The federal regional court’s interim ruling on February 13, has significant operational implications for Belo Sun Mining Corp. After a suspension that has been in place since , the court accepted an appeal and restored the company’s installation license for the Volta Grande gold project in Pará State, Brazil. This development authorizes the resumption of installation and construction work while the interlocutory appeal continues through the appellate panel.
The decision came from the 6th Panel of the Federal Regional Court (TRF-1), with Desembargador Federal Flávio Jardim granting interim relief that suspends the prior lower-court order. The court’s analysis emphasized compliance with technical and procedural prerequisites, clearing the way for Belo Sun to proceed with project activities under the reinstated permit.
What the court found and why it matters
In restoring the permit the court focused on several core matters. It determined that the company’s Indigenous Component Study (ECI) was prepared using primary data, meeting the technical standard required by TRF-1. The appellate judge also reviewed the consultation process with affected Indigenous communities and concluded it had been carried out in a participatory and transparent manner consistent with applicable international norms.
Consultation process and Indigenous engagement
The ruling documented that prior, free and informed consultations followed the Juruna Protocol, included culturally appropriate outreach, and allowed for internal community deliberation. Importantly, formal statements of support from the Juruna (Yudjá) and Arara of the Volta Grande do Xingu communities were acknowledged. The court characterized the consultation as performed in good faith and consistent with International Labour Organization Convention No. 169, underscoring its view that constitutional and international consultation standards were respected.
Administrative procedure and FUNAI’s reversal
The appellate decision also addressed the conduct of the Brazilian government agency FUNAI. The court found that FUNAI’s later change of position—after having earlier recognized the adequacy of the ECI and consultation—was not supported by a formal administrative process with the technical justification required under the regulations. The judge concluded that any new demands from FUNAI, such as expanding the consultation scope, must be preceded by an appropriate administrative procedure.
Operational consequences and next steps
With the license restored, Belo Sun is now authorized to restart construction and installation activities for the Volta Grande project. The interim relief reinstates the full effectiveness of the installation license, removing the immediate regulatory bar that had prevented on-site development since the suspension. The company has indicated it will move forward with construction in line with regulatory requirements and its stated environmental and social commitments.
Ongoing legal process
The appellate order is interlocutory: respondents to the appeal have an opportunity to file responses and the matter will continue through review by the 6th Panel of TRF-1. The interim relief could be sustained, modified or reversed as the appellate process unfolds. Stakeholders should therefore view the ruling as a major procedural victory that still sits within a live judicial review.
Company statement and governance context
Belo Sun’s leadership framed the decision as a turning point after years of regulatory uncertainty. The chairman and CEO highlighted the teamwork, local cooperation and regulatory engagement that preceded the ruling, and reiterated the company’s commitment to conduct the project under international best practices for environmental protection and social standards. The company emphasized its intention to generate long-term regional economic benefits while maintaining responsible operational controls.
For investors and community partners, the ruling reduces a significant regulatory risk in the near term but does not eliminate legal or procedural uncertainty. The company continues to trade under the symbols TSX: BSX and OTCQB: BSXGF, and indicated it will publish updates as the appeal process progresses and as construction milestones are reached.
Risk factors and forward-looking considerations
Although the appellate order restores the license, the company noted that forward-looking statements remain subject to risks, including the possibility that interim relief may be overturned, further legal challenges may arise, or additional regulatory requirements could be imposed. Readers are reminded that project timelines, construction activity levels and operational outcomes may change based on judicial rulings, administrative actions and typical industry risks.
Stakeholders should monitor subsequent filings and court decisions for updates on the appellate review and any changes to regulatory obligations.