SQM Today 10

Issue N˚10 | MAY 2017

FROM TOCOPILLA TO THE WORLD For over a century, this port has been a key piece of Soqui’s internationalization. Learn the story of its evolution as a port through the narratives of five Tocopilla employees. (p. 10)

ENAMORED WITH RESCUING THE PAMPA The story of a couple that recycles the vestiges of the splendor of the nitrates industry in the middle of the desert, making sure it is not forgotten. (p. 05)

THREADS OF THE DESERT

SQM, A LEADER IN BERLIN

Immense cotton plantations fertilized with KNO3 manufactured

by SQM grow in Mexican soil, supplying the textile industry. Did you know that your jeans might have fibers from our desert? (p. 07)

Our Company had a presence at the world’s most important high tech agriculture event with two key scientific presentations on what iodine and potassium nitrate contribute to crops. (p. 04)

LOTS OF WORD SEARCH WINNERS. (P. 19)

01 Editorial

02 Facts and numbers

TOWARDS A CULTURE OF PREVENTION

By Pablo Pisani, Sustainability Manager

2016

2014

65%

percentage increase in sales volume for solar salts, which totaled 60,000 MT in 2016, up from 22,000 in 2014.

Over A great deal of progress has been achieved around the world in the area of risk prevention over the past few decades, and SQM has also taken up this challenge and made it a priority. We started this year strong with zero lost-time accidents in January and February. However, in March and April our performance was poor. We had regrettable accidents at different sites, including the death of a contractor’s driver in Salar de Atacama.

These unfortunate incidents are a call to redouble of our efforts in the area of safety. All of us must play a part in the daily and meticulous effort to achieve safety, in which the human factor plays a decisive role.

We must be focused, get enough rest, concentrate on our work and identify any unsafe conditions prior to starting a task. These steps will help us to stay on the right path.

Many things have contributed to the implementation of new health and safety regulations in the labor sphere and the development of modern personal safety equipment and methodologies to analyze and monitor hazards and risks. SQM has incorporated these technological changes and preventative methodologies into its various sites, along with Ministry of Health protocols and other occupational health and safety legislation. Our ongoing pursuit of this goal brings us closer to our “zero accident” commitment, but this challenge requires that we move towards a cultural transformation for all of the Company’s employees, a change that incorporates prevention and risk oversight as something natural and ongoing in the development of our work. It requires, for example, for us to truly internalize the impact that it may

Manager of Communications and Public Affairs: Carolina García Huidobro Head of Corporate Communications: Álvaro Cifuentes Head of External Communications: Tamara Rebolledo Journalists: Carolina García Huidobro, Mauricio Olivares, Tamara Rebolledo, Álvaro Cifuentes, Camila Villaroel and Claudio Álvarez

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have on our lives and the lives of others. One second of distraction at the wheel or failing to wear a seat belt can make the difference. These seem like small details, but they can make the difference between a healthy life and safe return home or a dramatic change to the course of our history.

One part of this cultural change is the work with the M1 Lean methodology. The incorporation of the Prevention Department in these processes and performance dialogue, role confirmations, problem solving or operational standards has allowed us to identify, evaluate and naturally control hazards and risks in each work area. The necessary synergy has been achieved between production and prevention, allowing this change to reach the senior management of each operational level of the work sites.

To date, despite these recent setbacks, our accident rate has decreased steadily, placing us below average for large-scale mining in Chile. However, we are aware that we are still far from the “zero accident” level. In order to stay on the road to safety, we must keep in mind that each one of us is a link in a delicate chain of which we must take utmost care.

$87mill

pesos were contributed by SQM and its employees through the “1+3 campaign” for Fundación Levantemos Chile.

The contributions will support reconstruction of the areas affected by the devastating forest fires that impacted southern Chile in early 2017.

80%

average price increase of lithium and lithium derivatives compared to average prices observed in 2015.

$$$

$$

$ 2015

Photography: Tamara Rebolledo, Álvaro Cifuentes, Camila Villaroel, Claudio Álvarez, Mauricio Olivares.

Design: www.singular.cl Illustrator: Daniela Vergara Printing: Ograma Los Militares 4290, 1st floor, Las Condes All rights reserved.

75%

2016

degree of implementation of M1 at SQM.

03 Briefs SQM STRENGTHENS ITS CRIME PREVENTION MODEL “One of the fundamental pillars of our organization is personal safety, production efficiency and ethical actions. In regard to the later, the Compliance Area values the fact that we have the opportunity to meet with SQM workers directly and in small groups to reinforce the main aspects of our Code of Ethics and its importance for the company,” said Andrés Yaksic, Risk Management and Compliance Manager.

Employees from Coya Sur, Tocopilla, Salar del Carmen, Antofagasta and Santiago received detailed training on our Code of Ethics, Law 20,393 on crime prevention, the use of reporting channels in case of irregularities and forms of communication among employees and the Compliance Area, focusing on the “SQM Compliance Reports” publications.

Courses will be offered at Nueva Victoria, Salar de Atacama and Santiago in order to train 500 people in traditional classroom settings in addition to the e-learning trainings that have been planned.

UC SIMULATION HIGHLIGHTS SQM LOGISTICS In March, our press office hosted a talk with the newspaper El Mercurio by Dr. Pedro Gazmuri, who explained the logistics mathematical model developed by Pontificia Universidad Católica de Chile (PUC) based on a successful case: SQM’s logistics model for dispatches in Salar de Atacama.

The system allows the Company to address the various problems that emerge in the area of logistics, including all of the variables and possible solutions that generally involve large quantities. In this context, having a great deal of information allows one to reduce deviations and errors and make the best possible decisions.

The development and design of mathematical models and their adequate implementation is a challenge that SQM has addressed for some time in its Salar de Atacama Logistics Area, which ships 10,000 tons of product to its main destinations, Tocopilla and Coya Sur, each day.

THE IMPORTANCE OF RECOGNITION VIVO M1 is the name of the plan to build and strengthen a culture of recognition within Soqui by clearly identifying noteworthy performance by our employees.

“Recognition is part of rewarding everyone’s effort and commitment, reinforcing the behaviors that we believe are key for our approach to our work. VIVO M1 is based on the idea that everyone can recognize others and be recognized,” stated People and Performance Senior Vice President José Miguel Berguño.

