Belo Sun receives interim suspension order related to construction and environmental licenses for Volta Grande project
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(Kitco News) - Belo Sun Mining (TSX: BSX) announced Tuesday it has received an interim suspension order issued by a single judge from the Agrarian Court of Altamira related to the Construction License ("LI") and Environmental License ("LP") for the Volta Grande Project.
According to the order, the LI and LP is to be suspended until a socio-environmental study of the riverside peoples, at a minimum distance of 10 km from the Volta Grande Project, is carried out, on both banks of the Xingu River, as well as prior, free and informed consultation and the consent of the riverside peoples, by the State of Pará, as provided for in Article 6 of Convention No. 169 of the International Labour Organization.
Belo Sun said it has completed indigenous studies on the two closest indigenous lands, located 12 and 16 kilometres away from the Volta Grande Project, which was accepted by FUNAI and is to be submitted to the Secretary of State for Environment and Sustainability ("SEMAS"), according to the Federal Court decision.
Belo Sun added it believes that all local communities, including the communities living along the Xingu River, have been properly heard during the licensing process conducted by SEMAS, according to the due process of environmental licensing procedures and there is no legal requirement to have an additional hearing under Convention No. 169.
Importantly, the company pointed out it intends to file an appeal to this decision of the Court.
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President and CEO Peter Tagliamonte commented, "We are disappointed by this additional interruption to our construction plans. However, these hurdles are expected and we will work through them. We are working with our local Brazilian counsel to have the decision of the Court overturned on appeal. We are working diligently on the appropriate steps to reverse these decisions."
Belo Sun is a Canadian-based mining company with a portfolio of gold-focused properties in Brazil. The company is currently focused on the development of the Volta Grande Gold Project.