Sept 12 (Reuters) - Chilean pulp and wood panel maker Arauco said on Tuesday it is halting indefinitely its operations at its Licancel pulp plant due to environmental challenges, causing some 160 workers to lose their jobs.

The plant's output amounts to 3% of Arauco's total annual pulp production, the company said in a filing. (Reporting by Fabian Cambero and Valentine Hilaire; Editing by Sarah Morland)