Cargill Environmental Impact Report

Cargill Agrícola S.A.’s Solid Bulk Commodities River Terminal

RIMA Environmental Impact Report Revised and updated edition

FEBRUARY

2010

Introduction This report brings in a simple and direct language the results of the Environmental Impact Study (EIA) prepared for compliance and expansion of Cargill Agrícola S.A.’s Solid Bulk Commodities River Terminal in the port of Santarém, state of Pará.

The river terminal in question was implemented and has been operated by Cargill Agrícola S.A. since 2003, based on Operating License (LO) no.

389/2003, renewed by LOs no. 637/2004 and no.

473/2005 (valid until the announcement of the binding decision following the review of the EIARIMA presented), issued by the former Secretariat of Sciences, Technology, and Environment (SECTAM), current Environmental Secreatariat (SEMA) of the state of Pará.

The reviewed and updated version of the Environmental Impact Study (EIA), as February 2010, of Cargill Agrícola S.A.’s Solid Bulk Commodities River Terminal will be available for consultation at the following locations: • Belterra City Hall • Belterra Public Library • Santarém City Hall • Santarém Public Library • Santarém Chamber of Commerce (ACES)

Expediente Publicação elaborada pela CPEA -Consultoria Paulista de Estudos Ambientais Edição: Image Nature – Meio Ambiente e Comunicação Impressão: Gráfica NEOBAND Impresso em Papel Certificado

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Cargill Agrícola S.A.’s Solid Bulk Commodities River Terminal

Environmental Impact Report

February 2010

What is EIA and what is RIMA

4

Background of the environmental licensing

5

Why build a river grain terminal in Santarém

6

What is the Cargill River Terminal today and what will it be after the expansion

8

Environmental measures already implemented

10

The Terminal after its expansion

11

Environmental diagnosis

14

The Terminal’s property and the river port region (ADA)

15

The city of Santarém (AID)

16

The areas of the region’s municipalities (AII)

17

Assessment of the impacts

20

Main impacts of the Terminal • Negative impacts

21

Main positive impacts • Benefits

26

Table – summary of impacts

28

Environmental programs

34

Key environmental laws considered in preparing the EIA

36

Community survey

38

Conclusion

39

Name of the entrepreneur Owner and entrepreneur: Cargill Agrícola CNPJ no.: 60498706/0335-94.

Address: Av. Cuiabá, s/n – CDP – Lote 4.

Bairro Salé, Santarém (PA), CEP 68040-400.

Individual in charge: José Francisco Corrêa de Oliveira.

Contact (93) 3512-2431.

Name of the company in charge of the EIA CPEA - Consultoria Paulista de Estudos Ambientais.

CNPJ no.: 04.144.182/0001-25.

Address: Rua Henrique Monteiro, 90 – 13º andar – São Paulo (SP).

Planning Manager Roberto Takahashi.

Contact (11) 4082-3200.

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What is EIA and what is RIMA The Environmental Impact Study (EIA) is an instrument of Brazil’s National Environmental Policy to license activities that change the environment; it applies especially to construction work and activities that could cause environmental damage. The study’s key objective is to anticipate all impact a given project may have in the environment in which it will be implemented, considering the planning, implementation, operation, and demobilization phases, as applicable, as well as physical, biological, social, and economical aspects. The study assesses the environmental feasibility and suggests – if acceptable – the level of change in the environment, the measures that should be taken to mitigate any anticipated negative impacts (called mitigating measures), maximize environmental benefits, and, if any irreversible impact happens, suggest compensatory measures to offset any losses or damages.

The EIA should be prepared by a multidisciplinary team of experts, who prepare a detailed diagnosis of the environment and, based on the project’s construction and operation characteristics, identifies all possible changes that will result from these activities, suggesting mitigating measures. This type of study is highly detailed and complex, and is not easily understood by lay people.

Accordingly, Brazilian law requires the preparation of a summarized document in everyday language, called Environmental Impact Report (RIMA), which helps the communities affected to understand the content of the EIA and take part in the environmental licensing process, with criticism as well as suggestions.

Implementation process 1973 1998 1999 2000 2001 2003 2007 2008 2009

2010 4

CONAMA Resolution no. 001/86 made the EIA/RIMA mandatory for all projects listed in that resolution, also defining the structure and the contents of the EIA/RIMA. CONAMA Resolution no. 237/97 also listed the cases in which a EIA/RIMA applies, the procedures and criteria for environmental licensing, and the licensing competence of the different environmental authorities, at the federal, state, and local levels.

An EIA/RIMA must comply with the guidelines set in the Reference Statement prepared by the environmental authority in charge of the licensing process. Unlike other less complex environmental studies, used in situations involving lesser environmental impact, licensing using the EIA/RIMA requires public hearings, to ensure that the community can also take part in the licensing process.

Under Brazilian law, environmental studies and mandatory environmental licenses ultimately seek a healthy and well balance environment, as well as the sustainability of human activity in the country.

rt is established The Santarém public po Paz beach is established The port area at the Vera nal in Santarém ding to build a grain termi Cargill wins the public bid ncluded onmental studies are co The project and the envir at part of the terminal rts sta ction work tru ns co d an d ure sec Licenses are tion The terminal starts opera minal and its expansion /RIMA for the existing ter EIA an e uir req ies rit tho Au ed The EIA/RIMA is conclud d , complying with SEMA an ted da up is The EIA/RIMA orders Public Prosecution Office d to SEMA tte The EIA/RIMA is resubmi

Background of the environmental licensing In 1999 Cargill won a public bidding to build a grain terminal in the Santarém port area.

In 1999 the company submitted a formal request to SECTAM regarding environmental licensing for the installation and operation of Cargill Agrícola S.A.’s Solid Bulk Commodities River Terminal; this authority requested an Environmental Control Plan (PCA), which was prepared and presented by the company, and approved by this environmental authority in 2000. After that, SECTAM issued Prior License no. 016/2000, followed by Installation License no. 37/2000.

Cargill started building its terminal in 2000, complying with all legal requirements for a project of this nature.

In the same year, the Federal Public Prosecution Office filed a public civil action against Cargill, to stop construction work until an EIA/RIMA was prepared and approved. Cargill filed appeals and had the Federal Public Prosecution Office’s motions dismissed, which ensured construction work progressed. In 2003 Cargill started operation of its Solid Bulk Commodities River Terminal in Santarém.

In 2007 SECTAM (currently SEMA) extended the operating license. However, considering the court ruling that had ordered the

preparation of an EIA/RIMA, required the preparation of a study for the whole area occupied by Cargill, as well as the restoration of any possible environmental damages resulting from the installation and operation of the terminal. The study should also include the project’s planned expansion, involving the building of another warehouse within the existing terminal, with a capacity of 30,000 metric tons of grain.

To prepare the EIA/RIMA, after it checked with the institutions involved in this matter, SEMA issued a Reference Statement, setting the minimum EIA/RIMA content. The study started at that time and was concluded in September 2008.

In 2009, SEMA issued two documents, requesting Cargill to complement and change the EIA/RIMA; the new version was concluded in December 2009. The changes included the expansion of the area of influence in question, a deeper study of the expansion of soybean farming in the Amazon region, the Economic-Ecological Zoning of the intervention area covered by the BR-163 and BR-230 highways (approved by State Law no. 7243 dated Jan/09/2009), the Community Mapping of Soybean Impact (Greenpeace, Projeto Saúde & Alegria, STTR, and STR), and a review of the technological and locational alternatives.

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Why build a river grain terminal in Santarém (Objectives and reasons for the project)

The Santarém Solid Bulk Commodity River Terminal was built to ship part of the soybeans bought by Cargill in Brazil’s CenterWest region. Currently, 2.3 percent of soybeans produced in Brazil (nearly one million metric tons) are shipped at its facilities.

In addition to the soybean bought in the Center-West region, Cargill also provided the local community with the possibility of shipping its own recent production. Soybean was first introduced in the Santarém region in 1996 and the first commercial harvest was exported through the Itacoatiara port.

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Public policies

Logistic efficiency

The project is part of regional development programs

Freight arrives faster and cheaper

The different regional policies implemented in the last few years by the federal, state, and local governments focus sustainability, combining environmental protection with economic competitiveness. This resulted in initiatives to foster regional development, driven by nationwide programs such as Sustainable Amazon Plan, Accelerated Growth Program, and Citizenship Territory Program.

The Sustainable Amazon Plan (PAS) institutionalized the National Policy of Regional Development, bringing effective and concrete guidelines for developing the Amazon region, which has direct effects on federal and state programs and projects.

The federal government’s Accelerated Growth Plan (PAC) was designed to encourage private investment and increase public investment in infrastructure. In the state of Pará, the program has produced work to connect different areas within and without the region, particularly other states of the North and Center-West regions, lining road, river, and rail transport to reduce shipping costs. The works of the BR-163 highway to the port of Santarém, part of the PAC, conclude an important export channel for the region’s products (wood, soybeans, and others).

Introduced by the federal government in early 2008, the Citizenship Territory Program funnels investments into environmental protection, sustainable farming, title registration, rural healthcare and education, and social management issues. This set of plans, programs, and initiatives is part of a medium and long-term development policy.

Today soybeans are the main protein source for human nourishment, which demands a worldwide trade network for this commodity. While the United States have traditionally been the world’s largest soybean exporter, in 2007 the US Department of Agriculture forecast that in the 2008/2009 harvest Brazil would pass the United States to become the world’s largest grain soybean exporter. Soybeans are transported between nations and continents by ships, and ports are the most important link to help this source of food arrive at consumers at lower prices.

Soybean produced in the state of Mato Grosso, Brazil’s main producer of this grain, was shipped over thousands of kilometers of roads and rail to the ports of the country’s Southeast region before it was exported. This increased considerably both the cost of freight and of the end product. In turn, farmer income diminished and Brazilian agriculture became less competitive internationally. The Santarém River Terminal helped remedy part of this situation.

Considering that most of the buyers of Brazilian soybeans are countries in the northern hemisphere, and that soybean production in the north part of the state of Mato Grosso is on the rise, the Santarém terminal has gained strategic importance in the effort to reduce export costs and increase competitiveness of local soybeans in the domestic and international markets.

SOY WORKFLOW FLUVIAL WORKFLOW

ATLANTIC OCEAN

Factors that justify the expansion of the terminal • The possibility of operating with agricultural commodities other than soybeans (e.g., corn); • The need to increase product storage capacity to raise efficiency of the Santarém terminal’s infrastructure; • The high market potential of the soybeans produced in the west part of the state of Mato Grosso, which lets more product be shipped through Santarém; • The existing customs facilities at the port, which provide the necessary structure and services for export bound products; • The need to expand Brazilian exports and reduce Brazil’s inherently high logistic and infrastructure costs; • Advantages for the region, namely higher tax revenues, a boost in agricultural production, trade, and local services; and higher income and quality of life for the city’s inhabitants; • Reduced environmental impact to the extent that soybeans will no longer be trucked to the Southeast region and will be shipped by boat, which reduces fuel consumption, pollution, and the risk of road accidents.

ATLANTIC OCEAN

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What is the Cargill River Terminal today and what will it be after the expansion (Object of the license)

Cargill Agrícola S.A.’s Solid Bulk Commodity River Terminal opened in April 2003, after the company acquired the right of lease of an area in the Santarém public port for a 25-year term, extendable for another 25 years, in a public bidding held by Companhia Docas do Pará (CDP), the state port authority.

The port facilities consist of a berth for grain vessels and convoys of barges, as well as installations for the land transport and storage of grain.

Installed equipment used to handle grain includes grain suction machines, conveyor belt systems to unload barges and load ships, scales, cleaning systems for grain arriving by truck, a 1,500 MT buffer silo, a grain drying system, a truck unloading hopper, and an internal system of conveyor belts.

To supply all this machinery, the company built an electrical substation, a lighting protection system, a metal reservoir to supply the fire fighting system, and fire pumps and piping.

Cargill’s facilities include a 60,000MT grain warehouse, a 7,000 liter raised water reservoir, and two underground concrete galleries that house the conveyor belts. The project also includes a new 30,000MT silo, which would increase the terminal’s capacity in half.

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Terminal operation At the terminal, the grain arriving by barges and trucks is unloaded and then loaded onto bulk grain vessels.

The barge unloading system employs special suction machines, which send soybeans down conveyor belts and up elevators to a flow scale tower, where the grain is continuously weighted and taken to the grain warehouse.

Soybeans arriving by truck are inspected in a sorting area before they are unloaded. After the trucks are weighted on a truck scale, they proceeded to a truck dump where the grain is deposited in a hopper.

Three towers load the grain by gravity onto ships tied at the berth. The towers have special piping (rotating and telescopic booms). Grain can be loaded onto ships from the warehouse or directly from the barges or trucks, which makes port operations very efficient.

