The future of a major open-pit gold mine in western New South Wales has been thrown into doubt after its owner said the project had become unviable due to a federal protection order.
ASX-listed Regis Resources said a decision by Environment Minister Tanya Plibersek to protect Indigenous heritage at the McPhillamys Gold Project in central-west New South Wales would halt the mine’s progress.
In March, the New South Wales Independent Planning Commission approved Regis’ application to mine gold in the area despite opposition from some members of the local Aboriginal community.
Regis chief executive Jim Beyer said the company was “extremely surprised and disappointed” that after nearly four years of evaluation, Plibersek had decided to effectively block development.
“(This) statement destroys any confidence that developers across Australia (both private and public) may have in the timelines and outcomes of project approvals,” it said in a statement.
The Minister’s Indigenous Heritage Protection Declaration covers part of the Belubula River, which is within the area earmarked for a proposed storage facility for discarded materials.
Regis has argued that there are no other viable options for the facility and that developing alternatives would require restarting the lengthy evaluation process.
“This decision affects a critical area of the project development site and means that the project is not viable,” he said.
The proposed area, just outside Orange, New South Wales, was to have an open-pit mine, processing plant and tailings dam (pictured)
Ms Plibersek’s office did not immediately respond to a request for comment on the statement about the mine, which is reported to cost $1 billion.
Under Regis’ proposal, an 11-year open-pit mining operation would be established in the Blayney-Kings Plains district near Bathurst.
The project would create nearly 1,000 jobs in the region, the company said.
The Association of Mining and Exploration Companies, an industry lobby group, said the government order “lacks reason and common sense.”
“This sets a truly terrible precedent for investment risk in Australia,” the association’s chief executive, Warren Pearce, said in a statement.
Ms Plibersek had ignored the views of local traditional owners, the Orange Local Aboriginal Corporation, who were not opposed to the project, she said.
“They could see the value and future prosperity this project could bring to their people,” Pearce said.
The Orange Local Aboriginal Corporation has also been contacted for comment.
