Santiago, Chile, September 6, 2023. Sociedad Química y Minera de Chile SA (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-A, SQM-B), the “Company” informs that it has received IRMA 75, the highest rating delivered to date, for its operation lithium mining company in the Salar de Atacama of the Initiative for Responsible Mining Assurance (IRMA) The on-site audit was carried out last year, as SQM committed to conduct an independent assessment of its operations in the Salar de Atacama to provide greater transparency to all stakeholders.
SQM is one of the first lithium miners to undergo a global IRMA audit. Through these audits, an IRMA-trained and approved auditing firm evaluates the operation in 26 areas, including water management, human rights, greenhouse gas emissions and fair labor, among others. IRMA is the world's most comprehensive, rigorous and transparent mining standard, developed over 10 years with input from numerous stakeholders. IRMA members include key players in the electric vehicle industry, including BMW, Ford, General Motors, Mercedes-Benz, Tesla and Volkswagen AG.
The IRMA scoring system recognizes four levels of performance: IRMA Transparency, in which a mine is evaluated by third parties and publicly shares its scores; IRMA 50 or 75, meaning a mine shares its scores and also meets a core set of critical requirements along with at least 50 percent or 75 percent achievement of the possible score in each of the four principles the Standard for Responsible Mining (business integrity, planning for positive legacies, social and environmental responsibility); and IRMA 100, which means that the mine meets all the requirements of the Standard.
The ranking is an additional effort of SQM's commitment to the transparency of its operations and reflects SQM's commitment to producing the most sustainable lithium in the world in the Salar de Atacama.
Committed to sustainable mining and supporting human development, SQM's objective is to ensure environmentally friendly processes. For this reason, the company works for the carbon neutrality of its lithium products by 2030 and the zero carbon footprint of the entire company by 2040. SQM has also joined the Race To Zero; global campaign bringing together 11.000 organizations to take rigorous and immediate action to halve global emissions by 2050, while meeting criteria aligned with science. In this same context, the company has already reduced its consumption of continental water by 50% in the Salar de Atacama and aims to reduce its use by 65% throughout the company by 2040. For this, a team of scientists de SQM is in charge of continuous monitoring using its unique knowledge of the geological and hydrogeological conditions of the Salar de Atacama.
SQM leads the industry in terms of shared value, becoming the largest taxpayer in Chile in 2022, contributing more than US$5 billion to the Chilean treasury and regions. In addition to corporate taxes and a progressive lease payment structure, which ensures that SQM's contributions increase with the price of lithium, SQM is dedicated to sharing the value of its operations with local communities. SQM contributes between US$10 and 15 million annually to the indigenous communities neighboring the Salar de Atacama. Additionally, 1,7% of SQM Salar's revenues are paid to the regional government of Antofagasta, the municipalities of Antofagasta, María Elena and the commune of San Pedro de Atacama. To support the development of the local economy, SQM also invests heavily in R&D in the region.
SQM's work in the region to empower local communities aims to create shared social value. SQM continues to work with communities throughout the region to share knowledge in key areas such as entrepreneurship, agriculture and education, in addition to supporting medical and dental services, improving the well-being of remote communities. SQM is also proud to welcome an increasing number of people from neighboring communities to work at its operations through training and apprenticeship programs.
Ricardo Ramos, General Manager of SQM, commented: “Achieving IRMA 75 for our lithium operations in the Salar de Atacama is an important milestone and a testament to the hard work of everyone at SQM. Committing our lithium mining operations to an IRMA audit and transparently sharing audit results reflects our desire to improve and have an open dialogue with all stakeholders. We will continue to strengthen our work to become the world's most sustainable source of lithium, to contribute to the communities surrounding the Salar de Atacama, and to work to further reduce our environmental footprint. This audit serves as a roadmap to IRMA 100, full compliance with IRMA standards. The energy transition must be just and sustainable, and we are proud to play our part. There is still much work to be done, but in collaboration with our stakeholders, we are committed to investing the necessary efforts to achieve our shared vision.”
Aimee Boulanger, Executive Director of IRMA, said: “We congratulate the SQM team that carried out this IRMA audit. It demonstrates SQM's commitment to transparency and community engagement, and its intention to continue improving social and environmental performance at its Salar de Atacama operation."