1 Storage

2 Transportation

Soybeans flow from the pier to the terminal in enclosed conveyor belts to control dust; the grain is weighted on a flow scale.

Capacity of 60,000 MT

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1 4

3

Soybean transportation and handling at the port of Santarém

Soybeans coming from Center-West region farmers arrive by truck to the river terminal in Porto Velho and from there by way of the Madeira, Amazonas, and Tapajós (a short stretch) rivers to Santarém. At the Santarém river terminal, the grain is stored and transferred to ships that take it to soybean consuming countries.

In 2007, Companhia Docas do Pará, the state port authority, recorded 1,916 vessels shipping at this terminal, or an average of 160 vessels per month, or a total of 2,240,132MT of cargo shipped. Soybeans accounted for about one million metric tons.

During the harvest season (June, July, and August), the terminal receives up to 45 trucks per day. In 2007, nearly 45,000MT of soybeans arrived by truck. One or two vessels per month load soybeans. Three is the most vessels loading at the terminal in a single month.

In 2008, the terminal exported 1,068,565MT of soybeans onto 32 vessels; By October 2009, the terminal had exported 873,225MT of soybeans on to 22 vessels. The average number of ships berthed in 2009 was higher; in June the terminal received five ships and in August it received four.

3 Ship loading

5 6

Export bound vessels are of the Panamax type and have a gross capacity of 60,000MT.

4 Soybeans arriving by truck

Truck dumper.

5 Pre-cleaning and drying

6 Soybeans arriving by barges

Barge convoys coming from Porto Velho, RO, are unloaded by suction systems.

Dust filtering system.

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9a

Environmental measures already implemented

Prevention of accidental spills

Points where water was collected for analysis

Water quality Air quality

The terminal discharges no industrial liquid waste into bodies of water. Domestic sewerage is collected and treated in three systems of cesspool/pit and consequently no sewerage is discharged into the Tapajós River.

Groundwater is monitored and is found having good quality. The following aspects are analyzed in surface water: dissolved oxygen; temperarature; pH; total dissolved solids; total suspended solids; biological oxygen demand; chemical oxygen demand; nitrogenated series; oils and greases; total phosphorus. The following aspects are analyzed in undeground water: dissolved oxygen; temperarature; pH; total dissolved solids; conductivity; EH;, nitrate, ammonia nitrogen; total oil hydrocarbons; and faecal coliforms.

For the EIA, the samples of water collected were tested against 48 pesticide compounds, 10 of which are regulated under CONAMA Resolution no. 357, including several pesticides used in farming soybeans. All samples tested had results below laboratory testing limits and met the quality standards of the above resolution.

For the current phase of operation, the terminal features three air pollution control systems: • Local Exhaust Ventilation, which suctions the dust off grain arriving by truck, from the pre-cleaning line, grain drying line, and flow scale tower; • Bag Filter System, which retains dust produced at conveyor belt transfer points.

• Grain Dryer Emission Control, which has filters at exhaust outlets and a cyclone to retain dust particles produced when these filters are cleaned.

Filtering systems in the areas where incoming trucks are received, and the grain is weighted, pre-cleaned, and dried.

Residues and disposal

Solid residues The Cargill terminal has a solid residue management system specifically designed for this type of activity and implemented in 2004. Any residues produced by the administrative offices, kitchen, infirmary, and maintenance shop are placed in suitable containers. Part is recycled and part is disposed of according to applicable legislation.

Soybean grain and residues from loading and unloading, cleaning, drying, and storage in the grain warehouse, and from yards and other facilities are swept, collected, and sent to landfills before they deteriorate.

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Residue

Origin

Disposal

Volume

Organic

Canteen

City landfill

601 kg

Sanitary

Restroom and locker room garbage

City landfill

76 kg

Change of ballast water The change of ballast water in the vessels follows rules and procedures recommended by the International Convention on Ships’ Ballast Water, which are supervised by the port authorities. Ships can only unload at the Port of Santarém after they have changed their ballast water with fresh water in all tanks, a procedure that prevents contamination of the water environment of the Tapajós River.

Cargill employs the supplementary procedure of collecting the ballast water (by the operator in charge) when the vessel’s holds are inspected for loading approval. The collected water has its salinity analyzed using specific equipment. The salt content is recorded in a specific form; in case of any non-compliance, Cargill notifies the vessel’s agent (Brazshipping). The form remains on company files.

Healthcare septic

Infirmary

Incineration

2 kg

Sweeping without contamination

Operational areas

City landfill

6.820 kg

Paper, plastic, cardboard

Administrative and operational areas

City landfill

11.224 kg

Scrap metal

Maintenance

Recycling

17.400 kg

Machinery oil filters

General maintenance and lubrication

Incineration

2 kg

Dirty rags

General maintenance and lubrication

Incineration

730 kg

Used hydraulic and lubricant oil

General maintenance and lubrication

Recycling

790 l

Paint leftovers

General maintenance

Incineration

19 l

Automotive batteries

Vehicle maintenance

Recycling

6 units

Fluorescent light bulbs

Administrative and operational areas

Recycling

139 units

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The terminal’s activities could result in accidental spills of oils and grease. Even the operation of vessel engines and possible accidents during fueling of vessels could pollute the river. All safety procedures required under the law and specific regulations are complied with.

To avoid oil spills, Cargill has implemented a series of procedures: It installed a 5,000-liter diesel storage tank with containment dikes and a special valve that, in case of leaks, channels the oil to a separation pit; it built special system to wash machinery and equipment; it installed containment barriers with corner brackets in the pier; it improved the chemical product warehouse, fitting a water and oil separation pit; it built spill containment areas around the hydraulic unit in the truck dump equipment and around the electrical transformers; it installed a foam system to absorb possible oil spills on the truck dump equipment, which is changed regularly.

Occupational hazards

Points where noise is measured

Not differently from any other port or industrial facility, accidents can possibly happen involving work such as equipment and component maintenance and cleaning of installations, yards, warehouse, or berth. In addition to usual prevention measures, Cargill has its Occupational Health and Medical Control Program (PCMSO). During the six years of terminal operation, only three workers suffered any type of accident, which demonstrates the efficiency of the prevention program.

Control of pests and infectious agents Noise Vehicle and vessel activity associated with the terminal is the main producer of noise in the region. During the construction of the terminal, noisier tasks were restricted to certain times of the day. To control the operation, noise is measured regularly.

This produces no inconvenience to the community because of the distance.

Grain handling and storage attracts vermin (insects, rats, and others), which can damage equipment and spread diseases. This problems is effectively controlled by cleaning the facilities, monitoring the site by staff trained to detect any shelter, water or food that attracts vermin, and pest control procedures.

Pest control is performed by a contractor specialized in urban pests, using two sampling methods: Sampling by Bait and the Pest Monitoring Form, in which staff notify any pests. The system produces monthly reports listing the number of occurrences of all pests, how much pesticide is consumed, and critical locations.

The most common pest identified in this control are cockroaches, followed by ants.

Other programs carried out or under way • Archeological monitoring of the Cargill Agrícola S.A. construction work at the port of Santarém. This resulted in a conclusive report of the monitoring performed, confirming that during the construction work no archeological evidence was found.

• Monitoring plan of the Tapajós River water quality. This is performed twice a year, while the quality of air sampling is performed annually.

• Individual Emergency Plan. This complies with environmental legislation regarding emergency plans at port facilities.

• Responsible Soy Project, in conjunction with The Nature Conservancy – TNC. • Electricity consumption reduction program. This is designed to rationalize the use of electricity.

• Environmental Action Program (PAA).

This started in August 2007 and is intended to promote sustainable practices at the terminal. It includes the use of biodegradable plastic bags, monitoring of the consumption of water use from the deep well, monitoring of electricity use, installation of photocells for light fixtures, and the use of recyclable paper.

• Selective Garbage Collection Program.

This includes the proper disposal of material for reprocessing. It includes ferrous scrap, used oil, solid material contaminated with oil, grease, paint, and solvents.

• Initiatives for soybean governance in the Amazon region. This is represented by a series of principles, procedures, rules, and programs adopted by those involved in the production and sale of soybeans.

Based on these principles, Cargill has developed its criteria for purchasing soybeans at its Santarém terminal only from certified farmers.

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The Terminal after its expansion

Novo armazĂŠm

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The suggested expansion consists of building another 30,000 MT warehouse to add flexibility to the Terminal’s operations.

Grain storage capacity will be expanded in 50 percent, to 90,000 MT. This will enable logistic enhancements for receiving and storing agricultural products other than soybeans.

The port facilities will not be expanded. Consequently, even after the suggested expansion grain receiving capacity from the pier, as well as ship loading, will remain the same, using the same equipment and systems to receive the grain.

With the paving of BR-163, the flow of trucks transporting soybeans to the terminal should increase in 10,000 trucks (at 35 MT per truck), to ship soybeans grown in western Mato Grosso, north of the parallel close to Lucas and Rio Verde (Mato Grosso), which totals about 350,000 MT of soybeans.

Site of the expansion

Job creation

Investment and construction works schedule Investments of over US$ 3 million Erection will take an estimated 10 months

The expansion works will demand construction products and services, including supplies, machinery, equipment, material, and technical services, in addition to services to meet the needs of workers, such as meals, transportation, healthcare, etc.

The expansion should create between 250 and 300 direct and indirect jobs during the peak construction period. This labor force will be hired by a contractor specialized in this type of work, which will hire some staff locally and also bring specialized workers from

other regions. The presence of these workers should boost local business activity and benefit SantarÊm’s population.

The site for the new warehouse is already cleared and ready to house the new facilities. The land does not have any significant vegetation, has been investigated from the archeological standpoint, and has the necessary infrastructure for access and handling of grain. During the construction work, specialists will be on site to monitor excavations for signs of any archeological evidence.

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Environmental Diagnosis The environmental and social description of the area in question and the analysis of the environmental impacts considered three levels of geographic influence of the terminal: Area Directly Affected (ADA), Area of Direct Influence (AID), and Area of Indirect Influence (AII).

The Area Directly Affected (ADA) is the area where the changes take place to implement the necessary structures for the operation of the project. This corresponds to the actual port of Santarém, where Cargill’s terminal is located and where soybeans are loaded, unloaded, and stored, including the pier.

The Area of Direct Influence (AID) is that where the any actions in the planning, implementation, and operation phases have direct effects, as have mitigating associated effects involving environmental control and compensation. This covers Santarém’s urban area and a 500m strip along the Tapajós River, where barges and ships arriving at the terminal must navigate.

The main impact happening in the AID are more direct jobs being created and changes in the landscape and transit.

The Area of Indirect Influence (AII) is actually or potentially affected by the indirect impact of the planning, implementation, and operation of the terminal. Regarding the physical and biotic environments, indirect influence includes the regions of the river basis of the Lower Amazon, Tapajós/Jamanxim, Calha Norte II, and Xingu/Iriri rivers, and the sub-basins of the Arapiuns,

Curuá-Una, Moju, Mojuí rivers, defined as the interbasins of the Economic-Ecological Zoning of the Influence Área of the BR163 and BR-230 highways in the state of Pará. Considering the anthropic environment, the AII covers all of the municipalities of the state of Pará that supply or have supplied soybeans to Cargill, in addition to the municipalities under the influence of the BR-163 (Cuiabá-Santarém) and BR-230 (Transamazon) highways in the state of Pará. Accordingly, the AII covers the municipalities of Santarém, Belterra, Anapu, Aveiro, Altamira, Alenquer, Brasil Novo, Itaituba, Jacareacanga, Juruti, Óbidos, Medicilândia, Novo Progresso, Placas, Porto de Moz, Prainha, Rurópolis, Senador José Porfírio, Trairão, Uruará, and Vitória do Xingu.

Studies carried out

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Physical environment

Biotic environment

Climate, geology, geomorphology, mineral resources, geotechnical, soil, surface water resources, description of the hydrographic system, hydrosedimentology, bathymetry, quality of surface water, quality of sediments (ADA), underground water resources, quality of underground soil and water in ADA, quality of the air, and noises.

Land animal and plant life, conservation units and areas of relevant interests, water biota, benthic macrofauna, ichthyofauna, quality of the water biota, urban fauna – pests and infectious agents.

Social and economic environments Occupation history, evolution of the population, quality of life, occupation and income, urban infrastructure, energy, sewer systems, leisure and cultural activities, public security, healthcare, education, use and occupancy of the soil, economic development, road and transport infrasctructure, social organization, indigenous communities and traditional populations, land structure and conflicts, archeological and cultural assets.

The Terminal’s property and the river port region (ADA) Animal life

Plant life

Well for monitoring underground water

Pier and dolphins at the CDP

Physical environment: The river terminal sits on the right bank of the Tapajós River, next to its confluence with the Amazon River. Water level has an average amplitude of 6.5m and can reach levels as high as 8.5m during heavy rains.

