Brazil court issued final ruling on Belo Sun gold mining project

Canadian miner Belo Sun Mining Corp. (TSX: BSX) has secured a final court ruling that permanently dismisses a class action challenging the Indigenous licensing process for its proposed $300 million Volta Grande gold project in Brazil.

Brazil’s Federal Regional Court of the 1st Region unanimously ruled the lawsuit must be dismissed because it duplicated an earlier case involving the same claims and requested remedies.

The Federal Public Defender’s Office (DPU), which sought to suspend the project’s installation licence pending additional consultations and studies with the Araras da Volta Grande and Jurunas da Paquiçamba Indigenous communities, did not appeal before the statutory deadline, making the decision final and binding.

“This final court ruling is a major milestone for Belo Sun and a clear validation of our legal position,” CEO Clovis Torres said. “Other repetitive lawsuits will certainly have the same fate. It reinforces our confidence in Brazil’s judicial framework as we remain focused on advancing the Project responsibly, while maintaining open communication with local stakeholders, and delivering long-term value for our shareholders.”

The decision removes a significant legal obstacle for the Volta Grande project, which Belo Sun says has the potential to become Brazil’s largest open-pit gold mine. The ruling also strengthens the company’s position against similar legal challenges as it continues to pursue environmental licensing and project development.

Belo Sun said it will continue defending its legal position in Brazilian courts while advancing the project through the remaining permitting process. The company said it will provide further updates as developments warrant.