The Western Australian Government has introduced the Alcoa Transitional Approvals Framework, aiming to enforce strict controls over Alcoa‘s mining operations as it transitions to a modern environmental approval regime.
Alcoa employs 4,300 Western Australians and 1,700 contractors at its bauxite mines and refineries, spending over $1.5 billion on contracts with local suppliers in 2022.
The approvals for Alcoa’s mining, refinery, and associated activities are overseen by a 60-year-old State Agreement, as opposed to other resources projects in WA, which are entirely governed by the Environmental Protection Act 1986 and the Mining Act 1978.
“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,” Premier Roger Cook said.
Premier Cook stated that Alcoa is a significant employer and regional economy contributor, so it requires safeguarding local jobs during the transition to a modern approvals framework.
“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,” he added.
Following third-party referrals earlier this year, the Environmental Protection Authority (EPA) is deciding whether to assess Alcoa’s ongoing and prospective mining activities in the Darling Ranges. Under the EP Act, a decision to assess would require Alcoa’s mining operations to cease immediately, threatening thousands of jobs.
The State Government has granted Alcoa a conditional exemption under section 6 of the EP Act to safeguard local jobs and ensure environmental compliance.
The exemption permits Alcoa to continue mining operations if the EPA determines an assessment is necessary while imposing strict controls on its activities.
The exemption conditions restrict Alcoa’s exploration, clearing, and mining activities, necessitating regular compliance reporting to the State Government. Any violation could result in the exemption being revoked, and the State Government can withdraw or amend it at any time.
At the same time, the State Government will authorise Alcoa’s 2023-2027 Mining and Management Program (MMP) under the State Agreement.
The new MMP approval tightens the EP Act exemption conditions and adds several new ones, including:
- forming a new independent committee to provide expert advice on hydrology matters;
- requiring a gradual exit and swift stabilisation and rehabilitation of critical risk areas;
- the immediate return of more than 1200ha of forest previously permitted for removal, as well as an 800ha limit on yearly clearing approvals; and
- Requiring Alcoa to publish its MMP and associated reports, in the spirit of transparency.
Additionally, Alcoa must provide the government with a $100 million financial guarantee in case of potential damage to Perth’s drinking water dams.
“We’ve made it clear to Alcoa that protecting Perth’s drinking water remains paramount,” Environment Minister Reece Whitby 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,” Minister Whitby added.
The Alcoa Transitional Approvals Framework is a temporary approach as Alcoa transitions to modern regulation under the EP Act.
