Nationals Leader David Littleproud said Labor's reasons for cancelling the Blayney gold mine are becoming "increasingly odd."
It's been revealed Environment Minister Tanya Plibersek blocked the $1 billion project after an Indigenous artist used her own paintings to argue the mine should be scrapped.
The artist's submissions opposing the project, made to the NSW Government, were based on paintings she did herself.
These paintings reportedly led the Minister to make a heritage protection declaration.
"Labor is clutching at straws for cancelling a $1 billion gold mine," Mr Littleproud said.
"The Orange Local Aboriginal Land Council is the recognised Native Title holders of the site under NSW law, but the Minister has ignored them and instead opted for paintings made by the same person opposing the mine, in her decision to take away the future of Blayney.
"The Minister has also turned a 'baseless claim' determined by an independent panel of the Wiradjuri Corporation into an 'accepted truth' over the cultural significance of the site, ignoring the Orange Local Aboriginal Land Council's advice, who represent Indigenous Australians in the area.
"Minister Plibersek has made a political decision, thinking that she knew better on Indigenous cultural heritage issues than the Orange Local Aboriginal Land Council, which is the responsible Aboriginal Land Council."
Mr Littleproud said the Minister has also cited a mural at Bathurst post office as proof of the blue-banded bee dreaming story and a central reason to stop the Blayney gold mine.
"It's as though Tanya Plibersek has given the same weighting of a modern painted mural to that of one painted on cave walls thousands of years ago, it's simply bizarre," he said.
"The Minister has used a Section 10 to put a stop to 800 jobs in the region as well as a future and a hope for the people of Blayney.
"The Minister also overruled the NSW Government and her own Department, further damaging the business community's confidence in the Albanese Government.
"This decision creates sovereign risk, not just in the Central West, but Australia."
The Minister's Statement of Reasons was provided to mining company Regis Resources, following pressure from The Nationals in the House of Representatives.
