BRASILIA — A Brazilian court in Brasilia will rule Wednesday on whether the federal government or the state of Para has authority to grant environmental licenses for Belo Sun's Volta Grande gold mine project. The decision could invalidate environmental licenses granted by Para state in 2025 if the court returns the case to federal jurisdiction.

Belo Sun has sought since 2012 to establish the Volta Grande gold mine on the banks of the Xingu River in Para state, about 20 kilometers (12.4 miles) from the Belo Monte hydroelectric dam, the world's third-largest hydroelectric dam. The mine is projected to be the largest gold extraction site in the Brazilian Amazon.

According to a 2015 feasibility study, the project aims to extract 3.52 million ounces of gold over 17 years and excavate more than 600 million tons of material. The study indicates the mine would cover 24 square kilometers (9.2 square miles) and affect 125 hectares (309 acres) of the Amazon rainforest. The Articulation of Indigenous Peoples of Brazil estimates the mine would displace 813 families.

Prosecutors first opposed the licensing in 2013, citing a lack of consultation with affected Indigenous communities. In 2017, a full panel of a federal court required federal government approval and formal consultation with Indigenous communities. In 2025, justices overturned that decision and returned licensing authority to Para state. Prosecutors appealed, arguing the move amounted to a new trial.

Federal prosecutor Felício Pontes Jr. said, "From the start, as we did in Belo Monte, we have argued that the licensing falls under federal jurisdiction because it affects Indigenous lands and a federal river." He added, "This could create a major conflict if there isn't a single authority licensing both projects, given the impacts one project has on the other."

The Belo Monte dam's operations have reduced the Xingu River's flow and severely affected local communities. Brazilian courts have determined its impacts were far greater than originally projected. Courts have ordered compensation for affected communities and required Norte Energia to provide clean water to families whose natural water sources dried up and to review how much water it diverts from the Xingu River to run its turbines. Indigenous communities near the Volta Grande project were severely affected by droughts linked to the Belo Monte dam.

In a 2021 independent assessment, scientists from the University of Sao Paulo and University of Amazonas concluded the project is too risky and should be rejected. The assessment identified the proposed tailings dam—a structure designed to store mining waste above a water channel near the Xingu River—as a main concern, saying a failure could release toxic waste into the river, threatening Indigenous and riverine communities and the ecosystem.

In December 2025, the Juruna and Arara Indigenous communities of the Xingu released an open letter stating they have never agreed to the project as required by the 2017 ruling. Belo Sun has said it conducted due Indigenous consultation following protocols established by affected communities and supervised by authorities.

On May 12, 2026, Belo Sun said it hired a mining consultancy to review and update technical studies for its installation license, with completion expected by the third quarter of 2026. The new studies aim to identify improvements, outline updates to a definitive feasibility study, and develop a phased project plan. The company said the mine remains subject to environmental licensing by competent regulatory and judicial authorities in Brazil. Parties to the case can still file challenges regardless of Wednesday's ruling, and other lawsuits questioning the Volta Grande project are pending in Brazil's courts.