Arauco is a privately held company fully owned by Empresas Copec S.A. (“Copec”), a Chilean conglomerate with operations in energy and natural resources. Copec is indirectly controlled by the Angelini family, which holds a combined 45.3% stake through various entities. Other shareholders include the Matte Group, free float shareholders on the public exchange, pension funds, and other private investors. 

Total project cost is estimated at approximately US$4.6 billion for the pulp mill, with additional potential investments related to forestry and other associated facilities. The proposed IFC investment consists of an A Loan of up to US$250 million and a B Loan of up to US$350 million.                                   

The pulp mill will be located in the municipality of Inocencia, Mato Grosso do Sul, Brazil.                                               

This is a Category A project under IFC’s Policy on Environmental and Social Sustainability (2012), due to the potential for significant adverse environmental and social (E&S) risks and impacts that are diverse, sensitive, and potentially irreversible. Key risks include: (i) the company's management and monitoring systems to assess and manage E&S risks and impacts from the construction and operation of the facilities covered under the project; (ii) worker influx and associated pressures on community health, safety, and public services; (iii) potential impacts on biodiversity and legally protected or priority conservation areas; (iv) sustainability of water use and potential effects on ecosystem services; (v) road safety and community risks related to wood transport logistics; (vi) risks of GBV and SEAH; (vii) monitoring and management of air emissions, waste and wastewater and hazardous materials; (viii) land acquisition and potential physical and economic displacement; and (ix) management of labor and working conditions and occupational health and safety (OHS) policies and practices, particularly among contractors and subcontractors, (x) emergency planning and response.