A federal court ruling on the future of Regis Resources’ $1 billion McPhillamys goldmine in central-west New South Wales is expected Wednesday, following a legal challenge to an environmental block imposed in 2024. The decision comes amid heightened concerns over the impact of recent court rulings on investor confidence in Australia’s mining sector.
The McPhillamys project was halted after then-environment minister Tanya Plibersek invoked Indigenous heritage laws to prevent the construction of a tailings dam. Ms Plibersek issued a ban under section 10 after accepting claims from a local Indigenous group that the site held cultural significance related to the blue-banded bee Dreaming story. The authenticity of this heritage claim has been disputed by representatives of the Orange Local Aboriginal Land Council, prompting Regis Resources to contest the ban in federal court.
The project, which would have generated approximately 900 construction jobs and 260 ongoing positions, now awaits the judgment of Judge James Stellios following hearings held in December. Prior to the hearings, Judge Stellios approved a non-publication order, limiting public access to critical evidence behind the minister’s decision after a government request.
Opposition resources spokeswoman Susan McDonald warned that additional judicial setbacks to mining projects risk diminishing Australia’s reputation as a stable and attractive destination for mineral investments. She criticised the decision-making process, stating that projects which have met environmental and regulatory approvals are being blocked due to “anti-mining” ministerial interventions influenced by political considerations.
In 2024, Ms Plibersek defended the ban, arguing that the potential economic benefits of the mine did not justify "irreversible damage" to Aboriginal cultural heritage. Conversely, Wiradjuri elder Roy Ah-See, who has advised the Orange Local Aboriginal Land Council, expressed support for the mine, citing its potential to foster economic empowerment and greater inclusion of Indigenous communities in the regional economy. He emphasized the importance of such projects in delivering wealth creation opportunities to Aboriginal Australians.
Mining industry representatives have expressed concern over the case’s outcome, with some viewing a ruling against Regis as a warning sign that could heighten uncertainty across the sector. The New South Wales government has voiced its backing for the McPhillamys development, with Natural Resources Minister Courtney Houssos highlighting state support.
The McPhillamys dispute follows a recent High Court decision against MACH Energy’s Mount Pleasant coal mine extension, where the court found that the environmental approval process failed to properly consider the global emissions impact of exported coal. Minerals Council of Australia CEO Tania Constable attributed these legal challenges to coordinated "lawfare" campaigns by anti-mining groups, which she said threaten Australia’s investment pipeline, job prospects, and regional communities.