Regis Resources Considers Legal Options After Major Project Write-Down

Regis Resources is exploring legal options after writing down the value of its McPhillamys gold project by over $100 million. The Australian government decision, aimed at protecting Aboriginal heritage, has halted plans to build a tailings dam at the site. Important cultural practices of the local Aboriginal groups are at stake.

Australian miner Regis Resources announced on Thursday that it is contemplating legal avenues after substantially writing down the value of its McPhillamys gold project by more than $100 million. The decision follows a government ruling aimed at safeguarding Aboriginal heritage.

Regis had intended to construct a tailings dam for its A$1 billion ($675 million) McPhillamys gold project over a location 250 km (155 miles) west of Sydney in New South Wales that also includes the headwaters of the Belubula river. However, Minister for the Environment and Water, Tanya Plibersek, issued a statement on Friday, asserting the site's significant cultural importance to local Aboriginal groups.

Plibersek's statement read, "Because I accept that the headwaters of the Belubula River are of particular significance to the Wiradjuri/Wiradyuri people in accordance with their tradition, I have decided to protect them." Following this, Regis wrote down the project value by A$192 million and is currently reviewing the government decision and considering its legal options. The Wiradyuri Traditional Owners Central West Aboriginal Corporation, who initially objected to the project, declined to comment.

(With inputs from agencies.)