IFC’s proposed investment is to participate in the first phase of an ongoing greenfield eucalypts plantation project in Zambezia and Manica Provinces of Mozambique. This phase is estimated to cost up to $131 million, for which IFC would provide up to $25 million in equity. The proposed IFC investment will support the planting of up to 53,350 ha over the next three years and set the stage for a Phase-II investment.

These plantation areas fall within the 43 concessions, known as DUATs (“direito de uso e aproveitamento da terra” or land-use rights), totaling some 356,000 ha, granted to Portucel by the Mozambican government following a public consultation process in 2009. The Portucel investment was first approved in December 2009 by the Council of Ministers under Internal Resolution No. 7/2009. The purpose of the proposed project is for Portucel to build its capacity and test its forestry model in Mozambique including its ability to effectively engage communities and foster sustainable development.

Successful implementation of this first phase could result in a full-scale integrated industrial project including the establishment of an estimated additional 191,000 ha of plantations, construction of a million metric ton pulp mill and biomass power complex, and a port terminal in one of the Provinces. A decision about the precise location of the pulp mill and the ancillary installations will be taken during the first phase. Any such facilities and the full-scale afforestation project fall beyond the scope of the current IFC environmental and social review process and would necessitate additional E&S review and demonstrated compliance with applicable laws and IFC Performance Standards.

IFC will publish its own Environment & Social Review Summary at a later date.


Client’s Contact Information:

Portucel Mozambique and its environmental and social impact consultants, Impacto Lda., have made the full Environmental and Social Impact Reports available to the general public in Portuguese for the disclosure and public consultation phase regarding Portucel Mozambique''s proposed forestry projects in Zambézia and Manica Provinces of Mozambique. The reports in Portuguese are available via the following link: http://www.impacto.co.mz/relatorios.html

Please note that these are draft versions for purposes of public consultation, and they might be modified in their final versions. Portucel Mozambique contacts are as follows:

Dar-es-Salaam Street, 347-Maputo Mozambique
Tel: +258-21483645/6/7
Fax: +258-21489595
Pedro Moura: Administrator
Email: pedro.moura@portucelsoporcel.com