The land consists of sediments deposited by the river, the soil is not sandy and is well drained, and the water table is at an average depth of 1.7m. Winds are mostly westerly (CDP bound). The riverbed is stable and its depth remains at suitable levels for navigation.

Environmental quality: On the planned site, studies of underground water suggest that these are of good quality and drinkable. The results of all aspects analyzed do not bring evidence that Cargill’s activities have interfered in the quality of the groundwater.

Underground water quality: Domestic sewerage is collected in suitable systems and sent to three systems of cesspool/ pit and consequently no sewerage is discharged into bodies of water. Every six

months water samples are collected from the Tapajós River facing the terminal’s facilities, for a quality assessment. The tests only found the presence of some substances (HPAs) associated with fuel.

These substances are commonly found in port areas such as Santarém and not exclusively at Cargill’s facilities. The results of the analysis of fish muscle structure suggest no signs of contamination by pesticides.

Quality of Air: During 2005, 2006, and 2009 the quality of the air was monitored and the concentration of Total Suspended Particles (PTS) was evaluated, because this could be related to the activities performed at the terminal. In 2005 all testing resulted in levels below the primary standard of 240ig/m3 of air quality, set by CONAMA Resolution no.

003/90. In 2006 two results were above this standard, but it was later found that during the days the air was monitored it was affected by emissions outside Cargill’s site. In 2009 all results were below

the primary standard of air quality set by CONAMA Resolution no. 003/90. This set of results lets us conclude that Cargill’s control measures for particulate matter since the implementation of the terminal have been effective.

Level of Noise: All levels of noise measure at several points of the terminal in operation are within acceptable limits under applicable legislation and have caused no inconvenience to either workers or population.

Solid Residues: At the port, solid residues are collected and stored at suitable locations until they are disposed of in a proper manner (recycling, landfill, or incineration, depending on the type of residue).

The procedures employed to prevent accidents, respond to emergencies, and ensure the health of workers are defined on two levels of emergency response – one general and one individual. These have fully met Cargill’s needs from the beginning.

Measuring of underground water

Plant and animal life: The site has the typical animal life of Santarém urban areas. Some soybean-feeding vermin are attracted, but they are controlled by the company’s control and monitoring procedures. The vegetation that covered the area before Cargill terminal was implemented consisted mainly of grass and some trees, particularly mango trees.

Collection of water samples for analysis

Use and Occupancy of the Soil: The area directly affected and its surroundings are used only for port activities and are part of the Santarém port.

Archeology: A prior study was performed to find possible archeological evidence; during the construction of the terminal excavations were monitored for signs of archeological evidence. No archeological signs were found on the site.

Measuring noise with a sound-level meter

Remaining section of the Vera Paz beach

Archeological monitoring during construction work

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15a

The city of Santarém

Physical environment: The city of Santarém is at the confluence of the Tapajós and Amazonas rivers. It was built on the Tapajós landing and on the Amazon plain. The land slopes slightly towards the rivers. The soils are deep and susceptible to erosion, especially during the torrential rain typical of the Amazon region.

(AID)

Main Economic Activities: From its foundation, Santarém has been an important business center in the Amazon basin. The city has many different services that serve the whole region of western Pará, in addition to a port that can receive even large ships. The municipality is connected to Cuiabá through the BR-163 highway. Agriculture and logging have been driving the city’s economy. Fishing, commercial navigation, and, more recently, tourism, are also important economic activities.

Change in urban sprawl - 1975/2006

Liquid terminal

Water quality: The study performed detailed chemical analysis for several parameters, including for pesticides most commonly used in soybean farming, in the following matrices: surface water and groundwater, sediments of the Tapajós river, and fish muscle structure. This yielded the following results:

• Surface water and groundwater – Detailed chemical analyses show no signs of surface water contamination by pesticides used in soybean farming; • Sediments – The analyses from sediment samples show no signs of sediment contamination by pesticides used in soybean farming; fish muscle structure – the analy-

The meeting of the rivers

ses show no signs of contamination by pesticides in the fish analysed. Consequently, we can conclude that the activities of the Cargill terminal have caused no changes in environmental quality.

Riverfront

Public Health: Santarém has health programs to control infectious diseases such as dengue fever, kalazar (Visceral leishmaniasis), malaria, Chagas’ disease, and rabies (bats). Dengue fever reached epidemic proportions in 2001, but was controlled the following year. It spiked again in 2008, totaling 880 cases in the urban area. In the same year, there were no recorded cases of malaria in Santarém’s urban area. In 2008, there were only seven cases of kalazar in the urban area; the last recorded cases of Chagas’ disease also happened in 2006.

Archeology: The Santarém port area includes an important archeological site, which has been researched and salvaged. Initiatives include educating the local community of the importance of preserving the archeological site.

Port Tourism

Floating pier

Fishing Cuiabá Ave.

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Use and Occupancy of the Soil: Within the AID, the use of soil is urban. There is intense navigation activity (cargo, passenger, fishing, and tourism) in the Tapajós and Amazonas rivers. Santarém is the main city in western Pará and the second largest city in the state. It is a business, port, medical, cultural, and educational hub, including several universities. While urban infrastructure is developed, the city still lacks basic sanitation, which has negative effects on the quality of the water and on health.

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Plant and Animal lives

Plant life: The AID, represented by plant physiognomies occurring in Santarém’s urban areas, is part of one of the world’s richest environments in terms of biodiversity, which is the Amazon Region.

Within this context, the municipalities original vegetation cover consists of forest, cerrado (or tropical savannah), and floodplain vegetation, which varies according to the type of soils and water drainage. Because of the region’s fast-paced economic growth of the past decades, Santarém has experienced difficulties in its urban planning, with unchecked sprawl. Consequently, the native plant physiognomy has been changed. Few original forest and field patches remain, and they are not well connected with each other in structural as well as functional terms.

Generally speaking, the forest areas are of economic interest to the municipality, particularly those of the Firm Ground Dense Forest and Open Forest with Vines types, because they include valuable timber such as tauari (Courati spp), jarana (Leeythis lucida), and itauba (Mezilaurus itauba) The cerrado areas, in turn, are nearly devoid of vegetation and unfertile and sandy soils, called quartz sand. The landscape is visually stunning and has considerable potential for the tourism industry.

The floodplain forest consists of medium-size trees and some smaller vegetation; this area is flooded part of the year. The floodplain contains mostly softwood of little commercial value, except andiroba (Carapa guianensis), jenipapo (Genipa americana), ingá (Inga disticla), louro-da-várzea (Nectandra amazonium), taperebá (Spondia lutear), samaúma (Ceiba pentandra), and buriti (Mauritia flexuosa).

Research images of animal and plant life in the EIA for the AID.

Animal life: The study identified reptiles found in forested areas and which easily adapt to changed environments. It also identified species that usually occupy open areas or sunny environments of the forest, preferably natural clearings. Of species with medical relevance, we have the jararaca snake (Bothrops atrox), which causes most of the snake bites in Brazil. In this region, in result of the loss of its habitat, this species is frequently found in inhabited areas, looking for small mammals that comprise its diet, which is why these snakes are found in the AID. Among amphibians, we have Rhinella granulose and R. marina, which have adapted to changed environments and can be seen relatively often in the AID. Regarding birds, the study identified species normally found in urban áreas and which are strongly dependent on human activity, such as rolinha-roxa (Columbina talpacoti), anu-preto (Crotophaga ani), sanhaço-do-coqueiro (Thraupis palmarum), cambacica (Coereba flaveola), and pardal (Passer domesticus).

Of the mammals recorded in the AID, the gambá (Didelphis marsupialis) is a mammal found in many different environments, including those highly anthropized. In addition to the gambá, only exotic species of the common rat (Rattus rattus and Rattus novergicus), and mouse (Mus musculus) are expected in these enviroments. Other less generalist species can occur in the vicinity or around Santarém’s urban áreas, including cotias (Dasyprocta spp.), tamanduámirim (Tamandua tetradactyla), tatu-verdadeiro (Dasypus novemcinctus), macaco-prego (Cebus apella), macaco-de-cheiro (Saimiri sciureus) and some species of small rodents or marsupials (Metachirus nudicaudatus). Peixe-boi amazônico (Thrichechis inunguis), is a species under threat of

extinction and relatively common in the Tapajós River, particularly near the project.

Fish life within the AID consists of 26 species, distributed in 12 families. Among specifies identified in the AID, we have sardine (Triportheus sp), tambaqui, pacu (Mylossoma spp e Mylleus sp), pirapitinga (Piaractus brachypomus), Piranha (Serrasalmus sp), aruanã (O. bicirrhosum), charutinho (Hemiodus sp), curimatã (Prochilodus nigricans), tamoatá (Hoplosternum littorale), cascudo (Lithodoras dorsalis), dourada (Brachyplatystoma flavicans), filhote (Brachyplatystoma filamentosum), pirarara (Phractocephalus hemioliopterus), fura-calça (Pimelodina flavipinnis), surubim (Pseudoplatystoma sp), tucunaré (Cichla sp), acará (Geophagus sp), pescada (Plagioscion squamosissimus). The migrating Pimelodidae family is represented by fish such as filhote or piraíba, surubim, fura-calça, dourada, pirarara, and jaú. The tucunaré (Cichla sp) and Hyphessobrycon aff. Cachimbensis can be considered endemic to the Tapajós River system, while the Otocinclus sp. is apparently a species unknown to science until now. No fish collected or identified in the Santarém market is in the list of threatened species in Brazil or in the state of Pará.

Lastly, the study identified 536 benthic macroinvertebrate individuals, divided into eight types: Oligochaeta, Diptera (insect larvae), Copepoda, Nematoda, Polychaeta, Insecta, Nemertea, and Mollusca for the área of influence of Cargill’s terminal. The most representative groups consisted of Oligochatea and Diptera (insect larvae), comprising about 87% of all organisms found in the sampling, which shows the relevance of these groups in the benthic macrofauna of the region in question.

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Area of Indirect Influence (AII) Physical environment: The area under study covers mainly the geomorphological units of the Tapajós landing and TapajósXingu plateau; the Tapajós plateau and the Cachimbo high plain, with flat to hilly. In most of the AII the soils are deep, with texture varying from medium to very clayey, and the presence of lateritic crust on top. These soils are considered suitable for farming. The AII is part of four large river basins: Lower Amazonas, Tapajós, Calha Norte II, and Xingu, with the Tapajós River and the Lower Amazonas River being the most important. Secondary river basins are those of the Arapiuns, Curuá-Una, Moju, and Mojuí rivers.

Conservation Units: Among the 23 conservation units in the project’s AII and AID, 17 were of priority level for conservation purposes: Parque Nacional do Jamanxim, Parque Nacional do Rio Novo, Reserva Biológica Nascentes da Serra do Cachimbo, Floresta Nacional do Tapajós, Floresta Nacional de Itaituba I, Floresta Nacional de Altamira, Floresta Nacional de Mulata, Floresta Nacional do Amaná, Floresta Nacional do Jamanxim, Floresta Nacional do Crepori, Floresta Nacional do Trairão, Reserva Extrativista Tapajós-Arapiuns, Reserva Extrativista Verde para Sempre, Área de Proteção Ambiental do Tapajós, Estação Ecológica do Grão-Pará, Floresta Estadual do Trombetas, and Floresta Estadual do Paru.

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Agriculture and rural communities

Use and Occupancy of the Soil: The region’s landscape is a vast mosaic of different uses of the soil, mostly consisting of secondary forests and farming and ranching activity. Nearly 60% of the AII consist of protected areas and Conservation Units. Soybeans have been planted only recently and currently account for 0.06% of the AII. This grain is concentrated in the Santarém and Belterra municipalities (which correspond to 95.4% of the soybean farmland in the AII). We should point out that the region was surveyed considering the consolidated data of the Community Mapping of Soybean Impact (Greenpeace, Projeto Saúde & Alegria, STTR, and STR). Floodplains are used mostly for ranching activity, which occupies about 5% of the AII. Main Economic Activities: The economic activities of the municipalities in the AII are quite diverse and focus particularly retails and services, which represent 67% of the added value. Manufacturing accounts for 20% of economic activity, and the primary sector (farming, ranching, fishing, and extractivism) account for another 14%. In the rural zone, the main economic activities are temporary farming, particularly manioc, rice, and corn, fishing and fish farming, and the cultivation of tropical fruit, as well as ranching.

Plant and Animal lives

Plant life: The region under study is part of the Amazon Forest Domain, with some cerrado and some transition areas. In the forest domain, in addition to hardwood trees, there is a palm called açaí or jussara (Euterpe oleracea), which is not currently harvested commercially but could in the future produce eatable heart of palm. Other species found in the region include Tabebuia serratifolia (ipêamarelo), Bactris grassipaes (pupunheira), Lecythis pisonis (sapucaia), and Simarouba amara (marupá). Inside the forest, large trees include copaíba (Copaiferareticulada) and abiu-canelado (Pouteria anibiifolia). Some species are of special interest for conservation because they are either protected or threatened by commercial exploitation. The Brazil nut tree (Bertholetia excelsa) and seringueira (Hevea brasiliensis) are legally protected under the Brazilian Forest Code. Other species, such as ucuúba (Virola surinamensis) and mahogany (Swietenia macrophylla) have export cotas. O the species identified in the AII (with emphasis on trees and bushes), three are included in the list of threatened plant species: Swietenia macrophylla, Bertholetia excelse, and Bowdichia nítida.

