There are several Indigenous Peoples (IP) Reserves located in the central region of the State of Paran?. The two IP reserves that are geographically closest to the Project consist of the Queimadas IP Reserve, located approximately 22 km from the cellulose plant site (immediately adjacent to the City of Ortigueira), and the Tibagy/Mococa IP Reserve located about 35 km from the plant site, on the shores of the Tibagi River, downstream from the Project site. The Queimadas IP Reserve is populated by approximately 600 members of the Kaingang (J? Lingustic family) and a few Tupi/Guarani families (Guarani language). It encompasses a territory of almost 3,100 ha and has been legally established and recognized by Brazilian authorities since 1915, with the most recent territorial demarcation confirmed in 1996. Several other IP reserves are located in proximity to the Sponsor?s extensive forestry plantations in the region.  

Brazilian legislation on the protection and preservation of indigenous peoples, their ancestral culture and territory, requires the participation of Federal Institutions such as FUNAI (the most senior Brazilian authority on indigenous affairs)  in the environmental license process in case of projects with confirmed presence of indigenous reserves or with any type of interference (socio/environmental impact) with indigenous peoples.  As required by the Brazilian legislation, the Instituto Ambiental do Paran? sent the ESIA to FUNAI requesting its official opinion/approval although IAP had not received a response from FUNAI as of the time of IFC?s appraisal. 
 
The ESIA that has been issued to FUNAI for review includes proposed 2 worker camps in Ortigueira municipality and thus, the whole  Queimadas municipality and IP Reserves were placed within the Area of Influence  of Social-economic Environment, (?rea de Influ?ncia Direata do Meio Socioecon?mico, in Portuguese) and  IP groups were briefly described in the social baseline of the EIA, although impacts on IP populations were not very well documented


The Tibagy/Mococa Indigenous Reserve is populated by Kaingang and Tupi/Guarani family groups with a population of about 156 inhabitants and a territory of about 860 hectares; the reserve has been legally established / recognized by Brazilian authorities. The Tibagy / Mococa Indigenous Reserve is located about 35 km away from the Cellulose plant; its territory and community will not be affected by the industrial plant, access road network, railroad, transmission line corridor, workers camps. 

In order to meet the requirements of IFC?s Performance Standard 7, the Sponsor has completed complementary assessment activities as follows: 
A social base-line of Kaingang and Mococa IP groups and an assessment of potential social impacts on the IP reserves located in Ortigueiras.
A Report on the Queimadas and Tibagy/Mococa IP Reserves concerning: (a) legal status of the IR (land demarcation, collective property title, official registry records, land tenure conflicts over boundaries, etc.); (b) procedures/mechanisms for iterative free, prior, and informed consultation and decision making with this Indigenous community and pertinent authorities; (c) identification/assessment of any adverse project impact associated to the location of workers camps in Ortigueira municipality, workers influx, management of nearby plantations (if any) traffic toward and from the cellulose plant; 
Klabin has proactively  engaged with FUNAI seeking of a formal opinion and concept/approval on impacts and management practices to be implemented to protect the Queimadas IP community from potential adverse impacts, and to request a Terms of Reference for an IP management Program to be developed and implemented by the client;
Given  employment opportunities for indigenous workers were demanded by IP groups, Klabin is acting in close collaboration and under the guidance of FUNAI personnel to prepare a protocol to secure culturally-competent reasonable provisions to accommodate, avoid discrimination and properly treat indigenous workers from any of the nearby indigenous reserves in eventual labor relations with non-indigenous workers;
Klabin has offered labor training program for the IP members (a.e. welding, industrial electric works, civil construction works), in cooperation with SENAI, and nineteen IP members are attending those courses.

After reviewing above mentioned documentation, FUANI has issued a ToR of the IP component to complete the EIA (compnente Indigena do EIA, in Portuguese), but however most aspects of ToR has been already meet. Going forward Klabin will enhance social baseline and impact assessment document to meet specific additional requirements from FUNAI, including an IP corrective/compensatory action Plan, which will be present to IAP and communicated to FUNAI, following the formal licensing process. At the end, when all requirements of the ToR have been met, FUNAI will issue a consent letter of the project.

Going forward, as set forth in the ESAP, based on the Indigenous Environmental Assessment (PBA do Componente ind?gena in Portuguese) agreed between FUNAI (Brazilian governmental protection agency for Indian interests) and the Sponsor, the latter will further expand the recently developed systematic relationship with IP communities located in closest proximity to the PUMA project.