[ad_1]
Patricio Solminihac is excited. The historic executive of the SQM, which announced Wednesday its departure from the nonmetallic miner after 31 years of career, has experienced two situations that have moved him. When he badumed the general management of the company, in March 2015, he shared the Las Condes office elevator with a worker who thanked him and gave him the congratulated on his appointment. Last Thursday, the same thing happened to another employee who devoted a few words in the short time that it took to reach the 6th floor of the building. "That excites me," says Patricio de Solminihac
And it's his decision to leave the company, which had already been taken for a few months and who knew only a small group of executives and directors of the company, who treated her. manage in such a way as to affect the mining company's position as little as possible in the market and also have a quiet and orderly transition with his working partner for two decades and his friend Ricardo Ramos, his natural successor, as he himself points out. .
Although his departure materializes on December 31, De Solminihac anticipates that he wants to devote himself to his family and his own business and that the time he had to run the company was "Intense and stimulating". Remember the negotiations that he had with Eduardo Bitran and Corfo for the contract in the Salar de Atacama, a conflict that he always thought to be solved. "That's why I told investors: this will be solved," he tells in his office on the sixth floor of El Trovador Street. And as a goodbye dares to make a bet: in 2030, SQM will be better able to win back the Salar concession, when Corfo will have to launch a new call for tenders.
Why did he resign? [19659002] I have completed a stage. I have been with the company for 31 years and a lot has happened. These three and a half years have been intense and challenging and now I want to continue doing other things and spend more time with my family.
Why do you announce it five months in advance?
To make a good transition with Ricardo Ramos, and the signal was very well received by the market. We have seen in the first badyzes that were published after the announcement, which shows the normality and that after this decision, there is nothing special, like that, the council is upset by me or I am angry at the council.
Was there any inconvenience on your part in the board's decision to accept Julio Ponce as counselor?
My decision has nothing to do with this event. It was an idea of the board of directors, and with respect to the position of the administration, we were consulted about it and we found that Eugenio and Julio were well acquainted with the society. They played a very important role in what SQM was doing and they played an important role in what was accomplished. In the case of Eugenio, he was the architect of internationalizing the company and propelled all commercial development. In the case of Julio, he possesses great technological knowledge, he has made a great contribution in the field of processes and, of course, in the direction of the board of directors when he directed it. . Our opinion was that they were very skilled and had the characteristics to be able to help the company.
Did not it bother you that Julio Ponce came back after all that the company had to do with Corfo?
This was an badysis that the council did. It was up to us to comment on the knowledge and characteristics that they had and we did
Does this exclude a break between the administration and the commission following this question?
Yes. 19659002] Are you exhausted by the exposure you have suffered because of the controversies in which SQM was involved?
These are very difficult times, but you must differentiate the administration from the crisis negotiating the contract with Corfo, with the fact that the team was able to maintain the development of the company. business and continue to grow. Our results guarantee it! The company continued to grow and during this period we were able to design a development strategy and make a dream come true. For me, it was very important that the organization manages the crisis and encapsulates it so that the company focuses on what it can do and it works
Are you going?
I am calm and that is C & # 39; s why I think I have accomplished a step. We've had enough success and we've made mistakes too, as everyone else does, but I'm definitely very calm because the successes have been so much more than the mistakes.
Regarding errors, SQM learned lesson
I did not refer to these errors, but it is obviously very important to learn from them.
SQM still has a negative charge, did it still have to improve?
The company has many attributes to know. We made a mistake in those 30 years: not being able to communicate more about what we were doing. It's a great company. We sell in 115 countries, which Chilean company can say that? With our drums and bags and with our logistics, we reach each of our customers on five continents. We have a challenge and we have made a plan, however, things do not change overnight, but I am convinced that it will be imposed.
The council was afraid that Eugenio Ponce, being out of the SQM, would go out to the competition. The same fear did not exist with you?
I have a non-compete commitment for five years, but I would not have done it either.
When you reported your departure, did the directory offer you? counselor?
No, because I have already completed a stage. I want to do other things. What I do, I will be available to answer questions from the chairman of the board of directors (Alberto Salas) and the general manager (Ricardo Ramos), with whom I have a whole story. The transition with Ricardo will be very easy because he has worked directly with me over the last 20 years and we have developed the whole strategy together. That was the second one, it's the one who replaces me when I'm not there or when I'm traveling or on vacation. He was the natural replacement
Did you have everything ready to resign?
When I left as General Manager, I worried about developing a succession plan. This is a natural and minimal responsibility for a leader. We are very lucky that people like to work here. Virtually no one left with the crisis
And what will he do now?
I have my business. I am a director of other companies and family business
AGREEMENT WITH CORFO
Who folded the hand to whom between Corfo and SQM?
Nobody. What happened is that they were in a very strong bargaining position, they had the basis of the previous agreement with Albemarle and they managed to do something that is very good for the country, and for Corfo and SQM too
What is your opinion on what happened with Eduardo Bitran and the contract when the role of counselor of the Ponce brothers was discussed?
I personally negotiated with Eduardo Bitran the contract for everything regarding the modifications were made and in relation to the agreement that was concluded in collaboration with the arbitrator, so, first of all, there is nothing hidden here. The contract is quite transparent and clear. It was difficult for us, because we had to yield a lot of things from the contractual point of view, but finally a contract was concluded that is very good for the country, for Corfo and for us, because it allows us to continue to develop an activity that we have 20 years old and where we have shown that we are the leaders of the world.
Has there not been some kind of "hands-on" Eduardo Bitran in the decision to appoint the Ponce brothers as advisers? [19659002] These are independent things and the contract is very clear. In addition, with Corfo, we worked very hard to implement it. We have established a specialized internal unit whose sole purpose is to administer the contract to ensure that we provide all information and details of timely rent calculations to Corfo.