The program is structured around the four M1 systems (Shared Goals, Ongoing Improvement, Efficient Processes and Personal Development). Specific behaviors were established in each for recognition. Vivo M1 highlights accomplishments during Performance Dialogues and includes an online registration system that can be used by all members of the Company.

According to the article in El Mercurio, the simulation model allowed SQM to evaluate its operating and investment policies, analyze current contracts and project future performance as well as that of the logistics area, defining more robust operations with more real scenarios.

“SQM is truly a world leader in lithium production through its extraction of brine. In the case of Cauchari, SQM brings the best engineers and hydrogeologists in the world to the table to extract lithium brine, build the evaporation process and obtain high quality lithium carbonate products.”

David Deak,

Chief Technology Officer (CTO) at Lithium Americas Corp (LAC), on SQM regarding the joint effort to produce lithium in Argentina.

04 Overheard...

“When I joined the Atacama Tierra Fértil program, I didn’t know anything about this crop. SQM played a key role by providing training and knowledge. Its assistance has continued, and its employees are monitoring our crops and the processes of our products.”

“SQM reinvented the nitrates industry, which was in trouble. It started from zero and became the producer of the highest quality potassium nitrate in the world, made with Chilean supplies at the lowest cost with the lowest carbon footprint on the market, chlorinefree and 100% water soluble.”

Manuel Tejerina Mamani,

Armin Lauterbach,

Toconao grape grower; producer of Vino Ayllu on the Atacama Tierra Fértil Program promoted by SQM in the newspaper El Mercurio de Calama.

PhD, Federal Politechnical Institute of Zürich, Industrial Engineer and Professor at PUC in an opinion column in the newspaper El Dínamo. may 2017

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05 Without borders SQM PLAYS A LEADING ROLE IN BERLIN

By Carolina García-Huidobro

With scientific presentations of its latest research on the contribution of iodine and potassium nitrate to crops, our Company was a key participant in the 15th International New Ag. Conference, the world’s top high-tech agriculture event.

In late March, Patricio de Solminihac flew to the German capital to offer the welcome speech at the inauguration of the most important global forum on agricultural technology. The event also included a trade fair and scientific conference in which SQM played an active role.

Renowned professor and researcher from Istanbul’s Sabancy University, Ismail Cakmak, represented our Company, presenting his latest scientific research on cutting edge issues for crop nutrition. His presentations were entitled “Agronomic crop biofortification with iodine-enriched fertilizers for improved nutrition with iodine” and “Potassium nitrate: a new reinforcement for foliar nutrient absorption and translocation.”

Professor Cakmak is a well-respected scientist with a high rate of impact in his numerous publications. In fact, last year he received the 2016 World Academy of Sciences award.

“Health comes from the field, not the pharmacy.”

His research on agronomic biofortification of cereal grains with iodine is coordinated by Turkey’s Sabanci University and supported by SQM, the International Fertilizer Industry Association (IFA) and the company Nestlé. The presentation of the results in Berlin was the first time that Professor Cakmak spoke about them before a large audience.

Agronomic biofortification as a fertilizer strategy is highly promising for effectively and sustainably increasing concentrations of (micro) nutrients in order to contribute to human health and nutrition.

Agronomic biofortification promises to efficiently and sustainably increase concentrations of micronutrients in order to support human health.

An estimated 2 billion people around the world are affected by iodine deficiency, which has numerous negative impacts on human health. Agronomic biofortification seeks to decrease that number.

The project “Zinc and Iodine Fertilizer Harvest” is being conducted in China, India, Thailand, Pakistan, Turkey, Mexico, South Africa and Brazil. It is at the foliar testing stage as part of an effort to create a fertilization strategy with this mineral and thus improve its concentration in crops such as rice and wheat.

The research project “Potassium Nitrate: Reinforcement for Absorption and Translocation of Foliar Nutrients” by Ismail Cakmak, was presented by Harmen Tjalling Holwerda, Global Market and Product Development Director of SQM. The study shows that adding potassium nitrate to the solution in the pulverization tank promotes the absorption of the nutrients in plants.

Scientists have recognized and validated potassium nitrate as the preferred source of N-NO3 and K in plant nutrition and an essential source for the growth and flowering of fruit trees. Professor Cakmak’s finding adds a new benefit of applying potassium nitrate to crops.

Patricio de Solminihac, Chief Executive Officer, welcoming participants to the 15th International New Ag Conference.

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06 First person RECOVERY ARTISTS

By Claudio Álvarez U.

In addition to serving as Lead Operator at the Coya Sur Drying Plant, Ángel Trigo recycles vestiges found in the pampa and creates both works of art and useful pieces.

He tells us the history of his family project “Pampa Recyclo,” which is designed to recover the heritage of the nitrates industry.

Ángel Trigo and his wife, Danisa Castro, share the privilege of having explored the old nitrates offices located near María Elena. Both channel their inner archaeologist/anthropologist, which is what brought them together in 1985. Since then, they have visited and explored the remains of abandoned buildings in mining towns, unearthing bottles, cigar boxes and other objects that date back to the heyday of the nitrates industry.

Both are collectors and, following the discovery five years ago of a piece that marked Ángel’s childhood, have made more than a hobby of this pastime.

“I found a bottle cap that had the image of an indigenous person printed on it,” he recalls. “My friends and I used to play with it. We pretended that it was the ball on a field that we had traced out in the dirt.

The idea was to use this unique ball to score a goal using your fingers. It is as if the elements that we recycle allow us to travel back in time.”

The bottle cap is from Lautaro Ginger Ale, a soft drink that was made in Antofagasta in the mid-20th century.

Ángel and Danisa share a passion for this activity and regularly head to the desert to recover objects together.

“This encouraged me to go a step further. We started by looking for new objects that were part of nitrates life and part of our history. Since then, we have made more frequent visits to the pampa,” Ángel explains.

Cloudy days are perfect for “rummaging”, the term that Ángel and his wife use to refer to their long days of searching. “We have a picnic breakfast at 8 a.m. and then put on our safety gear and start the adventure.

We lose track of time. Sometimes we don’t eat lunch until 4 p.m. We have invited family members to join us, and they love it. They always want to come back,” his wife explains.

Their collection grew quickly. They started to recycle matchboxes, tea boxes and sardine cans. They create a special storage area in their house for the collection, which included a series of glass bottles in different colors and styles, ties and corrugated iron. “We think of them as our treasures. We love finding a new object because we know that it tells someone’s story,” Ángel explains.

