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Iodine and Iodine Derivatives

The leaching of caliche ore at the Pedro de Valdivia, María Elena, Nueva Victoria, Iris and Pampa Blanca facilities generates the solutions that are used to produce iodine.

These solutions are rich in nitrates, and they also contain iodine in the form of iodate. Part of the iodate in the solution is reduced to iodide. The resulting iodide is combined with the rest of untreated iodate solution to release elemental iodine.

The solid iodine is concentrated, then refined, melted and prilled. SQM holds patents in Chile and in the United States for its iodine prilling process.

In the past 30 years, SQM´s continuous search of opportunities and constant innovation have allowed the Company to position itself as the leading producing of iodine in the world. SQM has iodide and iodine production plants in several locations in the north of Chile, thus assuring a reliable and consistent supply.

Iodine

The largest economically exploitable reserves of Caliche Ore are in northern Chile, and SQM holds the larger part of them. SQM has the world’s largest iodine production capacity. It is co-produced with Nitrates, which gives SQM flexibility to accommodate the output according to market needs.

IODINE ACS/USP/EP

Iodine is used in a wide range of medical, agricultural and industrial applications, either as such or in the form of Iodine derivatives. SQM’s iodine meets International specifications ACS, USP and EP. Main Iodine applications are X-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical, herbicides and chemical intermediates.

IODINE DERIVATIVES

Iodine derivatives are used in a wide range of medical and industrial applications as well as in human and animal nutrition. Potassium Iodide is used in polarizing films for liquid crystal displays (LCD/LED), sodium Iodide has applications as reagent and pharmaceutical intermediates. Iodine is added in the form of potassium iodate or potassium iodide to edible salt to prevent iodine deficiency disorders. Calcium iodate is used as nutritional supplement in animal feed.

AJAY SQM GROUP

SQM is present in the Iodine derivatives market through a Joint venture with the US’ company Ajay Chemicals, named Ajay-SQM Group (www.ajay-sqm.com). This venture has facilities in Chile, the United States and Europe, and has become a leader producer of inorganic and organic iodine derivatives in the world.

Main uses of iodine

• X- ray contrast media

• Pharmaceuticals

• LCD/LED polarizing films

• Iodophors

• Biocides

• Fluor-chemicals

• Nylon

• Herbicides

Biocides

Iodine-based biocides are used in industrial applications such as paints, adhesives, wood treatment and metalworking fluids.

LCD/LED polarizing films

Liquid crystal displays utilize two sheets of polarizing material with a liquid crystal solution between them. Iodine is a key component in these polarizing films.

Human Nutrition

Iodine is important in human nutrition, as the body needs to have a certain quantity of iodine to avoid conditions such as goiters, thyroid malfunctioning and potential mental retardation and abnormal growth in developing fetuses. Salt is iodized practically all over the word, in attempt to prevent these conditions.

X-ray contrast media

Iodine is extensively used in the pharmaceutical industry, as a raw material for x-ray contrast media and antiseptics, as well as a catalyst or reagent in the synthesis of several active pharmaceutical ingredients such as antibiotics, corticosteroids and cardiovascular drugs.