The TSX-listed stock of Brazil-focused project developer Belo Sun Mining has lost more than 18% on Wednesday morning, following an announcement that the Brazilian Federal Regional Court has issued an interim suspension order halting construction of the flagship Volta Grande project pending completion of an indigenous study.
The long-delayed Volta Grande, or Big Bend, openpit project was expected to start production in 2016 and become Brazil’s largest gold mine. It is next to another controversial project, Belo Monte, which is designed to become the world’s third-largest hydroelectric dam and has also been the target of lawsuits by prosecutors arguing the impact of the two massive projects on the habitat of two local Indian communities straddling the Xingu River has not been properly studied.
