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Home › Dodgy Deals ›
Dodgy Deal
MAPA projectChile

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Contact:

nature@banktrack.org

Last update: 2021-05-10 00:00:00
Arauco's Horcones pulp mill complex. Photo: Matt Hinsa via Flickr (BY NC ND 2.0)

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Contact:

nature@banktrack.org

Last update: 2021-05-10 00:00:00
Why this profile?

Why this profile?

In 2018, Chilean pulp producer Arauco announced it would proceed with its MAPA project, which includes building a new pulp mill line at its Horcones mill. This will intensify the social and environmental impacts already caused by Arauco's plantations. It may also further fuel the conflict between forestry companies in general and the Mapuche people, over access to land. Furtermore, the additional plantations required to feed the mill will increase the risk of wild fires.

What must happen

International banks and other financial institutions should refrain from providing funds or support for the construction of the MAPA project, until Arauco transparently shares:

  • Written proof that it obtained Free, Prior and Informed Consent from affected communities;
  • Credible figures proving without reasonable doubt that the company has enough wood fibre to feed all its plants for the coming years, worldwide, factoring in the potential risk of plantation area reduction due to fires and climate change;
  • A written compromise to not engage the local police into raids against Mapuche families or communities revindicating their civil right of land usage.
  • Plans to change the company’s forestry model to one that can play an important role in achieving the Sustainable Development Goals; that implements an inclusive landscape approach; respects and takes into account the collective necessities and aspirations of all stakeholders; addresses, prevents and mitigates negative externalities; contributes to reduce and mitigate the impacts of climate change and protects biodiversity.
About
Sectors Pulp, Paper and Paperboard Mills
Location
Status
Planning
Design
Agreement
Construction
Operation
Closure
Decommission

Arauco’s plan to expand its Horcones complex is called Proyecto Modernizacion y Ampliacion Planta Arauco. The complex already has two pulp lines: Arauco I (0.28 million tonnes per year) and Arauco II (0.51 million tonnes per year). The MAPA project will add a third pulp line to this complex, with a production capacity of 1.56 million tonnes. The project also includes de-activation of the Arauco I pulp line and modernizing the Arauco II line. The end capacity will be 2.1 million tonnes per year. The project is expected to cost USD 2.35 billion.

The project also includes a new forest biomass-fuelled power plant and a Power Transmission Line which will provide a maximum of 166MW of surplus energy to the Central Interconnected System (SIC), as well as a wind power park with 82-123MW capacity and a new tree nursery.

This project is problematic because it will increase the demand for timber, and therefore it will lead to the expansion of plantations in the region, further intensifying the strong impact these already have. It will also increase the emission of toxic compounds, such as dioxins and furans.

Impacts

Social and human rights impacts

The MAPA project is expected to increase the demand for wood fibre and therefore lead to the expansion of monoculture pine or eucalyptus plantations in the region. These plantations are already causing tense land conflicts, impacting water availability for nearby communities, and they enable wild fires. Furthermore, the project is expected to cause water and air pollution. The wastewater will be discharged into the sea. Local fishermen already complain about a reduced fish stock because of the wastewater from the Arauco I and II lines, and they expect the impacts to worsen with the Arauco III line.

Land conflicts Arauco has a long history of involvement in land conflicts in Chile, which dates back to the 1970s, when the military dictatorship decided to distribute hundreds of thousands of hectares to plantation companies, without consulting or compensating the traditional owners of these lands, many of which were Indigenous Mapuche people.

After Chile returned to democracy, the Mapuche have started to revendicate the return of their lands. This has led to strong tensions between the Mapuche and plantation companies including Arauco, to which the government responded by militarizing certain regions, leaving little space for dialogue. The MAPA project will lead to an expansion or more intense use of its plantations, which is expected to intensify these conflicts.

FPIC There are 35,000 indigenous people living in the village of Arauco, yet the Environmental Impact Assessment for the MAPA project states that no indigenous communities will be affected by the expansion project. Five Mapuche communities that live nearby the Horcones complex took the government to court for approving Arauco's flawed EIA that did not obtain the legally required FPIC.

Evictions The militarization of the land conflicts has caused a number of human rights violations. In April 2019, for example, special police forces used tear gas to try to evict mapuche families of the comunity lof Rali Cura from their ancestral lands. They were acting on an eviction order requested by Forestal Arauco, which according to the community members was not signed by an authorised judge. In March 2018, a Mapuche family was evicted in Los Alámos, by special police forces and Arauco employees, which destroyed their houses.


