Canadian-based mining company
This is the central message of a warning letter sent to the
Drafted by a legal team and supported by independent technical and scientific analysis, the complaint letter challenges recent statements by Belo Sun's CEO
According to the complaint, such declarations are patently false. There are seven public civil actions active in Brazilian courts asking for the suspension of permits and of the licencing process, filed by Federal and State public prosecutors' and defenders' offices. These lawsuits focus specifically on irregularities in the Environmental Impact Assessment (EIA), and the lack of free, prior and informed consultation and consent with Indigenous peoples and other traditional communities.
The coalition argues that there is overwhelming evidence that Belo Sun breached the Securities Act disclosure requirements, which requires companies to disclose material changes "forthwith" (without delay). Companies must disclose factual and updated data to keep investors well informed.
Misleading information disclosed by
According to the complaint, while the company acknowledges the generic risks associated with the licensing process, it fails to disclose the concrete details of the legal actions and suspensions in play regarding its project, relying on investors' lack of knowledge concerning licensing legislation in
One example refers specifically to the suspension of its construction licence (LI), due to the lack of "free and informed consultation" of Indigenous peoples. In its more recent Corporate Update, Belo Sun states that "it continues to advance financial discussions with various groups in preparation for the commencement of construction following the lifting of the suspension of the construction license (LI)".
"The company has not even started a consultation process, - which is now delayed by COVID-19 - and it is already advertising the lifting of the suspension, as if it was just a matter of time", says
Among the risks associated with investments in
The downplaying of environmental and social risks by the company's studies and impact assessments has sounded the alarm among communities in the Volta Grande region, already affected by the Belo Monte dam. A series of independent technical studies challenge Belo Sun's statements regarding impacts to water resources, to fauna and flora, and regarding dam safety.
The company's refusal to acknowledge impacts in Indigenous territories along the Xingu river has led to the court decision that suspended the installation licence of the Volta Grande project in 2017 until "free and informed consultation" was carried out. There are also increasing accounts of intimidation and harassment against project opponents, which demonstrate a much more complex and contentious situation as a result of the project than what has been disclosed by the company, the complaint stresses.
The coalition concludes that "Belo Sun has failed to fully communicate to current and potential investors about the complex nature of its project" which has a "direct implication for delays, and raises fundamental questions about the project's viability". The letter delivered to the OSC aims to increase visibility to the many irregularities of the project and to raise awareness among current and potential investors about the major reputational and legal risks attached to the project, at a moment when heightened attention is focused on the Amazon rainforest and its capacity to provide environmental services and mitigate climate change.
About Belo Sun's Volta Grande Project
Proposed for development along the Volta Grande (Big Bend), a stretch of the
From the outset, Belo Sun has faced numerous lawsuits regarding the
SOURCE MiningWatch Canada
© Canada Newswire, source