Alcoa Australia agrees to pay $55m after illegally clearing land in Perth Hills, mining allowed to continue

Alcoa Australia has been slapped with an “unprecedented” $55 million penalty to remediate land it cleared without permission in the Perth Hills, but mining is allowed to continue. The Federal Government and Alcoa struck a deal for the bauxite miner and alumina refiner to pay the sum through “enforceable undertakings” by rehabilitating bulldozed and mined areas. The “unprecedented” deal is the largest conservation‑focused commitment of its kind, according to Environment Minister Murray Watt. “The undertakings relate to clearing, between 2019 and 2025, of known habitat for nationally protected species (mainly the Black Cockatoo) in the Northern Jarrah Forest, south of Perth, to enable bauxite mining,” Mr Watt said. “The clearing occurred without seeking approvals under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999.” Alcoa is not barred from mining despite the major breach. “To regularise environmental approvals moving forward, the Australian Government has agreed to progress a strategic assessment agreement with Alcoa to guide sustainable mining at its Huntly and Willowdale mining operations, around 100 kilometres south of Perth, until 2045,” Minister Watt said. “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, while offering Alcoa long-term operational certainty. “In accordance with national environment law, I have also granted a national‑interest exemption to Alcoa allowing for limited land clearing to continue its mining operations for a period of 18 months, while the strategic assessment is completed.” Alcoa’s plans to dig up bauxite from the Myara North and Holyoake areas of the Huntly mine, which is a feedstock for its Pinjarra alumina refinery, are currently being scrutinised by WA’s Environmental Protection Authority. The EPA’s review will continue despite the Federal Government deal and is expected to be finalised by the end of this year. Alcoa’s operations came under the microscope following revelations WA’s Water Corporation had serious concerns that the company’s mining would contaminate Serpentine Dam — a vital source of Perth’s drinking water. Alcoa has provided the WA Government with a $100m guarantee in the event Perth’s water supply is contaminated. Alcoa president and chief executive William F. Oplinger said the deal with the Federal Government provides “increased certainty” for its operations. “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,” Mr Oplinger said. Alcoa will continue to limit clearing to 800 hectares per year, increase annual rates of new rehabilitation to 1,000 hectares per year by 2027 and will deliver environmental offsets according to EPBC Act requirements, according to the company. Minerals Council of Australia chief Tania Constable also welcomed the decision. “The MCA is encouraged that sensible and pragmatic collaboration between the government and a significant critical minerals producer has recognised the importance of Alcoa Australia’s operations and the company’s strategic role in the ongoing development of Australia as a minerals powerhouse,” she said. “This outcome will allow Alcoa to undergo a more rigorous method of assessment while guaranteeing operations, and thousands of jobs in the local WA community. “The recent changes to Australia’s environmental laws will have a significant impact on our sector, and many are still working to understand the impact on their operations.”