Regis revives McPhillamys after gold rally

Australian gold miner Regis Resources (ASX: RRL) has moved to revive its stalled McPhillamys gold project in New South Wales by seeking approval for a new waste storage design after a federal heritage ruling rendered the original plan unviable.

In August 2024, then environment minister Tanya Plibersek blocked Regis from building a tailings dam near the headwaters of the Belubula River outside Blayney, halting development of the proposed mine.

The decision forced the company to book a non-cash impairment of A$192 million ($135m) and warn that relocating the tailings facility would effectively restart approvals, potentially delaying the project by up to a decade.

After a sharp rally in gold prices, Regis this week asked the Environment Department to approve an alternative waste storage location that would not require reopening the entire approvals process.

The proposal centres on an “integrated waste landform” that would store processed ore with waste rock along the eastern and southern edges of the project, while keeping the mine and processing facilities as approved by the department in 2023.

Below optimal

Regis said the original tailings dam remained the “optimal” solution but argued the revised design would allow the project to proceed under existing approvals.

The company is simultaneously suing the federal government in the Federal Court, seeking to overturn Plibersek’s heritage declaration on the grounds it was denied procedural fairness and that officials accepted claims about the blue-banded bee without sufficient scrutiny.

McPhillamys hosts at least 2.26 million oz. of gold, according to Regis disclosures. At Tuesday’s gold price of $4,906 an oz., the resource could theoretically generate more than $11 billion in revenue if fully mined and sold.

Regis also applied on Monday for approval of a new 90-km water pipeline from EnergyAustralia’s Mt Piper coal-fired power station near Lithgow, along with a new power line after the previous connection was caught up in the heritage ruling.

Shares in Regis Resources closed 4.5% higher at A$8.06 on Tuesday in Sydney, valuing the company at A$6.1 billion (C$5.84 billion).