The Federal Court has ruled against the Australian government’s decision to block the construction of a $1.3 billion gold mine in central New South Wales, finding that the former environment minister exceeded her authority in halting the project. The judgment, delivered by Judge James Stellios on Wednesday, criticized the process used by then-Minister Tanya Plibersek, stating that it unfairly harmed the interests of the mining company Regis Resources.

The mine’s cancellation had been based on the invocation of the Aboriginal and Torres Strait Islander Heritage Protection Act, citing contested Indigenous claims related to a Dreaming story associated with the site. The Wiradjuri Traditional Owners Central West Aboriginal Corporation led the campaign opposing the mine, arguing for the protection of culturally significant land.

Judge Stellios ruled that the minister’s decision contained procedural errors, effectively overturning the block on the mining project. However, the judge emphasized that the ruling did not address the substantive merits of the cultural claims or the project’s potential impact. The government’s environment minister, Murray Watt, acknowledged the court’s findings as pinpointing an administrative mistake but maintained that the underlying cultural concerns remained valid. He also indicated that reforms to heritage protection laws are being considered to provide clearer guidance and greater certainty for all parties involved.

Regis Resources faces the prospect of recovering legal costs from the government, with industry sources estimating expenses between $2 million and $3 million. These costs could ultimately be borne by taxpayers should the company succeed in claims for reimbursement.

Reactions to the ruling have been mixed. A senior Aboriginal leader expressed support for the judgment, while activist groups involved in the initial opposition signaled readiness to pursue further legal avenues to secure what they describe as the “highest level of respect and protection” for the site. The dispute highlights ongoing tensions in balancing resource development with Indigenous cultural heritage rights under current Australian laws.

The decision marks a notable setback for Prime Minister Anthony Albanese’s administration, which has faced criticism over its handling of the issue and its alignment with Indigenous groups opposing the project. The government’s approach to Indigenous heritage protection and resource development continues to be a contentious policy area, with calls for legislative reform likely to intensify in the aftermath of this ruling.