Goldmine conflict pits NSW ALP against feds

Anthony Albanese says a $1bn gold mine can still go ahead, despite his Environment Minister Tanya Plibersek vetoing the proposed location of the project’s tailings dam.

Anthony Albanese at Western Sydney International Airport on Tuesday. Picture: NewsWire / Gaye Gerard

The conflict between the NSW and federal Labor governments has intensified over the future of a $1bn gold mine near Orange, with state Resources Minister Courtney Houssos meeting with Regis Resources on Tuesday in a bid to keep the project alive.

As Anthony Albanese drew criticism from resource bodies and the Coalition for claiming the project could still proceed, Ms Houssos ramped up criticism of the decision by federal Environment Minister Tanya Plibersek to veto the proposed ­location of the project’s tailings dam.

“Protecting heritage and progressing key mining projects should not be a zero-sum proposition,” she said.

“We discussed the complexities of finding an acceptable alternative tailings dam site that meet all parties’ requirements, including for Aboriginal heritage.”

Regis Resources agreed it would “continue to look at options for the mine to proceed.”

NSW Labor Premier Chris Minns broke with the federal ALP on Tuesday by expressing dis­appointment at Ms Plibersek’s decision, saying the proposed McPhillamys goldmine site at Blayney – forecast to generate about $200m in royalties – was “critical for the state’s economic growth.”

Ms Houssos took aim at the decision to veto the tailings dam under section 10 of the Aboriginal and Torres Strait Islander Heritage Protection Act, saying the mine had passed state approvals.

She said metals mines across the NSW central west also employed “thousands of people and are important contributors to the global supply chain for clean energy products like solar panels, EV batteries and wind turbines”.

“The NSW government welcomed the Independent Planning Commission’s decision in March 2023 to grant consent to the McPhillamys project,” she said. “Given the project had been through rigorous environmental and heritage approvals by the IPC, the NSW government had expected the project to go ahead.

“The NSW government remains disappointed at the federal government’s decision to issue a ‘section 10’ declaration, considering the IPC considered tangible and intangible local Aboriginal heritage concerns in granting the development consent. Protecting heritage and progressing key mining projects should not be a zero-sum proposition.”

The Prime Minister continued to insist on Tuesday that the goldmine could still go ahead, declaring “there’s nothing to stop it”.

“What has happened is a decision based upon a tailings dam,” he said in Western Sydney. “Chris Minns would like it to go ahead, I’d like it to go ahead too … There are other options the company put forward on the tailings dam.”

However, Regis Resources ­informed the Australian Stock Exchange last week that the ­decision made by Ms Plibersek would make the project unviable. As a result, the company said a non-cash impairment of $192m had been taken against a significant proportion of the carrying value of McPhillamys.

Regis managing ­director Jim Beyer said finding an alternative tailings storage ­facility could take between five and 10 years and that the decision highlighted the
“increasing sovereign risk of investing in Australia”.

NSW Minerals Council chief executive Stephen Galilee on Tuesday said if Mr Albanese ­believed the mine could still proceed, he should “just reverse his minister’s decision to block it”.

“His comments show a lack of understanding as to the very technical, lengthy and complicated process of mine design and assessment,” Mr Galilee said.

“Even if another mine layout was possible, it would likely take at least five years or more for design and assessment, with the risk of another spurious last-minute veto from his minister.”

Ms Plibersek said the goldmine had not been blocked, and it was up to Regis ­Resources to find a “new site for the tailings dam”.

She also defended her decision not to attend the Bush Summit in Orange this week where she would be certain to be pressed on her decision: “We’re talking about a 2500ha site and I’ve said the tailings dam can’t be built on 400ha.”