The Valdivia Pulp Mill or Planta Valdivia is a pulp mill and biomass-fueled electrical generating station in San José de la Mariquina, Los Ríos Region, Chile. Although the main activity is wood pulp production, it also generates 61 MW of electricity from the burning of volatiles and black liquor. The plant was built in 2004 and is owned by Celulosa Arauco y Constitución also called CELCO.
In 2004 and 2005 thousands of black-necked swans in the Carlos Anwandter Nature Sanctuary in Chile died or migrated away following major contamination by a newly opened CELCO pulp mill located near the city of Mariquina and Cruces River which feeds the wetlands. By August 2005, the birds in the sanctuary had been "wiped out"; only four birds could be observed from a population formerly estimated at 5,000 birds. Autopsies on dead swans attributed the deaths to high levels of iron and other metals polluting the water. The company had been dumping dioxins and heavy metals into the river illegally from a wastetube that had not been approved by the authorities. The plant was closed in 2005 after the company's lawyers reportedly produced a misleading environmental study regarding pollution on the Cruces River. The scandal prompted Celco's chief executive to resign in June 2005 and the company to pledge to adopt cleaner technologies. The plant reopened two months later at limited production capacity. Even in 2006 the Latin American water tribunal recommended to close down the mill.