Cesar Perez-Navarro

Cesar Perez-Navarro requested an update on the Kwinana refinery ramp-up trajectory and a volume forecast for Mount Holland throughout 2026. He also inquired about the status of engineering studies and regulatory permits for the proposed Mount Holland mine and concentrator expansion, including the potential CapEx range, and an update on SQM's exploration activities in Australia and other international jurisdictions.

Answer

Mark Fones, CEO of the International Lithium Division, Sociedad Química y Minera de Chile, stated that the final investment decision for the Mount Holland mine and concentrator expansion is expected by mid-year, contingent on environmental approvals and engineering studies, with approximately $200 million allocated for the concentrator expansion in 2027. He confirmed Mount Holland's concentrator is producing at capacity, with SQM's 50% share expected to be 170,000-180,000 tons of spodumene concentrate (6%) in 2026. The Kwinana refinery ramp-up has been affected by intermittent odor issues, with a solution expected by mid-year, pushing the full ramp-up into 2027, allowing flexibility to sell profitable spodumene concentrate in the interim. Ricardo Ramos, Chief Executive Officer, Sociedad Química y Minera de Chile, detailed exploration efforts in Australia (four early exploration agreements, drilling at Mount Roberts and Northern Territory), Namibia (Stage 1 drilling with Andrada Mining, confirmed good grades and pegmatite bodies), and Canada (SQM Canada established last year, exploring own land).

Cesar Perez-Navarro requested an update on the Kwinana refinery ramp-up trajectory and a volume forecast for Mount Holland in 2026. He also asked about the status of engineering studies and regulatory permits for the Mount Holland mine and concentrator expansion, and the estimated CapEx range. His second question concerned an update on SQM's exploration activities in Australia and other international jurisdictions.

Answer

Mark Folz (Analyst, SQM Lithium International) clarified that the final investment decision for the Mount Holland mine and concentrator expansion is expected by mid-2026, with environmental approvals and engineering studies progressing well (over 30% advanced for the concentrator). He mentioned allocating around $200 million for this expansion in the 2025-2027 CapEx projection. For Mount Holland, he projected SQM's 50% share of spodumene concentrate production to be 170,000-180,000 tons (6%) in 2026. He noted the Kwinana refinery ramp-up has been affected by intermittent odor issues, pushing full ramp-up into 2027, leading to sales being heavily skewed towards spodumene concentrate in 2026. Regarding exploration, he detailed activities in Australia (4 earning agreements, drilling at Mount Roberts and Northern Territory), Namibia (stage 1 drilling with Andrada Mining, confirmed spodumene pegmatites), and Canada (SQM Canada exploring own land).