Mining company warns Plibersek ban will see $200m country NSW goldmine scrapped, costing 800 jobs

The company behind a gold mine plan torpedoed by Environment Minister Tanya Plibersek on Indigenous heritage grounds has warned it will have to dump the whole project.

The mining company behind a torpedoed bid for a new gold mine in regional NSW has warned it will have to dump the project after Environment Minister Tanya Plibersek’s decision to block part of the site.

In an extraordinary statement to the ASX on Monday, Regis Resources – who were behind plans for the proposed McPhillamys Gold Project near Blayney – also said it was considering its legal options after Ms Plibersek’s eleventh-hour decision to block a tailings dam for mine, using rarely-utilised section 10 Indigenous heritage laws.

“Minister Plibersek has stated that this declaration ‘will not stop the mine’,” the statement reads.

“To the contrary, this decision does impact a critical area of the project development site and means the project is not viable.”

The company added “it was made clear to the Minister that the project would not be viable if the Section 10 declaration was made and that, while a number of alternatives were considered early in the design process, the project does not have any currently viable alternative infrastructure locations”.

Tanya Plibersek has decided to axe the mine site. Picture: NCA NewsWire / Martin Ollman

Regis Resources CEO and managing director Jim Beyer said he was “extremely surprised and disappointed that, after a nearly four-year, protracted Section 10 assessment process, Minister Plibersek has concluded there are grounds to block the development of the McPhillamys Gold Project”.

He added the section 10 declaration – made despite the Orange Local Aboriginal Land Council not opposing the project – “shatters any confidence that development proponents Australia-wide (both private and public) can have in project approval timelines and outcomes”.

Regis Resources CEO Jim Beyer.

“The implications of this decision are not limited to the resources industry but also to developers of infrastructure, renewable energy and property, as well as tourism operators, farmers and owners of freehold land more generally. This decision highlights the increasing sovereign risk of investing in Australia.”

REJECTED ON INDIGENOUS HERITAGE GROUNDS

Ms Plibersek scuppered plans for the new gold mine on Indigenous heritage grounds, despite the local land council saying there was no ­sacred site at the location.

The move, after lobbying from a rival Indigenous group, also raises concerns other major projects could be axed.

The proposed location of McPhillamys Gold Project which is located in Blayney just outside of Orange and Bathurst in Central West NSW. Picture: Supplied

Ms Plibersek’s decision, released on Friday, came despite the Orange Local Aboriginal Land Council (OLALC) last year saying it was “not against approval for the mine”, and their research found it would not “impact any known sites or artefacts of high significance”.

Planning documents seen by The Telegraph state the ­proposed mine, which was ­approved by the NSW government last year, would have ­produced 520 construction jobs and 290 permanent roles, as well as $200m in taxes and royalties to NSW.

Ms Plibersek backed lobbying from the Wiradyuri Traditional Owners Central West Aboriginal Corporation, who said “sacred songlines” ran through the site.

Ms Plibersek released her decision to block the move using section 10 of the Aboriginal and Torres Strait Islander Heritage Protection Act, the first time she has used it.

“Liberal and Labor governments have previously made decisions along these lines,” a spokeswoman said.

“This decision does not mean the gold mine can’t go ahead – it just means an Aboriginal heritage site can’t be destroyed to build a waste dump for the mine,” she said.

The proposed location of the open pit, processing plant and tailings dam at McPhillamys Gold Project which is located just outside of Orange, NSW. Picture: Supplied

“Building a waste dump on that particular site would have destroyed the headwaters of the Belubula River – a place of particular significance for local Aboriginal people going back thousands of years.

“The company is free to find another site for their waste dump. It’s understood there were more than four sites investigated with 30 options.”

The decision triggered criticism from industry and the Opposition, amid fears the scrapped tailings dam site could lead to years of delays as approval was sought for an alternative site.

NSW Minerals Council chief executive Stephen Galilee said the “last minute” decision came after three years of assessments.

“It will deter future investment, cost jobs, and harm our economy, and once again the regions will suffer the most,” he said.

But despite the stance of the OLALC, the Environment Minister backed lobbying from another group, the Wiradyuri Traditional Owners Central West Aboriginal Corporation, who said “sacred songlines” ran through the site.

Opponents to the project have previously benefited from advice from the taxpayer-funded Environmental Defenders Office.

A spokeswoman for the Minister said “Liberal and Labor Governments have previously made decisions along these lines”.

“This decision does not mean the gold mine can’t go ahead – it just means an Aboriginal heritage site can’t be destroyed to build a waste dump for the mine,” she said.

Minister for Environment and Water Tanya Plibersek during Question Time at Parliament House in Canberra. Picture: NCA NewsWire / Martin Ollman

“Building a waste dump on that particular site would have destroyed the headwaters of the Belubula River – a place of particular significance for local Aboriginal people going back thousands of years.

“The company is free to find another site for their waste dump. It’s understood there were more than four sites investigated with 30 options in the mix.”

The decision triggered fierce criticism from industry and the Opposition, amid fears the scrapped tailings dam site could lead to years of delays as new approval is sought for an alternative site.

Senator Susan McDonald during an Economics Senate Inquiry at Parliament House in Canberra. Picture: NCA NewsWire / Martin Ollman

“This is just one of a raft of decisions that Tanya Plibersek has made at odds with state governments and at odds with common sense,” Shadow environment spokesman, Senator Jonno Duniam said.

NSW Minerals Council CEO Stephen Galilee said the “last minute” decision came after three years of assessments.

“This sends the worst possible signal for future jobs and investment in the regions, brings the integrity of the entire assessment process into question, and also raises serious sovereign risk concerns,” he said, amid fears the rarely-used law could drive away other investments and wrest control of freehold land away from owners.

Senator Jonathon Duniam in the senate chamber at Parliament House in Canberra. Picture: NCA NewsWire / Martin Ollman

“It will deter future investment, cost jobs, and harm our economy, and once again the regions will suffer the most.“

Shadow resources spokeswoman Senator Susan McDonald said the move was a blow to critical minerals operations in the country.

“At a time when the need for important minerals – which gold is one – has never been more urgent, to have the Government slow down processes is devastating,” she said.

“This decision is ending mining stealthily … it’s using a provision to make the ability for companies to invest in Australia incredibly difficult.”

The decision comes at the same time as the NSW Supreme Court upheld an appeal against another mining project in the central-west, with the future of the Bowdens’ silver project – aimed at extracting more than 30 tonnes of silver, lead and zinc over its lifespan – now in doubt.

Originally published as Mining company warns Plibersek ban will see $200m country NSW goldmine scrapped, costing 800 jobs