Bracell Revises Bataguassu Pulp Mill Project as Environmental Licensing Review Continues

Bracell has withdrawn its application for an installation license for its planned pulp mill in Bataguassu, Mato Grosso do Sul, in order to revise project details and update information required for the environmental licensing process.

The move follows changes to the area designated for the project after the company determined that the land initially selected would not accommodate the industrial structure planned for the facility. The information was confirmed by Artur Falcette, Secretary of Environment, Development, Science, Technology and Innovation for Mato Grosso do Sul.

According to Falcette, Bracell chose to withdraw its installation permit request to make the necessary adjustments to the project and the associated licensing documentation.

“The land initially planned cannot accommodate the industrial plant, so the company had to make adjustments to the project and, consequently, to the licensing process,” Falcette said.

Despite the revision, the project retains its preliminary environmental license, which was granted by the State Environmental Control Council (Ceca) in December 2025. Construction of the facility remains dependent on the issuance of an installation license.

State authorities expect Bracell to supplement and update the information required by environmental agencies, allowing the review process to resume from the point at which it was paused.

According to the project’s Environmental Impact Report (EIR), the planned investment totals approximately R$16 billion. The project includes the potential development of two pulp production lines.

The first line is designed to produce between 2.8 million and 2.9 million tonnes of kraft pulp annually. A second line would have capacity for 1.460 million tonnes of kraft pulp and 1.147 million tonnes of dissolving pulp per year, for a combined annual output of 2.607 million tonnes.

The EIR estimates that the project could generate approximately 12,000 jobs during peak construction and around 2,000 direct jobs once operations begin.

The planned facility is expected to consume roughly 12 million cubic meters of wood annually. Bracell’s parent group, Royal Golden Eagle (RGE), already operates in Mato Grosso do Sul through MS Florestal.