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The Elqui Valley is located in the DO Coquimbo region of Chile, about 300 miles north of Santiago. It is Chile's northernmost wine producing region which means, since they are in the southern hemisphere, it should be the warmest region. Parts of the region are certainly warm, but Chile is very mountainous, and many vineyards are located high in the Andes mountains, some as high as 6,500 feet above sea level. The altitude has a moderating influence on the climate and allows the grapes to receive more intense sunlight during the day. There is also a large diurnal temperature variation which allows many of the grapes to retain a high level of acidity while ripening fully, an important consideration for a grape with low natural acidity like Pedro Ximenez.
The grape is named after an almost certainly apocryphal Spanish soldier named Pedro Ximenez (or Pedro Siemens or something similar) who, according to the story, brought the grape back to Spain on his return from the Spanish Netherlands early in the 16th Century. It is very unlikely, though, that a grape that flourishes in the hot, southern Spanish climate would be of much use that far north. There also does not appear to be any grapes currently in that region of the world that resemble Pedro Ximenez, so the story itself isn't taken very seriously by wine researchers. The most likely origin for the grape is somewhere in the Canary Islands where the grape is still grown and made into mostly nondescript table wine.
There are large plantings of a grape called Pedro Gimenez in Argentina and Chile, but this grape is not thought to be related to Pedro Ximenez. Most of the grapes grown under the Giminez moniker are used in local table wines in Argentina or are distilled into Pisco in Chile. As far as I can tell, though, the bottle that I was able to get is actually from Pedro Ximenez and not from the lesser Gimenez variety. Pedro Jimenez is a frequent synonym for Pedro Ximenez in Chile, but my bottle definitely was labeled Ximenez (Pedro Ximenez Reserva, actually, though I don't believe that Reserva has any legal definition in Chile).
The producer for the bottle I picked up was
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