NSW Nationals Leader Dugald Saunders says the Minns Labor Government needs to stand up to Federal Environment Minister Tanya Plibersek over a decision that will cause significant delays and possibly stop a new $1 billion gold mine near Blayney in the central west.
Regis Resources planned to build a tailings dam to store waste from its proposed McPhillamys mine, but has been informed by Ms Plibersek the dam cannot be placed at the proposed location.
Regis, in a statement to the Stock Exchange, said "Minister Plibersek has stated this declaration 'will not stop the mine.' To the contrary, this decision does impact a critical area of the project development site and means the project is not viable."
The statement goes on: "Regis further notes that this project has already been assessed and approved under both State and Commonwealth legislation."
Mr Saunders said questions have been raised around why Ms Plibersek would intervene in a project that had already secured approval from the NSW Independent Planning Commission, and directly contradicts the EPBC Act approval provided from within the Minister's own department.
"It seems the NSW Planning Minister and the Minister for Natural Resources are missing in action, and we need to hear from them as a matter of urgency as to where the State Government stands," Mr Saunders said.
"Regional Communities will feel the biggest impact of this move, losing 800 potential jobs and hundreds of millions of dollars in royalties.
"I have spoken to representatives from the NSW Minerals Council and they are at a loss over why this has happened.
"The Minns Labor Government needs to take immediate action to stand up for our country communities and help resolve this issue."