$1 million upfront payment from Regis to BSC if mine goes ahead

$1 million upfront payment from Regis to BSC if mine goes ahead

Blayney Shire Council will receive an upfront payment of $1 million from Regis Resources if the proposed mining project goes ahead.

Tabled during the November ordinary council meeting, the Draft Planning Agreement also details the amount of money that council will receive every year as a result of the development.

After the initial $1 million, council will receive a monetary contribution, one percent of the estimated total capital cost of the project, paid over the proposed 15 year operational life of the mine.

Current estimates will bring annual payments of $212,222, subject to CPI or two percent adjustment, whichever is the greater after the first annual payment.

Blayney mayor Scott Ferguson was quick to dispense of any idea that the agreement was in any way a reflection on council's view of the mine.

"We've been sitting on the fence on this, we recognise the views of both sides of the argument and our submission reflects that," he said.

"It's all part of the process, whether it's approved or not, we just have to do it."

Cr Ferguson said that council already has an agreement with Cadia and has done so for 20 years.

"Cadia's money isn't to compensate for the site or their neighbours, it's for those that are living within the community," he said. "Electric car stations, defibrillators, business grants, they all come courtesy of that agreement."

Manager, Special Projects at Regis Resources Tony McPaul said that the agreement provides for a payment of approximately four million dollars to the Blayney Council, to be spent on community facilities.

"Blayney Council and the local community will decide how the money is spent," he said.

"Councils also benefit from increased rates when a project like McPhillamy's pays rates based on mining activities."

Belubula Headwaters Protection Group president Dan Sutton said that the amount paid is microscopic in proportion to the amount that Regis will be making.

"They'll be paying maybe $4 million when their gross income over the same time will be five billion," he said. "It certainly won't cover the continued cost of managing the hole left behind when it's over."

The agreement will be on exhibition on council's website inviting public comment until 5 pm December 17.


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