They wanted to go one step further, but had some disagreements about how to proceed. “When we asked ourselves what to do with the recycled elements, which had become too numerous to keep, we started to argue,” Danisa says, laughing. “We finally agreed to create useful items from the recycled elements and create value out of our nitrates heritage.”

This was the beginning of “Pampa Recyclo,” a family business launched in mid-2016 that markets recycled creations and shares the history of the pampa. Their children, Jessenia (31), Mitchel (25) and Johao (15) admire their hard work. “It is a beautiful project that requires a great deal of dedication. We tested it with the María Elena exhibit and it was really well received. This story is just beginning, and we are already achieving a great deal. SQM gave us a boost through the micro-entrepreneur funding competition so that we could buy new tools,” Ángel says.

“Our dream is to cross borders with our work and exhibit our pieces in an important gallery,” the Coya Sur employee explains as he loses himself once again in the horizon of the pampa, searching for treasures that will allow him to travel back in time once again.

Lamps, ashtrays, watches, paintings and many other objects can be made from bottles, packaging, matchboxes and cans that are reborn as valuable pieces in Ángel and Danisa’s hands.

may 2017

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07 My other me Andrés Yaksic

CHANGE OF SCENERY

By Carolina García Huidobro

At Soqui, he is our “Officer” of Risk Management and Compliance. He makes sure that best practices are used so that our Company can reach the best ethical standards. Outside of the office, he has been doggedly pursuing a parallel career as an opera critic with the newspaper El Mercurio.

Andrés Yaksic Beckdorf’s love of classical music undoubtedly has a connection to his European roots.

His paternal last name is Croatian, from the Island of Brac. This small community in the Adriatic province was home to 90% of Chile’s Croatian immigrants.

His great grandfather, Antonio Yaksic, arrived in the city of Antofagasta in 1913 at the height of the nitrates boom. His father, Nicolás Yaksic, arrived in Santiago with his family when he was a child. His mother, Karin Beckdorf, is from a German family.

Andrés doesn’t remember any one moment, he just knows that music was always in his life. Andrés and his brother Thomas, the youngest of four siblings, are big music fans. In fact, Thomas earned a law degree but works in the field of cultural management, and has served for many years as the Artistic Coordinator at the Santiago Municipal Theater and as a Casting Director in the Sao Paulo Municipal Theater. He is currently working with an international consulting firm.

When he was eight, Andrés was a student at San Ignacio El Bosque and played the organ and piano.

Soon after, he picked up the electric guitar. He trained his ear by listening to modern composers like Arnold Schoenberg and Alban Berg, “very difficult music, not at all evident for novice ears, loaded with dissonance.” But he also followed the classics, and most of his favorites are from Germany, including Strauss, Mahler, and Wagner, along with the fathers of Italian opera, including Verdi, Rossini, Bellini and Donizetti.

“There is no doubt that the experiences that influenced me the most came between eighth grade and twelfth grade with Gilberto ‘El Chico’ Ponce, a great music and aesthetics teacher,” he says. “In addition to being an excellent music critic, he was a good teacher. He helped me to develop the meaning of aesthetic appreciation in general; he gave us a great deal of knowledge about film, painting, sculpture, theater, classical music, opera, etc. He was extraordinary.”

Yaksic did not hesitate before deciding to study Engineering at PUC. He started his first job as a Strategic Marketing Engineer at Soqui on January 2, 2008, where he was to analyze the markets. Over the course of nearly a decade, he has held a variety of jobs: new business development in finance, analysis of new lithium deposits; finance management in sales offices until late 2015, and since then Risk Management and Compliance. This area develops a very strategic mission for the Company and

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is radically different from his previous positions. He has to oversee and drive compliance tasks because there is much more regulation of publicly traded companies like SQM. “I think that we have improved because we comply and truly do things as well as possible, making the most of the process and becoming stronger because of it. People increasingly choose to join and stay with companies where their daily work has meaning, and that is what we do. There is no doubt that the emotional piece is gaining ground.”

After Hours “I had the opportunity to meet one of the directors of El Mercurio at the opening of La Traviata in 2009,” he says, remembering how he became a critic. “The curtain closed to boos, and the opera critic wasn’t there because he had to edit reports that night. It was clear that they needed to have two critics. I told them that I could do it, and they liked the idea of a young engineer from a different city. Of course, they had to try me out.

They did it, and they liked my work, and I have been with them for eight years.”

He has done so with affection and a great deal of discipline because he has to make it work with his work and family. Andrés Yaksic is married to Isidora Greene, an engineer and history buff who usually attends performances with him. Their children, Miguel (3) and Antonio (1), naturally leave them very little free time. “I have put together a routine,” Andrés explains. “Opera performances generally take place on weekdays at 7 p.m. I get home at around 11 p.m. and sit down to write because I have to submit the text the next day. I know that it takes me about four hours and that the piece should refer to the production, costumes, sets, direction, singers, orchestra and chorus. I always finish late at night and then revise it early the next morning.

When the performance is good, I enjoy it a great deal and get very wrapped up in it. It is tough when it does not go well. You have to be objective, but it is hard to say it because there are people involved and you know that an enormous amount of work goes into the production, and that there are very limited resources available for this in Chile.”

08 Global customers THREADS FROM THE DESERT

By Alvaro Cifuentes, Claudio Álvarez y Mauricio Olivares

Did you know that there are crops and plantations on five continents that grow better because of the potassium nitrate produced by SQM in Coya Sur? The enormous La Algodonera de Oasis property located in Ojinaga on the U.S.-Mexico border is one of the many fields in which SQM fertilizers are used.

Much of Mexico’s cotton crop is grown using the potassium nitrate from our desert.

This cotton will be harvested, processed and turned into fibers.

Chihuahua is the world capital of cotton production. This Mexico-U.S. border state, which shares its border with Texas, is home to Ojinaga, where Algodonera de Oasis grows 9,000 hectares of this valuable vegetable textile fiber.

The company has been a client of ours for three years, buying one of our star specialty items: potassium nitrate (KNO3), which SQM produces in Coya Sur. Its application has increased crop yield and quality, boosting plant volume and weight.

Franz Loewen explains how the natural fertilizer has served a double purpose: “The plantations have been affected by verticilosis, which is caused by a fungus that weakens the crop. We have found that potassium nitrate is a very good food for strengthening the immune systems of the affected plants because it improves fiber quality. We are very pleased with SQM’s services. The results are clear. We are also advised by one of the Company’s agricultural engineers, who carries out technical visits every two weeks and provides us with fertilization programs for each crop,” Leowen adds.

