Regis Resources’ plans for a $1 billion gold mining project in New South Wales have been thrown into doubt due to last-minute intervention by Environment Minister Tanya Plibersek. The minister’s move to protect the site on Indigenous grounds has rendered the proposed open-cut goldmine “unviable,” according to Regis Resources. The company had received state and federal approval for the project, which was expected to create around 1,000 jobs and operate for approximately 11 years.
The crux of the issue lies in a section 10 application made under the Aboriginal and Torres Strait Islander Heritage Protection Act. This application, on behalf of a group of Wiradjuri elders, sought to protect an area of the Belubula River, which holds significant cultural value for Indigenous groups and is still actively used today. The proposed mining project would have encroached upon this area, specifically within the footprint of a storage facility for waste material from the mine.
On August 16, Minister Plibersek granted the section 10 order declaration, thereby safeguarding the cultural heritage of the Belubula River. Regis Resources has reacted swiftly to this development, slashing the project’s value by $192 million and withdrawing its 1.89 million-ounce assessment of ore reserves at the site. CEO Jim Beyer expressed the company’s disappointment, stating that the section 10 application has made the project “unviable” in its current form.
The Wiradyuri Traditional Owners Central West (WTOCWAC) Aboriginal Corporation, which represents the interests of the Wiradjuri people, supported Minister Plibersek’s decision. The group did not provide further comment but had previously opposed the mine on cultural grounds. They argued that sacred songlines running through Kings Plains connect to a sacred site on Wahluu-Mount Panorama, which was protected in 2021.
Regis Resources has expressed its intention to explore legal avenues to challenge the section 10 application. The company highlights the potential delays in developing alternative waste storage facilities, which could take five to 10 years without approval. In the meantime, the company anticipates job losses in Blayney, as well as a decline in royalties and tax revenue.
The situation has sparked a debate between heritage protection and economic development. NSW Natural Resources Minister Courtney Houssos emphasizes the strategic importance of the mine to the state and asserts that protecting heritage and advancing key mining projects should not be mutually exclusive.
Regis Resources is set to release its financial results for the 2023/24 fiscal year on August 22. The outcome of the legal battle and the company’s future plans for the McPhillamys Gold Project will likely be revealed in due course.
