Belo Sun Receives Ruling From Federal Court of Altamira, Para

Executive Summary

• The Federal Court of Altamira denied Belo Sun’s request for provisional compliance, leaving the Volta Grande Gold Project’s Construction License legally valid but suspended.
• The denial stems from incomplete Indigenous Component Study and lack of satisfactory free, prior and informed consultation with affected Indigenous communities, as highlighted by FUNAI and the Federal Public Prosecutor’s Office.
• Belo Sun plans to appeal the decision to the Federal Regional Court and asserts that the suspension does not affect the underlying merits of the project or its permitting framework.

Key Details

• Court Decision: Federal Court of Altamira (Pará, Brazil) denied provisional compliance request; construction license remains suspended.
• Compliance Conditions Not Met:
• Completion of Indigenous Component Study based on primary data.
• Conduct of prior, free, and informed consultation with affected Indigenous communities.
• Supporting Opinions Cited by Court: Recent technical opinions from Brazil’s National Indigenous Peoples Foundation (FUNAI) and a report from the Federal Public Prosecutor’s Office.
• Company Position:
• Reaffirms commitment to environmental, social, and regulatory compliance.
• States that the outcome was anticipated as one possible scenario and does not undermine project merits or permitting strength.
• Planned Legal Action: Intends to appeal to the Federal Regional Court, which previously confirmed Belo Sun meets requirements for lifting the suspension.
• Impact on Project Timeline: No specific timeline provided; further updates will be disclosed as required under applicable laws and regulations.

Notable Quotes

“Belo Sun believes that the Court’s interpretation differs from the requirements originally established by the relevant authorities, with which the Company considers itself to be fully compliant… it represents another procedural step for the Company to work through.” – Clovis Torres, CEO

Materiality Assessment: Material – Negative (the suspension of a key construction license poses a significant risk to project development and could affect shareholder value).