The company behind a $900 million open cut gold mine in the New South Wales Central West says a decision by the federal environment minister means the entire project is no longer viable.
Regis Resources was planning to extract up to 60 million tonnes of ore and produce 2 million ounces of gold from the McPhillamys Gold Project near Blayney.
On Friday, Environment Minister Tanya Plibersek accepted an application by a coalition of Wiradjuri elders to protect the headwaters and a section of the Belubula River from any mining desecration.
The mine's waste storage, known as a tailings dam, was to be constructed on the river's headwaters which is no longer possible after the minister's decision.
Regis Resources had previously received conditional approval to extract gold for up to 11 years. (ABC Central West: Tim Fookes )
In a statement, Regis said the decision impacts a critical area of the project development site and means the project is no longer financially feasible.
However, Ms Plibersek disputes the company's claim the project is no longer viable.
"It doesn't mean the gold mine can't go ahead, it simply means an Aboriginal heritage site can't be destroyed," she said.
"Building a waste dump on that particular site would have destroyed the headwaters of the Belubula River which is a place of particular significance."
In the statement, Regis said it is assessing the decision and considering all legal options.
"It was made clear to the minister that the project would not be viable if the Section 10 declaration was made."
Ms Plibersek said it is up to the company to decide whether to pursue legal action but the correct decision has been made.
"They'll make whatever decisions they think are in the best interests of the company," she said.
"It has thousands of years of use and culture attached to it ... Its destruction would be devastating for traditional owners in the local area."
What is a Section 10?
Under Section 10 of the Aboriginal and Torres Strait Islander Heritage Protection Act an Indigenous person can make an application to protect an area from a development's impact.
The applicant must convince the federal minister for the environment the area is worthy of protection on cultural grounds.
The application was made on behalf of a group of Wiradjuri elders, stating that the Belubula headwaters and the Belubula River were of extreme cultural significance to the Wiradjuri people.
The group included the Aboriginal corporation Wiradyuri Traditional Owners Central West Aboriginal Corporation (WTOCWAC) whose knowledge also contributed to a protection order being placed over Bathurst's Mount Panarama Wahlu in December 2021.
The Belubula headwaters Section 10 was lodged in October 2020.
Members of the application have declined to be interviewed.
Minerals Council suggests 'dangerous precedent'
NSW Minerals Council chief executive Stephen Galilee said the protection order set a "very, very dangerous precedent" for developments currently seeking approval across New South Wales.
In an interview with NSW Country Hour, Mr Galilee described the planning system as unfairly skewed against developers.
"Being blocked at the very last minute and at the last hurdle, it's clear the planning system is too unfairly stacked against getting anything approved in NSW," he said.
Environment Minister Tanya Plibersek accepted the application which asked for protection for the headwaters and a section of the Belubula River. (ABC News: Luke Stephenson)
Local community divided
The announcement has split the community in the nearby town of Blayney.
Mayor Scott Ferguson said that while there were some people opposed to the mine going ahead in the proposed location, there were many who felt disappointed by the fall out of the decision.
"There's certainly plenty of people that are very disappointed that we probably won't see a billion dollar investment in the region that was going to bring hundreds and hundreds of jobs," Cr Ferguson said
The mayor said the project being scuppered could impact Blayney Shire Council's financial position by as much as $20–30 million over the next 15 years.
Farmer and spokesperson for the Belubula Headwaters Protection Group Rebecca Price said the minister's decision meant mine opponents could finally "look forward".
"Through proper management and continual care of our country we can now plan ahead and have a wonderful legacy to pass on to younger generations."