Why Has Bauxite Miner Alcoa Been Handed a US$39m Fine?

Australia's Environment Minister Murray Watt has handed a US$39m penalty to the US mining giant Alcoa for unlawful land clearing for bauxite mining in Western Australia’s Northern Jarrah Forest, south of Perth.

The penalty addresses clearing that occurred between 2019 and 2025 in known habitats for nationally protected species without approval under the Environment Protection and Biodiversity Conservation (EPBC) Act.

Despite the fine, Alcoa has been granted a national interest exemption allowing it to continue clearing for 18 months while the government considers a strategic assessment for the expansion of its Huntly and Willowdale operations until 2045.

Remediation orders for historical clearing

The penalty relates to more than 2,000 hectares of cleared land. It requires Alcoa to fund several environmental and research measures, including US$28m to secure permanent ecological offsets to compensate for habitat destruction in the Northern Jarrah Forest.

These forests are critical habitats for species such as the endangered Carnaby’s and Baudin’s black cockatoos.

A further US$3.5m will be directed to the Australian Wildlife Conservancy, US$4.2m to state government invasive species control and US$2.8m to the University of Western Australia for research into invasive fauna. This represents the largest conservation‑focused commitment of its kind in Australia.

National interest exemption for mining

Murray used an existing national interest provision in nature laws to grant the 18-month exemption. It is believed to be the first time such an exemption has been used to benefit the commercial interests of a mine.

The move is designed to ensure the continued supply of bauxite and supports future production of gallium, a mineral critical for renewable systems like solar panels and wind turbines.

By granting this time-limited exemption, the government aims to secure minerals vital for the net-zero transformation and defence industries while maintaining a workforce of approximately 6,000 employees in the Western Australian region.

Balancing resource security and environment

The exemption allows Alcoa to sustain its operations while the government evaluates the long-term mining proposal through to 2045.

While the company maintains that it has operated in accordance with the EPBC Act, it has agreed to pay for the remediation measures outlined in the settlement.

“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,” said William Oplinger, President and CEO of Alcoa.

Rehabilitation targets and clearing limits

William welcomed the government’s recognition of the operations' economic contributions. Under the exemption, Alcoa’s spokesperson confirmed the company would limit land clearing to 800 hectares per year.

Alcoa has pledged to increase its annual rates of new rehabilitation to 1,000 hectares per year by 2027. This is part of a transition toward a contemporary assessment process intended to provide operational stability.

The US$39m funding supports the health of the Northern Jarrah Forest by funding programmes that improve habitats for threatened species and research into the control of invasive flora and fauna in the area.

Strategic assessment for future expansion

The strategic assessment process will now consider the proposed extension of Alcoa's mining operations for the next two decades.

This process is separate from a new power included in last year’s overhaul of the EPBC Act. The current settlement and exemption aim to provide a bridge for the company to continue its bauxite extraction while addressing historical compliance issues through a large financial commitment.

Murray described the remediation order as “unprecedented”, emphasising that the funds will be used to protect biodiversity in regions affected by mining activities while Alcoa works toward more sustainable land management and rehabilitation goals.