US aluminium giant Alcoa will pay $55 million to restore damaged habitat in Western Australia’s Northern Jarrah Forest after admitting to clearing land for bauxite mining without the required approvals, federal Environment Minister Murray Watt announced Wednesday.
The penalty, described as “unprecedented” and “the largest conservation-focused commitment of its kind” by Minister Watt, relates to illegal clearing activities that occurred between 2019, and 2025. Alcoa did not obtain necessary approvals under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 before undertaking the clearing.
As part of an enforceable undertaking reached with the federal government, Alcoa will fund ecological offsets designed to permanently preserve important habitat within the forest. The agreement likewise includes expanded conservation programs focused on Western Australia’s three black cockatoo species and enhanced management of invasive species.
Despite the penalty, the federal government has granted Alcoa a national-interest exemption allowing it to continue clearing land for its mining operations for the next 18 months. This exemption is contingent upon the completion of a strategic assessment of the environmental impacts of Alcoa’s operations. Minister Watt stated the exemption is crucial for maintaining bauxite supply for both domestic industry and international trade partners, and for sustaining Alcoa’s workforce of approximately 6,000 employees.
Alcoa has committed to providing an additional $4.2 million in offsets to mitigate the environmental impacts associated with the activities covered by the exemption. The federal environment department and Alcoa will collaborate to develop a strategic assessment agreement, aiming to guide sustainable mining practices at Alcoa’s Huntly and Willowdale operations, located roughly 100 kilometers south of Perth, through 2045.
“This agreement will enable government to assess the cumulative environmental impacts of Alcoa’s local mining operations and provide strong protections for threatened species and ecological communities, although offering Alcoa long-term operational certainty,” Senator Watt said.
Alcoa President and Chief Executive William F Oplinger stated the company welcomes the move towards a modernized approvals framework, which he believes will provide a clearer understanding of the potential environmental consequences of land clearing and mining activities. Alcoa will limit annual clearing to 800 hectares and increase rehabilitation efforts to 1,000 hectares per year by 2027.
“We are committed to responsible operations and welcome this important step in transitioning our approvals to a contemporary assessment process that provides increased certainty for our operations and our people into the future,” Oplinger said.
The strategic assessment will run alongside an ongoing accredited environmental assessment of the Myara North and Holyoake mine regions within the Huntly mine, conducted under both Western Australian and federal environmental laws.
The Minerals Council of Australia has welcomed the agreement as a pragmatic solution, and has urged state and federal governments to expedite the finalization of national environmental standards and assessment agreements to streamline the mine approval process.
