Chilean pulp and paper producer CMPC has received preliminary environmental approval for its planned Natureza pulp project in southern Brazil, advancing a proposed R$27 billion investment that includes a new eucalyptus pulp mill and export infrastructure.
The licence was formally presented on October 23, 2026, by the government of Rio Grande do Sul, following an environmental assessment by the state's environmental protection agency, Fepam. The new facility is planned for Barra do Ribeiro, near Porto Alegre, while CMPC's existing Guaíba mill will remain in operation.
Major investment in pulp capacity and logistics
According to Fepam, the proposed mill is designed to produce 3 million tonnes of bleached eucalyptus kraft pulp annually. CMPC's published project information, however, lists an additional 2.5 million tonnes of annual capacity. The October 23 licensing announcement does not explain the difference.
The R$27 billion project includes logistics infrastructure to support pulp exports, notably a dedicated terminal at the Port of Rio Grande, representing an estimated R$1.5 billion investment. The proposed transport network would combine road deliveries of wood and industrial supplies with waterway connections for pulp shipments.
The mill's design also incorporates chemical recovery and electricity generation from black liquor. According to the state government, the facility is expected to generate enough energy to meet its operating requirements, with potential surplus electricity supplied to Brazil's national grid.
Construction could employ up to 12,000 workers at its peak. If the project proceeds to operation, it is expected to support approximately 800 direct jobs and 1,500 permanent contractor positions. These figures remain projections dependent on the development moving forward.
Further approvals required before construction
The preliminary licence, known in Brazil as a Licença Prévia, establishes the project's environmental viability at the planning stage and sets conditions for subsequent approvals.
It does not authorize construction or operation. CMPC must obtain an installation licence before construction can begin, followed by an operating licence before production starts.
Fepam's assessment included environmental impact studies, a public hearing held on January 29, 2026, and a period for public submissions.
The licensing process has also faced legal challenges. In May, Brazil's Federal Public Prosecutor's Office filed a civil action concerning the right to prior consultation of potentially affected Indigenous, quilombola and artisanal fishing communities. According to Brazilian court reporting, judicial decisions in July and September declined requests to suspend the licensing process, allowing it to continue without resolving the underlying dispute.
CMPC can now advance the engineering and environmental documentation required for the next licensing stage, subject to further regulatory review.
The preliminary approval represents an important milestone for one of Brazil's largest proposed pulp investments, although construction and commissioning remain dependent on additional authorizations and project decisions.
