Brazil’s Supreme Court has suspended Belo Sun Mining’s (TSX:BSX) environmental permit for the Volta Grande Gold Project in the Amazon rainforest, following years of opposition from Indigenous communities.
The suspension is a major setback for the company’s development plans for an open-pit mine in Pará State, along the Xingu River, which is already impacted by one of Brazil’s largest hydroelectric dams, Belo Monte.
Supreme Court Chief Justice Edson Fachin issued the suspension on Monday (19 October), noting that the company was not in compliance with all necessary environmental requirements including protections for the region’s Indigenous communities.
The Xingu River is a major tributary of the Amazon, where the Belo Monte Dam has significantly altered the river’s natural flow, affecting fish populations and local communities.
Environmental groups have opposed the development of a large-scale gold mine in the area for years. In 2017, Brazil’s Federal Court upheld the suspension of the project’s environmental licence, ruling that Belo Sun had not adequately consulted local Indigenous communities or completed the social and environmental impact studies required by the National Indian Foundation. The suspension was upheld again in 2022.
A 2015 Feasibility Study by Belo Sun outlined a plan to extract 3.52 million ounces of gold over 17 years, mining more than 600 million tonnes of material across a site that spans 24km2.
Following that, there was an independent assessment completed in 2021 that highlighted the potential impacts of a proposed dam that is meant to hold around 35 million cubic metres of mining waste and water near the river. Failures of the dam could mean the potential release of waste containing toxic substances into the river, affecting Indigenous communities more than 40km downstream.
Brazil tightens focus on responsible mining
As previously reported, Brazil has a long-established gold mining industry and is currently the second-largest producer of gold in South America, following Peru. In addition to gold, the country holds vast reserves of rare earth elements, iron ore, and bauxite.
In September 2025, Brazil’s National Mining Agency launched the Brazilian Forum for Responsible Gold, reaffirming the country’s commitment to responsible gold-mining practices. The initiative focuses on formalising artisanal and small-scale gold mining (ASGM), improving traceability, and combatting illegal mining and illicit financial flows.
Illegal gold mining has been an issue in the country for years, impacting Indigenous populations’ way of life, the environment, and health, leading to surges in cases of malaria and other illnesses, as reported.
The Supreme Court’s decision on Belo Sun also underscores the growing scrutiny facing large-scale mining developments in environmentally and culturally sensitive regions, reinforcing Brazil’s broader push to ensure resource projects align with responsible mining practices, robust environmental safeguards, and meaningful Indigenous engagement.
Following the news of the decision by the courts, Belo Sun Mining’s stock dropped 6.09% on the Toronto Stock Exchange, closing at C$1.08 ($1.10).
Belo Sun Mining is a Canadian development-stage company focused on advancing the Volta Grande Project in Brazil.
Write to Amy Rotman at Mining.com.au
Main image: Unsplash
