Deloitte: Australia’s mining industry ‘in the eye of the storm’

Regis reassesses ‘unviable’ $1b gold mine Regis Resources (ASX: RRL) is proposing a new development approach for its McPhillamys mine in NSW, which was derailed in 2024 by an Indigenous heritage ruling.The ruling made in August 2024 — more than a year after the project was approved — denied the construction of a tailings dam near the Belubula River in an attempt to protect culturally significant land.The company took the decision to the Federal Court and the matter was heard by the court in December 2025.Regis has argued that the view held by the Federal Department of Climate Change, Energy, the Environment and Water (DCCEEW) changed after additional evidence was produced by an independent Aboriginal elder more than a year after approval was granted — believing that further investigation into the Dreaming story used as evidence should have taken place before the ruling was handed out.If Regis’ application is successful, the company will seek a declaration from a Federal Court judge that the 2024 ruling handed down by then Federal Environment Minister Tanya Plibersek is legally invalid and that the application be redetermined by a different minister.Following Regis’ challenge to the Federal Court, Minister Plibersek remained adamant in her ruling.“The truth is we are living in a country where we’ve got thousands of years of continuous culture and heritage. We’ve done a pretty bad job of protecting it in the past,” Minister Plibersek said.“Protecting cultural heritage and development are not mutually exclusive. We can have both.“Crucially, my decision is not to stop the mine. The company has indicated to me that it has assessed around four sites and 30 potential options for the tailings dam.”Following the ruling, contrary to Minister Plibersek’s declaration, Regis deemed the project as non-viable, stating it would take up to 10 years to identify and gain approval for an alternative tailings site, before taking out a non-cash impairment of $192m.With the Federal Court’s ruling pending, Regis continues to progress a dual-track strategy to return McPhillamys to an approvable status.In parallel with the ongoing court process, Regis has advanced work assessing the suitability of an integrated waste landform incorporating a form of co-disposal within the planned waste dump.Initial study outcomes indicate that the concept is technically feasible and further detailed engineering, environmental and commercial assessments are underway to progress facility design, approvals pathway and potential development timeframes.

On Tuesday, billionaire Sanjeev Gupta placed his Tahmoor coal mine into voluntary administration after a year of uncertainty.Mr Gupta’s latest grapple to retain control came just hours after creditors, led by Coal Mines Insurance (CMI), appeared in the Supreme Court in Sydney to push Tahmoor into liquidation over unpaid insurance claims.The hearing was adjourned until February 18, but Mr Gupta took things into his own hands when Tahmoor Coal’s board, which includes Mr Gupta, placed the company into voluntary administration.This last-ditch effort prevents creditors from forcing liquidation over the unpaid debts and allows Mr Gupta more time to find an alternate pathway for Tahmoor.During the hearing, workers’ compensation provider CMI sought $4.7m in unpaid insurance premiums. Financial statements for FY24 were also bought forth, reporting unpaid creditor claims that exceeded $18.9m.Mining and Energy Union south-west district president Bob Timbs says Mr Gupta’s record is one of disaster and broken promises for regional communities.“If this mine is not sold to a serious and reputable operator soon, it will become harder and harder to restart it safely,” he said.Last week, Tahmoor parent company GFG Alliance rejected a $350m purchase offer from a consortium led by the site’s main contractor RStar — the employer of 250 of the 500 Tahmoor workers who are currently stood down without pay while the mine is idle — according to the Mining and Energy Union.“We are very concerned that Mr Gupta is playing for time to try and hold on to Tahmoor, which he has already milked for profits to fund his failed ventures elsewhere,” Mr Timbs said.“This could put the mine out of action permanently.”The Tahmoor coal mine is the latest victim in an extensive trail of resource businesses led by Mr Gupta that have fallen into administration across Australia.In February last year, the South Australian Government forced Whyalla Steelworks’ operator OneSteel Manufacturing into administration to avoid it becoming ‘irredeemable’ under Mr Gupta who was the previous owner.Legislation was pushed through state parliament to allow the South Australia Government to act on the significant outstanding debts, including unpaid royalties of $18.5m and a $15m bill to SA Water, owed by Whyalla Steelworks' owner GFG Alliance — which is headed by Mr Gupta.In November, Mr Gupta appointed William Buck as the voluntary administrator for his company Liberty Primary Metals Australia (LPMA). The decision came prior to a Federal Court hearing scheduled to discuss its liquidation for unpaid debts to NRW Holdings (ASX: NWH) subsidiary Golding.LPMA held majority of shares in Tahmoor coal mine and was also a previous owner of the Tahmoor colliery, Whyalla steelworks and Liberty Bell Bay manganese smelter.Mr Gupta has been under scrutiny since 2021, following the collapse of GFG’s largest creditor, Greensill Capital. Administrators for the company were unable to verify financing and sales invoices, totalling about $400m, related to loans to GFG as companies listed on the invoices denied ever working with Mr Gupta or his companies.In 2021, the UK Serious Fraud Office launched a criminal investigation to investigate suspected fraud, fraudulent trading and money laundering in relation to the financing and conduct of the business of companies within the GFG Alliance, including suspected fraud links to the collapse of Greensill Capital.In 2024, Greensill Capital’s appointed administrator released a report claiming the company was owed about $1b (£472m) form GFG Alliance.The SFO investigation is ongoing.

Black Cat Syndicate’s (ASX: BC8) Lakewood processing facility has begun processing ore from the Fingals open pit and Majestic underground mines in WA.In February last year, Black Cat acquired the facility from Westgold Resources (ASX: WGX), in a move that brought forward Kal East by 15 months.Across the next 12 months, the company will invest $20m of operating cashflow to expand the processing facility’s capacity from 1.2mtpa to 1.5mtpa.Meanwhile, the Fingals open pit and Majestic underground mines continue to ramp up, with an estimated 183kt stockpile of ore currently available for processing.Black Cat managing director James Bruce comments on the milestone.“The successful ramp-up of the Fingals and Majestic mines within twelve months and within budget is a credit to the ‘can-do’ culture and experience of the Black Cat team,” he said.“The capital-efficient expansion of Lakewood will unlock further value from our Kal East operations for years to come.“Securing sufficient contracted fuel is an important outcome at a time when uncertainty persists across Australian fuel supply networks.”Black Cat says it is not currently experiencing supply issues with diesel or fuel. Lakewood is grid connected and does not require fuel for the vast majority of its power requirements.