Protection and Conservation of Biodiversity
The area of the Project is zoned rural and characterized by modified habitat that includes plantations of pinus and eucalyptus, agricultural parcels, and some fragmented remnants of native forests of the Atlantic Rain Forest. The results of the initial biological baseline surveys conducted in the first quarter of 2012 indicate that the area consists of a fragmented mosaic of assemblies of Atlantic Forest vegetation in different stages of regeneration with significant biodiversity value. For instance, the results of the initial surveys identified 8 mammals listed as threatened and endangered (T&E) species. In addition, 21 species were identified as endemic to the Atlantic Rain Forest. These include 19 species of birds, one species of amphibian and one species of reptile.  For plant species, the two main T&E species include Araucaria angustifolia and Cedrela fissilis.  

For the construction of the pulp mill, rail road spur and transmission line it is expected to have small amounts of clearing of fragmented areas of native vegetation, that will be compensated in the form of re-vegetation in another areas and investments in existing areas assigned for conservation in the same region.

The ESIA for the proposed Project states that monitoring programs will be implemented beginning at the start of construction. During site preparation, biologists will be available to monitor and rescue animals. Depending on the condition of the rescued animal, it may be released at a suitable location or, in the case of injury, transported to the animal care facility located at Klabin?s ecological park, in the neighboring Municipality of Tel?maco Borba. Additional species protection measures and conservation areas may be included in the environmental compensation measures, which will be negotiated with IAP as part of the Project environmental permitting process, in accordance with Brazilian requirements. 

Initial biological surveys of flora and fauna (mammals, birds, reptiles and amphibians) were conducted at the proposed Project site and along routes for the water line, effluent line and transmission line corridors. An ichthyofauna survey was also conducted in the Tibagi River, at the proposed intake and discharge locations. When the routes for the main access road, railroad, and locations for the two man camps are defined, the Company plans to conduct additional baseline studies to assess potential impacts and risks of these project components. 

Management and Use of Renewable Natural Resources
Currently Klabin manages 277,635ha of forests in Tel?maco Borba region, Paran? State Brazil. From this total 132,694 are plantations and 111,104 are natural areas of Brazilian Atlantic forest for conservation (Ombrophilous Dense Forest and Semi-deciduous Dense Forest assemblies). Brazilian Atlantic Forest is a highly threatened biome and only 7% of the original land cover remains conserved. 

Part of the existing plantation will be designated to the new pulp plant supply.  Klabin?s plantations are FSC certified and no conversion of natural areas is expected for this project. In 2010 Klabin started to conduct a baseline assessment of all natural/conservation areas, determining the areas of initial, medium and advanced stages of natural regeneration. Klabin also started mapping the High Conservation Value Forests (HCVF) within its areas and identified 5,634ha of HCVFs (1, 2, 3 and 4) 

Although Klabin already has 111,104 ha of natural areas of Brazilian Atlantic Forest as a biodiversity set aside, which is expected to be more than enough to achieve compliance with legal Brazilian set aside requirements, the Company is still in the process of regularization of these areas under the Brazilian Forest code requirements. 

Klabin also purchases wood from small local suppliers, supported by a forest promotion program called ?Fomento Florestal?, and under FSC controlled wood standard requirements. This standard includes provisions against the supply of illegally harvested wood or plantations that resulted in conversion of natural or semi natural areas.