Tanya Plibersek has moved to hose down outrage over her decision to torpedo a $1 billion gold mine project that sparked industry fears Australia could turn into a “sovereign risk” for investors.
The Environment Minister was forced to defend the move again on Tuesday morning, claiming the bombshell ruling — made after contested Indiengous heritage claims — was necessary to prevent a repeat of Rio Tinto’s Jukkan Gorge disaster.
“If we sincerely believe that we can’t allow the destruction of cultural heritage in that way then occasionally decisions like this have to be taken,” Ms Plibersek told ABC radio.
Regis Resources’ McPhillamys gold mine development in regional NSW is effectively up in smoke after Ms Plibersek used Federal Aboriginal heritage protection laws to block a proposed tailings dam.
In a statement to the ASX, the company’s boss said the decision meant the project, which had already received all other relevant State and Federal approvals, was now “unviable”.
The company had investigated other sites for the dam but none were considered feasible — a fact that was communicated to Ms Plibersek.
Despite this, Ms Plibersek on Tuesday again urged Regis to explore alternative locations, insisting her decision did not mean the mine project could not go ahead at all.
“If they are right in saying there’s around $7 billion worth of gold to be extracted from this mine, I think it’s in their interests to have a look at those alternative sites that they’ve previously investigated,” she said.
The 11th-hour ruling under section 10 of the Aboriginal and Torres Strait Islander Heritage Protection Act has sent shockwaves through the mining sector and prompted fresh warnings about the “sovereign risk” of investing in Australia.
Association of Mining and Exploration Companies chief executive Warren Pearce said the “incredibly disappointing decision” set a “truly terrible precedent” for investors.
“The absolute absurdity of this decision is that in upholding the Section 10 Objection the Minister has chosen to ignore the views of the recognised Traditional Owners for this country (the Orange Local Aboriginal Corporation), who did not object to the Project,” he said.
“They could see the value and future prosperity that this project could bring to their people. It’s a shame the Minister didn’t listen to them while purporting to protect their interests.
“Absolutely nobody benefits from this decision. Not the local community, not Traditional Owners, not the State of New South Wales nor the industry. It’s a lose, lose, lose.”
But Ms Plibersek brushed off those concerns.
“These laws have been around since 1984. Following Australian law is not sovereign risk — that is following Australian law,” she said.
The Coalition’s environment spokesman, Jonno Duniam, said the decision had opened a “Pandora’s box of projects that the minister could reject tomorrow which severely affects our sovereign capabilities”.
“After ticking every environmental approval box possible and with mines already taking up to sixteen years to get approved, the decision is further proof that the Labor Government will go to any length to stop developments, all in the name of harvesting Greens votes in inner-city electorates,” Senator Duniam said.
“This is the most anti-jobs, anti-development government Australia has ever had and this decision is proof positive of that.
“Tanya Plibersek is willing to go to these lengths to block productive projects and with them, hundreds of jobs and billions in investment.”