A Brazilian court has once again suspended a construction licence for Canada’s Belo Sun Mining’s (TSX:BSX) Volta Grande project, expected to become the South American country’s largest gold mine.
The decision, the second of its kind since 2013, represents a significant new obstacle in the way of the Toronto-based miner’s plans to develop the vast gold mine, in the Brazilian Amazonic state of Pará, local newspaper O’ Globo reported (in Portuguese).
According to the ruling, construction of the project is to remain suspended until indigenous study has been approved by Funai (Indigenous Affairs Agency of Brazil), Belo Sun said in a statement.
Shares in Belo Sun collapsed on the news and were falling almost 17% to 69 Canadian cents in Toronto at 9:57 am local time. But year-to-date, the stock is still up 1.47%.
According to Brazilian regulations, indigenous studies are required if their lands are located less than 10 kilometres from the project, something Belo Sun said it has already done. The company said it believed that following a review of the completed study, the court will reconsider their position.
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