“Compared to the products that we used to use, we are certain that we have uniform quality fibers that meet technical specifications according to the market needs,” says Franz Loewen, Sales Manager.

The positive results are also observed in bean, watermelon, peanut, melon and chili pepper crops grown at Algodonera de Oasis on another 2,000 hectares.

All of these products are exported to the United States. Meanwhile, 90% of the cotton produced is sold in Mexico. The main client is Agroindustrias Unidas de México, which makes thread for various textile uses. The remaining 10% is exported to Asia for denim production.

“One of the big advantages of this fertilizer is its solubility power, which is very easy to apply through technified irrigation.”

Aerial view of the fields at Algodonera de Oasis, which covers 9,000 hectares.

So, cowboys, Texans and people shopping at every department store in the world, can all wear fiber from our desert. Think of this the next time you pick up a pair of jeans.

The image shows the watermelon harvest process in the fields in Ojinaga.

may 2017

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09 At work IN THE CARE OF LITHIUM

By Mauricio Olivares P.

Because of ongoing demand for its use in cell phone batteries and electric cars, and because Chile has one of the best reserves of this resource, lithium is on the tip of everyone’s tongues more than ever before, including government officials, analysts and investors.

However, few know that its complex process depends on a series of links that form part of the chain of production that is completed by a team lead by Jubitza Reyes at the Salar del Carmen Chemistry Lab.

With 26 years of experience with the Company, Jubitza has first-hand knowledge of the constant growth and changes that the organization has undergone over the past three decades. Born in María Elena, she has known of Soqui’s pampa tradition since she was a little girl because her parents also worked for the Company. (Her mother, Uberlinda Kessra, was employed by the Finance Department for over 20 years).

After completing her studies at the traditional high school Liceo Marta Narea Díaz (formerly Liceo de Niñas de Antofagasta) and Universidad Católica del Norte with a degree in Chemical Engineering, Jubitza began to write her own story during the 1990s, when she had the opportunity to finish her thesis at SQM. “My thesis was on the Caliche Fine Leaching Project,” she recalls. “An initiative in the Technical Area came up, and I started to strengthen my knowledge of fertilizers and new products. It was there, in the old Corporate Research Center, where I was trained. I spent 15 years learning the various stages of the industry,” she says.

Over time, the current Lithium Potassium Technical Quality Manager expanded her area of specialization to finished products, solid management and feedback received by innumerable customers located in 110 countries around the world.

She focused on recording and verifying possible deviations, which is key for guaranteeing the delivery and sale of a high quality product.

However, destiny had other plans for this mother of three—Macarena (25), Paula (23) and Fabiana (14)—who is happily married and a fan of gymnastics. After 19 years in Research and Development, she had to change her focus to a new challenge.

“It was very important for me that the Company wanted to entrust me with the task of guiding this group of people who staff the Salar del Carmen Chemistry Lab,” Jubitza says. “It is a great place for sharing my knowledge.”

Jubitza works alongside the various analysts that ensure that every part of the process of producing lithium is carefully completed.

Surrounded by test tubes, graduated cylinders, pipettes and cutting-edge analytical equipment, Jubitza carefully observes the work conducted in each one of the rooms in these old facilities. Here, the order and organization of each one of the processes developed within its white walls are of note.

This work is handled by the team that Jubitza has overseen since 2014, which carries out important work on the various products that are eventually sold at the local and international levels. Each one of the 32 members that staffs the shifts at this analysis center, which focuses on lithium carbonate, lithium hydroxide and their byproducts, participates in overseeing processes, supporting operations and certification of packaging and shipping. They also provide analytical support for the new projects that the Potassium and Lithium Operations Senior Vice President develops.

“Our team of analysts, licensed operators, technicians and chemical engineers carries out very important work.

The production chain for lithium ends here. This is our Company’s calling card for clients who are given a guarantee of quality and excellence,” she notes.

Many challenges and goals continue to motivate Jubitza. On a personal level, she is inspired by her desire to travel and learn about new cultures, explore countries in Europe and observe other lifestyles.

However, she also longs to pass her knowledge and passion on to each member of this area along with her experience in the implementation of the new Lean methodology through M1. “Thanks to this tool and everyone’s commitment, we will be able to better organize our standards, always looking to improving our work,” she says. “We have experienced rapid expansion of our staff, infrastructure, equipment and productivity. It is therefore very important to strengthen our leadership, and in that regard the unconditional support of this group has been key, especially that of Carla Inostroza and Eva Narvaez (the laboratory managers).

Their skill and professionalism allow me to better direct the direction and quality of our lab.”

Carla Inostroza, the laboratory manager, with Jubitza Reyes, with whom she enjoys a solid professional relationship based on trust.

Jubitza with her team from the Salar del Carmen Chemistry Lab.

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10 Innovasoqui

NPT ll Refining Plant

HIGH PURITY INNOVATION

By Claudio Álvarez U.

The engineering for this new production unit was developed by professionals from the Coya Sur Operations and Iodine Nitrate Technical and Project Management Areas.

Step by step, they designed and built a compact, low cost and high performance plant. This is a huge accomplishment by the employees responsible for ensuring that the crystalized potassium nitrate produced there is 99.9% pure.

Marisela Cáceres, Chief of the NPTII plant, with operators from her team.

Like the preparation of a sophisticated recipe, a series of physical and chemical processes that have been carefully designed and programmed come together to make a nearly perfect KNO3. First, Coya Sur conducted intense engineering and modernization work in mid-2000 after the construction of the NPT II (Technical Potassium Nitrate) plant. Its implementation ensured greater automation of the process and produced a 100% increase in production capacity for high purity potassium nitrate compared to its predecessor, NPT. Today, NPT II executes a recrystallization process to purify potassium nitrate from the atmospheric system. It is simple: the crystals are dissolved at 80° Celsius (C). The resulting solution is filtered to separate out impurities and is cooled to 35° (C) through a vacuum crystallization process that allows for the formation of crystals. Finally, after passing through a centrifuge, the final product is obtained in its solid state: high grade crystallized potassium nitrate.

In late 2016, NPT II faced another important technological challenge: the implementation of a complementary refining plant to eliminate chloride, magnesium sulfate and other substances considered to be impurities in the product and to reach a level of 99.9% purity. The unique aspect of this plant is that the crystals from NPT II are given a superficial bath so that the product has another opportunity for purification, a process that improves the efficiency of the cleaning and use of water.

