Australian gold producer Regis Resources (ASX:RRL) has launched legal proceedings against the federal government over its decision to block development on part of the McPhillamys Gold Project area.
In mid-August, federal Environment Minister Tanya Plibersek partially upheld a Section 10 objection under the Aboriginal and Torres Strait Inslander Heritage Protection Act 1984.
The area in question was where Regis had planned to build a tailings storage facility (TSF).
Following the decision, the $2 billion miner told the market development of the McPhillamys Project, located in central western New South Wales, was no longer viable because it has no immediately available viable alternate location for the TSF.
“To advance an alternative TSF solution will require further extensive investigations and studies,” Regis said in its presentation to the Denver Gold Forum in September 2024.
“The timeframe to progress alternatives is measured in years, not months or weeks with no certainty of a viable alternative being realised.”
Just a few days later Regis booked a $192 million impairment against a significant portion of the carrying value of McPhillamys.
Regis has now started judicial review proceedings in the Federal Court of Australia challenging the minister’s decision.
The company is seeking a ruling from the court that the Section 10 declaration is legally invalid, that the Section 10 application be redetermined by a different minister and that Regis be compensated for legal costs.
Regis says that while it is difficult to predict how long the court process will take, the company is hopeful that it will be resolved by mid 2025.
Write to Angela East at Mining.com.au
Images: Regis Resources
