Belo Sun's gold project to be "closely watched" by Brazilian authorities

Last week, the Volta Grande do Xingu gold project, owned by Canadian junior miner Belo Sun, was highly discussed in Brazil, where it attracted the attention of government authorities. The country’s Ministry of Mines and Energy said it will ask the National Department of Mining Production (DNPM), responsible for granting licenses, to “watch closely” the venture.

An unnamed source at the government told newspaper “Valor Econômico” the ministry asked the department for details involving Volta Grande do Xingu and demanded “a solid analysis” on the gold project, just 14 kilometers away from the Belo Monte dam, where a major hydroelectric plant is being built. Brazilian federal prosecutors also commented on Volta Grande do Xingu, arguing they have found issues in the venture and would require Belo Sun to elucidate the questions about them.

In a statement, Belo Sun denied any irregularities in Volta Grande do Xingu’s licensing process and said the development plan actually considers the environmental impact of the hydroelectric plant. “The project’s environmental licensing process is being done following the adequate procedures, at the regular timeframe and following all the legal framework”, wrote the company.