Prosecutors Seek Halt on Belo Sun's Volta Grande Gold Mine License

Brazil’s Federal Public Prosecutor’s Office (MPF) has escalated its legal battle against Belo Sun Mining (TSX:BSX,OTCQB:BSXGF), asking the country's Supreme Court to immediately suspend the installation license for the Volta Grande gold project in the Amazon.

The company said in a recent update that the MPF filed a request for suspension of provisional relief to overturn a February 2026 appellate court decision that reinstated the project's license.

Supreme Court President Justice Edson Fachin issued an order giving Belo Sun, the State of Pará, the federal government, and the national Indigenous agency FUNAI a 72-hour deadline to respond.

Both the mining company and the State of Pará have filed responses requesting the court deny the suspension.

“We remain confident in the strength and validity of our Installation License,” Belo Sun CEO Clovis Torres said. “A STP is an exceptional procedural remedy that requires a showing of a concrete risk of serious harm to public order, health, safety or the economy. As we continue working collaboratively through the conciliation process, we see no basis for such an emergency suspension and will vigorously defend the project and validity of the Installation License.”

The installation license remains in effect while the Supreme Court reviews the filings and awaits a final submission from the Prosecutor General’s Office.

The Volta Grande project, located in Pará state along the Xingu River, is projected to be the largest open-pit gold mine in Brazil. Belo Sun plans to extract 3.52 million ounces of gold over a 17-year mine life.

The site sits less than 50 kilometers from the massive Belo Monte hydroelectric dam, DRAWING intense scrutiny from environmental groups and Indigenous communities who warn of cumulative ecological risks to the Xingu River basin’s hydrology and biodiversity.

When the Federal Regional Court of the 1st Region (TRF-1) reinstated the installation license in February, it ruled that Belo Sun had satisfied judicial conditions by completing its Indigenous Component Study with primary data.

Local groups subsequently filed complaints accusing the company of bypassing formal consultation protocols—allegations Belo Sun denies, maintaining it operates under FUNAI's supervision.

The challenge arrives just weeks after Belo Sun secured a major legal victory on a separate track.

In July, TRF-1 permanently dismissed a 2017 civil lawsuit filed by the Federal Public Defender's Office (DPU) that also sought to suspend the project over Indigenous consultation claims. The court unanimously ruled the DPU's action duplicated an earlier lawsuit. The dismissal became final after the DPU failed to appeal before the statutory deadline.

“This final court ruling is a major milestone for Belo Sun and a clear validation of our legal position,” Torres stated following the July dismissal. “Other repetitive lawsuits will certainly have the same fate.”

The company is currently working with an external mining consultancy to finalize a phased project plan and an updated feasibility study by the end of the third quarter of 2026.

Belo Sun's stock slipped 11.45 percent on Monday (September 14) following the news. As of 11:40 a.m. ET, shares of the company were trading at C$1.16.

Don't forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.