The Federal Court has overturned a Commonwealth decision that halted a billion-dollar gold mine in New South Wales.
Regis Resources launched legal action against then federal minister for environment and water Tanya Plibersek in August 2024, challenging the validity of an Aboriginal Protection Order she granted over part of its McPhillamys Gold Project near Blayney.
The order applied to 400 hectares of the site, including an area where the company wanted to build a tailings dam, which is used to hold mining waste.
It was made after the mining project received approval in 2023.
At the time, Ms Plibersek said the order would protect the headwaters and springs of the Belubula River and that the company could construct its tailings storage elsewhere.
But Regis Resources disputed this, saying the decision impacted a critical area of the project development site and meant the project was "no longer financially feasible".
The Section 10 Aboriginal Protection Order made (in yellow) over part of the McPhillamys Gold Project site (in grey). (Supplied: Regis Resources)
Justice James Stellios has presided over the Federal Court challenge and held two days of hearings in December 2025.
He delivered his judgment during a short sitting today, which found that Regis Resources was successful in its challenge and the minister's "declaration is invalid".
The Aboriginal Protection Order was granted after Wiradyuri elder Aunty Nyree Reynolds lodged an application to protect the area under Section 10 of the Aboriginal and Torres Strait Islander Heritage Protection Act in 2020.
Tanya Plibersek granted the Aboriginal Protection Order over part of the McPhillamys mine site in 2024. (ABC News: Ian Cutmore)
The court heard the application was supported by the Wiradyuri Traditional Owners Central West Aboriginal Corporation (WTOCWAC) and referred to a Dreaming story called the Blue Banded Bee.
Justice Stellios told the court that this information "constituted a new application" and should have been referred to the government reporter for consideration and to carry out a public consultation process.
"Consequently, the declaration made by the minister was made without authority,"
Justice Stellios said.
"The court's decision and my reasons say nothing about the merits of the claim ... whether it's a significant area or under threat of injury or desecration ... those are matters within the authority of the minister ... not the jurisdiction of this court."
Regis Resources took the office of the federal environment minister, now held by Murray Watt, to the Federal Court. (ABC News: Matt Roberts)
Justice Stellios said the appropriate remedy was for the proposal to be sent back to the federal minister for environment and water, now held by Murray Watt, for redetermination.
He ordered the parties to provide written submissions on costs to be submitted by October 27.
'Committed' to mine
In its 2026 annual report to shareholders published in August, Regis Resources said work was "well advanced" on an alternative tailings facility.
"We remain committed to McPhillamys, which has the potential to become not only a long-life, low-cost operation but also the core of a significant new mining hub, with multiple associated growth opportunities," the report said.
The company said it was aiming to have a final investment decision on the project in the first half of 2028.
The ABC has contacted the WTOCWAC, Regis Resources and Mr Watt for a response.