Animal life: A total of 552 species of birds were identified in the AII. Two species in particular are threatened at the national level: arara-azul-grande (Anodorhynchus hyacinthinus) and ararajuba (Guarouba guarouba). Other than these two, there are 15 other species that are not included in the national list of threated species, but are considered threatened in the state of Pará: mutum-de-penacho (Crax fasciolata), jacamim-de-costas-verdes (jacamimde-costas-verdes), papagaio-campeiro (Amazona ochrocephala), araçari-de-pescoço-vermelho (Pteroglossus bitorquatus), pica-pau-dourado-

escuro (Piculus chrysochloros), pica-pau-de-coleira (Celeus torquatus), mãe-de-taoca (Phlegopsis nigromaculata), arapaçu-da-taoca (Dendrocincla merula), arapaçu-rabudo (Deconychura longicauda), arapaçu-galinha (Dendrexetastes rufigula), arapaçu-barrado (Dendrocolaptes certhia), joãoteneném-castanho (Synallaxis rutilans), papinhoamarelo (Piprites chloris), and saíra-diamante (Tangara velia). The survey also found an endemic bird species, dançador-de-coroa-dourada (Lepidothrix vilasboasi), which occurs in an extremely small area.

A total of 93 mammals were identified within the AII. The mammal community is typical of the Amazon forest, representing well the whole range of animals, including large carnivores at the top of the food chain. A total of 36 species of endemic mammals to the Amazon biome were identified; there are 12 species of threatened mammals within the AII, particularly macaco-aranha (Ateles marginatus), which is not only under threat of extinction but is also endemic to the Amazon region. Other threated species are cachorro-vinagre (Speothos venaticus), ariranha (Pteronura brasiliensis), jaguatirica (Leopardus pardalis), gato-do-mato pequeno (Leopardus tigrinus), gato-maracajá (Leopardus wiedii), onça-pintada (Panthera onca), sussuarana (Puma concolor), peixe-boi (Trichechus inunguis), and guariba (Alouatta belzebul). Among nonthreatened species, primates and rodents are the most common.

The survey also identified 37 amphibians, 12 chelonians, four alligators, 33 lizards, and 84 snakes.

This number of species represents nearly 23% of the snake community in the Amazon basin, a witness to the importance of this group to the areas of influence of the project. Of the many species identified,

only one is under any kind of threat, Phimophis guianensis, which is considered “endangered” in the state of Pará. The survey also found an exotic species, the gecko (Hemidactylus mabouia); yet this species is frequently found in urban and rural dwellings and consequently has little influence on native species found in natural environments.

Regarding fish, the survey identified 173 species in the AII. They are mostly omnivorous and have few restrictions to remain in changed environments. No fish species was found under threat of extinction or overexploited. However, because of the intense relationships human populations have with the rivers of the Amazon region, most of the fish species surveyed are subject to some kind of human exploitation.

One species of particular economic importance is tucunaré (Cichla sp.), one of the most sought after in commercial and recreational fishing. Two species of fish are considered endemic to the Tapajós River system: one is tucunaré (Cichla sp.) and the other is probably new to science (Hyphessobrycon aff. cachimbensis). On the other hand, five species are exotic to the region: acará-açu (Astronotus crassipinnis), tambaqui (Colossoma macropomum), cascudo (Hoplosternum littorale), pescada-branca (Plagioscion squamosissimus), and piranha vermelha (Pygocentrus nattereri). There are also rare species, such as torpedinho (Nannostomus bifasciatus), sardinha-gato (Agoniates anchovia), piabavermelha (Aphyocharax alburnus), piaba-da beira (Brycon pesu), pacu-cadete (Myleus schomburgki), ituí- transparente (Eigenmania virescens), sarapó (Gymnotus carapo), bacu-cascudo (Lithodoras dorsalis), cachorro-de-padre (Pseudauchenipterus nodosus), braço-de-moça (Hemisorubim platyrhynchos), corredora (Corydoras garbei), and mussum (Synbranchus marmoratus).

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Composition of economic activities in Santarém and Belterra Pension Fishing Manioc and derivatives Cultivation of tropical fruit Grain Livestock Crafts and others Non-wooden products

Mosaic of land use

Font: Ceama, 2008

Use of the soil in the AII (2008) Protected Areas Other uses Soy Temporary crops Pastures Permanent crops

Fonte: IBGE - Produção Agrícola Municipal Os outros referem-se a matas, recursos hídricos, áreas urbanas etc. * Dados de áreas de pastagem referem-se ao último censo agropecuário de 2006

Rural communities along the highways

Soy impacts - Communitarian Map

Comunidade mapeada Comunidade ameaçada Desmatamento Igarapé impactado Acesso bloqueado

Soy and forest fragments

Areas of permanent preservation (APPs), with forests

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AII for the social and economic environment

Poultry production

Tapaj贸s FLONA

AII for the physical and biotic environment

Margin of the Rio Tapaj贸s at Santar茅m

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Assessment of the impacts The assessment of impacts uses a forecast of direct and indirect interferences and changes that the planning, implementation, and operation of the terminal cause in the environment, in its physical, biological, and human dimensions. The criteria employed to assess environmental impact are the following:

Occurrence Phase: This corresponds to the phase of the project in which the impact actually takes place: planning, implementation, and operation; Location: Spatial position of the impact’s occurrence, which can be in the Area of Indirect Influence (AII), Area of Direct Influence (AID), or Area Directly Affected (ADA).

Measuring: This quantifies, to the extent possible, the absolute magnitude of the impact.

Nature: Positive, when it results in improvements to environmental quality or to life; or negative, when it results in damage or loss of quality.

Type: Direct, when it results from the generating action (first order), and indirect, when it is a consequence of the other

impact or action (second or third order).

Probability: Of occurrence, namely certain, probable, or improbable.

Duration: Temporary, when it happens during a clearly defined period of time (only during the construction phase, for instance), or permanent, when it happens over the lifecycle of the project (during the whole operation phase).

Physical Scope: Local, when the scope is restricted to the location of the project and its immediate surroundings, or spread, when it is physically disseminated.

Reversibility: Reversible, when the impact ceases as soon as the generating action ends or when measures are possible that can restore the environmental condition existing before the event; irreversible, when the change cannot

be reverted, neither by the end of the generating action nor by control and mitigation measures.

Occurrence: Immediate, when it happens at the same time of the generating action, mediate, when it happens over the medium and long term, lasting beyond the duration of the event that triggered it.

Magnitude: This shows the intensity of the impact against a certain environmental factor or area of occurrence; it is divided into small, medium, and large, from a qualitative standpoint.

Relevance: Small, medium, or large, resulting from the evaluation of its meaning and its environmental and social dynamics in relation to the existing dynamics.

The EIA added to the impact assessment methodology a new component, called Community Perception. This is intended to explain the concerns of the SantarĂŠm and Belterra communities regarding each of the impacts analyzed and to try to meet the expectations of the main local leaders.

The identification, analysis, and assessment of the impact resulting from the implementation, operation, and expansion of Cargill’s Solid Bulk Commodity River Terminal show that the impacts are mostly of small to medium magnitude and relevance for the environment of which they are part. The coming pages describe the main impacts caused by the project.

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Paisagem afetada

Impact

Main impacts of the Terminal Negative impacts

Generation of the population’s expectations Removal of tradesmen from Vera Paz Beach Suppression of Vera Paz Beach Suppression of isolated individual trees Alteration of the landscape

Environmental/ Mitigation Program Social communication program Indemnity of tradesmen Program for Re-establishment of the Vera Paz Beach leisure area Program for Re-establishment of the Vera Paz Beach leisure area Landscaping treatment

Occupation of the Vera Paz beach and change in the urban landscape To implement the Cargill River Terminal, it was necessary to eliminate and fill an urban leisure area (the Vera Paz beach).

This area belongs to Companhia Docas do Pará (CDP), the state port authority, and since 1988 it had been set aside for port use. It was cleared and filled by the CDP before the public bidding that granted the area to the terminal.

The Vera Paz beach was very important for the local community and widely used for leisure, because it was only 3km from downtown Santarém. However, its occupancy was not always ideal and it became an area of high criminality and even a series of rapes; it was also where the ferries loading and unloading cargos dumped their residues (mainly wood and packaging).

Because the Vera Paz beach was a local landmark, civil society questioned its elimination and demanded compensatory measures for the leisure area that was lost following the expansion of the port. To offset this elimination, Companhia Docas do Pará returned to the city part of the former beach and it is now planning to implement a new leisure area together with the local government.

This area will consist of a boardwalk with river containment; a grove with paths and native plant species, including mangueiras, azeitona preta, taperebazeiro, acaçu, calauari, samaumeira, uruazeiro, pitombeira, castanhola; tourist support áreas; snack shops; public restrooms; parasols; benches and playground over an area of 29,907m2, in addition to the

preservation of an area of 90,909m2 that is regularly flooded by the Tapajós River. The riverfront will also be extended on Tapajós Avenue (towards Cuiabá), with a boardwalk, food court, parking area, and handcraft fair.

The Vera Paz beach restoration project was prepared by the city government, which is in charge of this program and is conducting a public bidding for the construction works. Cargill will support the program with a US$200,000 donation.

Project for a leisure area

Área destinada à implantação do Parque Vera Paz

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Main impacts of the Terminal Archeology During the implementation phase, one of the key concerns of the local community was regarding the archeological assets associated with Santarém’s prehistory, represented by relevant archeological sites in the port area.

To confirm the existence of archeological evidence in the terminal area, specialists from the Emílio Goeldi museum surveyed the area before the construction and concluded that no archeological evidence was found there. During construction, archeologists monitored the progress of the work and found

Impact

Environmental Program / Mitigation

Interference in archeological assets.

Archeological Salvage Program.

no material of archeological interest during excavation.

On the other hand, in the area of direct influence, outside the grain terminal but within the property of Companhia Docas do Pará, there is an important archeological site. In order to preserve this site, Cargill Agrícola S.A. is joining CDP and the Pará Federal University to carry out a major archeological project within the port of Santarém, including an archeological salvage program, which is detailed in the EIA.

TAPAJÓS RIVER

LEGEND

Archeological site occupies the green areas

Building

Tanks

Curb

Slope

Road limit

Trough channel

Limit of areas Wall Fence Margin Area of environmental and cultural preservation – A = 3865 m2 (4623 yd2) Glebes conceded to Cargill Expansion area Archeological sites

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Farm property concentration and migration of smallholders

A review of migration of farmers associated with soybean farming in the AII

When compared to traditional crops, soybean requires larger areas that can be farmed mechanically. To meet this requirement, local and outside soybean farmers purchased neighboring properties to increase their farmland, which lead to a concentration of farm property in the Santarém and Belterra region. Smallhoders who sold their land had different outcomes. A survey conducted by a CPEA team of urban and rural communities found that smallholders who migrated did not manage to find formal jobs or start another type of income earning activity.

Some invested in rural properties, other in small businesses, and others still got jobs on farms or in the city. The migration of the rural population to Santarém’s urban areas happened on a scale similar or smaller than that seen in other regions of that state or of Brazil’s North region, and it is a sign of people yearning for better conditions of life associated with the “benefits” available in urban areas.

Impact

Environmental Program / Mitigation

Farm property concentration and migration of smallholders Social conflicts triggered by land issues.

Support Program for the Sustainable Rural Development Plan Social Communication Program; Support Program for the Responsible Soybean Project.

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Main impacts of the Terminal

Impact

Deforestation and pressure to settle in deforested areas.

Deforestation The increase in soybean farmland as well as other crops that are heavily mechanized result in deforestation of some forest remains of the AII. This is the main concern of the community and environmental authorities.

Isolated deforestation for planting happened in the region even before the installation of Cargill in Santarém. This happened based on the expectation that farming would come to this region in the wake of the paving of BR-163. This concern of soybean farmland encroaching on the Amazon forest led to the “Soybean Moratorium” in 2006, which was an international commitment of soybean traders and processors not to buy any product grown in deforested areas of the Amazon biome that did not comply with the environmental legislation.

