The federal government has provided a Statement of Reasons for its decision to issue an Aboriginal heritage protection order that essentially thwarted a $1 billion gold mine project in Central West New South Wales.

The decision is at odds with the position of the Orange Local Aboriginal Land Council, the recognised Native Title holders of the site, and was slammed by senior Wiradjuri ­advisor Roy Ah-See, who wrote that the Minister has turned "baseless claims" into "the accepted truth".

In his letter, Mr Ah-See told Ms Plibersek that claims regarding ancient camp ovens, possible burial sites and an initiation area near the proposed mine were examined and dismissed as having "no authenticity" in a cultural audit overseen by the Elders representing the local land council.

The letter communicates the Orange Local Aboriginal Land Council's frustration and disappointment that the expertise of its Elders was dismissed and called for an ­urgent review of the Section 10 ­evidence.

"You and your advisors do not have the skills to make these determinations. Surely Aboriginal culture and heritage decisions should be under the guidance of the Aboriginal Affairs Minister," he said.

"OLALC are respectfully requesting a review of the Section 10 evidence, through proper consultation … OLALC have a voice and they are using it, they just want to know if you are listening."

Pressure in Parliament led by Nationals leader David Littleproud prompted Environment Minister Tanya Plibersek to release a statement this week – almost two months after her controversial decision to ban the mine's tailings dam over Indigenous cultural reasons, effectively killing off the project by WA-based mining company Regis Resources.

The Belubula River originates at the mine site in Central West NSW and its springs and tributaries bear significance and meaning for Wiradjuri people.

In the 22-page statement, Ms Plibersek found 'irreversible' and 'permanent' loss to Aboriginal heritage outweighed the financial cost of halting the gold mine development.

"Having considered all the submissions and material available to me in relation to the proprietary and pecuniary impacts of the making of a declaration over the specified area, I was satisfied that the proprietary and pecuniary impacts to the proponent and others do not outweigh the irreversible damage and permanent loss to the Aboriginal cultural heritage in the declared area," she wrote.

"The long-term effect on cultural heritage is permanent, and the loss of cultural heritage cannot be mitigated or reversed.

"Development of the [tailings storage facility] would involve plugging the springs with cement and the TSF may cause water pollution, which would not only threaten water quality in the Lachlan-Murray basin, but will sever Wiradjuri connection to the specific area."

Ms Plibersek in August accepted an application by a cohort of Wiradjuri Elders to protect the area from 'injury' or 'desecration' due to its cultural significance.

In the document, Ms Plibersek criticised related NSW legislation over the declared site, saying it did not provide adequate protection, prompting her shock intervention.

Protection of the site could have been issued via the state's National Parks and Wildlife Act and its Heritage Act, but both would not apply to the approved State Significant Development.

Ms Plibersek cited a letter from the NSW environment minister Penny Sharpe, who said intangible cultural heritage values were "not currently protected under the National Parks and Wildlife Act 1974 unless an Aboriginal place is gazetted", which the proposed site was not.

"For these reasons, I formed the view that NSW legislation does not provide effective protection of the declared area," Ms Plibersek said in her statement.

Regis Resources had indicated an Aboriginal Cultural Heritage Management Plan for the site would be an "adequate tool" for protection, but the Minister found the company's plan would not cover "intangible heritage," and instead relate to Aboriginal objects.

The minister's decision was roundly criticised by the mining industry, business groups, the Coalition, and NSW Aboriginal Land Council, which expressed concern Aboriginal cultural heritage was being used for political advantage.

NSWALC represents the Orange Local Aboriginal Land Council. The Section 10 application was made by Wiradjuri elder Aunty Nyree Reynolds, represented by the Bathurst-based Wiradyuri Traditional Owners Central West Aboriginal Corporation.

Ms Plibersek admitted Regis Resources would be affected financially by her decision.

"I was satisfied the proprietary and pecuniary impacts to the proponent and others do not outweigh the irreversible damage and permanent loss to the Aboriginal cultural heritage in the declared area," she wrote.

"The long-term effect on cultural heritage is permanent, and the loss of cultural heritage cannot be mitigated or reversed."

Regis had countered her decision would eliminate the project's job opportunities, absolve the financial benefit to the Blayney community, and impact other indirect benefits such as training and education.

"I was satisfied that a partial declaration would make the proposed mine unviable in the state in which it is currently proposed and approved," Ms Plibersek said, acknowledging although the company could propose other sites for the tailings dam, that would prove a costly process.

Mr Littleproud said the $1 billion mine would have generated 800 regional jobs but the Minister's Section 10 decision not only ended the mine but "with it, the future of Blayney".

"Labor's cancellation of the Blayney tailings dam … is a devastating blow to Blayney and the Central West," he said this week.