Regis Resources sues Australian minister over blocked gold mine

Cecilia Jamasmie | November 7, 2024 |

The McPhillamys gold project, about 250 km west of Sydney. (Image courtesy of Regis Resources.)

Regis Resources (ASX: RRL) has initiated legal proceedings to overturn a federal minister’s decision that halted its $1 billion McPhillamys gold and silver project in New South Wales, Australia.


Environment Minister Tanya Plibersek issued in August a “Section 10” order to protect Indigenous heritage sites, which effectively prevented Regis from constructing the mine’s tailings dam near the headwaters of the Belubula River, the proposed site.

The Western Australia-based gold miner argues the ruling contained “several issues and alleged failures,” providing grounds for their legal challenge.

Regis contends that the decision has made their project unfeasible and had hinted at potential legal action in recent statements.

“None of the extensive expert evidence produced during the years-long processes we went through to approve the McPhillamys project and respond to the Section 10 application indicated there was Aboriginal cultural heritage that could not be appropriately managed,” managing director and chief executive manager, Jim Beyer, said in the statement.

The executive emphasized that no impartial data supporting Plibersek’s cultural heritage ruling has been found to date.

“In the weeks following the Minister’s decision, it has become clear that key findings made by the Minister regarding Aboriginal cultural heritage are vigorously disputed,” Beyer added.

Following the decision, Regis wrote down A$192 million ($128m at today’s rates), nearly the entire value of the McPhillamys project.
Warnings dismissed

Beyer accused the Minister and the Department of not adequately considering the company’s warnings about the consequences of such a broad declaration.

“Since the minister has not agreed to revoke the Section 10 declaration, we are now seeking judicial review and relief from the decision,” the company said.


Regis hopes that the Federal Court will declare the Section 10 ruling legally invalid and appoint a new decision-maker to reassess the claims.

The project had faced delays since October 2020, when the Section 10 application was submitted, despite having received all other major State and Federal approvals.

If successful in their judicial review, Regis expects the Federal Court to declare the ruling legally invalid and appoint a new decision-maker to reassess all claims.

Shares in the company fell on the announcement, closing almost 5% lower to A$2.48 each in Sydney on Thursday. That leaves Regis with a market capitalization of almost A$1.9 billion ($1.3bn).