ASX-listed Regis Resources has announced that its McPhillamys gold project is no longer considered viable due to a recent environmental protection declaration by Environment Minister Tanya Plibersek. This declaration, which affects a crucial part of the project site, has cast uncertainty over the project's future.

Despite Plibersek's assurance that the declaration would not outright prevent the mine's development, Regis argues that it severely impacts a key area of the site essential for the project's success.

Regis CEO and MD Jim Beyer expressed surprise and disappointment at the Minister’s decision. “After a nearly four-year, protracted Section 10 assessment process, Minister Plibersek has concluded there are grounds to block the development of the McPhillamys gold project. This has effectively overridden the conclusions on this question that were already determined by the NSW Independent Planning Commission (IPC) and Minister Plibersek on approving the project under the Environmental Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act). The referral made by Regis under the EPBC Act included an assessment of Aboriginal cultural heritage, which at that time, the Minister’s delegate did not note as a point of concern for the Project."  

Beyer highlighted the substantial benefits the project is expected to bring, referencing a newly released definitive feasibility study. The McPhillamys gold project is projected to deliver significant economic value through job creation, infrastructure development, skills training, and contributions in terms of procurement, council rates, and taxes at both state and federal levels.

"Given the value, Regis has persevered in the face of a lengthy approvals process and was reassured with the feedback received from the Orange Local Aboriginal Land Council, the key local Aboriginal representative group, and their subsequent submission in relation to the project to the IPC.” 

In light of the Section 10 declaration, Regis is now reassessing the project’s A$190-million valuation and its ability to continue reporting the project's ore reserves.

The company is exploring all available legal options in response to the decision.