Brazil Court Halts Belo Sun $300M Gold Project

Brazil’s Supreme Federal Court has temporarily suspended the installation licence for Belo Sun Mining’s $300 million Volta Grande gold project in Pará state, delaying plans to develop what could become the country’s largest open-pit gold mine, according to Mining.com.

The court partially granted a request from Brazil’s Federal Public Prosecutor’s Office (MPF), suspending an earlier ruling that had reinstated the project’s installation licence. The suspension will remain in effect until a settlement agreement between Belo Sun and Brazil’s National Foundation of Indigenous Peoples (Funai) receives judicial approval.

Pending Court Approval

Belo Sun stated that the agreement has already been submitted to Brazil’s Federal Regional Court of the 1st Region (TRF-1), although approval remains pending. Belo Sun CEO Clovis Torres said the company remains confident that the parties will reach an agreement in the best interests of all stakeholders.

The ruling prolongs uncertainty for the Canadian miner, whose flagship project has faced years of legal challenges over environmental licensing and Indigenous rights. Supreme Court Justice Edson Fachin cited uncertainty over whether the project’s potential impacts on nearby Indigenous communities had been adequately assessed.

Environmental Concerns and Reserves

Fachin highlighted the cumulative environmental pressures on the region from the nearby Belo Monte hydroelectric dam, stating that existing impacts warrant greater caution when evaluating additional development. Belo Sun has committed to refraining from any physical interventions at the project site while negotiations continue.

The Volta Grande project hosts proven and probable reserves of about 3.8 million ounces of gold and has a projected average annual production of approximately 205,000 to 205,155 ounces of gold over a 17-year mine life.

Key facts

• Belo Sun’s Volta Grande gold project is valued at $300 million.
• Brazil’s Supreme Federal Court temporarily suspended the installation licence.
• The project hosts approximately 3.8 million ounces of proven and probable gold reserves.
• The settlement agreement has been submitted to Brazil’s Federal Regional Court of the 1st Region.