Regis Resources Challenges Halt of $1 Billion Australian Gold Project Over Heritage Concerns

Regis Resources Ltd (ASX: RRL) has launched legal action against Australian Environment Minister Tanya Plibersek’s decision to block its $1 billion McPhillamys gold and silver project in New South Wales. The project, a key element of Regis’ growth strategy, was halted under a “Section 10” protection order issued in August, citing the need to safeguard Indigenous heritage sites near the Belubula River.

The Section 10 order, enacted under the Aboriginal and Torres Strait Islander Heritage Protection Act, aims to protect culturally significant sites. At the center of the dispute is a proposed tailings dam, which Indigenous groups argue would encroach on sacred areas. Regis, however, contends that the decision disregarded extensive expert assessments indicating the project posed no unmanageable cultural risks.

“This decision lacks substantial evidence and overlooks critical technical findings,” said Regis CEO Jim Beyer. He also criticized the Minister for ignoring the company’s warnings that halting the project would impact its economic viability. In the wake of the ruling, Regis wrote down A$192 million in project-related losses and saw its stock drop 5%, closing at A$2.48, with a market valuation of A$1.9 billion.

Regis is now seeking a judicial review, asking the court to invalidate the Section 10 order and assign an independent decision-maker to reassess the project. The McPhillamys project, one of the largest undeveloped gold deposits in New South Wales, was expected to produce X ounces of gold annually and support hundreds of jobs in the region.