The Australian Federal Government has granted Alcoa Corporation, a leading producer of bauxite, alumina and aluminium, the modernised framework of mining activities in the Western Australian region.

Under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC), the Australian primary national environmental legislation, Alcoa will be required to undertake a Strategic Assessment of mining areas until 2045. This will provide an overall view of possible impacts on flora and fauna over an extensive region, providing transparency of future mining operations to the stakeholders.

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Ongoing mining operations in Huntly and Willowdale in Western Australia will continue during the proposed assessment process as the Federal Government grants the company a National Interest Exemption (NIE), bypassing strict sanctions for national interest reasons, allowing activities to proceed while the review is underway.

Alcoa has the unchanged permission to clear land about 800 hectares per year, while ensuring 1000 hectares of rehabilitation per year by 2027, besides committing to ecological compensation (a strategy used to compensate for unavoidable and residual environmental damage). William F. Oplinger, the CEO of the company, stated, “We appreciate the Government’s recognition of the important contributions of our operations to the Australian economy.”

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Although Alcoa states that its operations have complied with the EPBC Act, it has agreed to provide USD 36 million under enforceable undertakings that recognise past land clearing. These funds will contribute to the restoration and long-term health of the Northern Jarrah Forest, supporting initiatives and research aimed at enhancing habitat for threatened species and managing invasive plants and animals.

The company also reaffirms its commitment to its previously announced environmental initiatives, which include strengthening protections for public drinking water sources, expanding mining exclusion zones around local host communities, and allocating more than AUD 15 million (USD 11 million) over five years (through 2029) to advance understanding of the Northern Jarrah Forest via the Forest Research Centre.

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The company is vital for currency flow in Australia as it provides more than 5000 employment opportunities wherever it operates, and according to statistics, it invested about AUD 2.7 billion ( USD 2 billion) with more than 1500 national suppliers in 2024. More than 70 per cent of Alcoa’s revenue that year rotated within the nation, uplifting Australia’s economic condition.

The Strategic Assessment does not affect the ongoing accredited environmental assessments for the proposed Myara North and Holyoake mine regions within the Huntly mine area, which are being conducted under both Western Australian State and Australian Federal environmental legislation. The Company remains committed to working closely with stakeholders to secure Ministerial approvals by the end of 2026. It anticipates that mining in these significant new regions will begin no earlier than 2029. In the interim, bauxite quality is expected to remain consistent with recent grades.

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Alcoa will recognise an additional charge of USD 19 million in the fourth quarter of 2025, reflected as an adjustment to previously reported cost of goods sold (direct costs including raw materials, direct labour and manufacturing overhead), to account for environmental reserves linked to the enforceable undertakings. The related cash payments for the full USD 36 million provision are expected to be made in 2026.

*image source: www.boilingcold.com.au