Gold miner Regis Resources has strongly criticised the Albanese government's decision to block its flagship McPhillamys Gold Project in New South Wales, amid concerns over cultural protection.
Regis reported a significant FY24 net loss of $186 million — largely attributed to a $192 million non-cash impairment related to the now-unviable McPhillamys project, which the company expected to yield around 2.02 million ounces of gold and generate hundreds of jobs.
Regis CEO Jim Beyer expressed dismay over the decision, saying: "It does make us a bit more wary about investment decisions in Australia."
“There used to be parts of the world that we would not consider because of the sovereign risk and where things could be flipped for no reason. We did not think it could happen here.
“We will still consider Australia but it has certainly affected the attractiveness and we have to now consider sovereign risk in some parts of the country.”
Beyer emphasised the company's disappointment, highlighting the substantial community support and economic benefits that the project promised, including job creation and local development.
Explaining her decision to prevent a tailings dam for the mine being built near the headwaters of the Belubula River, Environment Minister Tanya Plibersek said “the headwaters are of particular significance to Wiradjuri/Wiradyuri people,” who traditionally lived in the area.
She said the decision “is not to stop the mine”, and that “protecting cultural heritage and development are not mutually exclusive. We can have both.”
But, according to Beyer, the decision renders the project unviable in its current form, potentially delaying it by a decade.
“To advance any form of realistic and approvable alternative Tailing Storage Facility solution requires further extensive investigations and studies, along with the restart of the state and federal approvals processes,” he said.