Even before the Moratorium (to which Cargill was a signatory), the company already operated in partnership with The Nature Conservancy (TNC) and the Rural Labor Union of Santarém on the Responsible Soybean Project, which set the goal of buying soybeans only from properties that complied with Brazilian forest protection regulation. While this decision initially reduced the number of local farmers who sold soybeans to Cargill, it proved effective to cut back deforestation for soybean farming in the region. This measure designed to

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curb deforestation, combined with measures to restore preservation areas in properties that are part of the project, is intended to set the foundations for environmentally responsible agriculture in the terminal’s area of influence, and is supported by farmers of other municipalities in the area. The protection of forests in properties certified by Cargill, and which are part of the project, will be monitored by the State of Pará Environmental Secretariat (SEMA) and technologically supported by TNC, using satellite images, which will ensure its effectiveness over the long term.

Soybean farming mostly takes place in areas that were originally deforested in the 1970s. While there has been isolated deforestation, farming of soybeans and other seasonal crops does not reflect directly in the deforestation trend.

Producers and Cargill soy purchase figures at Para state from 2003 until 2009

Environmental Program / Mitigation Cargill’s commitment to the Soybean Moratorium and the implementation of the Support Program for Responsible Soybean Program.

This is because soybeans are usually grown in areas previously deforested for vegetation extractivism or ranching purposes. The river basins where soybeans are grown have a diverse occupancy and feature important forest remains, which should be protected.

Protected areas in AII total 57% of the overall area. According to the Ecological and Economic Zoning of BR-163 and BR-230, the land suitable for farming, particularly grains, totals 7.5 million hectares, or 22% of the areas of the municipalities in question (except Óbidos and Alenquer). Out of this share, only 17.9%, or little over one million hectares, are currently occupied, mainly by pastures (80.6% of the area used). Soybeans occupy only 0.46% of the area that in theory could be expanded for farmland without deforestation.

Higher truck traffic

While the demand for activities associated with road transport related to the implementation and current operation of the terminal at present has a minor impact, it will become relevant after BR-163 is paved, when the flow of soybean laden trucks will increase considerably.

To avoid inner-city traffic problems and its associated inconvenience to residents, it was agreed that CDP together with Cargill will implement a truck parking area outside the city (a measure already included in SantarÊm’s master plan).

Trucks will be held back at that location and only cleared for unloading by radio. This parking area would provide some essential services for truckers (meals, restrooms, mechanics, etc.) and would control truck conditions (noise and smoke emissions, falling products, etc.). It would also provide health tips and control prostitution.

Impact

Environmental Program / Mitigation

Interference in the regional road system and higher risk of accidents. Interference in city traffic.

Control Program for Grain Truck Traffic Environmental Control Program for Construction Works; construction and parking and waiting area outside the city.

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Main positive impacts Benefits

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Job and income creation: The implementation phase created about 500 direct jobs and probably other 500 indirect jobs in Santarém’s urban area. Currently, the terminal employs 142 people, including employees (70) and outsourced staff (72). Cargill Agrícola S.A. employees work in the operational, administrative, and commercial areas. Outsourced staff are in charge of facilities maintenance. This workforce represents nearly R$ 4.5 million in revenues every year, which increased income in Santarém. In addition to the direct jobs associated with the project, indirect jobs are also created in production, logistics, and grain exports, including transportation, general services, maintenance, canteen, security, cleaning, pest control, and grain sorting.

It is estimated that along the supply chain of the soybeans exported through Santarém a total of 2,800 indirect jobs are created, and producing income totaling R$65 million per year. This is spread over many activities that are part of the regional grain production, transportation, heavy mechanics, light mechanics, real estate, financial, training, science and technology research, food supply, fuel supply, technical assistance, social communication, electricity, supply of office material and operational material, storage, and other services. The income produced in the municipalities of Santarém and Belterra is visible in the expansion of the local GDP and consequent increase in federal and state tax revenues. This has brought more money particularly to Santarém and has encouraged new investments in production activities.

Better opportunities to ship locally and regionally produced soybeans to international markets, further aided by the different harvest timing in relation to the Northern hemisphere and considerable reduction in shipping costs. Soybeans transported by river provide an important environmental contribution by reducing the use of fuel

necessary to truck the grain to the ports in Brazil’s Southeast region.

Encourage production of farmers with small and medium-sized properties: This type of production could increase after the expansion, when the terminal will be able to operate with more than one product (such as corn). The proximity to the terminal has improved sale conditions for soybeans produced in the Santarém and Belterra area, increasing farmers’ incomes.

Development of a port infrastructure in Santarém: Cargill’s investment in infrastructure represented a technological advance for the port of Santarém. This investment includes the installation of the pier; grain handling equipment and peripheral systems (conveyor belt systems, grain pre-cleaning system, loading and unloading elevators, truck dumpers, etc.); electrical substation and electrical infrastructure; grain warehouse; raised water reservoir; internal road system; etc.

Cargill’s terminal added the capacity to handle solid bulk agricultural commodities, in addition to the general cargos, liquid bulk commodities, and timber the port of Santarém already handled.

This additional infrastructure will remain in the port, even after the concession expires. Cargill’’s example and standards of quality and social and environmental responsibility will have a positive affect on other port operators and indirectly help companies and contractors providing port services settle locally. Cargill’s involvement in the salvage of archeological evidence found in the CDP area will also ensure better occupancy of the port of Santarém, opening up new areas for port use after the archeological material is recovered.

Cargill’s involvement in the salvage of archeological evidence found in the CDP area will also ensure better occupancy of the port of Santarém, opening up new areas for port use after the archeological material is recovered.

Table – summary of impacts Impact

Description

Assessment

Mitigating measures

EXPECTATIONS OF THE COMMUNITY

The community feels insecure and anxious because of the announcement that Cargill would implement and expand a terminal, resulting in the loss of the Vera Paz beach.

This impact is negative, spread throughout the AII, temporary, and immediate. It is reversible and last only for the time necessary to address all doubts and communicate the project to all stakeholders. It is of great magnitude because it affects the populations of the AII municipalities; it is highly relevant and significant.

Social communication program that informs population of the project.

REMOVAL OF BUSINESSES FROM VERA PAZ BEACH

To expand Santarém’s port, it was necessary to clear Vera Paz beach, remove businesses, and cancel concessions given prior to the implementation of the Cargill terminal; this had a negative effect on the income of these business owners.

This impact is negative, direct, permanent, and irreversible, but of low magnitude, low relevance, and low significance because only a few stalls were removed.

At the time the businesses were removed, Companhia Docas do Pará (CDP) indemnified the stall owners for the betterments they built along the beach.

ELIMINATION OF THE VERA PAZ BEACH

To implement the Cargill Solid Bulk Commodities River Terminal, it was necessary to eliminate and fill an urban leisure area (the Vera Paz beach).

This impact is negative, permanent, and partially reversible.

Although the area filled accounts for a relatively small share of the Santarém riverfront, the impact is of medium magnitude, relevance, and significance, because a city landmark would be irreversibly eliminated.

To offset the elimination of this Santarém leisure area, the city is planning to create a new leisure area (Vera Paz Park) for the local community.

LOSS OF HABITAT

To implement the terminal, it was necessary to eliminate vegetation and occupy the property, which caused the loss of habitat for the existing animal life. The habitat included open areas, anthropic fields, and a river beach.

This impact is negative, direct, permanent, and irreversible.

Located in the ADA, this impact has small magnitude, low relevance, and low significance because the area was deteriorated and its animal life was associated with heavily changed environments.

Landscaping using species that attract animal life by providing food and habitat for the local fauna.

ELIMINATION OF ISOLATED TREES

To implement the terminal, the clearing of vegetation included some individual trees not native to the region. The expansion will not require any additional clearing because the area is already prepared to receive the facilities.

This impact is negative, direct, permanent, and located in the ADA. It is irreversible, of small magnitude, low relevance, and low significance because these were isolated non-native trees in an area fully occupied by man.

To minimize this impact, landscaping is suggested.

DISTURBANCE OF ANIMAL LIFE

The expansion as well as the operation of the terminal will imply in greater activity, which will increase noise and disturb existing animal life. During operation of the terminal, higher truck traffic could increase the number of animals run over in these roads.

This impact is negative, indirect, and permanent, because it will happen over the lifetime of the project. The impact is located in the ADA, in the immediate surroundings (AID), and even in the AII. It is considered irreversible, of low magnitude, low relevance, and low significance.

Noise Monitoring Plan

HIGHER EROSION AND SILTING OF DRAINING CHANNELS

The need for earthmoving during the expansion of the terminal may cause erosion on soil surfaces that have been cut or filled and are cleared of vegetation. The resulting sediments may flow to bodies of water and cause silting.

This impact is negative, direct, and immediate, from the beginning of the earthmoving phase. It is restricted to the intervention areas; it is also local, easily reverted, and temporary. The area affected is small, the magnitude is small, and both relevance and significance are low.

Construction Work Environmental Control Program, with prevention measures and control of erosion, surface runoff, and silting.

CHANGE IN THE SURFACE DRAINAGE

Change in the natural drainage of rainwater within the project’s area, in result of vegetation clearing, cleanup, and earthmoving, which includes cutting, excavating, and filling, as well as the erection of the terminal’s structures, equipment, and buildings.

This impact is negative, direct, local, permanent, and irreversible. It is certain and immediate, starting from the beginning of the earthmoving phase. Because of the small area affected, it is of small magnitude, low relevance, and low significance.

Implementation and maintenance of an efficient surface rainwater drainage system, combined with erosion control and protection.

INTERFERENCE IN THE LOCAL RIVER SILTING DYNAMICS

The interventions in the Tapajós River can be consider insignificant considering the size of the river. It was not necessary to dredge the riverbed; the structures within the river were built using indirect foundations, consisting of reinforced concrete piles with no continuous physical barrier to the river’s natural flow.

This impact is negative, direct, local, and immediate, because it happened soon after the implementation of the terminal. It is also permanent and irreversible. Considering the above, its magnitude is considered insignificant and its relevance and significance are low.

Does not apply in this case.

INTERFERENCE IN ARCHEOLOGICAL ASSETS

The changes the planned project could cause in archeological assets, preventing this heritage from being passed on to future generations.

Specialists surveyed the site and found not material of archeological interest.

This impact is negative, direct, and permanent. If it happened, the impact would have great magnitude and high relevance and significance, because its effects would be permanent and irreversible, affecting assets of great cultural and historical value.

Cargill Agrícola S.A. took part in the “Project to Salvage the PA-ST-42 Site: Port of Santarém” and reached an agreement with the parties (CDP, IPHAN, UFPA) interested in preserving archeological assets in other parts of the CDP.

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Table – summary of impacts Impact

30

Description

Assessment

Mitigating measures

CHANGES IN LANDSCAPE

The changes brought by the building of the installations of the river terminal resulted in the elimination of the Vera Paz beach and changes in the urban landscape. The area occupied by the terminal is in the line of the sunset and therefore changes an important sight.

This impact is negative, direct, permanent, and irreversible; it will have a medium magnitude and low relevance if corrective measures are implemented to reduce the project’s interference in the landscape.

To mitigate changes in the urban landscape a program was suggested to recreate a leisure area in the Vera Paz beach vicinity.

HIGHER NOISE LEVELS

The level of noise and its effects on the workers and the population are associated with the type and degree of soil occupancy. The activities presently carried out in the Santarém port area are mainly responsible for the noise in the region.

This impact is negative, direct, and of known occurrence.

It is also local, restricted to the ADA, reversible, and temporary during the construction phase, but permanent during the terminal operation phase. It has immediate occurrence, little magnitude, and low significance and relevance.

Louder work was restricted to some hours and preventive measures were adopted under the Construction Work Environmental Control Program. During the operation phase, noise is measured regularly.

CHANGE IN AIR QUALITY

Emission of combustion gases and particulate material into the atmosphere in result of the traffic of heavy machinery and vehicles in the construction site and surrounding roads, earthmoving and handling of construction material.

This impact is negative, direct, temporary, of short duration, and reversible. The environment returns to the prior conditions as soon as the activity of vehicles and motors ceases. It has a certain and immediate occurrence, little magnitude, and low relevance.

Emission controls for gases and particulate material. During the operation phase, the company suggested an Air Quality Environmental Control and Monitoring Program to ensure the proper operation and the compliance of all emission standards.

HIGHER PRODUCTION OF SOLID RESIDUES

The construction site produces solid residues. Once the project is expanded, we do not expect an increase in the volume of residues in general, except those related to the products handled in the terminal (grain).

This impact is negative, direct, immediate, and reversible by adopting preventive measures; it is also local and temporary, because it ends as soon as the construction work is concluded. It has small magnitude and low relevance because of the type and volume of material discarded.

Application of solid residue management procedures during the construction and operation phases, in accordance with the Construction Work Environmental Control Program and Solid Residue Management Plan.

CHANGE IN QUALITY OF SURFACE WATERS

Changes in the physical and chemical characteristics of the bodies of water because of soil particles, construction site residues, accidental spills of oil and grease, and improper disposal of solid residues.

This impact is negative, direct, immediate, reversible, temporary, and local; it has small magnitude and low significance and relevance.

