The environmental court of Antofagasta in Chile ordered Sociedad Quimica y Minera de Chile SA to temporarily and partially close the water extraction wells in the Salar de Llamara.
The company said Dec. 13 that the decision will impact its iodine production costs as well as the company's ability to reach the targeted production capacity of 14,000 tonnes per year of iodine that are under construction.
SQM is confident that it will be able to supply the future needs of the market.
"The company is analyzing this resolution, implementing both the suspension of the extractions and reporting requirements under such resolution and will use its best efforts to reverse this decision, which the company believes contains factual and legal errors," the company said.
SQM said it has the necessary systems and protocols in place to continue monitoring the environment in all the areas in which it operates.