“This plant gives us the assurance that regardless of the concentration of the primary materials used, the quality of the final product will always be the same and will meet our clients’ technical specifications and standards,” explains NPT II Plant Chief Carlos Flores.

The design of the complementary refining plant was based on the NPT-REF refining plant, which was built in 1994 and is still operational. Changes and optimizations were made to reduce the size of the building by half and double its production capacity. “The process began with the support of operators from the old plants, which was key because they shared their experience and knowledge with us,” explained Gabriel Meruane, Director of the Iodine Nitrates Technical Management Research Unit.

In regard to the plant’s performance, Marisela Cáceres, the Plant Manager, adds that, “When this refining unit became operational, the results were clear. Our operators immediately included it in their process and today they consider it a strategic part of the NPT II chain of production.”

The Operations Team is responsible for maintaining continuity of the NPTII and refining plants.

Parallel to this, the Coya Sur pilot plant conducted simulations of the proposed industrial engineering process. This led to improved dimensioning of the equipment and consolidation of theoretical tests.

“With this information, we moved to the engineering phase, where know-how and knowledge from project management and equipment suppliers allowed all of the ideas to be integrated into a unique engineering design. It was evaluated prior to construction. Once the work was done, the production and maintenance team again supported the outfitting and implementation processes in order to oversee the details and create a safe, high efficiency productive unit,” Meruane recalls.

may 2017

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11 Cover story

FROM TOCOPILLA… TO THE WORLD

By Claudio Álvarez

From the splendor of the nitrates boom more than a century ago and in the reinvention of this industry in the 1980s, this port has played a key role in the current presence of Soqui products on five continents. This is the story of the evolution of the Port of Tocopilla through the narratives of five employees.

“For decades my family has claimed that we have a hero among us,” Jorge Tellez, Operations Manager at the Port of Tocopilla laughingly recalls, referring to the sailor Blas Tellez, the hero of Covadonga who died in combat during the War of the Pacific. His body was left in Tocopilla when the Chilean fleet arrived on the city’s coasts, fleeing from the Peruvian ship the Huáscar. “My grandparents told me that story, which they learned from their elders. We were never sure that it was real, but as a family we are proud of it. It was really gratifying to visit the mausoleum where someone who might have been my great-great-‘relative’ is buried. My nieces and nephews also enjoy it and have kept this story alive among the younger generations.”

Motivated by this family story, one of Jorge Tellez’s first acts when he came to work in Tocopilla in 2013 was to visit Condell Plaza, where Blas Tellez’s remains are buried. Four years ago, this Civil Engineer from Antofagasta got off the train to get on the ship, leaving the Railroad Maintenance Office for the challenge of the new Operations Area at the port. “I didn’t know a lot about boats, but I didn’t hesitate when I was offered the job. I am proud to direct operations and be part of this new chapter in the port’s history.”

Under Bolivian management and prior to the War of the Pacific, the Port of Tocopilla was catalogued as minor. It wasn’t until 1880, after its annexation following Chile’s victory, that it was considered a major point given its strategic position for the nation’s economy at the time.

During the 1930s, the pampa was linked to the port by a railway. This facilitated the proliferation of new nitrates offices such as María Elena (1926) and Pedro de Valdivia (1931).

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However, after World War I the international nitrates industry began to collapse because of the emergence of a synthetic competitor. Various commercial alliances unsuccessfully sought to address the situation (Compañía de Salitre Chile, Corporación de Ventas de Salitre y Yodo de Chile, and the partnership between the Chilean Economic Development Council and Compañía Salitrera Anglo Lautaro).

But nitrates were no longer a jewel.

SQM began its work in 1983 and this led to the reinvention of nitrates and transformation of the industry through the production of potassium nitrate (KNO3).

The international market was interested in this new fertilizer, which offered extraordinary properties for farming such as rapid absorption, easy solubility and the absence of chlorine. This launched the rebound of global demand. In early 2000 its exportation doubled, thus boosting port activity in Tocopilla.

But today the port of Tocopilla is the world’s most important port for the nitrates produced at Coya Sur and granulated potassium chloride made in Salar de Atacama. In 2016, over 2 million tons of these fertilizers were shipped from this port to destinations around the world, positioning our Company as the global leader in this increasingly important industry for food development.

11 Cover story

Mirta Cortéz cleaning storage boxes.

Graciela Báez inspects products in the packaging area.

This final stage of the production chain that takes place in Tocopilla is decisive for maintaining the high and demanding quality standards required by the market, our clients and global regulation of each product. The Port Operations Management, with the support of Quality Control, coordinate operations more efficiently as if the port were a Formula 1 pit stop. The smallest error in this logistics chain can cause a delay or even more significant problem.

An important milestone in the history of this logistics terminal came in 1959, when the mechanical storage plant was built, a key piece for streamlining shipments and exports through transport belts installed on a mechanized arm. This allowed bulk products to be transferred directly to the shipping warehouses.

Mirta Cortés was the first woman to be a plant operator—and is still the only woman to hold this job. “It is a source of pride to be the first, because it was not easy to get here. The men used to say, ‘What is this lady doing here?’” she recalls.

But over time, she showed that she was capable and has settled into the role.

Mirta supports the unloading of the product in the storage boxes, oversees their cleaning and ensures that any waste left on the transport belts is removed.

She started working in the port 11 years ago as a temporary bagger and then worked as a driver and truck receiver. In 2014, she joined our Company along with other temporary workers through an initiative designed to expand SQM staff.

“I worked in a store selling clothing for four years, which is very different from what I would end up doing,” Mirta says. “But now that I am 54, I am not afraid of challenges and I am very grateful to SQM for having trained me and given me the opportunity to grow.”

the port at the age of 25. After three years with the contractor, the company’s contract with Soqui ended and Graciela was unemployed. But she’d fallen in love with the port and set out to find new opportunities there. She worked as a temporary worker until 2014, when she was hired by SQM. Today she is the Head of the Packaging Area, and her main duty is to keep the area in optimal conditions for storing and distributing the packaged product for the shipping process.

“As Tocopilla natives, the port is very important. It is a key source of jobs for the community. I would say that almost all of us are local residents, and that generates a feeling of family. We all know each other and are proud to work in this port, which has impacted the history of many families in this area,” he says.

