McPhillamys gold project blocked

The Federal Environment and Water Minister Tanya Plibersek has made a declaration of protection over part of the approved McPhillamys gold project site owned by Regis Resources (ASX: RRL).

Minister Pilbersek says her decision is not to stop the mine and that protecting cultural heritage and development are not mutually exclusive.

On the contrary, Regis says this decision impacts a critical area of the project, making it non-viable.

Regis Resources chief executive Jim Beyer says Regis is 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.

“This has effectively overridden the conclusions on this question that were already determined by the NSW Independent Planning Commission (IPC) and Minister Plibersek on approving the project under the Environmental Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act),” he said.

“The referral made by Regis under the EPBC Act included an assessment of Aboriginal cultural heritage, which at that time, the Minister’s delegate did not note as a point of concern for the project.

“The recently released Definitive Feasibility Study (DFS) demonstrates that the project has significant value, both for Regis and as an economic contributor to the local community and to all levels of government in the form of jobs, infrastructure, skills and training, procurement, council rates, state and federal taxes and royalties.

“Given this value, Regis has persevered in the face of a lengthy approvals process and was reassured with the feedback received from the Orange Local Aboriginal Land Council (OLALC), the key local Aboriginal representative group and their subsequent submission in relation to the Project to the IPC.”

Regis is now revisiting the $190m carrying value of the project and its ability to continue to report ore reserves.

Minister Pilbersek says she is making the partial declaration under section 10 of the ATSIHP Act to protect a significant Aboriginal heritage site near Blayney, in central west NSW, from being destroyed to build a tailings dam for the gold project.

“The headwaters are of particular significance to Wiradjuri/Wiradyuri people and are linked to ongoing cultural practices of the area,” she said.

“They have featured in many traditions practiced for generations including by Aboriginal people transitioning from youth to young adulthood.

“Some of these traditions have been disclosed to me privately and must remain confidential due to their cultural sensitivity. If this site were to be desecrated, it would be a threat to the continuance of Wiradjuri/Wiradyuri culture.”

Regis is assessing the decision and is considering all options.