Uruguay paper mills run into trouble

A new investor briefing by the Center for Human Rights and the Environment (CEDHA) of Argentina and BankTrack warns investors of the risks associated with getting involved in the financing of two paper mills in Uruguay.

ENCE of Spain and Botnia of Finland, two of the largest paper pulp producers in the world, are slated to make an investment in  Uruguay of nearly 2 billion US dollars, to create what would be the world’s largest existing pulp production enterprise.

According to CEDHA, the two planned plants will cause numerous environmental and social problems such as the pollution of potable water sources and increase of health problems as a result of the release of toxics, destruction of local tourism due to contamination and foul smell and uprooting of communities and loss of biodiversity as a result of expansion of eucalyptus plantations.

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