Yeah, almost forgot this $100B project, a woke minister could be worse than Mali government.
The McPhillamys Gold Project, located near Blayney in New South Wales, Australia, and owned by Regis Resources, faced a significant setback due to a federal government decision under Section 10 of the Aboriginal and Torres Strait Islander Heritage Protection Act 1984. Here’s a summary of what happened:
Project Overview: The McPhillamys project aimed to develop a seven-million-tonne-a-year open-cut gold mine with a 90 km water-supply pipeline. It was expected to produce up to 200,000 ounces of gold annually over a 10- to 15-year mine life, creating 480 construction jobs and 260 operational jobs. The project had an estimated construction cost of $845–900 million and pre-production costs of $115–155 million. Approvals Process: In March 2023, the New South Wales Independent Planning Commission (IPC) granted development consent, subject to conditions, marking a significant milestone. The project was also approved under the federal Environment Protection and Biodiversity Conservation Act (EPBC Act) in May 2023. Regis was progressing toward a final investment decision by June 2024 and had completed a definitive feasibility study (DFS) by mid-2024. Section 10 Declaration: On August 16, 2024, Federal Environment and Water Minister Tanya Plibersek issued a Section 10 declaration to protect an Aboriginal heritage site, specifically the headwaters of the Belubula River, significant to the Wiradjuri people. This decision blocked the construction of the planned tailings storage facility (TSF) on the site, which Regis stated was critical to the project’s viability. Impact on Viability: Regis announced that the Section 10 declaration rendered the project unviable in its current form, as there was no immediately available alternative TSF location. The company withdrew the DFS outcomes, took a $192 million non-cash impairment, and withdrew 1.89 million ounces of ore reserves. Regis is now exploring alternative TSF solutions, which require extensive studies, and anticipates clarity on the project’s future by mid-2025. Legal and Community Response: Regis launched legal proceedings against the federal government in November 2024, challenging the decision. The Minerals Council of Australia and others criticized the move as undermining the Local Aboriginal Land Council’s support for the project and setting a “dangerous precedent” for mining approvals. Community reactions in Blayney were mixed, with some supporting the economic benefits and others opposing the mine due to environmental and cultural concerns. Transparency Concerns: A Senate inquiry in January 2025 highlighted that the Department of Climate Change, Energy, the Environment, and Water did not conduct on-site inspections during the heritage assessment, relying instead on late-stage evidence from a splinter Indigenous group. This raised questions about the decision-making process.
In summary, the McPhillamys project was halted in its current form due to the federal government’s Section 10 declaration to protect Indigenous heritage, leading to legal action and uncertainty about the project’s future. The outcome may influence how cultural heritage is balanced with economic development in Australian mining projects.
(20min delay)