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The judge in the capital of Brasilia reversed a decision to suspend contract. He also overturned the suspension of the environmental license for the 11,000megawatt Belo Monte dam.
Brazils solicitor general issued a statement reporting the decision. It is not immediately clear if the latest decision could be appealed.
Avatar director James Cameron was in Brazil to protest the dam. Brazils president says the dam is essential to meet Brazils future energy needs.
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