Alcoa Corp said on Wednesday its Australian subsidiary has reached an agreement with the federal government to address historical land clearing issues, committing to A$55 million (approximately $36 million) in enforceable undertakings and a program of regulatory and operational changes for its Western Australian mining footprint.
Under the terms of the arrangements, Alcoa of Australia will undertake a strategic assessment of current and potential mining areas through the year 2045, reflecting amendments to the Environment Protection and Biodiversity Conservation Act. The assessment is designed to produce a broader appraisal of impacts on key flora and fauna across the Northern Jarrah Forest.
While that strategic review is underway, mining operations at the Huntly and Willowdale bauxite mines will continue to operate under a National Interest Exemption. The exemption allows ongoing activity at those sites while the federal assessment is completed.
As part of its commitments, Alcoa has agreed to several specific operational limits and environmental measures. The company will cap land clearing at 800 hectares per year and plans to increase the area receiving new rehabilitation to 1,000 hectares annually by 2027. In addition, Alcoa has committed to delivering environmental offsets that meet federal requirements.
On the financial side, Alcoa said it will record a $19 million pre-tax charge in the fourth quarter of 2025 to adjust its environmental reserves in line with these commitments. The company expects the related cash payments to occur in 2026.
Alcoa also noted the scale of its Australian operations, saying they support about 5,500 jobs and that the company spent A$2.7 billion with local suppliers in 2024.
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