Canadian miner Belo Sun Mining (TSX: BSX) has secured a final court ruling that permanently dismisses a class action challenging the Indigenous licensing process for its proposed $300-million (C$423-million) Volta Grande gold project in Brazil. The shares gained.
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; and missed a statutory deadline, the company said on Monday.
“This final court ruling is a major milestone for Belo Sun and a clear validation of our legal position,” CEO Clovis Torres said in a release. “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.
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.
Shares in Belo Sun Mining shot up 25% on Monday to $1.15 apiece in Toronto, before closing at $1.07 a day later, valuing the company at $609 million.
Consultations
The Federal Public Defender’s Office 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.
But the office didn’t appeal before a statutory deadline, making the decision final and binding, the court ruled.
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.
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