New concessions to secure our operations

Until now, about 420 000 hectares of forests (own forest and smaller concessions) have been available for harvest. After the visit of the governor of the state of Amazonas in July 2022, we were able to begin negotiations for additional concessions in our region. The law allows for land to be allocated on favourable terms that lies between individual, privately owned parcels. By the end of 2022, we were able to secure an additional 104 000 hectares. This will enable us to rotate without restrictions until the end of 2034. We are also trying to sell parcels that cannot be harvested, are protected, or are located too far away.

We have presented a plan to the development bank and the government to double our forest and industrial activities, with the aim of obtaining a public concession and broadening and expanding our sustainable operations in Brazil. 50 % of the financing would be provided by the development bank at very favourable conditions. In November 2022, we submitted our application to the government for an additional 1.3 million hectares north of our current location, of which we intend to actively manage about 600 000 hectares. This is a long-term project – we expect it will take at least three years to receive a permit, after which it would take another two to three years before we could begin operations.