Environmental and climate impacts

Plantations The Environmental Impact Assessment for the MAPA project did not take into consideration the impact of the plantations that the new pulp mill will require. Since the capacity of the Horcones will more than double, either the area of the plantations will need to increase, or their productivity.

The expansion of plantations often goes paired with deforestation and loss of biodiversity. But Arauco seems to be planning to improve the productivity of its plantations, by substituting a large part of its pinus plantations by the faster growing eucalyptus. This will especially increase the impact on both ground and surface water levels, as the faster growing eucalyptus consume more water. Dryer areas are in turn more susceptible to fires.

In January 2017, a wave of fires devastated an more than 600,000 hectares of scrubland, plantation forests, agricultural land, native forests and homes devastated in what is thought to be the worst episode of forest fires in Chile’s recent history. It affected thousands of people. Eleven people died in the blazes, and thousands of people were evacuated from their homes. Entire communities were razed to the ground. Chile’s capital, Santiago, several hundred miles away, was shrouded in haze. In 2019, three regions in Chile declared the ‘state of catastrophe’ because of wild fires.

Pollution The discharge of wastewater from the mill into the sea is likely to have a negative impact on the local marine biodiversity.


Other impacts

Fibre sourcing Charles Kimber, corporate and financial manager of Arauco, has stated that to supply MAPA, they might use part of the 7.5 million cubic meters of euclyptus chips that are now being exported to China every year. If this happens, China is likely to look for new sources of wood chips, to meet its demands, creating pressures on other regions.

Financiers

For an overview of financial institutions financing Arauco, please see the company's profile here.

Institution type
Finance type
Year
Companies

Project sponsor

Arauco

Chile
Profile
Website
No companies

Other companies

Andritz

Austria

Empresas Copec

Chile
Website

Grupo Saesa

Chile
Website

Valmet

Finland
Website
No companies
Governance
Norms & standards

Applicable norms and standards

AFLEG Declaration and Action Plan
FSC Principles and Criteria
ILO Guidelines for labour inspection in forestry
ILO Safety and health in forestry work
International Labour Organization Convention 169
Land Use, Land-Use Change, and Forestry (LULUCF) Guidance for GHG Project Accounting
United Nations Declaration on the Rights of Indigenous Peoples
WWF Guidelines for Investment in Operations that Impact Forests
News
BankTrack
Partners
Blog
External
BankTrack news BankTrack blog Partner news Partner blog

Conflict and controversy swirl around Vanguard investments in Chilean pulp giant Arauco

2024-07-23 | Chile | iofuelwatch, the Environmental Paper Network (EPN), Global Justice Ecology Project, the Global Forest Coalition (GFC), Resumen.
BankTrack news BankTrack blog Partner news Partner blog

International Rights of Nature Tribunal rules impacts caused by current forestry model as ecocide

2024-02-06 | International Rights of Nature Tribunal
BankTrack news BankTrack blog Partner news Partner blog

Arauco to complete MAPA pulp mill expansion in October 2021

2021-05-10 | EUWID
BankTrack news BankTrack blog Partner news Partner blog

Confronting the impacts of the plantation forestry model in Chile

2020-09-26 | Global Forest Coalition
BankTrack news BankTrack blog Partner news Partner blog

Pobladores/as se toman terrenos de Forestal Arauco en Laraquete

2020-03-12 | Resumen.cl
BankTrack news BankTrack blog Partner news Partner blog

Arauco’s Horcones pulp mill stops due to strike

2019-10-09 | Chile | Risi
BankTrack news BankTrack blog Partner news Partner blog

6° cápsula de "Voces Territoriales Frente al Proyecto M.A.P.A - Ana Lincura

Capsule 3: Territorial voices in front of the MAPA project - Ana Lincura
2019-09-16 | Chile | Colectivo Ojo de Treile, OLCA
BankTrack news BankTrack blog Partner news Partner blog

5° cápsula de "Voces Territoriales Frente al Proyecto M.A.P.A."

2019-08-18 | Chile | Colectivo Ojo de Treile, OLCA
BankTrack news BankTrack blog Partner news Partner blog

4° cápsula de "Voces Territoriales Frente al Proyecto M.A.P.A."

