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2/6/13

Why (oh why) is Stan Bharti's Belo Sun (BSX.to) down 14.5% this year?


I mean, there seems to be no news out there in the English language that's prejudicial to the company's cause, and we're quite sure that somebody as open and transparent as Stan Bharti would be quick to warn his fellow shareholders if there were any sort of glitch or problem with the BSX Volta Grande project. Now...what could it possibly be....?...hmmmm....Hey, wait a moment! This might be it! Here's a translation of how the report dated January 5th begins:
"The Federal Public Ministry recommends that the Pará State Secretary of the Environment does not permit gold mining project on the Xingu River, Pará 

"The Federal Public Ministry says that environmental impact studies and consultations with indigenous peoples have not been done. 

"Belo Sun says that it concerns the largest gold mining project in Brazil"
And BSX longs can practice their Portuguese right by clicking through, though we can give a general idea or two here about how the first problem seems to be that BSX hasn't done anything about the legal right of prior consultation that locals have over the project, and the second problem seems to be about how a hydro dam project upstream is set to cut the river's flow significantly and because of that, the authorities think that a gold mining operation such as that planned for Volta Grande is unsustainable.

But hey, better read it yourself, no?