South32 appeals WA EPA over Worsley Alumina

South32 (ASX: S32) will appeal the WA Environmental Protection Authority’s (EPA) recommendations for the Worsley mine expansion.

The South32 project proposal includes expansion of the existing bauxite mining area, development of a bauxite transport corridor and a contingency mining area and maintenance work at the Worsley refinery.

The WA EPA recommendations, released on July 8, outlined strict conditions, including limitations to alumina and bauxite production, exclusion zones and emissions caps in line with the rehabilitation of the Northern Jarrah Forest.

“Over the past five years, Worsley Alumina has undertaken extensive environmental assessment and consultation with a range of stakeholders on its proposal for the project,” South32 said in its update.

“If imposed in their current form, several conditions recommended by the WA EPA create significant operating challenges for Worsley Alumina and impact its long-term viability.

“In Worsley Alumina’s view, several of the recommended conditions go beyond reasonable measures for managing environmental risks of the proposal based on scientific assessment and decades of operating experience.”

Citing increased uncertainty and challenging operating conditions resulting from WA EPA’s recommendations, South32 has included an impairment expense of about $831m (US$554m) in its FY24 report. This impairment reduces Worsley Alumina’s carrying value to about $3,042m (US$2,027m).

WA Environment Minister Reece Whitby will make a final decision on the WA EPA proposal following the close of the public appeal period on July 29, 2024.