Frankie Pizarro’s experience confirms it. His is the third generation in his family to work for the Company. “I was born in Pedro de Valdivia. My father worked there in the Payment Office and my mother worked in the store. I had to leave the pampa Jorge Tellez at Blas Tellez’s grave.

Graciela Báez came to the port two years before Mirta. She remembers that there was no personal safety equipment for women. “For example, I had to use size 40 shoes and I wear a 36. But that small amount of discomfort couldn’t get in the way of me taking on the challenge.”

Graciela showed a great deal of willingness to work. In the year 2000, she was working as a housekeeper. One day, she saw a woman in a helmet heading to the port, and asked her if they were hiring. “She said that she thought they were… I went right in to ask and it went well,” she explains. She started the application process on the spot and began to work for a contractor. She started her work at

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11 Cover story mental issues, notes how Tocopilla, the port and SQM offer many development opportunities to employees. “I joined SQM when I was 25 without knowing a lot about the Company, but I took on the challenge because of the opportunities and the platform that the position offered for working abroad,” he explains.

Only three months passed and the “hook” that Rodrigo came to Soqui for paid off.

A Planning and Analysis position in the United States opened up and he was chosen to take on the challenge. He didn’t think twice before deciding to leave Chile in December 2008. “I learned about port work from the perspective of the final client. My work included providing support to the Logistics Director, supervising the reception, storage, inventory and product quality. I also supported the Finance Director with financial management of the sales office.”

His time in the United States was rewarding, but he had personal business to attend to as well. A dedicated athlete and ambitious mountaineer, Rodrigo wanted to spend time traveling the world. He decided to leave the position and take a one-year sabbatical in 2011. “I wanted time to think about what I was going to do with my future. It turned out to be a very interesting adventure that brought me to travel through 20 countries in Europe and Asia by train,” he recalls.”

Frankie Pizarro in the studio at Radio Estación 80.

for medical reasons, and Tocopilla was a great choice. I came here with my mother, and then my father followed and found work in the port.”

Frankie Pizarro holds a degree in Mechanical Implementation Engineering from Universidad de Tarapacá and started his career with the Company in 2000 as a packaging assistant. He originally was paid as a consultant, but after one year he was hired to work as section assistant in the Quality Control Area.

“I have a lot of affection for the port and the company. I have been able to develop professionally,” he says. And he says that he took a huge step in 2007 when his supervisor’s position was vacated and he moved up from assistant to Quality Control Manager. “They chose me because of my performance and because I was familiar with my former boss’ work since we had been a good team,” he says.

The area’s mission, which runs parallel to the work that Mirta and Graciela do in Maritime and Land Operations, is to support storage, packaging and shipping processes, taking samples and conducting chemical analyses of the products. The results determine whether or not they meet the respective technical specifications.

“We shepherd the product from the time it arrives at the port until we ship it out.

We monitor it and test the product on the storage fields, in the packaging area and in shipping in order to ensure that there are no deviations and that we meet the clients’ needs.”

Frankie’s area issues quality certificates for the various commercial subsidiaries around the world as well as final clients, ensuring that the product is received in the same conditions as it was dispatched from the port.

Since 2014, he also has worked as the artistic director and broadcaster of his own radio station, Estación 80. The station, which is located at FM93.3, has local coverage. “We have made a lot of progress on talks that would allow us to reach other towns, including Sierra Gorda, Arica and Temuco,” he explains.

In March 2015 his name and station broke onto the local scene because of the extreme weather that struck Tocopilla, leading to a major flood. All of the local stations faced a black out except for Estación 80. “We started broadcasting at 5 a.m., telling the community what was happening and providing a bridge between the government officials and the local residents who were most affected by the situation. People called in from all over the city. That’s when I really got an idea of the social reach of the station.”

Over the past few years, the port has reported greater efficiency. Product exports have increased by over 200,000 tons since 2013.

One of the leaders of the port’s new era is Rodrigo Jasen, currently National Logistics Manager with SQM. Jasen, who is of Libyan descent and grew up in Talca before earning a degree in Industrial Engineering from UC with a focus on environ-

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SQM today

He returned to Chile in 2012 and worked as advisor to the Chief Executive Officer for the National Mining Company (ENAMI) on emblematic projects in the areas of production and finance. “Metal mining was attractive, but I completed a cycle with ENAMI. So I contacted a few people including friends from SQM, and I had the opportunity to meet with Daniel Pizarro, who was then Logistics Manager.

He told me about the Company’s decision to implement the Lean methodology.”

The port operation was engaged in the diagnostics stage for starting the introduction of M1. Given his interest, energy and experience, Rodrigo was chosen to lead the implementation of this new methodology in the port in 2014, taking on the position of M1 Logistics Project Director.

This experience allowed him to understand the international breadth of Soqui logistics, which is crucial for undertaking a new challenge: leadership of the National Logistics Management Office.

After spending one year in this position, his work is focused on generating and ensuring operational continuity in the port. He also focuses on the execution of key projects and endeavors to empower each of the leaders and promote team work, providing new opportunities for growth.

The 300-plus employees who run the Tocopilla Port, including Rodrigo, Frankie, Graciela, Jorge and Mirta, see a promising future on the horizon.

Rodrigo Jasen on one of his trips, which included visits to Europe and Asia.

12 M1

ORDER AND CLEANLINESS IN SERVICE OF PRODUCTION

“MCKINSEY REPORTS ON ITS LEAN EXPERIENCE WITH SQM”

M1 MOVES FORWARD IN SANTIAGO

The implementation of M1 in Salar de Atacama has yielded concrete results in the Lithium Mop 1 patio, which is part of the Mining Production Unit. Thanks to the development of 5S, loading time for trucks was reduced from 25 to 5 minutes and storage warehouses were reorganized for equipment and gear. In addition, 9 cubic meters of unnecessary equipment was eliminated from the 18 warehouses.

“Mining for leadership with Lean management” is the title of the report in the McKinsey newsletter, which features interviews with three of our Senior Vice Presidents: Juan Carlos Barrera, Carlos Díaz and José Miguel Berguño. The piece explains how M1 has transformed SQM in terms of development and giving new meaning to the work and our people.

The Comptrollership, Tax Unit, Compensation and Organizational Development Offices started to implement M1 in November 2016, becoming the first units from the Corporate Services Division to adopt the Lean methodology. They have gathered information, set their indicators, started the performance dialogues and created standards in order to improve their internal processes.

