According to a judicial ruling, a Brazilian court ordered the suspension this Tuesday of the transfer of mining rights related to Canadian Equinox Gold's sale of gold assets to Chinese CMOC, a deal worth $1 billion. This measure involves assets located in the state of Bahia, where the state-owned company Bahia Mineral Research Company (CBPM) claims the operation violates its lease agreement.

According to the ruling, the judge accepted CBPM's arguments and blocked the transfer of mining rights in Bahia. The decision specifically targets the Santa Luz gold mine, and a mediation hearing is scheduled for March 30. CBPM's lawyer, Henrique Trindade, stated that the ruling suspends the sale of assets from Equinox to CMOC.

In response, Equinox Gold stated that it had completed the sale of its gold assets in Bahia through an agreement that the company claims complies with the law. The company also noted that the ruling is not against Equinox and is limited to the Santa Luz mine. "Equinox remains committed to constructive dialogue with the state to resolve any differences," the company added. It was reported that CMOC's office in Brazil did not immediately respond to a request for comment.

CBPM Chairman Henrique Carballal stated that the decision highlights what he views as "irregularities" in the negotiation of mineral assets that belong to Bahia. This case once again underscores the legal and contractual risks in Brazilian mining transactions: even after a sale is declared "completed," the transfer of mining rights can still face disputes with local or state actors, especially when lease agreements or related consent conditions exist.