Preventive measures to control surface runoff, control the production and final disposal of solid residues and of liquid waste in the activities performed in the construction site and the terminal.

CHANGE IN QUALITY OF THE SOIL AND GROUNDWATERS

Changes in the soil characteristics as well as physical and chemical characteristics of the groundwater, in result of the seeping of pollutants produced in the construction site.

This impact is negative, direct, temporary, and reversible. It has a small magnitude and low relevance and significance because of the nature and size of the construction work.

Preventive measures to control surface runoff, control the production and final disposal of solid residues and of liquid waste in the activities performed in the construction site and the port.

CONTAMINATION HAZARD BY ACCIDENTAL OIL SPILLS

The operation of boat engines and refueling can cause leaks and spills that could introduce in the water a load of organic compounds, contaminants like polycyclic hydrocarbons, and affect the quality of the surface water.

This impact is negative, direct, immediate, reversible, and temporary, with the possibility of spreading beyond the ADA limits. The lifespan of these contaminants and the magnitude of this impact could make it an event of medium significance.

Expansion of the Water Quality Monitoring Program, which would also assess HPA parameters and use procedures to comply with Law no. 9966/00.

ATTRACTION OF INFECTIOUS AGENTS AND ANTHROPIC ANIMAL LIFE

Grain handling and storage during the terminal activities could attract vermin (insects, rats, and others), which can damage equipment and spread diseases, and anthropic animal life.

This impact is negative, direct, and certain; its duration is permanent because it is irreversible; it is located in the ADA and is of small magnitude and low relevance and significance.

Maintain housekeeping and pest control practices already in place.

DEVELOPMENT OF A PORT INFRASTRUCTURE IN SANTARÉM

The installation of Cargill Agrícola S.A.’s Solid Bulk Commodity River Terminal expanded the cargo handling and shipping capacity of the Santarém port. The investments and improvements in the terminal will remain part of the existing port even after the concession expires.

This impact is positive, direct, and certain; it is located in the AID, irreversible, and immediate. It has a medium magnitude and high relevance and significance.

Not applicable.

REDUCTION OF LOGISTIC COSTS AND INCREASED COMPETITIVENESS OF BRAZILIAN SOYBEANS IN THE INTERNATIONAL MARKETS

The construction of the terminal in this region has enabled agricultural output to be shipped more competitively to international markets because of the lower cost of river transport compared to truck transport.

This impact is positive, direct, and certain; it has a permanent duration, is immediate and spread over the AII, and it is irreversible; it is of medium magnitude and high relevance and significance.

Not applicable.

Impact

Description

Assessment

Mitigating measures

ATTRACTIVENESS TO SOYBEAN FARMERS

The expectation of having BR-163 fully paved and improved, combined with the farming potential of land located in anthropized areas of the Santarem plateau, has attracted to this region a number of soybean farmers with considerable experience in producing this commodity. This trend was confirmed with the implementation of the Cargill terminal in Santarém, which resulted in changes to population dynamics, economic activity, and income generation.

This impact is positive, direct, and certain; it has a permanent duration, is immediate and spread over the AII, and it is reversible; it is of medium magnitude and high relevance and significance. The negative side of this impact is related with the cultural conflicts between newcomers and the local community, as well as the higher farm property concentration necessary to produce soybeans profitably.

To mitigate this impact, the guidelines suggested by Responsible Soybean Project Support Program should be complied with strictly.

FARM PROPERTY CONCENTRATION AND MIGRATION OF SMALLHOLDERS

The farm property concentration process is the result of the expanding agricultural frontier, which in turn results in higher property prices that drive smallholders to migrate to cities or other areas where land costs less. This migration has increased with better transport infrastructure, farm mechanization, and the boom brought by agribusiness to this region. The implementation of Cargill was only an indirect component of this process.

This impact is negative, indirect, and permanent; it occurs immediately and is spread throughout the AII. Considering the size of this process, the impact of the project itself is relatively small, with a small magnitude, low relevance and significance.

To mitigate the probable effects of building the terminal, the company proposed the Sustainable Rural Development Plan Support Program, which includes measures to encourage family farming and more farm jobs in result of high agricultural activity.

SOCIAL CONFLICTS TRIGGERED BY LAND ISSUES

The building and the beginning of the operation of the Cargill Agrícola S.A. Solid Bulk Commodity River Terminal has been blamed as the source of conflicts between grain farmers and other farmers, although official records are not available to confirm these conflicts.

This impact is probable negative, indirect, and spread over the AII; however, it can be reverted and is of medium magnitude and low relevance and significance.

To minimize the effects of this impact, the following programs are suggested: Social Communication Program; Responsible Soybean Project Support Program; and Sustainable Rural Development Plan Support Program. The local and state programs have been using this initiative to ensure proper land titles.

BETTER OPPORTUNITIES TO SHIP LOCAL SOYBEAN PRODUCTION

The implementation of the Cargill Agrícola S.A. Solid Bulk Commodity River Terminal has enabled the sale of part of the soybeans produced in municipalities close to the terminal, which has provided a boost to local economy.

Considering present and future terminal operation, the impact is positive, direct, and spread to the AII. It is considered permanent and irreversible, of low magnitude, medium relevance, and medium significance.

To regulate procedures for the production, purchasing, and shipping of soybeans, Cargill entered a Commitment Agreement for Soybean and Corn Purchasing Procedures for the Santarém and surrounding region, to ensure compliance with the Responsible Soybean Program.

CHANGES IN THE PROFILE OF AGRICULTURE AND THE EFFECTS ON FOOD PRODUCTION

Official data on food crops (corn, manioc, and beans) show that farmland growing these crops has either stayed level or increased in the AII from 1998 to 2008. Soybean production grew as of 2003 and has had little effect on the production of food crops. As farms have become mechanized and farmers more capitalized, the profile of agriculture in this region has changed rapidly. Field data suggest a diversity of crops in local farms, including those growing soybeans, with the production of food crops for their own consumption or for local trade.

Considering both the present situation of the terminal as well as its future expansion, which would enable it to handle corn, the impact of the project is positive, direct, and spread in the AII; it is permanent and irreversible, and of medium magnitude, relevance, and significance.

Although the impact is positive, it would be recommendable to implement measures that ensure the development of a sustainable model for regional agriculture, as presented in the Sustainable Rural Development Support Program.

DEFORESTATION AND PRESSURE TO SETTLE IN DEFORESTED AREAS

The expansion of soybean farming happened mostly in land that had been farmed earlier with perennial or seasonal crops or pastures, or occupying secondary growth forests. With the implementation of the Responsible Soybean Program, deforestation should revert and forested areas should expand.

This impact is negative, indirect, and certain; it is spread throughout the AII. It is reversible to the extent of the progress of the Support Program for Responsible Soybean Program. This impact is considered of small magnitude. However, considering the importance of the Amazon region, it is also considered of high relevance and significance.

The Responsible Soybean Project Support Program has been working to mitigate deforestation resulting from the expansion of soybean farming

INTERFERENCES IN RIVER SUB-BASINS IN RESULT OF THE EXPANSION OF SOYBEAN FARMING

All properties supplying soybeans to Cargill today are committed to preserving (and restoring, if necessary) riparian forests that are part of the permanent protection areas (APP) of rivers and springs, to reduce the risk of having pesticides or fertilizers – or even soil particles – transported to the region’s rivers.

This impact is negative, indirect, and spread throughout the AII. It is partially reversible to the extent that APPs are restored and legal reserves are established, as provided in the Responsible Soybean Project Support Program. This impact is considered of small magnitude, relevance, and significance.

Encouragement for permanent technological upgrading and farmer awareness using the initiatives provided under the Responsible Soybean Project Support Program and communicated in environmental restoration initiatives carried out by NGOs.

ENCOURAGE PRODUCTION OF FARMERS WITH SMALL AND MEDIUM-SIZED PROPERTIES

A stronger local economy has created jobs and produced income in the farming sector, which has encouraged small and medium sized farming properties to upgrade their production and sell their grains, ensuring the shipping of the crops produced locally.

This impact is positive, indirect, and spread throughout the AII; it occurs immediately and is irreversible, of medium magnitude, and high relevance and significance.

The Sustainable Rural Development Plan Support Program is suggested to maximize job creation and income.

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Table – summary of impacts Impacto

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Descrição

Avaliação

Medidas Mitigadoras

JOB AND INCOME CREATION

This part of the construction work will produce between 35 and 40 indirect jobs over 10 months. This labor force will be hired by a specialized contractor. Since this labor force must not be highly skilled, this will boost local businesses and services, benefiting Santarém’s low-income population.

This impact is positive, direct, temporary, and located in the AID; it is reversible, immediate, of small magnitude, and of low relevance and significance. During the operation phase, the impact is positive, direct, certain, and permanent, lasting for the length of the project’s lifespan. This impact is considered of high magnitude, relevance, and significance.

Since the impact is positive, no mitigating measures are necessary.

HIGHER TAX REVENUES

During the terminal expansion phase, the acquisition of products and services, as well as the hiring of labor, will increase tax revenues at the federal, state, and especially local levels, which will greatly benefit public finances.

The impact is positive and direct. It is both temporary (during construction) and permanent (during operation). It is located in the AID, irreversible, and immediate. It has a low magnitude, relevance, and significance.

Since the impact is positive, no mitigating measures are necessary.

GREATER ECONOMIC ACTIVITY

Economic activity of Santarém and other municipalities of the AII that sell soybeans (mainly Belterra) have more money in circulation in result of soybean trading, wages, service contracts with local companies, purchases of supplies, taxes, port fees, and others.

Greater economic activity represents an impact that is positive and direct; it has a permanent duration, is immediate and spread throughout the AII, and it is irreversible; it is of high magnitude, relevance, and significance.

Since the impact is positive, no mitigating measures are necessary.

GREATER DEMAND OF INFRASTRUCTURE AND SERVICES ASSOCIATED WITH RIVER TRANSPORT

The terminal increased traffic of boats, barges, and ships unloading and loading goods for the foreign market. The demand in the river transport sector does not require government investments.

This impact is positive, indirect, probable, permanent, and spread in the AID; it is irreversible, immediate, of small magnitude, and of low relevance and significance.

Not applicable.

INTERFERENCE IN BOAT TRAFFIC AND HIGHER RISK OF ACCIDENTS

There is considerable boat traffic. An increase in the number of boats could cause conflicts of use and disputes for mooring space (particularly small watercraft). This could lead to a higher risk of boat accidents in the Tapajós River.

This impact is negative, indirect, spread throughout the AID, permanent, and immediate. It can be reversed by control and signaling measures. It has a low magnitude, but medium relevance and significance.

Safety measures for boat traffic in the Tapajós River under the Social Communication Program as well as signaling and access control in areas near the terminal.

GREATER DEMAND OF INFRASTRUCTURE AND SERVICES ASSOCIATED WITH ROAD TRANSPORT

Currently truck traffic to the terminal is small and does not require any support structures because the vehicles leave after a short period. With the expansion, another 10,000 trucks should bring soybeans produced in western Mato Grosso. This creates the demand for support facilities (parking areas, repair shops, etc.) and road maintenance.

This impact is negative, indirect, and permanent; it occurs immediately but can be reversed. In this scenario, it has a large magnitude and high relevance; but is of medium significance within the overall urban and road context.

Building of truck parking areas outside the city, so that trucks can wait before coming into the city to unload soybeans in the terminal; the implementation of control and restriction measures for traffic and of use of city areas.

INTERFERENCE IN THE REGIONAL ROAD SYSTEM AND HIGHER RISK OF ACCIDENTS.

With more trucks coming to the terminal, overall traffic should increase, interfering in the regional road system and increasing the risk of accidents.

This impact is negative, indirect, permanent, and spread. It can be reversed by control and guidance measures. It has a great magnitude, and high relevance and significance.

Awareness measures specified in the Control Program for Grain Truck Traffic.

INTERFERENCE IN CITY TRAFFIC.

The expansion of the terminal will coincide with the paving of BR163. This will considerably increase the flow of soybean trucks and bring a number of associated problems, such as congestion, changes in air quality, and others.

This impact is negative, certain, indirect, and spread throughout the AID; it occurs immediately and is irreversible and permanent; it is of great magnitude, and high relevance and significance.

Construction of a parking area for waiting trucks (as provided in the Santarém Master Plan), together with the local government and CDP. Authorities will also have traffic education programs.

CITY SOCIAL CONFLICTS AND LIKELIHOOD OF GREATER PROSTITUTION AND CRIMINALITY

The expansion and the paving of BR-163 will increase the number of trucks to an average of 40 vehicles per day. This could lead to more social conflicts along this highway, close to urban areas, near parking areas, and in the vicinity of the port.

This impact is negative, indirect, permanent, and immediate. It can spread throughout the Santarém urban area. It has a medium magnitude but high relevance and significance.

