Alcoa wins 18-month clearing approval following illegal bauxite mining

A US aluminium company, penalised $55 million for illegally destroying native forest in Western Australia to mine bauxite, has been given approval to carry out further “limited land clearing” for another 18 months.

Alcoa failed to seek the necessary government approvals before it stripped parts of the Northern Jarrah Forest, south of Perth, between 2019 and 2025.

“Let’s be clear – this is not a $55 million fine in the traditional sense,” pointed out Louise Morris, an advocate at the Australia Institute.

“Alcoa is not paying a penalty to the public. The money is being diverted into offset projects that cannot restore what was illegally destroyed.”

The forest is a distinct biodiversity hotspot and provides vital habitat for the critically endangered Baudin’s black cockatoo and the endangered Carnaby’s black cockatoo.

Environment Minister Murray Watt said the “unprecedented” remediation deal is “the largest conservation‑focused commitment of its kind” however conservationists assert the damage is already beyond repair and repayment.

“We have a jarrah forest that doesn’t exist anywhere else in the world, and once it’s strip-mined, it cannot be bought back to its original condition, no matter how much money you throw at it – once it’s gone, it’s gone forever,” said The Wilderness Society WA Campaigns Manager Alyx Douglas.

The mining company has agreed to implement projects that “offset” the damage – such as expanding conservation programs and strengthening invasive‑species management.

“Offsets are being used here as a political solution, not an ecological one,” said Ms Morris.

“Jarrah forests are not interchangeable blocks of land. They are ancient ecosystems with unique biodiversity

“You cannot recreate centuries-old jarrah forest, complex soils, and black cockatoo habitat by moving money around on a balance sheet.”

The End Forest Mining (EFM) alliance says the penalty is a “slap on the wrist” and is “alarmed” by Senator Watt’s decision to allow Alcoa to continue clearing parts of the forest while Canberra considers a proposal to extend its mining operations to 2045.

Greens WA environment spokeswoman Hon Jess Beckerling MLC described it as a “free pass”.

“The notion that gallium production for the American military should afford Alcoa a national interest exemption from Federal laws is farcical,” she said.

“The $55m fine needs to be looked at in the context of the enormous profits Alcoa has been making by illegally clearing WA’s forests for 15 years.

“It represents just $3.6m per year of illegal clearing while the American company has been banking billions in profits.”

The mining company has made headlines several times in the past few months alone.

In January, the WA Department of Water and Environmental Regulation (DWER) announced it was investigating the company for allegedly mining too close to a 400-year-old jarrah tree.

“Now the Federal Government has uncovered unauthorised clearing for at least six years, and yet Alcoa has been given another exemption,” said WA Forest Alliance Director Jess Boyce.

An Alcoa spokesperson told the ABC in January that the company “takes the conditions governing our operations very seriously” and denied breaching the applicable 10m buffer zone.

The company also faced public backlash in September 2025 when Australia’s advertising watchdog found it had made inaccurate or misleading claims in a newspaper ad that claimed it had rehabilitated 75% of the jarrah forest it had cleared.

“Time and again we’ve seen Alcoa cannot be trusted when it comes to its 60-year history of mining in the Northern Jarrah Forest,” said Conservation Council of WA Executive Director Matt Roberts.

“In reality, Alcoa has not rehabilitated even one hectare of land successfully according to state government requirements, or community standards,” said Ms Douglas.

“Yet time and time again, Alcoa is handed these ‘get out of jail free cards’ by the state – and now federal – government, no matter how much irrecoverable damage is being done.”

The company was granted a separate Exemption Order by the WA Government in December 2023 to continue mining and protect around 6,000 jobs while the Environmental Protection Authority (EPA) implemented a new approvals system.

“Enough is enough, both exemption orders must be revoked, and Alcoa’s mining operations halted until governments can thoroughly assess the serious and long-term impact of its mining,” said Ms Boyce.

Minister Watt said the exemption “ensures the continued supply of bauxite and supports future gallium production, critical for renewable systems like solar panels and wind turbines”.

He also argued Australia needs a “stable supply” of minerals that are vital for the country’s “net zero transformation”.

Conservationists and researchers contend the “transition” excuse is used by the mining industry and governments to prolong fossil fuel extraction and expedite projects.

“The federal government should be working with the state government on an exit policy for this company and other bauxite miners from our South West forests, with a plan to transition workers into other industries,” Mr Roberts said.

Ms Beckerling said the basis for the exemption is “extremely flimsy”.

“As far as I’m aware ongoing mining activities like these have never won an exemption from Federal laws before.

“There is nothing in the national interest about threatening Perth’s drinking water, clearing thousands of hectares of threatened species habitat and adding a further 18 coal fired power stations of greenhouse gas emissions to the atmosphere.”