- Alcoa Transitional Approvals Framework implemented to protect local jobs and the environment
- Strict environmental controls placed over Alcoa's mining operations as it transitions to contemporary approvals
- Measures taken to safeguard local jobs while reducing risk to environment
The State Government will implement strict controls over Alcoa's mining operations as the company begins the transition to a contemporary environmental approval regime.
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 $1.5 billion on contracts with local suppliers.
Alcoa's mining, refinery and associated activities approvals are managed through a 60-year-old State Agreement unlike other resources projects in WA, which are wholly regulated through the Environmental Protection Act 1986 and the Mining Act 1978.
The Environmental Protection Authority (EPA) is currently determining whether to assess Alcoa's current and proposed mining activities in the Darling Ranges, following third party referrals earlier this year. Under the EP Act, a decision to assess would require Alcoa's mining activities to cease immediately - putting thousands of jobs at risk.
To protect local jobs while ensuring Alcoa complies with environmental standards, the State Government has issued a conditional exemption for Alcoa under section 6 of the EP Act.
The exemption allows Alcoa to continue mining operations if the EPA determines an assessment is required, while imposing strict controls on Alcoa's activities.
The conditions of the exemption limit the physical areas in which Alcoa can explore, clear and mine, and require regular compliance reporting to the State Government. Any breach of conditions would see the exemption immediately cancelled, and the State Government retains the right to withdraw or amend the exemption at any point.
At the same time, the State Government will approve Alcoa's 2023-2027 Mining and Management Program (MMP), under its State Agreement.
The new MMP approval reinforces the EP Act exemption conditions, and includes a range of additional conditions, including:
- reconstituting an independent committee to provide expert advice on hydrology matters;
- requiring a staged exit and rapid stabilisation and rehabilitation of critical risk areas;
- immediate hand back of more than 1200ha forest previously approved for clearing, and an 800ha cap on annual clearing approvals; and
- requiring Alcoa to publish its MMP and associated reports, in the interest of transparency.
In addition to these conditions, Alcoa must also commit a $100 million financial guarantee to help fund Government's response in the unlikely event of an impact to Perth's drinking water dams.
The Alcoa Transitional Approvals Framework is expected to be a short-term measure while Alcoa moves to contemporary regulation under the EP Act.
As stated by Premier Roger Cook:
"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.
"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."
As stated by Environment Minister Reece Whitby:
"Along with the Western Australian public, the State Government has high expectations Alcoa meets its environmental obligations.
"We've made it clear to Alcoa that protecting Perth's drinking water remains paramount.
"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."
