Regis Resources rubbishes Plibersek claims that $1b NSW gold mine is still viable after ‘songline’ rejection

The McPhillamys gold mine has been stopped from going ahead, project proponent Regis Resources says, proving a statement by Environment Minister Tanya Plibersek to be wrong.

Subiaco-based Regis emerged from a trading halt on Monday to confirm its planned $1 billion McPhillamys project in New South Wales had gone up smoke, after Minister Plibersek ruled in favour of a Section 10 application under the Aboriginal and Torres Strait Islander Heritage Protection Act 1984.

Ms Plibersek late on Friday said she had made a “partial declaration” that would “protect a significant Aboriginal site” from being “destroyed” to build the McPhillamys tailings dam.

The West Australian first revealed the ruling in favour of the Section 10 application, hours after Regis ducked into a trading halt earlier on Friday.

The Minister downplayed the significance of her McPhillamys rejection, saying “crucially, my decision is not to stop the mine”, while suggesting the tailings dam could be built elsewhere.

But on Monday Regis rubbished that assertion via an ASX announcement.

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

“Regis notes that during the Section 10 assessment process, 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.”

The Jim Beyer-led Regis said that the Section 10 declaration has forced it “to revisit” the $190 million book value of McPhillamys while it considers “all legal options”.

The company had been stuck in bureaucratic purgatory since October 2020 when a Wiradyuri Elder submitted the Section 10 application against McPhillamys.

Some Wiradyuri Elders have claimed the project will destroy “songlines” across the nearby Kings Plains and Belubula River.

Regis had received all other substantive State and Federal approvals for McPhillamys.

The primary Aboriginal corporation in the region — the Orange Local Aboriginal Land Council — was not against the project.

Association of Mining and Exploration Companies chief executive Warren Pearce on Sunday said McPhillamys would have created 580 construction jobs and $200 million worth of royalties to NSW.

“This is an incredibly disappointing decision that lacks reason and common sense, and sets a truly terrible precedent for investment risk in Australia,” Mr Pearce said.