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13 In focus WOMEN’S DAY During the first half of May, all of the Company’s sites and offices celebrated International Women’s Day. Soqui’s women were celebrated and pampered with manicures, massages and gifts. Women represent over 16% of SQM’s staff, which is nearly double the industry average in Chile.

CHILE’S NATIONAL TEAM AT WORK All of the sites were decked out in red during the FIFA competition in April. Screams, applause and lots of CHILE cheers could be heard during the broadcasts.

Though they were disappointed by the results of the game against Argentina in Buenos Aires and felt like the score should have been higher in the match against Venezuela in Santiago, our team is positioned for direct qualification and the dream of Russia 2018 is closer every day. As always, the SQM team will continue to suffer and cheer with Chile’s national team …hopefully for its third consecutive World Cup appearance!

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SQM today

13 In focus ON THE MOVE Athletes are taking over Chile’s streets, gyms and parks, and SQM is part of the trend. Employees from various sites have been participating without their helmets or gloves in an effort to shake off the work day and renew their energy. In addition, the Soqui Runners were spotted at the Entel Marathon held in April.

1. Each night, singles players headed to the main court to compete in the MarĂ­a Elena Open.

2. Juan Yong, a labor relations analyst from Antofagasta, competed in the Entel Marathon in Santiago.

3. Employees practice Crossfit to stay in shape at Guggenheim.

4. Cynthia Maulen beat her personal record by 17 minutes and hopes to take it further.

5. Salar de Atacama treadmills receive dozens of visitors who aim to stay in shape and live a healthy lifestyle.

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6. Mario Salgado is a regular at these competitions. He beat his personal record by 17 seconds this time.

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14 Community notes

WINE FROM THE DRIEST DESERT IN THE WORLD

By Mauricio Olivares

With performances by local artists, handicrafts shows and a tasting of Ayllu wines and local delicacies, the fifth version of the Toconoa Harvest Festival was held. This community initiative is promoted by SQM and its Atacama Tierra Fértil Program in collaboration with the Municipality of San Pedro de Atacama and INDAP, the Chilean Institute of Agricultural Development.

Ayllu wine has allowed farmers’ families to benefit from the opportunities provided by the musts.

Toconao Plaza hosted over 2,000 people who tasted the wines that Ayllu residents produced last year. This brand stands out because its grapes are harvested at over 2,400 meters above sea level in the driest desert in the world.

The event, which highlighted Lickan Antai culture, was led by San Pedro de Atacama Mayor Aliro Catur; INDAP National Director Octavio Sotomayor; SQM Sustainability Manager Pablo Pisani; El Loa Province Governor Claudio Lagos; the region’s representative from the Ministry of Agriculture, Jaime Pinto, and Regional Counselor (CORE), Sandra Pastene.

“This is a cultural space that highlights the work of our people and draws on the traditions of the Atacaman people,” said Aliro Catur, Mayor of San Pedro de Atacama, who noted that there are already agreements with various municipalities in the country that will exhibit and promote the flavor and quality of Ayllu wine.

In addition to the 12 wine producers, the celebration featured 60 stands stocked with agricultural, gourmet food, handicrafts and local delicacies including offerings from enterprises that draw on Lickan Antai culture from Toconao, Talabre, Socaire, Talabre, Camar, Peine, San Pedro de Atacama and Río Grande.

INDAP Director Octavio Sotomayor reiterated the government’s commitment to supporting Toconao’s farming activities as well as those of neighboring communities. “We will work with organizations like SQM and local and regional governments in order to continue to support the development of this area along with tourism and local handicrafts,” he said.

SQM’s Sustainability Manager Pablo Pisani noted that the first harvest took place eight years ago and totaled just over 7,000 bottles. “We supported this initiative from the beginning. The farmers made it clear that it was necessary, and we are committed to continuing to support it actively because we are proud to promote the Atacama Tierra Fértil Program.” This program provides technical support through a multidisciplinary team of advisors in sustainable rural development: agronomists, viticulturists, experts in terroir and enologists.

Over 9,000 bottles of Ayllu wine, from different varieties were produced in 2016.

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SQM today

This initiative has been promoted by our Company since 2008 in order to work with the communities near Salar de Atacama on agricultural development. This sustainable, innovative and profitable plan seeks to improve household incomes, creating enterprises in harmony with the inhabitants’ traditional economy.

Rosa Zuleta is 62 years old and is one of the Ayllu wine growers.

She works on the project with her husband, Angel Puca. ”This work has allowed us to raise and educate our two sons, who are almost finished with college,” Rosa says. “We will soon have a contractor and a geologist in the family!”

She adds that she dreams of being able to create a cooperative and show her wines to the world.

14 Community notes Officials from San Pedro de Atacama and the surrounding areas with Ayllu wine producers inaugurating the 2017 Harvest Celebration.

Farmer Manuel Tejerina joined the Atacama Tierra Fértil Program in 2011 and recalls that he didn’t know anything about this type of crop at the time. “The support, training and knowledge provided were of paramount importance,” he says.

Manuel is proud of what he has accomplished. “This is a matter of exclusivity. It is a natural wine in its essence, without chemicals or additives, made in the world’s driest desert at 2,459 meters above sea level. It is unique in Chile and the world.”

Nearly 2,000 people attended the event and were treated to tastings of Syrah, Pinot Noir, Malbec, Petit Verdot and Chardonnay selections obtained from 20,219 plants in Toconao, Celeste and San Pedro de Atacama. They tasted white varieties and the País Negra variety, which dates back to colonial times when it was the first wine grape grown in Chile, a testament to the area’s winemaking tradition.

Total production in 2015 was 7,500 bottles; that number increased to 9,000 last year. This reveals the sustainable and sustained growth of the product as well as the professional ongoing work that seeks to generate greater production using old vines and optimal yields in younger ones.

15 Northern memory SOQUI FAMILY TRADITION Over 20 years have passed since this picture was taken in San Pedro de Atacama. It captures the family of Antonio Cruz Tejerina (first from left to right), a Salar de Atacama operator who has been with the Company for 11 years.

Antonio and all of his siblings inherited the mining tradition from their father. He worked in various contractor companies for many years. Three of them now work at SQM Salar. Alfonso (33) has been with the Company for 11 years as a lead operator and Jaime (36) has been employed as a metallurgical technician since 2010.

“Once he met my mother, Benita Tejerina, my father never left Camar. That’s why he started to become interested in the mining sector. Our family has carried on his legacy.”