Cargill is already developing a prostitution fighting program (Na Mão Certa); the Social Communication Program also brings awareness initiatives.

RISK OF ACCIDENTS WITH EMPLOYEES IN THE TERMINAL

Services associated with storage, loading, and unloading of soybeans, as well as maintenance work of facilities and equipment could cause work accidents.

This impact is negative, direct, permanent, reversible, and located in the ADA. This impact is considered of small magnitude, but high relevance and significance.

In addition to usual prevention measures, Cargill will continue implementing its Occupational Health and Medical Control Program (PCMSO).

Study of the possibility of decommissioning the Terminal The Reference Statement prepared by SEMA demanded that an alternative to be considered should be the decommissioning of the terminal. Accordingly, the EIA reviewed the following issues: • Would the decommissioning of the terminal revert the negative impacts?

• Would the decommissioning of the terminal revert the positive impacts?

• Would the decommissioning of the terminal produce positive impacts?

The negative impacts associated with the change in the use of the land and the implementation of infrastructure would not be reverted, because the Santarém port will continue. The negative impacts are the removal of businesses from Vera Paz beach, the elimination of Vera Paz beach, the loss of habitat, the removal of isolated trees, the disturbance of animal life, greater erosion and silting of draining areas, greater surface runoff, interference in the local dynamics of river silting, interference in archeological assets, changes in the landscape, and development of port infrastructure in Santarém.

The impact of the expectations the community has will not be reverted and there is also the negative effect of the expectations of the community and of investors in production activities in the Santarém region.

The negative impacts associated with the expansion of soybean farming in the Amazon biome are trends that should be reverted, but which could return in the medium term. With the paving of BR-163 and the implementation of soybean crushers in the state of Mato Grosso, soybean farmers will be attracted to the Santarém region in the medium term, regardless of the presence of the terminal. The indirect control on deforestation performed by Cargill through its

governance procedures would also cease.

The impacts that could revert in the medium term are the attraction of soybean farmers, concentration of farming properties and migration of smallholders, social conflicts rooted in land issues, greater opportunity to ship locally produced soybeans, change in the profile of agriculture and effects on the production of foods, deforestation and pressure to occupy forested areas, and interferences in the river sub-basins in result of soybean farming.

On the other hand, there are also positive impacts that will be reverted, all associated with economic development.

With the decommissioning of the terminal, the economic benefits resulting from its operation would cease. This would cause the loss of 140 direct jobs and negative effects in indirect jobs and the local economy. Investments in agriculture and river transportation would also decrease. The Santarém and Belterra farming industry would be the most affected, but there would also be negative effects on farmers of western Mato Grosso, which would have fewer selling alternatives.

The positive impacts are the reduction in logistic costs and the greater competitiveness of Brazilian soybeans in the international market, encouraging small and mediumsized farming properties, the creation of jobs and the generation of income, higher tax revenues, greater economic activity, higher demand for infrastructure and services associated with river transport.

If the Cargill terminal is decommissioned, the site might be used for other port activities, which could mean that some impacts may or may not continue with the new activity. Most of these impacts are of low significance or are properly controlled under the present situation.

These impacts are changes in noise levels,

changes in air quality, greater production of solid residues, change in the quality of surface waters, change in the quality of the soils and groundwater, risk of contamination by accidental oil spills, attraction of infectious agents and anthropic animal life, greater demand for infrastructure and services associated with road transport, interference in the regional road system and greater risk of accidents, interference in city traffic, city social conflicts and possibility of higher rates of prostitution and criminality, and risks of accidents with the terminal’s staff.

It was not possible to identify any positive impacts resulting from the decommissioning of the terminal other than those above. This does not consider any compensatory measures and the Cargill programs that would no longer be implemented. This includes Cargill’s contribution for the construction of the Vera Paz park and the application of conservation units of 0.8% of the value of the total investment in the project and to be carried out in the expansion using the Environmental Compensation Program.

It can be concluded that a possible decommissioning would affect several sectors of the economy in a negative, direct and indirect manner. Decommissioning would mean the total loss of a shipping and export channel for the local soybean output, which would affect the farming industry in general and the quality of life in the farms, in addition to causing a loss of jobs. On the other hand, most of the negative impacts would not be reverted because even if Cargill leaves, another port activity would probably take its place, causing similar impacts.

No positive impacts were found that could justify this measure. The EIA consequently recommends that the possibility of decommissioning the Cargill terminal in Santarém be disregarded.

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Environmental programs ENVIRONMENTAL PROGRAMS

The environmental programs recommended in the EIA describe the measures suggested to minimize, control, or offset the impacts caused by the terminal and present a basic structure consisting of objectives, rationales, general guidelines, suggested activities, timeframes, and responsibilities for execution. The table below briefly describes the programs in place since the terminal was established and the new programs suggested to mitigate the impacts identified by the EIA. OBJECTIVES

RESPONSIBLE PARTY

Social Communication Program

To guide social communication initiatives necessary to establish the conditions to explain to the public in general the company’s activities and the project, and to open a permanent communication channel between the company and the community.

Cargill

Environmental Education Program

To raise the awareness of the workers in the project regarding the importance of attitudes that preserve and enhance the environmental quality of the project, to promote education initiatives, and to disseminate and provide information to the surrounding communities.

Cargill

Cargill Construction Work Environmental Control Program

To ensure environmental compliance of the expansion work, to prevent and control any negative impacts.

Cargill

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Environmental Control and Monitoring Program

To set measures to assess, control, and monitor air emissions, noise, and water quality to prevent impact related to air pollution, noise pollution, and chemical, physical, and biological changes in the surface and underground waters in the project’s region.

Solid Port Residues Management Plan

To implement procedures to separate, collect, transport, and dispose all solid residues produced by the terminal and by vessels. The current plan was reviewed by Brazil’s National Health Surveillance Agency (ANVISA).

Vera Paz Beach Leisure Area Restoration Program

To restore to the city of Santarém a leisure area in the remaining stretch of the Vera Paz beach, in order to partially revert the impact of eliminating the beach to expand the port.

River Terminal Visual Impact Mitigation Program

To establish measures to mitigate the effects of the installation of the terminal on Santarém’s urban landscape. The idea is to have a public contest for ideas to develop a project to improve the terminal’s impact on the landscape.

Cargill/ CDP

Cargill/ City of Santarém/ CDP Cargill

ENVIRONMENTAL PROGRAMS

OBJECTIVES

RESPONSIBLE PARTY

Responsible Soybean Project Support Program

To ensure environmental compliace of farmers with business ties with Cargill within their area of influence in the state of Pará, based on existing legislation and sound agricultural practices.

Cargill/ TNC

Sustainable Rural Development Plan Support Program

To strengthen initiatives to support family farming as well as small and medium sized farm properties that were implemented by the Santarém Sustainable Rural Development Plan, in order to reduce the concentration of farming properties and migration to cities and to ensure the production of different food crops and other traditional crops in this region.

Cargill/ SAGRI/ CDRS

Grain Truck Traffic Control Program

To implement a parking area to organize the flow of trucks to the terminal, in order to avoid queues and parking on public roads, and to reduce the number of accidents and disturbance to the community.

Prostitution Control and DST Prevention Program

To promote the health, safety, and welfare and to combine the efforts of different stakeholders to fight child prostitution and DST in Brazilian roads and ports.

Cargill/ CDP/ City of Santarém

Occupational Health Medical Control Program

To prevent damage to and aggravation of worker health by early identification of the risks found in the facilities as well as in the process.

Cargill

Archeological Assets Protection Program

To investigate sites and recover material of interest, in addition to establishing areas to preserve archeological assets. This also includes heritage education initiatives designed to raise awareness of the population on the importance of preserving local archeological assets; this would extend to both teachers and students.

Cargill/ CDP/ UFPA

Environmental Compensation Program

To set aside 0.8% of the total investment in the terminal and its expansion for the local environmental authority (SEMA). In accordance with the law, the funds will be used in Pará’s conservation units; the state environmental authority would define how the funds would be used. The amount was computed based on the criteria set by SEMA IN no. 006/07. The preliminary amount is estimated in R$414,000.

Cargill/ CDP

Cargill/ SEMA

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The initiatives for soybean governance include a set of joint principles, procedures, and programs adopted by the different stakeholders of the soybean industry in the Amazon biome, in order to combine farming development with preservation of the region’s ecosystems.

Cargill’s initiatives to support the soybean governance in the Amazon biome include:

1. Support to the Soybean Moratorium, a program established by the Brazilian Association of the Vegetable Oil Industry (ABIOVE) and the Brazilian Association of Grain Exporters, as well as their members, including Cargill. Since 2006 this group has been committed not to trade any soybean produced in areas of the Amazon region that were deforested after that date.

2. Implementation of the Responsible Soybean Project, an initiative designed to promote the production of soybeans in an economically feasible, environmentally correct, and social just manner. This would include measures to ban deforestation of protected areas (APPs and legal reserves), satellite monitoring of soybean farmland, the responsible use of pesticides, friendly and fair dealings with local communities, proper labor practices, and fair wages to workers.

3. Support the requirement of the Rural Environmental Registry (CAR), an initiative established by the State of Pará Environmental Secretariat (SEMA) in 2009. This is an electronic record of all rural properties using georeferencing of their whole area, defining areas of permanent preservation (APPs) and legal reserves (RLs), in order to ensure compliance of farming properties.

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Fotos: Steve Niedorf

Initiatives for soybean governance in the Amazon region

The CAR certificate helps ensure farmers have proper title of their land and provides a mapping and a record of these properties’ environmental obligations.

4. The adoption of criteria set under the Ecological and Economic Zoning (ZEE), whose objective is to align economic production with environmental management. It creates zones of use according to the physical and environmental potential of each area.

The state of Pará has two Ecologic and Economic Zonings (one for the state and the other for the areas of influence of the BR-163 and BR-230 highways), which suggest suitable activities for each zone, considering local environmental needs. According to the ZEE, in the project’s Area of Indirect Influence (AII), only about 22% belong to Group 1 – areas with agricultural potential, particularly grain, which is where soybean could be grown.

Based on these principles, Cargill is committed to buying soybeans at its Santarém river terminal only from farmers that comply with the state of Pará’s soybean governance guidelines. Accordingly, it has set internal procedures that must be followed when buying soybeans.

Foto: JosĂŠ Benito Guerrero

All soy farms are located in a agriculture area according the new ZEE – EconomicEcologic Zoning

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Key environmental laws considered in preparing the EIA

The Federal Constitution: It states that “all have the right to a balanced environment, which is an asset of common use and essential to a healthy life” and it puts the public authorities in charge of protecting animal and plant life, preventing any practice that jeopardizes an environmental function or causes the extinction of a species.

Resolutions of the National Environmental Council (CONAMA) no. § 001/86 and no. 237/97: These are considered the main regulations that govern the work of public authorities nationwide, particularly regarding the need for an Environmental Impact Study (EIA) and its respective Environmental Impact Report (RIMA), which are necessary to ensure the environmental feasibility of a given project or activity. Both resolutions state that any projects and activities that potentially change the environment, including ports and river terminals, are subject to environmental licensing. The competent authority to issue the license for Cargill’s Grain River Terminal is the State of Pará Environmental Secretariat (SEMA).

CONAMA Resolution no. 237/97 states that environmental licensing procedures must include a city certificate stating that the location and type of project or activity comply with existing legislation regarding use and occupancy of soil, and, as applicable, the permit to remove vegetation and grant use of water, as per competent authorities.

Federal Law no. 4771/65: This law establishes the Brazilian Forest Code and states that the exploitation of forests and later formations, within the public and private spheres, will depend on prior approval of the competent state authority of the SISNAMA,

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as well as on the use of suitable exploitation, replacement, and management techniques considering the different ecosystems and vegetation.

Federal Law no. 5197/67: It states that animals of any species, in any phase of their development and which naturally live free, are wild animal life, and that they, as well as their nests, shelters, and natural breeding grounds are the property of the nation and cannot be used, chased, destroyed, hunted, or trapped.

Federal Law no. 9433/97 (Water Law): It establishes the National Water Resources Policy, the National Water Resources Management System, and the right of use of water resources. The National Water Resources Council, which is part of the National Water Resources Management System, establishes the National Water Division, designed to guide, base, and implement the National Water Resources Plan (PNRH). Established by Federal Law no. 9984/00, the National Water Agency (ANA) is the authority in charge of these issues.

CONAMA Resolution no. 357/67: It states that water management initiatives, such as the granting and the charging of the use of water, or environmental management initiatives, such as licensing, conduct adjustment agreements, and pollution control, must be based on intermediary progressive and final goals approved by the competent authorities for the respective river basin or specific body of water.

IBAMA Administrative Rule no. 348: This sets national air quality standards and their respective methods of reference; it also expands the number of parameters

employed. The standards set in this administrative rule were submitted to CONAMA and changed into CONAMA Resolution no.