Chapter 4 of "Territorial Voices Against the Project M.A.P.A."
2019-08-04 | Chile | Colectivo Ojo de Treile, OLCA
BankTrack news BankTrack blog Partner news Partner blog

Cápsula 3: Voces territoriales frente al proyecto MAPA. Sandra Bundaleo

Capsule 3: Territorial voices in front of the MAPA project. Sandra Bundaleo
2019-07-22 | Chile | Colectivo Ojo de Treile, OLCA
BankTrack news BankTrack blog Partner news Partner blog

Cápsula 2: Voces territoriales frente al proyecto MAPA. Teodoro Leal

Chapter 2: Territorial voices in front of the MAPA project. Theodore Loyal
2019-07-07 | Chile | Colectivo Ojo de Treile, OLCA
BankTrack news BankTrack blog Partner news Partner blog

ANDRITZ receives long-term maintenance and service contract for Arauco’s MAPA project in Chile

2019-06-25 | Chile | Andritz
BankTrack news BankTrack blog Partner news Partner blog

Cápsula 1: Voces territoriales frente al proyecto MAPA -Nolberto Sangueza

Chapture 1: Territorial voices against the MAPA project - Nolberto Sangueza
2019-06-23 | Chile | Colectivo Ojo de Treile, OLCA
BankTrack news BankTrack blog Partner news Partner blog

Chilean pulp mill’s major expansion could fuel conflicts

2019-06-13 | Environmental Paper Network
BankTrack news BankTrack blog Partner news Partner blog

La resistencia de la Comunidad Lavkenche de Yani, lov Rali Cura, frente a la Forestal

The resistance of the Lavkenche Community of Yani, lov Rali Cura, facing the forestry company (in Spanish)
2019-04-24 | Chile | Radiokurruf.org
BankTrack news BankTrack blog Partner news Partner blog

Valmet to deliver key pulp mill technology for ARAUCO's new pulp line in Chile

2018-12-19 | Chile | Valmet
BankTrack news BankTrack blog Partner news Partner blog

MAPA "no tiene vuelta atrás": Arauco ya adquirió millonaria maquinaria

MAPA "has no turning back": Arauco has already acquired machinery that costed millions
2018-10-16 | Chile | Tvu.cl
BankTrack news BankTrack blog Partner news Partner blog

Valmet to supply key pulp mill technology for ARAUCO pulp mill project in Chile

2018-10-03 | GlobeNewswire.com
BankTrack news BankTrack blog Partner news Partner blog

ANDRITZ to supply major equipment for ARAUCO’s MAPA project

2018-10-02 | Andritz press release
BankTrack news BankTrack blog Partner news Partner blog

ARAUCO approves US$2.35 billion construction of MAPA

2018-07-25 | Bioenergyinternational.com
BankTrack news BankTrack blog Partner news Partner blog

Comunidades mapuche acudirán a Tribunal Ambiental por proyecto MAPA de forestal Arauco

2015-12-21 | Chile | Biobio Chile
BankTrack news BankTrack blog Partner news Partner blog

VERGONZOSO: Gobierno corre a apoyar a forestal Arauco y valida fraudulenta Consulta Indígena de proyecto MAPA

2014-11-19 | Chile | Radio del Mar
BankTrack news BankTrack blog Partner news Partner blog

Comunidad mapuche va a la justicia para frenar proyecto de Arauco

2014-04-15 | Chile | La Tercera
Resources
Documents
Videos
Links
2018-11-01 00:00:00

A burning issue

Large scale industrial tree plantationsand climate change
NGO document
2018-11-01 00:00:00 | EPN
2014-02-28 00:00:00

Environmental Impact Assessment MAPA project

Other document
2014-02-28 00:00:00 | Servicio de Evaluacion Ambiental
2018-03-31 00:00:00

Minuta observación de caso: Desalojo Familia Paine Antileo

Detailed case analysis: the eviction of the Paine Antilea Familiy (in Spanish)
Other document
2018-03-31 00:00:00 | Chilean National Institute on Human Rights
2015-09-30 00:00:00

Proyecto MAPA 2013-2015

Briefing for Senator Víctor Pérez Varela
Other document
2015-09-30 00:00:00 | ConsultoraBioBioSur
2018-03-31 00:00:00

Sustainability Report 2017

Annual report
2018-03-31 00:00:00 | Arauco
2017-05-29 00:00:00

Supreme Court's Decision

Other document
2017-05-29 00:00:00 | Ministro de Fe de la Excma. Corte Suprema

Incendios Forestales en Chile - ¿Lección aprendida?

2020-03-12 08:36:20

Map of MAPA project

Plantar Pobreza

OLCA

No al Ducto

Coletivo Viento Sur

EIA for the MAPA project

Resumen - articles about the MAPA project

FSC Watch

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