Licence suspended for Brazilian gold project with 3.8 million ounces in reserves pending court approval of settlement
Key Facts
Belo Sun said Brazil's Supreme Court had partially granted a request by federal prosecutors and temporarily suspended the ruling that reinstated the construction licence for the Volta Grande gold project. The decision concerns the company's 100%-owned project in Brazil's Para state, whose licensing process is tied to a dispute over an Indigenous component study and consultation with Indigenous communities. The Supreme Court's action suspends the ruling that reactivated the licence, according to the company's statement on the decision. Federal prosecutors had sought to maintain the suspension until a final, unappealable judgment in the case concerning that study. The suspension announced by the company, however, remains in place until judicial approval of its agreement with the National Foundation of Indigenous Peoples, known as Funai.
An appeals court had reinstated the construction licence through an interim ruling on 13 February 2026, following a suspension that began in 2017, according to Belo Sun's statement on the licence's reinstatement. Para state's environmental secretariat reissued the licence under number 3698/2026, replacing the previous licence numbered 2712/2017. The administrative authority set the reissued licence's validity through April 2029, before the current judicial suspension of its effect. The company said in a project update: "The new licence replaces the previous licence and is valid until April 2029." The reissuance was part of the licensing process that followed the February ruling, while the Supreme Court's current action concerns the judicial ruling that allowed the licence to be reinstated.
In a development preceding the Supreme Court's decision, the Brazilian subsidiary was formally notified on 11 September 2026 of federal prosecutors' request to suspend the ruling that reinstated the licence. Belo Sun said in its statement on those proceedings that the ruling reinstating the licence had found it met the court-mandated study and consultation requirements. In outlining the basis on which it secured the licence's reinstatement, the company described the ruling as acknowledging that it had "demonstrated compliance with the applicable judicial requirements." In the environmental licensing proceedings, the Federal Regional Court said the panel's deliberations had been halted after the reporting judge presented his opinion. The court attributed the pause to a judge's request for time to examine the case file, with the panel to resume deliberations later.
The suspension request was preceded by a conciliation process before the Federal Regional Court, which held a hearing on 24 June 2026, according to Belo Sun's statement on the project's progress. The company attended alongside representatives of Indigenous communities, Funai, prosecutors and Para state. Belo Sun said federal prosecutors maintained their opposition to the construction licence remaining in effect during the conciliation process. Commenting on the Supreme Court's latest decision, Chief Executive Clovis Torres welcomed its recognition of the importance of the conciliation process established by the regional court. Torres said: "We welcome the Supreme Court's recognition of the importance of the conciliation hearing established by the Federal Regional Court."
The Volta Grande page on Belo Sun's website presents the results of the March 2015 feasibility study, which estimated proven and probable gold reserves at about 3.8 million ounces. The study set planned average annual production at 205,155 ounces over a planned mine life of 17.2 years. As part of technical work on the project, Belo Sun commissioned G Mining Services to conduct a gap analysis to identify studies requiring updates. The assignment includes defining the scope of work and timetable for updating the definitive feasibility study, according to the company's statement on the project. Regarding operational design, Belo Sun says in a statement on its Brazilian website that the project "does not involve withdrawing water from the Xingu River or diverting its course to operate the mine."
The next judicial step remains approval of Belo Sun's agreement with Funai by the relevant Federal Regional Court, under the condition the company cited for lifting the suspension. Belo Sun said the agreement had already been submitted for judicial approval and a decision remained pending. It added that the parties were already fulfilling the obligations set out in the agreement while awaiting approval. These include the company's commitment to "refrain from carrying out any physical interventions" at the Volta Grande site. Alongside that commitment, Belo Sun says it is continuing dialogue with Funai and Indigenous communities as part of the agreement process.