In 2025, IFC and IDB Invest approved a joint loan of $600 million and $250 million, respectively, to Chilean conglomerate Arauco for the construction of what would be one of the largest pulp mills in the world, located in Inocência, Mato Grosso do Sul, Brazil.

Arauco’s mill (Projeto Sucuriú) is a large-scale project with significant environmental and social impacts and risks. Both banks classified it in their highest environmental and social risk categories.

According to project documents, the total investment amounts to approximately $4.6 billion and aims to produce 5,000,000 tons of bleached eucalyptus cellulose per year. To achieve this output, the factory will require approximately 21 million tons of eucalyptus annually as its primary raw material, sourced from nearby plantations. Construction of the plant has already begun and is expected to last up to 40 months. Operations are expected to begin in late 2027. 

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