003/90.

State Law no. 7243/09 – Ecological and Economic Zoning of the Area of Influence of BR-163 and BR-230 Highways in Western State of Pará: It establishes the Ecological and Economic Zoning of the Area of Influence of BR-163 (Cuiabá-Santarém) and BR-230 (Transamazon) Highways in Western State of Pará: The Western ZEE establishes the sub-regions of Amazon River Channel, Lower and Medium Tapajós River, Eastern Transamazon, and Jamanxim Valley, which are called Management Areas; these are subdivided into Management Zones: • Productive Areas, subdivided into Economic Activity Consolidation Zone and Economic Activity Expansion Zone; • Controlled Use Areas, subdivided into Environmentally Sensitive Zone and Socially Sensitive Zone; • Special Areas, called Conservation Zones; and • Critical Areas, called Restoration Zones.

In consolidation or expansion zones, no activities are recommended that imply new deforestation of primary or secondary vegetation in the medium and advance stages of regeneration. In the socially or environmentally sensitive zones, the intense use of the land is discouraged in behalf of activities that benefit the existing local populations, and which do not demand the intensive exploitation of natural resources or the elimination of native vegetation.

Other laws and regulations taken into consideration • Law no. 6938/81 – National Environmental Policy.

• State Law no. 5887/95 – Pará Environmental Policy.

• Federal Decree no. 4297/02 – Criteria for Ecological and Economic Zoning in Brazil – ZEE. • State Law no. 6745/95 – State of Pará Ecological and Economic Zoning.

• Federal Decree no. 6288/02 – which governs the Ecological and Economic Zoning in Brazil – ZEE. • Law no. 7243/09, which regulates the Ecological and Economic Zoning of the Area of Influence of BR-163 and BR-230 Highways.

• State Law no. 5630/90 – Regulations to preserve water bodies, particularly springs.

• State Law no. 6381/95 – Pará Water Resources Policy.

• State Law no. 6462/02 – State Forest (and other vegetation forms) Policy.

• State Decree no. 2141/02 – Forest Policy, including restoration of changed areas.

• State Law no. 6963/95 – management of public forests (IDEFLOR).

• State Law no. 5977/95 – State of Pará Animal Life Protection.

• IN-MMA 03/01 – Deforestation permits in rural properties of the Legal Amazon region.

• Federal Decree no. 5975/06 – Exploitation of Forests and Later Formations, including forest replacement.

• Federal Decree no. 6321/07 – Prevention, monitoring, and control of Amazon region deforestation.

• State Decree no. 802/08 – Zero Extinction Program.

• Federal Law no. 4771/65 – Definition of Permanent Preservation Areas.

• State Law no. 5864/94 – APPs and other natural forms of vegetation

in watershed areas.

• Law no. 9985/00 – It establishes the National Nature Conservation Units System and states other actions, including environmental compensation under licensing and works and activities.

• Federal Decree no. 5758/06 – Which establishes the National Strategic Plan for Protected Areas.

• Federal Decree no. 4340/02 – Which regulates articles of Law no. 9985, dated Jul/18/00, and covers the National Nature Conservation Units System (SNUC) and other actions.

• Federal Decree no. 6848/09 – Which changes and adds provisions to Decree no. 4340, dated Aug/22/02, to regulate environmental compensation.

• REGULATORY INSTRUCTION NO. 006/07 – GAB/SEMA – It states procedures and ranking environmental impact in the case of licensing of projects with considerable environmental impact.

• Federal Law Decree no. 25/37 – Protection of the National Historical and Artistic Heritage.

• State Law no. 5629/90 – Protection of historical, artistic, natural, and cultural heritage of the state of Pará, including indigenous culture.

• Federal Law no. 7668/88 – Definition of quilombo land.

• Federal Law no. 5371/67 – Indigenous policy.

• Decree no. 2508/98 – International Convention to Prevent Ship Pollution.

• Decree no. 2870/1998 – International Convention on the Cooperation on Oil Pollution (OPRC).

• Federal Law no. 8630/93 – Legal Structure to Exploit Ports and Port Facilities.

• NORMAM-20, dated Oct/15/05 – Maritime Authority Regulation on

the Management of Ships’ Ballast Water.

• The Santarém Port Development and Zoning Plan.

• Municipal Law no. 131/07 – Belterra Participative Master Plan.

• Municipal Law no. 1805, dated Dec/29/06 – Santarém Municipal Master Plan.

• Resolution no. 16/01 of the National Water Resources Council – granting of use.

• CONAMA Resolution no. 001/90 – Noise pollution.

• CONAMA Resolution no. 002/91 – Deteriorated, contaminated, out of specification, and abandoned cargoes.

• CONAMA Resolution no. 005/93 – Management of solid residues of ports, airports, and other terminals.

• CONAMA Resolution no. 006/91 – Incineration of residues of ports and airports.

• CONAMA Resolution no. 006/88 – Control of solid residues.

• CONAMA Resolution no. 307/02 – Management of construction industry residues.

• CONAMA Resolution no.

313/02 – Residues produced by manufacturing activities.

• CONAMA Resolution no. 362/05 – Disposal of oils.

• CONAMA Resolution no. 371/06 – Guidelines for calculating, charging, applying, approving, and controlling expenditures of funds from environmental compensation.

• CONAMA Resolution no. 396/08 – Elimination of vegetation in APPs. • CONAMA Resolution no. 397/08 – Changes item II of § 4 and Table X of § 5 of Article 34 of the Resolution of National Environmental Council no. 357/05, on the classification of bodies of water and environmental guidelines for their compliance, as well as conditions and standards of liquid waste discharge.

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Community survey To prepare the Environmental Impact Study on Cargill’s river terminal in Santarém, the CPEA conducted comprehensive contacts with local leadership, public and private authorities, and third-sector organizations, especially community leaders. It listened to their negative reactions and suggestions and try to incorporate into the study the main concerns and expectations of the communities affected by the terminal’s activities.

Organizations visited by the team that prepared the EIA/RIMA: • AFUNAZA • AMUPA Associação das Mulheres Pescadoras e Artesãs • AOMTBAM Associação das Organizações das Mulheres Trabalhadoras do Baixo Amazonas • APRUSAN Associação dos Produtores Rurais de Santarém • Arquidiocese de Santarém • Associação Comercial de Santarém • Associação Comunitária do Bairro da Boa Esperança • Associação Comunitária do Bairro do Curupira • Associação Comunitária do Bairro do Jacamim • Associação Comunitária do Bairro do Tipizal • Associação Comunitária do Poço das Antas • Associação da Comunidade de Terra Firme • Associação das Mulheres Domésticas de Santarém • Associação de Moradores da Grande Área do Mapiri • Associação de Moradores do Bairro do Caranazal • Associação de Moradores do Bairro do Jenipapu • Associação de Moradores do Bairro do Laguinho • Associação de Moradores do Bairro do Planalto São José • Associação dos Carregadores Autônomos • Associação dos Lojistas de Santarém • Associação dos Moradores da Área Verde • Associação dos Moradores de Mojuí dos Campos • Associação dos Moradores do Bairro Vitória Régia • Associação dos Moradores do Bairro da Aldeia • Associação dos Moradores do Bairro do Tabocal • Associação dos Moradores do Bairro do Uruará • Associação dos Moradores do Bairro Santo André • Associação dos Moradores do Bairro São Francisco • Associação dos Produtores e Moradores das Comunidades de Terra de Areia e Água Fria • Associação dos Quilombolas de Santarém

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• Bairro Vitória Régia UFPA • CAPAC • CEFTBAM Centro de Formação dos Trabalhadores do Baixo Amazonas • Cidadania Ativa (OSCIP)- Organização Social Civil de Interesse Público • Colônia de Pescadores Z-20 • Conselho da Pastoral da Pesca • Conselho da Pastoral da Terra • Conselho de Desenvolvimento Rural Sustentável • Conselho Indígena Tapajós Arapiuns • COOPERAMAZON Cooperativa Rural da Amazônia • Delegação do Sindicato STTR do Bairro do Jacamim • EMATER • EMATER Belterra • EMBRAPA • EMBRAPA do Município de Belterra • Empresas de Consultorias Ambientais • FAMCOS Federação das Associações dos Moradores e Organizações de Santarém • FDA Frente de Defesa da Amazônia • FETAGRI Federação dos Trabalhadores na Agricultura • FIT Faculdades Integradas do Tapajós • FLONA Tapajós • FUNDAC • GDA Grupo de Defesa da Amazônia • IAR Instituto da Amazônia Restaurada • IBAMA • IBGE • IESPES Instituto Esperança de Ensino Superior • Igreja Católica São Raimundo Nonato • IGPA • IMAZON • INCRA

• INEA • Instituição Financeira Banco da Amazônia • Instituto Manancial • IPHAN Belém • ISAN • Kepler Brow Agricultura • LBA Experimento de Grande Escala da Biosfera Atmosfera na Amazônia • Ministério Público • Movimento Estudantil da UFPA • Museu Emílio Goeldi • OAB Ordem dos Advogados do Brasil • OGMO Órgão de Gestão de Mão-de-Obra • Prefeitura Municipal de Belterra • Prefeitura Municipal de Santarém • RESEX Reserva Extrativista Tapajós Arapiuns • SEAP Secretaria Especial de Aquicultura e Pesca • SEBRAE • Secretaria de Agricultura de Belterra • Secretaria de Agricultura de Santarém • Secretaria de Governo • Secretaria de Meio Ambiente do Município de Belterra • Secretaria Municipal de Saúde • SEMA • Sindicato dos Trabalhadores Rurais do Município de Belterra • Sindicato dos Estivadores de Santarém • SIRSAN Sindicato Rural de Santarém • STTR Sindicato dos Trabalhadores e das Trabalhadoras Rurais • TNC • UFPA Universidade Federal do Pará • UFRA Universidade Federal Rural • Vendedores de Peixes e Organismos do Tablado da Orla

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Conclusion THE COMMUNITY’S POINT OF VIEW Below we present the conclusions and final remarks on the environmental feasibility of Cargill Agrícola S.A.’s Solid Bulk Commodities River Terminal in Santarém and its effects on the quality of life in the region and the environment of which it is part.

The main problems raised by the local community regarding the effects of the terminal on the region are the following: • Occupation of the Vera Paz beach • Frustration of job expectations • Migration from the land to the cities in result of expanding soybean farming and consequent social problems • Indifference of the company in regard to the community • Deforestation caused by soybean farming • Interference in the archeological site in the area of the project • River pollution caused by the discharge of ships’ ballast water • Air pollution caused by dust produced during ship loading • Impact on family farming caused by the expanding soybean farming • Licensing of the terminal without the EIA/RIMA • Lack of investment in training the local labor force • Interference in the city’s landscape The main positive aspects felt by the local community are the following: • The implementation of Cargill brought development to the region • It created indirect jobs • It increased economic activity expressed in Santarém’s economic output • Cargill sponsored the refurbishing of the public library • It commissioned the EIA/RIMA on the terminal • It made the port competitive • It boosted the city’s businesses • It eliminated criminality on the Vera Paz beach • The Responsible Soybean Project tries to ensure environmental compliance of participating farmers.

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TECHNICAL REVIEW OF THE ENVIRONMENTAL IMPACTS The Environmental Impact Study (EIA) reviewed and surveyed the most important positive and negative impacts from the implementation and operation of the Solid Bulk Commodities River Terminal in Santarém, and suggested necessary measures to mitigate the main negative impacts found by the technical team in charge of the study.

The EIA also suggested the following compensatory measures to offset the project’s impacts: 1. To allocate 0.8% of the total amount of the investment (past and future) in the project to SEMA-PA, which will channel these funds to the state’s conservation units, in accordance with specific environmental legislation of that state.

2. Cargill should help finance the archeological project underway in the port of Santarém, to protect and restore the region’s archeological assets and heritage.

3. Cargill should provide a financial contribution to create leisure facilities in the Vera Paz area. This would be between the port and the city, in an area given by the CDP to the city of Santarém.

All mitigating and compensatory measures should be implemented using a joint set of environmental measures specified in the EIA/RIMA. The project’s Social Communication Program should ensure the availability of information and the involvement of the local community, so that all stakeholders could follow up on the environmental programs with full transparency to ensure perfect alignment between the company and the community.

The EIA analizes the possibility of decommissioning Cargill’s river terminal in Santarém and concludes that such a measure would have negative effects from the social and economic perspectives, namely the loss of direct and indirect jobs, loss of revenue for CDP and the cities, and temporary losses to soybean farmers. Moreover, negative impacts on the environment would hardly be affected, since they would be hardly reverted or not reverted at all.

Considering the above and based on the results of several studies conducted under the EIA, we conclude that the project is environmentally feasible in its different phases, provided that all control, mitigation, compensation, and environmental monitoring defined in the studies are applied.

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