Alcoa welcomes decisions that support WA operations

Alcoa today welcomed decisions from the WA Government that will allow the company to continue bauxite mining and downstream alumina refining in the State, while also pledging to enhance the way it operates to meet evolving requirements and expectations.

The WA Government has announced that it will approve Alcoa’s latest five-year mine plan  – known as the 2023-2027 Mining and Management Program (MMP) – for its Huntly and Willowdale bauxite mines.

In addition, the WA Government has granted an exemption that will allow Alcoa to continue its mining operations if the WA Environmental Protection Authority (EPA) decides to undertake a separate environmental impact assessment on all or parts of the MMP.

The EPA’s determination is expected by year end.

Alcoa will be subject to a range of stringent conditions addressing key environmental factors that will include enhanced protections for drinking water, including increased distances from reservoirs, and biodiversity along with accelerated forest rehabilitation.

At the request of the State, the Company will also provide a $100m guarantee, demonstrating Alcoa’s confidence that its operations will not impair drinking water supplies.

Clearing for mining in the Northern Jarrah Forest will be capped at 800ha per year and the current rate of rehabilitation will double to reach 1,000ha per year by 2027.

Separately, Alcoa has committed to work with the WA Government to modernise the State Agreements and the approvals framework for its two bauxite mines and three alumina refineries in the State.

This includes transitioning all proposed new major mining regions to the more contemporary EPA assessment and approvals process.

Alcoa started this process in 2020, when it referred its next two proposed mine regions (Myara North and Holyoake) for EPA assessment.

These commitments are in addition to Alcoa’s earlier decisions to forgo mining around the forest towns of Dwellingup and Jarrahdale to enhance protections for lifestyle and recreation values.

Alcoa vice president operations for Australia Matt Reed says the decisions provided a balance between protecting local jobs and businesses while enhancing environmental protections.

“We are absolutely focused on operating in line with these new requirements and evolving community expectations,” he said.

“They mean we can continue to build on our 60 years of economic value creation, employment, and community support in WA while transitioning to more contemporary approvals.”

The new MMP will support mining at Alcoa’s current Myara and Larego regions at its Huntly and Willowdale mines.

It does not affect the EPA environmental impact assessment already underway for Myara North and Holyoake, the two proposed new mine regions.

That assessment is continuing with mining in these new regions not expected to occur any earlier than 2027.

Until then, Alcoa expects bauxite quality to be similar to recently reduced grades.

Bauxite quality at Myara North and Holyoake is expected to be consistent with historic higher grades.

Alcoa’s operations directly employ almost 4,300 Western Australians, as well as a further 1,700 contractors at its bauxite mines and alumina refineries in Perth, Peel and the South West.

In 2022 Alcoa spent over $1.5b on contracts with local suppliers.

WA Premier Roger Cook says “every project in WA should be subject to the same rigorous environmental approval system, but legacy issues mean Alcoa is yet to move to contemporary approvals.

“Alcoa is a major employer and contributes significantly to our regional economies, so it’s important we safeguard local jobs while this transition to a modern approvals framework takes place,” he added.

“This transitional framework allows us to support local jobs while strengthening protections for our environment, and lays the groundwork for a long-term approvals regime for Alcoa that meets modern standards.”

WA Envinronment Minister Reece Whitby says the State Government has high expectations of Alcoa meeting its environmental obligations.

“We’ve made it clear to Alcoa that protecting Perth’s drinking water remains paramount,” he said.

“By allowing Alcoa to continue operating while limiting where it can mine, clear and explore, we are ensuring the State’s high environmental protection standards are upheld.”