Blayney Shire Council will receive an upfront payment of $1 million from Regis Resources if the proposed mining project north of the town 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 per cent of the estimated total capital cost of the project, paid over the proposed 15-year operational life of the mine. Current estimates put the payments at $212,222 a year.
Regis Resources has also agreed to pay one per cent per additional capital expended above the original capital cost of the project.
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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.
"This is by no means an endorsement of the project."
Regis Resources special projects manager Tony McPaul said that the agreement provides for a payment of about $4 million to the Blayney Council, to be spent on community facilities.
"Blayney Council and the local community will be the ones who decide how and where 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."
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