfo.
SQM (NYSE:SQM) put out a letter regarding its lease agreement with Corfo in the Salar de Atacama. The company noted that while both parties are in an arbitration regarding differences in the application of the agreement, SWM currently maintains its contract with Corfo.
As quoted in the press release:
SQM and its subsidiaries maintain a contract in force with Corfo with respect to the exploitation of mining property in the Salar de Atacama (the “Lease Agreement”).
As previously informed, SQM and Corfo are involved in an arbitration proceeding relating to certain differences in the application of the Lease Agreement. Corfo’s claims include the payment by SQM of differences in past rental payments and the early termination of the Lease Agreement. Currently the arbitration proceeding is in the conciliation stage before the Arbitrator, and SQM has not been informed of any decision by Corfo to not continue in this stage. If this were to occur, the arbitration proceeding would continue its normal course, in accordance with the established procedure for arbitration proceedings.
During 2014, revenues from products originating in the Salar de Atacama accounted for approximately 39% of SQM’s consolidated revenues.
SQM maintains its position that it has fully and timely complied with its obligations as established in the Lease Agreement.
The Lease Agreement is currently operating normally, just as it has in the last 20 years. According to the agreement, any differences between the parties must be resolved through an arbitration proceeding.
Click here to read the SQM (NYSE:SQM) press release