The Australian mining industry has been rocked by the federal government’s recent decision to effectively block the $1 billion McPhillamys gold project in New South Wales.
Environment Minister Tanya Plibersek issued a Section 10 declaration under the Aboriginal and Torres Strait Islander Heritage Protection Act, effectively rendering the project unviable.
Regis Resources, the company behind the project, announced it would take a non-cash impairment of $192 million against the carrying value of the proposed mine.
The company has also withdrawn the project’s definitive feasibility study and scrapped the previously reported 1.89 million ounce ore reserve.
Jim Beyer, Regis Resources’ managing director and CEO, expressed surprise and disappointment at the decision, noting that the project had already undergone a four-year assessment process.
The company stated that finding an alternative site for the tailings dam would restart the approvals process, potentially delaying the project by up to a decade.
The mining industry has strongly criticised the decision, with the Minerals Council of Australia (MCA) expressing disappointment, particularly given the project’s support from the recognised Local Aboriginal Land Council.
Tania Constable, CEO of the MCA, highlighted the industry’s significant contributions to Indigenous engagement and employment.
Warren Pearce, CEO of the Association of Mining and Exploration Companies, warned that the decision undermines investor confidence in Australia.
He emphasised the absurdity of ignoring the views of recognised Traditional Owners who supported the project.
The decision has raised concerns about the federal government’s decision-making process and its potential impact on future projects.
The MCA has called for greater transparency and urged the government to ensure that future decisions reflect the voices of those who truly represent their communities.
This controversial ruling has ignited a debate about balancing Indigenous heritage protection with economic development, and its implications are likely to reverberate through the Australian mining industry for years to come.
