The $1 billion McPhillamys Gold Project near Blayney in central-west NSW was given the kiss of life on October 14 when the Federal Court overturned an Aboriginal heritage order stalling its development.
The rare order had been issued in 2024 by then-environment minister Tanya Plibersek, who rejected the proposed site of a tailings dam in a move that mining giant Regis Resources said rendered the project unviable.
The mining sector claimed victory and urged planning reform when the court threw out the government's decision earlier in October.
Environment Minister Murray Watt confirmed the government did not plan to appeal the court decision and would instead focus on re-determining the project approval.
"We do need reform to Australia's cultural heritage laws," he told News24 on Sunday.
"Currently, they're not doing a good job in protecting cultural heritage and they're absolutely not doing a good job in terms of slowing down the projects that Australia needs."
Two new Aboriginal protection applications in relation to the gold project had been lodged since the federal court overturned the heritage order.
The additional bids, which are still being considered, were made under separate provisions to the initial protection order, meant to urgently protect Aboriginal areas from immediate threat of injury or desecration.Senator Watt said they were emblematic of "the range of different applications" being lodged, further evidence heritage laws needed an overhaul.
"We are seeing an absolute explosion in the applications under this law," he said.
"It is slowing down projects as well as failing to to deal with the genuine cultural heritage issues that exist around the country and that's why we need to reform."
Blayney mayor Bruce Reynolds has said the town of 3000 lost up to $8 million in rates with the project stalled.
Senator Watt said had no personal problem with it going ahead.
During proceedings over the government's now-defunct heritage order, the court heard the project site was linked to several Dreaming narratives including a blue-banded bee story.
But that tale was at the heart of fundamental procedural errors Canberra made in granting heritage protection over the mine's proposed location in 2024, Federal Court Justice James Stellios ruled.
The project has long been controversial in the region, where farmers and environmentalists have raised concerns about land use, risks of habitat loss, possible pollution, traffic and noise.
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