Regis Resources is currently researching the feasibility of developing an open-cut mine at McPhillamys Gold Project, located 8km north east of Blayney on historic gold fields. Regis says if the mine goes ahead it will employ approximately 150 full time workers over a mine life of ten years. The mine would produce approximately 150,000 to 200,000 ounces of gold per year. 

The mine, however, would require nine megalitres of water a day to function. 

“To advance the project through feasibility study a long term process water supply will be required,” stated a Regis media release. 

“To this end, Regis has entered into a non-binding heads of agreement with several parties for the long term use by Regis of water from the Mt Piper Power Station and Springvale Mine near Lithgow.”

Under the deal, Regis would receive the water for free but would foot the bill for piping and pumping the water about 70km to the McPhillamys site.

“The pipeline will bring with it some jobs, just in pipeline maintenance and the pumping system at the Lithgow end,” Regis spokesperson Rod Smith said.

“Post the Mcphillamys project there’s going to be an amount of infrastructure that remains in Lithgow possibly for other uses. It will connect a water rich area to a water poor area.”

Mr Smith said the company had a high degree of confidence that the new goldmine can fulfill the technical and regulatory requirements to go ahead. 

Finalisation of the formal agreement would see the gold mine use approximately a third of the Springvale Water Treatment Facility’s full water capacity, amounting to 4-5 gigalitres of water per year. 

Katie Brassil, Centennial Coal’s external affairs manager, said the agreement would not threaten Mt Piper Power Station’s water supply. 

“Anything given to McPhillamys is surplus to the water requirements of Mt Piper Powers Station and Springvale Mine,” she said. 

EnergyAustralia and Centennial Coal only received approval for the water treatment facility last month. The $100 million facility, once built, will treat mine waters from Springvale to be used in the Mt Piper Power Station’s cooling towers, removing the need for saline mine water to be released into the Coxs River. 

She said the non-binding heads of agreement illustrates the economic potential of mine water. 

“Mine water, with foresight, proper planning and infrastructure, can become a key economic driver for the future of this region by meeting the needs of a future agribusiness and industrial sector.”

Regis has also secured Lachlan region water access licences which could provide 4.5 gigalitres each year. Mr Smith said accessing water from Springvale Mine is the company’s first choice. 

Green groups in Bathurst have responded positively to the deal as the company had also been in talks with Bathurst Regional Council about the possibility of buying Bathurst’s treated effluent, which is currently discharged into Macquarie River headwaters. 

A community campaign “save the Macquarie” expressed fears the deal would lower water levels in the river. 

“I was always very keen that we retain all the treated water to go back into the river so I’m very pleased with that,” Bathurst councillor Monica Morse said. 

“The Macquarie is really only a very small river and so much depends on it beyond our city borders.”