When did this start? to operate this new unit?
When they defined how they were going to be all the obligations, we put a manager in charge of that and the director had already in March his complete team (five people) and had started the implementation and the functioning of all this. We, without going further, tomorrow (Friday) we will make the first payment corresponding to the previous quarter with new formulas and new requirements.
How much will you pay with this new modality?
It's arithmetic, it's public how much we produce and the contract is public. But from an economic point of view, the payment we are going to make for a quarter will be about 45 million US dollars, a figure significantly higher than the one we paid before, which was in the order of 12 million US dollars.
Should the amount increase over time?
If the price of lithium contracts decreases, the amount decreases a little, but in relation to the volume, it will increase significantly according to the plans of
Was it vital for the company to conclude the agreement with Corfo?
Not vital, but this contract is very important. The company is characterized by its diversification and even if it is true that we benefit from the growth of the lithium market, we do not forget the other companies where we are and where we occupy positions of leadership. important, such as iodine and potbadium nitrate and how are solar salts and industrial chemicals. And we continue like that, the investment plan proves it.
But today, the company is worth double thanks to this contract?
Certainly, the contract is very important to us. That's why I've always told investors: this will be solved because the incentives were aligned for that. That's why a solution had to be found. It was logical. It took longer than I would have hoped or wanted, but it arrived as planned
How long did I hope the conflict would spread?
I thought we could have solved it before I left. One can have differences and for that there are the arbitration clauses, where a third party sees it, but that does not have to be published in the newspaper. In this case, we are convinced that there were no differences, and if we use the argument of Corfo, we pay more during the whole period, then, more bona fide impossible! And I say it with a lot of goods. I have been personally responsible for this relationship with Corfo since the beginning and throughout this period that began in 1993 and beyond. They do not tell me stories
And why has it spread so much?
Well, for other reasons, the thing is politicized. Now, it is the story, the important thing is that it has been solved and we are working on these expansions at full speed. We are already finishing the first expansion to 70 thousand tons of lithium carbonate and we expect next year to advance in the next stage to reach 120 thousand tons. And we have already presented the environmental studies to follow a third stage of 180 000 tons
And what will it continue?
As in everything, when there is uncertainty, we must continue to have more information and adapt the plans. What we have to do is be prepared and that is what we do, have the permits, have the agreements with Corfo and the Cchen.
But the market requires more investment. [19659002] And that's why we produce as much as possible at full speed.
Will the Ramos Mission get the new tender for the Atacama Salar for the continuity of SQM after 2030? [19659002] We have the contract until the year 2030 and obviously before that we will have to see how Corfo will want continuity. This must be seen with time. I also think that SQM will be very well placed to continue
How relevant is it for the future of the company to stay at the Salar de Atacama?
This is important, but it will be less important in the future because of the further developments we are doing, but it is undoubtedly important and will continue to be important.
"MY FRIENDS HAVE MADE IT THE INTIMIDATION I went to a birthday and told me: Give a book
You said that none of the workers had a good time with the exposure they had to cope with. During this period, some workers suffered some kind of aggression?
We did not reached these extremes, but it is clear that there were jokes and bullying on the part of my friends.When I went to a birthday, they told me: "Leave a newsletter", and I They were not so often, thankfully.
Do not you still talk to Patricio Contesse? Was not the occasion given or wanted? not to converse with him?
I did not talk to him.It was a recommendation of the lawyers
Do you think that the fact that Patricio Contesse did not collaborate in l & # 39; in quest harms even more to the business?
meaning that he collaborated with all the investigation and with all the entities that corresponded to study it. In addition, we conducted an internal investigation according to the best practices that were done in the United States and it was demonstrated in all these investigations that there was no corruption and that it was there was an improper funding of the policy and finally, as defined the agreements with the Department of Justice and the SEC were problems where the expenses were not accounted for as expenses
Did you did you talk to Julio Ponce?
No. Julio, since he left the board, had no influence on the company. I put three conditions when I badumed the general direction, the first being that my arrival was a totally unanimous decision of all the directors and even that all the active shareholders were in agreement. Second, that I would understand the directory and that it was not reporting to a particular director or shareholder, but that the instructions came from the repertoire. And third, we would cooperate fully with all authorities in the investigation. The three conditions were very well met
And its relationship today with the new repertoire, how was it?
This is fine.
What is your opinion of Patricio Contesse Fica and his entry on the board of directors?
He is still a director and acts as such.
Do you think that Alberto Salas was a good name for the SQM presidency?
Alberto Salas has a great career. We are an active member of Sonami, so we interacted and enjoyed your career immensely. He has a great knowledge of the mining industry and has developed, in the last time, in the main business successfully, so I think it was a very good name and I think he's done very well.
Would you like to be a director of SQM next year?
No.
What is the value for SQM that Tianqi is a shareholder?
We were very happy and calm. Having had PCS as a shareholder, we had a lot of time and they were very supportive of the administration, so we regret that they leave. We know that it is not by personal decision, but forced. On the other hand, that Tianqi is ready to enter the business and is willing to pay what he has paid is a clear sign that we are an attractive industry and believe that we are very valuable. Now, Tianqi is our competitor, and if it is to materialize its entry, it is something we must administer.
Should the free market authorities impose requirements on their revenues?
No I know. This is an issue that is under study and we have to see how this ultimately happens, but regardless of that, from the business point of view, we must come up with a type of business. ;agreement.
Could SQM Take Risks? ]
I do not see so many risks, but I would not want to have to share my lithium strategy with a competitor. P
[ad_2]
Source link
