Australia’s Environment Minister has imposed a record $55 million penalty on US mining giant Alcoa for unlawfully clearing more than 2,000 hectares of protected northern jarrah forest in Western Australia to expand its bauxite mining operations. The move, described as “unprecedented,” marks one of the largest conservation-focused enforcement actions under national environmental law.
Environment Minister Murray Watt announced that the penalty relates to land clearing carried out between 2019 and 2025 without proper approval under the Environment Protection and Biodiversity Conservation Act. The affected areas include known habitats of nationally protected species in Western Australia’s northern jarrah forests, located south of Perth.
Funds Directed to Conservation and Research
The $55 million enforceable undertaking requires Alcoa to commit significant funding toward environmental restoration and biodiversity protection. Of the total amount, $40 million will be used to secure permanent ecological offsets to compensate for habitat destruction.
Additional funding includes $5 million for conservation programs through the Australian Wildlife Conservancy, $6 million for invasive species control projects managed by the state government, and $4 million allocated to the University of Western Australia for research into invasive fauna management in the northern jarrah forests.
The forests are critical habitats for endangered bird species such as the Carnaby’s black cockatoo and the Baudin’s black cockatoo, both of which are listed under federal protection laws.
Despite the penalty, Alcoa stated that it maintains it has operated in accordance with national environmental requirements but agreed to the funding measures to support habitat restoration and research initiatives.
Exemption Sparks Fresh Debate
In a controversial parallel decision, Watt granted Alcoa a time-limited 18-month exemption allowing further clearing while the government undertakes a strategic assessment of the company’s proposed mining expansion until 2045. The exemption was issued under a national interest provision and is reportedly the first time such a mechanism has been used to benefit a commercial mining operation.
The exemption enables continued bauxite extraction from the Huntly and Willowdale operations, approximately 100 kilometres south of Perth, supporting around 6,000 jobs. The minister defended the decision, citing the importance of securing mineral supply chains critical to renewable energy technologies and Australia’s net zero ambitions.
Environmental groups, however, have raised concerns that the exemption sets a dangerous precedent. Conservation advocates argue that strip-mined jarrah forests cannot be fully restored to their original ecological state and warn that economic considerations should not override biodiversity protection.
The development underscores the growing tension between Australia’s resource-driven economy and its commitments to environmental conservation, particularly as demand for minerals essential to renewable technologies continues to rise.