Brazil Court to Decide Fate of Controversial Amazon Gold Project

A pivotal court decision is expected on Wednesday concerning Belo Sun's proposed Volta Grande gold mine in the Brazilian Amazon rainforest. The court will rule on whether the federal government or the state of Para has the authority to issue environmental licenses for the project, which has faced significant opposition since 2012.

Scientists have raised alarms about the Volta Grande mine, labeling it too risky due to its planned tailings dam situated directly above a water channel near the Xingu River. Concerns about potential dam failure and toxic waste contamination threaten Indigenous and riverine communities, as well as the local ecosystem. The project is also projected to displace 813 families, intensifying the challenges for populations already affected by the Belo Monte hydroelectric dam's operations.

Legal challenges have dogged the project since 2013, with prosecutors arguing for federal jurisdiction due to the project's national-level impacts, including effects on Indigenous territories and the Xingu River. In 2017, a federal court agreed, but this decision was overturned in 2025, returning licensing authority to Para state. Prosecutors appealed this decision, leading to the upcoming court ruling.

Belo Sun announced in May 2026 that it is initiating new technical studies for the Volta Grande project, aiming to update its feasibility studies by the third quarter of 2026. The company maintains it has conducted proper Indigenous consultations. However, Indigenous communities have stated they never agreed to the project, as mandated by a previous court ruling.