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Article

12 Mar 2025

Author:
Isadora Peron e Rafael Bitencourt, International Valor,
Author:
Agência Brasil

Brazil: Supreme Court orders Indigenous communities to receive Belo Monte royalties

Allegations

Roberto Araya Barckhahn

"Supreme Court orders Indigenous communities to receive royalties", 12 March 2025.

Brazilian Supreme Court Justice Flávio Dino has ruled that Indigenous communities affected by the Belo Monte hydroelectric dam on the Xingu River, in Pará state, must receive a share of the royalties paid by the plant’s concessionaire. The ruling also sets a 24-month deadline for Congress to pass legislation regulating the matter.

With the new legal framework, Justice Dino expects the decision to apply to “other existing or future projects” that utilize hydropower potential on Indigenous lands...

The justice ruled in favor of the Indigenous groups living in the Volta Grande do Xingu region, where the dam was built. They argued that the construction and operation of the plant had significantly altered their way of life, creating social, health, and environmental issues.

According to Justice Dino, “there is no doubt that Indigenous peoples have the right to share in the benefits derived from the exploitation of hydropower and mineral resources that directly affect their lands.”..

“There is currently no legal framework defining the specific conditions for the use of hydropower resources, the research, and extraction of mineral resources on Indigenous lands, or the mechanism by which Indigenous communities should participate in these activities,” Justice Dino wrote...

With the risk of further financial losses in ongoing disputes with Indigenous communities, executives at Belo Monte were relieved by what they viewed as a favorable interpretation of Justice Dino’s ruling regarding Financial Compensation for the Use of Water Resources (CFURH).

A source with knowledge of Norte Energia S/A’s executive board—the company that operates Belo Monte—told Valor that the Supreme Court’s decision should not affect the total royalties paid by the dam but rather redirects 10% of the CFURH that was previously allocated to the federal government....

Norte Energia S/A said that it will only comment once the Supreme Court reaches a final decision in a floor vote ruling.