PaperAge Magazine

The Navigator Company Relaunches Plans for Tree Plantations, Wood Chip and Pulp Mill in Mozambique

seedlings The two-phase project would ultimately involve planting 160,000 hectares of forest, construction of a wood chip mill and, eventually, a 1.5 million tons per year pulp mill.

Editor's note: The following is an excerpt from a Memorandum of Understanding between The Navigator Company and the Government of Mozambique.

July 13, 2018 - The Navigator Company, S.A. on July 9 hereby informs that on the date hereof its subsidiary Portucel Moçambique - Sociedade de Desenvolvimento Florestal e Industrial, S.A. (Portucel Moçambique) and the Government of Mozambique (southeastern Africa), through the Ministry for Land, the Environment and Rural Development (MITADER), signed a memorandum of understanding on the relaunching of the investment project in that country, which will now be developed in two stages.

In the first phase, a forestry base of approximately 40 thousand hectares will be planted, which will then guarantee the supply of a wood chip mill (to be built), with a view to exporting around 1 million tons a year.

The results to be achieved in this first phase with the construction of a wood chip mill, as well as the reassessment of market circumstances, will be essential for Portucel Moçambique to validate the necessary conditions to proceed with the large-scale forest plan associated with the industrial project of the second phase, including the planting of a further 120 thousand hectares of forest and the construction of a pulp mill with a capacity to produce 1.5 million tons a year.

As a first step, the two parties agreed to set up a multi-ministerial team that will address a series of conditions precedent to the investment, including the construction of the logistical infrastructures needed to export wood chips and other rural development activities. The venture will be given the green light if these conditions precedent are successfully put in place, in a process expected to be completed over the next six months.

In the first phase, Portucel Moçambique's total investment is estimated at around 260 million USD (of which 120 million USD have already been invested). This will include planting and supporting forestry development of over around 40 thousand hectares, construction of the wood chip mill, and 10 million USD in a social development programme or in the construction and improvement of rural infrastructures.

To learn more about Portucel Moçambique, please visit:

Based in Portugal, The Navigator Company is a leading European manufacturer of uncoated printing and writing paper and bleached eucalyptus pulp. To learn more, please visit:

SOURCE: The Navigator Company