A peak mining group has lashed out at Federal Environment Minister Tanya Plibersek’s decision last week to block Regis Resources’ plan for the McPhillamys gold project.
Association of Mining and Exploration Companies chief executive Warren Pearce said the $1 billion investment to build McPhillamys development near Orange, NSW — as well as 580 construction jobs and $200 million worth of royalties to the State — just went up in smoke.
“This is an incredibly disappointing decision that lacks reason and common sense, and sets a truly terrible precedent for investment risk in Australia,” he said on Sunday.
“If any project, no matter how thoroughly consulted, negotiated, supported and assessed, can be knocked over by the objections of only a few people at the end of the process, then how can any company or investor have confidence to invest in Australia.”
Subiaco-based Regis entered a trading halt on Friday pending a formal announcement about a Section 10 application under the Aboriginal and Torres Strait Islander Heritage Protection Act 1984.
The application was against the McPhillamys gold project. Ms Plibersek at the time said she had made a “partial declaration” that would “protect a significant Aboriginal site” from being “destroyed” to build the McPhillamys tailings dam.
Regis on Sunday again declined to comment.
Mr Pearce said Ms Plibersek had chosen to prioritise the views of a small number of people who were not the local lands council.
“The absolute absurdity of this this decision, is that in upholding the Section 10 objection the Minister has chosen to ignore the views of the recognised Traditional Owners for this country (the Orange Local Aboriginal Corporation), who did not object to the project,” he said.
“They could see the value and future prosperity that this project could bring to their people. It’s a shame the Minister didn’t listen to them, while purporting to protect their interests.”
Mr Pearce added it was a “lose, lose, lose” decision for the local community, Traditional Owners and NSW, as well as the industry.
The decision will force Regis back to the drawing board to find a new location for the tailings dam — a crucial component of a mine that holds the left-over materials from the processing of ore.
The Jim Beyer-led company will then need to jump over all the various regulatory hurdles again to get a new mining proposal approved.
Regis has received all other substantive State and Federal approvals.