“This photograph shows our entire family during a visit to see our brother when he was completing his military service. We were always very close and came as often as we could. We could get together and travel from our home to San Pedro de Atacama,” recalls the leader of the HDPE area within the Vice Presidency of Lithium and Potassium Operations.

The Cruz Tejerina clan is from Camar, which sits 86 km from San Pedro de Atacama at over 8,000 meters above sea level. The town is known for its agriculture and livestock, and especially for its tranquility and beautiful landscapes.

“The whole family was born and raised here except for my father, Hilarión Cruz, who was born in El Toro, which is located in Susques in Jujuy Province. He and my grandmother traveled by land from Argentina to sell spices and other products to the residents of Toconao, Socaire and Camar. There they traded flour, semolina, corn, rice and pasta for clothing, fruit and vegetables,” Cruz explains.

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THEY ALREADY WON… WHAT ARE YOU WAITING FOR? In this edition, we present the new winners of the popular “Word Search” competition. SQM Today is proud to present prizes to seven children. That’s one per work site!

Every day there are more children who have received prizes and enjoy their jerseys and pictures.

We present the winners from the previous edition of our publication:

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2 1. Bastián, with his father, Kenny González.

2. Vicente poses in his new jersey with his family and dog Tomy.

3. Juan Pablo Olivares, of Antofagasta, poses with his family wearing the red jersey of the team he hopes to be part of one day

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Site

Winner

Employee

Salar de Atacama

Bastián González

Kenny González

Salar del Carmen

Estefany Maturana

Lidia Medrano

María Elena

Vicente Moya

Roberto Moya

Tocopilla

Agustina Muñoz

Oscar Muñoz

Nueva Victoria

Martín Vivanco

Johana Pérez

Antofagasta

Juan Pablo Olivares

David Olivares

Santiago

José Tomás Núñez

Pamela Julio

Don’t miss your chance!… Enter the SQM Today Word Search!

16 The use of...

Li2O

Lithium Oxide

THE WONDERS OF LITHIUM OXIDE

Do you know what the latest model Mercedes Benz, a Russian submarine and a space ship have in common? Do you know what 70% of the world’s lubricating greases share? We provide the answers to these questions and more about the origin and uses of a compound that contributes to improving our quality of life through the development of new technologies.

Since its discovery in 1817 by Swedish chemist Johan August Arfwedson, lithium and its derivatives have allowed for a series of new advances and technologies that have improved our lives.

It is used in the industrial and automotive spheres as well as medicine. Lithium and its derivatives are increasingly necessary for everyday life. Let’s learn about it.

Lithium hydroxide (LiOH)—also known as lithine or litina—is a clear white solid that has the capacity to absorb humidity from the air (hygroscopic) and is formed by water and lithium. The reaction from the oxide is: Li2O + H2O = 2 LiOH

In addition to being hygroscopic, which contributes to the purification of gases and absorption of carbon dioxide (a gram/hydroxide mol consumes 0.51/mol of carbon dioxide), a key factor in submarines and space ships. In fact, the reactors used in the Apollo 13 Lunar Excursion Module contained lithium hydroxide.

At a technical grade, lithium hydroxide is also adequate for industrial use in the production of ceramic enamels, lubricating greases and cements and adhesives in which it serves as a thickening agent that is water resistant and ideal for extreme load and temperature conditions. Nearly 70% of the lubricating grease made in the world contains lithium.

Look around and you will realize that you are surrounded by lithium!

Their origin is lithium-enriched brine that is obtained from the Salar de Atacama.

This reacts with sodium carbonate to produce lithium carbonate, a key compound for obtaining lithium hydroxide.

At our Salar del Carmen Plant, which is located 27 km from Antofagasta, lithium carbonate chemically reacts to calcium hydroxide to form LiOH, at a technical or battery grade. The latter is a better-quality product and is lighter in its molecular mass (23.95 g/mol) and density (1.46 g/cm), with fewer impurities and low sodium levels. This greater purity allows for optimal thermal energy transfer and better electrolyte storage for efficiency in rechargeable batteries for cell phones, laptops and other portable electronic devices. The batteries of new models of electric and hybrid vehicles base their operation on this type of chemical compound.

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SQM today

A pollo 13 and submarines contain lithium hydroxide, which is used to purify gases (absorbing the CO2).

17 Mining for fun

Cut here and submit...

Children’s Contest

WORD SEARCH… 1.

What was strengthened at SQM?

2. Where did SQM play a leading role?

3. What do the pampa recyclers call their trips?

4. Where are the threads of the desert?

5. Jubitza works in a…

6. From where does SQM reach the world?

7. What is used in space ships?

Children under 14 years of age may participate. Find the seven answers in the word search and submit it along with your information by Friday, June 23 at your site’s Human Resources Office.

You could win a Chilean national team jersey or a set of Alex paints!

C M J P I C D S L S T D M A H V N A N T

R P X N N H U W C J K X U L K T O K L N

I T Z H F L N P D K R O T N P J F C I V

M K C B K R O J I N U G A S A Z T B T X

E Y M L E B T B C I M J P A D L D U H T

P R B C C R M U J F M A M Q O B L S I B

Full Name

Address

Employee Name

City

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Phone

R I X A R G L E X N A C H T K X A Z U R

E J I M U X L I D L G U S K N M B H M C

V U L A Q A I A N I I X L P C S O D H V

E F U L R R K V P J N N D O M J R C Y N

N A B E M U H E L L G W O R L D A X D L

T H C O Ñ A C N U U I P N Z X L T G R A

I U B N U E M T Z R N R D J P A O S O V

O X I Q N R D U K N G B I Q N C R H X P

N U A U T O C O P I L L A M J I Y X I X

M I A B U D H A B I S T Z P S D O O D O

O P R D C J L O M T X O T N R C S N E I

D Z L J Z G R I O C O H S I D X U A L N

E H Q D X O N S F K D Z U L O B T C O R

L L X E L E T D R Q V X J A N T O Z M T

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This image from 1939 is from an advertising campaign that was widely disseminated in Brazil—currently one of the top importers of our nutrients—and was part of a campaign that was deployed worldwide during the 20th century to promote the nitrates industry and counter the competition faced by our country’s star product.

This major national marketing effort was a public-private initiative designed to counter the effects of World War I and World War II. During those decades, agricultural consumption of nitrates dropped dramatically and ammonium sulfate appeared, which had a greater proportion of nitrogen per kilo.