US mining giant fined $55m but allowed to continue operations
US aluminum giant Alcoa has been fined $55 million for unauthorized clearing of Western Australia’s northern jarrah forest, which is used as habitat for nationally protected species.
But under an agreement with the federal government, the miner will be allowed to continue operations.
Clearing for bauxite mining took place at the Huntly and Willowdale mines between 2019 and 2025, and Environment Protection and Biodiversity Conservation Act 1999.
The miner agreed to pay the penalty under an enforceable commitment reached with the federal government on Wednesday, even though it claimed to have met its federal environmental obligations.
“This is the largest conservation-focused commitment of its kind,” said Federal Environment Minister Murray Watt.
The company will also expand conservation programs for species including WA’s three black cockatoos and strengthen management of invasive species in the northern jarrah forest.
The fine is the latest controversy to rock the US-based bauxite miner, whose operations in Western Australia continue to come under scrutiny as mining moves north into the bush. near drinking water sources.
Alcoa will now undergo an 18-month strategic review of all its Perth operations with the aim of reaching an agreement between federal regulators and the company to determine the future of mining by 2045, Watt said.
In a move that has angered conservation groups, Alcoa will be allowed to continue clearing and mining operations during the 18-month assessment period under the national interest exemption granted by Watt.
He said this would ensure continued bauxite supplies to industry and trading partners in Australia.
“This agreement will allow the government to assess the cumulative environmental impacts of Alcoa’s local mining operations and provide strong protections for threatened species and ecological communities, while providing Alcoa with long-term operational certainty,” Watt said.
It also enables Alcoa to maintain its operations, which employ approximately 6,000 workers.
WA Forest Alliance director Jess Boyce welcomed the fine but said the government framed it in a way that gave the impression Alcoa’s mining could be done sustainably.
“This is simply not possible,” he said.
“Research shows that the northern jarrah forest cannot be rehabilitated once it has been mined for bauxite, the forest has a different structure and is having a major impact on many of the threatened species that use this habitat.”
Conservation Council WA executive director Matt Roberts said it was mind-boggling that the cleanup had taken place for six years without any action.
“I think Alcoa is a company that has lost its social licence, and that’s disappointing for the government,” he said.
“We saw people calling them out, but we didn’t see any concrete action from there.”
The miner has committed to pay an additional offset of $4.2 million for activities covered by the environmental impacts management exemption.
Alcoa said modernizing the approval framework would provide a better understanding of the potential impacts of land clearing and mining on important flora and fauna in the future.
The company will continue to limit the clearing area to 800 hectares per year and will increase new rehabilitation rates to 1000 hectares per year by 2027.
“We are committed to responsible operations and welcome this important step to transition our approvals to a streamlined evaluation process that provides greater certainty for our operations and employees going forward,” said William F Oplinger, Alcoa president and CEO.
“We appreciate the government’s recognition of the significant contribution our operations make to the Australian economy. We have been a leading Australian aluminum producer for over 60 years and are proud of the role we now play in supporting critical mineral production.”
WA Greens environment spokesperson Jess Beckerling said there was “deep discontent” about the clearing of the northern jarrah forest. A record 59,000 submissions to a recent WA Environmental Protection Authority process – and said the federal environment minister’s “capitulation” would “make people very angry”.
“While this $55 million fine is not insignificant, today’s announcement resembles a settlement that will allow Alcoa to continue cleanup and obtain longer-term approvals despite illegal clearing and its profound impacts on forests, wildlife and water,” he said.
The strategic assessment will not affect the ongoing accredited environmental assessment of the future Myara North and Holyoake mining districts of the Huntly mine under Western Australian and federal environmental laws.
Alcoa has committed $100 million to fund response to any incidents affecting Perth’s water supply.
The Minerals Council of Australia said the deal was a pragmatic decision by Alcoa and the federal government.
Chief executive Tania Constable called on state and federal governments to “quickly finalize” applicable national environmental standards and assessment agreements to reduce mine approval delays.
from AAP
Hamish Hastie is WAtoday’s state political correspondent and the winner of five WA Media Awards, including the 2023 Beck Award for best political journalism.Connect with: X or email.
