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SQM Aims for Potash Production of 2 Million Tons by 2013

Soc. Quimica y Minera de Chile SA, the country’s biggest fertilizer producer, expects to achieve targeted potash production of 2 million tons a year by 2013, Deputy General Manager Patricio de Solminihac said.

SQM, as the company is known, plans to boost output from 1.7 million tons presently as it seeks to tap growing global fertilizer demand, de Solminihac said at a Santiago conference.

Global trade in agricultural products climbed to an all- time high in 2010, rising about 12 percent above the previous record in 2008 on increased volumes and prices, according to the European Union. Potash prices are rising as expanding food demand strains global supplies of corn, soybean and wheat.

Fertilizer demand will continue to grow “like never before” because of the need for increased food supplies, de Solminihac said today.

Chilean businessman Julio Ponce owns a controlling stake in SQM. Potash Corp. of Saskatchewan Inc., the world’s largest potash producer, owns the next biggest stake in the company.

To contact the reporter on this story: Matt Craze in Santiago at mcraze@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

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